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HomeMy WebLinkAboutAgenda Bill 4.A 07/19/2010~ p,. L U~ aw '~ I85$ ~l ~~,vic~av Itevw #4.~1 DATE: July 19, 2010 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager SUBJECT: Resolution Authorizing an Extension of the Agreement for Planning Services with 1Vletropolitan Planning Group REC®1VIlVIENDA'I'I®N: It is recommended that the City Council approve and authorize the City Manager to execute an extension to the agreement with Metropolitan Planning Group to provide contract planning services to the City. BACKGROUND: In 2008-09, due to budgetary constraints, Community Development Department staffing was reduced from 23 to less than six FTE positions. Functions not directly tied to a source of permit or cost recovery revenue were cut back or eliminated, to match anticipated revenue. This restricted public counter hours and direct phone access, made staff available by appointment only, and curtailed Code revisions, "Green" programs, and Public Art program coordination. Programs such as flood plain administration and Code Enforcement were assigned to other departments. The Director resigned in May 2009, leaving a Senior Planner to process applications, coordinate the activities of one part time and two contract planners, and interface with the Building division and other departments. Since May 2009, Building has operated as a standalone division, and Advanced Planning has been handled by a second Senior Planner. Both report to the City Manager. In late Spring 2009, Staff evaluated alternatives to provide current planning services. It was determined that a fully contracted model appeared the most viable option to provide services within revenue constraints. Proposals were solicited from consulting firms to provide current planning services on acost-recovery basis. A one year contract was awarded to Metropolitan Planning Group (M-Group) in July 2009. M-Group was selected based on their understanding of the City's needs, cost recovery strategy, experience providing planning services in the Bay area, customer service orientation, and depth of staff available to support increases in Petaluma's workload. Reference checks with M-Group clients indicated high quality work, professionalism, responsiveness, and strong customer service skills. Agenda Review: Dept. Director City Attorney Finance Director- City Man M-Group provides the full range of services required of an in-house planning department. They operate from City Hall, which has allowed them to restore access to the public to four days per week with 32 hours of counter coverage per week. Principals provide on-site management at least two days per week, and coordinate with the City Manager's office and the City's senior management team. Three former staff members were hired by the M-Group, to provide continuity and institutional memory, and have been valuable in the transition from an in-house to a contracted program. In addition to the Principal, M-Group regularly utilizes three more planners to provide service to Petaluma, including a Senior Planner added to provide management direction in the absence of the Principal, as well as technical planning expertise. Organizationally, M-Group employs several more planners who can be drawn upon for additional support, depending on demand. M-Group coordinates with the Senior Planner in the City Manager's Office and contributes to advanced planning projects. M-Group initially managed work previously performed by outside contractors. Those projects were completed this past year, or have been absorbed by M-Group. Significant among these are the East Washington Place and Deer Creek Village projects. DISCUSSI®N: The agreement with M-Group currently provides for a one year term, which may be extended for three subsequent one-year periods. The current term expires July 31, 2010, and should be extended for at least one additional year. The economics that prompted the City's contracting for planning services do not appear to have appreciably improved, so a cost recovery-based planning program is as necessary now as it was a year ago. The City is not in financial position to re-staff an in-house department, nor is there time to do so without disrupting projects currently being processed. Such an effort would require four to six months of lead time, from policy decision, through recruitment and hiring, with no guarantee that all, or key positions, would be filled. For the sake of consistency, predictability, cost effectiveness, and continuity of services, a two year extension is desirable and is recommended for Council approval. It should be noted that while M-Group has dedicated seven individuals to the Petaluma contract, their actual time spent equates to 4.3 FTE's. This sort of flexibility is less easily achievable with in-house staff, making cost control more difficult as well. Moreover, M-Group has done a highly competent job of providing services to the City. It has done so within the City's expenditure limitations, and has made progress eliminating backlogs, processing applications, improving internal processes, and enhancing customer service. M-Group integrates well with City staff, and has improved communication and coordination with City departments. They are responsive to staff, Council, and public inquiries. They have also made strong effort to achieve cost recovery by staying current with billings and by reducing outstanding balances owed the City. M-Group prepared ayear-end summary of its activities. This information is provided in Attachment 1, and compares workload indicators for the past three years. The summary shows the drop in development activity that led to the elimination of the in-house staff, and that the trend continues through May 2010. It also shows, however, a high volume of counter visits and phone contacts, and a 64 percent increase in the number of planning commission meetings staffed during the fiscal year. In accepting this engagement, M-Group was asked to establish credibility with the community and the City Council, and to improve perceptions regarding customer service. They were also charged with expeditiously processing active applications to the appropriate decision points, and eliminating the backlog of inactive projects. Attachment 1 also provides a list of projects that were processed in 2009-10 and those currently being processed. Completing and processing these projects has reduced backlogs, and brought to decision points projects that have been in the pipeline for some time. The attachment also lists M-Group accomplishments for the past year, including those to improve internal processes and those which have improved customer service. As indicated in the report that accompanied the M-Group contract a year ago, no guarantees existed that M-Group could achieve full cost recovery. The relationship between the City and M- Group was based on a model that M-Group sought to perfect for application in other jurisdictions. It was felt that with sufficient development activity, the cost recovery model would work for M-Group, and would greatly limit General Fund exposure to the costs of current planning. The City's needs in this area have been met. M-Group limited its billings for non-cost recovery items to the $40,000 included in the City's 2009-10 budget. M-Group, however, indicates it has absorbed in excess of $160,000 in non-recovered costs to achieve that result. M-Group costs for the period through May 31, 2010 were $526,054. This amount was spread over Cost Recovery, Base Level, Plan Check, Building Counter and Special Project categories, with 87 percent of M-Group's support derived from cost recovery work. The City's base level payment of $40,000 accounts for another seven percent of M-Group's support, with the remainder derived from the combination of remaining sources. With respect to cost recovery, Finance records through May 31, 2009 show cost recovery billings paid to M-Group of $463,846. Related revenues for the same period were $456,841. This represents a 98.5 percent recovery rate. A full year's experience for 2008-09 shows costs of $403,089 supported by recovery of $181,532, a 45 percent rate of recovery under an in-house model. While M-Group's costs have been higher this year than in-house costs in 2008-09, recovery is more than doubled. As well and as indicated previously, office hours, counter service, and public access have been restored to 32 hours per week. M-Group has worked to bring current back-due cost recovery balances for which payment is expected to be made. They have also improved billing procedures to insure timely billing for reimbursements. M-Group's losses this past year are generally associated with those services required whether applications are processed or not. These include responding to counter and phone inquiries, M-Group's coordination with city departments on general planning matters and meetings with the City Manager and staff that are not properly attributable to an applicant's need for project processing. This latter grouping of activities would include discussions regarding active or pending litigation, or code enforcement activities that are not associated with an active application. Some of this imbalance can also be attributed to services that have been provided to potential applicants without fee, and to transition and start-up, and the relationship building that accompanies a new endeavor. Nevertheless, it is clear that the City's base level of service requirement exceeds the 40,000 that was budgeted in 2009-10. An amount of $75,000 is budgeted in 2010-1 1, and is expected to be sufficient for this purpose. M-Group has, as well, in the interest of fairness voluntarily written down a portion of project costs when warranted by facts. These write-downs are periodically necessary, given supporting circumstances, but would typically be absorbed by the General Fund. It is anticipated that M- Group will continue to make these periodic write-downs in the interest of customer relations and good will, and as long as they cannot be counted as a city expense. It is expected that the difference between M-Group's income and expenses in Petaluma will be less in the coming year. One-time costs associated with start-up will be eliminated; processes to J improve the efficiency of coordination have been implemented; revenues that are generated by M-Group, such as flat-fee permits issued at the planning counter will be directed to the M-Group for the services they are providing; and the City's support for base level services has been increased as previously noted. As well, City staff will need to decrease its reliance on the M- Group when those services are not cost recoverable. Regardless of these changes, M-Group's economic experience in Petaluma this past year, as well as in the other jurisdictions in which they are engaged, has been such that M-Group has needed to raise its rates in order to maintain its viability. Exhibit B to the attached Agreement dictates the rates that are proposed to be charged for FY 2010-11. Overall, the rates are increased five percent over FY 2009-10 levels, and are proposed to remain in place for the remainder. of the extended contract period. The fee structure also substitutes a Planning Technician for an Administrative Assistant, creates the category of Deputy Planning Manager, and establishes a new Planning Manager rate. These changes reflect current staffing, and promote a Senior Planner to a level that is consistent with that position's managerial responsibility. The attached contract extends the agreement with M-Group for a two year period, starting August 1, 2010 and ending July 31, 2012. It adjusts the rates that M-Group will charge for 2010- l land modifies the "baseline" threshold for recovery services to increase the amount from $300,000 per year.to $35,000 per month and establishes a percentage basis for Base Level Services billing in the event Cost Recovery Services billing falls below this amount. This amount corresponds closely with the past 11 month history and provides a balance of protecting the interests of both the City and the consultant. For all the reasons previous discussed, your approval of the agreement extension is respectfully requested. FINANCIAL IMPACTS: $75,000 is budgeted for FY 2010-11 to support the City's costs for base-level planning services. Remaining work performed under the proposed agreement will be conducted on a cost recovery and fee for service basis. ATTACHMENTS: 1. End of Year Summary 2. Resolution k ATTACHMENT 1 CITY OF PETALUMA - I1/B-GR®UP END OF YEAR SUMMARY Counter/Public Information FY 2009-2010 -Counter Visits: 1,327 Phone Calls: 1,119 (data collected from Sept. 2009 to May 2010) Plan Checks completed by Planning Division FY 2007-2008 -Plan Checks: 501 FY 2008-2009 -Plan Checks: 371 FY 2009-2010 -Plan Checks: 253 Over the Counter Planning Permits FY 2007-2008 -Planning Permits FY 2008-2009 -Planning Permits FY 2009-2010 -Planning Permits Submitted Planning Applications Home Occupation Permits 79 Fence Permits 112 Zoning Permits 5 Home Occupation Permits 116 Fence Permits 48 Zoning Permits 8 Home Occupation Permits 139 Fence Permits 28 Zoning Permits 5 FY 2007-2008 -Planning Applications: Received: 190 FY 2008-2009 -Planning Applications: Received: 74 FY 2009-2010 -Planning Applications: Received: 58 Public Hearings FY 2008-2009 No. of Planning Commission meetings staffed: 11 FY 2009-2010 No. of Planning Commission meetings staffed: 18 5 CITY ®F PETALUMA - M-GR®UP END OF YEAR SUMMARY Projects Processed in FY 2009-2010: Public Hearings: East Washington Place (10 public hearings), Silk Mill Hotel, Sunnyslope II, Sunny D Subdivision, North River Landing, Quarry Heights, Wilibee's Wine Tasting, Burdell Building, and the Birches. Staff Level Approvals: Petaluma Bounty, River Montessori Charter School, Riverhouse CUP, Aqus Cafe Live Entertainment, numerous Telecommunication Facilities, Community for Spiritual Living, Vine and Barrel, Lagunitas Beer Circus, Redwood Empire Electrical Training in existing industrial building, Lot Line Adjustments, Lot Mergers and Certificate of Compliance. Under Review: Davidon EIR, Haystack Mixed-Use Project, Sid Commons EIR, East Washington Place Appeal, Three Twins Noise Issue, Corona Road Subdivision, Deer Creek Project and EIR, Casino 101 Text Amendment, 230 Edith Street, Ferrin Subdivision, Sunnyslope II, St. Vincent's Right of Way, Beyond the Glory, and multiple preliminary project reviews. Process Improvements and Other Accomplishments: 1. Counter Open from 8 to 12 and 1 to 5 Monday thru Thursday. 2. All calls returned within 24 hours. Follow up a-mails to randomly selected counter customers to gauge customer satisfaction. 3. No cost preliminary meeting available to applicants. 4. Development of Departmental Policies to address frequent zoning code interpretation issues. 5. Development of standard templates to streamline preparation of Staff Reports, Conditions of Approval and Resolutions. 6. On-line time tracking for all staff with ability to generate detailed project reports for applicants. 7. Reduced outstanding Cost Recovery amounts due to City by over 50%. 8. Weekly staff meeting to improve communication and inter-Departmental coordination. 9. Working closely with IT to improve Community Development webpage and provide greater access to information. 10. Weekly tracking of Cost Recovery balances and prompt follow-up action taken. 11. Improved coordination with other city departments and Advance Planning function. 12. Conducted Planning Commission orientation. 13. Prepared and presented Planning Commission Rules and Regulations for adoption. 14. Implemented streamlined review and approval of minor projects in historic districts. 15. Organized and conducted GIS tutorial for 30 local realtors. 16. Collaborated with Advanced Planning to present Council work plan to Planning Commission. 17. Worked with Water Resource Conservation on text amendment for properties zoned Planned Community District (PCD). 18. Zoning Ordinance Text Amendment to implement consolidation of Planning Commission and Historic and Cultural Preservation Committee into a single reconstituted Planning Commission. K/ ATTACHMENT 2 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH METROPOLITAN PLANNING GROUP, INC. TO PROVIDE CURRENT PLANNING SERVICES WHEREAS, on July 12, 2009 the City Council approved and authorized the City Manager to execute on behalf of the City of Petaluma a Professional Services Agreement with Metropolitan Planning Group, Inc. to provide current planning services on a cost recovery basis; and WHEREAS, said agreement provided for cone-year term with allowance for additional extensions; and WHEREAS, Metropolitan Planning Group has provided current planning services for the City on a cost effective basis, has reduced the backlog of planning applications, has increased office hours and access to the public, and has improved customer service and planning processes; and WHEREAS, it is desirable to maintain these results, and continuity of planning. services for the coming two year period; and WHEREAS, Metropolitan Planning Group has proposed revisions to the scope of work and rate schedule referenced in the agreement; and WHEREAS, these revisions are necessary to maintain program improvements and continuity. NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council hereby approves and authorizes the City Manager to execute on behalf of the City of Petaluma an amendment to the Professional Services Agreement with Metropolitan Planning Group, Inc. dated July 21, 2009, extending the term of the agreement through July 31, 2012 and revising the associated scope of work and rate schedule, substantially in conformance with the Amendment No. 1 attached hereto as Exhibit A. 1 EXHIBIT A TO THE RESOLUTION AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PETALUMA AND METROPOLITAN PLANNING GROUP FOR PLANNING SERVICES The Professional Services Agreement between the City of Petaluma and Metropolitan Planning Group for Planning Services made and entered into on July 21, 2009 ("the Agreement") - by and between the City of Petaluma, a Municipal Corporation and a Charter City ("City") and Metropolitan Planning Group, Inc., a planning consultant ("Consultant") is hereby amended as follows, effective July 21, 2010: Services. Consultant shall provide the services as described in and in accordance with the schedule and terms set forth in the Revised Exhibit "A", dated July 13, 20.10 and attached hereto and incorporated herein ("Scope of Work"). 2. Compensation; Business Tax Certificate. Subsection A is amended as follows: A. For the full performance of the Services as described herein, City shall compensate Consultant for time billed, in accordance with the terms set forth in the revised Exhibit "B", dated July 13, 2010 and attached hereto and incorporated herein ("M-Group Rate Schedule"). The Group Rate Schedule attached hereto shall apply to the full two year term provided by this Amendment No. 1, as provided for in Paragraph 3 below. 3. Term. The term of the Agreement as modified by this Amendment No. 1, commences on the Effective Date and terminates on July 31, 2012, unless sooner terminated, in accordance with Section 4 of the Agreement. The Agreement may be renewed for up to one additional year. Any such extension period must be agreed on in writing through an amendment to this Agreement. At least 45 days prior to expiration date, Consultant shall provide written notice to City of Consultant's desire to renew for one additional year. It shall be within the City's sole discretion whether an extension shall be granted. Upon termination, any and all of City's documents or materials provided to Consultant and any and all of the documents or materials prepared for City or relating to the performance of the Services, shall be delivered to the City as soon as possible, but not later than fourteen (14) days after termination of the Agreement. 4. Except as expressly modified by this Amendment No. 1, all terms and conditions in the Agreement remain in full force and effect: THIS AMENDMENT NO. 1 is hereby executed this CITY OF PETALUMA City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Risk Manager APPROVED: Finance Director 1481684.1 day of , 2010. CONSULTANT By: Geoff Bradley, Metropolitan Planning Group Title Address City State Zip Taxpayer LD. Number Petaluma Business Tax Certificate Number EX>FIIBIT A 'I'O T'I~E AGREEIVIEN'I' SCOPE F WORK Our work approach is to provide comprehensive planning. services to the. City of Petaluma that include: 1. Base Level Planning Services 2. Cost Recovery Services Our approach is to provide Base Level Planning Services at cost or at "break even" level of billing rates. For Cost Recovery services, normal M-Group billing rates would apply. COALS In managing the entitlement process; our staff is committed to coordinating with City staff and other city departments, preparing the necessary documents and reports and making presentations to city staff, the public, the Planning Commission and the City Council. FOR THE' CITY OF PETALUIIAA PLANNING FUNCTION, IVI-GROUP 1n/ILL: o Maintain institutional memory and continuity of planning services to the community and applicants. ® Deliver outstanding .customer service. O Implement City Manager and City Council direction. O Provide a cost effective solution for city planning services. O Continue to maintain long-established relationships with the development community. flA-GROUP'S PLAN .FOR ACCOMPLISHING THE ABOVE TASKS: Q Utilize experienced M-Group staff in combination with existing Petaluma city planning staff and sub-consultants where feasible. ~ Provide: Base Level Services of one :planner to staff the counter and provide additional city planners fo perform Cost Recovery services on an as-needed basis. Q Provide part-time Administrative staff person. fl M-Group management to meet with City Manager, or~designee, at least once everyweek to receive overall. direction and feedback. d~ Utilize cost recovery and fee based planning. revenue as the primary funding mechanism. BASE LEVEL SE'R~/ICES M-Group will provide up to 32 hours per week for Base Level services (non-cost recovery work) at the' Associate Planner level and '16 hours per week for the Planning Tech position. An ~~ additional two hours per week of the Planning Manager will be provided as a Base Level service to provide general direction and coordination and for contract administration, for a total of 50 hours per week, (not to exceed 200 hours per month), as shown in the table below. 'T'itle TTours/Weelc Planning Tech 10 Associate Planner 32 Deputy Planning Manager 8 'Total ~Tours/Week 50 To provide the Base Level Services at cost, M-Group is assuining'miriimum Cost Recovery Services planning revenues of $35,000 per month. This level of revenue will allow for the Base Level service with the capacity to easily ramp up on an as-needed basis to deal with increased work load and permit activity. Cost Recovery revenues less than this amount will cause the Base Level work to be billed to the City on a percentage basis; i.e. if 90% of the .revenue is achieved, only 10% of the allocated Base Level work will be billed to the City. The City will be billed on a monthly basis for hours worked based on the attached rate ..sheet. COST RECOVERY SERVICES There are two types of fees for entitlements, a flat rate (Fee Based) or a deposit plus staff time and materials (Cost Recovery). The Cost Recovery system is for entitlements which .require a public hearing or are in general more complex to process. These applications require a deposit and a completed Agreement for Payment Form. A cost recovery application means that the applicant will be bulled for the full cost of processing the application based on staff time and materials over and above the amount of the deposit. For applications requesting. multiple entitlements, the deposit shall be the sum of the individual application fees and/or deposits. M-Group wild provide planners to do all, or most, of the City's cost recovery planning-work reimbursed at our normal. hourly rates. In this manner, the City is assured of a minimum acceptable level of planning service with little General Fund exposure. STAFFING SOLUTIONS FOR PETALUflAA For the City of Petaluma, we are able to provide both short and long term staff assignments to assist wth,day-to-day planning functions and meet peak workloads. Duties and tasks for Staffing Solutions includes day to day planning services; counter duty, processing small projects, project planning for large. projects,. executing special projects, performing research, writing staff reports, making public presentations and preparing resolutions and ordinances. Our Staffing Solutions for the City of Petaluma include the following tasks: 7. DEVELOPIVIEIVT REVIEUV M-Group will perform as the City's in-house planning staff from initial contact with the applicant through the granting of entitlements including supervisory and administrative services associated with the development review process. M-Group will be responsible for processing all applications for development approvals and permits, and conducting all related assessments, reviews and analyses; conferring. with applicants and other interested parties; coordinating application review with lead and responsible agencies, City staff in other departments and other consultants; developing and presenting staff reports to the Planning Commission or other advisory bodies and City Council. Our staff will work closely with the Building Division, the Code Enforcement staff and other City departments through the development review process. M-Group staff will help the applicant understand the City's land use regulations, development standards, design guidelines and the development review process while administering the City's General Plan and Zoning Ordinance. M-Group staff will also help facilitate private and public development. opportunities including conceptual review, site plan review and permit processing while fostering a neighborhood and business friendly climate responsive to the needs of the .Petaluma community. Our staff will provide administrative and supervisory services including, but not limited to assignment, supervision, tracking, and reporting on workload; agenda development, distribution, and all required public noticing; recording and maintaining meeting minutes; formal and informal follow up from commission, committee and City Council meetings; maintaining project files and contract management services. ~. EIVVIRONIVIENTAL PROCESS iVIAIVAGENIENT M-Group staff will be responsible for contract management for consultants. Contract management services include, but are not limited to cost recovery accounting, billing, collection, and reporting; and coordination with City staff responsible for contract administration. All of these services will be provided on a cost-recovery basis. s. PROJECT f~iANAGEIVIENT Our goal in project management is to ensure that the;applicant has a positive experience in dealing with the planning staff right from the point of contact through the entitlement process and to maintain current relationships through the successful completion of ongoing projects. In addition, all projects will be managed in a manner that ensures comprehensive review, timely completion of staff reports and consistency with. local and state requirements. ~~ a. COUNTER COVERAGE M-Group staff will provide the City of Petaluma with high quality professional services at the public counter. Our experienced staff will provide support at the Permit Center; conduct preliminary development review; answer public inquiries at the counter; attend phone calls related to zoning inquiries, permit status; respond to complaints; provide building permit clearances for zoning compliance purposes and mitigation monitoring, review Planning applications for completeness and conformance with the City's Zoning regulations and General Plan policies and interpret Planning Division goals and policies for citizens and project applicants. We will work with the City Manager in developing. a Permit Center Questionnaire/Survey to keep track of the level of customer satisfaction that the applicant receives from the Planning Staff and also to constantly improve the level of service provided by staff at the Public Counter. M=Group staff will provide staff assistance to the City's commissions and committees and associated groups, including but not limited to those listed below. Such assistance will include attendance at meetings, power point presentations, preparation of agendas, staff reports and minutes or meeting notes where required and other duties to facilitate conduct of the meetings. O City Council O Planning Commission O Site Plan and Architectural Review (SPAR) O Historic and Cultural .Preservation Committee O Neighborhood Groups O ~ Citizen Committees In addition, M-Group will provide the following services for the City, consistent with the RFP: O Provide counter assistance O Process all applications for development approvals and permits, and conduct all related assessments, reviews and analyses O Confer with applicants and other interested parties C) Coordinate application review with lead and responsible agencies, City staff in other departments, and independent consultants O Develop and present staff reports to the Planning Commission or other advisory bodies, and to the City Council O Work closely with the City's Building division for Zoning Ordinance conformance O Provide .Supervisory and Administrative services associated with development review, including but not limited to: assignment, supervision, tracking and reporting on workload; agenda development, distribution, and all required public noticing; recording and maintaining meeting minutes; formal and informal follow up from commission, committee and City Council meetings; maintaining project files; contract management for consultants and independent contract planning staff; cost recovery accounting, billing, collection, and reporting; and coordination with City staff responsible for contract administration. ~~ EXHIBIT B TO THE AGREEMENT N9-GROUP RATE SCHEDULE FOR BASE LEVEL SERVICES JO13 TI"hI,IJ 11~)flJRl~l lt:~"T l!_ Planning Tech $40 Assistant Planner $45 Associate Planner $55 Senior Planner $75 Deputy Planning Manager $90 Planning Manager $125 FOR COST RECOVERY SERVICES _ _ _ _ ___ _ .101 "1`@"1'~,E liO~1ZL,V RATE Planning Tech $63 Assistant Planner $79 Associate Planner $100 Senior Planner Deputy Planning Manager $1.31 $158 Planning Manager $175 1`~