Staff Report with attachments
PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, and Interim Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/20/2022 ITEM NO: 4
DATE: September 15, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the EMC
Planning Group Inc. Agreement for Completion of the Housing Element
Update as Proposed by the Firm for a Not to Exceed Total of $455,329 and
authorize Revenue and Expenditure Budget Adjustments up to the Amount of
$172,894 ($131,500 Plus 10 Percent Contingency) from the Available General
Plan Update Deposit Account.
RECOMMENDATION:
Authorize the Town Manager execute a first amendment to the EMC Planning Group Inc.
agreement for completion of the Housing Element update as proposed by the Firm for a not to
exceed total of $455,329 and authorize revenue and expenditure budget adjustments up to the
amount of $172,894 ($131,500 plus 10 percent contingency) from the available General Plan
Update Deposit Account (Attachment 1).
BACKGROUND:
On June 15, 2021, the Town Council authorized the Town Manager to enter into an Agreement
with EMC Planning Group Inc. for the preparation of the 2023-2031 Housing Element and
associated environmental review documents.
DISCUSSION:
Staff is requesting a budget adjustment in the amount of $131,500 to cover the cost for
additional work by EMC Planning Group Inc. This budget adjustment reflects the greater level.
PAGE 2 OF 2 SUBJECT: EMC Planning Group Inc. First Amendment and Budget Amendment DATE: September 15, 2022
DISCUSSION (continued):
of detail that is being required by the California Department of Housing and Community
Development (HCD) in its review of other local governments’ Housing Elements.
Specifically, HCD is requiring more analysis of Affirmatively Furthering Fair Housing (AFFH) as
part of the Housing Element. In addition, Assembly Bill 215 (AB 215) was signed by the
Governor on September 28, 2021, after the agreement with EMC Planning Group Inc. was
authorized. AB 215 requires that a local government make the first draft revision of the
Housing Element available for public comment for at least 30 days and, if any comments are
received, take at least 10 additional business days to consider and incorporate public comments
into the draft Housing Element before submitting it to HCD. These two considerations require
additional time and work than originally anticipated in the original agreement.
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to execute a first
amendment to the EMC agreement and a budget adjustment in the amount of $131,500 plus a
10 percent contingency of $41,394. The base amount, plus adjustment and contingency totals
$455,329. The inclusion of a contingency is proposed for consistency with previous consultant
agreements. The contingency will only be utilized if necessary, and it has been included to
allow the Town Manager or their designee to authorize limited additional costs without
impacting the project schedule.
COORDINATION:
This report was coordinated with the Town Manager’s Office, Town Attorney’s Office, and
Finance Department.
FISCAL IMPACT:
Funding for the Housing Element update, including this budget amendment, come from the
General Plan Update Deposit Account. Sufficient funds are available in this account.
ENVIRONMENTAL ASSESSMENT:
Environmental review is not required for this budget adjustment as it is not a project defined by
the California Environmental Quality Act (CEQA).
Attachment:
1. Draft EMC Planning Group, Inc. First Amendment to an Agreement with Exhibit A
FIRST AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES
THIS FIRST AMENDMENT TO AGREEMENT is dated for identification this 20th day of
September 2022 and is made by and between TOWN OF LOS GATOS, a California municipal
corporation, (“Town”) and EMC Planning Group Inc., (“Consultant”), whose address is 601
Abrego Street, Monterey, CA 93940. This Agreement is made with reference to the following
facts.
RECITALS
A.The Town and Consultant entered into an Agreement dated July 1, 2021, to provide
Consultant Services for preparation of the 2023-2031 Housing Element.
AMENDMENT
1.2.1 Scope of Services shall be revised to add the services as described in Exhibit A.
2.2.6 Compensation shall be increased by $131,500 as described in Exhibit A plus a 10
percent contingency of $41,394 for a total not to exceed amount of $455,329.
3.All other terms and conditions of the Agreement dated July 1, 2021, remain in full force
and effect.
ATTACHMENT 1
IN WITNESS WHEREOF, the Town and Consultant have executed this First Amendment Agreement as of the date indicated above.
Town of Los Gatos: Consultant:
By: _______________________________ By: _________________________________
Laurel Prevetti Teri Wissler Adam, Senior Principal
Town Manager EMC Planning Group, Inc.
Department Approval:
__________________________________
Joel Paulson
Director of Community Development
Approved as to Form:
__________________________________
Gabrielle Whelan
Town Attorney
Attest:
_________________________________
Wendy Wood
Town Clerk
September 7, 2022
Town of Los Gatos
Community Development Department
110 E. Main Street
Los Gatos, California 95030
Re: Los Gatos Housing Element Update (2023-2031) - Contract Amendment #1
Dear Planning Staff:
This is a request for a contract amendment to add budget to the Housing Element
Update project to reflect costs incurred to meet State requirements and State guidance
that emerged following execution of the original contract.
Progress Report
The following components of the original scope of work have been achieved as indicated
with the following list of tasks. The following tasks from the original contract have been
addressed with the Initial Public Draft Housing Element. The California Environmental
Quality Act (CEQA) analysis will follow the California Department of Housing and
Community Development’s (HCD) review to efficiently tie this project with the 2040
General Plan’s Environmental Impact Report (EIR).
Additional HCD Requirements
The original scope of work assumed a straightforward path towards certification. In the
Fall of 2021, HCD introduced a new requirement for a 30-day public review period prior
to HCD submittal of the preliminary draft. This, combined with a growing awareness of
Task 1 - Project Schedule and Management
Task 2 - Review of Existing Housing Element
Task 3 - Public Outreach
Task 4 - Regional Housing Needs Assessment
Task 5 - Assessment of Housing Needs
Task 6 - Site Inventory
Task 7 - Prepare Draft Housing Element
Town of Los Gatos
September 7, 2022
Page 2
HCD’s focus on AFFH (Affirmatively Furthering Fair Housing) has shifted the strategy
for drafting the Housing Element Update.
Additional Cost
EMC Planning Group, Inc. continues to work diligently and effectively towards the goal
of HCD certification. A sub-consultant with AFFH expertise (Root Policy Research) was
enlisted to provide technical leadership to advance the outreach through the Housing
Element Update website and the Balancing Act mapping program (granted to the Town)
through the initial no-cost contract amendment. By incorporating additional sub-
consultants, we have worked closely with staff to provide a full preliminary draft that
anticipates the AFFH focus that HCD expects with the 6th cycle Housing Element Update
process.
There is a $37,378 remaining budget with sub-consultants who will continue to support
the work of completing the Housing Element Update through certification. Support
includes expert AFFH consultation after receipt of the HCD initial comment letter and
outreach experts to continue community outreach efforts.
EMC Housing Element update $172,593
EMC CEQA Analysis $35,190
Travel/production costs (printing, mileage) $551
Sub-Consultants (branding, website development, AFFH
research, outreach, diversity training, technical support)
$36,723
Remaining Sub-Consultant $37,378
Original Budget $282,435
A total of $209,867 has since been spent with a remaining budget of $72,568, including
sub-consultant allocations and CEQA analysis, which has not yet been initiated. See the
table below.
Original Budget total $282,435
Amount spent to date $209,867
Remaining EMC CEQA Analysis $35,190
Remaining Sub-Consultant $37,378
Remaining Budget $72,568
Town of Los Gatos
September 7, 2022
Page 3
Housing Element Iterative Drafts
In continuing to partner with Town staff and the Housing Element Advisory Board
(HEAB), an updated draft will be brought forward that will reflect HCD’s requests with
their comment letter. The final deliverable, Housing Element Update, and meetings
leading to Council review of such were part of the original scope and budget. The scope
broadened in response to emerging knowledge of what HCD evaluations have included
with Southern California reviews. Therefore, the scope for this contract is inclusive of
materials, deliverables, and meetings anticipated through the final stages of the project.
The following table summarizes the number and type of anticipated meetings through
completion of a certified Housing Element Update.
Project Schedule & Management 20 $10,000
Community Meeting 1 $3,000
HEAB Meetings 6 $12,000
Planning Commission Meetings 2 $6,000
Council Meetings 2 $8,000
Total Number of Meetings and Cost 31 $39,000
Total Budget Request
The total budget request includes responsiveness to HCD recommendations and
preparation for HCD submittal, which requires multiple iterations of publication and
integration of public comments and response to such comments as stand-alone
documentation to HCD. This budget anticipates a certain level of changes to the draft
Housing Element Update. If future work includes multiple foundational changes, then
it will likely require Sub-Consultant review, which has been included with this
proposed budget amendment.
Review of the HCD letter and subsequent proposed changes to the document will be
reviewed by the HEAB. Interaction with HCD will inform the process to initiate public
meetings with the Planning Commission and Town Council to consider adoption of a
final document. Production costs for formatting and InDesign incorporation of the draft
document into the same style as the 2040 General Plan and costs to provide 30 final
certified paper copies were included with the original scope of work and are also
reflected in this budget amendment request.
Town of Los Gatos
September 7, 2022
Page 4
Optional Task
An optional task is included in the total budget to provide an assessment of the critical
portions of the Land Use and Community Design Elements of the 2040 General Plan,
should that be necessary for certification. The budget table below includes the original
budget, anticipated additional meetings, costs for additional draft preparation, and
production costs.
Fee Schedule
Original Budget $282,435
Additional Meetings $39,000
Integration of Public Comments for HCD
(Up to two iterations)
$30,000
Additional Drafts (post HCD-initial review)
(Up to two iterations)
$40,000
Production Support $20,000
Optional Task: General Plan Amendments $2,500
Sub-total Contract Amendment Request $131,500
Budget After this Amendment $413,935
It continues a pleasure and honor to work with Town staff, decision-makers, and
community members towards Housing Element certification.
Sincerely,
Ande Flower, AICP, Principal Planner