HomeMy WebLinkAboutIV(c)_Draft Revised Scope of Work for Kimley-Horn & AssociatesCommunity Development Department
CITY OF NEWPORT BEACH
COMMUNITY DEVELOPMENT DEPARTMENT
100 Civic Center Drive
Newport Beach, California 92660
949 644-3200
newportbeachca.gov/communitydevelopment
Memorandum
To: Chair Gardner and General Plan Update Steering Committee Members
From: Benjamin M. Zdeba, Principal Planner
Date: August 4, 2022
Re: Attachments 2 and 3 – Draft Revised Scope of Work for Kimley-Horn &
Associates and Draft Scope of Work Language for the Comprehensive Update
Request for Proposal (RFP)
________________________________________________________________
The enclosed documents are working drafts. Staff intends to have the General Plan
Update Steering Committee review the content to ensure that the appropriate themes and
topics are being conveyed adequately. Any spelling and grammatical errors will be fixed
prior to finalizing the documents.
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
Note: The following Scope of Work is intended to replace the entirety of “Task 3. Land Use Element
Amendments” in the City’s executed agreement with Kimley-Horn & Associates, Inc.
Task 3 Land Use and Noise Element Updates, and Housing Opportunity Overlays
The City Council is expected to adopt a statutorily compliant 6th Cycle Housing Element on September
13, 2022. As required by State Law and Housing Element Policy Actions 1A through 1G, the City must
provide zoning for housing development on sites identified in the Housing Opportunity Sites Inventory
within three years of Housing Element adoption. The total increase in housing density along with any
nonresidential intensity deemed desirable to include in the Land Use Element will necessitate a vote of
the electorate pursuant to Charter Section 423. The City intends to schedule the vote for the March
2024 primary election. To meet this goal, the City Council will need to approve the Land Use Element
by early December 2023, at the latest, to meet the requirements of the Elections Code. An
Environmental Impact Report and traffic study will be required to support a discretionary decision by
the City to approve the amendments.
The update of the Land Use Element will be primarily driven by the need to implement the Housing
Element to provide appropriate zoning for housing development for the Housing Opportunity Sites
identified within the Housing Element within this three-year timeframe.
The City must also consider increases in nonresidential intensity to support the added density to
accommodate local job growth and the provision of goods and services for future residents. Providing
local jobs, goods, and services proximate to housing will minimize future vehicle miles traveled and help
maintain an adequate tax base to support necessary governmental services for a growing City. The
location, amount, and type of amount of nonresidential uses will be influenced by existing land use
patterns, housing development trends and the projected needs for goods, services and jobs, availability
of infrastructure, and stakeholder input. Additional influences will be based on the market assessment
and fiscal analysis that will study the projected needs and economic effect on the City.
Some of the Housing Opportunity Sites are proximate to John Wane Airport (JWA) where the current
Land Use and Noise Elements and the Zoning Code prohibit them. The project will necessitate
amendments to these Elements and the Zoning Code to allow for future housing in the 65-70 dBA CNEL
noise contour from JWA. The amendments related to this noise issue must be carefully crafted to
provide protection of future residents from noise and other environmental factors attributable to JWA.
The Land Use Element includes a series of Community Character goals and policies for residential
neighborhoods, commercial districts, mixed-use districts, office and business parks and industrial
districts. Many of these policies require design qualities that are subjective in nature. The State requires
the City consider new housing development based upon objective standards. These policies must be
examined and modified accordingly. A desired approach is to create optional design guidelines based
upon these community character policies to ensure that property owners and developers are aware of
the community’s desired character as they design future projects. Additionally, it would be important
to include appropriate design guidelines for higher density housing and mixed-use development. These
guidelines would be reflective of the densities, including potential density bonus, provided for in the
adopted Housing Element.
Housing opportunity overlays (Overlays), or similar zoning strategies, for each of the various Housing
Element focus areas must be created within the same timeline of the Land Use Element update. Each
Overlay would include the Housing Opportunity Sites identified in the adopted Housing Element. The
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
Overlays must provide the identified densities, appropriate development standards, mitigation
measures, and processing regulations. The Overlays must be consistent with other existing General Plan
policies, or the policies must be amended.
The scope of work must include an assessment of other policies within the General Plan and the
development of necessary amendments to ensure internal consistency. The updated Land Use and
Noise Elements would be organized in the same manner as the currently adopted Elements, while the
Overlays or other needed amendments to the Zoning Code will be formatted within the existing
codification system of the Newport Beach Municipal Code.
Task 3.1 Public Meetings and Community Outreach
Meaningful public engagement is important in this update process; Public review and comment on the
draft amendments will be encouraged through a series of public workshops and General Plan Advisory
Committee (GPAC) meetings. Kimley-Horn & Associates (KHA) will also attend and provide support at
General Plan Update Steering Committee (GPUSC) meetings and monthly GPAC meetings.
Deliverables:
1. Preparation of a detailed summary and presentation of all proposed draft amendments as
agenda item(s) for up to seven public meetings; and
2. Preparation of a detailed summary and presentation at GPAC and GPUSC meetings as directed.
Task 3.2 Review of Current Land Use Element and Suggested Changes
KHA will review the current Land Use Element to identify changes to the policy framework that are
necessary to provide housing development in the focus areas as follows:
• 2,577 units in the Airport Area
• 1,107 units in the West Newport Area
• 521 units in the Dover-Westcliff Area
• 2,439 units in the Newport Center Area
• 1,530 units in the Coyote Canyon Area
Although each focus area has an associated target density shown above, the City may direct future
zoning strategies that are more or less than those identified targets in this Housing Element provided
the total unmet RHNA need by income category is accommodated. If future strategies deviate from the
targets expressed in this Housing Element but still meet the requirement to identify adequate sites to
accommodate unmet RHNA need, no amendment to the Housing Element would be required. The Land
Use Element must support this flexibility and must also set a maximum amount of residential density
that is consistent with Section 4 (Housing Plan) and Appendix B (Adequate Sites Analysis) of the 6th Cycle
Housing Element.
In conjunction with the Housing Element, KHA will comprehensively update the City’s Land Use Element
goals and policies. The updates will ensure internal consistency amongst the General Plan element
pursuant to state law.
Based on feedback received from the community, Planning Commission (or other Council-appointed
board, commission, or committee), and the City Council, KHA will propose new goals and policies to
help guide development citywide and in certain areas. These may include the Airport Area, West
Newport Mesa, Newport Center, and others. The entirety of the residential neighborhood and mixed-
use development policy frameworks should be revamped to ensure there are no conflicts with the
housing strategy in the Housing Element.
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
Deliverables:
1. A detailed written assessment and recommendation on how best to establish or modify goals
and policies to meet the Housing Element density goals, including a cap on unit allocations
when the City’s unmet RHNA need is satisfied;
2. Factoring the findings of the market assessment and fiscal and economic analysis, provide a
detailed written assessment and recommendation for incorporating additional nonresidential
uses. The recommendation shall include a special component;
3. Inventory of current Land Use Element goals and policies that need to change to support
housing redevelopment;
4. 3-Dimensional visual massing studies for each area of interest;
5. Up to two draft and two final Land Use Element Goals and Policies; and
6. Specific policy guidance for up to five distinct areas of Newport Beach.
Task 3.3 Update to Land Use Designation Descriptions
Based on the work efforts from Task 3.2 and the information from Task 3.4, KHA will update Land Use
designation descriptions to provide consistency with land use changes prompted by the 6th Cycle
Housing Element and to reflect additional nonresidential growth to support the new housing units. This
will include general descriptions of the purpose and intent of each land use designation and the
appropriate densities and intensities.
Deliverables:
1. Updated textual descriptions of land uses.
Task 3.4 Market and Fiscal Analysis
For this Task, KHA has contracted with Keyser Marston & Associates (KMA). KMA will provide an
overview of the market characteristics exhibited by the residential, office, industrial, hospitality and
retail uses in the market area. Based on the assessment of current market conditions KMA will identify
development opportunities and constraints for these land uses in the City and for seven areas of focus,
which include:
• Review real estate market conditions including: sales prices, sales activity/absorption in the
region, current rents, marketplace voids and recent/proposed developments.
• Collect population, household and employment growth projections for the market area and
region.
• Review current retail sales in the City, Market area and County.
• Review existing employment and business patterns in the County and the market area to gain
an understanding of the mix of jobs suited for new development and the demand they could
generate.
• Summarize countywide employment patterns and identify key industries with strong pay levels.
• Prepare a surplus/leakage analysis for the market area to identify the type and scope of retail
development that could be supported.
• Review sales prices for new and existing for-sale residential in the market area.
• Summarize current apartment rents, vacancy and demand by type of unit in the market area.
• Prepare residential and office demand projections, which will assist the team in identifying
potential development opportunities for the area.
• Contact brokers and developers active in the region, as their insights are invaluable for
assessing the current and future market conditions.
• Evaluate opportunities for mixed-use development, particularly in the Airport, Mariner’s Mile
and Dover-Westcliff focus areas.
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
• Evaluate recreational and marine-commercial opportunities for the Newport Center and
Mariner’s Mile focus areas.
• Evaluate medical office opportunities, in particular for the Newport Center and West Newport
focus areas.
• Evaluate the potential need for additional office development to replace office uses eliminated
and converted to residential use as well as to provide additional job opportunities for the City’s
anticipated growth.
For the existing general plan baseline conditions and three alternative scenarios, KMA will evaluate the
fiscal impact of the proposed land use options. KMA will utilize the currently available fiscal model
developed by others to conduct the fiscal analysis. It is anticipated that KMA will provide the
assumptions and inputs into the model and coordinate with the consultant who created the fiscal
model. Utilizing the City’s current fiscal model, this analysis will include:
• Projection of Annual Plan Revenues – KMA will estimate the gross annual recurring tax
revenues and subvention revenues to be generated by the build out of the general plan and
the alternative scenarios, which are allocated to the City’s General Fund over 20 years (excludes
non-General Fund Revenues). The major revenues anticipated to be quantified include the
following:
❖ City’s share of annual property tax revenues generated by the area;
❖ City’s subvention revenues (e.g., motor vehicle in-lieu fees);
❖ City’s share of sales tax revenues generated by the residential and commercial uses;
❖ Other revenue sources; and Transient occupancy tax revenues, if any.
• Projection of Annual Plan Service Costs – The second focus of the analysis is the assessment of
annual General Fund operating and maintenance costs related to providing services such as
police protection, public works, parks and recreation, and general administration, etc. The
major steps or tasks to identify costs are:
❖ Review and analyze the City’s budget, and other written materials to identify the cost
experience and current annual operating expenses incurred by the City in serving its
existing population. Identify applicable service standards in the General Plan.
❖ Confirm a set of basic cost and revenue assumptions derived from the City’s budget.
Deliverables:
1. Summary memorandum on the Market Assessment and Fiscal Analysis that includes:
a. A clear recommendation on the amount and type(s) of nonresidential uses necessary to
support and serve the growth in residential development as described in Task 3.5 below;
and
b. A fiscal and economic impact analysis of housing and nonresidential development assuming
likely development levels over the next ten years. The fiscal impact assessment must
identify the estimated impact to City costs and revenues. The economic impact assessment
must identify the estimated economic impact to the community in general.
Task 3.5 Rezonings
Consistent with the policy guidance identified in Tasks 3.2 and 3.3, the appropriate zoning mechanisms
will be developed for each area.
The City envisions most of the rezonings to be accomplished through residential overlays for each of
the Housing Element focus areas. Additionally, many of the 5th Element sites are currently zoned in one
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
of several mixed-use zones. In these cases, it may be appropriate to modify the existing mixed-use
zones rather than apply an overlay zone. The consultant will need to review these zones and prepare a
recommendation for the most efficient course of action to the City for approval prior to work on
developing a zoning strategy or overlay.
With residential overlays, or other zoning strategies, there must be a maximum amount of residential
density that is consistent with Section 4 (Housing Plan) and Appendix B (Adequate Sites Analysis) of the
6th Cycle Housing Element. As touched upon in Task 3.2, the City may direct and adopt future zoning
strategies that are more or less than the identified targets in this Housing Element provided the total
unmet RHNA need by income category is accommodated. No amendment to the Housing Element
would be required.
Also, as part of the development of the zoning overlays, there needs to be an allowance for residential-
supporting commercial and services where there may not exist any today. As an example, in the
Industrial (IG) District of the West Newport Area, nonresidential uses are somewhat limited; the historic
purpose and intent has been to provide an area for light manufacturing and industrial users. Over time,
this area has shown a propensity to transition away from industrial towards more trendy nonresidential
uses, including creative offices, coffee roasters, winery tasting rooms, and fitness facilities.
The following parcels will be targeted for rezoning or amendments to existing zoning regulations:
• Housing opportunity inventory sites
• Nonresidential sites deemed appropriate for support commercial or other nonresidential uses
Rezoning methods on these sites will be determined based on the following considerations:
• Existing “on the ground” land use
• Community and stakeholder feedback
• Planning Commission or other Council-appointed board, commission, or committee feedback
• City Council direction
• Policy guidance from Tasks 3.2, 3.3 and 3.4
• Market Assessment and Fiscal and Economic Analysis
Deliverables:
1. A written assessment and recommendation on how best to establish zoning overlays or other
zoning strategies to meet the Housing Element density goals including a cap on unit allocations
when the City’s unmet RHNA need is satisfied;
2. A written assessment and recommendation for the most efficient method for providing zoning
for 5th cycle increases in residential density;
3. A written assessment and recommendation for methods to incorporate increased intensities
of nonresidential uses within the various zoning districts, planned communities, and specific
plans to support the anticipated growth of the community;
4. Up to two draft and two final residential overlay zoning districts for each Housing Element focus
area and 5th Cycle sites. If it is decided by the City that the 5th Cycle sites should be
accommodated by amending existing zoning districts, up to two draft and two final ordinance
amendments related thereto; and
5. Up to two draft and two final series of ordinance changes necessary to implement increases in
nonresidential intensity as directed by the City.
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates
Task 3.6 Noise Element Update
To support new housing opportunities in the Airport Area, the Noise Element needs to be updated to
remove the prohibition on residential within the 65-70 dBA Community Noise Equivalent Level (CNEL)
area. KHA will provide recommendations on possible design considerations in higher noise areas
including design standards.
Deliverables:
1. Minimum required updates to allow residential in the 65-70 dBA CNEL area;
2. Suggested additional considerations for development within the higher noise areas; and
3. Up to two draft and two final series of ordinance changes for Title 20 (Planning and Zoning)
necessary to implement increases in nonresidential intensity in the 65-70 dBA CNEL area.
Task 3.7 General Plan Buildout Analysis
To assist in the development of the Housing Element and Circulation Element, a General Plan buildout
analysis will be conducted. The buildout analysis will first determine the baseline existing land use
conditions, including:
• Existing “on the ground” land use
• Buildout potential of existing land use policy
• Net change between “on the ground” land use and existing General Plan buildout
Once future land use changes are determined, a summary of buildout for the updated General Plan will
be developed. The buildout summary will include:
• Updated General Plan Land Use Capacities (theoretical and realistic)
• Comparison of Existing “on the ground” versus land use capacities
• Net Growth potential in dwelling units and non-residential square feet
Deliverables:
1. Electronic database of Buildout Analysis in Excel and GIS formats; and
2. Summary table of buildout analysis.
Task 3.8 Baseline Mapping/GIS Updates
Kimley-Horn will work with the City to obtain existing City GIS data and review City mapping protocol
and requirements. Kimley-Horn will use ArcView-compatible shapefiles and/or geodatabases from the
City for the development of the project’s base map and subsequent thematic maps. All maps will be
produced in ArcView and exported in a PDF format, and will identify the City boundary, Sphere of
Influence (SOI), and Planning Area.
After creating the initial base map, Kimley-Horn will provide a copy to the City for review and approval
prior to use for subsequent mapping work. At the conclusion of the project, Kimley-Horn will provide
an electronic database to the City containing all original data as well as project specific data layers
modified or created by Kimley-Horn, along with pertinent metadata documentation.
Deliverables:
1. Updated Land Use Map; and
2. Database of updated GIS information.
Task 3.9 Environmental Impact Report
Task 9 from the executed agreement is hereby incorporated by reference and will satisfy the
appropriate California Environmental Quality Act (CEQA) requirements related to updating the Land
Use Element and implementation through rezonings. The Project Description will be revised to include
any new nonresidential components that are identified through the Land Use Element review, including
the Market Assessment and Fiscal Analysis.
GP Update Steering Committee - August 8, 2022 Item No. 4c- Attachment 2 Draft Revised Scope of Work for Kimley-Horn & Associates