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HomeMy WebLinkAbout7/5/2001 - STAFF REPORTS (3) DATE: JULY 5, 2001 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: REDEVELOPMENT DIRECTOR APPROVAL OF AN AGREEMENT WITH ROSENOW SPEVACEK GROUP, INC. OF SANTA ANA, CALIFORNIA FOR THE PREPARATION OF THE COMMUNITY REDEVELOPMENTAGENCY'S FIVEYEAR IMPLEMENTATION/HOUSING COMPLIANCE PLAN, AS REQUIRED BY HEALTH & SAFETY CODE SECTION 33490(a)(1)(3) RECOMMENDATION: It is recommended that the Agency approve the Contractual Services Agreement with Rosenow Spevacek Group, Inc. of Santa Ana, California to prepare the AB 1290 Five Year Implementation Plan for the Community Redevelopment Agency, in an amount not to exceed $12,500. BACKGROUND: AB 1290 (Isenberg, 1992) requires redevelopment agencies in California to prepare and adopt an 1290 Implementation Plan every five years, along with a mid-term update in the third year. The original AB 1290 Implementation Plan was prepared by the firm of Rosenow Spevacek and adopted by the Agency on March 15, 1995; the Mid-Term Update prepared by Agency staff and was adopted in July, 1997. A follow-up Plan was to have been prepared and adopted by December 31, 1999. It was staff's goal in 1999-2000 to do the Plan in-house as the previous Mid-term Update was; however, turnover, vacant positions and an unprecedented project- related workload prevented the Plan from being completed during that period. The absence of a Plan turned up as an audit finding in the FY 1999-2000 Compliance Audit of the Agency by the City's audit firm of Conrad & Associates, which resulted in a notice from the State Controller's Office that a Plan must be adopted or the Agency could face penalties. Further conversations with the Controller's office confirmed that their interest is in seeing the Plan adopted. Staff issued an RFP on June 11, 2001 and received two responses by the closing date of June 21, 2001. The two responses were from: Rosenow Spevacek Group, Inc. Santa Ana Richard Zimmer/Redevelopment Opportunities Anaheim Hills Based on a review of the two responses, the recommendation to the Agency would be to contract with Rosenow Spevacek. The firm wrote the Agency's original AB 1290 Implementation Plan and has since written dozens of plans for agencies all over California. Their proposal was highly detailed and displayed evidence of a thorough understanding of all the legal and regulatory issues involved in drafting and implementing such a plan. Given that the Agency needs to have a new Plan adopted by the end of October, 2001, staff felt that the more experienced proposer provided a better way to get there with less risk of being derailed by inadequate detail. 614 9 do Funds are available forthis contract in accounts 811-8191-43200,812-8192-43200,and 882-8382-43200, "Contractual Services," in the two project areas and the Low/Mod Housing Fund. JbHN S. AYMOND R develo ment Direct r APPROVED <11 ~ Executive Director ATTACHMENTS: 1. Resolution 2. Proposal 3. Agreement—to be provided REVIEWED BY DEn OF FINANCE L ROSLNO W S P E \7 ACiK GROUP 1NC REAL ESTATE CCCGOMICS GOVERNMENT 5111VICLS 540 NORTH GOLDEN CIRCLE TEL 714 541 4585 ECONOMIC DEVELOPFILNT SUITE 305 FAX: 714 8361748 REDEVELOPMENT PLANNING SANTA ANA,CALIFORNIA EMAIL: 1NF00 WL➢RSG.COM OusING LEAL ESTATE ACOUISIT ON 92705-3914 W W W W F➢RSG COM FINANCING Via Overnight Mail June 20, 2001 Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS 3200 Tahquitz Canyon Way Palm Springs, CA 92262 PROPOSAL FOR CONSULTANT SERVICES PREPARATION OF FIVE-YEAR IMPLEMENTATION PLAN Dear Mr. Good: Rosenow Spevacek Group, hic. ("RSG") is pleased to present this proposal to prepare the Palm Springs Community Redevelopment Agency's ("Agency") five-year implementation plan and updated affordable housing compliance plan. Having reviewed the June 11, 2001 Request for Proposals ("RFP") and prepared the Agency's first implementation plan in 1995, RSG understands the nature and scope of this assigmnent. One key difference from the first implementation plan would be that the nonhousing components would be divided into two (versus ten) sections, representing the two recently merged Project Areas. RSG is very interested in the opportunity to again work for the Agency on the implementation plan. Most of our clients who retained RSG to prepare their first implementation plan brought the firm back to prepare the second plan. Our approach to preparing these documents has evolved over the past several years, with greater emphasis on providing a more readable and focused plan. We also are familiar with many of the financial models used to compute the Agency's tax increment resources, and still possess the underlying files needed to begin preparation of a new plan. TABLE OF CONTENTS This proposal presents information sought in the Agency's RFP as follows: Consultant Team Experience Proposal Detail Fee Quote dRA 6 .3 Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS June 20, 2001 Page 2 CONSULTANT TEAM EXPERIENCE Over the past 21 years, RSG has provided implementation and redevelopment plan adoption services to numerous client agencies throughout California. During this period, RSG has provided consultant services for over 100 redevelopment plan adoption/amendment projects. We have been involved in all aspects of redevelopment and housing development planning and implementation. We have also provided a variety of municipal, fiscal, real estate economics, and acquisition consulting services for public and private clients. Specific to this assignment, RSG has prepared Five-Year Implementation Plans and Implementation Updates and Reviews for numerous agencies in California, such as: Bell, Bell Gardens, Burbank, California City, Camarillo, Carson, Chula Vista, Coronado, Covina, Cudahy, El Cajon, Fontana, Fountain Valley, Hercules, Huntington Beach, La Quinta, Lawndale, Poway, San Pablo, Santa Monica, Palm Desert, Palm Springs, Port Hueneme, Victorville, Whittier, the County of Orange and the County of Santa Barbara. James C. Simon, Principal and Project Manager, will manage all aspects of the engagement, oversee preparation of the implementation plan, and make the required presentations to staff and Agency. Mr. Simon has managed and prepared implementations recently for clients in the County of Santa Barbara, City of El Cajon, City of Huntington Beach, City of Fountain Valley, and City of Coronado. Mr. Simon also prepared the Palm Springs Community Redevelopment Agency's first implementation plan in 1995. Lindsay Anderson, Analyst, who will collect all necessary information and assist in data analysis, will assist Mr. Simon on this assignment. Resumes of the consultant team members are included at the end of this proposal. PROPOSAL DETAIL RSG would undertake the following activities as a part of this engagement. 1. Data Collection - Scoping Meeting The project team will hold a seeping meeting with Agency staff and legal counsel to: • Discuss and further refine the scope and objectives of the implementation plan and affordable housing compliance plan. • Identify key planning and political issues that would affect the preparation and adoption of the implementation plan. F.\ SG\MA ETAdopnon-amendment\palmsprinSs-5yr doc 644 y Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS June 20, 2001 Page 3 • Review the first implementation plan and gather information on current status of projects and programs identified in the prior documents, and confirm the availability of the ten-year affordable housing compliance plan. • Identify key resource people and collect all pertinent documents which could include: current budget and annual work program, the County Auditor-Controller's fiscal year 2000-01 assessed value report for the Project Areas, any information on the 1997 review of the first implementation plan, and the housing element. • Review current and proposed Agency implementation projects and programs. • Identify any nontax increment funding sources to be used for desired housing or nonhousing redevelopment projects. II. Identify Potential Nonhousing Projects Based upon the collected data and staff input, RSG will identify housing and nonhousing redevelopment projects that are anticipated for the five-year planning period. III. Identify Projected Revenues and Nonhousing Expenditures for Next Five Years RSG will prepare Project Areas revenue projections and work with staff to estimate potential expenditures for the projects and programs identified in the plan. IV. Prepare Implementation Plan/Housing Compliance Plan Update A. With input from staff, RSG will prepare the implementation plan and affordable housing compliance plan update. Included in this activity are the following tasks: • Section 33334.2 of the Law - The Agency's obligation to use twenty percent (20oyo) of its tax increment revenue to increase, improve, and preserve the community's supply of low and moderate income housing. RSG will conduct a review of the status of the Agency's Housing Fund to determine whether, during the housing program term, there is a potential excess surplus problem. • Section 33334.4 of the Law - Policies regarding the expenditure of low and moderate income housing funds over the duration of the Redevelopment Plan. Monies in the fund should assist housing in the same proportion as the total number of housing units needed for moderate, low, and very low income households, as identified in the fair share allocation model presented in the City's Housing Element. F. tSGQA ETAdoption-amendment\palmsprin5s-Syr.doc ��� C. Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS June 20, 2001 Page 4 • Section 33413(a) of the Law - The need, if any, for the Agency to provide replacement housing units. If implementation of any of the nonhousing and/or housing projects result in the destruction or removal of affordable units, the compliance plan must identify locations for replacement units. Further, any outstanding replacement housing needs resulting from previous redevelopment projects will be identified and incorporated into the housing plan. • Section 33413(b) of the Law — The need to provide deed-restricted affordable housing units at a rate of 0.15:1 for every new or substantially rehabilitated unit developed by private interests in the Project Areas. The compliance plan must quantify the number of residential units that have or will be created in the Project Areas, the resulting affordable housing production need, and how this need will be met. B. Prepare the housing production plan which will involve the following tasks: 1. Conduct needs assessment/fulfillment of affordable housing production requirements to date for the Project Areas: a. Identify the number of dwelling units destroyed or removed by the Agency since adoption of the Project Areas; b. Identify the number of dwelling units constructed in the Project Areas since adoption; i. Privately developed units ii. Agency-developed units C. Identify the number of dwelling units rehabilitated since the Project Areas were adopted; d. Of la-lc, delineate the number of dwelling units which have been created or rehabilitated and reserved for: i. Very low income households ii. Low income households iii. Moderate income households 2. Project the number of dwelling units to be privately developed/rehabilitated during the next five (5) years: P\RSGWd KETAdopuon-amendment\palmsprin6s-5yr doc C"4 �� Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS June 20, 2001 Page 5 a. Identify the projected number of units to be developed in the Project Areas. b. Identify the projected number of units to be rehabilitated in the Project Areas. C. Of 2a and 2b, identify the projected number of dwelling units that must be made available to: i. Very low income households ii. Low income households iii. Moderate income households 3. Project the number of dwelling units to be developed/rebabilitated by the Agency during the next five (5) years: a. The number of units to be developed in the Project Areas. b. The number of units to be rehabilitated in the Project Areas. C. Of 3a and 3b, calculate the number of dwelling units that must be available to: i. Very low income households ii. Low income households iii. Moderate income households 4. Review affordable housing goals, objectives, and programs contained in the City's Housing Element. 5. Project revenues to fund affordable housing production. 6. Delineate implementation projects/programs and sites for housing development in sufficient detail to measure performance, including on an annual basis, expenditures, and number of units developed, rehabilitated, destroyed, or assisted. 7. Develop a schedule of actions for implementing the housing compliance/implementation plan. E aSGWM ETWdopnon-amendment\palmspnnss-5yr doc CD� Mr. Harold Good, CPPO Director of Procurement CITY OF PALM SPRINGS June 20, 2001 Page 6 V. Adopt the Implementation Plan/Compliance Plan Update A. Circulate screencheck draft implementation plan and compliance plan update to Agency staff and legal counsel. Meet with staff to discuss comments and prepare final draft incorporating comments received. B. RSG will prepare the public hearing notice for review by legal counsel and prepare the necessary staff report and adopting resolution. C. Present final implementation plan at Agency public hearing. Note: A total of three meetings (2 staff, 1 Agency public hearing) have been included in this scope of work. Any additional meetings would be billed on a time-and-materials basis. FEE QUOTE RSG will undertake the activities presented in the Proposal Detail for a fee not to exceed $12,500. This includes attendance at three (3) meetings. RSG will bill on a time-and-materials basis at the following hourly rates: Principal $150 Senior Associate $125 Associate $100 Analyst $ 75 Research Assistant $ 65 Word Processor/Graphic Artist $ 45 Clerical $ 35 Reimbursable expenses, such as overnight mail, copies in excess of those noted above, etc., will be billed at cost plus ten percent (10%). Thank you for the opportunity to submit this proposal. If you have any questions regarding this proposal,please call me at(714) 541-4585 x245. Sincerely, ROSENOW SPEVACEK GROUP, INC. James C. Simon Principal Attachments P TSGL7MAR dopiion-amendmeni\palmspnngs-5yr don Resumes James Simon Rose-now Spevacelz Group -Principal Mr. Simon is responsible for many of RSG's redevelopment plan adoption and implementation services, and specializes in market analysis, economic impact analysis, and strategic planning. Mr. Simon's Education clients include the Santa Monica Redevelopment Agency, the Bachelor of Arts Sacramento Housing and Redevelopment Agency, the Community Business Administration - Development Commission of the City of National City, the Stockton Entrepreneurial Management Redevelopment Agency, and the Hollister Redevelopment Agency. Concentration California State University, RosenowSpevacek Group - Senior Associate Fullerton Created the bonding capacity, cash flow, and capital improvement program budget analyses, conducted pro forma analysis, and forecasted Membership s revenues and expenditures for debt financings. Drafted annexation, incorporation and reorganization studies, housing and five-year Former Planning implementation plans, and development impact reports. Prepared Commissioner documentation and coordinated activities for redevelopment plan City of Laguna Niguel adoptions. Assignments included projects in the Cities of Carlsbad, El Cajon, La Quinta, San Buenaventura, Hercules, and Dublin. Private Board Membberee Former Environmental Review sector clients included Intrawest Mammoth Corporation, the Mills City of Laguna Niguel Corporation, and Homeplace Retirement Communities. Rosenow Spevacelz Group - Senior Analyst Assisted project manager in redevelopment plan adoption and implementation activities, including compilation and analysis of property information management system. Forecasted revenues and expenditures for debt financings. Conducted field assessment surveys of property conditions and businesses. Mr. Simon worked in these capacities for the Cities of Palm Desert, San Pablo, Big Bear Lake, Ontario, and Lemon Grove. 60 & Resumes Lindsay Rosenow.Spevac4 Group -Analyst Primary responsibilities include research and data gathering including Anderson real estate market data, demographics, and blight data. Responsible for analysis and database/spreadsheet compilation, along with relevant document preparation including staff reports, resolutions, preliminary Education reports and other redevelopment documents. Work experience includes redevelopment plan amendments in the cities of National City, Masters Sacramento, and Oroville. Public Policy Pepperdine University Association Reserves - Project Manager Bachelor of Arts Assessed the assets of homeowners associations, their condition, and Political Science their replacement cost. Ran economic analysis on gathered information Western Washington University and provided a 30-year financial plan for the association. As Project Manager, responsibilities included working on multiple projects, coordinating schedules with supporting staff, providing bids and completion of reports and strict deadlines. Additional areas of work included consultation with clients on funding plans and strategies. 614 a /to RESOLUTION NO. 1138 OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A CONTRACT WITH ROSENOW SPEVACEK GROUP, INC. OF SANTA ANA, CALIFORNIA, IN AN AMOUNT NOT TO EXCEED $12,500 FOR THE PREPARATION OF THE AB 1290 IMPLEMENTATION PLAN BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, California, that a Contract for Services with Rosenow Spevacek Group, Inc. of Santa, of Santa Ana, California, in the amount of $12,500, for the preparation of the AB 1290 Implementation Plan, is approved. ADOPTED this 5th day of July - 2001. AYES: Members Hodges, Jones, and _Chairman Rleindienst NOES: None ABSENT: Members Reller-Spurgin and Oden ATTEST: COMMUNITY REDEVELOPMENT AGENCY O�F, THE CITYOF PALM SPRINGS, CALIFORNIA B 9 " Y Assistant Secretary Chairman REVIEWED &APPROVED AS TO FORM A 04 a (L