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Finance Committee

Meeting Date:	08/13/2019
FROM:	Bill Gallardo

Subject:

Consideration of a Professional Services Agreement with Karen Warner Associates Inc. (KWA) for the 2021-2029 Housing Element Update and Associated Environmental Needs

RECOMMENDATION

Approve the Professional Services Agreement between the City of Brea and Karen Warner Associates Inc. for preparation of the 2021-2029 Housing Element Update in an amount not-to-exceed $85,000.

BACKGROUND/DISCUSSION

The Housing Element within our General Plan is the City's chief policy document on housing issues, including affordable housing for low and moderate-income families. A Housing Element provides the plan and programs that focus on conserving and improving existing affordable housing; provides adequate housing sites; assists in the development of affordable housing; removes constraints to housing development; and promotes equal housing opportunities.

To ensure that cities do not overlook their local responsibilities to provide housing opportunities for all income levels, each city is assigned a "fair share" number of housing units that it needs to be accommodated in the next housing cycle. Section 65588 of the California Government Code dictates that local government agencies within the Southern California Association of Governments (SCAG) regional jurisdiction are to file their adopted housing element with the State update by October 2021. The City of Brea, as well as the balance of all SCAG jurisdictions, will receive their draft Regional Housing Needs Assessment (RHNA) allocations in 2020. Approval of this contract is necessary so the work to update the Housing Element can begin and be completed as further RHNA details emerge.

The current 2014-2021 Brea Housing Element was adopted by City Council in 2013. The document was prepared by KWA, and staff has solicited a new proposal for professional services to assist with the 2021-2029 Housing Element update. The subject proposal is included under Attachments and outlines the services and materials that will be provided if approved.

Staff has sought a sole source agreement with KWA for a number of reasons. Having completed more than one of Brea’s Housing Element Updates, KWA is very familiar with Brea, its housing stock, and its demographics. They have demonstrated in past work for Brea the ability to be responsive, knowledgeable, and experienced. Additionally, KWA's prior work on the Housing Element will prove to be more cost-effective than utilizing a consultant who will need to learn Brea's demographic characteristics and special housing needs. KWA's familiarity with the State Department of Housing and Community Development needs and processes was instrumental in assisting Brea with obtaining a compliant Housing Element in previous years. Finally, and as detailed later in this report, KMA is competitively priced for services and represents a good value to Brea.

Furthermore, since the adoption of the current Element, several new pieces of legislation have taken effect and KWA has become knowledgeable with the new requirements. Their familiarity with Brea will also benefit in addressing another key change to the 6th cycle housing element update, which is SCAG’s anticipated higher RHNA allocations. With new legislation to consider, staff’s survey of neighboring jurisdictions shows that cities seeking Housing Element preparation are contracting services in the $75,000 to $225,000 range (survey of seven cities in the SCAG region). With KWAs ability to keep its rates on par with its work in Brea from 2008 and 2013, their experience with our community, and their quality work product, their proposal represents an exceptional value.

The KWA contract is at $85,000 which includes a contingency at the lower end of this range making the proposal competitive. As a small firm with expertise in housing issues, KWA's proposal provides excellent value to the City (with rates on par with the 2013 contract), avoiding the larger overhead charges which can be associated with larger consulting firms. Critically, staff finds that KWA will be able to meet our goal to finish this project well ahead of the state deadline of October 2021.

SUMMARY/FISCAL IMPACT

The cost for KWA to prepare the Housing Element update will be an amount not-to-exceed $85,000. The funding of these services is available and will be programed into the City budget through revenues received from our General Plan Maintenance Fund (60%) and City Housing Successor Fund (40%).

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Linda Sok Tang, Management Analyst I
Concurrence: David Crabtree, Community Development Director

Attachments
Karen Warner Associates, Inc. - Housing Element PSA