City Council
MEETING DATE: 7/11/2018
TITLE:
Title
Professional Services Agreement with Terra Nova Planning & Research, Inc. for Fiscal Analysis and Annexation Study
E
FROM:
Leisa Lukes, Business Development Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize a Professional Services Agreement with Terra Nova Planning & Research, Inc. for Phase 1, preparation of a Fiscal Analysis and Annexation Study, and authorize the City Manager to sign the Agreement, with an option to include Phase 2, Annexation Activities, as an amendment to the Agreement conditioned upon City Council's direction at the completion of Phase 1.
Body
BACKGROUND:
As of November 2011, the Riverside Local Agency Formation Commission (LAFCO) had approved several City-initiated annexation applications resulting in the City's municipal boundary matching its sphere of influence (SOI) boundary. In seeking to identify an area in which the City could ultimately accommodate future growth, the City applied to LAFCO to expand its SOI. In 2011, LAFCO approvals expanded the City's SOI by 14.2 square miles. The City is now seeking consultant services to identify the fiscal feasibility of providing City services to this area for future annexation.
DISCUSSION:
The City ranks in the top three Coachella Valley cities in population and size with a population of approximately 54,000 and a municipal boundary that encompasses 22.5 square miles in area.
SOIs are used as a planning tool for agencies to conduct service and facility planning for areas it intends to serve in the future. According to LAFCO, a SOI is defined as "a plan for expansion of the probable physical boundary and service area of a local agency, as determined by the Commission."
A LAFCO-approved sphere expansion in 2011 added approximately 4,025 acres within unincorporated Riverside County to the City's SOI (Attachment 1, Area "A"). The southern two-thirds of this sphere area overlapped the Thousand Palms Community Planning Area. The area is generally located east of Da Vall Drive, north of Interstate 10, south of Edom Hill Landfill and west of Rio del Sol Road. The portion of the City that abuts this area to the west is known as "North City" consistent with the name of the specific plan that established zoning for that area. At the time this SOI was approved, there was no other existing SOI area located beyond the City's municipal boundaries and thus the expanded sphere provided the City with its only future growth area. The sphere area was generally vacant and undeveloped. It was anticipated that the City would seek to annex portions of the area in the future and to potentially provide zoning for the area through the North City Specific Plan.
In response to concerns expressed by the Thousand Palms community and at the direction of LAFCO, the City submitted a second SOI amendment application to LAFCO in 2011 to add the majority of the remaining Thousand Palms Community Planning Area to its sphere. This additional area comprised approximately 5,100 acres (Attachment 1, Area "B"). LAFCO subsequently approved this sphere application, bringing the total area within the City's SOI to 14.2 square miles.
In 2015, LAFCO approved a private annexation application (Attachment 1, "Messenger Annexation") to expand the City's municipal boundaries by approximately 682 acres. This area had been included within the City's approved SOI. It is generally located between I--10 and Varner Road, east of Da Vall Drive and west of Rio del Sol Road. The Crossings, a multi-tenant freeway commercial project, is currently under construction in this annexed area.
Fiscal Analysis and Annexation Study - City Council, at their Strategic Planning Session held on January 27, 2018, directed Staff to proceed with the required economic analysis related to the possible annexation of Thousand Palms and subsequent engagement with the community.
During the biennial budgeting process for Fiscal Years 17/18 and 18/19, the Fiscal Analysis and Annexation Study was assigned as a Project with funding of $50,000 for FY18/19. The biennial budget was adopted by the City Council on May 5, 2017. The City is now seeking a consultant to evaluate the feasibility of providing City services to the SOI area for future annexation (Phase 1). The consultant may also be contracted to perform the annexation activities that would expand the City's municipal boundaries (Phase 2). Phase 2, including extensive public outreach, would be conditioned upon City Council's determination at the conclusion of Phase 1.
Consultant Selection - On May 23, 2018, Staff issued a Request for Proposals (RFP) for Professional Services for Annexation Analysis and Public Outreach. The RFP was posted on the City's website and mailed (both US Mail and e-mail) to nine consulting firms having the necessary expertise.
Proposals in response to the RFP were accepted at City Hall through 5:00pm June 11, 2018. The City received a total of two responses. The respondents were Terra Nova Planning & Research, Inc. of Palm Desert, California, and MSA Consulting, Inc. of Rancho Mirage, California. A 5-member Selection Committee comprised of staff reviewed the proposals and deemed both to be responsive and qualified. As a result of Committee's review, meeting and discussion, the firm that was determined to best meet the project's specific requirements was Terra Nova Planning and Research, Inc. (Terra Nova). Terra Nova's proposal was clear, concise, comprehensive, and structured to meet the project's objectives. They are gaining an even greater knowledge of the City through their current work in updating the City's General Plan. Terra Nova also submitted the lowest qualified bid for both Phase 1 and Phase 2. Their proposal for Phase 1, including labor and expenses, is $50,980. Staff is requesting an additional 5 percent contingency.
City Council's direction to Staff at the conclusion of Phase 1 will determine the scope of work for Phase 2. Terra Nova estimates their cost for Phase 2 that would include annexation activities for the entirety of the City's remaining SOI area would be $311,310. The scope would require extensive public outreach and an Environmental Impact Report (EIR) consistent with the California Environmental Quality Act. Their estimate to complete annexation activities for a smaller portion of the SOI area, which may allow for a Mitigated Negative Declaration rather than an EIR, is $122,055. Staff has determined that the subconsultants identified by Terra Nova to complete Phase 2 activities are qualified to do so.
Economic Development Staff will be the lead for this project. Terra Nova will also work closely with Administrative Services, Community Development and the Police and Fire Departments.
Upon Council approval, the Agreement will be executed on July 12. Phase 1 is anticipated to be completed in October 2018. Prior to commencing Phase 2, Staff would negotiate an amendment to the Agreement for Council approval. The cost to complete Phase 2 has not been identified in the City budget.
FISCAL IMPACT:
$50,000 for Phase 1, Fiscal Analysis and Annexation Study, is funded in the FY18/19 budget. An additional $3,500 will be required to complete Phase 1.
ATTACHMENTS:
1. Map of Cathedral City Municipal Boundary and Sphere of Influence
2. Terra Nova Project Budget for Phase 1
3. Agreement for Services between the City of Cathedral City and Terra Nova Planning & Research, Inc.