To: Board of Supervisors
Department or Agency Name(s): Permit Sonoma
Staff Name and Phone Number: Eric Gage 565-1391
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Housing Element Update (formerly Rezoning Sites for Housing) Environmental Review Services Contract, Second Amendment
End
Recommended Action:
Recommended action
Authorize the Director of Permit Sonoma to negotiate and execute a second amendment to the agreement with Rincon Consultants, Inc., dated January 14, 2020 and amended March 2, 2021, for the preparation of an Environmental Impact Report to analyze the environmental impact of the County’s Housing Element Update, increasing the total contract amount from $430,082 to $888,447.90.
end
Executive Summary:
In January 2020, the Director of Permit Sonoma executed an agreement with Rincon Consultants, Inc. (Rincon), to prepare an environmental impact report (EIR) to analyze the impact of zoning and land use changes for up to 59 sites to add sites to the County’s Housing Element site inventory, as required by State law. The agreement was amended on March 1, 2021 by action of the Board of Supervisors to reflect an expanded scope of work that included additional analysis for the Utilities and Service Systems and Greenhouse Gas Emissions sections of the Draft EIR, additional public outreach and project management, and additional edits to draft EIR sections.
Today’s proposed action will combine the environmental review of the housing element with the County’s Housing Sites Rezoning EIR. The Association of Bay Area Governments has assigned a total Regional Housing Needs Allocation (RHNA) of 3,881 dwelling units to be built in the unincorporated county during the 2023-2031 housing element cycle. The county submitted an appeal to the allocation in the summer of 2021, but the appeal was denied and the allocation is final. The unincorporated county has been allocated 1,036 very low income units, 596 low income units, 627 moderate income units, and 1,622 above moderate income units in the upcoming housing element cycle.
Due to the upcoming housing element update schedule and because the rezoning project and the housing element update involve components of the same overall effort, County staff recommend improving government efficiency by combining these two efforts into a single EIR. Staff recommends this second contract amendment to combine the required environmental review for the policy changes required for the housing element update simultaneously with the housing sites rezoning project. By entering this second contract amendment, staff anticipates publishing the revised Draft EIR for both the housing element and housing rezoning sites in mid-2022. Following a public process, the Board of Supervisors would review the updated housing element, other General Plan and area plan amendments and zoning changes for individual sites, and certify the final EIR, by the end of 2022.
This amendment will allow revisions to the Draft EIR prepared under the original agreement to include the larger policy updates required by state law for the Housing Element Update, and preparation of a Final EIR. Staff recommends that the Board authorize the Director to execute an amendment to the agreement with Rincon to increase the contract amount from $430,082 to $888,447.90. This work will be financed with previously awarded state grant funds from the Department of Housing and Community Development, the Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) grants, as well as the department’s annual General Fund contribution as set forth in more detail below.
The Board will adopt the Housing Element Update at a public hearing in late December 2022.
Discussion:
The State of California requires all cities and counties including Sonoma County, to identify sites for housing, zone them appropriately, and report on those sites and their development potential in their Housing Elements. The California Department of Housing and Community Development (HCD) awarded the County a $310,000 SB-2 Planning Grant to partially cover the cost of the EIR preparation.
The County issued a Request for Proposals on September 16, 2019 to select a consultant to prepare the EIR for the Rezoning Sites for Housing EIR. Rincon Consultants, Inc. (Rincon) was chosen as the preferred bidder. On January 14, 2020, the Board of Supervisors authorized the Director of Permit Sonoma to negotiate, finalize and execute an agreement with Rincon for an amount not to exceed $310,000 (Att. 1). The contract was amended on March 2, 2021 to include additional virtual public outreach due to the COVID-19 pandemic which prevented in-person workshops. The first amendment to the contract also included additional analysis for and revisions to the Greenhouse Gas Emissions and Utilities and Service Systems sections of the Draft EIR, updating the Biological Resources and Transportation and Circulation sections of the Draft EIR, and additional project management. The first amendment to the contract increased the contract not-to-exceed amount to $430,082 (Att 2).
In compliance with the terms of the contract and first amendment, the Draft EIR was published on April 19, 2021, and was available for comment until June 18, 2021. County staff reviewed the comments and the Administrative Draft Response to Comments and Final EIR. Due to the upcoming housing element schedule, County staff recommend combining these efforts into a single EIR. Staff recommends this second contract amendment to combine the required environmental review for the policy changes required for the housing element update simultaneously with the housing sites rezoning project. County staff anticipates publishing the revised Draft EIR for both the housing element and housing rezoning sites in mid-2022. Following a public process, the Board of Supervisors would review the updated housing element, other General Plan and area plan amendments and zoning changes for individual sites, and certify the final EIR by the end of 2022.
This second contract amendment will allow the County to meet those deadlines. (Att. 3) The second contract amendment includes preparing the County’s Housing Element Update pursuant to State law, and its associated CEQA document. The CEQA analysis will be based on the prior work that has been done on in the existing contract for the Rezoning Sites for Housing programmatic Draft EIR and any updates related to the Housing Element. The EIR will include the work that has already been done to date in the current contract, including the existing environmental documentation and technical studies for the Rezoning Sites for Housing EIR.
The existing contract and first amendment to that contract were funded from two grants from HCD. This included the HCD SB-2 planning grant ($310,000), and the Local Early Action Planning (LEAP) grant program in the amount of $120,082.
The additional scope of work in the second amendment, requested with today’s action, totaling $458,365.90, will be funded by the LEAP grant (the remaining $135,668 of the $355,750 allocated to the housing element update) and a $47,588 ABAG Regional Early Action Planning grant. The remaining $275,109.90 allocated from the department’s annual General Fund contribution. The amount of $458,365.90 is programmed in the 21/22 current budget as follows:
• $135,668 in LEAP grant revenues programmed for preparation of the draft Housing Element and EIR, and staff support and coordination.
• $47,588 in REAP grant revenues programmed for preparation of the draft Housing Element and EIR, and staff support and coordination.
• $245,109 of the department’s annual General Fund contribution, programmed for preparation of the draft Housing Element and EIR, and staff support and coordination.
• FY 22/23 the department will allocate $30,000.90in in the recommended budget to complete the project from the departments annual General Fund contribution, specifically for the preparation of the final EIR and Housing Element text, and related staff support and coordination.
The additional tasks will allow the County to meet its obligations under State law to update its Housing Element, conduct environmental review, and adopt the Housing Element and certify the EIR by the end of 2022.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Healthy and Safe Communities
Goal: Goal 3: In collaboration with cities, increase affordable housing development near public transportation and easy access to services.
Objective: Objective 1: Rezone 59 unincorporated urban sites suitable for housing development, increasing density allowance from 354 units to 2,975 units, and partner with developers and the community to break ground on as many sites as possible by 2026.
Prior Board Actions:
May 21, 2019 - Authorized application for, and receipt of, the $310,000 California Department of Housing and Community Development (HCD) SB 2 Planning Grant, to prepare an environmental impact report to analyze the potential rezoning of sites to add to the County’s Housing Element Site Inventory (“Rezoning Sites for Housing” project)
January 14, 2020 - Authorized the Director of Permit Sonoma to negotiate, finalize, and execute an agreement with Rincon Consultants, Inc., to prepare an environmental impact report for the Rezoning Sites for Housing project, for an amount not to exceed $310,000
June 9, 2020 - Authorized application for, and receipt of, the $500,000 HCD Local Early Action Planning Grant to support the County’s efforts to streamline and accelerate housing permitting and production, including preparation of the Housing Element update
March 2, 2021 - Authorized the Director of Permit Sonoma to execute an amendment to the agreement with Rincon Consultants, Inc., to increase the contract amount from $310,000 to $430,082
October 19, 2021 - Approve resolution delegating authority to the Director of Permit Sonoma to negotiate the terms of the Regional Early Action Planning Grant Suballocation Agreement and execute the final grant agreement with the Association of Bay Area Governments.
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
$428,365.00 |
$30,000.90 |
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$428,365.00 |
$30,000.90 |
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$145,109.00 |
$30,000.90 |
|
|
State/Federal |
$283,256.00 |
$30,000.00 |
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$428,365.00 |
$30,000.90 |
|
Narrative Explanation of Fiscal Impacts:
Permit Sonoma received an entitlement grant award of $500,000 from the California Department of Housing and Community Development’s Local Early Action Planning Grants Program on November 17, 2020. The grant agreement constitutes a commitment in the amount of $500,000. A total of $355,750 of the LEAP grant was allocated for the housing element update. The amount of $120,082 was spent through the first amendment of the agreement, leaving $135,668 for subsequent housing element update work. This amendment will be funded by the LEAP grant in the amount of $135,668, the REAP grant in the amount of $47,588, and the department’s annual general fund contribution in the amount of $245,109, budgeted in FY 2021-22 recommended budget.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1, Professional Services Agreement
Attachment 2, First Contract Amendment
Attachment 3, Second Contract Amendment
Related Items “On File” with the Clerk of the Board:
1. California Department of Housing and Community Development’s Local Early Action Planning (LEAP) Grant Agreement, executed December 23, 2020.
2. Association of Bay Area Governments Regional Early Action Planning Grant Agreement, dated August 16, 2021.