City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01436 11/14/2023 Consent Item 30.
Professional Services Supplemental Agreement for the Missing Middle Housing Study with Opticos Design, Inc.
File ID: 2023-01436
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager, or City Manager’s designee, to execute Supplemental Agreement No. 2 to Task Order 1 for professional services agreement PRC001326 with Opticos Design, Inc. in the amount not-to-exceed $109,295, bringing the new total not-to exceed amount to $769,128 for the Missing Middle Housing Study project; and 2) ratifying all prior supplemental agreements (including task orders) previously issued by the City Manager and resetting the City Manager’s authority to issue supplemental agreements (including task orders) in accordance with Chapter 3.64 of the City Code.
Contact: Nguyen N. Nguyen, Associate Planner, (916) 808-1964, [email protected]; Monica Chao, Administrative Analyst, (916) 808-5875, [email protected]; Matt Hertel, AICP, Long Range Planning Manager, (916) 808-7158, [email protected], Community Development Department
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Agreement with Opticos Design, Inc.
Description/Analysis
Issue Detail: On April 6, 2021, City Council passed Motion No. 2021-0073, which created an on-call list of qualified consultants to support the work of the Neighborhood Development Action Team (NDAT) and other planning initiatives. Opticos Design, Inc. was included on this on-call list under Master Service Agreement PRC001326 with a contract amount not-to-exceed $600,000 over a three- year term.
Assembly Bill 101 established the Local Government Planning Support Grants Program to provide regions and jurisdictions with one-time housing planning funding to accelerate housing production. In 2021, the Sacramento Area Council of Governments (SACOG) administered a Regional Early Action
File ID: 2023-01436 11/14/2023 Consent Item 30.
Planning 1 (REAP 1) Grant Program and allocated a portion of this funding as a non-competitive grant for its member jurisdictions based on the jurisdiction’s share of housing units in the 2021-2029 Regional Housing Needs Plan. In June 2021, the City was awarded funding from the REAP 1 Grant Program in the amount of $600,000 from SACOG.
In April 2022, Opticos Design, Inc. was hired from the NDAT on-call list to assist staff with fulfilling the grant’s scope of work for Sacramento’s Missing Middle Housing (MMH) Development Standards Project. Task Order 1 included a budget of $599,958 with funding from the REAP grant and General Plan Update. With authority from City Code 3.64.040.A.2, Supplemental Agreement 1 to Task Order 1 was executed in May 2021 to increase the contract by $59,833 with funding from the General Plan Update for additional services from Opticos Design, Inc. including MMH prototype site renderings and economic analysis related to floor area ratio (FAR) incentives for affordability and anti-displacement considerations.
Staff is requesting the authorization to execute a Supplemental Agreement No. 2 to Task Order 1 for $109,295. In response to community and City Council input on the study’s preliminary recommendations, staff would like to add additional scope and budget to conduct more analysis and modeling related to the sliding FAR scale, local bonus program, and feasibility testing to help develop final zoning and policy recommendations for Missing Middle Housing. In addition, the time of performance will be extended to December 31, 2024. Staff is also requesting that the City Manager’s authority to issue supplemental agreements (including task orders) be reset under Chapter 3.64 of the City Code.
Policy Considerations: This Study is exploring ways that the City can thoughtfully implement one of the 2040 General Plan 10 Key Strategies approved by Council in January 2021 to “permit a greater array of housing types in existing single-unit neighborhoods.” This key strategy is consistent with the 2040 General Plan Vision and Guiding Principles adopted by Council in November 2019.
Additionally, the 2021-2029 Housing Element, adopted by Council in December 2021, includes the following policy under Goal 4, Advancing Equity and Inclusion, related to increasing the availability of housing for more residents at various income levels:
H-4.1 Expand Housing Types Throughout the City. The City shall take meaningful actions to allow for a greater array of housing types throughout the city to create more inclusive and equitable neighborhoods and to affirmatively further fair housing.
The recommendation in this report is consistent with Administrative Policy 4102, Professional Services and Sacramento City Code 3.64.
Economic Impacts: Increasing housing production and access to affordable housing improves community members’ ability to improve their economic status, reduces poverty and homelessness, and promotes social integration. A strong and affordable housing environment is critical to the
File ID: 2023-01436 11/14/2023 Consent Item 30.
economic well-being and growth of Sacramento and its residents.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3);15378 (b) (2)].
Sustainability: A sustainable community should provide a variety of housing options for current and future households. Increasing housing production and attainability, particularly near high-frequency transit stops, will assist in creating a sustainable Sacramento and provide a platform for sustainable economic growth. Additionally, by being smaller in design and requiring less energy to heat and cool, MMH are more energy efficient than their larger single-family counterparts. Missing Middle Housing has the potential to reduce further sprawling development patterns and support low-carbon modes of transport, while also blending into the fabric of existing neighborhoods.
Commission/Committee Action: None.
Rationale for Recommendation: In response to community and City Council input on the study’s preliminary recommendations, staff would like to add additional scope and budget to conduct more analysis and modeling to help develop the study’s final zoning and policy recommendations for Missing Middle Housing.
Financial Considerations: There are sufficient funds in the General Plan Update program budget (I22000000, Fund 2016) to fund the Supplemental Agreement No. 2 to Task Order 1 with Opticos Design, Inc.
Local Business Enterprise (LBE): Opticos Design, Inc. is not an LBE, but they satisfy the LBE requirements by subcontracting a minimum of 5% of the contract with subconsultants (Unseen Heroes).
Attachment A