Report to Mayor and City Council
Monday, November 06, 2017
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 3 TO AN AGREEMENT WITH KELLY ASSOCIATES MANAGEMENT GROUP, LLC TO STUDY AND FORMALIZE AN INTERIM DEVELOPMENT IMPACT FEE FOR THE CITY (CITY COUNCIL)
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I. SUMMARY
On July 18, 2017, the City Council approved the first amendment to the Agreement between the City and Kelly Associates (“Consultant”) (Exhibit Nos. 1 & 2). The first amendment increased the contract by $10,000.00 to a total amount not-to-exceed $34,000.00 and extended the contract through October 18, 2017. On August 1, 2017, the City Council approved the second amendment to the Agreement between the City and Kelly Associates (“Consultant”) (Exhibit No. 3). The second amendment increased the contract by $10,000.00 to a total amount not-to-exceed $44,000.00. Staff has determined that further work is necessary to complete an effective and updated Interim Development Impact Fee. Therefore, staff has prepared the third amendment for City Council’s consideration to add an additional $20,000.00 to the contract amount for a total of $64,000.00 and extend the contract through June 30, 2018 (Exhibit No. 4).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE Amendment No. 3 to the contract with Kelly Associates Management Group, LLC, increasing the contract amount by $20,000.00 and extending the term through June 30, 2018.
2. ADOPT Resolution No. 17-147, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET IN THE GENERAL FUND.
3. AUTHORIZE the Mayor to execute the amendment, following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate that is consistent with the requirements of law.
IV. BACKGROUND
On November 1, 2016, the City and Kelly Associates (“Consultant”) entered into an agreement to initiate the process to develop City’s first ever Development Impact Fees (“DIF”). The City Manager authorized this agreement under his contracting authority for $24,000.00. After initial discussions with the Consultant, the staff determined adoption of the DIF was not possible without the benefit of an updated General Plan which identifies future land uses and needed infrastructure. The expected date of completion of the General Plan is July 2019.
With the current available information, then, staff determined adoption of an Interim DIF (“IDIF”) is best suited for the City and asked the Consultant to proceed with the analysis of an IDIF. An IDIF uses the best available information on costs to create a fee that could be applied during the General Plan study period, and which would be updated upon the adoption of the new General Plan. Additional funds were necessary to complete this analysis. Amendment Nos. 1 and 2 to the contract added $20,000.00 to the contract amount and allowed for necessary review and analysis of the City’s General Plan, Zoning Code, Specific Plans, fiscal and environmental information and land-use data related to proposed development opportunities.
Preliminary IDIF numbers have been prepared by the Consultant. Staff has now requested that the Consultant update the IDIF, attend another City Council study session, attend a City Council public meeting and a community meeting and prepare a final draft staff report. The additional cost required for the Consultant to complete these additional tasks is $20,000.00. Staff is requesting that the Council approve Amendment No. 3 with Kelly Associates to add an additional $20,000.00 to the contract amount and extend the contract term through June 30, 2018.
V. FISCAL IMPACT
This amendment will add $20,000.00 to the amended agreement for a total amount not-to-exceed $64,000.00 and extend the term from October 18, 2017 to June 30, 2018.
The General Fund Running Budget Summary FY 2017-18 is attached as Exhibit No. 5. If this contract amendment is approved, the General Fund expenditures for FY 2017-18 will increase by $20,000.00 in account 01-70-870-290-6005. Budget Resolution 17-147 is attached as Exhibit No. 6.
VI. EXHIBITS
1. Contract with Kelly Associates. (pgs. 4-18)
2. Amendment No. 1 to Contract with Kelly Associates. (pgs. 19-23)
3. Amendment No. 2 to Contract with Kelly Associates. (pgs. 24-28)
4. Proposed Amendment No. 3 to Contract with Kelly Associates. (pgs. 29-35)
5. General Fund Running Budget Summary FY 2017-18. (pg. 36)
6. Resolution No. 17-147. (pgs. 37-38)
Prepared by: Saied Naaseh, Planning Manager