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Agreement with Placeworks, Inc..�pWN OF 1pspjOS COUNCIL REPORT DATE: March 11, 2014 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER MEETING DATE: 3/17/2014 ITEM NO: 3 SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH PLACEWORKS, INC. TO PREPARE THE HOUSING ELEMENT UPDATE AND REQUIRED ENVIRONMENTAL REVIEW DOCUMENTS. RECOMMENDATION: Adopt a Resolution authorizing the Town Manager to enter into an agreement with Placeworks, Inc. to prepare the Housing Element Update and environmental review documents. BACKGROUND: The Town is required to prepare an updated General Plan Housing Element for the period covering 2014 -2022. The Housing Element must be certified by the State Housing Community Development Department (HCD) and adopted by the Town Council no later than May 31, 2015. To ensure this deadline is met, the goal is to submit the draft to the State for certification by December 31, 2014. The updated Housing Element is required to show how the Town intends to accommodate the housing needs of its residents and local businesses for the upcoming eight years and will include policies to facilitate the planning for these units. If the Town satisfies these requirements, another Housing Element update will not have to be prepared until January 2023. If the certification and adoption deadlines are not met, the Town will be required to prepare a certified Housing Element every four years. Local communities without certified housing elements may be subject to lawsuits which may impede their ability to approve /deny land use entitlements, issue building permits, or maintain eligibility for grants or financing incentives. Given the increased community interest in housing and development related topics, the Council established a Housing Element Advisory Board on February 3, 2014, to assist with the preparation of the upcoming Housing Element update and to provide recommendations that are PREPARED BY: SANDY L. BAILY 6(,ej Director of Community Development Reviewed by: PS) Assistant Town Manager Town Attorney ance N:\DEV\TC REP0RTS\20)4\P1acmorks Housing Element Rpt TC 3- 17- 2014.doc PAGE MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT AGREEMENT March 11, 2014 consistent with the community's values. On March 17, 2014, the Council is anticipated to appoint four residents to the Housing Element Advisory Board to join the existing nine General Plan Committee members that will constitute the full Board. The Town intends to enter into an agreement with Placeworks, Inc., formerly The Planning Center/DC &E to prepare the Housing Element Update, assist with the meeting facilitation of the Housing Element Advisory Board and complete the required environmental review documents. DISCUSSION: A Request for Proposals (RFP) soliciting qualified firms to assist with the preparation of the Housing Element update and the required environmental review documents was distributed by staff in January 2014. A total of six highly qualified firms requested copies of the proposal in order to be able to respond. Prior to the proposal submittal deadline on February 21, 2014, four of the six firms (ESA, MIG, Baird & Driskell Community Planning, and Metropolitan Planning Group) informed staff that they no longer had additional capacity to take on any new clients due to their recent acceptance of Housing Element contracts with other local jurisdictions. A fifth firm (Veronica Tam & Associates) did not submit a proposal and staff has not been able to contact anyone at the firm. Placeworks, Inc., the newly re- branded name of the former Planning Center/DC &E planning consulting firm submitted the only proposal which addressed the full requirements of the Town's RFP. Placeworks, Inc. has recent experience with the Town in preparing the 2010 General Plan Update and Final EIR, the 2007 -2014 Housing Element Update and most recently the 2013 AHOZ environmental review document. The proposal from Placeworks, Inc. is to prepare the Housing Element draft document, facilitate the Housing Element Advisory Board meeting process, and prepare an Addendum to the 2010 General Plan FEIR for a fee of $136,826. If a supplemental EIR is needed due to the selection of new AHOZ or Housing Opportunity sites this optional task would be an additional cost of $35,000-45,000. If approved by Council, the Consultant will assist staff in the facilitation of the Housing Element Advisory Board. Staff anticipates that the Housing Element Advisory Board process will run from March through June and will involve approximately eight meetings. The final work product of the Advisory Board is expected to be a recommendation on specific strategies, concepts, and/or policies for accommodating the Town's Regional Housing Needs Allocation (RHNA) of 619 housing units for the next 8 -year period. The Consultant will incorporate these recommendations in the draft of the updated Housing Element. Based on this rough timeline and depending on the level of environmental review required, it is anticipated that the Planning Commission will be able to review the draft Housing Element in September 2014 with possible Town Council action in October or November 2014. Submitting the updated Housing Element by the end of 2014 should ensure meeting the State mandated May 2015 deadline, even if changes are required by HCD. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT AGREEMENT March 11, 2014 CONCLUSION: Staff has concluded that Placeworks, Inc. provides a good fit for the completion of Housing Element Update. This firm has the experience and capacity to fully meet the Town's goals for the update within the necessary time frame and has provided previous excellent contract service with the Town. ENVIRONMENTAL ASSESSMENT: Approval of the Placeworks, Inc. contract and initiation of the Housing Element Update is not a project as defined by CEQA. An environmental assessment will be conducted for the update and will be presented to the Planning Commission and Town Council with the Draft Housing Element. FISCAL IMPACT: Funding for the Housing Element Update will come from the General Plan Update Fund. Sufficient funds are available in the FY 2013/14 adopted budget. Attachments: 1. Resolution including Agreement & Scope of Work SLB:EO:ct THIS PAGE INTENTIONALLY LEFT BLANK RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH PLACEWORKS, INC. TO PREPARE THE HOUSING ELEMENT UPDATE AND REQUIRED ENVIRONMENTAL REVIEW DOCUMENTS WHEREAS, the Town of Los Gatos is required by the State Housing Laws to prepare an update of its existing State Certified Housing Element in 2014; and WHEREAS, the updated Housing Element must include plans and policies to show how Los Gatos plans to accommodate the estimated housing needs of residents and business for the next eight year period; and WHEREAS, the Town intends to initiate its Housing Element update process in March 2014 and submit an adopted draft for certification to the State by December 31, 2014; and WHEREAS, the Town desires to hire a professional planning consulting firm with the prerequisite experience and technical expertise necessary to prepare the housing element update and required environmental review documents; and WHEREAS, the Placeworks, Inc. has the necessary experience and technical expertise for this project; and NOW, THEREFORE, BE IT RESOLVED, that Town Council of the Town of Los Gatos does hereby authorize the Town Manager to enter into an agreement with Placeworks, Inc. to prepare the housing element update and required environmental review documents subject to the agreement and scope of work included as Exhibit A. ATTACHMENT I PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 17th day of March, 2014, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\ DEV \RESOS\2014 \RESO- AUTHORIZING TOWN MANAGER TO EXECUTE HOUSING ELEMENT CONSULTANT AGRMEENT.doex EXHIBIT A: WORK SCOPE AND COSTS This exhibit describes the scope of services, schedule, products and meetings for the Housing Element Update to be conducted by PlaceWorks for the Town of Los Gatos in cooperation with Kimley -Horn & Associates. SCOPE OF SERVICES Task A. Project Initiation 1. Kick -Off Meeting with Town Staff and Initial HCD Contact PlaceWorks will attend a project initiation meeting with Town staff to discuss the work program for the Housing Element Update. At this meeting we will review and refine the proposed schedule, identify information needs, and discuss expectations for the process and products. We understand that Town staff has already made initial contact with HCD. During this task, PlaceWorks will reach out to HCD to review the approach and schedule for the Housing Element Update and confirm that review period timelines are acceptable to HCD staff. PlaceWorks will discuss with HCD strategies to accommodate the Town's identified housing need and other procedural and substantive issues related to the Housing Element Update. By taking this proactive approach, we will ultimately be able to submit a draft Housing Element to HCD that does not require extensive revisions that could affect the project schedule. 2. Data Collection PlaceWorks will conduct an initial review of the programs, guiding policies, and implementing policies set forth in the current Housing Element. PlaceWorks will collect and review housing programs, plans, reports and other policy documents needed to prepare the Housing Element Update. Background information to be reviewed includes the existing General Plan, the Zoning Regulations in the Town Code, and other applicable policy documents as identified by Town staff. PlaceWorks will document constraints on development of vacant and underutilized parcels. 3. Housing Element Advisory Board Throughout the course of the project, PlaceWorks will facilitate the Housing Element Advisory Board (the Advisory Board) meetings. The Advisory Board will be comprised of members appointed by the Town Council. PlaceWorks will produce handouts and presentation materials needed for the Advisory Board meetings. PLACEWORKS 1 MARCH 5, 2014 TOWN OF Los GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS PlaceWorks will facilitate the following meetings with the Advisory Board ♦ Meeting #l: Introduction. PlaceWorks will facilitate the first Advisory Board meeting to introduce Board members to the project and consultant team, discuss the role of the Advisory Board in the Housing Element Update, review the project schedule, and discuss goals and expectations for the process. We will also gather initial comments from Advisory Board members on key issues and concerns for the Housing Element Update. PlaceWorks' skilled facilitators will the content, structure, and purpose of the Housing Element, and the requirements it must meet. PlaceWorks will provide the Advisory Board with a description of the Advisory Board's roles and responsibilities. ♦ Meetings #2 and #3: Housing Sites Inventory Review and Site Selection. At Advisory Board Meeting #2, PlaceWorks will provide an overview of the town's demographic and housing needs. The remainder of Meeting #2 and Meeting #3 will focus on the review and selection of housing sites to accommodate the town's Regional Housing Needs Allocation (ANNA). The outcome of Meeting #3 will be the selection of recommended housing sites to be approved by the Planning Commission. ♦ Meetings #4 and #S: Housing Policies and Programs. PlaceWorks will present policy alternatives to the Advisory Board for review and discussion. The outcome of Meeting #5 will be the identification of draft policies and programs that will be presented to the Planning Commission for approval. ♦ Meetings #6 and #7: Draft Housing Element Review. PlaceWorks will present a Public Review Draft Housing Element to the Advisory Board at Meeting #6 for review and comment. Meeting #7 will finalize comments and review of the Draft Housing Element. PlaceWorks is available to facilitate additional meetings at a cost of approximately $2,300 per meeting. The cost for PlaceWorks or Kimley -Horn & Associates to attend or facilitate additional meetings will be billed on a time and materials basis. 4. Project Website PlaceWorks will develop a project web page to be hosted on a dedicated URL, hyperlinked to the Town's website. PlaceWorks will develop and maintain the project website, which will serve as the public's online source for all project- related materials, such as agendas, documents, and meeting announcements. PLACEWORKS 1 2 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS Task ll. Population and Housing Analysis 1. Evaluation of Existing Housing Element Place Works will Conduct a thorough evaluation of the existing Housing Element. This written evaluation is a required part of the technical appendix of the Housing Element and will consider the appropriateness of existing guiding and implementing policies and programs; the effectiveness of these policies and programs; and progress in implementation. 2. Housing Needs Assessment Place Works will prepare a housing needs assessment, which will focus on local demographic and household characteristics that affect local housing demand. Housing needs information in the Town's current Housing Element will be updated with new data on population and employment, housing types and conditions, household characteristics, housing costs, household income and ability to pay, special needs housing (including persons with developmental disabilities, consistent with SB 812), and affordable housing at risk of conversion to market rate uses. 3. Housing Constraints Analysis Place Works will revise the discussion of governmental and non - governmental constraints on housing production identified in the Town's current Housing Element. Examples of governmental constraints include development standards in the Town Code, on- and off- site improvement requirements, fees and exactions, and permit processing procedures. Nongovernmental constraints include issues such as land prices, financing availability, and construction. This task will include an analysis of Costs to develop housing in Los Gatos, including estimated permit and land costs, site improvement Costs, hard and soft construction costs, marketing costs, and required developer profit. 4. Housing Sites Inventory a. Identification of Land Suitable for Residential Development Place Works will prepare an inventory of land suitable for residential development. This inventory will include undeveloped sites within the Town's Affordable Housing Overlay Zone (AHOZ), sites containing existing single- family homes with the potential for senior units, sites that may be developed under the North 40 Specific Plan, vacant sites zoned for residential development or zoned to allow residential use, sites within the Town's Multi- Family Residential Zone, and underutilized developed sites that are capable of being redeveloped at a higher density or with greater intensity. PLACEWORKS 3 MARCH 5, 2014 TOWN OF Los GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS This scope and cost are based on an assumption that the Town has adequate sites with appropriate zoning to meet both the total RHNA and the RHNA for low- and very -low- income units and that no rezonings will be necessary. if the land inventory analysis does not demonstrate an adequate supply of suitable, available and appropriately zoned sites that are sufficient to accommodate the Town's housing need by income level, PlaceWorks will prepare a program recommendation to accommodate the remaining housing need within the planning period. Strategies to increase total residential development capacity include modifying zoning and development standards, encouraging the redevelopment and reuse of non - vacant or underutilized sites, removing other housing - production constraints, assisting in the development of housing, and conserving existing housing stock. b. Land Inventory Analysis PlaceWorks will determine which sites identified in the inventory are available and suitable to accommodate Los Gatos' projected housing need. This analysis will determine the Town's ability to provide for a variety of housing types, including multifamily rental, factory- built, mobile homes, housing for disabled persons, and transitional housing and emergency shelters. PlaceWorks will then establish the number of housing units that can potentially be accommodated on each site. PlaceWorks will calculate the number of units that can accommodate the Town's share of housing for lower- income households, and will determine if existing land use controls allow for development of housing for lower - income households. This scope and cost assume that we can reuse the same or similar methodology for calculating buildout that was conducted for the Town's existing Housing Element. PlaceWorks will evaluate the feasibility of redevelopment of underutilized sites, considering factors such as the extent to which existing uses constitute an impediment to additional residential development, recent development trends, market conditions, and existing or proposed incentives. Task C. Housing Policy Alternatives 1. Development of Housing Policy Alternatives Based on the analysis of prior tasks, PlaceWorks will prepare housing policy alternatives for the Housing Element Update. Policy alternatives will include: ♦ Programs to rehabilitate and conserve existing affordable housing. ♦ Programs to assist special -needs households, PLACEWORKS 4 MARCH 5, 2014 TOWN OF Los GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS ♦ Programs to accommodate persons with disabilities (including developmental disabilities, consistent with SB 812). ♦ Other programs based on prior review in Task A.2, Data Collection. Place Works will also identify sites to accommodate housing need. 2. Planning Commission Meeting #1: Housing Policy Alternatives Place Works will present the policy and site alternatives to the Planning Commission and will facilitate a discussion about the various options. This meeting will result in the selection of a preferred approach to meet Housing Element requirements, especially adequate sites for housing need. Place Works will assist Town staff in preparing the staff report for the Planning Commission meeting. Task D. Draft Housing Element Update 1. Policy and Program Revisions Place Works will recommend revisions to existing housing policies and the addition of new policies and programs where needed. Programs will identify agencies or officials responsible for implementation and include specific time frames. 2. Administrative Draft Housing Element Update Place Works will prepare an Administrative Draft Housing Element Update incorporating the results of prior tasks. Ten hard copies and one electronic copy (PDF) of the Administrative Draft Housing Element will be provided to the Town. The Town will be responsible for providing a single set of internally reconciled comments on the Administrative Draft Housing Element. 3. Public Review Draft Housing Element Update After receiving comments on the Administrative Draft Housing Element, Place Works will submit a revised, second draft to Town staff as an electronic "screencheck." Place Works assumes that a minimal level of effort, not exceeding 4 hours, would be required to respond to any Comment from the Town on the Screencheck Draft Housing Element. Place Works will then prepare a Public Review Draft Housing Element Update. We will prepare up to 30 hard copies and one electronic copy (PDF) of the Public Review Draft Housing Element Update. PLACEWORKS MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS 4. Planning Commission Meeting, #2: Public Review Draft Housing Element Update PlaceWorks will prepare and present the Public Review Draft Housing Element for review and comment by the Planning Commission. The meeting will be structured to obtain agreement on the draft policies, programs and actions. PlaceWorks will assist Town staff in preparing the staff report for the Planning Commission meeting. After the meeting, PlaceWorks will consult with Town staff on comments received, and will make one round of revisions to the Housing Element based on Planning Commission Comments. Task E. Addendum In this task, PlaceWorks will conduct the environmental review for the Housing Element Update. This task assumes that an Addendum to the General Plan EIR will be prepared, that no new housing sites will be needed in order to accommodate the Town's RHNA, and that buildout of the housing sites would not result in new growth above what was analyzed in the Town's General Plan EIR. If new sites are identified as part of the housing site inventory and selection process, a Supplemental EIR will be prepared, as described in Task F below. 1. Project Description PlaceWorks will prepare a detailed, but concise, project description using graphics and textual information as appropriate. We will Coordinate with Town staff to gather the information needed to clearly define the project. The project description will identify the ways in which the housing sites, policies, programs, and buildout of the Housing Element differ from the existing Housing Element and AHOZ, as applicable. The project description will be submitted to the Town in an electronic (PDF) format. We will conduct one round of revisions to the Project Description based on comments from Town staff. 2. Addendum PlaceWorks will prepare the Addendum, using information in the General Plan EIR and AHOZ Addendum to the extent possible, that documents existing conditions, project impacts (if any), and mitigation measures (if required), as well as the resulting level of significance for potential impacts under each of the topical areas required under CEQA. Although previous environmental analysis has been Conducted for development of the PLACEWORKS 6 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS housing sites and buildout under the General Plan, the Addendum will need to evaluate the distribution of the RHNA among the housing sites, as well as any policy or program revisions that could affect the environment. CEQA permits the exclusion of environmental issues on which it can be ascertained with certainty that the project would have no significant negative impact. It is anticipated that the following topic areas will be able to be summarily dismissed in the Addendum: ♦ Agricultural and Forestry Resources ♦ Mineral Resources The Addendum will analyze the environmental impacts for the following resource categories: ♦ Aesthetics. Development of the housing sites could affect the town's visual resources. The Addendum will consider potential aesthetic impacts and include mitigation measures, if required, to address any impacts. ♦ Air Quality. Place Works will prepare a qualitative air quality and a community risk and hazards analysis for the Town of Los Gatos to support the Housing Element. ♦ Greenhouse Gas Emissions. Greenhouse gas (GHG) emissions impacts of the project will be described qualitatively. The Addendum will include a consistency evaluation with applicable goals and policies in the Metropolitan Transportation Commission's /Association of Bay Area Governments' Plan Bar Area (the region's Sustainable Communities Strategy) to reduce per capita GHG emissions from passenger vehicle use because Plan Bay Area was adopted after certification of the General Plan EIR. ♦ Biological and Cultural Resources. Development under the Housing Element is not expected to adversely affect any biological or cultural resources. It is expected that any potential impacts could be avoided through compliance with applicable regulations. ♦ Geology, Soils, and Seismicity. Place Works will evaluate potential impacts associated with soil erosion and geologic and seismic risks. ♦ Hazards and Hazardous Materials. Place Works will evaluate potential impacts associated with hazards and hazardous materials. It is expected that any potential impacts could be avoided through compliance with applicable regulations. ♦ land Use. Place Works will evaluate potential land use impacts. PLACEWORKS % MARCH 5.2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS ♦ Noise. Because no new sites would be identified and the total amount of development associated with the Housing Element would not exceed the total amount of development analyzed in the General Plan EIR, an additional noise analysis would not be necessary. Therefore, this scope does not include any noise modeling. ♦ Population and Housing. PlaceWorks will evaluate potential impacts associated with increased population and housing, or the displacement of existing housing units or people. ♦ Public Services and Utilities. Because no new sites would be identified and the total amount of development associated with the Housing Element would not exceed the total amount of development analyzed in the General Plan EIR, impacts to police, fire, water, wastewater, and stormwater services are not expected. However, the Addendum will include a detailed schools analysis to determine whether buildout under the Housing Element would affect any school districts serving Los Gatos. ♦ Traffic and Transportation. Kimley -Hom will prepare the traffic and transportation analysis for the Addendum. The traffic study will be based on the following conditions: 2020 General Plan and 2020 General Plan plus 2014 Housing Element. Kimley- Horn's work will involve the following tasks: • Data Collection and Field Reconnaissance. Kimley -Horn will conduct intersection turning movement counts for both the weekday AM peak period (7:00 AM to 9:00 AM) and PM peak period (4:00 PM to 6:00 PM) at up to eight (8) intersections. These counts would supplement counts from recent projects, as identified above in the data to be obtained from the Town. The criteria set forth by the Valley Transportation Authority (VTA) is to prepare a transportation impact analysis for projects that generate 100 or more peak hour trips. Kimley - Horn will coordinate with Town staff on the selection of intersections for evaluation, with intersections meeting the criteria set forth by VTA listed as high priority. Field observations will be conducted at each of the study intersections documenting field Conditions during the peak traffic period. • Analysis. The Traffix model used for the analysis will be the same model used in the latest 2013 AHOZ Update. The intersections included in this model included all 39 intersections in the General Plan. There are assumed to be no additional updates to the model. Kimley -Horn will conduct an initial assessment of each potential Housing Element site's traffic impact. This task will involve developing trip generation rates for up to eight (8) housing sites. Trip generation rates will PLACEWORKS 8 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS be developed for the Daily, AM peak period, and PM peak period based on the current edition of Trip Generation published by the Institute of Transportation Engineers (ITE). The trip distribution for the proposed developments will be determined from the adopted General Plan. All intersections will be evaluated for levels of service (LOS) using the Operations Method from the 2000 Highway Capacity Manual as applied by the TRAFFIX software program. There are assumed to be no modifications to the model regarding signal timing changes or background projects included (i.e. no change to the North 40 project). Consistent with the previous Housing Element, the potential project trips will be distributed and assigned in the Town of Los Gatos traffic network built for the 2020 General Plan model. • Traffic Impact Analysis Report. Kimley -Horn will prepare a Traffic Impact Analysis (TIA) report that will be attached to the Addendum as an appendix. The Addendum format does not require consideration of alternatives, and we do not propose to analyze any alternatives to the Housing Element Update. 3. Mitigation Monitoring and Reporting Program Concurrent with the preparation of the Draft Addendum, we will prepare a Mitigation Monitoring and Reporting Program (MMRP) for any mitigation measures included in the Addendum pursuant to the Town's policies and procedures. The MMRP, shown in tabular form, will identify responsible parties for implementing and monitoring each mitigation measure, along with monitoring triggers and reporting frequencies. 4. Town Review and Revision The Addendum will be submitted to Town staff for review, as follows: ♦ Administrative Draft Addendum and MMRP. Place Works will submit one electronic copy and up to 10 hard copies of the Administrative Draft Addendum to the Town for review. The MMRP will be submitted in electronic (Word and PDF) format. The Town will provide Place Works with a single consolidated set of comments on the report. This assumes that PlaceWorks will respond to one round of comments on the Administrative Draft received from the Town. Please note that our cost estimate includes an allowance of 24 hours for revisions to the Administrative Draft Addendum after Town staff review. ♦ Screencheck Draft Addendum and MMRP. Place Works will submit a revised, second draft to Town staff as an electronic "screencheck." Place Works PLACEWORKS 9 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS assumes that a minimal level of effort, not exceeding 4 hours, would be required to respond to any comment from the Town on the Screencheck Draft. ♦ Addendum and MMRP. PlaceWorks will provide the Town with one electronic copy and up to 30 hard copies. 5. Public Review Although not required for an Addendum, the Town has the option to circulate the Addendum for public review. Our schedule allows two weeks for public review of the Addendum. Task F. Supplemental Environmental Impact Report OPTIONAL If, during Task B.4 (Housing Sites Inventory), it is determined that additional sites will be needed to accommodate the Town's RHNA, additional environmental analysis will be required and a supplement to the General Plan EIR will be prepared. The EIR will be prepared as defined by the CEQA Guidelines Section IS 163(c). The supplement to the EIR will contain only the information necessary to make the previous EIR adequate for the changes to the list of housing sites and the allowed development capacity under the Housing Element Update. The Supplemental EIR will be prepared by PlaceWorks through the tasks described below. 1. Notice of Preparation Pursuant to CEQA Section 15163(c), a Supplemental EIR shall be given the same notice and public review as a Draft EIR. Therefore, PlaceWorks will draft a Notice of Preparation (NOP) of an EIR pursuant to CEQA Section 1 S082. We assume Town staff will be responsible for circulation to the State Clearinghouse and local noticing. As described below, the NOP will include an Initial Study (IS), which will scope out issues that do not need to be addressed in the Supplemental EIR. 2. Project Description PlaceWorks will prepare a detailed, but concise, project description using graphics and textual information as appropriate. We will coordinate with Town staff to gather the information needed to clearly define the project. The project description will identify the ways in which the housing sites, policies, programs, and buildout of the Housing Element differ from the existing Housing Element and AHOZ, as applicable. The project description will be submitted to the Town in an electronic (PDF) format. We will PLACEWORKS 10 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS conduct one round of revisions to the Project Description based on comments from Town staff. 3. Initial Study Place Works will prepare an Initial Study that documents existing conditions and project impacts, using information in the General Plan EIR and AHOZ Addendum to the extent possible. The Initial Study will be used to determine the environmental topics for which a detailed analysis will be required in the Supplemental EIR. For those topics for which it can easily be determined that a full analysis will be required in the Supplemental EIR, the Initial Study discussion will be brief and refer to the forthcoming Supplemental EIR. The Initial Study will be submitted to Town staff in an electronic (PDF) format. There will be one round of Town staff review on the Initial Study. 4. Administrative Draft Supplemental EIR The Administrative Draft Supplemental EIR (ADSEIR) will include revisions to the chapters discussed below in order to reflect the Housing Element Update. Place Works will submit 10 hard copies and one electronic copy of the ADSEIR for review by Town departments. We assume that Town planning staff will act as a clearinghouse for departmental comments and will provide Place Works with a single set of internally consistent comments on the ADSEIR. Town staff will provide comments on the ADSEIR within one and a half weeks. The ADSEIR will contain the following sections: a. Executive Summary Place Works will create a summary in a form consistent with CEQA Guidelines, Section 15123. This summary will facilitate a quick understanding of environmental issues and the actions required to mitigate potential impacts. It will include a summary table of impacts, mitigation measures, and levels of significance before and after mitigation. The summary table will include any mitigation measures recommended in the Initial Study. b. Project Description The ADSEIR will include the project description drafted for the project as part of Task F.2, Project Description. PLACEWORKS 11 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS c. Summary of Environmental Topics Seeped Out The ADSEIR will include a chapter summarizing resource categories scoped out of the Supplemental EIR (based on the findings of the Initial Study) and providing justification and citations in support of this determination. d. Setting, Impacts, and Mitigation Measures For the environmental topics that will be fully evaluated in the Supplemental EIR, the ADSEIR will contain existing setting information, impact analyses, and mitigation measures. The determination of which environmental topics will be included in the ADSEIR will be made based on the findings of the Initial Study. It is anticipated that the Supplemental EIR will cover the following topics: ♦ Aesthetics. The Supplemental EIR will consider potential aesthetic impacts and include mitigation measures, if required, to address any impacts. ♦ Air Quality. Place Works will prepare a qualitative air quality and a community risk and hazards analysis. The "plan-level" analysis will be based on the Bay Area Air Quality Management District (BAAQMD) CEQA Guidelines and will include a qualitative analysis of criteria air pollutants generated from the proposed redesignating and rezoning and the Housing Element sites and a qualitative assessment of major stationary and mobile sources of toxic air contaminants (TACs) and fine inhalable particulate matter (PM,,) within the Town. • Criteria Air Pollutants. The program -level air quality analysis will include a consistency evaluation of the project to the BAAQMD's land use and transportation control measures within the air quality management plan. The San Francisco Bay Area air basin is in non - attainment for particulate matter and for ozone. Buildout of the Housing Element sites could generate emissions from an increase in trips associated with new land uses compared to trips generated under the current land use designations. The potential increase in trips generated by an increase in development intensity will be discussed in relation to the projected population and employment increase. • Community Risk and Hazards. The community risk and hazards evaluation will include a discussion of potential health risks from TACs and PM, in the vicinity of any of the Housing Element sites based on BAAQMD's guidance. Existing stationary sources, major roadways (defined by BAAQMD as over 10,000 vehicles per day), and other sources of TACs will be mapped. Recommended measures specified in the BAAQMD's Guidelines for future sensitive land uses within the areas mapped will be considered and will be based on the recommended buffer distances using BAAQMD screening tools, California Air Resources Board PLACEWORKS 12 MARCH 5, 2014 TOWN OF LOS GATOS H O U S I N G E L E M E N T U P D A T E EXHIBIT A: SCOPE OF WORK AND COSTS (CARB) guidance, and the California Air Pollution Control Officer's Association (CAPCOA) guidance. For land uses within areas mapped as having elevated risk, the Supplemental EIR will detail performance standards for future development projects, including requirements to reduce risk from exposure to significant concentrations of TACs and PM,,, ♦ Greenhouse Gas Emissions. PlaceWorks will prepare a GHG emissions analysis based on the current BAAQMD methodology. GHG emissions impacts of the project will be described qualitatively. The Town of L.os Gatos adopted a Sustainability Plan to ensure consistency with statewide efforts to reduce GHG emissions under Assembly Bill (AB) 32. Consequently, it is anticipated that future projects in the town, including the proposed Housing Element Update, can tier off the qualified Climate Action Plan (CAP) in accordance with CEQA Guidelines Section 15183.5, Tiering and Streamlining the Analysis of Greenhouse Gas Emissions. Therefore, a Consistency evaluation with applicable GHG reduction measures in the Town's CAP will be conducted for the Housing Element Update. Applicable GHG reduction measures will be specifically identified as mitigation measures (i.e., similar to a development checklist) for future projects constructed in accordance with the Housing Element. Furthermore, the Supplemental EIR will also include a consistency evaluation with applicable goals and policies in the Metropolitan Transportation Commission's /Association of Bay Area Governments' Plan Bay Area (the region's Sustainable Communities Strategy) to reduce per capita GHG emissions from passenger vehicle use. ♦ Noise. PlaceWorks will prepare a programmatic noise and vibration technical analysis. The "plan - level" analysis will be based on an qualitative assessment of major stationary and mobile noise sources at and around up to five housing units. The noise and vibration analyses will evaluate the compatibility of the proposed land uses and housing changes with respect to potential noise exposures and will discuss applicable criteria, including ordinances, policies, and standards from the State of California and the Los Gatos' Town Code and General Plan. The noise analyses will discuss potential noise and vibration levels associated with the short -term demolition of existing structures and the construction of the proposed residential developments. The results of the technical analyses will be summarized in the Supplemental EIR. Mitigation measures that reduce construction and /or operations noise and vibration impacts will be identified, as necessary, and pertinent analysis details will be provided in an Appendix. This scope of work assumes that project -level assessments will be conducted when site - specific projects are defined and that these future development efforts would include then- existing conditions noise measurements. PLACEWORKS 13 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS Population and Housing. PlaceWorks will evaluate potential impacts associated with increased population and housing, or the displacement of existing housing units or people. ♦ Schools. PlaceWorks will conduct a detailed schools analysis to determine whether buildout under the Housing Element would affect any school districts serving Los Gatos. Transportation and Traffic. If substantially new housing sites are requested for evaluation, an additional evaluation of the VTA County -wide model will be required. The 2020 General Plan EIR traffic evaluation was based on a significant and detailed evaluation of individual Traffic Analysis Zones (TAZ's) where Housing Element and other General Plan land uses were augmented in the model to reflect the General Plan land use forecast. The County -wide model evaluates interactions between TAZs throughout the county, looking at primary housing, employment, retail, educational and other land uses and how people travel between each of these uses. This effort was Completed in 2008. Since 2008, the Housing Element Update and AHOZ efforts have been "layered" onto the results of this model through adding new approved and pending developments in Los Gatos and removing projected or cancelled developments foreseen in the 2020 General Plan development process. If substantially new Housing Element parcels or opportunities are identified, it could change the TAZ interactions assumed in the 2008 model run. If a Supplemental EIR is required, a new model run will be required as well to capture network changes outside Town limits and create a defensible traffic evaluation. e. Alternatives PlaceWorks will update the alternatives analysis based on the Housing Element Update. As part of this task, PlaceWorks will evaluate the three alternatives from the original General Plan EIR against the Housing Element Update. f CEQA Required Assessment Conclusions PlaceWorks will prepare assessment Conclusions to meet CEQA Guidelines for the following mandatory findings: • Cumulative Impacts • Growth Inducement ♦ Unavoidable Significant Effects ♦ Significant Irreversible Changes ♦ Impacts Found Not to be Significant PLACE WORKS 14 MARCH 5, 2014 TOWN OF LOS GATOS H O U S I N G E L E M E N T U P D A T E EXHIBIT A: SCOPE OF WORK AND COSTS g. Report Preparers This chapter will identify the consultants and staff who prepared the Supplemental EIR. PlaceWorks will submit 10 hard copies and one electronic copy of the ADSEIR to Town staff. Town staff will act as a clearinghouse for comments on the ADSEIR, and will provide PlaceWorks with a single, internally reconciled set of comments. Please note that our cost estimate includes an allowance of 24 hours for revisions to the ADSEIR after Town staff review. PlaceWorks will incorporate Town comments on the ADSEIR and deliver a Screencheck Draft Supplemental EIR for review by Town staff. We assume that revisions to the Screencheck Draft Supplemental EIR will focus on formatting and editing, not content changes. Our cost estimate includes an allowance of 4 hours for revisions to the Screencheck Draft Supplemental EIR after Town staff review. S. Draft Supplemental EIR and Public Review PlaceWorks will incorporate one consolidated set of comments on the Screencheck Draft Supplemental EIR from Town staff to create the Draft Supplemental EIR. PlaceWorks will submit 30 hard copies and an electronic (PDF) format of Draft Supplemental EIR. PlaceWorks will also prepare the Notice of Completion (NOC) and submit it to Town staff. We assume the Town will be responsible for delivery of the Draft Supplemental EIR and NOC to the State Clearinghouse and the requisite number of hardcopies and CDs. We also assume the Town will prepare and publish the Notice of Availability. A 45 -day public review period will be required under CEQA. During this period, PlaceWorks will attend one hearing to present the conclusions of the Draft Supplemental EIR and receive comments on it. PlaceWorks will assist Town staff in preparing the staff report for the hearing. 6. Administrative Draft Response to Comments The PlaceWorks team will prepare an Administrative Draft Response to Comments. We assume that Town staff will forward public comments within five working days of the close of the public review period. The PlaceWorks team expects to work closely with the Town during preparation of the Administrative Draft Response to Comments to ensure accuracy of the responses and provision of new information. PlaceWorks has assumed 32 hours of staff labor for completion of the Administrative Draft Response to Comments, and Kimley -Horn has assumed 16 hours for senior staff time. If additional time is needed due to an unforeseen volume of comments, we will request a Contract modification to cover additional labor costs. Five hard copies and an electronic (PDF) format of the Administrative Draft Response to Comments will be submitted to Town staff for review. PLACEWORKS is MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EKH18fT A: SCOPE OF WORK AND COSTS 7. Final Supplemental EIR Following receipt of one consolidated set of Town comments on the Administrative Draft Response to Comments, a Final Supplemental EIR will be prepared. This will include both the Response to Comments document and additional analysis or revisions to the Draft Supplemental EIR as necessary, together with Findings of Fact and Statement of Overriding Considerations, if required. Place Works will submit a Screencheck Draft of the Final Supplemental EIR for review by Town staff. Subsequent to receipt of comments on the Screencheck Draft, we will submit IS hard copies and an electronic (PDF) format, one reproducible hard copy of the Final Supplemental EIR with Responses to Comments, and one copy in electronic (Adobe Acrobat) format. We will also prepare the NOC for the EIR. S. Mitigation Monitoring and Reporting Program Concurrent with the preparation of the Final Supplemental EIR, we will prepare a Mitigation Monitoring and Reporting Program (MMRP) for the mitigation measures included in the Supplemental EIR pursuant to the Town's policies and procedures. The MMRP, shown in tabular form, will identify responsible parties for implementing and monitoring each mitigation measure, along with monitoring triggers and reporting frequencies. The MMRP will be submitted electronically. Task G. HCD Review and Final Housing Element 1. Submittal to HCD Following public and Planning Commission review of the Public Review Draft Housing Element, P1aceWorks will submit a revised Draft Housing Element to HCD for certification. Place Works will use HCD's streamlined update template to facilitate a streamlined review of the Draft Housing Element. It is our understanding that, based on initial conversations between Town staff and HCD, HCD will be able to review the Draft Housing Element on an accelerated timeline. Our schedule assumes a 30 -day review period for the Draft Housing Element. 2. Planning Commission Meeting #3: Review of HCD Comments Place Works will present HCD comments and recommended revisions on the revised Draft Housing Element to the Planning Commission. After the initial presentation, PlaceWorks will facilitate a discussion about responding to HCD comments. The desired outcome of the meeting is to obtain agreement on revisions in response to HCD comments. PLACEWORKS 16 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS 3. Draft Final Housing Element After HCD review and Planning Commission Meeting #3, PlaceWorks will be responsible for making revisions to the revised Draft Housing Element to address HCD comments and Planning Commission direction. We will provide a memorandum summarizing the revisions made to the Draft Housing Element Update, as well as a redline version of the revised Housing Element. The memorandum and redline version will be submitted electronically. 4. Informal Consultation with HCD PlaceWorks will submit relevant, revised portions of the revised Draft Housing Element to HCD to receive informal comments on whether the proposed revisions will meet HCD certification requirements. We do not propose to submit a complete second revised draft document. The budget assumes one round of revisions for HCD, resulting in the Final Housing Element. S. Final Housing Element Following HCD response to our consultation on revisions, PlaceWorks will submit an Administrative Draft Final Housing Element to Town staff. This scope and cost assume that by this point in the process, any final changes needed would be extremely minor. Extensive changes could affect the schedule and trigger a request for a contract amendment. The Town will be responsible for providing a single set of internally reconciled comments on the Administrative Draft Final Housing Element. PlaceWorks will revise to create the Final Housing Element. We will provide 30 hard copies and an electronic copy of the Final Housing Element. 6. Adoption and Certification Hearings PlaceWorks will attend up to two adoption hearings with the Planning Commission and /or Town Council. PlaceWorks will assist Town staff in preparing the staff reports for the hearings. Following Town Council adoption of the Final Housing Element PlaceWorks will submit the Final Housing Element as adopted by the Town Council for certification by HCD. Within five days of project approval, PlaceWorks will prepare a Notice of Determination (NOD) for submittal to the State Clearinghouse and County clerk. The budget does not include payment of any filing fees. We will provide I S hard copies of the adopted Housing Element to the Town. PLACEWORKS 17 MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS 7. HCD Certification Following Town Council adoption of the Final Housing Element, PlaceWorks will submit the adopted Final Housing Element to HCD for certification. Our schedule assumes an accelerated, 15 -day review period for the Final Housing Element. Il. SCHEDULE, PRODUCTS, AND MEETINGS A. Schedule Place Works' proposed schedule for Completion of the Housing Element Update is shown in Figure 1. As shown in the schedule, we anticipate that the project can be completed by December 31, 2014. In order to meet this schedule, it should be noted that Town review times of interim draft documents are limited to one to two weeks. This schedule assumes that an Addendum will be prepared for the Housing Element Update. Preparation of a Supplemental EIR would require a revised schedule. PLACEWORKS 18 MARCH S, 2014 TOWN OF LOS GATOS H O U S I N G E L E M E N T U P D A T E EXHIBIT A: SCOPE OF WORK AND COSTS FIGURE 1 SCHEDULE ' . a • I . I ••:• I... •r• .:I . ;: ,. Our• 11111111 1111111111111111111111111111111 .:.r . :.I. 1111111111111111111111111111111111111111 = �• • 111G II��IIGGIG�1111111111111111111111111 • •I '•: •'• 1111111111111111111111111111111111111111 • •• :1 Al ::I . J • •. . • dl v 5. • • : r •.I •� :I rl• PLACEWDRKS IIIIIIIIIIIIIIIIIICIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIGIIIIIIIIIIIIIIIIII 1 •V •- A 10 • 19 MARCH 6, 2014 THIS PAGE INTENTIONALLY LEFT BLANK TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS C. Meetings Joanna Jansen, Principal -in- Charge, will attend the following meetings for the Housing Element Update: ♦ Kick -Off Meeting ♦ Planning Commission Meeting #2 ♦ Adoption Hearings (2) David Early, Lead Facilitator, will attend and facilitate all Housing Element Advisory Board meetings (7 meetings). Mark Hoffman, Housing Manager, will attend the following meetings for the Housing Element Update: ♦ Kick -Off Meeting ♦ Planning Commission Meeting #1 ♦ Planning Commission Meeting #3 Ill. COSTS As shown in Table 1, the cost to complete the scope of work described in this proposal is $136,826. It should be noted that this cost includes $28,510 in traffic counts and other analysis for the Addendum. This cost reflects our previous experience with both staff and Community expectations for traffic analysis in Los Gatos, but we are happy to discuss in further detail with staff to refine this approach. If it becomes clear that a Supplemental EIR will be necessary before work has begun on an Addendum, the total additional cost would be $3S,000 to $45,000. Place Works recommends planning for a 5 percent to 10 percent contingency fund to cover any unforeseen out -of -scope work that might be necessary for the project. The billing rates for each team member are included in Table 1. Place Works bills for its work on a time - and - materials basis with monthly invoices. PLACEWORKS MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS A. Assumptions This scope of work and cost estimate assumes that: ♦ The Addendum will not analyze any new housing sites, rezonings, redesignations, or buildout above what was analyzed in the General Plan EIR. ♦ Any new housing sites, rezonings, redesignations, or buildout will be analyzed in a Supplemental EIR, as described in Optional Task F. The Supplemental EIR analysis will cover up to five housing sites. Any additional housing sites will require a contract amendment. ♦ The Town will be eligible for HCD's streamlined procedures. As described in our scope of work, our schedule assumes an abbreviated review period for HCD of 30 days for the Draft Housing Element and 15 days for the Final Housing Element. ♦ PlaceWorks will facilitate seven meetings with the Housing Element Advisory Board. Any additional meetings will require a contract amendment and will be billed on a time and materials basis. ♦ Billing rates for this project are guaranteed through June 2015. Billing rates would be subject to an increase of up to 6 percent on July 1, 2015, and in each subsequent year thereafter. A budget increase would be necessary to cover costs incurred after July 1, 2015. ♦ Our cost estimate includes the meetings described in Section 11. Additional meetings would be billed on a time- and - materials basis. Joanna Jansen will attend all project meetings, public workshops, and other public meetings. David Early will facilitate all Housing Element Advisory Board meetings. Each project meeting will last up to two hours. Subconsultant team members could also attend additional meetings or hearings for an additional cost based on time and materials. ♦ All products will be submitted to the Town of Los Gatos in electronic (PDF) format, except for printed copies that are specifically identified in our scope of work. Our printing allowance is shown in Table 1. This is an allowance only, based on the numbers of products and copies shown in out scope of work. If this allowance is exceeded, additional printing costs will be billed at Place Works' actual cost. ♦ Town of Los Gatos staff will be responsible for meeting logistics, including schedule coordination, printing notices, mailing costs, room reservations, room set -up and take -down, and refreshments. PLACEWORKS MARCH 5, 2014 TOWN OF LOS GATOS HOUSING. ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS ♦ Place Works will send an invoice for work completed each month. The invoice will show hours worked by labor Category, billing rate, and total by labor category plus subconsultants and reimbursable expenses. Special invoicing requirements may necessitate an additional fee. ♦ Town of Los Gatos staff will act as a clearinghouse for comments on all administrative draft documents, and will provide PlaceWorkswith a single, internally reconciled set of comments on each administrative draft. ♦ There will be a single round of intensive review and revision to each administrative draft product prior to the screencheck draft. If Town of Los Gatos staff feels that a second administrative draft is needed, a contract amendment allowing additional work will be necessary. ♦ Revisions to screencheck drafts will focus on typographical errors, formatting and other minor edits. Such revisions will not include content changes. ♦ Multiple changes from Town of Los Gatos about how to proceed, including on the sites inventory, will require a contract amendment to allow Completion of the additional work. ♦ Place Works will use Microsoft Word and /or Adobe InDesign for page layout of reports, plans and similar documents. Additional software such as Adobe Illustrator, Adobe PhotoShop, ArcGIS and AutoCAD will be used to Create illustrations, maps, diagrams and other graphics. ♦ Place Works will produce handouts and presentation materials needed for the Advisory Board meetings. The Planning Center I DC &E will not be responsible for designing or distributing notices for public meetings. PLACEWORKS MARCH 5, 2014 TOWN OF LOS GATOS HOUSING ELEMENT UPDATE EXHIBIT A: SCOPE OF WORK AND COSTS This page intentional]y left blank. 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