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HomeMy WebLinkAbout2021-10-19; City Council; ; Professional Services Agreement for a Permit-Ready Accessory Dwelling Unit ProgramMeeting Date: Oct. 19, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Shelley Glennon, Associate Planner shelley.glennon@carlsbadca.gov, 760-602-4605 Subject: Professional Services Agreement for a Permit-Ready Accessory Dwelling Unit Program District: All Recommended Action Adopt a resolution approving a professional service agreement with Design Path Studio LLC to prepare a permit-ready accessory dwelling unit program and appropriate grant funding in the amount of $120,000 to the General Fund to implement the program in fiscal year 2021-2022. Executive Summary Program 1.2 of the recently adopted 2021-2029 Housing Element of the city’s General Plan calls for the city to promote the development of accessory dwelling units, which are considered a valuable source of low-cost, affordable housing.1 Objective “e” of the program requires the city to develop at least four sets of plans for permit-ready accessory dwelling units that meet state and local building standards. Customers who use these permit-ready plans will be able to receive a building permit quickly and inexpensively. This will save applicants as much as three to eight months in plan preparation and review and will save applicants approximately $8,000 to $18,000 in costs associated with hiring an architect and/or a draftsperson to prepare the drawings. Following a competitive bidding process, staff recommend awarding a professional services agreement to Design Path Studio LLC for an amount not to exceed $120,000 (Exhibit 1) to prepare a permit-ready accessory dwelling unit program. Staff also recommend the City Council appropriate $120,000 to the General Fund for the professional services agreement. Funds will be reimbursed by the state’s Local Early Action Planning grant fund previously awarded to the City for an amount not to exceed $120,000. This matter is being brought to the City Council for its approval in accordance with Carlsbad Municipal Code Section 3.28.060(D)(5), which establishes the City Council as the awarding 1 An accessory dwelling unit may be attached to or detached from the primary dwelling, or created from the conversion of existing space. They must have a separate entrance from the main home. Oct. 19, 2021 Item #2 Page 1 of 20 authority for the procurement of professional services for which the cost to the city is more than $100,000 per agreement year. Discussion Background The Governor signed multiple housing bills in 2017 intended to address the current state housing crisis, including Senate Bill 35 - Streamline Approval Process; Assembly Bill 678, the Housing Accountability Act; and SB 167, which expanded the Housing Accountability Act. In 2020, in response to this new legislation, the California Department of Housing and Community Development made Local Early Action Planning Grant Program funding available to help local governments accelerate the production of housing. This state grant offers a timely opportunity to help the city fund the development of programs and projects identified in the city’s 2021- 2029 Housing Element. On Jan. 19, 2021, the City Council directed staff to submit a LEAP grant application to fund three projects: 1) Permit-Ready Accessory Dwelling Unit Program 2) Housing Element pro-housing policies (cover costs associated with the development of the Housing Element update) 3) Village & Barrio objective design standards for multifamily housing and mixed-use development projects The pro-housing policies and the objective design standards will be presented to the City Council in later reports. The state informed the city June 1, 2021, that it had been awarded the $500,000 in LEAP grant funds it had requested, with $120,000 to be used for the permit-ready accessory dwelling unit program. The standard grant agreement is anticipated to be executed by fall 2021. The grant term ends Sept. 30, 2023, with reimbursements to be released to the city no later than Dec. 31, 2023. Development of the permit-ready accessory dwelling unit program is anticipated to be completed in spring 2023, well before the grant term ends. The appropriation of $120,000 to fund the professional service agreement will be reimbursed in full through the grant funds once the project is completed. Consultant selection process On July 8, 2021, staff issued a request for proposals to obtain professional consulting services according to the formal bidding process outlined in Carlsbad Municipal Code Section 3.28.060(D). The city received four proposals in response. A staff committee evaluated the proposals to determine the best value for the city and concluded that Design Path Studio’s proposal showed the necessary qualifications and competence at a fair and reasonable price. Design Path Studio is a multidisciplinary firm with architects, planners, urban designers, landscape architects and engineers, with offices throughout California. Its relevant work experience includes preparing the City of Encinitas’s Permit-Ready Accessory Dwelling Unit Program, where the city experienced within the first two years of program release a doubling in the number of ADU applications, with roughly 17% of the ADUs constructed based on the pre- approved plans. Oct. 19, 2021 Item #2 Page 2 of 20 Scope of work Design Path Studio’s proposed scope of work, tentative project timeline, and fee schedule can be found as Attachment A to the City Council resolution (Exhibit 1) and includes four primary tasks required to complete the project consistent with the LEAP grant terms. Design Path Studio’s scope of work is summarized by task as follows: Task 1 – Develop final drawing sets of plans for at least four detached accessory dwelling unit prototypes, including three styles of architecture and a maximum of four layouts/orientations. Plan sets will include elevations, floor plans, foundation plans and detailed plan information. Task 2 – Create a streamlined permitting process that reduces permit processing time for detached accessory dwelling unit projects. The goal is to reduce the processing time by at least 25% for most units developed using the program.2 The current average timeframe for an applicant to receive building permit approval after submitting an application is 60 to 90 days. The projected timeframe for an applicant to receive building permit approval using this program is 30 to 45 days. Task 3 – Review and update policies and/or ordinances deemed necessary to implement the program. Task 4 – Conduct community outreach throughout the planning process including: preparing community outreach materials, such as an informational bulletin, facilitate a community open house, conduct a community survey and prepare for/attend public hearings. Options Staff provide the following options for the City Council’s consideration: 1. Not approve a professional services agreement with Design Path Studio, LLC, and request to review another consultant’s scope of work for consideration at a later date. Pros • The City Council can approve an agreement with a different consultant that is possibly more aligned with its goals, values, and objectives. Cons • The process to select another consultant would delay the project significantly and potentially prevent the project from being completed within the timeframe required under the LEAP grant program terms. 2. Not approve a professional services agreement with Design Path Studio, LLC, or any other consultant with the intent to not move forward with the project. Pros • This will free up staff time to implement other priority projects. Cons • The grant fund award of $120,000 from the state will be forfeited and the city will be out of compliance with the city’s Housing Element Update Program 1.2 – 2 Some accessory dwelling units in the Coastal Zone may require additional permit review. Oct. 19, 2021 Item #2 Page 3 of 20 Objective “e,” that requires the city to develop at least four permit-ready accessory dwelling unit plan sets that meet state and local building standards. Fiscal Analysis The cost of this project is expected to be an amount not to exceed $120,000 and will be reimbursed by the state’s LEAP grant fund program. The grant standard agreement for fund distribution is anticipated to be executed by fall 2021. The grant term ends Sept. 30, 2023, with reimbursements to be released to the city no later than Dec. 31, 2023. The permit-ready accessory dwelling unit program is anticipated to be completed in spring 2023, well before the grant term ends. Grant funding in the amount of $120,000 will be appropriated in the General Fund. Next Steps Staff will execute the professional services agreement between Design Path Studio and the city, and staff and Design Path Studio will begin work on Task 1 of the project’s scope of work which includes a project kick-off meeting. Environmental Evaluation This activity is not a “project” as defined by the California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4), because the activity involves execution of a contract which, on its own accord, will not cause a significant environmental impact. As such, under CEQA Guidelines Section 15060(c)(3), this activity is not subject to environmental review. This determination is predicated on CEQA Guidelines Section 15004, which provides direction to lead agencies on the appropriate timing for environmental review. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council resolution 2. Jan. 19, 2021 City Council staff report (on file in the Office of the City Clerk) Oct. 19, 2021 Item #2 Page 4 of 20 RESOLUTION NO. 2021-237 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH DESIGN PATH STUDIO, LLC TO PREPARE THE CITY'S PERMIT-READY ACCESSORY DWELLING UNIT PROGRAM, AND APPROPRIATE $120,000 TO THE GENERAL FUND TO IMPLEMENT THE PROGRAM IN FISCAL YEAR 2021- 2022 CASE NAME: CASE NO.: PERMIT-READY ACCESSORY DWELLING UNIT PROGRAM ZCA 2021-0003 EXHIBIT 1 WHEREAS, on April 6, 2021, the City Council approved the 2021-2029 Housing Element consistent with state housing law, which included Program 1.2.e that directs the city to develop at least four permit-ready accessory dwelling unit plan sets that meet state and local building standards in order to streamline permit issuance; and WHEREAS, the City Council on Jan. 19, 2021, authorized application for, and receipt of, Local . Early Planning (LEAP) Grants Program Funds from the State of California to expedite the processing of housing projects and accelerate housing production; and WHEREAS, the City of Carlsbad was awarded a LEAP grant in the amount of $500,000, of which $120,000 was awarded to prepare the city's permit-ready accessory dwelling unit program, $220,000 was awarded to assist the city with the development of its 2021-2029 Housing Element update, and $160,000 was awarded to prepare objective design standards and a streamlined permitting process for multifamily housing and mixed-use development projects within the Village and Barrio Master Plan area; and WHEREAS, staff issued a request for proposals in compliance with Carlsbad Municipal Code Sections 3.28.0G0(D) to obtain professional services to prepare a permit-ready accessory dwelling unit program to provide an expedited accessory dwelling unit permitting process that assists in meeting the community's affordable housing needs and accelerates housing production; and WHEREAS, after review of four proposals submitted in response to the request for proposals, staff recommended Design Path Studio, LLC as the most qualified consultant for the project; and WHEREAS, city staff and Design Path Studio, LLC negotiated a scope of work and schedule with an associated fee for an amount not to exceed $120,000, which is to be fully funded by the LEAP grant; and Oct. 19, 2021 Item #2 Page 5 of 20 EXHIBIT 1 WHEREAS, the consultant costs to complete the scope of work will be paid by the City of Carlsbad and the city will be reimbursed through the LEAP grant funds program; and WHEREAS, the proposed professional services agreement with Design Path Studio LLC, including the scope of work, fee, and schedule, is provided as Attachment A; and WHEREAS, the City Planner determined on October 1, 2021, the activity is not a project as defined by the California Environmental Quality Act (CEQA) Section 21065 and State CEQA Guidelines Section 15378(b)(4), because the activity involves execution of a contract which, on its own accord, will not cause significant environmental impact. As such, this activity is not subject to CEQA pursuant to State CEQA Guidelines Section 15060(c)(3). This determination is predicated on State CEQA Guidelines Section 15004, which provide direction to lead agencies on the appropriate timing for environmental review. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Manager is authorized and directed to execute the professional services agreement with Design Path Studio, LLC (Attachment A), to prepare the city's permit- ready accessory dwelling unit program. 3. That the City Manager is authorized to execute the City of Carlsbad Local Early Action Planning (LEAP) Grants Program application, the LEAP grant documents, and any amendments to these documents, on behalf of the City of Carlsbad as required by the California State Department of Housing and Community Development for receipt of the LEAP grant funds .. 4. That the Deputy City Manager, Administrative Services is authorized to appropriate $120,000 in grant funding to the General Fund. Oct. 19, 2021 Item #2 Page 6 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80D881 AGREEMENT FOR PERMIT-READY ACCESSORY DWELLING UNIT PROGRAM SERVICES DESIGN PATH STUDIO c---. T,HI~ AGREEMENT is made and entered into as of the / 9 ·tfz day of -~""""'---=...,=-....:oca=---..c=-----' 2021, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and DESIGN PATH STUDIO, a California corporation ("Contractor"). RECITALS A. City requires the professional services of a design company that is experienced in permit-ready accessory dwelling unit program services. B. Contractor has the necessary experience in providing professional services and advice related to permit-ready accessory dwelling unit program services. C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of three (3) years from the date first above written. The City Manager may amend the Agreement to extend it for two (2) additional two (2) year periods or parts thereof. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be one hundred twenty thousand dollars ($120,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be City Attorney Approved Version 6/12/18 Oct. 19, 2021 Item #2 Page 8 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80D881 under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the. acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VI I"; OR with a surplus line insurer on the State of California's List of Approved Surplus. Line Insurers (LASLI) with a rating in the latest Best's Key Rating Guide of at least "A:X"; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. City Attorney Approved Version 6/12/18 2 Oct. 19, 2021 Item #2 Page 9 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80D881 10.1 Coverage and Limits. Contractor will maintain the types of coverage and minimum limits indicated below, unless the Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available· and applicable to the City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an "occurrence" basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1 .4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. City Attorney Approved Version 6/12/18 3 Oct. 19, 2021 Item #2 Page 10 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80DB81 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City Name Shelley Glennon Title Associate Planner Department Comm. Dev. ---------- City of Carlsbad Address 1635 Faraday Avenue Carlsbad, CA 92008 Phone No. 760-602-4605 For Contractor Name Geoffrey Plagemann Title Project Manager Address P.O. Box 230165 Encinitas, CA 92023 Phone No. 304-951-1184 Email geoffrey@designpathstudio.com Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests in all categories. Yes ■ NoD City Attorney Approved Version 6/12/18 4 Oct. 19, 2021 Item #2 Page 11 of 20 DocuSign Envelope ID: 19A4E701-20EC-4B4D-9E0D-E4F7EF80DB81 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide City Attorney Approved Version 6/12/18 5 Oct. 19, 2021 Item #2 Page 12 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80DB81 employee, any fee, comm1ss1on, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTION AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. 6 City Attorney Approved Vers_ion 6/12/18 Oct. 19, 2021 Item #2 Page 13 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80D881 EXHIBIT "A" SCOPE OF SERVICES IV. PROJECT APPROACH (updated 2021-09-01) Item A: Scope of Services+ Project Schedule (4 weeks) Deliverables: Schedules, Agendas, and Meeting Minutes 1. Consultant shall attend a kick-off meeting with City Staff to refine the scope of services, timeline, steps for completion of ADU outreach materials and building plans. 2. The kick-off meeting will establish protocols for communication, progress meetings, and clarify project objectives and deliverables. 3. Consultant will schedule, prepare agendas, and draft minutes for all team progress meetings (to be scheduled monthly or based on plan progression). Item B: Task 1 -Permit-Ready ADU Plans (44 weeks) To be consistent with standard professional practice we propose the following design plan in order to refine the designs while working with City Staff. This allows Staff to think through the design and any factors impacting the integration of the prototypical design with existing conditions that cannot be predicted. 1: Schematic Design Deliverables: Floor plans, Elevations a. Evaluate the minimum square footage requirements for each space in the proposed unit types including, kitchen, living room, bedroom(s), and bathroom(s), as applicable. b. Consult with Staff to develop an understanding of how homeowners can easily modify the plans to accommodate an ADU on their existing property. Our goal would be to provide options for incorporating the ADUs into various existing conditions while complying with current zoning and building codes. c. Create four to eight conceptual floor plans, each with three corresponding exterior elevations and roof options, and a porch option for Staff review and comment. We will present these designs in the form of sketches to help visualize the different concepts in an efficient manner, and then select which of these concepts will be developed into the final set of plans. 2: Design Development Deliverables: Floor Plans, Elevations, and Building Sections a. Refine the selected floor plans and elevations in CAD with necessary clearances, dimensions, life safety, and sustainability aspects required by the current codes. b. Generate building sections which correspond to each floor plan and elevation. c. Evaluate and incorporate standard conventional framing details on a conceptual level for each ADU type. A conscious effort will be made to standardize the construction details for use by all residents. Design Path Studio -Page 12 Oct. 19, 2021 Item #2 Page 15 of 20 DocuSign Envelope ID: 19A4E701-20EC-4B4D-9E0D-E4F7EF80DB81 IV. PROJECT APPROACH (cont.) 3: Final Building Plan Set Deliverables: Final Set of Building Plans a. Foundation plan with conventional design for footings and slab construction. An option can be provided for a raised foundation to match an existing house or to address flooding issues. b. Dimensioned floor plans will be provided to indicate size of rooms, necessary clearances, door and window identification for corresponding schedules, room type identification, finish materials, and key notes for clarification and coordination with corresponding sheets in the plan set. c. Roof plans indicating overall design, direction of slope, roof pitch, various Class A roofing material options listed to integrate with the different site specific existing conditions, eave details, and venting calculations. d. Building Sections will indicate conventional framing methods and member sizes as determined in the design development phase and as shown in the structural framing plans. Building details and materials will be called out which will comply with minimum Title 24 energy standards. e. Exterior elevations will show proposed building materials, heights, door and window identification markers, key note and details call-outs for clarification and coordination with building section. Optional exterior finish material and details will be provided as a way to customize the exterior fai;ade to express individual owners' tastes and integration with community character f. Renderings of exterior and interior concept design will be provided as part of the final building plan set as a way to clearly show the design intent. This will help the homeowner visualize what the completed ADU will look and assist in making the decision to change any exterior materials to better integrate with their existing conditions. g. Title 24 energy calculations will be provided based on the size of the unit, door and window openings, roof overhangs, and thermal mass and insulation as designed for the final plans. Energy calculations will be generated using all cardinal points and can be modified by the consultant herein for a nominal fee for updates to site specific conditions or any changes to the fenestration ( door and window) sizes. j. Structural calculations and structural details will be provided as part of the final building plan set. 4: Department Reviews and Revisions Deliverables: Comprehensive Set of Building Plans a. Based on final Staff input, consultant will prepare a final set of building plans to be submitted to City Departments for review comments. b. Based on Department review comments, consultant shall make final revisions and submit final documentation for building plans. Design Path Studio -Page 13 / Oct. 19, 2021 Item #2 Page 16 of 20 DocuSign Envelope ID: 19A4E701-20EC-484D-9E0D-E4F7EF80D881 IV. PROJECT APPROACH (cont.) Item C: Task 2 -Streamline Permitting Process (40 weeks) Deliverables: Findings summary, ADU Guidelines + Checklists, and Revised Fee Schedule 1. Consultant shall review current ADU application process and prepare a findings summary with recomendations for changes. 2. Consultant will prepare materials to streamline the ADU application and process. 3. Consultant will prepare a revised fee schedule and present the findings to City Council. Item D: Task 3 -ADU Ordinance + Program Documents (52 weeks) Deliverables: Presentation Materials, ADU Code Language, ADU Program Materials 1. Consultant shall review current ADU ordinance and program documents and prepare a findings summary with recomendations for changes. 2. Consultant shall prepare conceptual language and layouts for a new ADU ordinance and program materials. 3. Consultant shall prepare a first draft of the new ADU ordinance and program documents for staff review. 4. Based on Staff comments, Consultant shall prepare a final draft of the new ADU ordinance and program materials for final materials. Item E: Task 4 -Public Outreach+ Meetings (28 weeks) Deliverables: Survey, Presentation + Publication Materials 1. Consultant will work with Staff to develop a Community Survey, including the format and questions, to be administered electronically by the City. Consultant will help organize the reponses and prepare a results summary. 2. Consultant will prepare ADU informational materials for publication in. print and online to assist residents and staff with the entire ADU design, permitting, and construction process. Consultant will provide staff training to help with_implementation of the ADU program. 3. Consultant will present the Permit-Read ADU Program Plans + Materials at two public meetings. 4. Consultant will present the Permit-Read ADU Program Plans + Materials to the Planning Commission. 5. Consultant will present the Permit-Read ADU Program Plans + Materials to the City Council. Design Path Studio -Page 14 Oct. 19, 2021 Item #2 Page 17 of 20 Design Path Studio - Page 15V. SCHEDULE (revised 2021-08-25)RFP 22-04 - PERMIT-READY ACCESSORY DWELLING UNIT PROGRAMDesign Path Studio ProposalItemResponsible PartyEstimated HoursEstimated Total CostO N D J F M A M J J A S O N D J F M A MDeliverableAScope of Services + Project ScheduleA.1Project Kick-off Meeting with City/ConsultantCity/Consultant6$600Agenda and Meeting NotesA.2Project ScheduleCity/Consultant6$600Updated ScheduleA.3Team Meetings (Monthly or Progress)Consultant/City60$6,000Agenda and Meeting MinutesBTask 1: Permit-Ready ADU PlansB.1Schematic DesignConsultant80$8,000Schematic Floor Plans and ElevationsB.2Design DevelopmentConsultant200$20,000Refined Floor Plans, Elevations, and Building SectionsB.3Final Building Plan SetsConsultant200$20,000Final Set of Building PlansB.4Department Reviews and RevisionsConsultant50$5,000Comprehensive Set of Building PlansCTask 2: Streamline Permit Process C.1Review of Application ProcessConsultant30$3,000Findings SummaryC.2Revised Guidelines/Requirements + Checklist/ApplicationConsultant60$6,000ADU Program Guidelines + ChecklistC.3Revised Fee ScheduleConsultant60$6,000ADU Fee Schedule for City CouncilDTask 3: ADU Ordinance + Program DocumentsD.1Review of City Code + DocumentsConsultant40$4,000Findings SummaryD.2Concepts for Program Documents + Ordinance OutlineConsultant/City80$8,000Program Concept + Ordinance OutlineD.3First Draft of Program Documents + OrdinanceConsultant/City100$10,000First Draft of Program + Ordinance D.4Final Draft of Program Documents + OrdinanceConsultant/City60$6,000Final Draft of Program + Ordinance ETask 4: Public Outreach + MeetingsE.1Community SurveyConsultant/City30$3,000Survey + PublicationE.2Publication + Presentation MaterialsConsultant100$10,000Presentation + Publication MaterialsE.3Public Open House MeetingsConsultant/City18$1,800PresentationE.4Planning CommissionConsultant/City10$1,000PresentationE.5City CouncilConsultant/City10$1,000PresentationTotal Cost: $120,000PROJECT SCHEDULE: City of Carlsbad Permit-Ready ADU Program2021 20222023Oct. 19, 2021Item #2 Page 18 of 20 Design Path Studio - Page 16 V. Schedule (cont.) Statement of Commitment Design Path Studio and its employees will devote such time to perform the Services proposed in this document, based on our understanding of the Scope of Work listed in the RFP, and under the future Agreement, as may reasonably be required. VI. Fees + Rate Schedule (revised 2021-08-25) HOURLY FEE SCHEDULE RATE ESTIMATED HOURS Principal Architect $175/hr 130 Principal Planner $150/hr 140 Project Manager $100/hr 340 Designer $75/hr 280 Drafter $75/hr 280 PROGRAM TASKS ESTIMATED COST CONSULTANT TEAM Task A.1: Kick-off $600 Design Path Task A.2: Schedule + Code Review $600 Design Path Task A.3: Team Meetings $6,000 Design Path Task B.1: Schematic Design $8,000 Design Path Task B.2: Design Development $20,000 Design Path Task B.3: Final Building Plans $20,000 Design Path + D&R Calcs Task B.4: Review + Revision $5,000 Design Path + D&R Calcs Task C.1: Review of Application Process $3,000 Design Path Task C.2: Revised Guidelines + Checklist $6,000 Design Path Task C.3: Revised Fee Schedule $6,000 Design Path Task D.1: Review of City Code + Documents $4,000 Design Path Task D.2: Concept Documents + Ordinance Outline $8,000 Design Path Task D.3: First Draft - Program Documents + Ordinance $10,000 Design Path Task D.4: Final Draft - Program Documents + Ordinance $6,000 Design Path Task E.1: Community Survey $3,000 Design Path Task E.2: Publication + Presentation Materials $10,000 Design Path Task E.3: Public Open House Meetings $1,800 Design Path Task E.4: Planning Commission $1,000 Design Path Task E.5: City Council $1,000 Design Path Oct. 19, 2021 Item #2 Page 19 of 20 Exhibit 2 Jan. 19, 2021 City Council staff report (on file in the Office of the City Clerk) Oct. 19, 2021 Item #2 Page 20 of 20 Agreement for Permit-Ready Accessory Dwelling Unit Program Eric Lardy, Principal Planner Community Development Department October 19, 2021 {city of Carlsbad TODAY’S PRESENTATION 2 Background LEAP Grant Funding Agreement with Design Path Studio Staff Recommendation {city of Carlsbad BACKGROUND JULY 2017 Governor signs multiple housing bills to support acceleration of housing production JULY 2021 City updates the General Plan Housing Element to include Program 1.2 “Promote development of Accessory Dwelling Units” Objective e: Develop four ADU plan sets JUNE 2021 HCD Approves the City’s LEAP Grant application 3 JAN. 2021 City Council approves LEAP Grant application submittal to fund projects that expedite housing production 0 0 0 {city of Carlsbad Grant funds received through reimbursements and appropriated in the General Fund LEAP grant award of $500,000 will fund 3 city projects: 1. Permit-Ready Accessory Dwelling Unit Program ($120,000) 2. Housing Element Update ($220,000) 3. Village and Barrio Master Plan Objective Design Standards ($160,000) Grant funds must be expended by Sept. 2023 LOCAL EARLY ACTION PLANNING (LEAP) GRANT { City of Carlsbad PERMIT-READY ADU PROGRAM Pre-Approved ADU Plan Sets Reduced ADU Fees Streamlined Permitting Process {city of Carlsbad PROFESSIONAL SERVICES AGREEMENT WITH DESIGN PATH STUDIO July 2021 –Staff issued a request for proposals in accordance with CMC Section 3.28.060.A August 2021 –Design Path Studio selected. Currently working on similar projects for other local jurisdictions Scope of Work Task 1: Permit-Ready ADU Plans Task 2: Streamline Permitting Process Task 3: ADU Ordinance + Program Documents Task 4: Public Outreach + Meetings {city of Carlsbad STAFF RECOMMENDATION City Council adopt a resolution approving: Agreement for professional services with Design Path Studio; Appropriate grant funding in the amount of $120,000 to the General Fund to implement the program in FY 2021-22 7 {city of Carlsbad