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City Clerk's Office Item # R12
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: August 26, 2024
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Scott Hobson, Acting Director Planning and Community Development
SUBJECT: AN ORDINANCE APPROVING AMENDMENT NO. 1 TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
PUEBLO AND GRUEN GRUEN + ASSOCIATES, LLC, A LIMITED
LIABILITY CORPORATION IN THE STATE OF ILLINOIS, IN THE
AMOUNT OF $19,000 WITH $1,610 IN CONTINGENCIES TO UPDATE
THE STRATEGIC HOUSING ASSESSMENT COMPLETED IN
SEPTEMBER OF 2021
SUMMARY:
This Ordinance will amend the professional services agreement (Bid No. 20-052)
authorized by Ordinance No. 9890 to allow the City of Pueblo to update its Strategic
Housing Assessment. While the long-range demand for housing and the projections
within the Study are valid, the cost of housing and construction have escalated
dramatically in the last three years. As such, funding entities such as the Colorado
Housing and Finance Authority (CHFA) and the State Division of Housing no longer
consider the economics of the Study as an accurate representation of the market
conditions. Updating the Study will assist developers by reducing duplicative efforts,
saving development costs, and reducing development time.
PREVIOUS COUNCIL ACTION:
Council approved the Strategic Housing Assessment on March 8, 2021, through
Ordinance No. 9890.
BACKGROUND:
The Strategic Housing Assessment is an independent resource that allows developers
to validate their financial projections to banking institutions. The assessment aims to
quantify the demand for housing, estimate future demand, evaluate current market
conditions, and extrapolate future conditions, with regional pressures included, to
determine the feasibility and rate of return on investment for a proposed housing
project.
FINANCIAL IMPLICATIONS:
Funds for the Project are available in the following accounts:
HO2001 - $6,262
HO2210 - $15,348
BOARD/COMMISSION RECOMMENDATION:
The Community Commission on Housing and Homelessness identified and elevated
Housing.
STAKEHOLDER PROCESS:
Not applicable for this Ordinance.
ALTERNATIVES:
The City could choose not to fund an update to the study. Developers would then
individually bear the cost of a market assessment to obtain funding approval for their
respective project proposals.
RECOMMENDATION:
The Department of Planning and Community Development recommends approval of
the Ordinance
ATTACHMENTS:
1. Amendment No 1 to Prof Svcs Agreement between the City of Pueblo and Gruen
Gruen Bid No. 20-052
ORDINANCE NO. 10768
AN ORDINANCE APPROVING AMENDMENT NO. 1 TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE
CITY OF PUEBLO AND GRUEN GRUEN + ASSOCIATES, LLC,
A LIMITED LIABILITY CORPORATION IN THE STATE OF
ILLINOIS, IN THE AMOUNT OF $19,000 WITH $1,610 IN
CONTINGENCIES TO UPDATE THE STRATEGIC HOUSING
ASSESSMENT COMPLETED IN SEPTEMBER OF 2021
WHEREAS, there exists a need for quality affordable housing in the City of Pueblo; and,
WHEREAS, there exists a need to update the Strategic Housing Assessment completed
in September of 2021; and,
WHEREAS, the update to the housing assessment shall be thorough and serve as a
basis for making strategic and informed decisions affecting the local housing market; NOW,
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Funds for the Project are available in the 251 Fund within the following project accounts:
HO2001 and HO2210 in the amount of $6,262 and $15,348, respectively.
SECTION 2.
The Amendment No. 1 to the Agreement for Professional Services between the City of
Pueblo, a Colorado Municipal Corporation, and Gruen Gruen + Associates, a Limited Liability
$19,000 to update the current Strategic Housing Assessment, a copy of which is attached
hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby
approved.
SECTION 3.
The Mayor is hereby authorized to execute Amendment No. 1 to the Agreement for
Professional Services on behalf of the City, and the City Clerk shall affix the Seal of the City
thereto and attest the same.
SECTION 4.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance to implement the policies and procedures described herein.
SECTION 5.
If any section, paragraph, clause, or provision of this Ordinance shall for any reason be
held invalid or unenforceable, the invalidity or unenforceability of such section, paragraph,
clause, or provision shall not affect any of the remaining provisions of this Ordinance.
SECTION 6.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on August 12, 2024.
Final adoption of Ordinance by City Council on August 26, 2024.
____________________________
President of City Council
Action by the Mayor:
Approved on _______________.
Disapproved on ______________ based on the following objections:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
____________________________
Mayor
Action by City Council After Disapproval by the Mayor:
Council did not act to override the Mayor's veto.
Ordinance re-adopted on a vote of ____________, on _____________
____________________________
President of City Council
ATTEST
________________________________
Deputy City Clerk