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06. Amend Agreement - Stradling Yocca Carlson & RauthFile #: 3373 Claremont City Council Agenda Report TO: TARA SCHULTZ, CITY MANAGER FROM: CHRISTOPHER M. PAULSON, ASSISTANT CITY MANAGER DATE: JUNE 23, 2020 SUBJECT: Item No: 6. Reviewed by: City Manager: TS Finance Director: AP AUTHORIZATION TO AMEND A PROFESSIONAL SERVICES AGREEMENT FOR LEGAL SERVICES WITH STRADLING YOCCA CARLSON & RAUTH TO INCREASE COMPENSATION (FUNDING SOURCE: SUCCESSOR HOUSING FUND) RIIMMORY The City entered into an agreement for professional legal services with Stradling Yocca Carlson & Rauth (SYCR) in December 2019 to assist the City with drafting and negotiating two affordable housing agreements. Further details about the projects are included later in this report. The City Manager authorized compensation in the amount of $15,000 from the Successor Housing Fund to fund the agreement. Due to the complexity of the agreements and time necessary to negotiate the terms with the related parties, additional compensation is necessary. Staff recommends the City Council authorize the City Manager to amend the agreement for professional legal services with Stradling Yocca Carlson & Rauth to increase compensation to an amount not to exceed $50,000. Staff also requests that the City Council appropriate that amount from the Successor Housing Fund in order to fully fund the agreement. RECOMMENDATION Staff recommends that the City Council: A. Authorize the City Manager to amend the agreement for professional legal services with Stradling Yocca Carlson & Rauth to increase compensation in an amount not to exceed $50,000; and B. Appropriate $50,000 from the Successor Housing Fund to fund the agreement. CLAREMONT Page 1 of 3 Printed on 6/18/2020 ALTERNATIVES TO RECOMMENDATION In addition to the recommendation, there are the following alternatives: A. Request additional information. B. Do not authorize the City Manager to amend the professional services agreement increasing compensation. FINANCIAL REVIEW The City has currently spent approximately $15,000 related to this professional services agreement, and requests City Council authorize a not to exceed amount of $50,000. The City Council is being asked to appropriate that amount from the Successor Housing Fund in order to fund the agreement. If additional compensation becomes necessary, staff will return to the City Council to request additional funds. The staff cost to prepare this report is estimated at $551, and is included in the operating budget of the Administrative Services Department. ANALYSIS In December 2019, the City entered into an agreement with Stradling Yocca Carlson & Rauth (SYCR) to provide professional legal services to assist the City with drafting and negotiating two affordable housing agreements. At that time, and within her purchasing authority, the City Manager authorized $15,000 from the Successor Housing Fund to be used. With staff oversight, an attorney with SYCR has been drafting and negotiating terms to affordable housing agreements with two independent development teams. The developments are currently proposed to be located on Base Line Road and Harrison Avenue in the City of Claremont. The proposed developments will result in approximately 37 affordable rental units and will include wrap- around support services at each location. In order to present the agreements for City Council consideration at a later date, SYCR has been assisting with drafting the agreements and negotiating terms. Due to the complexity of the agreements and the time necessary to negotiate with the related parties, additional compensation is necessary. Staff recommends increasing the agreement in an amount not to exceed $50,000 in compensation. If the City Council is agreeable, that amount must also be appropriated from the Housing Successor Fund to fully fund the agreement. LEGAL REVIEW The amendment to the professional services agreement will be reviewed and approved as to form by the City Attorney. RELATIONSHIP TO CITY PLANNING DOCUMENTS Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds the following: CLAREMONT Page 2 of 3 Printed on 6/18/2020 Council Priorities - This item addresses the Council Priority entitled "Increase Livability in our Neighborhoods and Expand Opportunities for our Businesses". General Plan - This item addresses General Plan Goal 8-3: Provide opportunities throughout the City for adequate and affordable housing in a wide range of housing types to meet the needs of all socioeconomic segments of the community. 2019-20 Budget - This item meets Community Development Work Plan Goal CD -3: Facilitate housing opportunities for individuals at all income levels. CEQA REVIEW This item (amending a professional services agreement) is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a "project" as defined in Section 15378). CEQA Guidelines Section 15378(b)(2), (4), and (5) excludes "[c]ontinuing administrative ... activities," "government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment," and "[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment" from its definition of "project." Even if this item were a "project," it is covered by the general rule that the CEQA applies only to projects that have the potential for causing a significant effect on the environment in accordance with Section 15061(b)(3) of the Guidelines. Amending a contract for consulting services will not, in and of itself, result in any physical changes to the environment. Thus no additional environmental review is needed at this time. PUBLIC NOTICE PROCESS Due to the current health orders related to the COVID-19 pandemic, parts of the City's regular agenda distribution process have been suspended as public review copies cannot be placed at their regular locations due to facility closures, or limited access. The agenda and this staff report are available on the City's website. If you desire a copy, please contact the City Clerk's Office. Submitted by: Prepared by: Christopher M. Paulson Jamie Earl Assistant City Manager Assistant to the City Manager CLAREMONT Page 3 of 3 Printed on 6/18/2020