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File Number: 21-430 <br />remaining $152,600 is proposed to be funded from the Community Planning Fee fund. <br />Staff recommends that the City Council approve and Authorize the City Manager to execute a <br />Consulting Services Agreement with Rincon Consultants, Inc. in an amount not to exceed <br />$500,000 for the preparation of the City of San Leandro’s 2023-2031 Housing Element Update <br />and associated EIR. <br />Staff will return to the City Council with a work session on the Regional Housing needs Allocation <br />(RHNA) process and Housing Element kick-off in the early fall. <br />BACKGROUND <br />State legislation requires that local agencies update their Housing Elements every eight years. <br />The next Housing Element Update for the period covering 2023-2031, known as the 6th Cycle, <br />must be adopted by January 2023. The State has also established a series of very specific <br />requirements as to the scope, content, and process by which a housing element is updated and <br />adopted, including review and approval (known as certification) by the State Department of <br />Housing and Community Development (HCD). <br />Having a Housing Element that is approved by the City Council and certified by HCD allows the <br />City to be competitive for state-funded grants and loans that support local housing programs. <br />Lack of a state-certified Housing Element could subject the City to penalties as a result of legal <br />challenge, including reduction or loss of local control over land use decisions and building-related <br />matters, and access to state grants related to affordable housing, land use/planning, and <br />transportation. <br />Consulting Services Agreement <br />The City issued a Request for Proposals (RFP) for assistance with the preparation of the Housing <br />Element Update in April 2021. While Rincon Consultants was the sole firm to respond to the RFP, <br />staff is confident that the team possesses the appropriate experience to successfully complete <br />the Housing Element Update and has found the scope of work and budget to be very competitive <br />with similar-sized jurisdictions. Reasons for receiving fewer bids is likely because a large number <br />of Bay Area cities are currently updating their Housing Elements, which affects the availability of <br />planning firms that specialize in such work. Rincon’s team has previously completed four 5th <br />Cycle Housing Element updates and is currently working to prepare 6th Cycle Updates for the <br />Cities of Carlsbad, Vista, Corona, Banning, Los Angeles, Calabasas, Walnut, Port Hueneme, <br />Simi Valley, Camarillo, Oxnard, and Palo Alto. Since the update process for Southern California <br />and Sacramento area cities is already underway, Rincon is able to bring their experience <br />preparing Housing Elements under the most recent changes to state law, to San Leandro’s <br />update. <br />Rincon will also assist in the preparation of all appropriate environmental documents for <br />compliance with the California Environmental Quality Act (CEQA), including an Environmental <br />Impact Report (EIR) for the Housing Element Update and any required re-zonings. Although <br />re-zoning of sites does not have to occur until three years following adoption of the Housing <br />Element (January 23, 2026), the EIR will analyze the effects of prospective zoning changes, so <br />Page 2 City of San Leandro Printed on 7/15/2021 <br />804