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HomeMy WebLinkAboutC32130 - Update Citys 2014 - 2021 Housing ElementCITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: AWARD OF CONTRACT NO. TO TERRA NOVA PLANNING & RESEARCH INC. IN THE AMOUNT OF $47,110 PLUS $2,500 FOR REIMBURSABLE EXPENSES FOR THE UPDATE OF CITY'S 2014-2021 HOUSING ELEMENT AND THE 6" REGIONAL HOUSING NEEDS ASSESSMENT CYCLE (RHNA) AS REQUIRED BY THE STATE OF CALIFORNIA. SUBMITTED BY: Kevin Swartz, Assistant Planner CONTRACTOR: Terra Nova Planning & Research Inc 42635 Melanie Place, Suite 101 Palm Desert, CA 92260 DATE: September 13, 2012 CONTENTS: Contract No. C32130 Terra Nova & Planning Research Inc. Proposal Recommendation By Minute Motion, 1) Award Contract No. C32130 subject to such minor technical changes as the City Attorney may deem necessary, to Terra Nova & Planning Research Inc. in the amount of $47,110 plus $2,500 for reimbursable expenses for the update of the City's 2014-2021 Housing Element and the 6th RHNA cycle as required by the State of California; and 2) Authorize the Mayor to execute same. The funds were approved in the fiscal year 2012/2013 budget under Professional Services in Account Number 400-4470-412-3090. Background On August 23, 2012, the City Council continued this item, and directed staff to investigate the evaluation of the firms based on a letter submitted by one of the firms. Staff Report Contract to Update Housing Element Page 2 of 4 September 13, 2012 The letter presented to the City Council stated the City should be selecting a firm with experience preparing housing elements, and not because of past working relationships with the City. Also, the firm highlighted the fact that their cost proposal was $19,960 lower than the firm staff selected and $12,109 less than the third firm. In order to understand why there was a difference of $19,960, staff analyzed the three firms and compared their hours and hourly rates and their understanding of the scope of work. Staff also further investigated references. Below is a table outlining the three firms hours associated with the scope of work, number of staff members working on the update, and hourly cost range. Firm Names Proposed Hours Staff Members Cost Range Per Working on Staff Member Housing Element Terra Nova 362 5 $155.00 to $40.00 Planning & Research Jean Laurin- 334 4 $90.00 to $50.00 Lawrence and Castaneda & Associates Lisa Wise 356 3 $150.00 to $90.00 Consulting Terra Nova Planning & Research and Lisa Wise Consulting are closer in hours and hourly staff rate. Both firms also have a greater cost overhead than the joint firm of Jean -Laurin Lawrence and Castaneda & Associates, likely due to the operation of fully - staffed professional offices, rather than operating out of a residence as does Jean Laurin -Lawrence and Castaneda & Associates. Both firms also identified knowledge of the new legislation (SB 244), within their proposals. Staff believes that this is important, since SB 244 requires the update to identify all infrastructure deficiencies in isolated sphere of influence areas, and devise financing strategies that would make the needed upgrades financially feasible. In Palm Desert's case, this means that the City would have to do this analysis for the Bermuda Dunes area. GAPlanning\Kevin Swartz\Word\Housing Element\CC RFP Reward September 13th.doc Staff Report Contract to Update Housing Element Page 3 of 4 September 13, 2012 Terra Nova Planning & Research is proposing in their scope of work to update SB 244 in the City's Land Use Element. Although this was not part of the Request for Proposal, staff believes this is needed, since the last time the Land Use Element was updated was in 2004. Terra Nova is allocating an extra 72 hours for the update. If Terra Nova did not update the Land Use Element, their scope of work would cost approximately $10,000 more than Jean Laurin -Lawrence and Castaneda & Associates. On August 31, 2012, Jean Laurin -Lawrence and Castaneda & Associates submitted a letter stating that after their research and contacting Housing Community Development (HCD), they believe SB 244 needs to be updated in the Land Use Element, but does not have to be updated with the Housing Element update. They believe that the update should be independent of the Housing Element. The update of the Land Use Element needs to be done, regardless of whether or not the State will require it as a condition to approving the Housing Element. Regardless of the consultant selected, we believe that this work should be done simultaneous with the Housing Element update. Staff also contacted references for Terra Nova and Jean Laurin -Lawrence and Castaneda & Associates. Terra Nova reported having prepared over 25 housing elements, and out of the 25, 15 were within the Coachella Valley. Staff contacted ten references and received six responses confirming that Terra Nova did complete their housing element update. Jean Laurin -Lawrence and Castaneda reported completing nine housing elements, and out of the nine, three were within the Coachella Valley. Staff contacted all nine references, and received six responses, all stating that they worked directly with Castaneda & Associates, and not with the joint firm including Jean Laurin - Lawrence. Staff was asked by the City Council to determine why one firm's proposal is $19,960 less than the top -ranked firm, and $12,109 less than the third firm. Based on hours and staff hourly rates and cost overhead, Terra Nova and Lisa Wise Consulting are consistent with one another. Terra Nova is proposing to update the Land Use Element, which staff believes should be done. Per Palm Desert Municipal Code Chapter 3.30 Public Works Contracts and Bidding Requirements, Section 3.20.250 Professional services firms states, "The selection of design professionals shall, in addition to consideration of costs, meet the standards set forth in Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. Section 4525-4529.5 of the Government Code, states that cost cannot be the sole factor in awarding a contract. G:\Planning\Kevin Swartz\Word\Housing Element= RFP Reward September 13th.doc Staff Report Contract to Update Housing Element Page 4 of 4 September 13, 2012 Also, as a joint firm, Jean Laurin -Lawrence and Castaneda & Associates did not have a reference that acknowledged working with both firms together. In addition, Jean Laurin - Lawrence and Castaneda & Associates would be the last firm selected based on overall experience and qualifications, if cost and local office points were not part of the evaluation. If we removed those two criteria the following points would apply: 1. 12.85 - Terra Nova Planning & Research 2. 12.25 - Lisa Wise Consulting 3. 11.15 - Jean Laurin -Lawrence and Castaneda & Associates Staff still believes that Terra Nova is the most qualified and best suited to perform the professional services to update the City's 2014-2021 Housing Element and 6th RHNA cycle. Submitted By: Kevin Swartz, Department Head: Lauri Aylaian Paul S. nt Planner CITY COUNCILACTION AYES: 42 NOES:.1S ABSENT: DATE Rh ;44 rector munity DevetOpNAIVD BY: S Original on File with City cie'rKs Office * By Minute Motion, reject all proposals and authorize staff to re -advertise for same. i, Finance Director 4-0 (Finerty ABSENT) M. Wohlmuth, City Manager GAPlanning\Kevin Swartz\Word\Housing Element= RFP Reward September 13th.doc � rtL Jean Laurin -Lawrence Castaneda & Associates CRY of Palm Dowd 31 August 2012 community DOV610 OM 12012 ^ Ms. Lauri Aylaian, AUG 3ON Director, Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 SUBJECT: City of Palm Desert Housing Element Update Dear Lauri: Ralph and I appreciate the opportunity to respond to the questions posed by the City Council and your additional request for information regarding our response to the City's RFP for the update of the City's housing element. The initial questions pertained to the significant difference in cost. We bid $29,650, all inclusive, and Terra Nova's proposed contract is for $47,110 plus $2,500 for "reimbursable expenses." 1. The primary reason is that our hourly rates are significantly lower that Terra Nova's: Classification Lawrence Castaneda Terra Nova Hourly Rate Hourly Rate Principal $90 $155 Senior Planner N/A $135 Associate Planner $75 $115 Assistant Planner N/A $95 Research Associate $60 N/A Research Assistant $50 N/A Design Principal N/A $135 Media Specialist N/A $85 Exhibit Preparation Included as Task; not hourly $55 Administrative Asst. Not separate staff $40 In addition, Lawrence Castaneda does not have high overhead nor personnel benefit packages. We do carry all insurances. 40101 Monterey Ave., B1-221 Rancho Mirage, CA 92270 760.831.4676 3638 University Avenue, Suite 203 Riverside, CA 92501 951.235.2755 r, Lauri Aylaian - Director Community Development RE: City of Palm Desert Housing Element Update 31 August 2012 Page Two 2. The second reason, relates to the first: Lawrence Castaneda bid indicates a total of 334 hours of work; the Terra Nova bid shows 362. We did not bid on a Land Use Element update (see further explanation below). If we reduce the Terra Nova bid by the 72 hours referenced in their proposal for the Land Use Element, Lawrence Castaneda proposal is 334 hours on the housing element update versus 290 from Terra Nova. The City of Palm Desert has a certified element that is just over a year old. During our coordination with the staff at the State Department of Housing and Community Development (HCD), we determined the items that are most critical to this 6"' round of updates. Subsequent to our discussions with HCD staff, they issued Housing Element Update Guidance which essentially confirmed our previous discussions with them. As noted above, Lawrence Castaneda did not bid on the Land Use Element update because it was not part of the City's Request For Proposals. The RFP stated "The selected consultant shall be ... knowledgeable in California legislation that amends, increases, or impacts the housing element including ... S8244. " SB 244 merely states that except for the fact that the Land Use Element has to be updated before the next adoption of a housing element, it has no impact on housing element content. In preparing the proposal, Ralph reviewed a League summary of the bill. He concluded that it probably did not impact the housing element, per se. And that is the reason that we did not discuss SB 244 in detail in the proposal. Earlier this week he conducted more research on SB 244. He came to same conclusion. He e-mailed Paul McDougall of HCD his reasons for interpreting that SB 244 does not amend, increase or impact the scope or content of a housing element. Paul immediately responded that he agreed with Ralph's conclusion that SB 244 does not amend, increase or impact the scope or content of a housing element. It is our opinion that including SB 244 requirements in the context of a housing element update probably is not a wise course of action. That would enable HCD to make written findings and comments on how the City addressed the SB 244 requirements. It would be better for the City to address them independent of the housing element update. SB 244 defines an unincorporated island community as an unincorporated area surrounded or substantially surrounded by one or more cities and by one or more cities and a county boundary. FIr Lauri Aylaian - Director Community Development RE: City of Palm Desert Housing Element Update 31 August 2012 Page Three Sun City is in an unincorporated area that is not surrounded or substantially surrounded by one or more cities. A portion is adjacent to the City of Indio on the east. The City of Palm Desert and Interstate 10 is on the south and the Coachella Valley Fringe -toed Lizard Preserve is on the west. Bermuda Dunes is bordered by Indio, La Quinta, and Palm Desert and may meet meaning of "substantially surrounded" but does not have the kind of infrastructure deficiencies enumerated in the Bill. The area contains multifamily and single family homes, a large gated community, shopping areas, schools, retail/wholesale nurseries, and a municipal airport. Water, waste water, and structural fire protection appear to be commensurate with adjacent incorporated city areas. Stormwater drainage along the few inadequate road surfaces could be a concern but in the four years we have been involved in a business venture along Darby Road there has not been a problem. Much of the land in the unincorporated area to the south of the City is in the Coachella Valley Multiple Species Habitat Conservation Plan and is designated open space, low density residential, and desert estates in the City's General Plan. This area does not meet the definition as presented in the Senate Bill. For your use and information, we have provided excerpts from SB 244, below. Lauri, I hope this information answers your questions. I am available to meet with you on the telephone or in person. Cordially J an Laurin -Lawrence Excerpts from SB 244 "Unincorporated island community" means any inhabited and unincorporated territory that is urrounded or substantially surrounded by one or more cities or by one or more cities and a county boundary or the Pacific Ocean. (5) "Unincorporated legacy community" means a geographically isolated community that is inhabited and has existed for at least 50 years. (b) On or before the due date for the next adoption of its housing element pursuant to Section 65588, each city or county shall review and update the land use element of its general plan to include all of the following: (1) In the case of a city, an identification of each unincorporated island or fringe community within the city's sphere of influence. In the case of a county, an identification of each legacy community within the boundaries of the county, but not including any area within the sphere of influence of any city. This identification shall include a description of the community and a map designating its location. (2) For each identified community, an analysis of water, wastewater, stormwater drainage, and structural fire protection needs or deficiencies. (3) An analysis, based on then existing available data, of benefit assessment districts or other financing alternatives that could make the extension of services to identified communities financially feasible. RECEIVED CITY CLERK'S OFFICE PALM DESERT, CA Jean Laurin -Lawrence 2012 AUG 27 PM 3: 59 Castaneda & Associates 40101 Monterey Ave., 131-221 Rancho Mirage, CA 92270 760.831.4676 3638 University Avenue, Suite 203 Riverside, CA 92501 951.235.2755 27 August 2012 To: The City Council, City of Palm Desert Subject: Transmittal of responses to questions asked by the Council At your meeting on August 23, 2012 you asked several questions regarding the contract to prepare the update to the City's housing element of the General Plan. Those detailed responses are attached. In summary: 1. Our contract cost of $29,650 is firm and all inclusive. There are no additional charges for other "expenses." 2. Our proposal corresponds to the costs we have charged for other similar housing element updates. Distribution • Mayor Spiegel • Mayor Pro-Tem Kroonen • Councilwoman Benson • Councilwoman Finerty • Councilwoman Harnik • City Manager Wohlmuth • City Clerk Klassen • City Planner Swartz Jean Laurin -Lawrence Castaneda & Associates 27 August 2012 The Honorable City Council City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 SUBJECT: City of Palm Desert Housing Element Update At the City's regularly scheduled meeting on August 23, 2012, the City Council addressed the questions I asked, in my letter of that date, about the Staff Report submitted to the City Council for award of a contract to Terra Nova for professional services for the update of the City's Housing Element. I attended that meeting and the following are my responses to questions asked by Councilmembers. 1. Councilwoman Benson asked why there was such a significant differ- ence in the contract amount in the Terra Nova response of $47,110 and the one from Lawrence/ Castaneda at $29,650. We have three Response Items to this question: First Response Item: The cost being charged by our firm is the in the mid -range of all of the housing element updates we have prepared over the last six years; the least expensive being $23,000 (Westmorland) and the most expensive at $35,000 (Signal Hill). The certified Housing Elements prepared for Beaumont and Desert Hot Springs cost about $32,000 each. Consequently, we know that we can complete housing elements for the cost we included in our proposal. Second Response Item: Our quoted cost is all-inclusive. Please note that the proposed Terra Nova contract, as presented on the City web site, is for $47,110 plus $2,500 for "reimbursable expenses." The total Terra Nova contract would be $49,610. See Attachment 1. 40101 Monterey Ave., B1-221 Rancho Mirage, CA 92270 760.831.4676 3638 University Avenue, Suite 203 Riverside, CA 92501 951.235.2755 City of Palm Desert Housing Element Update - Council Questions 27 August 2012 Page Two We price our work based on the level of effort that will be needed to prepare a report that will exceed the stated requirements. In the case of Palm Desert, the City has a certified element that is just over a year old. During our coordination with the staff at the State Department of Housing and Community Development (HCD), we determined the items that are most critical to this 6th round of updates. Subsequent to our discussions with HCD staff, they issued Housing Element Update Guidance which essentially confirmed our previous discussions with them. The Draft Guidance issued by HCD on August 15, 2012 provides a Completeness Checklist to ensure that all requirements are incorporated in a Draft Housing Element to be submitted to the State for the 6th cycle. The Draft Guidance also contains a Streamlined Update template for cities that have a certified housing element. As HCD stated: "For many local governments, much of the information in its compliant housing element for the previous planning period is still current and/or particular conditions and circumstances have not significantly changed since the last update. The Streamlined Update template shows where changes were made in the previously adopted Housing Element. " Third Response Item: We have subsequently been asked by City staff to provide a more detailed breakdown of the hours and cost per hour so they can be compared to the same information being provided by Terra Nova. Page 20 (Attachment 2) of our proposal contains our cost proposal, hourly rate, total project hours and project hours per staff person. Although man -or person -hours are not broken down by Phase/Work Task, it should be sufficient to respond to the staff's question. We clearly responded to the item on Page 2, No.5, of the RFP that states: "A current rate schedule and an estimate of the man-hours necessary to complete the update of the Housing Element. (This is for information only, and will not serve as criteria for selection.)" 2. Councilwoman Finerty asked Staff to explain the "ratings" of the responses. Kevin Swartz indicated that there were only .7 (point seven) points between Terra Nova and Lawrence/Castaneda. City of Palm Desert Housing Element Update - Council Questions 27 August 2012 Page Three 3. Councilwoman Harnick said that we appeared to be well -qualified considering the list of completed housing elements. 4. Mayor Spiegel, wanted to know why they received our letter so late and when did it arrive. Kevin Swartz responded that he got it at 4:00 PM. Councilwoman Finerty said she received it at 1:30 when she arrived. Mayor Spiegel still wanted to know why it took so long for us to respond. Response: The Planning Department has a general policy of not announcing selection of consultants until Council has the opportunity to comment; however, at my request Kevin Swartz was gracious enough to send me a copy of the Staff Report and recommendation at 4:35PM on Monday, August 20th. I had all -day commitments in Imperial County on Tuesday the 21St and Wednesday the 22"d and responded as soon as I returned to my office. Sincerely, Pen aurin-Lawrence Cc: City staff Attachment 1: Excerpts from Page 3 of the Proposed City of Palm Desert Contract for Housing Element Update Attachment 2: Page 20 - Lawrence/Castaneda Response Attachment 1 - Excerpts from Page 3 of the Proposed City of Palm Desert Contract for Housing Element Update. 4.1 Not -to -Exceed Fee: City shall pay to Consultant a total amount not to exceed $47,110.00 for the basic services described in Exhibit A. Payment shall be made on a monthly basis, based upon the hourly rates defined in Exhibit C, multiplied by the number of hours worked by each classification of personnel assigned to the project during the previous calendar month. The not -to -exceed fee shall not be exceeded without written agreement between the parties. 5.2 Additional Services: Additional services beyond those described in Exhibit A shall be reimbursed on a time -spent basis at the hourly rates described in Exhibit C. City shall not be obligated to compensate Consultant for additional services performed without advance authorization from the City Representative. 5.3 Reimbursable Expenses: City shall pay to Consultant actual costs, subject to the limitation given below, for expenses incurred on behalf of the project for long distance telephone calls, reproduction, express delivery and courier services, postage, out-of-town travel if pre -approved in writing by the City Representative, and other expenses directly attributable to the project and expressly approved by the City Representative. Reimbursable expenses, including Consultant's mark-up, shall not exceed 2 500.00 for this project. 5.4 Extraordinary Expenses/Costs. No claims for additional services, expenses or costs incurred by Consultant will be allowed unless such additional services, expenses or costs are authorized by City in writing prior to the performance or incurrence of such services, expenses or costs. Any additional services, expenses or costs authorized by City shall be compensated at rates mutually agreed upon by the Parties in writing. Attachment 2 - Copy of Page 20 from the - Lawrence/ Castaneda Response to RFP 7. COST PROPOSAL Table 4 presents our estimated fee by Phase. Below Table 4 we have itemized the hourly rates and total project hours by project team member. Table 4 City of Palm Desert Housing Element Update - Estimated Fee Phase 1: Coordination with HCD $1,080.00 Phase 2: Impact of Recent Legislation $1,080.00 Phase 3: Update the Sites Inventory and Analysis $2,640.00 Phase 4: Housing Program Outline $1,920.00 Phase 5: Preparation of Technical Studies $8,920.00 Phase 6: Public Participation and Consultation $3,600.00 Phase 7: Screencheck and Draft Housing Element $2,880.00 Phase 8: HCD Review, Revised Draft, HCD Review of Revision $1,800.00 Phase 9: Public Hearing Draft and Public Hearings $1,560.00 Phase 10: CEQA Documentation $1,920 00 Other Costs: Reproduction $1,000 00 Other Costs: Mapping $750.00 Other Costs: Mileage, Postage, FedEx $500.00 Estimated Fee $29,650.00 Hourly Rates: Principals $90/hr Associate $75/hr Research Associate $60/hr Research Assistant $50/hr Total Project Hours: Principals 248 hours Associate 8 hours Research Associate 58 hours Research Assistant 20 hours 334 hours Contract No. C32130 AGREEMENT FOR PROFESSIONAL SERVICES This AGREEMENT is made and entered into this day of 20 ("Effective Date") by and between the CITY OF PALM DESERT ("City") and , a California Corporation ("Consultant") (sometimes referred to individually or collectively as "Party" or "Parties"). WITNESSETH WHEREAS, City desires to retain Consultant as an independent contractor to perform certain technical and professional consulting services in connection with the update of City's 2014-2021 Housing Element and the 6t" Regional Housing Needs Assessment Cycle (RHNA) as required by the State of California project, subject to the terms and conditions specified below, in the documents attached and incorporated herein, and applicable federal, state and local law. NOW, THEREFORE, in consideration of performance by the Parties of the mutual promises, covenants, and conditions herein contained, the Parties hereto agree as follows: 1. Consultant's Services. 1.1 Nature of Services. Consultant shall provide professional and technical services on a non-exclusive basis, as more particularly described in Section 3, below, and in Exhibit A, Scope of Services. 1.2 Personnel. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its direct supervision, and all personnel engaged in the work shall be qualified, and shall be authorized or permitted under state and local law to perform such services. 1.3 Standard of Performance. Consultant shall perform all services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.4 Consultant Representative. For the purposes of this Agreement, the registered architect, engineer, or landscape architect who will serve as the Consultant Representative shall be Terra Nova Planning & Research. 1.5 Time of Commencement. The execution of this Agreement by the Parties does not constitute an authorization to proceed. A separate written notice to proceed shall be issued by the City Representative, and Consultant shall not commence work until receipt of such written Notice(s) to Proceed, as further set forth in Sections 2 and 3, below. Professional Services Agreement — City — VA Contract No. C32130 1.6 Time of Performance/Time is of the Essence. Consultant shall commence the services contemplated under this Agreement immediately upon receipt of a written Notice to Proceed from the City, and shall prosecute to completion each task listed in Section 3 in a timely and diligent manner within 396 calendar days of receipt of a Notice to Proceed, or in accordance with the schedule appended to this agreement as Exhibit B. Services by City: 2.1 City Representative. For the purposes of this Agreement, the City Representative shall be Kevin Swartz, Assistant Planner or such other person designated by the City's Executive Director. 2.2 Provision of Data. All information, data, reports and records and maps as are existing and available from the City and necessary for the carryings out of the work outlined in Exhibit "A" hereof shall be furnished to Consultant without charge by City, and City shall cooperate in every way reasonable in the carrying out of the work without delay. 3. Consultant's Scope of Work. Upon delivery by City to Consultant of a written Notice to Proceed, Consultant shall immediately commence work pursuant to this Agreement. Consultant's scope of work shall consist of the services in Exhibit A appended to this Agreement. 3.1 Reporting & Record Keeping. To assist City in the performance of its planning, reporting, and financial administration obligations, Consultant shall, throughout the term of this Agreement, keep City reasonably informed of progress on work required under this Agreement, and of any problems or delays, anticipated or otherwise, associated with each aspect of the work. Consultant shall promptly respond to any request by City for information, progress reports, or documentation. Consultant shall maintain accurate records of all work performed for each Assignment under this Agreement, including but not limited to originals or copies, as applicable, of all deliverable documents described in Exhibit A. Upon the completion of work, and if requested by the City, Consultant shall deliver to City the originals of all renderings, models, or documentation produced, and may retain copies of such documentation, at Consultant's election. 3.2 Compliance with Laws. Consultant shall at all times possess any and all licenses and permits necessary to provide the services herein, and shall comply with applicable federal, state and local laws, ordinances, codes and regulations in the performance of this Agreement, and with all applicable with any applicable City of Palm Desert policies and guidelines. 3.3 Confidentiality. Except as otherwise permitted or required by law, Consultant shall maintain as confidential and shall not disclose any and/or all information received in the course of performing pursuant to this Agreement. Consultant shall promptly inform the City in the event Consultant receives a subpoena or court order requiring disclosure of confidential information. 2 Contract No. C32130 4. Compensation. City shall pay Consultant for the Services provided under this Agreement on the following basis. 4.1 Not -to -Exceed Fee: City shall pay to Consultant a total amount not to exceed $47,110.00 for the basic services described in Exhibit A. Payment shall be made on a monthly basis, based upon the hourly rates defined in Exhibit C, multiplied by the number of hours worked by each classification of personnel assigned to the project during the previous calendar month. The not -to -exceed fee shall not be exceeded without written agreement between the parties. 5.2 Additional Services: Additional services beyond those described in Exhibit A shall be reimbursed on a time -spent basis at the hourly rates described in Exhibit C. City shall not be obligated to compensate Consultant for additional services performed without advance authorization from the City Representative. 5.3 Reimbursable Expenses: City shall pay to Consultant actual costs, subject to the limitation given below, for expenses incurred on behalf of the project for long distance telephone calls, reproduction, express delivery and courier services, postage, out-of-town travel if pre -approved in writing by the City Representative, and other expenses directly attributable to the project and expressly approved by the City Representative. Reimbursable expenses, including Consultant's mark-up, shall not exceed $2,500.00 for this project. 5.4 Extraordinary Expenses/Costs. No claims for additional services, expenses or costs incurred by Consultant will be allowed unless such additional services, expenses or costs are authorized by City in writing prior to the performance or incurrence of such services, expenses or costs. Any additional services, expenses or costs authorized by City shall be compensated at rates mutually agreed upon by the Parties in writing. 6. Method of Payment. 6.1 Invoices. Consultant shall submit to City invoices each month for all services, if any, completed, and all expenses or costs incurred pursuant to this Agreement during the preceding month. The invoices shall describe the services rendered during the period and shall show the number of hours worked, the hourly rates charged, and any milestone achievements. Copies of receipts for expenses or costs shall be submitted with each invoice. City shall review such invoices and notify Consultant in writing within fifteen (15) calendar days of any disputed amounts. 6.2 Payment. City shall pay all undisputed portions of the invoice within thirty (30) calendar days after receipt of the invoice up to the maximum amounts set forth in Section 5. 6.3 Audit of Records. At any time during regular working hours, all records, invoices, time cards, cost control sheets and other records maintained by Consultant shall be available for review and audit by the City. 3 Contract No. C32130 7. Ownership of Work Product. 7.1 Property of City. All documents including but not limited to plans, bids, proposals, correspondence, permits, certificates, contracts, change orders, invoices, receipts, reports, analyses or other written material developed or obtained by Consultant in the performance of this Agreement, including any and all intellectual property rights arising there from ("Work Product"), shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Promptly upon the completion of each Assignment, or at any other time upon reasonable notice to Consultant by City, Consultant shall deliver all Work Product to City. 8. Conflict of Interest/Prohibited Conduct and Interests 8.1 Conflict of Interest. Consultant and its officers, employees, associates and sub consultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this Agreement, including, but not limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant shall retain the right to perform similar services for other clients, but Consultant and its officers, employees, associates and sub consultants shall not, without the prior written approval of the City Manager, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or sub consultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute. 8.2 No Solicitation. Consultant, on behalf of itself and its officers, employees, agents and representatives, warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to terminate this Agreement without notice or liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 8.3 No Financial Interest - City. No officer, member or employee of City during his or her tenure or one year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof. The Parties hereto covenant and agree that to their knowledge no member of the City Council, or officer or employee of City, has any interest, whether contractual, non -contractual, financial or otherwise, in this Agreement, or the subject matter thereof, nor any business or financial relationship with Consultant, and that if any such interest comes to the knowledge of either Party at any time a full and complete disclosure of all such information will be made in writing to the other Party or Parties, even if such interest would not be considered a conflict of interest under applicable laws. 0 Contract No. C32130 8.4 No Financial Interest — Consultant. Consultant hereby covenants, on behalf of itself, and its officers, employees, agents and representatives, that at the time of executing this Agreement it has no interest, and that it shall not acquire any interest in the future, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed pursuant to this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by Consultant. At no time during the term of this Agreement, and for one (1) year thereafter, shall Consultant or anyone acting on Consultant's behalf, accept anything of value from any contractor or subcontractor performing services in connection with the HIP. 9. Indemnification. Consultant shall indemnify, protect, defend and hold harmless the Agency and the City of Palm Desert, their officials, employees, agents and representatives from and against any and all losses, liabilities, damages, costs, and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of the Consultant, its officers, agents, employees or sub Consultants (or any entity or individual that the Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. 10. Insurance. Consultant will maintain insurance in conformance with the requirements set forth below. If Consultant's existing coverage does not meet the requirements set forth here, it will be amended to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. 10.1 Workers' compensation and employer's liability. Consultant shall provide Workers Compensation and Employer's Liability Insurance on an approved policy form providing benefits as required by law with employer's liability limits no less that $1,000,000 per accident or disease. 10.2 Professional Liability or Errors and Omissions. Professional Liability or Errors and Omissions insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must contain a provision establishing the insurer's duty to defend. The policy retroactive date must be on or before the effective date of this agreement. 10.3 Automobile liability. Consultant shall provide auto liability coverage with a limit of no less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be met through a non -owned auto endorsement to the CGL policy. 5 Contract No. C32130 10.4 Waiver. If the Consultant does not carry Worker's compensation coverage, or if the Consultant will not operate any vehicles at any time within the scope of the services in the agreement, provisions for these coverage's may be waived upon review and approval of the City's Risk Manager. 11. Status as Independent Contractor. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its officials, employees or agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. 12. Non -Assignability; Subcontracting. Consultant shall not assign or subcontract all or any portion of this Agreement without the City's prior, written consent. Any attempted or purported assignment or sub -contracting by Consultant shall be null, void and of no effect. 13. Non -Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental disability, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental disability, medical condition, or sexual orientation. This clause shall be included in any contract prepared or approved by Consultant in connection with performance of its services under this Agreement. 14. Cooperation. In the event any claim or action is brought against Redevelopment Agency or City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation, which Agency or City might require. 15. Termination. The right is reserved by the City to terminate the Agreement at any time upon seven (7) days written notice, in the event the project is to be abandoned or indefinitely postponed, or in the event the Consultant's services, in the sole judgment of City, are unsatisfactory or because of the Consultant's failure to prosecute the work with diligence or within the time limits specified or because of his disability or death. In any such case, the Consultant shall be paid the reasonable value of the services rendered, based upon Consultant's standard hourly rates, up to the time of the termination. The Consultant shall keep adequate records to substantiate costs and provide copies of original time -cards in the event of termination or suspension. 16. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be given by first class U.S. mail or by personal service. Notices shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Consultant's and City's regular business hours or by facsimile before or during Consultant's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth N. Contract No. C32130 in the Agreement, or to such other addresses a designate in writing pursuant to the provisions delivered to the Parties at the following addresses; s the Parties may, from time to time, of this section. All notices shall be City: John M. Wohlmuth, City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Tel: (760) 346-0611 Fax: (760) 340-0574 With a copy to: Kevin Swartz, Assistant Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Tel: (760) 346-0611 Fax: (760) 776-6417 Consultant: Terra Nova Planning & Research Inc Nicole Criste 42-635 Melanie Place, Suite 101 Palm Desert, CA 92260 Tel: (760) 341-4800 Fax: (760) 341-4455 7 Contract No. C32130 17. Non -Waiver of Terms, Rights and Remedies. Waiver by either Party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 18. Attorney's Fees. In the event that either Party to this Agreement shall commence any legal action or proceeding for damages for breach, or to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and experts' costs. 19. Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. 20. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. No promise or representation, whether oral or written, express or implied, that is not set forth herein, shall be binding or have any force or effect. This Agreement may not be amended, nor any provision waived, except in a writing signed by the Parties which expressly refers to this Agreement. 21. Partial Invalidity. In case any provision of this Agreement should be deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions shall not be affected or impaired thereby. 22. Successors. This Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors and assigns of the parties to this Agreement. 23. Waivers. No waiver of any breach or default of any term or provision of this Agreement shall be deemed a waiver of any other term or provision of this Agreement, and no waiver shall be valid unless in writing and executed by the waiving party. Contract No. C32130 24. Construction. Section headings in this Agreement are solely for the convenience of the parties and are not a part of and shall not be used to interpret this Agreement. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. Unless otherwise indicated, all references to Sections ace to this Agreement. All exhibits to this Agreement are hereby incorporated by reference. IN WITNESS WHEREOF, said parties have executed this Agreement effective as of the Effective Date above. CONSULTANT By: Its: CONSULTANT By: Its: CITY OF PALM DESERT Mayor ATTEST: Rachelle D. Klassen, City Clerk APPROVED AS TO FORM Dave Erwin, City Attorney ti Contract No. C32130 M SCOPE OF PRFESSIONAL SERVICES SCOPE OF SERVICES Consultant shall provide the following services under the terms of the Agreement: Establish regular meeting schedule for City staff/Consultant team meetings, status meetings and public workshops. 2. Knowledge of California legislations that amends, increases, or impacts the housing element including SB 375, SB 812, AB 1867, AB 1233, AB 162, and SB 244. 3. Meet the requirements of new legislation (SB 244), develop additional text for the Land Use Element that identifies populated areas of the Sphere of Influence (using data developed and available from LAFCo). Identify water, sewer, storm drainage and fire facilities currently existing, and needs and deficiencies in these areas. Also, provide a discussion of the potential funding mechanisms that could make extension of services possible. In Palm Desert's case, this means that the City would have to do this analysis for the Bermuda Dunes area. 4. Review existing policies and programs, and develop analysis of progress made in addressing each of them. Identify policies and programs that require carry-over into the Update, eliminate those that have been completed, and determine new programs that may be necessary for the 2014-2021 planning period. 5. Update demographic section to include 2010 Census information, and where appropriate more recent information with current housing stock and values. 6. Work with staff to determine what sites will be needed in the vacant lands inventory (Table III-33) to meet the City's RHNA. 7. Governmental and environmental constraints will be updated, using data collected from City departments. This will include fee schedule analysis, including engineering, planning and building permit fee analysis. Any development impact fees imposed by the City will also be incorporated into the analysis. 8. Update goals, policies, and programs to reflect the elimination of Redevelopment Agency. Work with staff in incorporating any changes in legislation that might protect housing funds or re -institute housing funds in the Update. 9. Amend draft Housing Element as required, and submit to HCD for review. 10. Track HCD review process, and facilitate provision of any additional information or explanation of methodology, as required. The goal is to receive conditional approval of the Element by HCD prior to its submittal to the Planning Commission and City Council for their actions. 10 Contract No. C32130 11. Make changes required by HCD, after review and approval by City staff. We would assume two revisions to accommodate HCD comments. 12. Prepare CEQA Initial Study Checklist (IS), Negative Declaration and public notice documentation. Provide to City for posting and advertising in Desert Sun. Coordinate with City planning staff to ensure consistency and conformance with City Rules to Implement CEQA. 13. Prepare, in cooperation with City staff, Planning Commission and City Council staff reports, in a format acceptable to the City. Working with City staff, make presentation and answer questions at one Planning Commission and one City Council hearing. Prepare any amendments made by City Council action, and submit to HCD for certification. 11 Contract No. C32130 EXHIBIT B SCHEDULE Palm Desert Housing Element Update Project Schedule Task 9/12 1 10/12 1 11/12 5/12 1 1/13 1 2/13 1 3/13 1 M13 1 5113 6/13 1 7/13 1 8/13 1 9/13 Research & Data Collection • Demographics • Review existing policies & programs • Analyze & modify sites inventory • LAFCo and utility research Housing Element Drafting Prepare Land Use Element Amendment/AB 244 Compliance Planning Commission & City HCD Review, 1st Draft (90 Amend Element per HCD Comments Prepare & Circulate Initial Planning Commission Hearin % City Council Hearing File NOD/CEQA Appeal Period Adopted Document Review by '- HCD/Certification 12 Contract No. C32130 EXHIBIT C City of Palm Desert Housing Element Update Project Budget Terra Nova Staff Time Amount Client Staff Meetings (16 hrs @ $155/Hr.) $ 2,480.00 (6 hrs @ $135/Hr.) $ 810.00 (6 hrs @ $95/Hr.) $ 570.00 Preparation for and Attendance at Two Public Workshops (6 hrs @ $155/Hr.) $ 930.00 (6 hrs @ $55/Hr.) $ 330.00 Research and Data Collection (8 hrs @ $155/Hr.) $ 1,240.00 (32 hrs @ $135/Hr.) $ 4,320.00 (24 hrs @ $95/Hr.) $2,280.00 Housing Element Drafting (24 hrs @ $155/Hr.) $ 3,720.00 (48 hrs @ $135/Hr.) $ 6,480.00 ( 24 hrs @ $95/Hr.) $ 2,280.00 CEQA Initial Study Preparation and Circulation (12 hrs @ $155/Hr.) $ 1,860.00 (24 hrs @ $95/Hr.) $ 2,280.00 (12 hrs @ $40/Hr.) $ 480.00 Responses to HCD Comments (30 hrs @ $155/Hr.) $ 4,650.00 Staff Reports, Presentations, etc. for PC & CC (12 hrs @ $155/Hr.) $ 1,860.00 Land Use Element Amendment/AB 244 Compliance (12 hrs @ $155./Hr.) $ 1,860.00 (24 hrs. @ $135/Hr.) $ 3,240.00 (24 hrs. @ $95/Hr.) $ 2,280.00 (12hrs. @ $55/Hr. $ 660.00 Sub Total: $44,610.00 Reimbursables $2,500.00 Black & White/Color Photo Copies Miscellaneous Office Expenses: Telephone Toll Charges Fax Transmittals, reproduction, postage Total Project Budget: $47,110.00 13 r-1 J TERRA NOVA PLANNING & RESEARCH INC,T) City of Palm Desert CommuNty Development July 30, 2012 JUL 312012 Mr. Kevin Swartz Assistant Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: Housing Element Update Proposal Dear Kevin: Terra Nova is pleased to submit the following proposal in response to your Request for Proposal (RFP) dated July 9, 2012. As you are aware, Terra Nova has assisted the City in preparing its last two Housing Elements, and would be pleased to provide the City with the next update as well. The following responds to your RFP categorically. Introduction and Understanding of the Project The City of Palm Desert updated its Housing Element and received California Department of Housing and Community Development (HCD) `certification' for the document in 2011. The current Housing Element addresses the 2006 through 2013 planning period, and has been adopted by the City Council. Subsequent to adoption, the City completed all the re -zoning of parcels necessary to meet its Regional Housing Needs Assessment (RHNA). The current Housing Element was based on 2000 Census data, because 2010 Census data was not available at the time of its drafting. The update will need to include 2010 Census information. The Draft RHNA for the 2014-2021 planning period has been released, and decreases the City's RHNA target from 4,586 to 413 units. Although not yet final, any changes are expected to be minor. The City will therefore be able to reduce its site inventory, and should be able to meet its RHNA allocation with considerably less land than currently required. The Housing Element is not expected to contain significant changes in policy direction, but will need to address the loss of Redevelopment Agency activities, funding and participation. As changes in law continue to unfold, it is currently difficult to determine how these items will be addressed. The Housing Element draft will need some flexibility to incorporate changes as they occur. Several changes in law affect the 2014-2021 update, including SB 244. This law requires amendment of the Land Use Element of the General Plan to identify "unincorporated fringe communities" in the City's Sphere of Influence, and determine infrastructure needs for those communities. Because this 42635 MELANIE PLACE, SUITE 101 ❑ PALM DESERT, CA 92211 ❑ (760) 341-4800❑ FAX (760) 341-4455 City of Palm Desert Housing Element Proposal July 30, 2012 requirement applies to the Land Use Element, and HCD has no jurisdiction, we highly recommend that the amendments be made only to the Land Use Element, that this amendment be processed concurrently with the Housing Element approval to the City Council, but not transmitted to HCD. Finally, State law now requires that the Housing Element be adopted by October of 2013, in order to avoid penalties. Our proposed schedule works to adopt the Element in plenty of time to meet that requirement, and parallels the `Key Dates' provided in the RFP. Given that the Element is currently certified, and the changes required to meet State law are not substantial, HCD's review of the Update should not require more than two submittals. erra Nova Key Personnel ee erra Nova staff members will be assigned to the Palm Desert Housing Element Update. Ms. Nicole Sauviat Criste will be the Principal in Charge of the project, Ms. Olivia Ervin will be the primary author, and Ms. Kelly Clark will assist in document research and writing. Their resumes are provided below. NICOLE SAUVIAT CRISTE Vice President/Principal Planner Ms. Criste has led Terra Nova's Housing Element efforts since the firm's inception. Her experience with Housing Elements has included Palm Desert (2002 and 2011), Rancho Mirage (1987, 2001 and 2010), Cathedral City (2001 and 2010), Palm Springs (2010), Blythe (1987, 2001, 2010), Yucca Valley (1989, 2001, 2010), and Apple Valley (2010). For the 3rd Update cycle (1998-2006), Ms. Criste completed and received certification from HCD for five Housing Elements. In the 4`h Update cycle (2006-2013), Ms. Criste completed and received certification from HCD for seven Housing Elements. Since 1981, Ms. Criste has conducted extensive land use analysis, development design, market research analysis and marketing strategy development. Her land use/market feasibility experience has included the analysis and application of demographic research to determine real estate and development trends, focused marketing campaigns, and to gauge project feasibility. With Terra Nova since 1985, Ms. Criste has researched and assisted in the preparation of environmental documents for all the cities of the Coachella Valley, the U.S. Bureau of Indian Affairs, Federal Highway Administration, Farmer's Home Administration and the Economic Development Administration. Ms. Criste also works extensively in current planning, assisting the cities of La Quinta, Palm Springs, Banning, San Bernardino, and Yucca Valley in the processing of applications ranging from Specific Plans to Use Permits. Her experience in this area ranges from the staffing of planning department to individual case work and preparation of Initial Studies and Mitigation Monitoring Programs. Ms. Criste is a graduate of Scripps College with a Bachelor of Arts degree in European Studies. 2 City of Palm Desert Housing Element Proposal July 30, 2012 OLIVIA A. ERVIN Senior Planner/Quantitative Analyst Ms. Ervin has been a valued member of the Terra Nova team since early 2007. Since that time she has been involved in a number of projects in the Coachella Valley, including the preparation of CEQA Initial Studies, elements of Specific Plans and General Plans and associated EIRs. During the 4th Housing Element Update cycle (2006-2013), Ms. Ervin assisted in the research and development of Housing Elements for the cities of Palm Desert, Rancho Mirage, Cathedral City and Blythe. She brings her substantial quantitative analytical abilities to air quality analysis, water supply/demand modeling, and other statistical and quantitative analysis. Most recently, Ms. Ervin has been conducting modeling and analysis on greenhouse gas (GHG) emissions and regulations, climate change science, impact analysis and mitigation strategies. Most recently, Ms. Ervin has been project planner with responsibility for Caltrans NEPA and CEQA review and processing for the Ramon Road improvement project and the Cathedral Canyon/Whitewater River Bridge project. She also recently completed air quality analyses for the Frank Simatra roadway widening project in Rancho Mirage and the COD Indio Education Center EIR. Ms. Ervin graduated from the University of California, Davis with a Bachelor's degree in Environmental and Resource Science. This multidisciplinary program emphasized the biological, chemical, and physical features of environmental resources, as well as the economic and social considerations associated with their use, conservation, protection, and management. KELLY CLARK Assistant Planner Ms. Clark joined Terra Nova in 2011. She is a recent graduate of the University of California, Berkeley, with a Bachelor of Science degree in Conservation and Resource Studies. Ms. Clark's coursework emphasized sustainable urban development, environmental policy and community design. With a background in environmental and urban studies, she provides research and document drafting for environmental documents. Since joining Terra Nova, Ms. Clark has provided research and analysis required for CEQA and NEPA documents, local green building policies and various development projects throughout the Coachella Valley, including Initial Studies for the cities of Desert Hot Springs, San Bernardino, Hemet and Twenty-nine Palms. She also contributed to the preparation of the College of the Desert Indio Campus EIR, and is currently part of the team drafting the College of the Desert West Valley Campus EIR. 3 City of Palm Desert Housing Element Proposal July 30, 2012 Relevant Project Experience Terra Nova has completed Housing Element Updates for many of the cities of the Coachella Valley, and for cities of similar size elsewhere in Riverside and San Bernardino counties. Specifically, we completed 4th cycle updates for the cities of Palm Springs, Cathedral City, Rancho Mirage and Palm Desert; as well as the City of Blythe, and the Towns of Apple Valley and Yucca Valley. We are particular proud that our Housing Element clients have relied on us for multiple Housing Elements, and that we have been able to consistently receive certification from HCD for our clients. We have successfully completed the last two Housing Elements for the City of Palm Desert, addressing specific critical issues in each version of the document. In the 1998-2006 planning period, the City had to address the terms of a Stipulated Judgment, and assure that the Element remained consistent with the community's vision. In the 2006-2013 planning period, the most critical issue, as described below, related to identification of adequate sites to meet the RHNA requirements. Although the process was difficult, sufficient land was identified, and HCD certified the document. As requested in the RFP, we provide the following three similar projects with references. City of Palm Desert Housing Element Update Terra Nova updated the Housing Element for the City of Palm Desert for the 1998-2006 and 2006- 2013 planning periods. For the most recent Update, the City's limited higher density vacant land inventory posed the greatest challenge, and extensive work was undertaken to identify and characterize sites for re -zoning to satisfy the City's RHNA. Negotiations with HCD were extensive, but resulted in certification by HCD. Reference: Ms. Lauri Aylaian, Director of Community Development, City of Palm Desert (760) 346- 0611 City of Rancho Mirage Housing Element Update Terra Nova updated the Housing Element for the City of Rancho Mirage for the 1998-2006 planning period. The primary issue with this Update was associated with the vacant land inventory, and the need to restrict lands within the newly adopted Section 19 Specific Plan for affordable housing. As with Palm Desert, the City's RHNA allocation was very high, and required re -zoning of land within the Specific Plan area. The element was certified by HCD and adopted by the City Council. Reference: Mr. Randy Bynder, City Manager, City of Rancho Mirage, (760) 324-4511 Town of Apple Valley Housing Element Update Terra Nova updated the Housing Element for the Town of Apple Valley in conjunction with a major General Plan Update. The primary issues associated with this Housing Element related to Apple Valley's very low density development and its ability to meet affordable housing needs as a result. The Housing Element and General Plan addressed density issues through the creation of a Mixed Use designation, and the expansion of the inventory of High Density lands. The element was certified by HCD and adopted by the Town Council. Reference: Ms. Lori Lamson, Acting Director of Community Development, (760) 240-7000, extension 7204 City of Palm Desert Housing Element Proposal Julv 30.2012 Familiarity with the City of Palm Desert In addition to the Housing Elements we have prepared for the City, Terra Nova has been fortunate to work in and for the City on a number of projects, including: • The Fiscal Impact Analysis in support of the City's consideration of annexation of the Sun City area and northern Sphere of Influence. • Environmental documents for the proposed Voris and Rosewood Hotel projects. • The City's currently adopted General Plan. • Environmental documents for College of the Desert and California State University. • Environmental documentation for private development projects, including the Stone Eagle and Canyons at Bighorn projects on Highway 74. Because of our long history with the City, we have gathered and developed extensive background information on the City, including the demographics needed for the Housing Element Update. We also believe that we have a good working relationship with City staff, and an understanding of the political environment in the City. We believe that this understanding, coupled with our physical location only minutes away from City Hall, will support the effective completion of the Housing Element Update in a time -efficient and cost-effective manner. Task Outline and Schedule of Work We believe that the Housing Element Update should not incorporate any significant changes in policy direction, and have identified the following critical tasks as part of the Update effort. These tasks are directly tied to the schedule and the estimate of man-hours hours provided below. Review existing policies and programs, and develop analysis of progress made in addressing each of them. Identify policies and programs that require carry-over into the Update, eliminate those that have been completed, and determine new programs that may be necessary for the 2014-2021 planning period. This task will also address the loss of Redevelopment, insofar as the assignment of responsibility for programs will need to be shifted elsewhere. • Update demographic section to include 2010 Census information, and where appropriate more recent information (such as Department of Finance, current housing stock and values, etc.). • Work with staff to determine what sites will be needed in the vacant lands inventory (Table III-33) to meet the City's reduced RHNA. • In compliance with SB 812, expand the Special Housing Needs Assessment to include persons with developmental disabilities. Research will focus on existing agencies providing services, including DesertArc, Angel View and others. • Revise programs to meet requirements of SB 375, defining timelines for programs to ensure implementation with beneficial impacts during the program period (Programs currently City of Palm Desert Housing Element Proposal July 30, 2012 shown as "Ongoing" will require more specific identification and quantification of benefits within the 2014-2021 planning period.) • Update goals, policies and programs to reflect elimination of Redevelopment Agency. Work closely with staff in incorporating any changes in legislation that might protect housing funds or re -institute housing funds in the Update. In order to meet the requirements of SB 244, develop additional text for the Land Use Element that identifies populated areas of the Sphere of Influence (using data developed and available from LAFCo). Identify water, sewer, storm drainage and fire facilities currently existing, and needs and deficiencies in these areas. Provide a discussion of the potential funding mechanisms that could make extension of services possible. As noted above, this documentation will be prepared concurrently with the Housing Element Update, but will not be part of the Update. Rather, we recommend that a Land Use Element text amendment be processed through City Council approval concurrently with the adoption of the Housing Element Update. • In coordination with City Staff, prepare for, coordinate and staff two community workshops (primarily geared toward stakeholders such as affordable housing developers, public agency staffs, etc.). Our anticipated time allocation also includes one Planning Commission and one City Council Study Session; and one Planning Commission and one City Council hearing. • Coordinate response to comments from HCD with City staff, and draft modifications to Update as necessary. Prepare CEQA Initial Study and Checklist, Negative Declaration and public notice documentation. The project schedule is provided below. It is consistent with the tasks described above, and the `Key Dates' provided in the City's RFP. City of Palm Desert Housing Element Proposal July 30, 2012 HCD Review, 1st Draft (90 Amend Element per HCD Comments HCD Review 2"d Draft (60 Prepare & Circulate Initial Planning Commission Hearing NANA City Council Hearing File NOD/CEQA Appeal Period Adopted Document Review by HCD/Certification M< Time Allocation and Fee Schedule Based on the tasks and project schedule, we have developed the following estimate of the hours needed to complete the Housing Element Update. The time allocation is followed by our current fee schedule. Task Meetings (Internal and with City staff) Research and Data Collection Staff Person/Hours Principal/16 hours Senior/6 hours Assistant/6 hours Principal/8 hours Senior/32 hours Assistant/24 hours 7 Housing Element Drafting Prepare for and Attend Community Workshops (2) Land Use Element Amendment/AB 244 Compliance City of Palm Desert Housing Element Proposal July 30, 2012 Principal/24 hours Senior/48 hours Assistant/24 hours Principal/6 hours Exhibit Preparation/6 hours Principal/12 hours Senior/24 hours Assistant/24 hours Exhibit Preparation/12 hours Planning Commission & City Council Study Sessions & Hearings (4) Principal/12 hours Responses to HCD Comments Principal/30 hours Initial Study Preparation and Circulation Senior/12 hours Assistant/24 hours Administrative Assistant/12 hours Reimbursables (Not to exceed) $2,500.00 I L -A TERRA NOVA PLANNING & RESEARCH, INC.*) STANDARD FEE SCHEDULE 2012 Terra Nova Staff Hourly Rate Principal Planner $ 155.00 Senior Planner $ 135.00 Associate Planner $ 115.00 Assistant Planner $ 95.00 Design Principal $ 135.00 Media Specialist $ 85.00 Exhibit Preparation $ 55.00 Administrative Assistant $ 40.00 REIMBURSABLES Black & White/Color Photo Copies $ 0.15/0.30 ea. Miscellaneous Office Expenses: Telephone Toll Charges FAX Transmittals, reproduction, postage, etc. Cost 8 City of Palm Desert Housing Element Proposal July 30, 2012 Conclusion I believe that Terra Nova is best suited to complete the City's Housing Element Update, and hope that the materials provided in this proposal adequately demonstrate this. We have worked hard to secure certification of the Element for the City in the past two cycles, and hope to have this opportunity again. I look forward to discussing this project with you further. If you have any questions or require additional information, please do not hesitate to contact me. Sincerely, Nicole Sa Principal 9 0 a� 1 U'l ( Oo Ln LISA WISE CONSULTING INC. v O O rD n O _+; M cu � e_+ 0 O O_ O O rD 3 0- n an O N. o (n rD O M -0 .Q rD d e--h 3� M a� 3 m n�0000 vi N N N N N O O O O ON N I-, 1-- IV N r 0 Ln O O O o o \ c o N n W Ln N V .p Ln LAURIN-LAWRENCE CASTAN EDA 0 r* fu 1-� O 0 1 v O O >y -. 1" a Ln 0. v n n O =*j rt C � � � � O CL �. m N (D r 0 0 3 0- �. N O N. N Ljn (D � O (D e--h 3 n� 3 m F" N F- N !_& .� N O V O V a1 ~' N N N N N N O O O O O -' N N Iv .n O In O O O 1 o 10IR Nol� No� o N W W O -A L" N • Ul P N 0 a, TERRA NOVA v O O w -s v � °. p rD O rt' (DD O (D Q O Ln O 0 O v � T rD-a =• N C � O = Ln \ �• Ln (D �• O (D rD m Q. r r, r* (D cu rD 0 N Ln W O O O a N N N N N N M 0 0 0 0 0 a rt N NJ N N M I7 O Lnh O O O o 0 0 0 0 3„ r+ � w N oo N ,p .p N O Jean Laurin -Lawrence CITY CLERK SEOFFIC Castaneda & Associates PALM DESERT, ca 2012 AUG 23 PM 1: 31 23 August 2012 The Honorable City Council City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 SUBJECT: City of Palm Desert Housing Element Update On July 9, 2012, the City of Palm Desert issued a Request for Proposals for professional services for the update of the City's Housing Element. The City's Department of Community Development accepted proposals through July 31, 2012. On August 23, 2012, the Department of Community Development submitted their Staff Report recommending award of the contract to Terra Nova Planning & Research, Incorporated. We fully support the City's right to award the contract to any consultant they select, but award it because of past relationships with the City, not because their consultant has the most experience preparing housing elements. Few people have the broad housing program experience of Castaneda and Lawrence. After reviewing the Staff Report, we would like to offer the following comments for your consideration: • The State of California, Department of Housing and Community Development (HCD), has specific, definitive, requirements for the form, format, and content of the City's Housing Element. HCD leaves little, if any, discretion in preparation of the Housing Element. The consultant's responsibility is the accurate accumulation, recording and reporting of specific required information required by HCD. • The City's Staff Report recommends award to Terra Nova in the amount of $47,110.00. Castaneda & Associates quoted the City $29,650.00 for performance of exactly the same tasks, a difference of $17,460.00. Any submittal will have to meet all HCD requirements and must receive HCD certification. The City's Staff Report cites a scoring process and evaluation listing two primary reasons award of the contract to Terra Nova: 40101 Monterey Ave., B1-221 Rancho Mirage, CA 92270 760-831-4676 3638 University Avenue, Suite 203 Riverside, CA 92501 951.235.2755 City of Palm Desert Housing Element Update 23 August 2012 Page Two • First, The City's Staff Report states the "evaluation team selected Terra Nova Planning & Research Inc. based upon the qualifications of the principal planner, Nicole Criste, who has prepared over 25 housing elements for various municipalities in Southern California." However, the City's Request for Proposals requested only a listing of "three similar projects that you have completed in the past five (5) years. The Jean Laurin-Lawrence/Castaneda & Associates complied with this requirement. If the number of prepared Housing Elements is a factor in the City's evaluation process, consideration should be given to Ms. Laurin- Lawrence's experience and expertise. She drafted her first (1 s) Housing Element for the County of San Bernardino in 1978. Additionally, Ms.Lawrence and Castaneda & Associates have prepared Housing Elements for the cities of Bakersfield, Beaumont (3), Brawley, Calexico (3), California City, Canyon Lake, Carpentaria (2), Carson (2), Cerritos, Citrus Heights, Coachella, Coronado (2), Costa Mesa, Desert Hot Springs, El Centro, Hawaiian Gardens, Hughson, Huron, Imperial, Imperial Beach, Indio (2), Norwalk (3), Oakley, Oroville, Placentia, Portola, Rancho Palos Verdes (3), San Joaquin, Signal Hill (3), Waterford, Westmorland, and Kern County. All have been approved and certified by HCD. • Secondly, the City's Staff Report cites that Terra Nova has "demonstrated the greatest knowledge of Palm Desert's deep history of providing quality affordable housing in the community." This requirement was not mentioned in the City's Request for Proposals. If that had been a requirement we would have cited Ms. Laurin -Lawrence and Mr.Castaneda's experience which include housing market feasibility studies for the development of a wide range of housing; including one in Palm Desert for Mr. Dan Horn. These studies were prepared for local jurisdictions such as Indio, Coachella, Thermal, Mecca, North Shore, and Travertine Point. In addition, Ms. Laurin -Lawrence was President of the California Council of Affordable Housing (CCAH) and has over twenty years of service on CCAH's Board of Directors. She has also lived in the Coachella Valley, full time, for over 20 years and has a strong continuing commitment to eastern Riverside County City of Palm Desert Housing Element Update 23 August 2012 Page Three While specific Palm Desert experience may be laudable, the real housing need and demand is part of a regional concern. The governmental borders between the Valley cities stretching from Palm Springs to Coachella are virtually invisible, except on maps. And while the State mandates each jurisdiction prepare their own housing element, specifically addressing site issues, the actual development of the units being planned for will also be subject to the economic health of all of Palm Desert's neighbors. I sincerely wish you good luck on this project. The collection and publication of pertinent housing, population, land use, environmental, and economic data for any area of our Valley is important to everyone who lives here. When you award the contract this evening, please do so because Terra Nova is the City's choice, not because of criteria that was not included in the NOFA. Sincerely, ?nta�u,, wrenceCity taf