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CONTRACT 6067 Professional Services Agreement CLOSEDAgreement No. 6067 Agreement No. PROFESSIONAL SERVICES AGREEMENT P BETWEEN THE CITY OF EL SEGUNDO AND ECONOMIC AND PLANNING SYSTEMS, INC. This AGREEMENT is made and entered into this 19th day of April , 2021, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and ECONOMIC AND PLANNING SYSTEMS, INC., a California corporation ("CONSULTANT"). The parties agree as follows: 1. CONSIDERATION. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed Forty -Four Thousand Nine Hundred Thirty dollars ($44,930.00) for CONSULTANT's services. CONSULTANT acknowledges that it will be paid by funds received by the CITY from a planning grant for the completion of the Inclusionary Housing Ordinance for which CONSULTANT performs services on behalf of the CITY. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit "A," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "B") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month, and cumulative invoiced actual expenditures to date. If the CITY agrees with all of the information listed in the invoice, CITY will then pay CONSULTANT within net 45 days from Pagel of 11 Agreement No. 6067 Agreement No. receipt of the invoice. 4. POLITICAL REFORM ACT. CONSULTANT agrees that it will be considered a public official subject to the Political Reform Act of 1974 for purposes of this Agreement. CONSULTANT agrees and warrants that it has no financial interests which may be materially affected by the project for which the Initial Study, as specified in the SERVICES, is being prepared. Such financial interests may include, without limitation, interests in business entities, real property, or sources of income exceeding $500 received within the past year. CONSULTANT further warrants that, before executing this Agreement, it reviewed the Political Reform Act of 1974 and the Fair Political Practices Commission regulations, including, without limitation, Chapter 7 of Title 2 of the California Administrative Code, Section 18700, et seq., in order to determine whether any conflict of interest would require CONSULTANT to refrain from performing the SERVICES or in any way attempting to use its official position to influence the governmental decisions underlying the subject project(s). 5. FAMILIARITY WITH WORK. By executing this Agreement, CONSULTANT agrees that it has: Thoroughly investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. 6. KEY PERSONNEL. A. CONSULTANT's key personnel assigned to perform work under this Agreement and their level of responsibility are as follows but is not limited to: - Darin Smith, Principal -in -Charge - Julie Cooper, Project Manager - Jake Cranor, Technical Analyst B. The resume of each of the individuals identified in this Section are attached to this Agreement, collectively, as Exhibit C, and incorporated by reference. C. In the event CITY objects to the continued involvement with this Agreement by any of the persons listed in this Section, CONSULTANT agrees that it will replace such persons with individuals that are agreed to by CITY. 7. PROJECT COORDINATION AND SUPERVISION. Paul Samaras, AICP will be assigned as Project Manager and will personally supervise or perform the technical execution of the Project on a day-to-day basis on behalf of CITY and will maintain direct communication with CONSULTANT's Project Manager. Paul Samaras, AICP will be responsible for general oversight, negotiations, and Page 2 of 11 Agreement No. 6067 Agreement No. contractual matters. 8. TERM. The term of this Agreement will start on the Effective Date and end on December 31, 2022. If the term of this Agreement is extended beyond December 31, 2022, CONSULTANT reserves the right to negotiate the hourly rates outlined in Exhibit "B." Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A"; B. Termination as stated in Section 15. 9. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 22 of this Agreement; and CITY gives CONSULTANT a written notice to proceed,. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 10. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs in the delivery of milestone work products, CONSULTANT must notify the City's Project Manager within forty-eight (48) hours, in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The City's Project Manager will extend the completion time, when appropriate, for the completion of the contracted services. 11. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 12. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. Page 3 of 11 Agreement No. 6067 Agreement No. 14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 15. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT's own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 16. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by Page 4 of 11 Agreement No. 6067 Agreement No. CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 18. INDEMNIFICATION. A. CONSULTANT agrees to the following: Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement orotherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 22, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 19. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. Page 5 of 11 Agreement No. 6067 Agreement No. 20. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which it is performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 21. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 22. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Limits Commercial general liability: $2,000,000 Professional Liability $1,000,000 Business automobile liability $1,000,000 Workers compensation Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of the most recent ISO-CGL Form. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon 30 days prior written notice to CITY. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of 3 years after this Agreement expires or is terminated. Such insurance Page 6 of 11 Agreement No. 6067 Agreement No. will have the same coverage and limitsas the policy that was in effect during the term of this Agreement and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 15. G. CONSULTANT agrees to waive all rights of subrogation against the CITY and its officers, officials, employees, agents, representatives, and certified volunteers for losses arising from work performed by CONSULTANT under the terms of this Agreement. 23. USE OF CONSULTANT. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 24. INCIDENTAL TASKS. CONSULTANT will meet or will participate in conference calls with CITY on an as -needed basis to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the anticipated work to be done before the next schedule update. 25. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CITY - El Segundo Comm. Dev 350 Main St. El Segundo, CA 90245 Page 7 of 11 If to CONSULTANT: Dept. Economic and Planning Systems, Inc. 1330 Broadway, Suite 4502 Oakland, CA 94612 Agreement No. 6067 Attention: Paul Samaras, Principal Planner Phone: 310-524-2340 Email: psamaras@elsegundo.org Agreement No. Attention: Mr. Darin Smith Phone: 510-626-8437 Email: dsmith@epsys.com Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 26. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 27. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 28. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 29. INTERPRETATION. This Agreement was drafted in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 30. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 31. ENTIRE AGREEMENT. This Agreement, and its Exhibit(s), sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 32. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency Page 8 of 11 Agreement No. 6067 Agreement No. between the Exhibits will be resolved in the order in which the Exhibits appear below: Exhibit: A: Scope of Work. Exhibit. B: Budget / Price Quote Exhibit: C: Resumes 33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 35. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. 36. ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents tobe entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic (pdf) or facsimile transmission. Such electronic or facsimile signature will be treated in all respects as having the same effect as an original signature. 37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 38. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 39. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency. Page 9 of 11 Agreement No. 6067 [Signatures on next page] Page 10 of 11 Agreement No. Agreement No. 6067 Agreement No. IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first hereinabove written. CITY OF EL SEGUNDO SdVott Mitnick, City Manager X TE for Tracy Weaver, City Clerk for Mark D. Hensley, City Attorney Page 11 of 11 ECONOMIC AND PLANNING SYSTEMS, INC. bdfin Smith Managing Principal/Secretary Taxpayer ID No. 94-3056856 Agreement No. 6067 Exhibit A A a U-no 4=1 Agreement No. 6067 7'1Mh 1,,�6PTd 4AI�tF, tl'I( LrdBM d/ ( .^ff, Proposal El Segundo Inclusionary Housing Ordinance (PBS 20-03) Prepared for: City of El Segundo Prepared by: Economic & Planning Systems, Inc. (EPS) Economic & Planning Systems, Inc. 949 South Hope Street, Suite 103 Los Angeles, CA 90015-1454 January 11, 2021 213 489 3838 tel Oakland Sacramento Denver EPS #204048 Los Angeles www.epsys.com Agreement No. 6067 Table of Contents CoverLetter.......,.»....».,..,» ............ .»........ »,......... --...... ....... .......... .»».,.,......... ......... ,.»1 1. Qualifications — ........... »............ .......».,,..,...—......,....,.....»,.,.................»......,.,.......3 2. Project Approach and Team ............................................... ........................— ..9 3. References ....... ................,..,...,.....,...,.,..........».,................,., ...., ,....................17 Appendix A: Staff Resumes Agreement No. 6067 Cover Letter January 11, 2021 Paul Samaras, Principal Planner El Segundo Planning and Building Safety Dept. 350 Main Street El Segundo, California 90245 Subject: Proposal to Develop an Inclusionary Housing Ordinance for the City of El Segundo (PBS 20-03); EPS #204048 Dear Paul Samaras: Economic & Planning Systems, Inc. (EPS) is pleased to submit this proposal to analyze and develop an inclusionary housing program for the City of El Segundo. EPS understands that the City is seeking this study effort to address a shortage in local affordable housing supply as part of its 61h Cycle Housing Element. Founded in 1983, EPS is a land use economics consulting firm with offices in Los Angeles, Oakland, Sacramento, and Denver. EPS's practice is at the forefront of evolving affordable housing policy. We have developed a robust technical and analytical framework for evaluating the demands for affordable housing, and our broader practice in housing and residential real estate development allows us to ensure that inclusionary housing policies are effectively integrated with other financing mechanisms and resources. EPS also applies understanding of real estate economics and land use planning to ensure housing policies and related zoning requirements effectively balance the requirement for meeting the area's housing needs with the feasibility of new development. EPS has produced studies and ordinances for inclusionary housing in many California jurisdictions for more than 30 years. Economic& Planning Systems, Inc. During the past several years, EPS has prepared studies related 400 Capitol Mall, 28tn Floor to affordable housing for in the cities of Culver City, Burbank, Sacramento, CA 95814 San Clemente, Mountain View, San Mateo, Walnut Creek, 916 649 8010 tel 916 6492070 fax Healdsburg, Petaluma, and Rohnert Park, as well as Los Angeles, Sonoma, and Mono Counties. EPS is therefore well positioned to Oakland provide the City of El Segundo with the services requested. Sacramento Denver Los Angeles www.epsys.com Agreement No. 6067 Paul Samaras January 11, 2021 Page 2 The following proposal contains EPS's proposed work program, schedule, and budget, as well as more information on the firm's experience and staff expertise. As a Managing Principal of EPS, I will act as the primary contact for the proposal review process and am authorized to contractually obligate the organization and negotiate on behalf of the organization. We have reviewed the terms and conditions prescribed by the RFP and Sample Agreement and have no exceptions to them. Should EPS be engaged for this project, I will manage this project, along with EPS Vice President Julie Cooper, who is located in EPS's Los Angeles office. Our contact information is as follows: Darin Smith Julie Cooper 1330 Broadway, Suite 450 949 South Hope Street, Suite 103 Oakland, CA 94612 Los Angeles, CA 90015 (510)841-9190 (213)489-3808 dsmith@!gpsys.com .c o er e s s.conn EPS is enthusiastic about working for the City of El Segundo and happy to address additional questions you may have and modifications to the scope of work and budget that better suit your needs. I look forward to hearing from you. Sincerely, ECONOMIC & PLANNING SYSTEMS, INC. (EPS) f I w.. A o, Darin Smith Managing Principal Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) 1. Qualifications About EPS EPS is a land economics consulting firm experienced in the full spectrum of services related to real estate development, economic and market analysis, public/private partnerships, and the financing of government services and public infrastructure. Since 1983, EPS has provided consulting services to hundreds of public and private sector clients in California and throughout the United States. Clients include cities, counties, special districts, multi -jurisdictional authorities, property owners, developers, financial institutions, and land use attorneys. EPS applies a multi -disciplinary approach to our work, engaging policy issues against the backdrop of fiscal, economic, land use, and public finance opportunities and constraints. Our areas of expertise include the following: Housing Policy Analysis Public Finance and Development Impact Fees • Fiscal Impact Analysis • Economic Impact Analysis Development Negotiations Support Land Use Planning and Growth Management 0 Real Estate Market and Feasibility Analysis Regional Economics and Industry Analysis EPS is a California'S' Corporation. EPS is headquartered in Oakland, California, with additional offices in Los Angeles and Sacramento, California, and Denver, Colorado. Oakland, California Opened: 1983 Address: One Kaiser Plaza, Suite 1410 Oakland, CA 94612 (510)841-9190 Sacramento, California Opened: 1989 Address: 400 Capitol Mall, 28th Floor Sacramento, CA 95814 (916) 649-8010 Los Angeles, California Opened: 2011 Address: 949 South Hope Street, Suite 103 Los Angeles, CA 90015 (213) 489-3838 Denver, Colorado Opened: 1999 Address: 730 17th Street, Suite 630 Denver, CO 80202 (303)623-3557 EPS provides a variety of services related to the formulation of affordable housing policies and programs. These include inclusionary housing ordinances and in -lieu fees, nexus studies to support affordable housing impact fees on residential and nonresidential development, feasibility analyses and program design for specific development projects' incorporation of affordable units, preparation of Housing Elements, and comprehensive Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) housing strategies and policies leveraging a wide variety of funding and regulatory mechanisms. We understand that affordable housing requirements on new development represent a constraint as well as an opportunity and seek to craft viable balanced solutions that represent equitable and sustainable solutions to communities' affordable housing needs. Selected Relevant Experience As an integral part of its practice, EPS provides a range of services related to housing development and policy. EPS's clients for housing analyses include both public- and private -sector organizations, reflective of EPS's commitment to objective economic analysis of policies and projects. Among its areas of expertise in housing policy, EPS works with jurisdictions to develop and retool their inclusionary housing programs to meet changing markets, including the calculations and analysis to establish nexus -based and/or in -lieu fees. EPS has provided services related to this solicitation to California jurisdictions for over 30 years. Experience Involving Financial Analysis, Housing Policy, and Community Outreach on Behalf of Local California Jurisdictions San Clemente Inclusionary Housing Ordinance Update and Fee Study The City of San Clemente has several different affordable housing policies that are inconsistent with one another. For example, the General Plan indicates that the City should have a 15 percent inclusionary requirement, while the zoning ordinance requires 4 percent inclusionary units. In addition, the City has adopted an in -lieu fee that calculates a developer's obligation in one way, but in practice the City has allowed developers to pay fees calculated differently. In 2019, EPS was selected to assist the City to reconcile these differences and adopt a unified approach to inclusionary requirements. EPS has worked with City staff to review the inclusionary programs of area jurisdictions, and to explore the feasibility implications of different inclusionary requirements and in - lieu fee methodologies. EPS's calculations have involved different affordability requirements as they might be applied to different types of housing developments (e.g., product types, densities, and tenures). As part of this work, EPS is conducting individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives are understood, and the underlying cost and revenue assumptions are properly vetted. EPS's work is ongoing and has included two study session presentations to the Planning Commission and City Council thus far. San Clemente staff expects to take the updated inclusionary ordinance and fees to Council in early 2021. San Mateo Inclusionary Housing Ordinance Update and Fee Study For over 15 years, EPS has conducted numerous studies for the City of San Mateo regarding affordable housing, including a broad strategy for increasing housing 4 Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) production, negotiation support for development projects, and most recently an update to the City's inclusionary housing ordinance. The City had long allowed developers to choose whether to provide 15 percent of units at one income level, or 10 percent of units at a lower income level. For -sale projects provided affordable units at higher price points than rental projects. The City was interested in updating their policies and practices to better address their growing need for affordable housing. EPS's calculations involved different affordability requirements as they might be applied to different types of housing developments (product types, densities, and tenures) to understand the feasibility implications of the variations. One interesting aspect of this work was the incorporation of analysis regarding the impact of the State's density bonus mandates on development feasibility. EPS also conducted individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives were understood, the underlying cost and revenue assumptions were properly vetted, and staff's recommendations were previewed before going to Council. These communications also sought developer input regarding the types and scale of various City incentives that might offset any increased inclusionary housing burden. San Mateo adopted the inclusionary ordinance update and related in -lieu fees in 2020. Mountain View Inclusionary Housing Ordinance Update and Fee Study The City of Mountain View has faced extreme housing pressures as a major employment center in Silicon Valley. EPS was retained by the City to assist with updating the inclusionary housing ordinance to better reflect contemporary development economics as well as evolving policy considerations. In Mountain View's case, the City was interested in encouraging a diversity of housing pricing within their inclusionary units, rather than a single income level (for example, all affordable units at 50 percent of AMI). EPS worked with City staff to understand the economic conditions they hoped to address with the updated policy and calculated a variety of ways to amend the policy accordingly. The calculations involved different affordability requirements as they might be applied to different types of housing developments (product types, densities, and tenures) to understand the feasibility implications of the variations. EPS also conducted individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives were understood, the underlying cost and revenue assumptions were properly vetted, and staff's recommendations were previewed before going to Council. Mountain View adopted the inclusionary ordinance update and related in -lieu fees in 2019. After that effort, the City has retained EPS to assist in understanding the impacts of SB 330 and how variations in the City's zoning and rent stabilization ordinances may affect future development opportunities. Culver City Affordable Housing Commercial Linkage Fee Study The City of Culver City has engaged EPS to study the adoption of a commercial linkage fee on new nonresidential development. A commercial linkage fee, also known as a jobs - housing linkage fee, is a type of impact fee charged to developers of new nonresidential properties to help support affordable housing for new workers. The conceptual underpinning of the fee is that new nonresidential development creates new jobs, and some of these jobs will pay wages below what is required for a worker to afford a market -rate housing unit in the city. In addition to performing the linkage fee study, EPS Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) put together a set of responses to frequently asked questions for the City to post on its website. EPS also held a virtual town hall to explain the process of calculating the fee to stakeholders and members of the general public and is conducting a series of workshops with Council subcommittees. City staff expects that the fee and the related ordinance will be on the Council agenda in Spring 2021. Petaluma Housing Fee Studies Given adoption of the 2015-2023 Housing Element, as well as several changes in local housing supply, regional housing needs, and broader economic and housing trends, the City of Petaluma wanted to re -affirm the need for and update the affordable housing impact fee for new residential and nonresidential development. As part of an overall update of the City of Petaluma's affordable housing policies and fees, EPS was retained by the City to update the City's inclusionary housing in -lieu fee for ownership residential projects and the City's commercial linkage fee. In addition, EPS prepared nexus -based impact fees for rental housing and ownership housing. After preparing detailed memorandums, EPS then attended and supported City staff at meetings, presentations, and public hearings, resulting in the adoption of updated fees in 2018. Walnut Creek Affordable Housing Impact Fees The City of Walnut Creek had an inclusionary housing policy and commercial linkage fee program that had not been updated for an extended period. EPS was retained to conduct new analysis to determine updated fee levels that reflected contemporary economic conditions. Beyond a mere mathematical update, the City's leadership was particularly interested in understanding how changes to their housing -related fees would affect development feasibility, as well as yield financial resources to advance their affordable housing goals. Through extensive stakeholder outreach and public meetings, EPS explored these issues including an analysis of the City's overall development fee burdens (inclusive of fees for transportation, open space, etc.), a comparison among other jurisdictions, and an assessment of the effect of fees on project feasibility. EPS also provided a literature review regarding the impact of inclusionary housing programs on overall housing production and affordability, as well as case studies of alternatives to development fees that could be pursued to fund affordable housing, such as local housing bonds, that could distribute the financial impact rather than relying on new construction to generate housing funds. The City adopted fees based on EPS's analysis in 2017. Downtown Fontana Housing Development Guide As part of the administration of its SB2 Planning Grant Award, the City of Fontana is attempting to expedite and streamline approvals for housing permit processing and approval. This entails the review and modification of the City's Downtown Area Plan, Form -Based Code, and General Plan Land Use policies in order to facilitate non - discretionary permitting of housing development within the Downtown Area. The City hopes that this process will create a "Master -Planned" area within the core of the city that will designate and rezone properties that will provide for additional housing capacity. EPS is working as part of a consortium to conduct this review and is responsible for modeling the feasibility of housing prototypes allowed for under the City's current form -based code. EPS is also analyzing the City's fee reduction and exemption guidelines relative to those n Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) of nearby cities to determine their impact on housing production in Downtown Fontana, as well as identifying and proposing amendments to the elements of the City's code that affects housing density. Los Angeles County Displacement Mitigation Nexus Study The County of Los Angeles Board of Supervisors adopted a resolution to discourage displacement of economically vulnerable populations, including through a "no net loss" policy regarding existing income -restricted or naturally occurring affordable housing. Following that County resolution, the State of California passed SB 330, requiring that such affordable housing units must be replaced if demolished or otherwise lost to development activity or reinvestment. The County retained EPS to conduct a nexus study exploring the net cost of replacing any applicable units, by comparing the costs of new construction for replacement units to their value as income -restricted units. Working with County staff, EPS identified six different submarkets of the County, each of which had different economic and physical characteristics, and created pro formas for replacement construction that corresponded to those localized conditions including different building types, unit mixes, and land and construction costs. EPS calculated a nexus -based fee that the County could conceivably charge to developments that displaced such affordable units, whether through reinvestment to raise rents to market rates, conversion to condominiums, or demolition and replacement with new market -rate units. EPS also tested the feasibility of the replacement requirements against the economics of different types of potential projects and determined that the cost of required replacement was likely to be a significant deterrent to the loss of existing affordable housing. The fee calculations and feasibility analysis were presented to the County Board of Supervisors and adopted in November 2020. Inclusionary Housing Ordinances and Fee Studies Mountain View, San Mateo, Healdsburg, Laguna Beach, San Bruno, Newport Beach, Larkspur, Santa Rosa, Gilroy, Rohnert Park, Petaluma, Sonoma and Mono counties, and other California jurisdictions EPS has conducted numerous studies regarding inclusionary housing requirements and fees throughout California and in other states. In some cases, these studies have been limited to the calculation of a fee in lieu of a developer's obligation to provide affordable units under a pre-existing inclusionary ordinance. In other cases, EPS has helped to create or refine the actual inclusionary ordinances themselves, establishing levels of affordable housing requirements that appropriately reflect local housing needs as well as feasibility constraints, and identifying acceptable alternative means of compliance with the requirements and processes for evaluation and implementation. In most instances, this work has involved outreach with development industry stakeholders to work through financial feasibility issues as well as procedural recommendations. Affordable Housing Residential Nexus Studies Mountain View, San Mateo, Sunnyvale, Pleasanton, Palm Desert, Walnut Creek, Santa Rosa, Petaluma, Rohnert Park, and Sonoma County Many California jurisdictions have adopted inclusionary housing policies and ordinances requiring developers of new housing projects to provide a proportion of new units as Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) "affordable" to households at targeted income levels, or else pay a fee in -lieu of providing such units. Before AB 1505, several legal challenges affected the implementation of these long-standing programs, and different communities had different responses to these challenges. One common response was to conduct nexus studies to establish the relationship between the addition of households in new market -rate housing and growth in demand for affordable housing. EPS has been retained by several jurisdictions to provide technical analysis demonstrating the relationship between household spending and job creation, and the affordable housing needs associated with those new jobs. After establishing this relationship based on local economic factors, EPS has calculated an impact fee that can be used to subsidize the construction of new units for lower -income worker households. In addition, EPS typically conducts analysis demonstrating the feasibility impacts of the potential fees on new housing development, so that jurisdictions can select a fee level that will enhance rather than thwart their larger housing objectives. This analysis has been conducted for both for -sale and rental housing. The levels of effort for these assignments has ranged from simply providing the technical nexus analysis to conducting surveys of comparable jurisdictions' programs and extensive feasibility testing of alternative fee levels to assistance or leadership in drafting ordinance language and implementation guidelines. In each case, public outreach was conducted during the analysis as well as during the policy discussion that followed. EPS has engaged with local housing developers and housing advocates during these analyses and in most cases has presented our findings to boards and elected officials. We have also engaged in discussions with building industry advocacy groups (and their consultants) and attorneys representing the Cities. In several cases, building industry stakeholders have commissioned peer reviews of EPS's technical work by land use economists, and EPS has publicly addressed the findings thereof to the satisfaction of our clients and elected officials. Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) 2. Project Approach and Team Proposed Approach and Work Program In recent years, many communities throughout California, including El Segundo, have seen increased housing demand push average rents and home prices beyond the level that median -income households can afford. Over time, rising housing costs force many households to move away from their traditional homes and places of employment. The lack of access to affordable housing affects all sectors of society and is a problem for a wide range of workers including those in service -sector jobs and government employees. When large sectors of the workforce leave an area in search of more affordable housing, a combination of outcomes can occur: a palpable shortage of labor and/or increased traffic and pollution problems as workers commute long distances to their jobs. As quality -of -life measures decline, new industries may be deterred from moving to the area and existing businesses may decide to relocate, recognizing that they are not able to attract the labor they need. The availability of a range of housing options affordable to a range of income levels is essential to sustaining our communities and must be addressed at both the regional and local levels. Without strategies to maintain housing options and affordability, the economic opportunities and quality -of -life aspects that originally led to high housing demand and high property values may be lost. At the same time, it is critical that these strategies are aligned with the realities of development economics and are sensitive to the pressures facing new housing developments, including rising land, labor, and materials costs. The most successful strategies for building and maintaining an affordable housing supply are those that find balance between these forces. The following Work Program describes the Scope of Work proposed by EPS to support the City in considering the adoption of an inclusionary housing program. Given the iterative nature of this planning process, and the variety of technical issues that may arise, various elements of this Work Program may need to be updated as the process unfolds. Task 1 - Project Initiation Kick-off Meeting with Primary Team Members EPS will participate in a project initiation kick-off meeting with City staff to discuss the context of the Project and the specific objectives. The primary goal of this meeting is to finalize the scope, including the methodology, deliverables, project schedule, and other project related issues. EPS will use this opportunity to identify and request existing data, documents, and other pertinent information that City staff can provide. EPS will also review existing housing legislation, relevant sections of the Housing Element, and other guidelines before the meeting, in order to facilitate a discussion with staff about the current context, existing implementation, and the City's goals for affordable housing development. The program's Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) consistency with evolving State law will also be discussed, including the density bonus law and other factors. In addition, EPS will seek any recommendations that the City can provide regarding stakeholders with whom EPS should communicate, such as locally active developers, landowners, advocacy groups, etc. Deliverables: Meeting Agenda and Notes; Data Request List, Project Timeline Task 2 — Community Engagement Plan During the project kick-off stage, EPS will also work with the City to identify the appropriate target groups of stakeholders with whom to engage in order to both identify potential issues of concern or priority with regard to inclusionary housing, as well as to validate various assumptions necessary for the analyses in Task 3. Such groups might include members from the local business community, commercial and residential developers that are active in El Segundo, the Chamber of Commerce, housing advocate groups, and members of the general public with an interest in the Inclusionary Housing Ordinance. Once EPS and the City staff have identified target groups of such stakeholders, the City and EPS will coordinate up to five (5) virtual stakeholder workshops. While we intend to work closely with City staff to design an optimal engagement plan, past EPS experience suggests that the initial engagement plan should include an early meeting with as broad an audience as possible, to introduce the reasons the study is being pursued (i.e., the City's policy direction to staff and how it relates to State policy), as well as data regarding housing demand (from Task 3.2 below) and related policies in comparable jurisdictions (from Task 3.3). This initial meeting will thus set the stage for the technical analysis still to come but will not focus on the details of pro formas. EPS will then engage specific stakeholders on an informal basis to vet assumptions required for the pro formas. Once the Task 3.4 feasibility analysis is complete, EPS will conduct three workshops with (a) market -rate residential developers, (b) affordable housing providers and advocates, and (c) broader members of El Segundo's residential and business communities. At these workshops, EPS will present the findings of the feasibility analysis and its policy implications and solicit feedback regarding technical work and policy preferences. EPS will then conduct a fifth and final stakeholder workshop for all interested parties that summarizes the content and feedback received from workshops 1 through 4 and discusses policy recommendations pursuant to Task 4. For each of these workshops, EPS anticipates that City staff will participate but not lead the discussion, and that elected officials will be invited to attend as their interests and schedules allow. During the implementation of the focus groups, EPS will consider the impact of the COVID-19 pandemic and the need for virtual meetings, and coordinate with community leaders to ensure the identified groups of stakeholders have access to these virtual events. Deliverables: Community Engagement Plan with marketing plan, techniques, stakeholder groups, and draft timeline of meeting dates 10 Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) Task 3 - Conduct Economic Feasibility Study Task .1 Establish Methodol _ Using our past inclusionary housing studies as a guide and providing samples for staff review, EPS will share our intended methodology with City staff to ensure comfort and acceptance of our approach. In general, the methodology can be described as follows: 1. Understand the local housing market and development economics - review market data independently and with both staff and stakeholder input to generate robust assumptions regarding product types, development costs, and market values 2. Assess demand for lower -income housing - using Census -based data, RHNA targets, jobs -housing balance indicators, and other resources as appropriate, explore both the quantity and characteristics of housing demand for lower -income households 3. Define a finite number of inclusionary options for exploration - review El Segundo's policy direction as well as best practices in comparable jurisdictions to determine the general scale and characteristics of potential inclusionary requirements (EPS acknowledges the RFPs indication that such parameters may range from 10 to 20 percent of units and reflect income distributions consistent with RHNA) 4. Test the feasibility implications of inclusionary options - prepare pro forma analysis reflecting different mixes of market -rate and affordable housing for different residential prototypes (single-family vs. multifamily, rental vs. for -sale, etc.), and see how the inclusionary requirements and related incentives such as State -mandated density bonus affect feasibility as measured through profit indicators and/or residual land values Through this methodology, the analysis can help the City to understand the following issues, at a minimum: What are the basic economics of housing development in El Segundo without any affordability requirements? What are the maximum requirements (both in income targets and percentage requirements) that can be required while still achieving financial feasibility? 0 Do the potential requirements differ between development prototypes or based on whether affordable units are provided on -site vs. through in -lieu fees? How might the allowance of an inclusionary housing in -lieu fee affect housing production and the financial feasibility of projects? Jggk. .2 Identi' l come Tar ens Inclusionary ordinances generally require a certain proportion of units in an otherwise market -rate housing development to be offered at below -market -rate prices. Typically, the income levels at which the units should be affordable are prescribed in the ordinance and may vary based on the nature of the development (for -sale vs. rental, single-family 11 Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) vs. multifamily, etc.). The City's RFP indicates an interest in exploring requirements at 10, 15, and 20 percent of units, with the incomes distributed according to the City's 61h cycle RHNA targets. EPS will conduct some high-level analysis of existing and prospective housing demand by income level in El Segundo to assess how the RHNA- based income distribution reflects local demand indicators, which may or may not comport with regional policy objectives. For example, we will explore Census data regarding the income distribution of existing El Segundo households, the income characteristics associated with the expansive employment base in the City, and the prospect for still more employment under the City's buildout plans and how such employment and related incomes may differ from the current base. Based on similar experience in other California communities, EPS will also provide initial insights regarding how the potential mix of income levels affect project feasibility - for instance, through the application of density bonus - and program implementation - for instance, any challenges to selling units to Very Low -Income households or renting units at Moderate Income pricing. EPS will also reference the surveys we shall conduct under Task 3.3 exploring inclusionary requirements in other communities to see how an El Segundo inclusionary requirement may compare with practices in those other jurisdictions. Based on this information, EPS will work with staff to define an initial set of inclusionary housing parameters for further study. Task 3.3 Conduct Comoarati_ a Analysis of Inclusionamt Policies To gain a comprehensive understanding of how comparable cities approach inclusionary housing, EPS will conduct a survey of up to 12 other jurisdictions in the County and region that have employed Inclusionary Housing Ordinances in order to achieve their affordable housing goals. The survey will include the current inclusionary requirements, as well as any fee amounts by housing type, and implementation considerations such as distinctions or exemptions by project size or type. EPS will work with City staff to identify an appropriate set of comparable cities to analyze for this subtask. EPS considers this contextual understanding to be highly valuable and informative to the overall evaluation. EPS will be able to leverage material from comparable work for other Southern California clients, allowing for an efficient work product that will serve to enhance the policy discussion as well as the final ordinance. As deliverables, EPS will produce a draft and final version of this comparative review. For a comprehensive view of the impact of the affordability requirements, EPS will work with staff to identify several prototypes reflecting observable or expected market trends in El Segundo, including rental and ownership residential development. For at least three prototypes, EPS will work with City staff to define the basic parameters, such as heights, densities, unit sizes, parking ratios, setbacks, etc. During this task, EPS will also confirm information regarding market conditions for housing in and around El Segundo. Trends will be documented, including residential market values, land prices, development costs, and similar factors. EPS will also assess the City's current development pipeline and the supply of developable land, as data is available from the City's General Plan or other 12 Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) sources. This information will help EPS, stakeholders, and City policymakers understand the current and future context in which the Inclusionary Ordinance is likely to take effect. The prototypes will be shared and discussed with City staff to arrive at a final set of assumptions for the pro forma analyses. EPS will then develop static pro forma models to test the financial feasibility of varying rental and ownership inclusionary requirements as informed by the results of Tasks 3.2 and 3.3. For each prototype and inclusionary option, EPS will estimate the costs and values of construction as well as revenues using published data sources and estimate the expected financial returns and/or residual land values under each scenario. As applicable, EPS will model the influence of State -mandated density bonus under each scenario, including how the bonus affects the number of achievable market -rate units, the costs of land and construction per unit, and the overall financial returns to the developer. The financial returns will be compared to one another, as well as to contemporary industry standards for investment or transaction data, to assess the feasibility of each scenario. EPS will initially develop the pro formas and will share the assumptions and results with City staff. Following that initial review and with assistance from the City to identify appropriate participants, EPS will solicit feedback from for -profit and nonprofit developers to generate consensus regarding the basic project economics. This consensus will be a critical factor in subsequent analysis of the feasibility of various affordable housing requirements. In addition, EPS will calculate an in -lieu fee reflecting each inclusionary alternative and illustrate and compare the returns for a project that pays the fees (and thus is not entitled to a density bonus) versus projects that provide on -site units and can benefit from the density bonus. EPS acknowledges that the City's RFP references a "nexus study" to illustrate the proportionality of the fees to a project's impact on affordable housing needs. EPS has ample experience conducting such nexus studies in the "post - Palmer" era and can apply our nexus approach for El Segundo. This approach involves an estimate of the spending new market -rate housing residents will generate and the number and incomes of various jobs supported by that spending, leading to an estimate of the amount of subsidy required to support the construction of housing affordable to new lower -income workers. Our budget proposal reflects this expectation, but we are interested to discuss with staff and the City Attorney whether an alternative approach may be equally valid that is less time -intensive and therefore costly. EPS will also explore with City staff any local incentives that might be offered to projects meeting inclusionary standards, such as fee waivers, expedited processing, parking reductions, or local add-ons to State density bonus provisions. To the extent that the financial implications of such incentives can be estimated, EPS will illustrate such implications through the feasibility analysis. The results of this initial feasibility testing will be shared with City staff for review and comment. Following the guidance of City staff, EPS will conduct sensitivity testing on the results of variations to inclusionary housing program factors including the percentage of units, income levels, potential in -lieu fees, and other inputs, including an assessment of 13 Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) the influence of these factors on the feasibility of different housing prototypes. This analysis will allow the City to understand the interplay and limits of various program parameters. Deliverables: Economic Feasibility Study Task 4 - Recommendations for Inclusionary Ordinance Based on the findings of the feasibility study, as well as feedback received from City staff and stakeholders through engagements described in Task 6, EPS will develop recommendations for inclusionary housing requirements for the City to adopt, as well as recommended implementation measures for an inclusionary housing program. Examples of program considerations include the following, without limitation: • Total percentages of affordable units required, and percentages by income level • Potential distinctions between rental and for -sale requirements, and/or between product types (e.g., multifamily vs. townhomes vs. single-family detached) • The size of projects subject to the inclusionary requirements (e.g., only projects with 10+ units?) • The characteristics of projects that may pay an in -lieu fee vs. having to provide units • The application of an in -lieu fee on a per -unit or per -square -foot basis, or some other basis such as the market value of the unit • Incentives the City may wish to voluntarily offer to projects meeting or exceeding inclusionary standards • The phasing in of the program, such as whether projects submitted to the City by a certain date will be exempt Deliverables: Policy and Methodology Recommendations Memorandum Task 5 - Preparation of the Inclusionary Housing Ordinance - OPTIONAL If the City decides to move forward with this optional task, EPS will work with City staff and City attorneys to develop a draft ordinance that includes program structure, income targets, set -aside requirements, alternatives for on -site inclusionary housing fulfillment, developer incentives, monitoring, and evaluation protocols. The Ordinance language will be informed by similar ordinances adopted in other jurisdictions where EPS has worked, as well as in the City's neighboring jurisdictions, if relevant. The draft ordinance will incorporate the recommendations made under Task 4, as well as any feedback made by the City on those recommendations. The draft Ordinance will then be refined and shared with the public and used for public hearings with the Planning Commission and City Council. Following the completion of the public hearing process, the Consultant shall update the Final Draft based upon City Council comments. EPS will provide primary authorship of the ordinance drafts but does expect to work closely with staff on the text. Deliverables: Up to three drafts of the Inclusionary Housing Ordinance 14 Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) Task 6 — Project Management, Meetings, Communication Department Staff At key points during the Study, EPS will participate in discussions with City staff and development industry stakeholders. EPS will budget participation in four (4) public hearings, and five (5) meetings with City staff. Due to COVID restrictions, we have assumed the meetings will be conducted via phone or videoconference. In addition, EPS's approach to client engagement is to maintain open lines of communications. As such, EPS staff will remain in communication with City staff and other stakeholders throughout the process by phone, e-mail, and other means to provide progress updates, preliminary findings, and address any questions or concerns that arise. As stated in the RFP, EPS will assist the City in fulfilling the grant performance and reporting requirements by providing monthly progress memoranda, meeting memoranda, etc. Deliverables: Meeting Notes, Monthly Status Memoranda, outreach tools, articles, notices, invoices with supportive back-up information. Project Team EPS will bring a team of highly qualified and experienced individuals to successfully complete this study in concert with the ongoing efforts of the City and other stakeholders. As a relatively small firm (about 50 employees in 4 offices), EPS's policy is to bring the most relevant in-house talent to each assignment, and to manage our workload so that our clients are provided the highest level of service. While we generally leverage the expertise of our entire staff, each project is assigned a Principal -in -Charge and Project Manager. A brief description of the role and background of the key EPS staff assigned to this effort is provided below. A detailed resume for each staff person below is provided in Appendix A. Darin Smith, Managing Principal, will serve as Principal -in -Charge. He will assist in all phases of the work program, including helping to direct the analytical framework, providing guidance on technical work, and interacting with City staff and policymakers. Darin is a recognized expert in housing policy, particularly with regards to developing a demand -based nexus methodology for affordable housing impact fee programs and working with jurisdictions to develop fee programs that are economically viable and promote affordable housing program goals. Over the last 20 years, Darin has worked on affordable housing programs and related fees for jurisdictions throughout California, including the cities of Laguna Beach, Newport Beach, Burbank, Sunnyvale, Mountain View, Pleasanton, San Mateo, Santa Rosa, Walnut Creek, Palm Desert, Watsonville, San Bruno, Gilroy, Larkspur, Rohnert Park, and Petaluma, and Sonoma and Mono Counties, as well as in Austin, Texas. Additionally, Darin is currently working on Inclusionary Housing Program updates for the cities of San Clemente and San Carlos, housing feasibility studies for Los Angeles County and Mountain View, and an affordable housing linkage fee nexus study for the City of Culver City. Through these and other projects, Darin has extensive experience communicating the complex economic realities and financial 15 Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) feasibility challenges of affordable housing development with stakeholder groups and to elected bodies. Darin spoke at the California APA Conference in 2015 on the topic of local approaches to enhancing funding for and production of affordable housing through nexus - based fee programs. He will serve as the primary contact for the City and can be reached by phone at (510) 841-9190 or by e-mail at dsmith(deosys.com. Julie Cooper, Vice President, will serve as the EPS Project Manager and key project contact for the City, providing day-to-day organizational support to ensure the tasks and deliverables are completed with high quality and in a timely manner. She will also conduct the primary technical analysis for the study and participate in stakeholder engagement. Julie has worked with municipalities throughout the country, providing real estate market analysis, development feasibility and fiscal impact modeling for a variety of land use plans and initiatives. Her experience in affordable housing policy includes assessing demand and development feasibility for affordable and homeless housing projects; analyzing the impacts of inclusionary housing policies on market -rate housing feasibility and development; and conducting market analyses for affordable housing developers applying for public financing, including Low -Income Housing Tax Credits. As such, she has a broad understanding of the housing development process from the public and private side, and of the policy approaches that can promote needed and desired housing development and related benefits in a community. Julie is in EPS's Los Angeles office, and is working on affordable housing -related studies in the cities of Culver City, San Clemente, and Lancaster. She can be reached by phone at (213) 489-3808 or by e- mail at jcooper2egsyscorn. Jake Cranor, Senior Associate, will serve as the EPS Technical Analyst for the engagement, providing research and analytical support for the work program. Jake has worked with municipalities throughout the state, providing real estate market analysis, development feasibility and fiscal impact modeling for a variety of land use plans and initiatives. He has a broad understanding of the housing development process from the public and private side, and of the policy approaches that can promote needed and desired housing development and related benefits in a community. Jake also has experience in working directly with municipal staff, elected officials, and community members, presenting on and facilitating discussions of community goals and objectives, local and regional market conditions, and policies that can bring the two into alignment. Jake is in EPS's Los Angeles office, and is working on an Affordable Housing Linkage Fee program for the City of Culver City and performing an Inclusionary Housing Fee study for the City of Folsom. He can be reached by phone at (213) 988-7232 or by e-mail at 16 Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) 3. References EPS is pleased to suggest that the City of El Segundo contact the following individuals to learn about the firm's recent engagements relevant to the services sought by the City. We have provided a brief description of services for each engagement; additional description is included in the Project Examples subsection in Section 1 above. Jennifer Savage, Senior Planner, City of San Clemente 910 Calle Negocio, San Clemente, CA 92673 (949) 361-6186; Sava e! @an-clern nte.or Proiect: San Clemente Inclusionary Housing Ordinance Update and Fee Study (2019- Present) EPS is engaged to assist the City in reviewing and updating its existing affordable housing inclusionary requirements. EPS has worked with City staff to review the inclusionary programs of peer jurisdictions, and to explore the feasibility implications of different inclusionary requirements and in -lieu fee methodologies. EPS's calculations have involved different affordability requirements applied to different types of housing developments (product types, densities, and tenures). As part of this work, EPS is conducting individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives are understood, and the underlying cost and revenue assumptions are properly vetted. Wayne Chen, Assistant Community Development Director, City of Mountain View 500 Castro Street, Mountain View, CA 94041 (650) 903-6462; Wayne. chen@mountainvJg1y,ov Project: Mountain View Inclusionary Housing Ordinance Update and Fee Study (2018-19) EPS was retained by the City to assist with updating the inclusionary housing ordinance to better reflect contemporary development economics as well as evolving policy considerations. EPS worked with City staff to understand the economic conditions they hoped to address with the updated policy and calculated a variety of ways to amend the policy accordingly. The calculations involved different affordability requirements as they might be applied to different types of housing developments (product types, densities, and tenures) to understand the feasibility implications of the variations. EPS also conducted individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives were understood, the underlying cost and revenue assumptions were properly vetted, and staff's recommendations were previewed before going to Council. Sandy Council, Housing Manager, City of San Mateo 330 W. 20th Avenue, San Mateo, CA 94403 (650) 522-7223; ctaun ilci fsanmateo.or' Pro,iect: San Mateo Inclusionary Housing Ordinance Update and Fee Study (2009) 17 Agreement No. 6067 Proposal: El Segundo Inclusionary Housing Ordinance (PBS 20-03) EPS has conducted numerous studies for the City of San Mateo regarding affordable housing, including a broad strategy for increasing housing production, negotiation support for development projects, and most recently an update to the City's inclusionary housing ordinance. EPS's calculations involved different affordability requirements as they might be applied to different types of housing developments (product types, densities, and tenures) to understand the feasibility implications of the variations, including the impact of the State's density bonus mandates on development feasibility. EPS also conducted individual and group discussions with housing developers and other industry representatives to ensure that the City's objectives were understood, the underlying cost and revenue assumptions were properly vetted, and staff's recommendations were previewed before going to Council. These communications also sought developer input regarding the types and scale of various City incentives that might offset any increased inclusionary housing burden. Margot Ernst, Housing Program Manager, City of Walnut Creek 1666 North Main Street, Walnut Creek, CA 94596 (925) 943-5899 x2208; rnst@w lnu-creek.org, fr ct. Walnut Creek Affordable Housing Impact Fees (2015-17) EPS was retained to update affordable housing impact fee levels for the City to reflect contemporary economic conditions. The City's leadership was particularly interested in understanding how changes to their housing -related fees would affect development feasibility, as well as yield financial resources to advance their affordable housing goals. Through extensive stakeholder outreach and public meetings, EPS explored these issues including an analysis of the City's overall development fee burdens (inclusive of fees for transportation, open space, etc.), a comparison among other jurisdictions, and an assessment of the effect of fees on project feasibility. EPS also provided a literature review regarding the impact of inclusionary housing programs on overall housing production and affordability, as well as case studies of alternatives to development fees that could distribute the financial impact rather than relying on new construction to generate housing funds. Todd Tipton, Deputy Community Development Director/Economic Development Manager, City of Culver City 9770 Culver Boulevard, Culver City, CA 90232 (310) 253-5783; todd.tijpton2Lculverdty.org Pry Culver City Affordable Housing Commercial Linkage Fee Study (2019-Present) The City of Culver City has engaged EPS to study the adoption of a commercial linkage fee on new nonresidential development. A commercial linkage fee, also known as a jobs - housing linkage fee, is a type of impact fee charged to developers of new nonresidential properties to help support affordable housing for new workers. The conceptual underpinning of the fee is that new nonresidential development creates new jobs, and some of these jobs will pay wages below what is required for a worker to afford a market -rate housing unit in the city. In addition to performing the linkage fee study, EPS put together a set of responses to frequently asked questions for the City to post on its is Agreement No. 6067 Economic & Planning Systems, Inc. (EPS) website. EPS also held a virtual town hall to explain the process of calculating the fee to stakeholders and members of the general public. 19 Agreement No. 6067 Exhibit B Budget Agreement No. 6067 7)R rr 1, P'rl Y( a b1 d r fP" o/ k.,Ymd f, r', Proposal El Segundo Inclusionary Housing Ordinance (PBS 20-03) Prepared for: City of El Segundo Prepared by: Economic & Planning Systems, Inc. (EPS) January 11, 2021 Economic & Planning Systems, Inc. 949 South Hope Street Suite 103 Los Angeles, CA 90015-1454 EPS *204048 213 489 3838 tel Oakland Sacramento Denver Los Angeles www.epsys.com Agreement NO.6067 / \ E \ cm k / / E k 2 V , \: o L o 2 ƒ 6 L ® � k k \ \ k § M cp_ 0 _k a 3 r « IR 0 0 0 Ln S u _ _ a It E § # U 0 0 2 s ' = = > f c o Q I � En ' ■ co o _ _ CD = t M 0)g� 2Uw ,0 . _IleIL E 2 E 4 2 E kMk2 q r CO0 u # U ��0 § k t > A ID \ q ® u/ # .0 LA ao � 41 _ £ / k M w . e MR 2■= / / k E \, ^ $ 2 2 IM u = @ n 69 C En k U } $ a = 0' 2■ 2 0 & 2 £ / f / § _ ® � 2 % § 2 $ E . 0 EfnMc k § k 'E 0 I k/ \ o ; v c� raf 2� i § 2 . $ e J \ L. � \ \ ■ M 0 k @ .0 \ k CL 2 2 tAo ; § $ . 41 > 2 = IM_ 5 a) L V° M , 2 2 (D E lu 2§$ § c k � k o c \ -0 \ k 2 § c E ° / / � G , \ § § § M - & = u E • ° � ° u: in § ; v U a a 2 2 U � t = a . 0§ k U) w U) A 3 (n w u M _ 0 1 M E 00 g U Agreement No. 6067 Exhibit C Resumes Agreement No. 6067 dlJ! :T�U(,ari Master of City Planning, University of Pennsylvania Bachelor of Arts in Psychology, University of Pennsylvania hereviouas IIlin'vployuaiar.iid Real Estate and Urban Planning Consultant, ZHA, Inc., Annapolis, MD, 1997- 2000 Retail Site Selection Consultant, Pep Boys, Inc., Philadelphia, PA, 1996-1997 Iio[iiou°s auid Aw aiid Congress for the New Urbanism "Award of Excellence" 2001 - Robert Mueller Municipal Airport Reuse Plan, Austin, TX FTA/FH WA/APA "Transportation Planning Excellence Award" 2004— Valley Metro Rail Station Development Opportunities and Strategies, Phoenix, AZ California APA "Award of Merit for Planning Implementation" 2002—Sonoma County Housing Element, Sonoma County, CA California AIA and APA "Awhanee Award of Honor" 2002—Hayward Cannery Area Design Plan Darin Smith is a real estate economist with broad experience providing strategic advice to public and private clients on the economic and financial dimensions of land use and real estate development. Darin has helped numerous jurisdictions create strategies to promote development of affordable housing, including inclusionary policies, in -lieu fees, jobs/housing linkage fees, and developer exactions. He also has particular expertise in urban redevelopment projects large and small, negotiating public/private development and financing agreements, evaluating opportunities for transit -oriented development, and creating downtown revitalization strategies and policies. Affordable Housing Programs and In -Lieu Fees For the Cities of Goleta, Laguna Beach, Gilroy, Larkspur, San Bruno, and Newport Beach and the County of Sonoma, EPS has prepared ordinances requiring developers to provide affordable units within their market -rate developments or, under certain circumstances, to pay fees in -lieu of providing affordable units. Affordable Housing Nexus Fee Studies For San Mateo, Mountain View, Sunnyvale, Pleasanton, Santa Rosa, and Sonoma County, EPS has prepared nexus studies documenting the link between the development and occupancy of new market -rate housing and the demand for affordable housing, and recommending fees to mitigate these impacts. Non -Residential Linkage Fee Studies For Goleta, Santa Rosa, Petaluma, Rohnert Park, Sonoma County, Windsor, and Alameda, EPS has determined the housing needs created by new retail, office, and industrial development, recommended fee programs to mitigate those impacts, and in some cases drafted linkage fee ordinances that have been adopted. Housing Element Updates For Sonoma County and the Town of Winters, EPS has prepared Housing Elements documenting the inventory of housing supply and demand for special populations, a review of the character and effectiveness of existing policies, recommendations for new policies, and documentation of available sites for new housing. Affordable Housing Policy Reviews Speaker —Best Practices in For the Cities of San Mateo and Santa Rosa, EPS has worked with for -profit and Speaker - Best Practices in nonprofit housing developers to evaluate and recommend policy options that can Transit -Oriented enhance the production of affordable housing while minimizing adverse affects on Development, Rail -Volution the production of market -rate housing. National Conference, 2007, 2008, 2010 and 2012 Homestead Preservation District Analysis, Austin, TX Panelist - Urban Land For the City of Austin, EPS is providing an analysis of nationwide "best -practices" to Institute "Transit -Oriented provide local funding for affordable housing, as well as analysis and Development Marketplace," recommendations for prioritizing housing investments and creating a sustainable 2007, 2008, 2009, and 2010 financing strategy for affordable housing in gentrifying neighborhoods. Economic & Planning Systems, Inc. 1330 Broadway, Suite 450 1 Caldand, CA 94612 The Economics of a. a n d Use 510.841.9190 1 dsmith@epsys.com " www epsys.com Agreement No. 6067 EE :d: ICa11ll0f. A,V Oii. Master of Public Policy, Harris Julie Cooper joined EPS in 2018, bringing professional experience in land use, Public Policy at the University economic, and community development consulting. She has provided strategic of Chicago, 2014 planning services for a variety of public, private, and institutional clients, including analysis of market and economic conditions, development feasibility and fiscal Bachelor of Arts, International impact modeling, and policy recommendations. She also has extensive experience Studies, University of Chicago, in stakeholder and community engagement. Before joining EPS, Julie served as an 2007 Associate at Development Strategies, a St. Louis -based consulting firm. PauUVkAAS I:::11ldOYIMelll : SI I I ( II'!II0 )I�ul;:ll ( I V)h,cil I clsli:)I`Jr''til V'I!!II'II I'di`I'' Associate, Development San Clemente Inclusionary Housing Program Update Strategies, Saint Louis, MO EPS was engaged by the City of San Clemente to review and update its (2014-2018) inclusionary housing program, focusing on potential revisions to its affordable Policy Intern, Center for housing in -lieu fee. EPS is conducting financial feasibility analyses to determine Neighborhood Technology, how the City's current in -lieu fee levels compare to the development feasibility gap Chicago, IL (2013) for building affordable housing, and help the City identify program adjustments Research Assistant, Energy that will be most effective in increasing its supply of affordable units. As Project Policy Institute at Chicago, Manager, Julie is responsible for coordinating with the City staff, conducting Chicago, IL (2012-2013) research and technical analysis, and producing project deliverables. Director of Public Relations, Culver City Commercial Linkage Fee Study Israel Government Tourist Office Midwest Region, EPS is working with the City of Culver City to develop an affordable housing Chicago, IL (2008-2012) linkage fee program for new commercial development, to address the impacts of new businesses on housing supply and affordability for their workers. The program Affiilial ioin will complement the City's other affordable housing initiatives, including an American Planning Association inclusionary housing program under consideration. EPS's work includes the Urban Land Institute technical nexus analysis needed to support the fee, outreach to key stakeholders and community members, and feasibility analysis to provide guidance on a fee level that is supportable by new development. As Project Manager, Julie acts as a point -of -contact for City staff, oversees research and technical analysis by the EPS team, and is actively involved in stakeholder and community outreach efforts. Mira Loma Detention Center Site Market Feasibility Study EPS has been engaged by the County of Los Angeles to lead a Consultant Team in assessing opportunities for redevelopment of the Mira Loma Detention Center site in Lancaster. The study tasks include analysis of existing demographic, market, and site conditions; financial feasibility analysis of potential redevelopment programs for the site; and an implementation plan for a preferred redevelopment program. The study will particularly focus on opportunities for developing a variety of affordable housing products on the site. As Project Manager, Julie is responsible for coordinating between the City and other members of the consultant team, as well as conducting existing conditions and financial feasibility analysis. Economic & Planning Systems, Inc. The e i:i c o n o m i c> of Land U s e 949 S. Hope St., Suite 102 , Los Angeles, CA 90015 213.489.3808 jcooper@epsys,com w www epsys.com Agreement No. 6067 Economic & Plannin S stems Inc. PEPS Master of Business Administration, Georgia Institute of Technology, 2020 Master of Urban and Regional Planning, University of California, Los Angeles, 2015 Bachelor of Arts, Business and Management, University of Glasgow, 2012 IoCV11,Js 1!I11npIaly111aeInf MBA Intern, Inspire Brands, Atlanta, GA (2019-2020) Consultant, A2F Consulting, Washington, DC (2016-2018) Project Planner, Stanley R. Hoffman Associates, Los Angeles, CA (2014-2016) Market Analyst, Fresh Mark, Canton, Ohio, (2012-2013) > d"idia lilorii^s American Planning Association Senior.11ake Cranor • Ai wI V Jake Cranor joined EPS as a Senior Associate in the firm's Los Angeles office in 2020, bringing professional experience in land use, economic development, and public finance consulting. He has provided strategic planning services for a variety of public, private, and institutional clients, including analysis of market and economic conditions, development feasibility and fiscal impact modeling, and policy recommendations. He also has experience advising on financial sector development issues in emerging economies. Before joining EPS, Jake assisted Inspire Brands, a multi -brand restaurant company, with its location strategy in international markets. 1II F C 111!!1) DIPO 1i C"I Ai`,K) 111).011 I!!'',S1_(;7f'1AI XI"A'!IPH II10'!' Culver City Commercial Linkage Fee Study EPS is currently completing an affordable housing commercial linkage fee nexus study for the City of Culver City. Jake is serving as lead analyst, coordinating with and collecting data from city and state departments on affordable housing needs; building the fee model to calculate the maximum allowable fees; and working on the nexus study document. Folsom Inclusionary Housing Fee Study On behalf of the City of Folsom, EPS is reviewing the City's existing inclusionary housing ordinance and its requirements for affordable housing. EPS is also helping to estimate the costs of providing affordable units if a project developer elects not to provide the units on -site. Jake has been responsible for conducting a comparative analysis of surrounding jurisdictions' affordable housing policies. Urban Land Institute Fontana Housing Development Guide For the City of Fontana, EPS is developing a guide for streamlining housing approvals in Downtown Fontana. Jake is serving as project manager and is responsible for evaluating economic feasibility of various housing types, reviewing and modifying the City's form -based code, and reviewing the City's current fee reduction and exemption guidelines to identify other potential financial incentives that could be employed by the City to promote housing development in its downtown. Tahoe -Truckee Regional Housing Needs Assessment and Action Plan EPS has been contracted by the Tahoe -Truckee Community Foundation to perform an update of their 2016 workforce housing needs assessment, and use this assessment to formulate a housing action plan. The plan will also be informed by extensive outreach efforts toward local partners and stakeholders. Jake is lead analyst on the project and is responsible for identifying current demand for housing among the region's workforce, as well as determining recent and expected in trends for housing in the area. Economic & Planning Systems, Inc. T h e Economics of Land I J s e 949 S. Hope St., Suite 102 - Los Angeles, CA 90015 213,489.3808, jcranor@epsys co ® www,epsys.com