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07-07-2020 - AGENDA ITEM 03 CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT FOR THE PREPARATION OF THE GENERAL PLAN HOUSING ELEMENT UPDATEAGENDA ITEM NO. 3 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 7, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT FOR THE PREPARATION OF THE GENERAL PLAN HOUSING ELEMENT UPDATE RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute a Professional Service Agreement with JHD Planning, LLC, in an amount not to exceed $68,540, to provide consulting services associated with updating the Housing Element of the General Plan. 2. Approve contingency in the amount of $6,824. 3. Authorize the City Manager to execute any amendments to the Agreement. BACKGROUND: The Housing Element of the General Plan is one of nine elements mandated by State law. Unlike other General Plan elements, the Housing Element is required by State law to be periodically updated. The Housing Element was last reviewed and updated by the City Council along with the City's General Plan Update in December 2016. The December 2016 Housing Element update was considered a part of the 5th planning cycle (2013- 2021). Every eight years, the California Department of Housing and Community Development (HCD) develops a new set of housing production targets, or regional housing needs assessment (RHNA). Each Metropolitan Planning Organization (MPO) is then tasked with developing a methodology to allocate the RHNA to local jurisdictions. Local jurisdictions are required to plan for their RHNA allocation. The Southern California Association of Governments (SCAG) is the City's local MPO and was tasked with allocating a total of 1.3 million housing units for the 6th cycle (2021-2029). The SCAG RHNA allocation methodology was developed based on household growth, job accessibility, transit accessibility, and social equity adjustment. The draft RHNA allocation for the City of West Covina included a total of 5,333 housing units (compared to 831 units in the 5th cycle). The proposed final RHNA allocations will be made available in August 2020 and adopted by October 2020. DISCUSSION: West Covina is required to adopt the Housing Element update by October 2021 in order to be eligible for the https://destinyhosled.mm/print_ag_memo.cfm?seq=825&rev_num=0&mode=6demal&reloaded=true&id=93782 1/2 concerning this Agreement or the work hereunder may be provided by personal delivery, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: IF TO CITY: JHD Planning, LLC City of West Covina P.O. Box 474 1444 West Garvey Ave. South Shaver Lake, CA 93664 West Covina, CA 91790 Email: John@JHDPlanning.net Email: JBurns@westcovina.org Attn: John Douglas Attn: Jo -Anne Burns 6.5. Attorneys' Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. For purposes of this Agreement, the "prevailing party' shall be understood to be that party which is awarded, or successfully defends against, at least seventy-five percent (75%) of the damages sought. 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Consultant shall indemnify and hold harmless the City, and its elected and appointed officials, officers, employees, agents, and representatives, for losses, including reasonable attorneys' fees and costs, to the extent caused by the negligent or wrongful acts, errors, or omissions of Consultant, its officers, employees, agents, or subcontractors in the performance of this Agreement. Consultant has no duty to defend City in connection with this indemnification. However, to the extent that any City loss is finally determined by a court to be caused by the negligent or wrongful acts, errors, or omissions of Consultant, its officers, employees, agents, or subcontractors, Consultant shall reimburse City for such loss, including reasonable defense costs, proportionate to Consultant's comparative fault as determined by the court. Consultant's liability for such losses shall limited to the amount of Consultant's available insurance coverage. JHD Planning, LLC Form ReAsed April 2020 6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. 6.10. PERS Eligibility Indemnification. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. City agrees to compensate Consultant for such assistance in accordance with the hourly rates set forth in the Fee Schedule. 6.12. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs,files audio tapes or any other related items as requested by City or its authorized representative. City agrees to reimburse Consultant for Consultant's actual, reasonable costs of providing such information and data to the City. Consultant or Consultant's agents shall execute such documents as may be necessaryfrom time to time to confirm City's ownership of the copyright in such documents. 6.13. Electronic Safeguards. Consultant shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of the information. Contractor shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment. 6.14. Economic Interest Statement. Consultant hereby acknowledges that pursuant to JHD Planning, LLC Form Revised April 2020 Government Code Section 87300 and the Conflict of Interest Code adopted by City, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advice under this Agreement, prior to the commencement of work, unless waived by the City Manager. 6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, 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 of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Consultant covenants that none of Consultant's officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performanceof the services hereunder, including in any manner in violation of the Political Reform Act. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be used by Consultant 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 any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement. 6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.21. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.22. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of 10 JHD Planning, LLC Form Revised April 2020 this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.23. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.24. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. 6.25. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 6.26 Taxpayer Identification Number. Consultant shall provide City with a complete Requestfor Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service. [SIGNATURE PAGE FOLLOWS] JHD Planning, LLC Form Revised April 2020 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF WEST COVINA, A municipal corporation David Carmany City Manager CONSULTANT John H. Douglas Owner ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Helen Tran Human Resources and Risk Management Director 12 Form Revised April 2020 Date: Date: Date: Date: JHD Planning, LLC EXHIBIT A SCOPE OF SERVICES Described below are the specific tasks and work products we propose for this assignment. Other optional tasks can also be provided if desired. Task I We will conduct an evaluation of the current Housing Element Evaluate the Current including the following: Housing Element . Effectiveness of the housing programs and policies: • Comparison of projected results from the adopted Housing Element to actual accomplishments; • How these results are important to a revision of the Housing Element; • Evaluation of existing Housing Bement in comparison to current State Housing Law. We will also review other City documents that are relevant to understanding local conditions and the community's housing needs, such as the General Plan, SCAG's Regional Housing Needs Assessment, zoning regulations, and other City documents that are related to the Housing Element. The budget assumes that City staff will provide current information regarding City programs that are relevant to the Housing Element, including resources and funding mechanisms. The results of this task will be summarized in an assessment memo and an outline for the 6t" Housing Element update will be prepared. Work Products • Housing Element assessment memo • 61^ Housing Bement outline Task 2 We will complete the housing needs assessment pursuant to Housing Needs State requirements and coordinate with City staff to evaluate Assessment housing conditions using State -approved criteria. Where necessary to complete this task, we will analyze recent demographic and housing data. This data will be used to prepare the housing needs chapter of the Housing Bement including the following information: • Population, household and employment trends; • Special housing needs (e.g. large families, seniors, persons with disabilities, homeless, etc.); • Housing stock characteristics, including at -risk units, housing conditions and vacancy rates: • Residential building permit activity; • Housing cost and affordability: • Projected housing needs as assigned in the RHNA The budget assumes that all information required for the needs analysis will be available from published sources or internal City data, and that no field work or original research will be necessary. Work Products . Housing needs assessment Task 3 We will prepare an evaluation of housing resources, including Resources and Land programmatic, physical, and financial. Information provided Use Inventory by City staff regarding current housing programs will be an important component of this analysis. The analysis will include a land use inventory and "adequate sites analysis" showing the relationship between the City's RHNA allocation and the realistic capacity for additional housing at a parcel -specific level based on current General Plan and zoning designations and existing conditions. It should be noted that significant changes to State requirements for the sites analysis have occurred since the preparation of the 511 cycle Housing Element update. Among the most significant changes are: • Site size - Sites smaller than 1 /2 acre or larger than 10 acres are assumed to be unsuitable for lower -income housing absent evidence such as previous examples of affordable housing development on similar -sized parcels. • Sites listed in prior Housina Elements - Vacant sites identified in two prior housing elements, and non -vacant sites identified in the prior housing element may not be used to satisfy lower -income RHNA needs unless the site satisfies the minimum "default density" for lower -income housing and zoning allows by -right residential development if at least 20% of units will be reserved for lower -income households. • Substantial evidence for underutilized sites - If non - vacant sites comprise 50% or more of the lower -income inventory, the existing use shall be presumed to impede additional residential development absent findings based on substantial evidence that the existing use is likely to be discontinued during the planning period. It is likely that this requirement will apply to West Covina and HCD has not yet published final guidance on what such "substantial evidence" must include. No net loss - Changes to no net loss rules require that adequate sites be maintained throughout the planning period. Under State default density rules, any qualifying site with an allowable density of 30+ units/acre may be counted for 100% lower -income RHNA credit. However, since few housing developments are 100% affordable, it is likely that over the course of the 8-year planning period, more lower -income sites will be needed than indicated by the initial RHNA to offset sites that are developed during the planning period. The first step in preparing the sites inventory will be to update the 510 cycle inventory to reflect development activity, pending applications and changes to land use designations. The updated inventory will then be refined based upon the new critena described above. We will coordinate with City staff to evaluate whether the updated sites inventory is sufficient to accommodate the 61" cycle RHNA. SCAG's 3/5/2020 preliminary RHNA calculator tool estimates a RHNA allocation of 5,333 units for west Covina, with about 2,500 of those in the very -low and low categories. The City's RHNA allocation in the prior cycle was 831 units. The budget for this task assumes that City staff will assist by providing the raw data necessary to update the sites inventory, including City zoning and General Plan designations, infrastructure availability, planning and building permit data, assessor parcel data, and other information that could satisfy "substantial evidence" requirements, such as communications with property owners regarding development interest or expiring leases. If additional land use surveys are needed to satisfy HCD requirements, such work can be provided as an optional task on a time -and -materials basis. Based upon the magnitude of the 61" cycle RHNA assigned to SCAG by HCD - over 1.3 million housing units compared to about 412,000 units in the previous cycle - we anticipate that potential accessory dwelling units (ADUs( will be an important component of the 6th cycle Housing Element sites inventory. One of the first tasks after project initiation will be a conversation with City staff regarding ADU regulations and development trends, and ensuring that a monitoring mechanism is in place to support Housing Element assumptions regarding future ADU development. If necessary, we will work with staff to identify potential zoning and development strategies to address any shortfall of housing capacity compared to the RHNA ollocation (see also the optional tasks below). Work Products Analysis of resources and potential housing sites Task 4 We will update the analysis of governmental and Constraints Analysis nongovernmental constraints based upon any changed circumstances such as the 2016 General Plan and zoning amendments, development review procedures, fees and infrastructure availability. If constraints are identified, we will recommend programs to mitigate or remove them, where feasible. Work Products • Constraints analysis Task 5 This task is a component of the needs analysis described in Task Special Housing 2 above and includes the following segments: Needs Analysis . Elderly • Persons with disabilities • Large (5+) households • Female -headed households • Farmworkers . Homeless Work Products . Special housing needs analysis Task 6 This task includes analysis of assisted housing units that are Preservation of eligible to convert to market -rate housing and strategies Assisted Units available to preserve those units in the affordable housing supply. It is assumed that the City will provide available information regarding assisted housing developments and City resources that could be utilized to assist in the preservation of units at risk of conversion. Work Products . Analysis of units at risk of conversion Task 7 Based upon the current Housing Element, the analyses Goals. Policies and described above, and input from City staff, decision -makers, Programs stakeholders and HCD, we will recommend appropriate revisions to goals, policies. programs and quantified objectives. Work Products • Goals, policies, programs and quantified objectives Task 8 This task includes preparation and review of the 611 cycle Public Review Housing Element consistent with the requirements of State law. The following sub -tasks are proposed: Administrative Draft Housing Element. We will prepare an Administrative Draft Housing Element for internal Staff review. The budget assumes that the substance, level of detail, and format of the new Housing Element will be similar to the current element and that if new maps or graphics that are not available from published sources are desired, they will be provided by City staff. The Housing Element will include all of the sections required by State law, as described in the tasks above. In addition to the Housing Element document, we will prepare a Housing Element Frequently Asked Questions (FAQ( for posting on the City website. Public Review Draft Housina Element. Based upon Staff comments, we will prepare a Public Review Draft Housing Element for City distribution. The Draft Housing Element must be submitted to HCD for review prior to adoption. We will assist Staff in coordinating with HCD and responding to questions and comments on the Draft Housing Element. Final Housing Element. We will prepare a proposed final Housing Element, including any changes to the draft Element required by HCD, for Planning Commission review and City Council adoption. The due date for Housing Element adoption is October 15. 2021 and we will work closet' with Staff to ensure that applicable deadlines and requirements are met. The budget assumes one Draft Housing Element submittal to HCD plus submittal of the adopted element. Public Meetings. The budget assumes that Mr. Douglas will participate in a total of three public meetings/hearings. If additional meeting attendance is desired by the City, we will participate in those additional meetings on a time -and - materials basis. 11/24/2020 Print Staff Report eight -year planning period (2021-2029). This 6th cycle Housing Element update process is anticipated to be more challenging than the previous planing cycles because of new State laws and State threats of legal action for noncompliance. The allocation of 5,333 units will prove to be a formidable policy issue to address in the Housing Element update. Although HCD does not require the allocated 5,333 housing units to be actually constructed, the City is required to identify adequate sites with approximate zoning to accommodate the RHNA. To assist in the preparation of the Housing Element update, staff is seeking a qualified consultant. A Request for Proposals (RFP) was released on April 8, 2020. On May 6, 2020, the City received proposals from JHD Planning, LLC and Rincon Consultants, Inc. The proposals were reviewed by three staff members for each firm's Housing Element preparation experience, qualifications and experience of personnel, and schedule of time and cost based on a weighted scale. The results of the evaluation of the proposals were as follows: No. Firm Score �1 JHD Planning, LLC 80.83 0 Rincon Consultants, Inc. 74.33 Although both firms are qualified to prepare an update of the Housing Element, JHD Planning, LLC is the lowest bid with a cost schedule totaling $75,364 (including contingency), compared to Rincon Consultant, Inc.'s $127,742 proposed cost schedule. Staff is recommending that the City Council approve a Professional Services Agreement with JHD Planning, LLC for an amount not to exceed $68,540, and approve a contingency in the amount of $6,824, to provide consulting services associated with updating the Housing Element of the General Plan. LEGAL REVIEW: The City Attorney's Office has reviewed and approved the proposed agreement as to form. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Fiscal Impact FISCAL IMPACT: Funding for the professional services agreement with JHD Planning LLC will be paid out of the housing funds professional services budget (Account No. 820.22.2210.6110). There are adequate funds in the budget to cover the contract amount. Attachments Attachment No. 1 - Agreement with JHD Planning https://destinyhosted.com/print_ag_memo.Gfm?seq=825&rev_num=0&mode=6demal&reloaded=true&id=93782 2/2 Mr. Douglas will provide a presentation at each meeting as directed by the City's Project Manager. We will also assist City staff in compiling o public notification list of interested parties, assist in preparing public meeting notices for publication by the City, and prepare a draft staff report and supporting materials for each meeting. Work Products • Administrative Draft Housing Element for review by City staff • Public Review Draft Housing Element incorporating staff comments for review by the community, the Planning Commission, the City Council and HCD • Proposed Final Housing Element reflecting any revisions that may be appropriate in response to comments received • Final adopted Housing Element • For each work product, a digital file (Word and PDF) will be provided Participation in three public meetings Task 9 We will conduct on environmental review for the Housing CEQA Compliance Element update in compliance with CEQA. The budget assumes that either an Initial Study/Negative Declaration (IS/ND) or on addendum to the General Plan EIR will be appropriate. The analysis will be programmatic in nature, and if the Housing Element identifies a need for land use and zoning amendments to provide adequate sites, potential impacts related to those amendments and future housing developments will be addressed at a conceptual level of detail. No technical studies are anticipated. If it is determined that land use changes are necessary to demonstrate adequate sites to accommodate the RHNA, we will work with staff to determine an appropriate course of action for those land use amendments and CEQA documentation, and assistance with those amendments, as well as any required housing -related Code amendments, can be provided as optional tasks (see below). Based on the nature of any required land use amendments, it is possible that more extensive analysis such as technical studies or an EIR may be necessary. It is not possible to quantify a budget for CEQA analysis of land use changes until the nature and location of those changes are identified. After the close of the public comment period we will prepare draft responses to any comments received as well as revisions to the CEQA analysis (if necessary) and appropriate CEQA findings for review by the City. We will also prepare draft CEQA notices. The budget assumes that the City will be responsible for distribution and posting of all CEQA documents and payment of all filing fees. As with the Housing Element documents. the budget assumes that digital files (Word and PDF) will be provided for each work product. Work Products • Administrative draft IS/ND or Addendum for city review • Public review draft IS/ND or Addendum incorporating staff comments • Final IS/ND or Addendum Task 10 In consultation with City staff, we will facilitate HCD review and HCD Review certification of the Housing Element. Two rounds of HCD review are required by State low - first for the draft element and then for the adopted element. Mr. Douglas will prepare a summary of HCD comments and the City's responses to Those comments on the draft Housing Element. If HCD has additional comments on the adopted element, we will work with City staff to resolve those issues. It must be noted that the Housing Element is a policy document and we will advise City staff and decision - makers regarding certification requirements. However, since the Housing Element is ultimately subject to approval by the City Council, HCD certification will be contingent on City acceptance of any policy changes required by HCD. Work Products • HCD coordination on the draft and adopted Housing Elements Task 11: This task includes overall project management and Project coordination, including refinements 10 the scope of work, Administration schedule, communications protocols, and ongoing monitoring to ensure the success of the project. Our approach to project management is to anticipate the City's needs and take personal responsibility for the success of the project. The budget assumes that ongoing coordination with City staff will occur via telephone and email. Work Products • Ongoing project coordination and schedule monitoring via telephone and email Optional Tasks Since the last Housing Element was prepared the State Legislature has adopted several significant changes to housing low, and additional changes continue to be introduced this year in Sacramento. The analysis of constraints (Task 4) will identify any City housing regulations that do not comply with current State requirements. As an optional task we can assist the City in drafting housing -related ordinances (such as ADU standards and accommodations for persons with disabilities or other special needs) that may be required based on current State law. Based on SCAG's most recent draft RHNA methodology, it is possible that amendments to General Plan land use designations and zoning regulations could be required in order to demonstrate adequate sites to accommodate the new RHNA allocation. If desired, we will work with the City to prepare a detailed scope of work to address these additional topics to ensure that the City remains in full compliance with State Housing Element law. EXHIBIT B FEE SCHEDULE Our proposed budget for the Housing Element update is shown below. Additional tasks can be provided on a time -and -materials basis. Reimbursable expenses are billed at actual cost with no surcharge. We do not charge for travel expenses, and travel time to/from meetings is included in the budget for each meeting. We commit to donating 10% of our consulting fees to charities of the City's choice that serve the communities where we work. Task Description JD WP Hours Cost 1 Housing Element Evaluation 16 16 $2,400 2 Housing Needs Assessment 40 40 $6,000 3 Resources & Land Use Inventory 80 80 $12,000 4 Constraints Analysis 80 80 $12,000 5 Special Housing Needs 16 16 $2,400 6 Preservation of Assisted Units 16 16 $2,400 7 Goals, Policies & Programs 20 20 $3,000 8 Public Review -Document preparation 40 16 56 $7,040 -Public meetings (3) 48 48 $7,200 9 CEOA Compliance 40 40 $6,000 10 HCO Review 40 40 $6,000 11 ProiectAdmnstration 12 Total Labor 448 Hourly Rate $150 16 $65 12 464 $1,800 $68,240 Contimency(10%) $6,824 Reimbursable Expenses (See table blow) $300 Total Labor + Expenses $75,364 JD = John Douglas, AICP, Principal WP = Graphics/word processing Reimbursable EXDenses Trave)mileage No charge Postage/deliveries/supplies $300 Total $300 NOES, 1) Traiel Done and uses are included n the budget hr each task 2) Contingency funds M not be used mUnbut pnor Gty audnreaban EXHIBIT C PROJECT SCHEDULE Under State law the due date for adoption of N^ cycle Housing Elements in the SCAG region is October 15, 2021. We will work closely with City staff to ensure timely completion of the project. The following preliminary milestone schedule would achieve the State Housing Element deadline; however, this schedule will be subject to refinement during the course of the project in consultation with City staff. Date Milestone June 2020 Authorization to proceed June - December 2020 Review current Housing Element Monitor SCAG RHNA process Prepare Administrative Draft Housing Element RHNA adoption by SCAG Public workshop January 2021 Internal staff review of Administrative Draft Housing Element February 2021 Prepare Public Review Draft Housing Element March - May 2021 HCD review & consultation June 2021 Planning Commission hearing & recommendation July 2021 City Council hearing & adoption Submit adopted Housing Element to HCD 90-dayreview CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH JHD PLANNING, LLC FOR PREPARATION OF THE WEST COVINA GENERAL PLAN HOUSING ELEMENT UPDATE THIS AGREEMENT is made and entered into this 7th day of July, 2020 ("Effective Date"), by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and JHD PLANNING, LLC, a California limited liability company ("Consultant"). WITNESSETH: A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to City to prepare the West Covina General Plan Housing Element update, as more fully described herein; and B. WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated, except that if Consultant is required to but does not yet hold a City business license, it will promptly obtain a business license and will not provide services to the City until it has done so; and C. WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit "A" and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. E. WHEREAS, Consultant responded to the City's Request for Proposals dated April 8, 2020, incorporated via this reference as if fully set forth herein, and Consultant's response to the Request for Proposals was a material inducement to the City ultimately entering into this agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scope of Services. Consultant shall provide the professional services described in the Scope of Services attached hereto as Exhibit "A," incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its 1 JHD Planning, LLC Form ReAsed April 2020 performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant shall keep itself informed of 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. City officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of the Consultant to comply with this section. 1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the reasonable satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warran . Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. 1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or mental disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, sexual orientation, or military or veteran status, except as permitted pursuant to Section 12940 of the Government Code. 1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 1.8 Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, 2 JHD Planning, LLC Form Revised April 2020 pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the court. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "B," attached hereto and made a part of this Agreement (the "Fee Schedule'). Consultant's total compensation shall not exceed Sixty -Eight Thousand Five Hundred Forty Dollars ($68,540.00). 2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the Scope of Services unless the City, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Should the City request in writing additional services that increase the Scope of Services, an additional fee based upon the Consultant's standard hourly rates shall be paid to the Consultant for such additional services. Such increase in additional fees shall be limited to 25% of the total contract sum or to the maximum total contract amount of $25,000, whichever is greater. The Department Head or City Manager is authorized to approve a Change Order for such additional services. 2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. Unless otherwise agreed to by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit "C," attached hereto and incorporated herein by this reference. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3 JHD Planning, LLC Form ReAsed April 2020 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliancewith laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present documentation satisfactory to the City to substantiate any request for a time extension. 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue through December 31, 2021, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement, such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. Consultant may terminate this Agreement at any time, with or without cause, by providing at least thirty (30) days written notice to City. K the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default 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 to at law, in equity, or under this Agreement. The City also shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; C. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or JHD Planning, LLC Form Revised April 2020 Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City's written notice of termination, within forty-five (45) days after the effective date of the notice of termination or the final invoice of the Consultant, whichever occurs last. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best's rating of no less than A:VII, and approved by City: (a) Broad -form commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per accident for bodily injury and property damage. (c) Workers' compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Consultant agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. By execution of this Agreement, the Consultant certifies as follows I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers' Compensation or to undertake self-insurance before commencing any of the work. 5 JHD Planning, LLC Form ReAsed April 2020 The Consultant shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the consultant to comply with this section. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Milion Dollars ($1,000,000.00), combined single limits, per occurrence or claim and aggregate. If the policy is written as a "claims made" policy, the retroactivity date shall be prior to the start of the work set forth herein. Consultant shall obtain and maintain said E&O liability insurance during the life of this Agreement and for one (1) year after completion of the work hereunder. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Agreement, Consultant shall purchase "extended reporting" coverage for a minimum of one (1) year after completion of the work. If the Consultant maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 5.2. Endorsements. The commercial general liability insurance policy shall contain, or be endorsed to contain, the following provisions: (a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles leased, hired, or borrowed by the Consultant. (b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Consultant's insurance coverage shall be primary insurance as respects the Cityof WestCovina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of 6 JHD Planning, LLC Form ReAsed April 2020 whether or not the City has received a waiver of subrogation endorsement from the insurer. (e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. (f) Coverage Applies Separately: The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Key Personnel. It is the intent of both parties to this Agreement that Consultant shall make available the professional services of John Douglas, AICP, who shall coordinate directly with City. Any substitution of key personnel must be approved in advance in writing by City's Representative. 6.4. Notices. Any notices, documents, correspondence or other communications 7 JHD Planning, LLC Form Revised April 2020