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Page 1 of 6 <br />Item #6 <br />CITY COUNCIL AGENDA REPORT <br />December 5, 2023 <br />Community Development <br />TITLE: APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH ECONOMIC & <br />PLANNING SYSTEMS, INC. TO CONDUCT A COMPREHENSIVE STUDY OF THE <br />CITY’S DEVELOPMENT IMPACT FEES, INCLUSIONARY ZONING ORDINANCE, <br />AND AFFORDABLE HOUSING FEE, FOR A TOTAL COST OF $203,928 AND <br />APPROVE BUDGET AMENDMENTS IN THE GENERAL FUND AND THE LOWER <br />INCOME HOUSING FUND AND AUTHORIZE THE CITY MANAGER TO <br />APPROVE ADMINISTRATIVE AMENDMENTS TO THE AGREEMENT <br />SUMMARY <br />The City last conducted studies and adopted Capital Facilities and Transportation Impact <br />Fees, and Affordable Housing Fees in 2018; those studies updated and replaced fees <br />previously adopted in 1998. The City’s Inclusionary Zoning Ordinance (IZO) was initially <br />adopted in 2000 and has not been updated since then. As more than five years have elapsed <br />since the adoption of the prior fees, and given the recently adopted Housing Element, the <br />associated anticipated increase in residential development applications, and changes in State <br />law, the City issued a Request for Proposals (RFP) from qualified firms to conduct a study and <br />update of the Development Impact Fees, Affordable Housing Fee (AHF), and IZO. The RFP <br />was issued on August 31, 2023, and closed on September 28, 2023. One proposal was <br />received, from Economic & Planning Systems, Inc. (EPS), which was found to be responsive <br />to the RFP. <br />Following meetings with internal staff as well as EPS, a refined and full scope of work and <br />quote for services has been developed. Staff recommends the Council approve the agreement <br />with EPS to complete a comprehensive study of the City’s Development Impact Fees, IZO, and <br />AHF, for a total cost of $203,928, which includes a 20 percent contingency. <br />RECOMMENDATION <br />Staff recommends the City Council: <br />1. Approve and authorize the City Manager to execute the attached Professional Services <br />Agreement EPS for $203,928, with a term through December 31, 2024. <br />2. Authorize the City Manager to amend the Agreement to update the term and scope of <br />work/Exhibit A as necessary. <br />3. Amend the FY 2023/24 Budget Appropriation for: <br />a. The General Fund by increasing the Community Development Department’s <br />Professional Services Budget by $136,572 and decreasing the fund balance <br />by $136,572; and <br />b. The Lower Income Housing Fund by increasing the Professional Services <br />Budget by $67,356 and decreasing the fund balance by $67,356. <br />Page 118 of 371 <br />DocuSign Envelope ID: CB7E68CB-B5FA-40EC-AA35-142CA6B57242