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  AGENDA ITEM NO. K.5.       
Meeting Date: 07/21/2020  

Consideration to accept a Local Early Action Planning (LEAP) Grant in the amount of $300,000; authorize an additional appropriation of the same; consideration of a Professional Services Agreement with Michael Baker International, Inc. to prepare the City's Housing Element Update in an amount not to exceed $241,045.00; and determination that the Professional Services Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Development Services Director Desatnik)

If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
  1. I move that the City Council accept the Local Early Action Planning grant from the State of California, Housing and Community Development Department in the amount of $300,000; and
  2. I move to authorize an additional appropriation in the amount of $300,000 in FY 2020-2021 Planning Grants fund (200164); and
  3. I move that the City Council find that the Professional Services Agreement between the City of Redlands and Michael Baker International, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and
  4. I further move that the City Council approve the Professional Services Agreement between the City of Redlands and Michael Baker International, Inc. for professional planning services to prepare the City's Housing Element Update."

Staff recommends that City Council accept the Local Early Action Planning grant in the amount of $300,000, appropriate $300,000 to the Planning Grants Fund, and approve the proposed Professional Services Agreement with Michael Baker International, Inc. to prepare the City's 6th Cycle Housing Element Update.

At the May 19 meeting, the City Council authorized the City Manager to submit an application to the California Department of Housing and Community Development requesting Local Early Action Planning (LEAP) grant funds in the amount of $300,000 for eligible activities and programs.  The purpose of the LEAP program is to reimburse eligible activities that "demonstrate an increase in housing related planning activities and facilitate accelerated housing production."  The City intends to utilize these funds for the following eligible activities: completing a Housing Element Update consistent with the sixth cycle Regional Housing Needs Assessment; developing an Accessory Dwelling Unit ordinance; and completing environmental clearance for the Transit Villages Specific Plan which will eliminate future project-specific review.

Housing Element

The Housing Element is part of the City’s General Plan, and is required to be updated every eight years. The Housing Element identifies housing needs in the City, and establishes clear goals and objectives to inform future housing decisions. Pursuant to California Government Code Sections 65580 through 65589.8, the Housing Element must be consistent with the statewide housing statues, housing element guidelines, and the goals and policies as stated in the California Government Code. The City's Housing Element must clearly demonstrate that the City has sufficient capacity to accommodate the number of housing units identified in the Regional Housing Needs Assessment (RHNA). These periodic updates are a reflection of the vital role that housing plays in ensuring the prosperity and stability of our region.
The City currently implements the 2013-2021 Housing Element, which will expire in October 2021. As mandated by the State, the City must embark on the 6th Cycle Housing Element Update process to prepare a 2021-2029 Housing Element. Unlike previous cycles, the 6th Cycle update presents new challenges to all jurisdictions across the State on several fronts, including the increase in RHNA dwelling unit allocations to local jurisdictions, strict housing site eligibility requirements, and new housing laws that confront long-standing policies aimed at managing growth. Furthermore, all jurisdictions must complete the Housing Element Update by October 2021 and is a much shorter timeframe than previous update cycles.
The Planning Division released a Request for Proposal (RFP) on March 26, 2020, requesting interested firms to submit proposals by April 30, 2020. During the RFP period, a pre-bid conference call was held with prospective bidders. At the conclusion of the RFP period, the City received one proposal (from Michael Baker International, Inc.).
Planning Division staff carefully reviewed the proposal and evaluated the consultant team’s qualifications, knowledge of the City, past relevant experience, and the firm's demonstrated ability to meet project timelines and budgets. At the conclusion of the review, staff found that the consultant team has deep knowledge of the City, expert knowledge and experience on the State’s housing laws, has previously prepared dozens of Housing Element Updates including for many communities similar to the City of Redlands, and has a good record of performance with State’s Department of Housing and Community Development. Staff believes that Michael Baker International, Inc. has assembled a high-caliber team that meets staff’s needs to assist the City with the Housing Element Update. Staff also believes that the cost proposal is reasonable, and that project timeline meets State requirements.
Proposed Scope of Work
The scope of work (Attachment B) includes a kick-off meeting, Housing Element Preparation training that will provide staff an understanding of recent changes in state law, as well as an overview of the City’s unique opportunities and challenges. The scope of work also includes: evaluating the current Housing Element, housing needs assessment, RHNA site analysis, identifying housing constraints, preparing the draft 2021-2029 Housing Element and associated CEQA documents, public outreach, coordination with HCD, and obtaining final HCD certification on the updated Housing Element. In addition, the scope of work includes the consultant’s assistance to prepare an Accessory Dwelling Unit (ADU) ordinance, as well as other related code updates to meet Senate Bill 2 (SB 2) requirements pertaining to Supportive Housing and Transitional Housing.

Proposed Schedule and Cost
The overall time frame will be approximately 18 months (to comply with requirements from the HCD). The following table provides a general overview of the proposed schedule (see Attachment C for a detailed project schedule).
Summary of Tasks and Timeline
Kick-off meeting, Housing Element preparation training July 2020
Prepare ADU Ordinance; SB 2 Compliance Review Summer 2020
Research and Analysis (evaluate existing Housing Element,
housing needs assessment, RHNA housing sites analysis,
housing constraints analysis, and prepare new goals and policies)
Summer thru Winter 2020
Prepare draft Housing Element Summer 2020 thru Spring 2021
Prepare CEQA documents; and obtain HCD Certification Winter 2020 thru Summer 2021
Adoption hearings Spring thru Summer 2021

The consultant’s cost proposal is a total of $241,045 (see Attachment D) which will be reimbursed by the LEAP Grant.

The City Council may wish not to accept the LEAP grant and not approve the Agreement, and provide alternative direction to staff.

This item is related to Objective D-2 pertaining to the implementation of the City’s affordable housing programs.
Brian Desatnik, Development Services Director

Charles M. Duggan Jr., City Manager

Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager

Catherine Lin, AICP, Principal Planner

Fiscal Impact
Fiscal Year: FY 2020-21
Revenue Generating: No
Appropriation Required Y/N: Yes
Amount: 300000
Budgeted Y/N: No
Account No.: 200164-6106, 200164-4401, 101164-6106, 200164-6106, 200164-4401
The total cost of the professional services agreement ($241,045) will be reimbursed to the City by the State upon successful completion of the Housing Element project.  Also, an additional $58,955 of the original cost of the Transit Village Plan Specific Plan (TVSP) EIR project will become reimbursable under the LEAP grant.  The $399,819 cost of the TVSP EIR will now be funded by $310,000 from the SB2 grant program, $58,955 from the LEAP grant program, and $30,864 from the General Fund.
Attachment A: Professional Services Agreement
Attachment B: Additional Appropriation Form


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