455 EAST CALAVERAS BOULEVARD, MILPITAS, CALIFORNIA 95035-5479 GENERAL INFORMATION: 408-586-3005, WWW.MILPITAS.GOV
4/16/2024
Agenda Item No. C11
REVISED REPORT
Item C11 – Revised Agenda Report – Ascent Environmental Consultant Services Professional Services Agreement Amendment
CITY OF MILPITAS
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Approve and Authorize the City Manager to Execute an Amendment to the Professional Services Agreement with Ascent Environmental for Consultant Services Related to Preparation of the Gateway-Main St. Specific Plan (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Category: Community Development
Meeting Date: 4/16/2024
Recommendation: (1) Approve an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to preparation of the Gateway-Main St.
Specific Plan; (2) Approve a Budget Appropriation of $90,000.00 $74,073.00 from the Community Planning Fund into Capital Improvement Program Project No. 3437; and (3) Authorize the City Manager to execute the amended agreement.
Background:
The Milpitas Midtown Specific Plan was originally adopted by City Council in 2002 to maximize land use, transportation, and economic opportunities along the City’s historic Main Street and to energize and catalyze mixed-use, transit-oriented development in the Midtown area, also known as the “heart” of Milpitas. Since adoption of the current Midtown Specific Plan, little of the community’s vision for this area has been realized, and many potential development sites remain vacant and underutilized, especially along Main Street. As part of the update process, the Midtown Specific Plan will be renamed the “Milpitas Gateway/Main Street Specific Plan” and will provide a new vision and strategic policy framework to guide redevelopment and reinvestment in three focus areas and transform this important gateway into an attractive and vibrant destination for the City and the region.
On April 6, 2021, the City Council adopted the FY2022-26 Capital Improvement Plan (CIP), which included the Milpitas Gateway/Main Street Plan (Midtown Specific Plan Update) as Project No. 3437 with an initial outlay of up to $960,000 from the Community Planning Fund. On May 26, 2021, the Metropolitan Transportation Commission (MTC) awarded the City of Milpitas an additional $500,000 through its Priority Development Area (PDA) Planning Grant Program to complete the project.
On March 16, 2021, the Purchasing Division released RFP No. 2515 seeking proposals from qualified vendors with demonstrated experience in municipal planning services to assist the City with the Milpitas Gateway/Main Street Specific Plan (Midtown Specific Plan Update). Following a competitive evaluation process in accordance with the City’s Municipal Code, the top firm, Ascent Environmental, was invited to continue in the evaluation process by providing a detailed scope of work with the proposed compensation for all services outlined in the RFP.
On September 21, 2021, City Council authorized the City Manager to execute a master funding agreement with the Metropolitan Transportation Commission to receive funding through the PDA Planning Grant Program and a professional services agreement with Ascent Environmental for consultant services to prepare the Gateway/Main Street Specific Plan.
Tasks 1-3, which include existing conditions assessments, extensive community outreach, plan visioning, scenario planning, and preferred plan strategies, have been completed. Task 4 (Specific Plan Drafting) and Task 5 (Environmental Evaluation) are underway, and a Public Draft Plan is expected in May 2024. Following public review of the Public Draft Plan, the project team will continue to refine the plan and environmental analysis and aim for adoption hearings in Fall 2024.
The initial project budget was $930,708. Per Section I-2-3.21 of the Milpitas Municipal Code, the Purchasing Agent is authorized to execute amendment sup to 10 percent of a contract (over $100,000) or $20,000, whichever is less, and up to $40,000 in cumulative amendments. As such, the Purchasing Agent twice executed amendments to the Professional Services Agreement with Ascent Environmental to increase the project budget by $19,500 each time, for a total budget increase of $39,000, resulting in a project budget of $969,708.
Analysis:
An additional amendment to the professional services agreement with Ascent Environmental is needed to reallocate budget amounts between tasks and increase the overall project budget by $90,000. The reallocation of the project budget between tasks will allow the City to complete the Gateway-Main St. Specific Plan more efficiently. Certain tasks by subconsultants were completed under budget and other tasks related to public engagement and outreach were eliminated based on Council feedback from the April 25, 2023 Council study session to streamline the planning process. Therefore, the amendment proposes shifting the excess funds from these tasks to Task 4.2 (Administrative Draft Plan), which is requiring more time and budget than expected.
An additional $90,000 is necessary to augment the budget for Task 4.2 (Administrative Draft Plan), Task 4.3 (Infrastructure and Implementation Chapters), and Task 7 (Project Management). The original scope of work and budget was initially prepared in 2021. At that time, there were several unknowns regarding the scope of work:
1. The project area and boundary;
2. Preparation and inclusion of specific zoning regulations and development standards within the Specific Plan; and
3. The existing condition of utilities and infrastructure within the plan area.
Throughout the preparation of the plan, the project area has expanded to annex adjacent neighborhoods which would benefit from inclusion into the plan area. An additional redevelopment focus area was also added to maximize the development potential of new opportunity sites. Additionally, City staff determined that the scope of work should also include preparing zoning regulations and development standards to ensure consistency between the Specific Plan and Milpitas Zoning Ordinance upon plan adoption rather than amending the zoning map and text later. Furthermore, the existing condition of utilities and infrastructure within the plan area requires additional analysis and utility improvements to ensure that future development will be adequately served. Lastly, due to the added complexity to the scope of work, the project schedule has been extended, requiring additional budget for project management (Task 7).
A redline version of the project budget is attached to show the proposed amendment.
Policy Alternatives:
Alternative 1: Do not approve and authorize the City Manager to execute an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to the preparation of the Gateway-Main St. Specific Plan.
Pros: None.
Cons: Failure to approve and authorize the City Manager to execute an amendment to the professional services agreement with Ascent Environmental would result in the City being unable to finish updating the Midtown Specific Plan and forgoing $500,000 in approved PDA grant funds, which need to be expended within 36 months of execution of a funding agreement with MTC. Without the Milpitas Gateway/Main Street Specific Plan, the existing Midtown Specific Plan would remain in place. Absent new policies and standards to facilitate catalytic development, the Main Street area and Calaveras Corridor would likely continue to suffer from disinvestment and a lack of identity. The City would potentially miss out on the opportunity to revitalize an important area of the city.
Reason not recommended: In light of the City’s anticipated Regional Housing Needs Allocation (RHNA) from the Association of Bay Area Governments (ABAG), the Milpitas Gateway/Main Street Specific Plan is needed to help Midtown realize its full development potential and support regional and state efforts to address critical housing needs. If Midtown is unable to accommodate more housing development, it will be more challenging to meet the City’s RHNA obligation. Moreover, the Milpitas Gateway/Main Street Specific Plan is needed to implement the vision of the recently adopted General Plan, which establishes Midtown as a key opportunity area for new economic growth and development in the City.
Fiscal Impact:
The additional $90,000 will be funded by CIP 3437 Milpitas Gateway – Main Street Specific Plan Update project. This project is currently funded by Community Planning Fees and a Priority Development Area Planning Grant from the Metropolitan Transportation Commission. As of 4/11/2024, the remaining balance of this CIP project is $15,927 and there is insufficient funds to fund this activity. City will appropriate additional $74,073 from Community Planning Fund (Fund 214) to increase the funding of this project.
California Environmental Quality Act:
Not applicable. The selection and contractual arrangement of planning services do not constitute a project, in accordance with Section 15378 of the CEQA Guidelines.
Recommendation:
(1) Approve an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to preparation of the Gateway-Main St. Specific Plan; (2) Approve a Budget Appropriation of $90,000.00 $74,073.00 from the Community Planning Fund into Capital Improvement Program Project No. 3437; and (3) Authorize the City Manager to execute the amended agreement.
Attachment:
(a) Amended Project Budget
(b) Amendment No. 3 to the Professional Services Agreement with Ascent Environmental (c) CIP Project No. 3437
(d) Budget Change Form
455 EAST CALAVERAS BOULEVARD, MILPITAS, CALIFORNIA 95035-5479 GENERAL INFORMATION: 408-586-3005, WWW.MILPITAS.GOV
4/16/2024
Agenda Item No. 16
ADDITIONAL ATTACHMENTS
RECEIVED AFTER AGENDA PACKET
DISTRIBTUION
Item 16 – Conduct a Public Hearing and Adopt a Resolution Approving Site Development Permit, Density Bonus Permit and Environmental Assessment and Allow the Development of Two Multi-Family Residential Buildings at 1300 South Main Street
- Letter from the Public
CITY OF MILPITAS
Apr 16, 2024
CityofMilpitas455EastCalaverasBoulevardMilpitas,CA95035 Re:100%A ordableProjectat1300SouthMainStreet
Byemail:[email protected];[email protected];[email protected];[email protected];[email protected] CC:[email protected];[email protected];[email protected];[email protected] DearMilpitasCityCouncil,
TheCaliforniaHousingDefenseFund(“CalHDF”)submitsthislettertoremindtheCouncilofitsobligationtoabidebyallrelevantstatehousinglawswhenevaluatingtheproposed118-unit,100%a ordableresidentialbuildingat1300SouthMainStreet.TheHousingAccountabilityAct(Gov.Code,§65589.5;the“HAA”)requiresapprovalofzoningandgeneralplancomplianthousingdevelopmentprojectsunless indingscanbemaderegardingspeci ic,objective,writtenhealthandsafetyhazards.TheHAAalsobarscitiesfromimposingconditionsontheapprovalofsuchprojectsthatwouldreducetheproject’sdensityunless,again,suchwritten indingsaremade.
Asoutlinedinthesta report,theproposeddevelopmentcomplieswithlocallanduserules,includingtheCity’szoningcodeandGeneralPlan.TheHAA’sprotectionsthereforeapply,andtheCitymustnotrejecttheproject,exceptbasedonhealthandsafetystandards,asoutlinedabove.Furthermore,theCouncilalsomaynotdenytheprojectduetosubjectivedevelopmentreviewstandards,suchasaesthetics,astheHAAonlypermitsconsiderationofobjectivestandards.(Gov.Code,§65589.5,subd.(j).) CalHDFalsowritestoemphasizethattheDensityBonusLaw(Gov.Code,§65915;the“DBL”)o erstheproposeddevelopmentcertainprotections.TheCouncilmustrespecttheseprotections.InadditiontograntingtheincreaseinresidentialunitsallowedbytheDBL,theCouncilmustnotdenytheprojecttheproposedwaiversandconcessionswithrespecttoactivefrontage,provisionofsecondaryfaçadematerials,fenestrationdesign,base/middle/topdi erentiation,groundfloorglazing,commonopenspace,pedestrian 360GrandAve#323,Oakland94610www.calhdf.org
connections,parkingscreeningwithcommercial/habitableuses,andlocationofserviceareas,storage,utilities,andequipment,unlessitmakeswritten indingsasrequiredbyGov.Code,§65915,subd.(e)(1)thatthewaiverswouldhaveaspeci ic,adverseimpactuponhealthorsafety,andforwhichthereisnofeasiblemethodtosatisfactorilymitigateoravoidthespeci icadverseimpact.Increaseddensity,concessions,andwaiversthataprojectisentitledtoundertheDBLdonotrendertheprojectnoncompliantwiththezoningcodeorgeneralplan,forpurposesoftheHAA.(Gov.Code,§65589.5,subd.(j)(3).) Additionally,theprojectisexemptfromenvironmentalreviewundertheClass32CEQAcategoricalexemption(In-FillDevelopmentProjects)pursuantto§15332oftheCEQAGuidelines,astheprojectisconsistentwiththeapplicablegeneralplandesignationandallapplicablegeneralplanpoliciesaswellaswiththeapplicablezoningdesignationandregulations;theproposeddevelopmentoccurswithincitylimitsonaprojectsiteofnomorethan iveacressubstantiallysurroundedbyurbanuses;theprojectsitehasnovalueashabitatforendangered,rareorthreatenedspecies;approvaloftheprojectwouldnotresultinanysigni icante ectsrelatingtotraf ic,noise,airquality,orwaterquality;andthesitecanbeadequatelyservedbyallrequiredutilitiesandpublicservices.
Asyouarewellaware,Californiaremainsinthethroesofastatewidecrisis-levelhousingshortage.Newhousingsuchasthisisapublicbene it;itwillbringincreasedtaxrevenue,newcustomerstolocalbusinesses,decarbonizationinthefaceofclimatecrisis–andmostimportantly,withitsprovisionof118badly-neededa ordableunits,itwillreducedisplacementofexistingresidentsintohomelessnessorcarbon-heavycarcommutes.Itwillalsohelpcutdownontransportation-relatedgreenhousegasemissionsbyprovidinghousinginmoreurbanareasasopposedtofarther-flungregionsinthestate(andoutofstate).Whilenooneprojectwillsolvethestatewidehousingcrisis,theproposeddevelopmentat1300SouthMainStreetisastepintherightdirection.CalHDFurgestheCounciltoapproveit,consistentwithitsobligationsunderstatelaw.
CalHDFisa501(c)3non-pro itcorporationwhosemissionincludesadvocatingforincreasedaccesstohousingforCaliforniansatallincomelevels,includinglow-incomehouseholds.YoumaylearnmoreaboutCalHDFatwww.calhdf.org.
Sincerely,
DylanCaseyCalHDFExecutiveDirector
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JamesM.LloydCalHDFDirectorofPlanningandInvestigations
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