TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: MARCH 25, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO AMEND THE PROFESSIONAL SERVICES AGREEMENT WITH HOUSEAL LAVIGNE TO INCREASE COMPENSATION FOR COMPLETION OF THE 6TH CYCLE HOUSING ELEMENT UPDATE (FUNDING SOURCE: GENERAL FUND AND HOUSING AND COMMUNITY DEVELOPMENT GRANTS)
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SUMMARY
The Housing Element of the General Plan is one of seven elements mandated by State Law. The Housing Element is subject to detailed statutory requirements and requires review and certification by the California Department of Housing and Community Development (HCD). The Housing Element establishes housing objectives, policies, and programs in response to community housing conditions and needs, and responds to the Regional Housing Needs Assessment (RHNA) numbers allocated to Claremont.
The City Council approved a professional services agreement with Houseal Lavigne on July 28, 2020, to prepare the City’s 6th Cycle Housing Element Update (HEU). The cost approved by the City Council was in the amount of $149,830. On May 25, 2021, the City Council approved an amendment to the agreement for an additional $200,117 to complete the required Environmental Impact Report. On July 12, 2022, the City Council approved an additional amendment to add $35,000 in compensation to complete the Affirmatively Furthering Fair Housing (AFFH) analysis. On July 25, 2023, due to the significant staff and consultant time to respond to comments and feedback from HCD, the City Council approved a third amendment for $65,000, with a total agreement amount not to exceed $449,947.
In July 2023, the City Council adopted the Housing Element Update and directed staff and the consultant to work with HCD to redistribute the density of selected sites in north Claremont. This additional work extended the adoption process by another year due to multiple rounds of revisions. In June 2024, the City Council approved the finalized Housing Element after incorporating these modifications. The extended timeline and additional consultant work necessitate this fourth amendment to add $27,537 to cover the remaining outstanding invoices for the project’s completion.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council:
A. Authorize the City Manager to execute an amendment to the professional services agreement with Houseal Lavigne, increasing compensation by $27,537 for a total not to exceed amount of $477,484 for the completion of the Claremont Housing Element for the 6th Cycle (2021-2029); and
B. Appropriate $27,537 from the unassigned General Fund balance to fully fund the agreement.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Request additional information.
B. Do not authorize amending the agreement.
FINANCIAL REVIEW
The professional services agreement with Houseal Lavigne for the HEU project and preparation of the EIR currently includes $449,946 in compensation. The additional $27,537 would bring the agreement total to $477,484. A portion of the HEU will be funded through grants provided by HCD, including the Local Early Action Planning (LEAP) Grant and the SB 2 Planning Grant. The City will receive up to $230,000 from these grants. Additionally, the City collects a General Plan Maintenance fee that is charged as a percentage of Development Review fees and Building Permit and plan check fees to cover a portion of these costs over time.
The staff cost to prepare this report and administer this project is estimated at $1,169 and is included in the Community Development Department's operating budget.
ANALYSIS
Since the initial contract approval in 2020, multiple amendments have been necessary to address HCD review comments and City Council directives. The first amendment, approved on May 25, 2021, increased the contract by $200,117 to complete the Environmental Impact Report. On July 12, 2022, the City Council approved an additional $35,000 to complete the Affirmatively Furthering Fair Housing (AFFH) analysis. The third amendment, approved on July 25, 2023, allocated an additional $65,000 due to extensive staff and consultant time needed to respond to multiple rounds of HCD feedback, bringing the total contract amount to $449,947.
In July 2023, the City Council adopted the Housing Element and instructed staff to work with HCD on specific modifications, including redistributing densities of certain opportunity sites in north Claremont. This direction required extensive revisions and prolonged the timeline for securing final approval.
To meet the City Council’s direction, staff and the consultant worked closely with HCD to integrate requested changes such as density adjustments, updates to housing policies, and refinements to opportunity site designations. This process demanded significant consultant time and multiple rounds of review and resubmittals.
The finalized Housing Element, with all requested revisions incorporated, was presented to the City Council in June 2024 and received approval. The extended coordination with HCD and additional revisions increased consulting costs, necessitating this contract amendment. The requested $27,537 will cover Houseal Lavigne’s final outstanding invoices related to this additional work. With the Housing Element now adopted, no further consultant charges are anticipated beyond this amendment.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Senior Management Analyst