Staff Report.Planning Consultant Services with attachments
PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Assistant Town Manager, Community Development Director, Town Attorney, and Interim
Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 ● www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/04/2022 ITEM NO: 5
DATE: September 29, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Second Amendment to the
Agreement with M-Group for Consultant Services as Provided in the Senate
Bill 2 Los Gatos Planning Grant Program Application by Increasing
Compensation to a Total Not to Exceed Amount of $130,279 Including
Contingencies and Authorize a $67,279 Revenue Budget Adjustment to
Recognize the Grant Receipt
RECOMMENDATION:
Authorize the Town Manager to execute a second amendment (Attachment 1) to the
agreement with M-Group for consultant services as provided in the Senate Bill (SB) 2 Los Gatos
Planning Grant Program Application by increasing compensation to a total not to exceed
amount of $130,279 including contingencies and authorize a $67,279 revenue budget
adjustment to recognize the grant receipt.
BACKGROUND:
On November 5, 2019, the Town Council adopted Resolution 2019-053 to authorize application
for and receipt of Planning Grant Program funds, including execution of an agreement with the
California Department of Housing and Community Development (HCD) by the Town Manager.
Planning staff submitted an application with a proposal to develop objective standards for the
review of qualifying housing development applications.
The Town received approval of the application and entered into an agreement with HCD to
receive reimbursable grant funding for the proposed scope of work in an amount not to exceed
$160,000. The agreement with HCD required the Town to apply for reimbursement by
February 28, 2022, and subsequently the Town confirmed that HCD has extended the
agreement with the Town until September 30, 2023.
PAGE 2 OF 3 SUBJECT: SB 2 Planning Grant Program Planning Consultant Agreement Second Amendment DATE: September 29, 2022
BACKGROUND (continued):
Staff sent out a request for qualifications (RFQ) to provide services for preparation of objective
standards for the review of qualifying housing development applications as provided in the
Town of Los Gatos SB 2 Planning Grant Program application. Staff received proposals from four
firms. After reviewing the submittals and conducting interviews, staff concluded that M-Group
planning consultants provided the best fit, capacity, and professional expertise for the
proposed scope of work.
On March 16, 2021, the Town Council authorized the Town Manager to execute an agreement
with M-Group for the proposed scope of work to be completed by February 28, 2022,
consistent with the terms of the HCD agreement. The estimated cost to complete the proposed
scope of work was $88,185.
On March 1, 2022, the Town Council authorized the Town Manager to execute a first
amendment to the agreement with M-Group to increase compensation and extend the
agreement to September 30, 2023. The revised agreement was for a not to exceed amount of
$107,679.
DISCUSSION:
To date, the project initiation phase has been completed, including review of State legislation
and existing Town guidelines and standards, and collation of feedback received from five
meetings with the Planning Commission subcommittee. On February 22, 2022, the first of two
community engagement meetings were conducted to gather feedback from residents and
stakeholders. On May 12, 2022, a preliminary draft of the objective standards was presented
and discussed at a second community engagement meeting. Based on the feedback from the
Planning Commission subcommittee and the community, staff and M-Group developed Draft
Objective Standards and presented them to the Planning Commission on June 22, 2022. The
Planning Commission provided feedback and recommended modifications which were then
reviewed by Planning Commission on August 24, 2022, and September 14, 2022.
The original scope of work agreed upon by the Town and M-Group has evolved, and now that
the Planning Commission has provided their full recommendation M-Group has provided a
memo summarizing what is expected for the remainder of the process (Attachment 1, Exhibit
A). The change in project scope and additional meetings requires a contract amendment of
$22,600. The estimated total cost to complete the revised scope of work is now $130,279
(Attachment 1, Exhibit A). The revised cost is within the reimbursable grant funding under the
existing agreement with HCD.
PAGE 3 OF 3 SUBJECT: SB 2 Planning Grant Program Planning Consultant Agreement Second Amendment DATE: September 29, 2022
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to execute a second
amendment to the agreement with M-Group (Attachment 1) by augmenting the total
agreement amount by $22,600 due to changes in the project scope to include additional public
hearings and document revisions. This change would result in a total agreement cost of
$130,279, including the contingency.
COORDINATION:
This report has been coordinated with the Town Manager’s Office, Town Attorney’s Office, and
the Finance Department.
FISCAL IMPACT:
The amendment to the agreement would increase the total agreement amount for the project
by $22,600 to $130,279. The cost of the revised project would be reimbursed by an equal
amount of grant revenue received. While this project is executed through multiple fiscal years,
the grant reimbursement will be collected at the completion of the project during the current
fiscal year. Staff is recommending a revenue budget adjustment of $67,279 (from $63,000 to
$130,279) for the anticipated grant receipts.
ENVIRONMENTAL REVIEW:
Environmental review is not required for this agreement as it is not a project defined by the
California Environmental Quality Act (CEQA).
Attachment:
1. Draft M-Group Second Amendment to an Agreement with Exhibit A
This Page
Intentionally
Left Blank
SECOND AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES
THIS SECOND AMENDMENT TO AGREEMENT is dated for identification this 4th day of
October 2022 and is made by and between TOWN OF LOS GATOS, a California municipal
corporation, (“Town”) and M-Group, (“Consultant”), whose address is 51 E. Campbell Ave.
#1247, Campbell, CA 95009. This Agreement is made with reference to the following facts.
RECITALS
A. The Town and Consultant entered into an Agreement dated March 16, 2021 (the
“Agreement”), to provide Planning Consultant Services for preparation of objective
standards for review of housing development applications as provided in the Town of
Los Gatos SB 2 Planning Grant Program.
B. The Town and Consultant entered into a First Amendment to the Agreement dated
March 1, 2022 (the “First Amendment”).
C. The Town and Consultant wish to enter into a Second Amendment to the Agreement to
amend the Scope of Services and increase the compensation.
AMENDMENT
1. Section 2.1, “Scope of Services,” is amended to reference the “Scope of Services”
described in Exhibit A to this Second Amendment.
2. The first sentence of Section 2.6, “Compensation,” is amended to read: “Compensation
for Consultant’s professional services shall not exclude $130,279 inclusive of all costs.
3. All other terms and conditions of the Agreement and First Amendment 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 Geoff Bradley,
Town Manager M-Group (Metropolitan Planning Group)
Department Approval:
__________________________________
Joel Paulson
Director of Community Development
Approved as to Form:
__________________________________
Gabrielle Whelan
Town Attorney
Attest:
_________________________________
Wendy Wood
Town Clerk
a new design on urban planning
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ADDITIONAL SCOPE OF SERVICES
M-Group proposes adjustments to the existing scope of work and budget for the contract
to prepare Objective Standards for the Town of Los Gatos. These adjustments reflect
additional work and meetings during the Phase 4 review process to adopt the Objective
Standards. The additional effort is in response to Planning Commission direction received
during Task 4.1: Planning Commission Meeting.
The existing contract specified one (1) Planning Commission Meeting and one (1) Town
Council Hearing during the review and adoption process in Phase 4. The additional scope
of services provides for M-Group attendance at two (2) additional Planning Commission
Meetings and one (1) additional Town Council Hearing. The additional Scope of Services
also provides for M-Group to develop additional text and graphic work, as necessary,
between those meetings.
The net changes to the project budget and Fee Schedule are $22,600 and are shown in
Table 1.
PHASE 4: PRESENTATION AND ADOPTION
Task 4.1A – Planning Commission Additional Meetings
M-Group will prepare materials in coordination with Town staff for two additional meetings
of the Planning Commission. Tom Ford, M-Group project manager, will also attend the two
additional meetings.
In response to comments and direction from Planning Commission members, M-Group will
prepare additional materials and revise existing materials in the Draft Objective Standards
documents. This additional work will include collaborating with Town staff on responses to
Planning Commission direction; preparation of text edits to successive drafts of the
Objective Standards document; and graphic revisions to many of the diagrams illustrating
individual Objective Standards.
Task 4.2A – Town Council Additional Meetings
M-Group will plan and budget for a potential second meeting of the Town Council. This
Task will not be initiated, unless the Town Council directs at the Task 4.2 Council hearing
that additional work on the Draft Objective Standards be undertaken and presented at a
second hearing.
Should the Town Council direct for a second hearing, M-Group has budgeted an amount to
allow for minor edits and/or revisions to the Draft Objective Standards text; targeted minor
updates to the Figures; and attendance at the hearing by Tom Ford, M-Group project
manager.
EXHIBIT A
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TABLE 1
TASK SERVICES COST
4.1A
Planning Commission Additional Meetings $17,700
4.2A Town Council Additional Meeting $4,900
Subtotal $22,600
Existing Contract (including contingency) $107,679
TOTAL NOT TO EXCEED $130,279