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HomeMy WebLinkAbout5.3 Second Amendment to the Consulting Services Agreement with Economic and Planning Systems, Inc.r DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL DATE: February 20, 2024 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager Agenda Item 5.3 SU B.ECT : Second Amendment to the Consulting Services Agreement with Economic and Planning Systems, Inc. Prepared by: Jason Earl, Senior Management Analyst EXECUTIVE SUMMARY: The City Council will consider approving a second amendment to the agreement with Economic and Planning Systems, Inc., for evaluation of the current inclusionary zoning requirement, Affordable Housing In -Lieu Fee, and Commercial Linkage Fee. STAFF RECOMMENDATION: Adopt the Resolution Approving the Second Amendment to the Consulting Services Agreement Between the City of Dublin and Economic and Planning Systems, Inc., and approve the budget change. FINANCIAL IMPACT: The proposed second amendment to the Consulting Services Agreement with Economic and Planning Systems, Inc. will increase the total not -to -exceed compensation from $72,390 to $110,292, which includes a 20% contingency. The additional cost will be charged to the City's Affordable Housing Fund and will require a budget change (Attachment 3). DESCRIPTION: Background The City of Dublin Two -Year Strategic Plan includes Strategy 2 Housing Affordability. Included in this Strategy are the following two Objectives: • Objective 2.b: Ensure the City's inclusionary zoning regulations incentivize targeted housing production; and • Objective 2.c: Prepare a nexus study to evaluate the affordable housing commercial linkage fee and affordable housing in -lieu fee for for -sale and rental housing. Page 1 of 3 1 On April 18, 2023, the City Council adopted Resolution No. 33-23 approving a Consulting Services Agreement with Economic and Planning Systems, Inc. (EPS) for the evaluation of the current inclusionary zoning requirement, Affordable Housing In -Lieu Fee, and Commercial Linkage Fee. The agreement had a not -to -exceed compensation amount of $79,629 and expired on December 31, 2023 (Attachment 4). The agreement was subsequently amended to extend the term through June 30, 2024 (Attachment 5). Staff and EPS prepared an Affordable Housing In -Lieu Fee Feasibility Study and a Commercial Linkage Fee Nexus Study. As directed by the City Council, these studies analyzed and assessed the targeted housing production and fees, and provided a housing market analysis to ensure that Dublin remains competitive for both housing and commercial development, while ensuring the availability of affordable housing. The City Council received an informational report on these efforts on August 15, 2023 and provided initial feedback and direction regarding updates to these programs. On September 19, 2023, the City Council received another informational report and directed Staff to prepare updates to the Inclusionary Zoning Regulations, Affordable Housing In -Lieu Fee, and Non -Residential Development Affordable Housing Impact Fee which is also referred to as a "Commercial Linkage Fee". On January 9, 2024, the City Council held a public hearing to consider the proposed amendments to the Inclusionary Zoning Regulations, Affordable Housing In -Lieu Fee, and Non -Residential Development Affordable Housing Impact Fee. The City Council directed Staff to return at a future meeting with additional information and analysis. The request is outside the scope and budget of the current agreement with EPS. An amendment to the agreement with EPS has been prepared to modify the scope of work to address the request for additional analysis, increase the total compensation by $37,902 to a new total of $110,292 including an additional 20% contingency, and extend the agreement term to December 31, 2024. STRATEGIC PLAN INITIATIVE: Strategy 2: Housing Affordability Objective 2b: Ensure the City's inclusionary zoning regulations incentivize targeted housing production. Objective 2c: Prepare a nexus study to evaluate the affordable housing commercial linkage fee and affordable housing in -lieu fee for for -sale and rental housing. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. Page 2 of 3 2 ATTACHMENTS: 1) Resolution Approving the Second Amendment to the Consulting Services Agreement Between the City of Dublin and Economic and Planning Systems, Inc. 2) Exhibit A to the Resolution - Second Amendment to Consulting Services Agreement Between the City of Dublin and Economic and Planning Systems, Inc. 3) Budget Change Form 4) Consulting Services Agreement Between the City of Dublin and Economic and Planning Systems, Inc. (EPS), dated April 18, 2023 5) First Amendment to Consulting Services Agreement between the City of Dublin and Economic and Planning Systems, Inc. (EPS), dated January 10, 2024 Page 3 of 3 3 Attachment I RESOLUTION NO. XX — 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE SECOND AMENDMENT TO THE CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND ECONOMIC AND PLANNING SYSTEMS, INC. WHEREAS, the City of Dublin Two -Year Strategic Plan includes addressing Housing Affordability and includes objectives to evaluate the City's current inclusionary zoning requirement, Affordable Housing In -Lieu Fee, and Commercial Linkage Fee; and WHEREAS, Economic & Planning Systems, Inc. (EPS) was selected through a competitive process to assist Staff with evaluating the City's inclusionary zoning requirements, affordable housing in -lieu fees and commercial linkage fees; and WHEREAS, on April 18, 2023, the City of Dublin and EPS entered into a Consulting Services Agreement for Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study services (Agreement) for an amount not -to -exceed $79,629. The term of the Agreement shall begin on the Effective Date and shall end on December 31, 2023; and WHEREAS, the agreement with EPS was subsequently amended to the extend the term of the agreement to June 30, 2024; and WHEREAS, on January 9, 2024, the City of Dublin held a public hearing to consider amendments to these programs, after hearing the proposed amendments the City Council directed additional work which is outside the scope of work and budget in the existing Agreement; and WHEREAS, the City wishes to further amend the Agreement with EPS to modify the scope of work and increase the compensation, and extend the term of the contract in order to address the direction received from the City Council. NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby approve the Second Amendment to the Consulting Services Agreement with EPS, attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the amendment to the Agreement, attached hereto as Exhibit A. and make any necessary, non - substantive changes to carry out the intent of this Resolution. {Signatures on the following page} Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 1 of 2 4 PASSED, APPROVED AND ADOPTED this 20th day of February, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 2 of 2 5 DocuSign Envelope ID: 3EB7F967-819D-4EE8-A029-41 B62A92B947 Attachment 2 Exhibit A to the Resolution AMENDMENT #2 TO CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND ECONOMIC AND PLANNING SYSTEMS, INC. (EPS) WHEREAS, on April 18, 2023, the City of Dublin (hereinafter referred to as "CITY") and Economic & Planning Systems ("EPS") (hereinafter referred to as "CONSULTANT") entered into a Consulting Services Agreement for Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study services (hereinafter referred to as the "AGREEMENT"); and WHEREAS, on January 10, 2024, a First Amendment to the AGREEMENT was entered into to extend the term of service to June 30, 2024; and WHEREAS, the City Council has directed additional work which is outside the scope of work and budget in the existing AGREEMENT; and WHEREAS, the CITY and CONSULTANT now mutually desire to amend the AGREEMENT to include the additional scope of work, extend the term, and increase the compensation. NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the AGREEMENT is amended as follows: 1) Section 1.0 Services shall be amended as follows and all other provision of this section shall remain unchanged: SERVICES. Subject to the terms and conditions set forth in the AGREEMENT, CONSULTANT shall provide to CITY the amended services described in the Scope of Work attached as Exhibit A, all other provisions of this section shall remain unchanged. 2) Section 1.1 Term of Services shall be amended as follows and all other provision of this section shall remain unchanged: The term of this agreement shall end on December 31, 2024. 3) Section 2.0 Compensation shall be amended as follows and all other provision of this section shall remain unchanged: COMPENSATION. CITY hereby agrees to pay CONSULTANT a sum not to exceed $110,292 which includes a contingency reserve of $18,382 to be approved for use by the City Manager. CONSULTANT shall provide to CITY the amended services as shown in the Budget attached as Exhibit A, all other provisions of this section shall remain unchanged. 4) Except to the extent inconsistent with this Second Amendment, the Parties ratify and confirm all of the terms and conditions of the AGREEMENT. Page 1 of 2 6 DocuSign Envelope ID: 3EB7F967-819D-4EE8-A029-41 B62A92B947 Exhibit A 5) All requisite insurance policies to be maintained by the CONSULTANT pursuant to the AGREEMENT, as may have been amended from time to time, shall include coverage for the amended term, as described above. 6) The individuals executing this Second Amendment and the instruments referenced in it on behalf of Consultant each represent and warrant that they have the legal power, right, and actual authority to bind Consultant to the terms and conditions of this Second Amendment SIGNATURES ON FOLLOWING PAGE Page 2 of 2 7 DocuSign Envelope ID: 3EB7F967-819D-4EE8-A029-41 B62A92B947 Exhibit A IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed as of the date of the City Manager's signature below. CITY OF DUBLIN By: Linda Smith, City Manager Dated: ATTEST: By: Marsha Moore, City Clerk APPROVED AS TO FORM: By: City Attorney 5589310.2 ECONOMIC & PLANNING SYSTEMS, INC. By: DocuSigned by: v [ia )r,i� 44J. Ash elg gnat, Principal Page 3 of 2 8 Attachment 3 Program / CIP Description Inclusionary Zoning and In -Lieu Fee Feasibility Study Fund Description and (CIP) ORG/CIP # Account Amount Justification of the Request 29018100 65101 $37,902 Budget increase to increase the scope of work for the Consulting Services Agreement with EPS as per City Council direction on January 9, 2024. Funding will come from the Affordable Housing Fund Balance. 9 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND ECONOMIC AND PLANNING SYSTEMS, INC. (EPS) FOR INCLUSIONARY ZONING AND IN -LIEU FEE FEASIBILITY STUDY AND COMMERCIAL LINKAGE FEE NEXUS STUDY THIS AGREEMENT for consulting services is made by and between the City of Dublin ("City") and Economic & Planning Systems (EPS) ("Consultant") (together sometimes referred to as the "Parties") as of April 18, 2023 (the "Effective Date"). Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on December 31, 2023, the date of completion specified in Exhibit A, and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as referenced in Section 8. Notwithstanding the foregoing this Agreement may be extended on a month to month basis for up to 6 months upon the written consent of the Consultant and the City Manager, provided that: a) sufficient funds have been appropriated for such purchase, b) the price charged by the Consultant for the provision of the services described in Exhibit A does not increase. None of the foregoing shall affect the City's right to terminate the Agreement as provided for in Section 8. 1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Subsection 1.2 above and to satisfy Consultant's obligations hereunder. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 1 of 15 10 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $79,629, notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant's proposal, attached as Exhibit B, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person. Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the Parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement. 2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. No individual performing work under this Agreement shall bill more than 2,000 hours in a fiscal year unless approved, in writing, by the City Manager or his/her designee. Invoices shall contain the following information: ■ Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; ■ The beginning and ending dates of the billing period; • A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion; ■ A copy of the applicable time entries or time sheets shall be submitted showing the following: o Daily logs of total hours worked by each individual performing work under this Agreement o Hours must be logged in increments of tenths of an hour or auarter hour o If this Agreement covers multiple projects, all hours must also be logged by project assignment o A brief description of the work, and each reimbursable expense • The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder; Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 2of15 11 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 ■ The Consultant's signature; ■ Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period under this Agreement and any other agreement between Consultant and City. Such notice shall include an estimate of the time necessary to complete work described in Exhibit A and the estimate of time necessary to complete work under any other agreement between Consultant and City, if applicable. 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this Agreement within 60 days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed. 2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment. 2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation schedule attached hereto as Exhibit B. 2.6 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B, and shall not exceed $1,120. Expenses not listed in Exhibit B are not chargeable to City. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 3 of 15 12 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date. 2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein. City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant's use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Section 4. INSURANCE REQUIREMENTS. Before fully executing this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid or proposal. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence to City that such insurance is in effect. VERIFICATION OF THE REQUIRED INSURANCE SHALL BE SUBMITTED AND MADE PART OF THIS AGREEMENT PRIOR TO EXECUTION. Consultant shall maintain all required insurance listed herein for the duration of this Agreement. 4.1 Workers' Compensation. 4.1.1 General Reauirements. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than $1,000,000 per accident. In the alternative, Consultant may rely on a self-insurance program to meet these requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 4 of 15 13 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the Consultant, its employees, agents, and subcontractors. 4.1.2 Submittal Requirements. To comply with Subsection 4.1, Consultant shall submit the following: a. Certificate of Liability Insurance in the amounts specified in the section; and b. Waiver of Subrogation Endorsement as required by the section. 4.2 Commercial General and Automobile Liability Insurance. 4.2.1 General Requirements. Consultant, at its own cost and expense, shall maintain commercial general liability insurance for the term of this Agreement in an amount not less than $1,000,000 and automobile liability insurance for the term of this Agreement in an amount not less than $1,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including without limitation, blanket contractual liability and the use of owned and non -owned automobiles. 4.2.2 Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an "occurrence" basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001, Code 1 (any auto). No endorsement shall be attached limiting the coverage. 4.2.3 Additional Reauirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: a. The Insurance shall cover on an occurrence or an accident basis, and not on a claims -made basis. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 5 of 15 14 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 b. City, its officers, officials, employees, and volunteers are to be covered as additional insureds as respects: liability arising out of work or operations performed by or on behalf of the Consultant; or automobiles owned, leased, hired, or borrowed by the Consultant. c. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation. d. For any claims related to this Agreement or the work hereunder, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 4.2.4 Submittal Reauirements. To comply with Subsection 4.2, Consultant shall submit the following: a. Certificate of Liability Insurance in the amounts specified in the section; b. Additional Insured Endorsement as required by the section; c. Waiver of Subrogation Endorsement as required by the section; and d. Primary Insurance Endorsement as required by the section. 4.3 Professional Liability Insurance. 4.3.1 General Reauirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than $2,000,000 covering the licensed professionals' errors and omissions. Any deductible or self -insured retention shall not exceed $150,000 per claim. 4.3.2 Claims -Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims -made form: a. The retroactive date of the policy must be shown and must be before the date of the Agreement. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 6 of 15 15 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 b. Insurance must be maintained and evidence of insurance must be provided for at least 3 years after completion of the Agreement or the work, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims -made policy form with a retroactive date that precedes the date of this Agreement, Consultant shall purchase an extended period coverage for a minimum of 3 years after completion of work under this Agreement. d. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement. 4.3.3 Submittal Requirements. To comply with Subsection 4.3, Consultant shall submit the Certificate of Liability Insurance in the amounts specified in the section. 4.4 All Policies Reauirements. 4.4.1 Acceptability of Insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. 4.4.2 Verification of Coverage. Prior to beginning any work under this Agreement, Consultant shall furnish City with complete copies of all Certificates of Liability Insurance delivered to Consultant by the insurer, including complete copies of all endorsements attached to the policies. All copies of Certificates of Liability Insurance and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. If the City does not receive the required insurance documents prior to the Consultant beginning work, it shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete copies of all required insurance policies at any time. 4.4.3 Deductibles and Self -Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self -insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. 4.4.4 Wasting Policies. No policy required by this Section 4 shall include a "wasting" policy limit (i.e. limit that is eroded by the cost of defense). 4.4.5 Endorsement Requirements. Each insurance policy required by Section 4 shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days' prior written notice has been provided to the City. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 7 of 15 16 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach: ■ Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; ■ Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or ■ Terminate this Agreement. Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Refer to the attached Exhibit C, which is incorporated herein and made a part of this Agreement. Section 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. This Agreement shall not be construed as an agreement for employment. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Consultant further acknowledges that Consultant performs Services outside the usual course of the City's business; and is customarily engaged in an independently established trade, occupation, or business of the same nature as the Consultant performs for the City and has the option to perform such work for other entities. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 8 of 15 17 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. Section 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder, including but not limited to, the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Consultant's failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract. 7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. 7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. 7.5 Nondiscrimination and Egual Opportunity. Consultant shall not discriminate, on the basis of a person's race, sex, gender, religion (including religious dress and grooming practices), national origin, ancestry, physical or mental disability, medical condition (including cancer and genetic characteristics), marital status, age, sexual orientation, color, creed, pregnancy, genetic information, gender identity or expression, political affiliation or belief, military/veteran status, or any other classification protected by applicable local, state, or federal laws (each a "Protected Characteristic"), against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement. Section 8. TERMINATION AND MODIFICATION. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 9 of 15 18 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. 8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. 8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator. 8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement. 8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but are not limited to, the following: 8.6.1 Immediately terminate the Agreement; Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 10 of 15 19 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; 8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or 8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work. Section 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both Parties. 9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. 9.3 Inspection and Audit of Records. Any records or documents that Subsection 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement. Section 10. MISCELLANEOUS PROVISIONS. 10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which Consulting Services Agreement between City of Dublin and EPS 04/18/2023 For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study Page 11 of 15 20 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California. 10.3 Severabilitv. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. 10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.5 Successors and Assians. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. 10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq. Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Section 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous 12 months, Consultant warrants that it did not participate in any manner in the forming of this Agreement. Consultant understands that, if this Agreement is made in violation of California Government Code Section 1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of California Government Code Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 12 of 15 21 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 Section 1090 et seq., and, if applicable, will be disqualified from holding public office in the State of California. At City's sole discretion, Consultant may be required to file with the City a Form 700 to identify and document Consultant's economic interests, as defined and regulated by the California Fair Political Practices Commission. If Consultant is required to file a Form 700, Consultant is hereby advised to contact the Dublin City Clerk for the Form 700 and directions on how to prepare it. 10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials. 10.9 Contract Administration. This Agreement shall be administered by the City Manager ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee. 10.10 Notices. Any written notice to the Consultant shall be sent to: Economic & Planning Systems, Inc. Attn: Ashleigh Kanat, Principal 1330 Broadway, Suite 450 Oakland, CA 94612 Any written notice to City shall be sent to: City of Dublin Attn: Jason Earl 100 Civic Plaza Dublin, CA 94568 10.11 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A. B. and C represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. Exhibit A Scope of Services Exhibit B Compensation Schedule & Reimbursable Expenses Exhibit C Indemnification 10.12 Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts delivered and/or signatures executed by City -approved electronic or digital means shall have the same force and effect as the use of a manual signature. Both Parties desire this Agreement to be electronically signed in accordance with applicable federal and California law. Either Party may revoke its agreement to use electronic signatures at any time by giving notice to the other Party. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 13 of 15 22 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 10.13 Certification per Iran Contracting Act of 2010. In the event that this contract is for one million dollars ($1,000,000.00) or more, by Consultant's signature below Consultant certifies that Consultant, and any parent entities, subsidiaries, successors or subunits of Consultant are not identified on a list created pursuant to subdivision (b) of Section 2203 of the California Public Contract Code as a person engaging in investment activities in Iran as described in subdivision (a) of Section 2202.5, or as a person described in subdivision (b) of Section 2202.5 of the California Public Contract Code, as applicable. SIGNATURES ON FOLLOWING PAGE Consulting Services Agreement between City of Dublin and EPS 04/18/2023 For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study Page 14 of 15 23 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 The Parties have executed this Agreement as of the Effective Date. The persons whose signatures appear below certify that they are authorized to sign on behalf of the respective Party. CITY OF DUBLIN ,-DocuSi ned by: `.—F77A7RrFFrn44Fn ECONOMIC & PLANNING SYSTEMS, INC. DocuSigned by: PSbit4, 61/14 A47�ROF��7'l�AAG Linda Smith, City Manager Ashleigh Kanat, Principal Attest: DocuSigned by: ff,outav_ 11/1_6T& ‘.—QRR7AA15n77RdnA Marsha Moore, City Clerk Approved as to Form: ,-Doc nneeedd by: \___4r Rnp7Ffing4S'2 City Attorney 3070368.1 Consultant's DIR Registration Number (if applicable) Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Page 15 of 15 24 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 EXHIBIT A SCOPE OF SERVICES EPS recognizes the importance of a balanced and healthy housing sector to sustaining the vitality of a local economy. As an integral part of its practice, EPS provides a range of services related to housing development and policy, including the preparation of inclusionary housing and commercial linkage fee programs. Mixed -income, or inclusionary, housing ordinances have become a common tool for ensuring a diverse housing supply within a given community. EPS works with jurisdictions to develop and retool their programs to meet changing markets and performs the calculations and analysis to establish fees in lieu of building homes on site. In addition, EPS has developed numerous fee programs, based on a "nexus" analysis to support affordable housing by assessing the impact of new, nonresidential construction on growth in demand for new affordable housing. While a new (or updated) commercial linkage fee requires the preparation of a nexus study, a new or updated inclusionary housing program and associated in -lieu fees do not. EPS Work Program The following section describes the work program proposed by EPS to support the City in studying and updating inclusionary housing and commercial/housing linkage fee programs. Task 1 - Project Initiation and Ongoing Project Management EPS will participate in a project initiation kick-off meeting via phone or videoconference with City staff to discuss the Project, how the current programs are serving (or not serving) the needs of the City, and the specific objectives. EPS will use this opportunity to identify and request existing data, documents, and other pertinent information that City staff can provide. In addition, EPS will seek any recommendations that the City can provide regarding stakeholders with whom EPS should communicate. EPS will schedule a recurring check -in meeting with staff on a regular basis to facilitate communication. Task 2 — Survey of Fees in Peer Jurisdictions EPS will conduct a survey of up to five other jurisdictions in the Tri-Valley area that Dublin considers to be "peer" cities, plus a sixth Bay Area peer city, that have affordable housing inclusionary requirements, in -lieu fees on residential development, and commercial linkage fees. As a deliverable, EPS will produce a summary matrix that can be incorporated into final documents and presentations. Task 3 — Developer/Stakeholder Outreach As described in Task 1, EPS will work with City staff to identify stakeholders with whom to engage to identify potential issues of concern or priority with regard to updates to the inclusionary housing program and commercial/housing linkage fee. Such groups might include members from the local business community, commercial and residential developers that are active in the region, the Chamber of Commerce, and housing advocacy groups, with an interest in the Inclusionary Housing and commercial/housing linkage fee programs. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Exhibit A — Page 1 of 3 25 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 EPS will conduct targeted one-on-one phone or videoconference outreach to selected stakeholders who are likely to have specific technical information that can define or validate various assumptions related to market and economic conditions necessary for the analyses in Tasks 4 and 5. EPS finds that these individualized meetings are the preferred setting for stakeholders to share this type of information. Task 4 — Inclusionary Zoning and In -Lieu Fee Feasibility Study Subtask 4.1: Housing Prototypes and Inclusionary Scenarios Drawing on feedback provided at the project initiation meeting and preliminary research on local development conditions, EPS will develop a set of up to four (4) ownership and rental housing prototypes for feasibility analysis that will be vetted with City staff. Additionally, EPS will suggest a range of inclusionary requirement alternatives for feasibility testing, including the City's current requirements. The other requirements will be informed by EPS's experience developing inclusionary programs in other jurisdictions in California, as well as the survey of inclusionary programs in peer cities. Subtask 4.2: Inclusionary Zoning Economic Feasibility Analysis EPS will research the local housing market prices and development costs by housing prototype, recent construction and pipeline projects, land pricing, required developer profit, and other trends reflecting housing and real estate inputs. This research will reflect the targeted outreach to local developers identified at the project initiation meeting in order to vet these inputs. EPS will assemble a set of "static" pro forma financial models representing the identified housing prototypes, and use these models to assess the development feasibility of these prototypes under the identified inclusionary policy alternatives. The resulting profitability for each prototype under each inclusionary alternative will be compared to each other as well as to a minimum market profitability metric established through research and stakeholder input. Subtask 4.3: In -Lieu Fee Calculation As part of the pro forma analysis, EPS will calculate an in -lieu fee reflecting each inclusionary alternative, demonstrating the fee level that is equivalent to the cost to the developer of providing the inclusionary units onsite. Task 4 Deliverables: EPS will produce a Draft Inclusionary Zoning and In -Lieu Feasibility Analysis Report for review and comment by City staff. The Report will include an executive summary containing key findings; description of the technical analysis; recommendations for an inclusionary housing program; summary of research on inclusionary programs and in -lieu fees in comparable jurisdictions; and all associated tables and calculations. EPS will accept one round of comments from City staff and will incorporate these comments into a Final Report. Task 5 — Commercial Linkage Fee Nexus Study EPS will calculate updated affordable housing fees for commercial development through the preparation of a commercial linkage fee nexus analysis. The nexus (i.e., linkage) between new nonresidential development and the demand for affordable housing is derived by preparing employment density and compensation estimates of future employees for several nonresidential land use types (e.g., retail, office, industrial, lodging, etc.). New household formation resulting from new employment will be categorized by Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Exhibit A — Page 2 of 3 26 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 income category (e.g., very low, low, moderate, above -moderate) to estimate total housing demand. These calculations include consideration of local trends in household formation (e.g., average number of workers per household). The demand by land use category will be converted into a fee, on a per -building -square - foot basis, based on the affordability gap with regard to very low, low, and moderate -income household earnings and the typical cost of housing in Dublin. In comparable recent projects, the maximum nexus -supported fee generated by the industry -standard analysis has been significantly higher than jurisdictions have wished to implement. Findings from the fee survey (Task 2) can be considered along with the City's economic and community development objectives to determine an appropriate fee level. Task 5 Deliverables: EPS will produce a Draft Commercial Linkage Fee Nexus Study for review and comment by City staff. The Report will include an executive summary containing key findings; description of the technical analysis; recommendations for updated linkage fees; summary of research on linkage fee programs and fees in comparable jurisdictions; and all associated tables and calculations. EPS will accept one round of comments from City staff and will incorporate these comments into a Final Report. Task 6 — Public Presentations EPS will participate in one (1) Planning Commission Meeting and two (2) City Council Meetings. The Planning Commission Meeting and the first City Council Meeting will be used to present the preliminary findings of the Inclusionary Zoning and In -Lieu Fee Feasibility Study and the Commercial Linkage Fee Study, answer any questions from City officials, and receive direction on key policy and implementation considerations. EPS recommends that these meetings be structured as study sessions to allow for more informal discussion. The second City Council meeting may be the adoption hearing. The EPS budget assumes that these meetings will take place in person. Virtual attendance would result in cost savings. Should it be determined that additional public presentations are needed, they can be accommodated through a scope and budget amendment. Please note that we will work to roll out these two studies along the same timeline so that both go to the Planning Commission and City Council at the same time. Occasionally, one study is able to move ahead more quickly than the other. Should this circumstance arise, EPS will coordinate with City staff for the best possible outcome. Schedule EPS is available to begin work on this study immediately upon authorization to proceed and is prepared to complete the scoped work within approximately six (6) months of engagement, as outlined in the City's RFP and shown in Table 1. This schedule assumes that the required input and data from City staff is provided in a timely manner. This schedule targets a City Council adoption hearing in October, with study session -style presentations to the Planning Commission and City Council in August and September, respectively. EPS anticipates finalizing a detailed project schedule upon project initiation. Table 1 Project Schedule Task Description May June July August September October 2023 2023 2023 2023 2023 2023 '.. Task 1. Project !Mahon and Project Management KMMM M M M M M M M M Task 2 Survey of Fees in Peer Jurisdlchons Task 3 DeveloperlStakehdder Outreach .II =- Task 4: Inclusionary Zoning and In -Lieu Feasibility Study '.. Task 5 Commercial Linkage Fee News Study ==iL F Task 6 Public Presentations P P KEY:Ongoing Work ID: Draft Deliverable M Cbeck-in Meeting with Stag K' Kick-orr Meeting F: Final Deliverable P' Presentations Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Exhibit A — Page 3 of 3 27 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 Tasks EXHIBIT B COMPENSATION SCHEDULE & REIMBURSABLE EXPENSES Principal and Deputy Project Project Research Staff Direct Costs/ Grand Project Manager Manager Advisor Analyst Subtotal Reimbursables [2] Total Kanat Ren Smith Hourly Billing Rates (1] $300 $195 $325 $170 Task 1: Project Initiation and Ongoing Project Management [3] Task 2: Survey of Fees in Peer Jurisdictions Task 3: Developer/Stakeholder Outreach Task 4: Inclusionary Zoning and In - Lieu Fee Feasibility Study Task 5. Commercial Linkage Fee 25 50 4 20 $21,950 $500 $22,450 Nexus Study Task 6: Public Presentations [4] 18 30 0 3 $11,760 $120 $11,880 Total Project Budget 90 164 8 57 $71,270 $1,120 $72,390 10% Contingency $7,239 Total Budget with 10% Contingency $79,629 12 15 0 0 $6,525 $0 $6,525 2 7 0 12 $4,005 $0 $4,005 8 12 0 2 $5,080 $0 $5,080 25 50 4 20 $21,950 $500 $22,450 [1] Hourly billing rates are effective for 2023 and subject to annual revision. [2] Direct costs/reimbursables include data acquisition and staff travel. [3] Task includes one (1) virtual kick-off meeting with staff, and approximately biweekly project management meetings with the client team for duration of Study. [4] Public presentations include one (1) Planning Commission meeting and two (2) City Council meetings. Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Exhibit B — Page 1 of 1 28 DocuSign Envelope ID: F76BAA39-EE82-4CO2-A7CD-9E4BC568D4F8 Attachment 4 EXHIBIT C INDEMNIFICATION Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, elected officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, attorney's fees and costs and fees of litigation) (collectively, "Liability") of every nature arising out of or in connection with Consultant's performance of the services called for or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City. Notwithstanding the forgoing, to the extent this Agreement is a "construction contract" as defined by California Civil Code Section 2782, as may be amended from time to time, such duties of Consultant to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782. The Consultant's obligation to defend and indemnify shall not be excused because of the Consultant's inability to evaluate Liability or because the Consultant evaluates Liability and determines that the Consultant is not liable to the claimant. The Consultant must respond within 30 days to the tender of any claim for defense and indemnity by the City. If the Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due the Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until the Consultant accepts or rejects the tender of defense, whichever occurs first. 3070368.1 Consulting Services Agreement between City of Dublin and EPS For Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study 04/18/2023 Exhibit C — Page 1 of 1 29 DocuSign Envelope ID: D6939ED8-D13F-4AC2-8FF8-1CC87574C363 Attachment 5 AMENDMENT #1 TO CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND ECONOMIC AND PLANNING SYSTEMS, INC. (EPS) WHEREAS, on April 18, 2023, the City of Dublin (hereinafter referred to as "CITY") and Economic & Planning Systems (EPS) (hereinafter referred to as "CONSULTANT") entered into a Consulting Services Agreement for Inclusionary Zoning and In -Lieu Fee Feasibility Study and Commercial Linkage Fee Nexus Study services (hereinafter referred to as the "AGREEMENT"); and WHEREAS, the existing AGREEMENT will expire on December 31, 2023, and staff desires continued services; WHEREAS, the CITY and CONSULTANT now wish to amend the Agreement to extend the term through June 30, 2024, by modifying section 1.1 of the Agreement; NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the AGREEMENT is amended as follows: 1) Section 1.1 shall be rescinded in its entirety and replaced with the following: Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30. 2024, the date of completion specified in Exhibit A, and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as referenced in Section 8. Notwithstanding the foregoing this Agreement may be extended on a month to month basis for up to 6 months upon the written consent of the Consultant and the City Manager, provided that: a) sufficient funds have been appropriated for such purchase, b) the price charged by the Consultant for the provision of the services described in Exhibit A does not increase. None of the foregoing shall affect the City's right to terminate the Agreement as provided for in Section 8. 2) Except to the extent inconsistent with this First Amendment, the Parties ratify and confirm all of the terms and conditions of the AGREEMENT. 3) All requisite insurance policies to be maintained by the Consultant pursuant to the Agreement, as may have been amended from time to time, shall include coverage for the amended term, as described above. 4) The individuals executing this Amendment and the instruments referenced in it on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions of this Amendment. SIGNATURES ON THE FOLLOWING PAGE Page 1of2 30 DocuSign Envelope ID: D6939ED8-D13F-4AC2-8FF8-1CC87574C363 Attachment 5 IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the date of the City Manager's signature below. CITY OF DUBLIN By: Dated: ECONOMIC & PLANNING SYSTEMS, INC. DocuSigned by: as, By: \-4A218963A73A445 Linda Smith, City Manager Ashleigh Kanat, Principal DocuSigned by: r ATTEST : II�� ,,DocuSigned by: Ind By: VV�O11014A V 15 arsfia2 oore, City Clerk APPROVED AS TO FORM: DocuSigned by: By: Cam& A fit) —21ertS,PAttbrney Page 2 of 2 31 February 20, 2024 SB 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk's office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached documents were received in the City Clerk's office after distribution of the February 20, 2024, Regular City Council meeting agenda packet. Item 5.3 32 DUBLIN CALIFORNIA THE NEW AMERICAN BACKYARD CITY MANAGER'S OFFICE MEMORANDUM DATE: February 20, 2024 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Item 5.3: Second Amendment to the Consulting Services Agreement with Economic and Planning Systems, Inc. The February 20, 2024 City Council Meeting includes an item approving the Second Amendment to the Consulting Services Agreement Between the City of Dublin and Economic and Planning Systems, Inc.. After the agenda was posted, Staff discovered that the scope of work and budget associated with the proposed amendment was inadvertently omitted from the agenda packet. The attached scope of work should have been included as Exhibit A to Attachment 2. Additionally, the incorrect budget change form was included as Attachment 3. The correct budget change form is attached to this memo. 33 Attachment 2 - Exhibit A to the Amendment Inclusionary Housing Feasibility and Commercial Linkage Fee Nexus Study Work Program Amendment #1 At the January 9, 2024 City Council Meeting, the Council requested additional research and analysis with respect to the Inclusionary Housing Feasibility Study. Specifically, the Council requested more information about how interest rates are affecting the analysis and if lower interest rates in the future could support a higher percentage of inclusionary units. Council also wanted EPS to explore the feasibility of increasing the ownership requirement to 15 percent as well as charging higher in -lieu fees, distinguishing between single family detached homes, townhomes, and multifamily condominiums. Additionally, there was a request to evaluate how the inclusionary requirement will affect future development. No comments were received about the Commercial Linkage Fee Nexus Study. The following section describes the additional technical support tasks proposed by EPS to respond to Council direction. Scope of Work Task 1: Additional Technical Support • Fifteen (15) percent inclusionary and higher in -lieu fees. EPS will model a 15 percent inclusionary requirement on ownership developments, focusing on the single family detached prototype. EPS will evaluate the impact of a higher in -lieu fee to align with the 15% requirement. • Distinguish ownership prototypes. EPS will evaluate options for the condominium prototype, and potentially the townhome prototype, to ensure feasibility and prepare recommendations for the Council's consideration. • Interest rates. EPS will test lower interest rates and less -costly financing in the model to demonstrate the impact on the inclusionary housing recommendations. If significant, EPS will incorporate this into the model to explore implications. • Calculation of inclusionary units and fee revenue. Either for the current pipeline or for a hypothetical 100-unit project (to be discussed further with City staff), EPS will calculate the number of affordable units and the amount of in -lieu fee revenue that could be generated under the revised scenarios. Task 1 Deliverables • EPS will prepare a PowerPoint presentation summarizing the results of the additional technical support described above. Variations of the presentation will be prepared for a City Council Study Session, the Planning Commission, and the first of two City Council hearings. • EPS will revise the inclusionary housing feasibility evaluation report to reflect the preceding analysis as needed. Task 2: Public Presentations • EPS anticipates preparation for and attendance at four public meetings — a City Council study session, a Planning Commission meeting (assuming changes to the Ordinance are 34 Attachment 2 - Exhibit A to the Amendment needed), and two City Council adoption hearings. For budgeting purposes, EPS assumes three of the four will require in -person attendance. Task 2 Deliverables • Presentation at public meetings. Schedule EPS is available to begin work on this additional technical support task immediately upon Council and staff authorization to proceed. This schedule targets a City Council study session in March 2024 and Council adoption hearings by the end of the fiscal year. Budget As shown in Table 1, EPS anticipates that this scope amendment will require a budget adjustment of $19,520. EPS further recommends a 20 percent contingency on the full budget (initial authorization plus amendment) should additional analysis or additional public meetings be requested. Including the contingency, EPS is requesting a budget amendment of $37,902. EPS charges for its services on a direct -cost (hourly billing rates plus direct expenses), not -to - exceed basis; therefore, the City will be billed only for the work completed up to the authorized budget amount. The budget estimate covers all direct expenses associated with completing the tasks, including data acquisition and travel to in -person meetings. Note that EPS may redistribute the overall budget allocation among approved tasks, and/or among staff as necessary, provided that the total budget is not exceeded. Hourly rates shown are for the current calendar year and are subject to annual change. If the project is put on hold for longer than three months for any reason, EPS may need to reevaluate the proposed budget. Invoices are submitted monthly and are payable within one month of receipt. Table 1 Project Budget Tasks Principal and Deputy Project Staff Direct Costs/ Grand Project Manager Manager Subtotal Reimbursables [2] Total Kanat Ren Hourly Billing Rates [1] $315 $205 Task 1: Additional Technical Support [2] 15 27 $10,260 $0 $10,260 Task 2: Public Presentations [3] 16 20 $9,140 $120 $9,260 Total Project Budget 20% Contingency [4] Total Budget with 20% Contingency 31 47 $19,400 $120 $19,520 $18,382 $37,902 [1] Hourly billing rates are effective for 2024 and subject to annual revision. [2] Task includes check -ins with City staff, modelling higher inclusionary requirements and in -lieu fees, interest rate sensitivity testing, and calculation of affordable unit and fee revenue outcomes under new scenarios. [3] Public presentations include one (1) City Council study session, one (1) Planning Commission meeting, and two (2) City Council adoption hearings. [4] Contingency is calculated on the overall contract, including the project's initial budget authorization of $72,390. 35 Attachment 3 CITY OF DUBLIN FISCAL YEAR 2023-24 BUDGET CHANGE FORM Budget Change Reference #: City Council's Approval Required From Un-Appropriated Reserves From Designated Reserves DECREASE BUDGET AMOUNT Budget Transfer Between Funds Other INCREASE BUDGET AMOUNT Account Amount Account Amount Affordable Housing Fund - Affordable Housing - Professional Services 29018100.65101 $37,902 REASON FOR BUDGET CHANGE Budget increase to cover the costs associated with the revised scope of work for the Consulting Services Agreement with EPS as per City Council direction on January 9, 2024. Funding will come from the Affordable Housing Fund Balance. As Presented at the City Council Meeting 2/20/2024 **********Finance Use Only********** Posted By: Date: 36