Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: APPROVAL OF A RESOLUTION AUTHORIZING A SECOND
AMENDMENT TO THE SANTERO WAY SPECIFIC PLAN
REZONING CONSULTANT CONTRACT WITH 4LEAF
INCORPORATED AND APPROVING A TOTAL NOT TO
EXCEED PROJECT AMOUNT
Date: September 24, 2024
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended that the City Council approve a resolution authorizing a second amendment to the Santero Way Specific Plan Update contract with 4Leaf to include a water supply assessment as required under SB 610 and SB 211 to inform the environmental impact report (EIR) being prepared for the SWSP Update and any future Transit-Oriented Communities (TOC) policy rezoning, for a total contract amount of $442,487, and approving a total not to exceed project amount of $482,487.
Background
On August 8, 2023, the City Council authorized the City Manager to enter into a professional services agreement with 4Leaf Inc., and associated 4Leaf subconsultants, to provide planning consulting services to complete the Santero Way Specific Plan Update.
In September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) published draft administrative guidance on their TransitOriented Communities (TOC) policies. These policies are intended to intensify land uses within one half mile of transit hubs with the goal of (among other things) increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. While adoption of the TOC policies is voluntary for bay area jurisdictions, it is a consideration for eligibility to receive One Bay Area Grant (OBAG) funds, which have amounted to approximately $1,000,000 in annual funding for the City of Cotati in recent years. More information on the Plan Bay Area 2050 is available at: https://planbayarea.org/
In April 2024, staff identified a potential opportunity for the environmental analysis being prepared for the SWSP Update to be expanded to also analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station (graphic attached). Including this analysis into the environmental impact report (EIR) already being prepared would result in significant cost savings, expedite the analysis and prepare the city for future adoption of the TOC policies, if the City Council chooses to do so.
On August 8, 2024, the City Council approved a contract amendment for $44,597 to analyze the impacts of rezoning qualified parcels on E. Cotati Avenue into a future Transit Oriented Communities (TOC) zoning district. These funds were budgeted in the adopted FY24/25 as a future investment as TOC zoning compliance is required for the City to be competitive for One Bay Area Grant (OBAG) funds.
Analysis/Discussion
The City of Cotati was out early in the process to increase housing around the Santero Way SMART station. Staff issued a Specific Plan Update RFQ in early 2023, with the goal of updating an antiquated office focused Plan. After approval of a grant of $415,000 from ABAG MTC, Cotati was able to secure a contract with 4Leaf Inc. to complete the Santero Way Specific Plan in August 2023.
Shortly after this consultant was under contract, the TOC policy direction began to come out from ABAG/MTC staff. Cotati leadership has indicated general support for the concept of TOC policy implementation, both with the goal of increasing housing production in close proximity to transit and service amenities, and to ensure ongoing competitiveness for OBAG funding. After Council approval of the SWSP Update Environmental Impact Report (EIR) scope modification to include rezoning all TOC eligible parcels within a half mile of the SMART station, it was realized that rezoning these additional parcels to be compliant with TOC policies would increase the potential for development (being analyzed under the EIR) beyond 500 new units.
This increase in the unit count above 500 triggers the need for a water supply assessment under SB 610 and SB 211. Unfortunately, this was not included in the amended consultant scope as it was not originally anticipated. In response to these unanticipated costs, and the desire of the City of Cotati to have the ability to implement TOC policies in all available areas of the community, staff is recommending a second scope and contract amendment to include development of a water supply assessment as a component of the EIR analysis.
Given their existing work and similar efforts underway in Cotati, 4 Leaf Inc. (and their subconsultant Rincon) were identified as the most appropriate consultants to complete the WSA.
Their on-going contract to update the SWSP, the proximity of the Plan area to the remaining TOC eligible parcels within the City and their ability to meet the anticipated schedule for the next OBAG funding cycle were all factors in making this determination.
Financial Considerations
As identified in the attached proposal, the amended scope of services from Rincon, working as a subconsultant under the 4Leaf Inc. contract, are estimated to total $19,896, resulting in a new not to exceed contract total of $442,487.
It is worth noting that the infrastructure modeling identified to be conducted by a separate consultant, Carollo and Associates, as a supplemental element of the required CEQA analysis is currently budgeted at $35,000, in accordance with a contract amendment approved by Council on August 13, 2024. The attached resolution also authorizes an increase of the total not to exceed project cost to cover the anticipated costs, including the contract with Carollo, and identifies a total project cost of $482,487.To ensure all potential increased costs of this expanded scope of work are accounted for, staff are requesting Council approval for this new not to exceed contract amount.
To date, the City has received an ABAG/MTC Priority Development Area (PDA) grant of $415,000 and appropriated $50,000 in city funds for a total funding allocation of $465,000.
Given the unexpected cost increases, staff have contacted ABAG/MTC to ask about the availability of additional funding to augment these costs. Any unfunded portion of the contract will be brought before the Council for a mid-year budget adjustment for fiscal year 2024/25.
Other than staff time allocated, these identified costs are the only anticipated general fund expenditures needed to cover the project's cost.
Environmental Issues
This action to approve a contract amendment for services is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378. Any resulting plan amendments or rezoning efforts will be analyzed for potential environmental impacts and a separate environmental determination will be made regarding those future projects.