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HomeMy WebLinkAboutAGENDA REPORT 2023 0419 CCSA REG ITEM 10DCITY OF MOORPARK, CALIFORNIA City Council Meeting of April 19, 2023 ACTION APPROVED STAFF RECOMMENDATION, INCLUDING ADOPTION OF RESOLUTION NO. 2023- 4171. (ROLL CALL VOTE: UNANIMOUS) BY A. Hurtado. D. Consider Agreement with Harris & Associates, Inc. for Inclusionary Housing Program Nexus Study and In-Lieu Fee and Resolution Amending the Fiscal Year 2022/23 Budget. Staff Recommendation: 1) Approve Agreement with Harris & Associates, Inc. for Inclusionary Housing Program Nexus Study and In-Lieu Fee, and authorize the City Manager to execute the Agreement, subject to final language approval of the City Manager; and 2) Adopt Resolution No. 2023-4171 amending the Fiscal Year 2022/23 Budget to fully fund the Agreement and associated expenses. (Staff: Jeannine Lugo, Administrative Specialist) (ROLL CALL VOTE REQUIRED) Item: 10.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jeannine Lugo, Administrative Specialist DATE: 04/19/2023 Regular Meeting SUBJECT: Consider Agreement with Harris & Associates, Inc. for Inclusionary Housing Program Nexus Study and In-Lieu Fee and Resolution Amending the Fiscal Year 2022/23 Budget SUMMARY Staff recommends that the City Council approve an Agreement (Attachment 1) with Harris & Associates, Inc. (Harris) for the preparation of an inclusionary housing program nexus study and in-lieu fee in the amount of $52,570 as well as a resolution allocating the necessary additional funding from the City Affordable Housing Fund (2121) for the total contract value. BACKGROUND On February 15, 2023, the City Council adopted a resolution approving the 2021-2029 Housing Element Housing Element following extensive community outreach and coordination with the California Department of Housing and Community Development. The Housing Element establishes goals and policies that the City intends to pursue through 2029 to promote the availability of housing within our community. The adopted Housing Element included the following Housing Assistance Program and Policy HE-2.4 to require 15% of new residential units to be reserved as affordable housing and the option for a Developer to pay a fee in-lieu of providing these units on-site: Program 5: Inclusionary Housing/Nexus Study/Fee The City implements an informal inclusionary housing program and requires developers to set aside up to 15% of new units as affordable to lower- and moderate-income households. This program has facilitated the production of several hundred apartments, condos, and single-family housing units affordable to income-eligible households. However, the current inclusionary requirement only applies to projects requiring a legislative action (e.g., a zone change or General Plan amendment). With the enactment of SB 166, many cities are Item: 10.D. 218 Honorable City Council 04/19/2023 Regular Meeting Page 2 adopting inclusionary ordinances to ensure that affordable housing is built, to avoid “no-net loss requirements,” and to assist the City in meeting state obligations. Having a formal program will streamline the process as it will avoid a project-by-project negotiation and complex development agreement. The program can be structured to require different levels of affordability for rental or ownership projects, thus tailoring the program to market conditions. Program 5 Objectives: • Conduct a nexus study as a prerequisite to design an inclusionary requirement. • Draft and adopt the inclusionary housing program and expenditure priorities. • Monitor the program effectiveness on an annual basis. Policy HE-2.4 Inclusionary Housing. Require 15% of newly constructed units in qualified ownership and rental housing development to be affordable to lower-moderate- income households. With the City’s release of the first comprehensive update to the Zoning Code, it is a timely opportunity to adopt an inclusionary ordinance and develop a citywide affordable housing in-lieu fee. In doing so, the City will be able to better support affordable housing production within our community and not be constrained by the historical practice of only requiring projects with a legislative action to set aside a percentage of units within their developments for this purpose. DISCUSSION With the Housing Element approved, the City is working to implement the associated programs and policies outlined in the document. The professional services outlined in the Harris proposal will accomplish all aspects of the Program 5 Inclusionary Housing/Nexus Study/Fee, included below, and support current City Council goals and objectives. Harris is currently completing work for the City on the Development Impact Fee Study associated with the ClearSource Financial Consulting agreement for Cost Allocation Plan, Impact Fee Study, and Developer Fee Study agreement. Harris has prepared a proposal for the nexus study and development of the in-lieu fee (Attachment 1 – Professional Services Agreement, Exhibit C) that demonstrates their understanding of the project, qualifications of the project team, and proposed schedule. The proposed contract will allow an advantageous project kick-off for Harris to begin work quickly, due 219 Honorable City Council 04/19/2023 Regular Meeting Page 3 to their familiarity with the City ordinances, stakeholders, and existing fees. The project schedule also aligns with the proposed adoption schedule for the zoning ordinance, which will implement the inclusionary housing program along with the fee that Harris will develop. City Council Policy Resolution No. 2019-3829 establishes that professional service contracts may be awarded without informal bidding or a request for proposals (RFP) when services will be less than $60,000. Furthermore, Section 4.C. of the Policy establishes that the City Manager (as the purchasing agent) may waive the applicable selection process to obtain three written responses for the sought-after professional services, based on consultation with the applicable Department Head. Staff believes Harris brings forth a comprehensive background in affordable housing, financial expertise, and a demonstrated understanding of the challenges facing our community. The City Manager, after consulting with the Deputy Community Development Director, has agreed to waive the applicable purchasing process, as a result of Harris demonstrating a positive and exemplary working relationship that staff is confident will be sustained through their preparation of an inclusionary housing program nexus study and in-lieu fee. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no further environmental review is required. FISCAL IMPACT Staff is recommending a $52,570 agreement with Harris & Associates, Inc. Funds are not budgeted for an inclusionary housing program nexus study and in-lieu fee. An amendment to the Fiscal Year 2022/23 budget of $55,000 from the City Affordable Housing Fund Balance (2121-000-00000-33990) is needed to proceed with the prospective services. The additional costs ($2,430) associated with this project will provide for outreach and legal noticing by staff required to advance the in-lieu fee ordinance. The City Affordable Housing Contractual Services account (2121-422- 00000-51000) will be used to expend all associated program costs. COUNCIL GOAL COMPLIANCE This action supports City Council Goal 1, Objective 1.3 “Complete the 6th Cycle Housing Element, which will include housing opportunity sites, and goals and policies to support the creation of housing for all”. 220 Honorable City Council 04/19/2023 Regular Meeting Page 4 STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Approve Agreement with Harris & Associates, Inc. for Inclusionary Housing Program Nexus Study and In-Lieu Fee, and authorize the City Manager to execute the Agreement, subject to final language approval of the City Manager; and 2. Adopt Resolution No. 2023-____ amending the Fiscal Year 2022/23 Budget to fully fund the Agreement and associated expenses. Attachment 1: Agreement with Harris & Associates, Inc. Attachment 2: Draft Resolution No. 2023-____ 221 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND HARRIS & ASSOCIATES, INC. FOR INLCUSIONARY HOUSING PROGRAM NEXUS STUDY AND IN-LIEU FEE SERVICES THIS AGREEMENT, made and effective as of _____________________________________, between the City of Moorpark, a municipal corporation (“City”) and Harris & Associates, Inc., a corporation (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: WHEREAS, City has the need for inclusionary housing program nexus study and in-lieu fee services; and WHEREAS, Consultant specializes in providing such services and has the proper work experience, certifications, and background to carry out the duties involved; and WHEREAS, Consultant has submitted to City a Proposal dated March 20, 2023, which is attached hereto as Exhibit C. NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties hereto agree as follows: 1.TERM The term of this Agreement shall be from the date of execution to completion of the work identified in the Scope of Services and in conformance with Exhibit C, unless this Agreement is terminated or suspended pursuant to this Agreement. 2.SCOPE OF SERVICES City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide inclusionary housing program nexus study and in-lieu fee services, as set forth in Exhibit C. In the event there is a conflict between the provisions of Exhibit C and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibit C. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit C. Compensation for the services to be performed by Consultant shall be in accordance with Exhibit B. Compensation shall not exceed the rates or total contract value of fifty-two thousand five hundred seventy dollars ($52,570) as stated in Exhibit C, without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement. ATTACHMENT 1 222 Harris & Associates, Inc. Page 2 of 19 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of their ability, experience, standard of care, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. MANAGEMENT The individual directly responsible for Consultant’s overall performance of the Agreement provisions herein above set forth and to serve as principal liaison between City and Consultant shall be Alison Bouley, and no other individual may be substituted without the prior written approval of the City Manager. The City’s contact person in charge of administration of this Agreement, and to serve as principal liaison between Consultant and City, shall be the City Manager or the City Manager’s designee. 5. PAYMENT Taxpayer ID or Social Security numbers must be provided by Consultant on an IRS W-9 form before payments may be made by City to Consultant. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C, based upon actual time spent on the above tasks. This amount shall not exceed fifty-two thousand five hundred seventy dollars ($52,570) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services and compensation are authorized, in advance, in a written amendment to this Agreement executed by both parties. The City Manager, if authorized by City Council, may approve additional work not to exceed ten percent (10%) of the amount of the Agreement. Consultant shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. Any expense or reimbursable cost appearing on any invoice shall be accompanied by a receipt or other documentation subject to approval of the City Manager or the City Manager’s designee. If the City disputes any of Consultant’s fees or expenses, City shall give written notice to Consultant within thirty (30) days of receipt of any disputed fees set forth on the invoice. 223 Harris & Associates, Inc. Page 3 of 19 6. TERMINATION OR SUSPENSION WITHOUT CAUSE The City may at any time, for any reason, with or without cause, suspend, or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement. The Consultant may terminate this Agreement only by providing City with written notice no less than thirty (30) days in advance of such termination. In the event this Agreement is terminated or suspended pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination or suspension, provided that the work performed is of value to the City. Upon termination or suspension of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to this Agreement. 7. DEFAULT OF CONSULTANT The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate or suspend this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default. If the City Manager or his/her designee determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have thirty (30) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 8. LIQUIDATED DAMAGES There are no liquidated damages under this Agreement. 9. OWNERSHIP OF DOCUMENTS Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate 224 Harris & Associates, Inc. Page 4 of 19 records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or the City’s designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Notification of audit shall be provided at least thirty (30) days before any such audit is conducted. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension without cause of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 10. INDEMNIFICATION AND HOLD HARMLESS Indemnity for professional liability: When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsels’ fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Indemnity for other than professional liability: Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City, and any and all of its officials, employees, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsels’ fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or agency for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section from each and every subcontractor, or any other person or entity involved by, for, with, or on behalf of Consultant in the performance 225 Harris & Associates, Inc. Page 5 of 19 of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this Section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns, or heirs of Consultant and shall survive the termination of this Agreement or this Section. City does not and shall not waive any rights that it may have against Consultant by reason of this Section, because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions shall apply regardless of whether or not said insurance policies are determined to be applicable to any losses, liabilities, damages, costs, and expenses described in this Section. 11. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit A attached hereto and incorporated herein by this reference as though set forth in full. 12. INDEPENDENT CONSULTANT Consultant is and shall at all times remain as to the City a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers or employees, or agents of the City except as set forth in this Agreement. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 13. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of local, state, and federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations, including but not limited to the Americans with Disabilities Act and Occupational Safety and Health Administration laws and regulations. The Consultant shall comply with and sign Exhibit B, the Scope of Work 226 Harris & Associates, Inc. Page 6 of 19 Requirement for Professional Services Agreements Compliance with California Government Code Section 7550, when applicable. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Should the Scope of Services include work that is considered a public work to which prevailing wages apply, the public work project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). Consultant agrees to comply with and be bound by all applicable terms, rules and regulations described in (a) Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the DIR implementing such statutes, as though set forth in full herein, including any applicable amendments made thereto during the term of this Agreement. For every subcontractor who will perform work on this project, Consultant shall be responsible for subcontractor’s compliance with (a) and (b), and Consultant shall take all necessary actions to ensure subcontractor’s compliance. Labor Code Section 1725.5 requires all contractors and subcontractors to annually register with the DIR before bidding or performing on any public work contract. 14. ANTI DISCRIMINATION Neither the Consultant, nor any subconsultant under the Consultant, shall discriminate in employment of persons upon the work because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status; or any other basis protected by applicable federal, state, or local law, except as provided in Section 12940 of the Government Code. Consultant shall have responsibility for compliance with this Section. 15. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City will receive compensation, directly or indirectly from Consultant, or any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 16. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement. 227 Harris & Associates, Inc. Page 7 of 19 17. CONFLICT OF INTEREST Consultant covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, they shall employ no person having such interest as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly, with the developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, now or within the past one (1) year, and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any contract with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, while under contract with the City and for a one (1) year time period following termination of this Agreement. 18. NOTICE Any notice to be given pursuant to this Agreement shall be in writing, and all such notices and any other document to be delivered shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: To: City Manager City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 To: Alison Bouley Harris & Associates, Inc. 1401 Willow Pass Road, Suite 500 Concord, CA 94520 Either party may, from time to time, by written notice to the other, designate a different address or contact person, which shall be substituted for the one above specified. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the third (3rd) day after deposit in the United States mail. 19. CHANGE IN NAME Should a change be contemplated in the name or nature of the Consultant's legal entity, the Consultant shall first notify the City in order that proper steps may be taken to have the change reflected in the Agreement documents. 228 Harris & Associates, Inc. Page 8 of 19 20. ASSIGNMENT Consultant shall not assign this Agreement or any of the rights, duties, or obligations hereunder. It is understood and acknowledged by the parties that Consultant is uniquely qualified to perform the services provided for in this Agreement. 21. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services in this Agreement. 22. VENUE AND GOVERNING LAW This Agreement is made, entered into, and executed in Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement or other action of the terms, conditions, or covenants referred to herein shall be filed in the applicable court in Ventura County, California. The City and Consultant understand and agree that the laws of the state of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. 23. COST RECOVERY In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including attorneys’ fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 24. ENTIRE AGREEMENT This Agreement and the Exhibits attached hereto contain the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material. 25. CAPTIONS OR HEADINGS The captions and headings of the various Articles, Paragraphs, and Exhibits of this Agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles, Paragraphs, and Exhibits hereof. 229 Harris & Associates, Inc. Page 9 of 19 26. AMENDMENTS Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by both parties to this Agreement. 27. PRECEDENCE In the event of conflict, the requirements of the City’s Request for Proposal, if any, and this Agreement shall take precedence over those contained in the Consultant’s Proposal. 28. INTERPRETATION OF AGREEMENT Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 29. WAIVER No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding unless executed in writing by the party making the waiver. 30. AUTHORITY TO EXECUTE The person or persons executing this Agreement on behalf of the Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF MOORPARK HARRIS & ASSOCIATES, INC. __________________________________ __________________________________ Troy Brown, City Manager Alison Bouley, Vice President Municipal & District Finance Attest: __________________________________ Ky Spangler, City Clerk 230 Harris & Associates, Inc. Page 10 of 19 Exhibit A INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet requirements set forth here, Consultant agrees to amend, supplement, or endorse the existing coverage 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 the City in excess of the limits and coverage required in this Agreement and which is applicable to a given loss, will be available to the City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office (ISO) “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability for each such person. Workers’ Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease. 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 include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in 231 Harris & Associates, Inc. Page 11 of 19 addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to the City for injury to employees of Consultant, subconsultants, or others involved in the Work. The scope of coverage provided is subject to approval by the City following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $2,000,000 aggregate. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of A- or better and a minimum financial size of VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and the City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds the City, its officials, employees, and agents, using standard ISO endorsement CG 2010 and CG 2037 with edition acceptable to the City. Consultant also agrees to require all contractors and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right to subrogation prior to a loss. Consultant agrees to waive subrogation rights against the City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operation limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include limiting endorsement of any kind that has not been first submitted to the City and approved in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification, and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect the City’s protection without the City’s prior written consent. 232 Harris & Associates, Inc. Page 12 of 19 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to city at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled or reduced at any time and no replacement coverage is provided, the City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other Agreement and to pay the premium. Any premium so paid by the City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at the City’s option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to the City of any cancellation or reduction of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation or reduction of coverage imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this Agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to the City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the Work who is brought onto or involved in the Work by Consultant, provide the same minimum insurance required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Work will be submitted to the City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer, or other entity or person in any way involved in the performance of Work contemplated by this Agreement to self-insure its obligations to the City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self- insured retention must be declared to the City. At that time, the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to the City. 233 Harris & Associates, Inc. Page 13 of 19 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with an insurance requirement in no way imposes any additional obligations to the City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as the City, or its employees or agents face an exposure from operations of any type pursuant to this Agreement. This obligation applies whether or not the Agreement is canceled or terminated for any reason. Termination of this obligation is not effective until the City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to the City within five days of the expiration of coverage. 17. The provisions of any Workers’ Compensation or similar act will not limit the obligations of Consultant under this Agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to the City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all- inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts or impairs the provisions of this section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the Work reserves the right to charge the City or Consultant for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to the City. It is 234 Harris & Associates, Inc. Page 14 of 19 not the intent of the City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against the City for payment of premiums or other amounts with respect thereto. 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this Agreement. The City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve the City. 235 Harris & Associates, Inc. Page 15 of 19 Exhibit B CITY OF MOORPARK Scope of Work Requirement for Professional Services Agreements Compliance with California Government Code Section 7550 Consultant shall sign and include this page in any document or written reports prepared by Consultant for the City of Moorpark (City) to which California Government Code Section 7550 (Government Code § 7550) applies. Government Code §7550 reads: “(a) Any document or written report prepared for or under the direction of a state or local agency, that is prepared in whole or in part by nonemployees of the agency, shall contain the numbers and dollar amounts of all contracts and subcontracts relating to the preparation of the document or written report; if the total cost for the work performed by nonemployees of the agency exceeds five thousand dollars ($5,000). The contract and subcontract numbers and dollar amounts shall be contained in a separate section of the document or written report. (b) When multiple documents or written reports are the subject or product of the contract, the disclosure section may also contain a statement indicating that the total contract amount represents compensation for multiple documents or written reports.” For all Professional Services Agreement with a total dollar value in excess of $5,000, a signed and completed copy of this form must be attached to all documents or completed reports submitted to the City pursuant to the Scope of Work. Does the dollar value of this Professional Services Agreement exceed $5,000?  Yes  No If yes, then the following information must be provided in compliance with Government Code § 7550: 1. Dollar amount of Agreement/Contract: $ 52,570.00____ 2. Dollar amount of Subcontract: $ ____________ 3. Does the total contract amount represent compensation for multiple documents or written reports?  Yes  No I have read the foregoing Code section and will comply with Government Code §7550. HARRIS & ASSOCIATES, INC. __________________________________ ______________________ Alison Bouley, Vice President Municipal & District Finance Date 236 1401 Willow Pass Road, Suite 500, Concord, CA 94520  (925) 827-4900  www.WeAreHarris.com March 20, 2023 Doug Spondello, AICP Deputy Community Development Director City of Moorpark 799 Moorpark Ave Moorpark, CA 93021 PROPOSAL: INCLUSIONARY HOUSING PROGRAM NEXUS STUDY/FEE AND ORDINANCE Dear Mr. Spondello, We are pleased to present this proposal to the City of Moorpark (City) to prepare an Inclusionary Housing Ordinance as part of the City’s efforts to formalize the current inclusionary housing program. Having worked with many cities across California to analyze inclusionary housing, we are well positioned to help guide the City through this endeavor. The benefits of selecting Harris for this project include: Project Commitment. We have a history working with the City as we are currently assisting the City with updating the City’s Development Impact Nexus Study. Harris is committed to assisting the City with an inclusionary housing ordinance, Nexus Study, and the resulting in-lieu fee. We understand the importance of completing tasks in a timely manner and communicating with City staff regularly regarding any project issues. When working on projects of this nature, we know that our ability to perform and deliver information reflects directly on City staff. Our team understands the importance of meeting our commitments and communicating regularly and openly with City staff. We also know that staff is pulled in many different directions and understand the need to utilize your time wisely. We will work with you to determine the best method of communication and decision-making processes. Competence, Technical Ability, and Experience. The Harris team has over 20 years of experience in affordable housing and impact fees. Because we are involved in the formation of studies as well as in their implementation, we have a well-informed perspective of implementing successful affordable housing initiatives and impact fee programs and will use that expertise to assist the City in making sound, long-term decisions. By currently working on impact fee programs, we are familiar with the City’s ordinances, stakeholders, and existing fees structures and will not have any ramp up time. Affordable Housing and Financial Experts. We have over a decade of experience in affordable housing ranging from inclusionary housing fee studies to analyzing the development feasibility of affordable housing projects. As financial experts, we are aware of the challenges in developing affordable housing given high construction costs and a lack of public funding sources. We also track the latest trends and best practices to support affordable housing. PROJECT UNDERSTANDING The City’s housing contributions are currently negotiated with each project in the development agreement. The City would like to adopt an inclusionary ordinance as part of the zoning code and develop a citywide affordable housing in-lieu fee. Per the City’s Housing Element, the City implements an informal inclusionary housing program and requires developers to set aside up to 15% of proposed new units as affordable to lower- and moderate-income households. This program facilitiated the production of several hundred apartments, condos, and single-family housing units affordable to income-eligible households. However, the current inclusionary requirements only apply to projects requiring a legislative action (e.g., a zone change or General Plan amendment). With the enactment of SB 166 (Residential density and affordability), many cities are Exhibit C Harris & Associates, Inc.Page 16 of 19 237 Harris & Associates, Inc. 2 of 4 adopting inclusionary ordinances to ensure that affordable housing is built or that additional funding and support for affordable housing is generated from new development. Passing such an ordinance would help the City to maintain compliance with the housing element, to avoid the “no-net loss requirements,” and to meet state obligations. Having a formal program will streamline the process as it will avoid a project-by-project negotiation and complex development agreements. The program can be structured to require different levels of affordability for rental or ownership projects, thus tailoring the program to market conditions. The City has identified the following objectives for the program: · Conduct a nexus study as a prerequisite to design an inclusionary requirement. · Draft and adopt the inclusionary housing program and expenditure priorities. · Monitor program effectiveness on an annual basis. SCOPE OF SERVICES Harris has prepared the following scope of work to prepare an Inclusionary Housing Ordinance and In-Lieu Fee study. The tasks, deliverables and number of meetings included in this Scope are based on our understanding of the potential controversial nature of the Ordinance and the care needed to ensure a transparent process. TASK 1 – DATA ANALYSIS/RECOMMENDATIONS Harris staff will review the following information to develop a deep understanding of the availability of affordable housing and the affordable housing development to date: · The City’s 6th Cycle (2021-2029) Housing Element, which was certified by the State of California Department of Housing and Community Development, Division of Housing Policy Development in November, 2022. · Inclusionary Housing requirements (percentages at various affordability levels only) in surrounding communities. · Current Federal, State and local funding sources for the creation of affordable housing, including grants and proposed legislation (to assess the general viability of leveraging inclusionary housing fees to facilitate affordable housing development moving forward). Harris staff will compile and analyze the data above, and will develop recommendations for both rental and ownership projects, to allow the program to adapt to market conditions. The scope of work includes calculating the housing demand created by new development (using the IMPLAN model) and the affordability gap for each of the four household income levels included in the Housing Element, to determine the difference between what the households can afford to pay for housing and the cost of new units. This demand and affordability gap applied to each of the low-income household levels will be used in calculating the maximum justifiable in-lieu fee. Harris will create a comparison of inclusionary housing fees to local cities. This task includes up to two (2) draft fee calculations, one (1) draft and (1) final memorandum with findings and recommendations. This task will include up to three (3) team calls. Harris will review the assumptions and maximum justifiable fess with City staff, and determine the recommended fee to be presented to City Council after the inclusionary housing ordinance is drafted. It is assumed this City Council meeting will be virtual. TASK 2 – PREPARE NEXUS STUDY/IN-LIEU FEE STUDY Once all parties agree on the fees, Harris will prepare a nexus study that summarizes the assumptions, maximum fee, and staff recommended fees. The report will make the required nexus findings and detailed analysis to justify the fee. The Nexus Study will be prepared in an organized fashion with an executive summary and will contain all required legal and technical documentation. Harris will participate in a call with the City to discuss the report and will incorporate comments from the City into the final draft report. Harris & Associates, Inc.Page 17 of 19 238 Harris & Associates, Inc. 3 of 4 This task includes one (1) draft report, and one (1) final report, as well as up to two (2) calls. TASK 3 – PREPARE INCLUSIONARY HOUSING ORDINANCE Harris will prepare a draft Inclusionary Housing Ordinance for staff and City Attorney’s review. Harris will participate in calls with staff and/or the City Attorney to discuss the draft ordinance language and will incorporate comments from the City into the final draft ordinance. This task will include one (1) draft and one (1) final Ordinance as well as up to two (2) calls. TASK 4 – MEETINGS This Scope includes up to three (3) stakeholder meetings which are anticipated to include housing advocates and one (1) virtual City Council meeting mentioned previosuily in Task 1 as well as additional coordination and meeting time to allow for staff emails, calls, and team coordination meetings. All meetings are assumed to be virtual. The fee estimate was prepared under this assumption. PROJECT SCHEDULE We estimate that the tasks shown in the Scope of Work will take approximately 6 months from the date a signed contract is received to adoption by the City Council. PROJECT TEAM Alison Bouley, Vice President, will serve as the Principal-In-Charge for this assignment. Alison is the head of our Municipal and District Finance team and has 22 years of experience in managing the programming and financing of infrastructure improvements. Financing for these improvements includes Assessment Districts, Mello-Roos Community Facilities District bonds, development impact fees in accordance with AB1600, and annual Mitigation Fee Reports. Alison has been responsible for preparing development impact fee reports, budget and cash flow reports, development agreements, staff reports, and council presentations. Alison has also assisted with verifying and determining eligible reimbursements due to developers for construction of facilities financed through the bond proceeds. She is a true team-player, thriving in environments where she can accomplish the challenges presented by her clients. She will be responsible for overseeing the team and providing QA/QC of the documents. Megan Quinn, Director, will serve as the Project Manager for this assignment. Megan has over 16 years of experience in municipal funding with a strong background in the areas of public finance, real estate economics, land use planning, and financial analysis. Megan’s broad-based background enables her to perform a breadth of financial, economic, and policy analyses. Megan has assisted multiple public and private entities in identifying financing structures and developing comprehensive financing plans for projects to fund both infrastructure and operations. She has assisted public and private entities in preparing infrastructure financing plans, nexus studies, and fiscal impact analyses for master plan communities throughout California. Megan has developed comprehensive infrastructure and operations financing strategies for cities, counties, and special districts. Megan has supported many clients in identifying funding tools for various complex projects, such as the City of Sacramento, Placer County, Greater Sacramento Economic Council, City of Rancho Cordova, City of Vacaville, City of West Sacramento, and numerous private entities throughout California. Dima Galkin, Housing Specialist, will serve as technical advisor for this assignment. Dima has ten years of experience in housing analysis for both market-rate and affordable development. He has advised numerous cities and a regional housing trust on securing and leveraging funding for affordable housing, reviewed pro formas, prepare and edited loan agreements and related documents, and assisted with Housing Element and General Plan updates. Dima’s experience includes a year working directly for the City of Santa Monica’s Housing Division. Harris & Associates, Inc.Page 18 of 19 239 Harris & Associates, Inc. 4 of 4 PROPOSED FEES The proposed not to exceed fee for this work is presented below. Note that this proposal assumes an inclusionary housing requirement of 15% or less, which does not require and economic feasibility analysis. If this assumption changes, then an additional scope of work will be provided for the City to consider for the feability analysis. We appreciate the opportunity to work with the City of Moorpark. Please feel free to contact us if you have any questions. Sincerely, Harris & Associates, Inc. Alison Bouley, PE Megan Quinn Vice President, Municipal & District Finance Director, Municipal & District Finance (949) 306-5704  Alison.Bouley @WeAreHarris.com (916) 306-5704  Megan.Quinn@WeAreHarris.com Principal Project Housing Project In Charge Manager Specialist Analyst Total Total $275/hr $240/hr $225/hr $130/hr Estimated Estimated (Alison) (Megan) (Dima)Hours Fee Task 1: Data Analysis/Recommendations 4 22 10 48 84 14,870$ Task 2: Prepare Nexus Study/In-Lieu Fee Study 4 26 10 54 94 16,610$ Task 3: Prepare Inclusionary Housing Ordinance 2 16 6 10 34 7,040$ Task 4: Meetings 6 22 16 4 48 11,050$ IMPLAN Data 3,000$ 16 86 42 116 260 52,570$ Harris & Associates, Inc.Page 19 of 19 240 RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2022/23 BUDGET TO APPRPORIATE $55,000 FROM THE CITY AFFORDABLE HOUSING FUND (2121) FOR THE DEVELOPMENT OF A HOUSING PROGRAM NEXUS STUDY AND ADOPTION OF INCLUSIONARY HOUSING IN-LIEU FEE WHEREAS, on June 15, 2022, the City Council adopted the Operating and Capital Improvement Budget for fiscal year 2022/23; and WHEREAS, a staff report has been presented to City Council requesting a budget amendment in the amount of $55,000 from the City Affordable Housing Fund (2121) for professional services of an inclusionary housing in-lieu fee nexus study and ordinance. WHEREAS, Exhibit “A” hereof describes said budget amendment and its resultant impact to the budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment of $55,000 from City Affordable Housing Fund (2121) for professional services of an inclusionary housing in-lieu fee nexus study and ordinance, as more particularly described in Exhibit A, attached hereto, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 19th day of April, 2023. ________________________________ Chris R. Enegren, Mayor ATTEST: ___________________________________ Ky Spangler, City Clerk Attachment: Exhibit A – Budget Amendment ATTACHMENT 2 241 Resolution No. 2023-____ Page 2 EXHIBIT A BUDGET AMENDMENT FOR CITY AFFORDABLE HOUSING FUND (2121) DEVELOPMENT OF A HOUSING PROGRAM NEXUS STUDY AND ADOPTION OF INCLUSIONARY HOUSING IN-LIEU FEE FY 2022/23 FUND BALANCE ALLOCATION: Fund Title Fund Account Number Amount CITY AFFORDABLE HOUSING 2121-000-00000-33990 $ 55,000.00 Total $ 55,000.00 EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2121-422-00000-51000 $ 24,095.40 $ 55,000.00 $ 79,095.40 Total $ 24,095.40 $ 55,000.00 $ 79,095.40 242