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Home My WebLink AboutC-8623-1 - Local Government Planning Support Grants Program Funds (LEAP)June 30, 2020 LEAP Grant Review Team Department of Housing and Community Development Division of Housing Policy Development 2020 West EI Camino Avenue, Suite 500 Sacramento, CA 95833 CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment RE: City of Newport Beach Application to Partake in the LEAP Grant Program Dear LEAP Grant Review Team, First and foremost, thank you for the opportunity to work together as part of the LEAP Grant Program. The City appreciates HCD staff's time in preparing for submitting this application, as well as staff's time in reviewing it. Please find enclosed a complete and compiled application package, including: • The full application, executed by City Manager Grace Leung. • Attachment 1: Project Timeline and Budget • Attachment 2: Nexus to Accelerating Housing Production • Attachment 3: Required Resolution Template • Government Agency Taxpayer ID Form • Supporting Documentation Section C (Project Description) of the application package discusses the City's request in a concise manner. We would like to stress this software is filling a huge gap for the City's development services team and also that it is no simple project. The City has 26 years of legacy permitting and entitlement data using a Permits Plus system, which has been highly customized by our talented IT folks. A cheaper "out-of-the-box" solution is not an option for the City, as it would severely downgrade current service levels. In fact, the City received two other proposals for similar systems each at $3.1 M. The new $1.5M software will provide enhanced communication across all departments and will eliminate many inefficiencies that currently exist. It will also provide an online portal for customers to submit projects digitally, which will be a tremendous improvement. As we anticipate a fairy high RHNA allocation, as compared to our 5th Cycle number, the City places very high importance on this upgrade. It is an imperative improvement to move our development services forward while streamlining processes and accelerating production of new units of varying types and income limits. As just a few examples of customer improvements once this software is implemented: • a homeowner could apply for and obtain all necessary permits for an accessory dwelling unit or a junior accessory dwelling unit without even stepping foot outside his or her home. an out-of-state developer would no longer need to send hardcopies of plans through a courier service that takes a tremendous amount of time and cost with back -and -forth submittals and returns. applicants can submit and process any and all housing development applications through the online portal and the public can better track all development in the city. All in all, the City is requesting to subsidize less than 40 percent of this replacement project with grant funds from HCD. Over the past couple months, the City took part in two web presentations on the topic and it was made very clear that LEAP Grant funds could be used to supplement or enhance projects already awarded SB 2 Grant funds. There was no mention of a project's desirability or lack thereof when it comes to pursuing additional funding. Operating under that guidance, this application was brought to our City Council for authorization with budget amendments already approved and put in motion in early June. As a note, this Council agenda item was prepared prior to the email received on May 29, 2020 about technical assistance for the program. Shifting gears on the application would mean taking it back to City Council for review and making additional budgetary amendments. The City appreciates your consideration of its application for this impactful project. We look forward to working alongside HCD staff to make any necessary refinements. Please do not hesitate to contact me directly at 949-644-3253 or by email at bzdeba(@newportbeachca.gov should you have any questions. Thank you again and take care. Sincerely, *n'oba, AICP A. Applicant Information and Certification Applicant (Jurisdiction) City of Newport Beach Applicant's Agency Type Local Government Applicant's Mailing Address 100 Civic Center Drive City Newport Beach State California Zip Code 92660 County Orange Website www.newportbeachca.gov Authorized Representative Name Grace Leung Authorized Representative Title City Manager Phone 949-644-3001 Fax - Email gleung@newportbeachca.gov Contact Person Name Benjamin Zdeba Contact Person Title Senior Planner Phone 949-644-3253 Fax - Email bzdeba@newportbeachca.gov Proposed Grant Amount $ 300,000 Pursuant to Health and Safety Code Section 50515.03 through (d) of the Guidelines, all applicants must meet the following two requirements to be eligible for an award: 1. Does the application demonstrate a nexus to accelerating housing Yes Fil No 1-1 production as shown in Attachment 1 ? 2. Does the application demonstrate that the applicant is consistent Yes 101 No ❑ with State Planning or Other Priorities; Attachment 2? Is a fully executed resolution included with the application package? Yes Fm] No 1-1 Does the address on the Government Agency Taxpayer ID Form Yes No ❑ exactly match the address listed above? Is the applicant partnering with another eligible local government entity? If Yes, provide a fully executed copy of the legally binding Yes F No Fm agreement. As the official designated by the governing body, I hereby certify that if approved by HCD for funding through the Local Early Action Planning Program (LEAP), the City of Newport Beach assumes the responsibilities specified in the Notice of Funding Availability and certifies that the information, statements and other contents contained in this application are true and correct. Signature: Name: Grace Leung Date: 0 6 1 30I 2Q20 Title: City Manager LEAP NOFA Application Rev. 1/24/2020 Page 3 of 14 B. Proposed Activities Checklist Check all activities the locality is undertaking. Activities must match the project description. Rezoning and encouraging development by updating planning documents and zoning ordinances, ❑ 1 such as general plans, community plans, specific plans, implementation of sustainable communities' strate ies, and local coastal programs _ 2 ❑ Completing environmental clearance to eliminate the need for project -specific review Establishing housing incentive zones or other area based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article 10.10 (commencing 3 ❑ with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code 4 ❑ Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents Planning documents to promote development of publicly owned land such as partnering with other 5 ❑ local entities to identify and prepare excess or surplus property for residential development 6 FE—] Revamping local planning processes to speed up housing production 7 ❑ Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code Planning documents for a smaller geography (less than jurisdiction -wide) with a significant impact ❑ on housing production including an overlay district, project level specific plan, or development 8 standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas Rezoning to meet requirements pursuant to Government Code Section 65583(c)(1) and other 9 ❑ rezoning efforts to comply with housing element requirements, including Government Code Section 65583.2(c) (AB 1397, Statutes of 2018) Upzoning or other implementation measures to intensify land use patterns in strategic locations 10 F—] such as close proximity to transit, jobs or other amenities Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation 11 ❑ Committee/Housing Community Development Opportunity Area Maps); Establishing Pre -approved architectural and site plans ❑ Preparing and adopting housing elements of the general plan that include an implementation 12 component to facilitate compliance with the sixth cycle RHNA Adopting planning documents to coordinate with suballocations under Regional Early Action 13 ❑ Planning Grants (REAP) that accommodate the development of housing and infrastructure and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation 14E:1Zoning for by -right supportive housing, pursuant to Government Code section 65651 (Chapter 753, Statutes of 2018) 15 ❑ Zoning incentives for housing for persons with special needs, including persons with developmental disabilities 16 ❑ Planning documents related to carrying out a local or regional housing trust fund Environmental hazard assessments; data collection on permit tracking; feasibility studies, site 17 ❑ analysis, or other background studies that are ancillary (e.g., less than 15% of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production 18 ❑ Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production 19 Establishing Prohousing Policies LEAP NOFA Application Rev. 1/24/2020 Page 4 of 14 C. Project Description Provide a description of the project and each activity using the method outlined below, and ensure the narrative speaks to Attachment 1: Project Timeline and Budget. a. Summary of the Project and its impact on accelerating production b. Description of the tasks and major sub -tasks c. Summary of the plans for adoption or implementation Please be succinct and use Aoaendix A or B if more room is needed. For the past 26 years, City staff has used Permits Plus for tracking all development services, including planning review and building permit issuance. The Newport Beach City Council authorized the execution of a software license agreement with Tyler Technologies, Inc. to replace the outdated land management software The new software, Energov, will expedite the City's processes by providing a more modernized and integrated system, and will sustain and advance the City into the next generation of development and customer services. As technology has advanced tremendously, Energov is expected to greatly improve the City's efficiency in tracking and streamlining all development service permits and projects, including building permits for new dwelling units. Furthermore, the City is currently unable to offer any online interface, which severely limits the City in offering many services the development community now expects. Energov will allow for a robust online platform that creates a more friendly application and tracking process for the community with any proposed project. As demonstrated by Attachment 1, this project is extremely cumbersome and intensive. It should be noted that the costs shown are only those direct costs incurred by consultant fees - the amount of City staff time devoted to this project is extremely high and not shown in the overall project budget. The first implementation phase will be to establish the system for Building, Planning, Code Enforcement, Public Works, and to create a Web Portal. As the most critical phase with the highest impact on development services, including those for housing projects, the City is requesting the grant funding to help offset only a fraction of this component. While the City's permitting services currently operate at a high level, the Energov system will improve communication across departments removing the inefficiencies that exist with the outdated Permits Plus system. The end result will be modernized expedited permit processing. It is anticipated building permit review time will decrease by at least 10%. and entitlement review time is expected to decrease by 20%. This improvement is imperative, especially with the anticipated RHNA allocation. The second phase will be to extend the platform for use by Recreation and Senior Services, Fire Prevention, the City's Real Property team. The third and final phase will be to implement electronic plan review. The overall implementation schedule for all three phases is anticipated to take 36 months with an overall project cost of approximately $1.5M. LEAP NOFA Application Rev. 112412020 Page 5 of 14 D. Legislative Information District # 48 Federal Congressional District State Assembly District State Senate District Harley Rouda 74 Assembly Member Cottie Petrie -Norris 37 I Senator John M. W. Moorlach Applicants can find their respective State Senate representatives at https://www.senate.ca.gov/, and their respective State Assembly representatives at https://www.assembly.ca.gov/. LEAP NOFA Application Rev. 1/24/2020 Page 6 of 14 Attachment 1: Project Timeline and Budget Task Est. Cost See attached. Begin End Deliverable Notes Total Projected Cost $ 10 Include high-level tasks, major sub -tasks (Drafting, Outreach, Public Hearings and Adoption), budget amounts, begin and end dates and deliverables. If other funding is used, please note the source and amount in the Notes section. LEAP NOFA Application Rev. 1/24/2020 Page 7 of 14 Attachment 1: Project Timeline and Budget City of Newport Beach LEAP Grant Funding Application Task Estimated Cost LEAP Grant Amount Begin End Deliverable Notes Phase 1: Building, Planning, Code Enforcement, Public Works, and Web Portal $ 1,066,573 $ 300,000 10/01/2019 08/01/2021 Replace permit modules for development services and create online portal for customers. This line item is overall Phase 1 project cost. There are three phases to the project with a total cost of $1,500,000. Stage 0: Software Delivery $ 328,373 $ - 08/16/2019 08/16/2019 Initial sotware purchase $310,000 subsidized through SB 2 grant funding SB2 Grant Stage 1: Project Initiation & Planning $ 45,461 $ 08/16/2019 09/16/2019 Preparation of an implementation project management plan and identification of a project plan and schedule Tyler intenal coordination &planning activities completed Hardware installed System infrastructure complete and verified Implementaion Management Plan delivered Project plan/schedule delivered; dates confirmed Stakeholder presentations completed All costs covered Tyler Internal Coordination & Planning System Infrastructure Planning Project and Phase Planning Project Schedule Stakeholder Presentation Control Point 1: State Acceptance Stage 2: Assess & Define and Training 151,559 $ 09/16/2019 10/15/201 9 Completed analysis and review of initial questionnaires, development of prototype, data conversion summary, customization spec documents, completed forms options/packages, and system deployment Tyler software is installed Assessment training is complete Required form information complete Current/future state analysis complete Prototype cases developed by Tyler Data conversion mapping is complete by City's General Fund budget. Assessment Training Current/Future State Analysis Prototype Development Data Conversion Planning & Mapping$ 3rd Party Data Exchange Planning Modification Analysis & Specification Forms & Reports Planning System Deployment Control Point 2: Stage Acceptance Stage 3: Build & Validate $ 190,300 $ 20,000 10/15/2019 08/01/2020 Initial data conversion of legacy permit software data, configuration of Energov platform, installation of City- ordered customizations, delivery of standard forms and reports Configuration and power user training completed Application configuration completed Standard forms and reports delivered for testing Data conversions delivered Standard 3rd party integration delivered Customizations delivered for testing The City Configuration &Power User Training Data Conversion Build & Validation 3rd Party Data Exchange Validation Modification Delivery & Validation Forms &Reports Validation Control Point 3: Stage Acceptance Stage 4: Final Testing and Training $ 198,062 $ 198,062 08/01/2020 12/01/2020 Provide a production cutover checklist and a user acceptnce testing plan for final testing and training on system Production cutover checklist delivered and reviewed Customizations tested and accepted Standard forms and reports tested and accepted User acceptance testing completed All training complete requests LEAP Grant funding for this portion. Cutover Planning User Acceptance Testing End User Training Control Point 4: Stage Acceptance Stage 5: Production Cutover $ 116,442 $ 81,938 12/01/2020 01/30/2021 Produce final data conversion of legacy permit software data and preparation of transition and support documents outlining ongoing strategy for Tyler support Final data conversions delivered All processing being done in Tyler production Post -cutover functional issues resolved i Transition to Tyler support is completed Post -live services scheduled Final Data Conversion Production Processing & Assistance Tranistion to Tyler Support Schedule Post Production Services Control Point 5: Stage Acceptance Stage 6: Phase/Project Closure $ 171,676 $ Provide comparison of contract scope and project budget All outstanding phase or stage projects documented and assigned, all Tyler deliverables complete All costs covered Close Phase/Project Control Point 6: Stage Acceptance Phase 2: Special Events Permit, Recreation, Fire Prevention, Real Property $ 133,980 $ Phase 2 out of purview for LEAP Grant funding by City's General Fund Phase 3: Electronic Plan Review $ 20,000 $ Phase 3 out of purview for LEAP Grant funding budget. Project Management Consultant $ 200,000 $ Project mngr. out of purview for LEAP Grant funding Total LMS Project Cost $ 1,555,853 Amount Subsidized by Grants $ - $ 610,000 39%1 1 Attachment 2: Application Nexus to Accelerating Housing Production Applicants shall demonstrate how the application includes a nexus to accelerating housing production by providing data regarding current baseline conditions and projected outcomes such as a reduction in timing, lower development costs, increased approval certainty, increases in number of entitlements, more feasibility, or increases in capacity. An expected outcome should be provided for each proposed deliverable. If necessary, use Appendix B to explain the activity and its nexus to accelerating housing production. Select at least one Timing (e.g., reduced number of processing days) Development cost (e.g., land, fees, financing, construction costs per unit) Approval certainty and reduction in discretionary review (e.g., prior versus proposed standard and level of discretion) Entitlement streamlining (e.g., number of approvals) Feasibility of development Infrastructure capacity (e.g., number of units) Impact on housing supply and affordabilitv (e.a.. *Baseline **Projected ***Difference Notes 10% decrease As projects are very different in permit and require varying amounts of time, baseline and projections issuance timing are difficult to ascertain. 20% decrease in 'As projects are very different entitlement and require varying amounts of time, baseline and projections processing timing are difficult to ascertain. *Baseline — Current conditions in the jurisdiction (e.g. 6 -month development application review, or existing number of units in a planning area) **Projected — Expected conditions in the jurisdiction because of the planning grant actions (e.g. 2 -month development application review) ***Difference — Potential changeresulting from the planning grant actions (e.g., 4 -month acceleration in permitting, creating a more expedient development process) LEAP NOFA Application Rev. 1/24/2020 Page 8 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 1 of 3) Applicants must demonstrate that the locality is consistent with State Planning or Other Planning Priorities by selecting from the list below activities that are proposed as part of this application or were completed within the last five years. Briefly summarize the activity and insert a date of completion. State Planning Priorities Date of Completion Brief Description of the Action Taken Promote Infill and Equity Rehabilitating, maintaining, and improving existing infrastructure that supports infill development and appropriate reuse and redevelopment of previously developed, underutilized land that is presently served by transit, streets, water, sewer, and other essential services, particularly in underserved areas. or suaaort strategies to facilitate opao on Protecting, preserving, and enhancing the state's most valuable natural resources, including working landscapes such as farm, range, and forest lands; natural lands such as wetlands, watersheds, wildlife habitats, and other wildlands; recreation lands such as parks, trails, greenbelts, and other open space; and landscapes with locally unique features and areas identified by the state as deserving special protection. 1 / 13/ 17 City's Coastal Land Use Plan was originally certified in 2005. City worked w/ Coastal Comm. staff to get the Local Coastal Program Implementation Plan certified in 2016. a variety of funding opportunities to promote resource protection in communities. encourage trricient ueveiopment vatterns Ensuring that any infrastructure associated with development, other than infill development, supports new development that does the following: LEAP NOFA Application Rev. 1/24/2020 Page 9 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 2 of 3) (2) Is built adjacent to existing developed areas to the extent consistent with environmental protection. (3) Is located in an area appropriately planned for growth. (4) Is served by adequate transportation and other essential utilities and services. (5) Minimizes ongoing costs to taxpayers. Other (describe how this meets subarea objective) Other Planning Priorities Affordability and Housing Choices Incentives and other mechanisms beyond State Density Bonus Law to encourage housing with affordabilityterms. Efforts beyond state law to promote accessory dwelling units or other strategies to intensify single- family neighborhoods with more housing choices and affordability, Upzoning or other zoning modifications to promote a variety of housing choices and densities. Utilizing surplus lands to promote affordable housing choices. Efforts to address infrastructure deficiencies in disadvantaged communities pursuant to Government Code Section 65302.10. Other (describe how this meets subarea objective) LEAP NOFA Application Rev. 1/24/2020 Page 10 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 3 of 3) Conservation of Existing Affordable Housing Stock Policies, programs or ordinances to conserve stock such as an at -risk preservation ordinance, mobilehome park overlay zone, condominium conversion ordinance and acquisition and rehabilitation of market rate housing_programs. 11/24/15 City awarded $4.21VI in funding towards rehabilitating an affordable 12 -unit housing project, remodeling existing 100 -unit senior apartment complex, and home repairs for very low-income seniors. Policies, programs and ordinances to protect and support tenants such as rent stabilization, anti - displacement strategies, first right of refusal policies, resources to assist tenant organization and education and `just cause" eviction policies. 7/1/18 Ongoing - City contracts with the Fair Housing Foundation. Holds quarterly workshops offered in the City that educate landlords and tenants of fair housing law. Also helps with dispute resolution. Other (describe how this meets subarea objective) Climate Adaptation Building standards, zoning and site planning requirements that address flood and fire safety, climate adaptation and hazard mitigation. 3/21/19 City has adopted the latest FEMA maps and updated its Floodplain Management Ordinance. Long-term planning that addresses wildfire, land use for disadvantaged communities, and flood and local hazard mitigation. 5/10/16 City's Local Hazards Mitigation Plan comprehensively updated to comply with Federal law while including the latest information on existing and potential local hazards. ---_ Community engagement that provides information and consultation through a variety of methods such as meetings, workshops, and surveys and that focuses on vulnerable populations (e.g., seniors, people with disabilities, homeless, etc.). 5/14/19 City Council created Homeless Task Force to work with the community to create a vision and plan responding to the issues surrounding homelessness in Orange County and Newport Beach. Other (describe how this meets subarea objective) Certification: I certify under penalty of perjury that all information contained in this LEAP State Planning and Other Planning Priorities certification form (Attachment 2) is true and correct. Certifying Officials Name Certifying Official's Title &C, N:5 M I A njt . J:p C. S h SErJ 10 P��. PLAN 14 E Certifying Official's Signature: IACI 6 Date: qqq IZOL-0 UVL,/ LEAP NOFA Application Rev. 1/24/2020 Page 11 of 14 RESOLUTION NO. 2020-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING AN APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANTS PROGRAM FUNDS WHEREAS, pursuant to Health and Safety Code 50515 et seq., the Department of Housing and Community Development ("Department") is authorized to issue a Notice of Funding Availability ("NOFA") as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the Local Early Action Planning Grants Program or "LEAP"); WHEREAS, the City Council of the City of Newport Beach ("City") desires to submit a LEAP grant application package on the forms provided by the Department ("Application"), for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing needs assessment; and WHEREAS, the Department issued a NOFA on January 27, 2020, in the amount of $119,040,000 for assistance to all California jurisdictions. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby authorize and direct the City Manager to apply and submit to the Department the Application. Section 2: In connection with the LEAP grant, if the Application is approved by the Department, the City Manager is authorized to enter into, execute, and deliver on behalf of the City, a State of California Agreement ("Standard Agreement") for the amount of three hundred thousand dollars ($300,000), and execute all other documents required or deemed necessary or appropriate that are related in any way thereto, including but not limited to, amendments to the standard LEAP grant agreement, subject to form approved by the City Attorney. Resolution No. 2020-54 Page 2 of 3 Section 3: The City shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. The City hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Resolution No. 2020-54 Page 3 of 3 Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9th day of June, 2020. ATTEST: City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney Will O'Neill Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2020-54, was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 91h day of June, 2020; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of June, 2020. so,�1,,,,..o�I111I Leilani I. Brown City Clerk Newport Beach, California �LIT0 Appendix A Although not included in the budget, the City has also contemplated requesting LEAP grant funding for the following: 1) The creation and implementation of objective design and development standards. The estimated recovery cost for staff's time (and possibly that of a consultant) for efforts in developing these standards with community buy -in is $150,000 2) Pre -approved architectural and site plans for creating ADUs on eligible lots. The estimated recovery cost for staff's time (and possibly that of a consultant) for efforts in developing these plans is $50,000. 3) Additional updates to the Housing Element related to policies encouraging housing production and an increased affordable housing stock. The estimated recovery cost for this effort is $100,000. LEAP NOFA Application Rev. 1/24/2020 Page 13 of 14 State of California Financial Information System for California (FI$Cal) ��I$Cai GOVERNMENT AGENCY TAXPAYER ID FORM 2000 Evergreen Street, Suite 215 Frnada! Information System for California Sacramento, CA 95815 www.fiscal.ca.gov 1-855-347-2250 The principal purpose of the information provided is to establish the unique identification of the government entity. Instructions: You may submit one form for the principal government agency and all subsidiaries sharing the same TIN. Subsidiaries with a different TIN must submit a separate form. Fields bordered in red are required. Hover over fields to view help information. Please print the form to sign prior to submittal. You may email the form to: vendors@fiscal.ca.gov, or fax it to (916) 576-5200, or mail it to the address above. Principal Government Agency Name Remit -To Address (Street or PO Box) City City of Newport Beach 100 Civic Center Drive Newport Beach State CA Government Type: ❑■ City ❑ County Special District ❑ Federal Other (Specify) Zip Code+4 92660-3267 Federal 95-6000751 Employer Identification Number (FEIN) List other subsidiary Departments, Divisions or Units under your principal agency's jurisdiction who share the same FEIN and receives payment from the State of California. Dept/Division/Unit Complete Name Address Dept/Division/Unit Complete Name Address Dept/Division/Unit Complete Name Address Dept/Division/Unit Complete Name Address Contact Person Benjamin M. Zdeba Title Senior Planner Phone number 949-644-3253 _ E-mail address bzdeba@newportbeachca.gov Signature/yail Date 06/30/2020 TO: FROM CITY OF NEWPORT BEACH City Council Staff Report April 23, 2019 Agenda Item No. 16 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Dan Campagnolo, Systems and Administration Manager Jackie Luengas-Alwafai, Informational Technology Manager Anthony Nguyen, Purchasing Agent PHONE: 949-644-3231 TITLE: Software License Agreement with Tyler Technologies Inc. for Replacement of the City's Land Management System ABSTRACT: The Community Development Department (CDD) and the Information Technology (IT) Division have concluded a two-year Request for Proposal (RFP) and selection process for a full replacement of the City's 25 -year old, outdated land management software, Permits Plus. Permits Plus is used by City staff to track development service permits, plans reviewed, and code enforcement and building inspections. Staff is recommending the City Council contract with Tyler Technologies Inc. to provide a replacement land management System (LMS) called Energov. Energov will provide for a more modernized and integrated system to sustain and advance the City into the next generation of development services and customer service. Additionally, for City Council's consideration is a professional services agreement with Park Consulting Group who will assist staff in providing project management services for the implementation of the Energov software. The cost for the entire project is $1,555,853, which is budgeted in the Information Technology Replacement Fund. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize the Mayor and City Clerk to execute a Software License and Professional Services Agreement with Tyler Technologies Inc. for the purchase, installation, and implementation services of a Land Management System in an amount not to exceed $1,355,853; and c) Authorize the Mayor and City Clerk to execute a Professional Services Agreement with Park Consulting Group, Inc. for project management services and change management processes in an amount not to exceed $200,000. 16-1 Software License Agreement with Tyler Technologies Inc. for Replacement of the City's Land Management System April 23, 2019 Page 2 FUNDING REQUIREMENTS The LMS purchase and implementation is a fixed cost of $1,355,853. The cost of using an experienced third party project management firm is $200,000. The total project cost is $1,555,853. The funds for the project have been allocated in the Permit System IT Replacement Fund Account No. 765-7657654. DISCUSSION: For the past 25 years, City staff has utilized Permits Plus for tracking development services such as building permit issuance, building inspections, planning cases, code violations, and right-of-way encroachment permits. Although countless in-house customizations have sustained operations and customer service standards, they have been built around a core software that has now become antiquated. Permits Plus has reached the end of its life and has become incompatible with current versions of Microsoft operating systems. It does not offer any online capability, which limits the City in offering many services the development community now expects. Procurement Process The City released a formal RFP solicitation for a complete LMS replacement. The RFP was posted on the City's public procurement system (PlanetBids) and distributed directly to known providers of LMS solutions and implementations. The evaluation panel assigned to this RFP consisted of City staff from CDD and IT, representing subject matter and technical expertise. The evaluation panel was responsible for reviewing the following six proposals and rating them on technical factors. • Accela, Inc. ("Accela"); • HdL Software ("HdL"); • Sungard Public Sector ("Sungard") • Computronix, Inc. ("Computronix") • Online Solutions, LLC ("Online Solutions"); • Tyler Technologies Inc. ("Tyler") Interviews. Software Demonstrations and Due Diliaence Review Staff assessed the proposals and invited Accela, Computronix and Tyler to participate in an interview with the evaluation panel and to provide a proof -of -concept demonstration. This demonstration allowed each finalist an opportunity to show their respective LMS systems in a live environment to City staff and perform system duties using a functionality script developed by the City. This was a key demonstration as it served to confirm the abilities of each LMS system as described in each proposal. During this demonstration, City staff involved in the various functions affected by LMS, such as building permits, plan checks, GIS, and payment processing were invited to assess and evaluate each LMS demonstration. Following the proof -of -concept demonstration, Accela was removed from further consideration. Finally, Computronix and Tyler were invited to participate in "sandbox testing," which involved each finalist granting the City access to their respective LMS and enabling City staff to develop permits, run test transactions and fully assess staff's ability to configure aspects of the proposed systems. 16-2 Software License Agreement with Tyler Technologies Inc. for Replacement of the City's Land Management System April 23, 2019 Page 3 Reference Checks The evaluation panel also performed a due diligence review of Computronix and Tyler, including reference checks on all finalists, as well as live site visits with agencies that have implemented each LMS (City of Temecula for Tyler and Douglas County, Colorado for Computronix). The results from this comprehensive evaluation process can be found in the following table: Conclusion of RFP Process The evaluation panel identified Tyler's product Energov as the highest qualified proposer and most effective LMS solution to meet the City's needs. The evaluation panel reviewed the proposals, conducted interviews, and reviewed the proof -of -concept and sandbox testing demonstrations. The City currently uses a Tyler product, MuniFinancial, for its accounting and financial needs. The recommended Energov software can communicate with the MuniFinancial system, with the capability to share accounting numbers in one unified system. The Energov software is used by over 300 nationwide jurisdictions; 47 clients in California; 28 in Southern California and 6 in Orange County. The Energov product will advance the City into the next generation of development services, while improving internal coordination, as well as enhancing the customer experience through more online options and conveniences. Customers will be able to interact and access information in an updated Citizens Web Portal to request, apply and access permits, plans, and inspection activity from a single location. Inspection results will be paperless and updated in real time to the system. Internally, the system will consolidate fragmented procedures and standardize workflows to improve the application review process while managing caseloads with more enhanced reporting options. RFQ Process for LMS Project Management Services After the evaluation panel identified the Tyler LMS as the best fit for the City, staff began a concurrent procurement to retain a consultant to provide project management services related to implementing the new LMS and assisting the City with the change management process. A Request for Qualifications (RFQ) solicitation was developed and the specifications emphasized the ability to facilitate the implementation and change management processes for large LMS solutions at public agencies with a similar operational need as the City. The RFQ yielded five submittals, from the following proposers: 16-3 Maximum Points Accela Computronix Tyler Proposal Score 200 138 148 135 Proof of Concept Score 50 25 38 36 Sandbox Testing Score 50 N/A 44 46 Cost Score (Total Startup Costs) 200 85 ($3,119,523) 84 ($3,155,330) 200 ($1,355,853) Total Score 500 248 314 417 Overall Rank 3 2 1 Conclusion of RFP Process The evaluation panel identified Tyler's product Energov as the highest qualified proposer and most effective LMS solution to meet the City's needs. The evaluation panel reviewed the proposals, conducted interviews, and reviewed the proof -of -concept and sandbox testing demonstrations. The City currently uses a Tyler product, MuniFinancial, for its accounting and financial needs. The recommended Energov software can communicate with the MuniFinancial system, with the capability to share accounting numbers in one unified system. The Energov software is used by over 300 nationwide jurisdictions; 47 clients in California; 28 in Southern California and 6 in Orange County. The Energov product will advance the City into the next generation of development services, while improving internal coordination, as well as enhancing the customer experience through more online options and conveniences. Customers will be able to interact and access information in an updated Citizens Web Portal to request, apply and access permits, plans, and inspection activity from a single location. Inspection results will be paperless and updated in real time to the system. Internally, the system will consolidate fragmented procedures and standardize workflows to improve the application review process while managing caseloads with more enhanced reporting options. RFQ Process for LMS Project Management Services After the evaluation panel identified the Tyler LMS as the best fit for the City, staff began a concurrent procurement to retain a consultant to provide project management services related to implementing the new LMS and assisting the City with the change management process. A Request for Qualifications (RFQ) solicitation was developed and the specifications emphasized the ability to facilitate the implementation and change management processes for large LMS solutions at public agencies with a similar operational need as the City. The RFQ yielded five submittals, from the following proposers: 16-3 Software License Agreement with Tyler Technologies Inc. for Replacement of the City's Land Management System April 23, 2019 Page 4 • AEF Systems Consulting, Inc. • BerryDunn; • Exsilio Solutions • SDI Presence, LLC. • Park Consulting Group, Inc. The following table provides staff's ranking based upon experience, qualifications, technical familiarity and approach to LMS implementation project management from this analysis: Based on the scores indicated above, BerryDunn and Park Consulting Group, Inc. were identified as finalists and all other proposers were removed from further award consideration. City staff performed reference checks on both finalists, reaching out to public agency clients that have engaged with both companies for LMS implementation project management services. This review, combined with the panel's evaluation scores confirmed that while both companies are adept at performing the requested services, Park Consulting is the highest qualified proposer, distinguished largely due to their experience in managing projects specifically involving Tyler LMS, as well as their exemplary references from current and former clients such as the cities of Lake Forest, Fullerton, Temecula and Ventura. Total Project Costs The costs for the project are identified as follows: LMS Project Purchase Items AEF BerryDunn Exsilio Park Consulting SDI Presence, $482,353 Systems Estimated Travel Solutions $29,750 LLC Technical Score $0.00 $75,800 $75,800 Subtotal $767,950 (Maximum 100 61.25 80.00 25.00 88.75 56.25 Rank 3 2 5 1 4 Based on the scores indicated above, BerryDunn and Park Consulting Group, Inc. were identified as finalists and all other proposers were removed from further award consideration. City staff performed reference checks on both finalists, reaching out to public agency clients that have engaged with both companies for LMS implementation project management services. This review, combined with the panel's evaluation scores confirmed that while both companies are adept at performing the requested services, Park Consulting is the highest qualified proposer, distinguished largely due to their experience in managing projects specifically involving Tyler LMS, as well as their exemplary references from current and former clients such as the cities of Lake Forest, Fullerton, Temecula and Ventura. Total Project Costs The costs for the project are identified as follows: LMS Project Purchase Items Year 1 - FY2020 Year 2 - FY2021 Total Ener ov Software and Implementation $738,200 $482,353 $1,220,553 Estimated Travel $29,750 $29,750 $59,500 Ener ov Support $0.00 $75,800 $75,800 Subtotal $767,950 $587,903 $1,355,853 Project Management Park Consulting) $100,000 $100,000 $200,000 Total LMS Project $867,950 $687,903 $1,555,853 Project Oversight and Staffing With an implementation schedule of 24 months divided into three phases, each phase has a life -cycle that requires CDD involvement in the business process rules, discovery, planning, training, and testing. 16-4 Software License Agreement with Tyler Technologies Inc. for Replacement of the City's Land Management System April 23, 2019 Page 5 • Phase 1: Building, Planning, Code Enforcement, Public Works, and Web Portal • Phase 2: Special Event Permit — Recreation / Fire Prevention, and Real Property • Phase 3: Electronic Plan Review ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, staff recommends the City Council find this action is categorically exempt pursuant to CEQA Section 15303. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Software License and Professional Services Agreement with Tyler Technologies Inc. Attachment B — Professional Services Agreement with Park Consulting Group, Inc. 16-5