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08-067 Bay Area EconomicsAGREEMENT FOR THE PERFORMANCE OF SERVICES BY AND BETWEEN CITY OF CUPERTINO, CALIFORNIA AND BAY AREA ECONOMICS This agreement for the performance of services ("Agreement") is made and entered into on this 2nd day of June, 2008 ("Effective Date"), by and between Bay Area Economics, a California corporation, with its principal place of business located at 1285 66`~ Street, Emerwille, CA ("Contractor"), and the City of Cupertino, California, a general law California municipal corporation, with its principal place of business located at 10300 Torre Avenue, Cupertino, California 95014 ("City"). City and Contractor may be referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement." RECITALS Whereas: A. City desires to secure professional services more fully described in this Agreement; B. Contractor represents that it, and its sub-contractors, if any, have the professional qualifications, expertise, desire and any license(s) necessary to provide certain goods and/or required services of the quality and type which meet the City's requirements; and, C. The Parties have specified in this Agreement the terms and conditions under which such services will be provided and paid for. Contractor and City agree as follows: AGREEMENT PROVISIONS 1. SERVICES TO BE PROVIDED City employs Contractor to perform the services ("Services") more fully described in Exhibit A entitled, "SCOPE OF SERVICES." Exhibit A is attached and incorporated by this reference. Except as otherwise specified in this Agreement, Contractor shall furnish all necessary technical and professional services, including labor, material, equipment, transportation, supervision and expertise to satisfactorily complete the work required by City at his/her own risk and expense. 2. TERM OF AGREEMENT Unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Service Contract -Bay Area Economics Page 1 of 5 June 2, 2008 Agreement shall begin on the Effective Date and terminate at the end of day on Ju~30, 2009. a. Commencement of Services Contractor shall begin performing Services after receiving written notice from the City to proceed. b. Completion of Services Contractor shall complete Services within the time limits set forth in the Scope of Services or as mutually determined in writing by the Parties. When City determines that Contractor has satisfactorily completed the Services, City shall give Contractor written Notice of Completion, and Contractor shall not incur any further costs under this Agreement after receiving such notice. 3. COMPENSATION AND PAYMENT a. In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and services rendered by Contractor at the rate per hour for labor and cost per unit for materials as outlined in Exhibit B, entitled "SCHEDULE OF FEES," attached and incorporated by this reference. b. Contractor will bill City on a monthly basis for Services provided by Contractor during the preceding month, subject to verification by City. City will pay Contractor within thirty (30) days of City's receipt of invoice. 4. NO ASSIGNMENT OF AGREEMENT City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. 5. NO THIRD PARTY BENEFICIARY This Agreement shall not be construed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action under this Agreement. 6. INDEPENDENT CONTRACTOR Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights, however, to manage its employees in their performance of Services under this Agreement. Contractor is not authorized to bind City to any contracts or other obligations. 7. SUBCONTRACTING None of the Services under this Agreement shall be performed by subcontractors unless Contractor specifically identifies subcontractors in writing and City pre-approves such subcontractors in writing. Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it. 8. USE OF CITY NAME OR EMBLEM Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City. 9. AUDITS Service Contract -Bay Area Economics Page 2 of 6 City, through its authorized representatives, has the right during the term of this Agreement, and for three (3) yeazs from the date of final payment for goods and/or Services provided under this Agreement, to audit the books and records of Contractor regarding matters covered by this Agreement. Contractor agrees to maintain accurate books and records in accordance with generally accepted accounting principles. Any expenses not so recorded shall be disallowed by City. Contractor agrees to help City meet any reporting requirements with respect to Contractor's Services if requested by City in writing. 10. QUALIFICATIONS OF CONTRACTOR Contractor represents that its personnel are qualified to furnish Services of the type and quality, which City requires. City expressly relies on Contractor's representations regarding its skills and knowledge. Contractor shall promptly perform all Services requested by City in a safe manner and in accordance with all federal, state, and local operation and safety regulations. Contractor shall work closely with and be guided by City. Contractor shall also perform all work in accordance with generally accepted business practices and performance standards of the industry. 11. MONITORING OF SERVICES City may monitor the Services performed under this Agreement to determine whether Contractor's operation conforms to City policy and to the terms of this Agreement. City may also monitor the Services to be performed to determine whether financial operations aze conducted in accord with applicable City, county, state, and federal requirements. If any action of Contractor constitutes a breach, City may terminate this Agreement pursuant to the provisions described herein. 12. WARRANTY Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect, and shall conform to the specifications, requirements, and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate, or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City. 13. FAIR EMPLOYMENT Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, condition of physical handicap, religion, ethnic background, or marital status, in violation of state or federal law. 14. CONTRACTOR TO HOLD CITY HARMLESS To the extent permitted by law, Contractor agrees to indemnify, protect, defend, and hold harmless City, its City Council, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim, arising from Contractor's negligent, reckless or wrongful acts, errors, or omissions with respect to or in any way connected with the performance of the Services by Contractor, its agents, subcontractors and/or assigns under this Agreement. 15. INSURANCE REQUIREMENTS During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall purchase and maintain in full force and effect, at no cost to City insurance policies with respect to emp"loyees and vehicles assigned to the Performance of Services under this Agreement with coverage amounts, required endorsements, certificates of insurance, and coverage verifications as defined in Exhibit C attached and incorporated by this reference. 16. AMENDMENTS Service Contract -Bay Area Economics Page 3 of 6 ni inn innnn This Agreement maybe amended only with the written consent of both Parties 17. INTEGRATED DOCUMENT This Agreement represents the entire agreement between City and Contractor. No other understanding, agreements, conversations, or otherwise, with any representative of City prior to execution of this Agreement shall affect or modify any of the terms or obligations of this Agreement. Any verbal agreement shall be considered unofficial information and is not binding upon City. 18. SEVERABILITY CLAUSE In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect. 19. LAW GOVERNING CONTRACT This Agreement shall be governed and interpreted using the laws of the State of California. 20. DISPUTE RESOLUTION a. Any controversies or claims between Contractor and City regarding this Agreement must first be put in writing and delivered to the other Party. The Parties will meet in good faith to attempt to resolve the issue in question. If the Parties fail to come to an agreement on the resolution of the issue, all required administrative procedures must be followed. If all administrative procedures are exhausted and the Parties are unable to resolve the issue, the matter must be submitted to mediation within thirty (30) calendar days after the written request for mediation is delivered by one Party. b. The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request that the Superior Court of Santa Clara County appoint a mediator. The mediation meeting shall not exceed one work day [eight (8) hours]. The Parties may agree to extend the time allowed for mediation under this Agreement. c. Mediation under this section is a condition precedent to filing an action in any court. In the event litigation or mediation arises out of any dispute related to this Agreement, the Parties shall each pay their respective attorneys' fees, expert witness costs and cost of suit, regardless of the outcome of the litigation. d. Only after both the administrative dispute resolution procedure and the mediation procedure have failed to resolve a dispute between the Parties may one or both of the Parties file suit in the appropriate civil court. 21. VENUE The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California. 22. ELECTION OF REMEDIES The pursuit by any Party of any specific remedy shall not exclude any other remedy available to the Party. 23. CONFLICT OF INTERESTS This Agreement does not prevent either Party from entering into similar agreements with other parties. To prevent a conflict of interest, Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful Service Contract -Bay Area Economics Page 4 of 6 performance of this Agreement. Contractor is familiar with the provisions of California Government Code Section 87100 and following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises. 24. TERMINATION OF THE AGREEMENT a. Termination Without Cause Either Party may terminate this Agreement without cause by giving the other Party written notice ("Notice of Termination"), which clearly expresses that Party's intent to terminate the Agreement. Notice of Termination shall become effective no less than thirty (30) calendar days after a Party receives such notice. After either Party terminates the Agreement, Contractor shall discontinue further services as of the effective date of termination and City shall pay Contractor for all Services satisfactorily performed up to such date. b. Termination For Cause For purposes of this Agreement, the term "default" shall mean the failure of any Party to perform any material obligation in the time and manner provided by this Agreement. Either Party may terminate this Agreement in the event of a default by the other Party by providing a written Notice of Termination to the defaulting Party. Such Notice of Termination shall become effective no less than ten (10) calendar days after a Party receives such notice. Such Notice of Termination for cause shall include a statement by the terminating Party setting forth grounds for determination of default under the Agreement. In the event this Agreement is terminated for cause as set forth under this section, City shall pay Contractor for all Services satisfactorily performed up to the date the Agreement is terminated. City may deduct from such payment the amount of actual damage, if any, sustained by City due to Contractor's failure to perform the Services or for breach of this Agreement. c. Opportunity to Cure Default Upon receipt of a Notice of Termination by a Party arising from its default under this Agreement, the defaulting Party shall have five (5) days from the receipt of such notice to cure the default by making such payment or performing the required obligation. If the default is cured to the mutual satisfaction of the Parties, the Agreement shall remain in effect upon written acceptance of the cure by the Party who issued the Notice of Termination for cause. 25. NOTICES All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows: City of Cupertino Office of Community Development Attn: Vera Gil 10300 Torre Avenue Cupertino, CA 95014 or by facsimile at (408)777-3333 And to Contractor address as follows: Bay Area Economics 1285 66`s Street Emeryville, CA 94608 or by facsimile at (510) 547-9388 /// /// /// /// Service Contract -Bay Area Economics Page 5 of 6 n~ inn innnn The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date. CITY OF CUPERTINO, CALIFORNIA a general law California municipal corporation APPROVED FOR FORM: arles Kilian City Attorney By: David W. Knapp City Manager ATTEST: 10300 Torre Avenue Cupertino, California 95014 "' ~~~~ Telephone: (408) 777-3000 Kim Smith Facsimile: (408) 777-3333 City Clerk "City" By: BAY AREA ECONOMICS ~~ [TYPE oR PR-rtT rrAME~ Janet Smith-Heimer 1285 66th Street Emeryville, CA 94608 Telephone: (510) 547-9380 Facsimile: (510) 547-9388 "Contractor" Service Contract -Bay Area Economics Page 6 of 6 AGREEMENT FOR THE PERFORMANCE OF SERVICES BY AND BETWEEN CITY OF CUPERTINO, CALIFORNIA AND BAY AREA ECONOMICS EXHIBIT A SCOPE OF SERVICES The Services to be performed for the City by the Contractor under this Agreement are more fully described in the Contractor's proposal entitled Proposal to Prepare Housing Element Update, Revised Scope of Work, Budget and Timeline, consisting of 13 pages, dated April 17, 2008, which is attached to this Exhibit A and incorporated by this reference. Bay Area Econonucs Contract -Scope of Services 06/02/2008 Page 1 of 1 Exhibit A bae Proposal to Prepare Housing Element Update Revised Scope, Budget, and Timeline Submitted to: The City of Cupertino Submitted by: Bay Area Economics (BAE) Design, Community & Environment (DC&E) April 17, 2008 Bay Area Economics Headquarters 510.547.9380 1285 66th Street fax 510.547.9388 San Francisco Bay Area Sacramento New York Washington, D.C. Emeryville, CA 94608 bael@bael.com bayareaeconomics.com Scope of Work This revised work scope reflects a City staff request to enhance the prior BAE proposal in order to incorporate a broader, multipurpose community participation program. BAE has considered city staff input and developed this proposal; however, please note that we are open to further refinement at City direction. Task 7: Projecf Start-Up and Review of Background Materials This task will involve a start up meeting with BAE and City staff to review project scope and schedule. BAE will also review relevant background materials, including the prior Housing Element and the General Plan. BAE will also tour Cupertino, focusing on previously identified Housing Opportunity sites. We also recommend arranging an introductory phone call or meeting with the staff person from the Department of Housing and Community Development (HCD) assigned to review the Cupertino Housing.Element, in order to establish a working relationship and obtain early comments/concerns from HCD. Task 2: Community Participation Program Based on initial discussions with City staff, BAE proposes to conduct an extensive community participation program designed to achieve the following objectives. ^ Address City Council questions and concerns regarding Housing Elements, housing needs, and housing planning options for Cupertino ^ Engage a diverse set of community stakeholders in a productive dialog on housing issues, including residents, local small and large employers, school districts' administrators/ parents, and other interested parties ^ Provide accessible information regarding Cupertino's housing issues using guided meetings, a community survey, and video and graphic materials on the Internet to reach a broad audience ^ Achieve a certified and adopted Housing Element Update All components of the process are described below, and repeated by reference in the subsequent tasks to indicate the sequencing of the items. Introductory Council Presentation (Study Session) As the initial step of the Housing Element Update, BAE will provide a brief Power Point presentation describing local affordable and workforce housing needs, legal requirements, current and past RHNA numbers and their meaning, and an outline of the Housing Element Update process including community participation, to City Council. BAE will respond to Council questions and comments, and refine our work program as needed. Introductory Housing Advisory Commission Meeting BAE will also attend a regularly scheduled Housing Advisory Commission meeting to introduce our team and provide a similar overview as described above. We will also solicit the Commission's input on key stakeholder invitations (see below) and invite Commission members to attend all upcoming events. Key Stakeholder Focus Group Process This step is designed to work closely with a group of key stakeholders in a small-group setting, to provide an interactive venue to provide information, elicit issues, and work towards building support for the Housing Element's policies and programs. This process will also provide video content for subsequent web posting, to enable a broader audience to view an edited version of the meetings (note: we may want to interview key stakeholders after the meeting process, to videotape their opinions and conclusions after working through the issues rather than raw footage of the proceedings). We envision a process of three meetings, involving the same set of key stakeholders. The emphasis of this key stakeholder process will be to work through complex issues which have created past concerns, such as impacts of housing development on the public school districts (including data to help clarify issues), and seek common ground. We also hope to engage members of the business community in these meetings, to forge deeper connections around the issues of housing for the workforce. Stakeholders will include local "thought leaders" on housing issues, including members from organized groups interested in this issue, as well as parent and faculty from the local school districts, local business leaders, and hopefully at least one or two persons assisted by prior affordable housing development and/or face housing need who reside in the community. Ideally, the group would be limited to 15 participants to allow for an in-depth and nuanced discussion. Working closely with City staff, BAE will conduct a full day of intensive interviews with local stakeholders to build support for the Housing Element update and recruit participants for the focus group process. Also, BAE will work with the City to finalize the agenda and format for these sessions which will be open to the public. The following presents a preliminary concept of the focus group agendas: Focus Group Meeting #1 will summarize the purpose of the Update, the key components of a Housing Element, the City's legal requirements, and the implications of having an uncertified Element. Data on local housing need will also be presented, showing, for 2 example, members of the local workforce who need affordable housing, and the role that housing serves in local economic development. This session will also allow stakeholders to voice their concerns about the Update process and how new housing may impact the community. This discussion will help set the agenda for subsequent sessions. Focus Group Meeting #2 will address the impacts of new housing development, examining fiscal concerns, school capacity impacts, and other issues that may arise in the first session. BAE will present data on each of these items to help clarify common perceptions (e.g., school generation rates, school capacity) about new housing's impacts on the community, and lead a discussion on ways to help mitigate impacts. Focus Group Meeting #3 will address housing design issues, using visual tools and/or interactive games to educate participants about different housing product types, densities, and heights. DC&E will assist BAE in preparing the materials for this session, drawing on past work together developing prototypes and interactive exercises in similar settings. Each focus group session will be videotaped for inclusion in the Information Modules described below. The City will provide the necessary personnel and technology for recording the sessions in a format that is suitable for online posting. Responsibility to provide meeting venues and refreshments would also be handled by staff. Website Information Modules In tandem with each focus group meeting, BAE will package the presentation materials and videotaped sessions/post-meeting video interviews with stakeholders into an "information module" suitable for posting on the City's website. These modules are meant to introduce the issues and outcomes of each focus group to the wider community, setting the stage for the Community Workshop. The budget for this task assumes that only minor editing of the materials will occur prior to online posting. As an optional task, BAE can also arrange for translation of the visual materials into Mandarin. Community Workshop After the above process and preparation of a draft Housing Element Update, BAE will lead a Community Workshop. We envision enlisting the Housing Commissioners as meeting conveners, to build Commission capacity and establish a local connection with workshop participants. Thus, the Housing Advisory Commssion could convene and introduce the workshop, and after modest training, help facilitate small group discussions. The Connnunity Workshop will introduce the attendees to the Housing Element Update process, present a selection of the educational materials from the Focus Groups, and give participants an 3 opportunity to comment on the Public Draft Element. BAE and DC&E will work with City staff to create a meeting format that allows for interactive discussion in small groups, and results in a productive outcome and clear direction for the draft Housing Element. If staff deem translation services necessary, BAE can .arrange for simultaneous translation of the meeting into Mandarin as an optional task. Responsibility to provide the meeting venue along with.refreshments for participants would be handled by staff. In terms of the project timing, BAE expects to work on the various components of the Housing Element Update in tandem with the Community Participation Program, completing a Public Draft in time for presentation to the Community Workshop. Task 3: Conduct Housing /Needs Assessment BAE will collect and analyze data from a variety of sources as described below in order to prepare a Housing Needs Assessment and address other Housing Element requirements. This information will also form the basis of the informational presentations to be made to the City Council, the Housing Advisory Commission, and the Key Stakeholder Focus Groups. Economic and Demographic Overview BAE will prepare an economic and demographic overview for Cupertino to establish the economic and demographic context for the Housing Element. This work will form a foundation for the Needs Assessment portion of the Housing Element. This task will analyze population, employment, and housing trends, and include projections for future growth. In addition, the analysis will also explore demographic characteristics such as household income distribution, age, household type and tenure, educational and occupational characteristics, and place of employment, based on the Census Transportation Planning Package (CTTP) and unpublished Public User Microdata Series (PUNS) where applicable. The analysis will also utilize updated data from the State Department of Finance (DOF), the State Employment Development Department (EDD), and other commercial and governmental data sources. The analysis of economic and demographic conditions will include comparisons between Cupertino, Santa Clara County, the ABAG region, and California as a whole, to facilitate an understanding of what characteristics make the City unique and what characteristics are more reflective of regional and statewide trends and conditions. Overview of Current Housing Market Conditions BAE will prepare an analysis of current housing market conditions in the City. This task will examine the match between the demand and supply sides of the local housing market, particularly as they relate to the provision of a suitable range of housing opportunities for households of all 4 income levels. This task will address factors such as new housing production (rate of production by type), market rents, sales prices and trends, vacancy rate trends, planned and proposed new housing, and identification ofunder-served market segments (i.e., by income level and housing types). Document Accomplishments of Existing Housing Element Using data regarding housing production and implementation of various housing-related programs to be supplied by staff, BAE will document the City's housing accomplishments during the current Housing Element planning period in relation to the current Housing Element's stated objectives. BAE will submit to staff a list of the data required, including housing production, rehabilitation, and preservation statistics, and actions taken to implement various programs and policies in the current Housing Element. This process will help to identify effective housing activities, as well as those that may require modification or which are no longer applicable. This information will be considered in the process of updating the Housing Element objectives, policies, and programs. Analyze Housing Needs BAE will prepare an assessment of housing needs in Cupertino. This task will also evaluate local housing affordability and the match between local household incomes and costs of rental and ownership housing (including estimating housing cost burdens for existing renters and owners). It will also include documenting and analyzing the housing needs of various special populations, including: ^ Persons in Need of Emergency Shelter; ^ Elderly; ^ Disabled; ^ Large Families; and ^ Single-parent households. To comply with the requirements imposed by SB520 for disabled housing constraints, BAE will conduct the SB 520 analysis following the evaluation "tool" posted on HCD's web site. The tool provides a check list to determine whether the jurisdiction has reviewed their policies and regulations to see if they impose any undue constraints on disabled housing, and if they have provisions for reasonable accommodations for the disabled. Develop Affordable Housing Inventory and Analyze Preservation Needs of Units at Risk of Conversion BAE will update information contained in the City's current Housing Element as to the number and type of affordable housing units in Cupertino based on information provided by staff. Furthermore, BAE will update information regarding the risk of affordable housing conversion to market rate during the planning period. 5 Task 4: Assess Constraints to Housing Production This task includes an evaluation of local barriers to housing production, covering such factors as land costs, construction costs, availability of financing, regulatory constraints, availability of land for residential development, infrastructure availability, etc. To assist in this assessment, staff will provide BAE with an updated schedule of fees for the development of housing and will also provide information regarding the City's residential site improvement standards and residential entitlement processing procedures. BAE will also interview up to five local housing developers, including affordable housing developers, regarding their experiences in Cupertino and their suggestions for strategies to facilitate additional housing production withirrthe City. Task 5: Analyze City's Ability to Accommodate Regional Housing Needs Allocation DC&E will analyze the City's ability to accommodate its RHI~TA allocation. Based on initial discussions with City staff, this task will likely require less intensive work than typical for many cities, due to prior intensive work on identifying sites as well as a decrease in RHI~lA for this Housing Element cycle. Working with City staff, DC&E will prepare an updated inventory and map of land suitable for residential development, including vacant residentially zoned sites, vacant non-residentially zoned sites that allow residential uses, underutilized residentially zoned sites that are capable of being developed at a higher density or with greater intensity and non-residential zoned sites that can be redeveloped for, and/or rezoned for, residential use. DC&E will determine which sites identified in the inventory are available and suitable to accommodate Cupertino's RIBA of 1,170 units. This analysis will determine the City's ability to provide for a variety of housing types including multifamily rental, factory-built, mobile homes and transitional housing and emergency shelters. DC&E will establish the number of housing units that can potentially be accommodated on each site. DC&E will establish the number of units that can accommodate the City's share of housing for lower-income households, and will determine if existing land use controls allow for development of housing for lower-income households. DC&E will evaluate the feasibility of redevelopment ofnon-vacant sites considering factors such as the extent to which existing uses constitute and impediment to additional residential development, recent development trends, market conditions, and existing or proposed incentives. If the land inventory analysis does not demonstrate a supply of suitable, available, and appropriately zoned sites that are sufficient to accommodate the City's housing need by income level, DC&E will prepare a program to accommodate the remaining housing need within the planning period. Strategies to increase total residential development capacity include establishing minimum densities, modifying zoning and development standards, encouraging the redevelopment and reuse ofnon-vacant or underutilized sites, removing other housing-production constraints, 6 assisting in the development of housing, and conserving existing housing stock. In formulating this program, DC&E will pay close attention to the ability of the City to satisfy its RHNA requirement through housing units that have a lower impact on local school district capacity. Accessory dwelling units and smaller single-person units, in particular, may play a role in this regard. Task 6: Identify Housing Policies, Objectives, and Programs Working with the City, BAE will develop goals and policies that address local housing needs, as well as a series of quantified objectives for units to be constructed, rehabilitated, and conserved by income group, per HCD requirements. Additionally, BAE will collaborate with the City to craft a comprehensive housing program that works towards achieving these objectives. The program will include short- and long-term action items, identify time lines and responsible agencies, and lay out a monitoring and evaluation component, where appropriate, to ensure ongoing implementation. Again, particular attention will be paid to actions that address the effect of new housing development on local. schools. BAE can also incorporate policies addressing green building and other sustainable development practices, should the City elect to highlight these points. Task 7: Prepare Administrative Draft /Public Draff of Housing Element BAE will prepare and submit a Administrative Draft Housing Element formatted and organized to create areader-friendly and easily navigated document. Following one round of comments, BAE will make changes to the document and prepare it for distribution as a Public Draft. This Public Draft would be reviewed at the Community Workshop. Task 8: Participate in Public Hearings BAE will also participate in up to two public hearings (i.e., Planning Commission, and/or City Council meetings) to present the Public Draft Housing Element Update for review and recommendations. This assumes that the Housing Advisory Commission will offer its input to BAE through the Community Workshop and individual communication with BAE staff. This task also includes up to three meetings with staff to draft and review the Housing Element Update. Task 9: Prepare HCD-Review Draft Housing Element Upon receiving comments from the Planning Commission, members of the Council, and the community on the Public Draft Housing Element, BAE will confer with staff to discuss options to address comments and determine revisions to be made. BAE will then revise the document accordingly, and prepare aHCD-Review Daft Housing Element for submittal to HCD for its 7 required 60-day review. Task 70: Respond to HCD Commenfs and Prepare Final Draft Housing Element Upon receipt of HCD's written comments on the HCD-Review Draft, BAE and City staff will confer with HCD staff to discuss their comments on the draft and discuss any compliance issues, along with possible solutions. BAE will make any necessary changes to the document in consultation with staff, and produce a Final Draft Housing Element. This task also includes one meeting in Sacramento with HCD staff. Task 77: Public Hearing on the Final Draft Housing Elemenf BAE staff will attend one City Council hearing to present the Final Housing Element. In discussing the Final Housing Element, BAE will advise the Council regarding the effects of any proposed modifications on the potential to obtain HCD certification. Task 72: Prepare Final Housing Elemenf BAE staff will make any minor editorial changes that the Council requests, prior to submitting the document far fmal HCD review. Substantive changes that would require additional research or analysis are not included in the budget for this task. BAE will also prepare a summary of any changes made to the document since HCD's preliminary review. Task 73: Minor Revisions fo Final Housing Elemenf as Necessary Based on direction from staff and comments from HCD, BAE will make any minor editorial changes. The budget for this task does not include any additional work in the event that HCD does not certify the Housing Element due to changes requested by the City subsequent to preliminary review. Task 14: Perform Environmental Review Using existing documents, DC&E will prepare a detailed Initial Study using either the DC&E fornzatted checklist or the City's version, if available. The Initial Study will include a project description, and infornation to support all the conclusions stemming from the threshold questions. All references will be noted and appropriate technical information will be appended as necessary. The Initial Study will determine if any environmental impacts are anticipated due to implementation of the project, and include mitigation measures as required. It is anticipated that a Mitigated Negative Declaration will be prepared for the project. If it is determined by the City that an Environmental Impact Report will be required, a contract amendment would be required to complete the work. Initial Study DC&E will prepare an Initial Study to assess the environmental impacts that could result from the 8 updated Housing Element. The issues that will be evaluated through completion of the Initial Study are listed below. ^ Aesthetics ^ Cultural Resources ^ Traffic and Transportation ^ Air Quality ^ Noise ^ Biological Resources ^ Hazardous Materials ^ Hydrology and Water Quality ^ Geology, Soils and Seismicity ^ Land Use ^ Population and Housing ^ Public Services ^ Recreation ^ Utilities and Infrastructure As part of the Air Quality section, DC&E will address project impacts related to global climate change caused by greenhouse gas emissions. DC&E assumes that the City will provide all technical documentation required for the climate change discussion. Mitigated Negative Declaration (MND) Assuming that the Initial Study finds that there are no unavoidable significant environmental impacts as a result of the project, or if potentially significant impacts can be avoided or mitigated to aless-than-significant level, an MND will be prepared for the project. If the Initial Study concludes that the proposed project could have potentially significant unavoidable impacts, an EIR will be required. Mitigation Monitoring Program (MMP) DC&E will prepare a mitigation monitoring program to accompany the IS/MND. This program, shown in tabular form, will identify responsibility for implementing and monitoring each Mtigation measure contained in the Initial Study, along with monitoring triggers and reporting frequency. City Review and Revision The IS/NIl~TD and MMP will be submitted to the City of Cupertino for review, as follows: I S/MND Admi~zistrative Draft IS/MND. DC&E will submit one paper and one electronic copy of this first draft to the City for review. Staff will provide DC&E with a single consolidated set of comments on the report. This assumes that DC&E will respond to one round of comments on the Administrative Draft received from the City. Screencheck Draft IS/MND. DC&E will submit a revised, second draft to staff as an electronic "screencheck" prior to printing the public review draft. DC&E assumes that a minimal level of 9 effort, not exceeding four hours, would be required to respond to any comment from the City on the screencheck Draft IS/MI~TD. Draft IS/MND. DC&E will provide the City with one electronic copy and 30 paper copies. This assumes that the City will circulate copies of the document to the State Clearinghouse, as required by CEQA, and to interested members of the public. Memorandum of Responses to Comments: DC&E will submit this memo to the City for review. DC&E assumes that it will respond to one round of comments from the City on the proposed responses to comments. Mitigation Monitoring Program (MMP) Administrative Draft MMP. DC&E will submit this first draft to the City for review in paper and electronic formats. The City will provide DC&E with a consolidated set of comments on the I\~IlV1P. This assumes one-round of review and comments by the City. screencheck Draft IS/MND. We will submit a revised, second draft of the A~IlVIP to City staff as an electronic "screencheck" prior to printing. This assumes one-round of review and comments by the City. Final MMP. DC&E will submit a fmal M1VLP to the City in electronic and paper formats. Public Review/Responses to Comments Once the IS/NIND is published with the State Clearinghouse, CEQA requires a 30-day public review period during which the document will be available for review and comment. DC&E will respond to substantive comments received on the IS/NIND in a memorandum form. DC&E's labor for this task is limited to 24 hours, which includes the time required to revise responses based on input from the City. Additional labor beyond 24 hours would require a budget amendment. 10 Timeline and Budget Timeline Assuming contract authorization to proceed by June 2, 2008, the following provides a general timeline for the above scope of work. BAE will work closely with City staff upon selection to develop a more detailed schedule in concert with Council and Commission meetings. Task Completed By: 1: Start Up and Background Materials Review June 4, 2008 2. Community Participation Initial Council Study Session June 17, 2008 Key Stakeholder Group Series September 30, 2008 Communitywide Workshop October 31, 2008 3: Housing Needs Assessment August 1, 2008 4: Constraints Analysis August 1, 2008 5: Regional Housing Needs Allocation Accommodation September 1, 2008 6: Housing Policies, Objectives, and Programs October 1, 2008 7: Administrative Draft /Public Draft of Housing Element October 1, 2008 8: Public Hearings November 31, 2008 9: HCD-Review Draft Housing Element December 31, 2008 10: Respond to HCD Comments /Prepare Final Draft January 31, 2009 11: Public Hearing Winter 2009 12: Final Housing Element March 31, 2009 13: Minor Revisions to Final Housing Element Apri12009 14: Environmental Review Process November 30, 2008 11 Budget BAE will complete the City of Cupertino Housing );letnent Update on a fixed-fee basis in accordance with the budget below. BA1/ can meet with the City to adjust this budget as necessary. Revised Budget -Cupertino Housing Element Update Process Hr1y Rale Task 1: Start Up and Background Materials Review 2: Community Participation Initial Council Study Session Housing Advisory Commission Meeting Key Informant Interviews Key Stakeholder Group Series Communitywide Workshop 3: Housing Needs Assessment 4: Constraints Analysis 5: Regional Housing Needs Allocation Accommodation 6: Housing Policies, Objectives, and Programs 7: Administrative Draft /Public Draft of Housing Element 8: Public Hearings 9: HCD-Review Draft Housing Element 10: Respond to HCD Comments / Prepan; Final Draft 11: Public Hearing 12: Final Housing Element 13: Minor Revisions to Final Housing Element 14: Environmental Review Process Subtotal Labor Hours Subtotal Labor Fee Expenses (inc. data purchase, delivery, mileage) (exc. refreshments, room rental, translation costs) Total BAE DC&E Total Managing Principal Vice President Associate Analyst Total Principal Sr. Assoc. Associate Planner Total $275 $200 $115 $90 $215 $155 $125 $80 5 5 5 5 20 5 5 5 0 15 $5,875 5 5 0 0 10 0 4 0 0 4 $2,995 5 5 0 0 10 0 0 0 0 0 $2,375 0 12 0 0 0 0 0 0 0 0 $2,400 4 25 10 10 49 8 0 20 40 68 $15,570 4 15 1D 10 39 0 5 5 0 10 $7,550 0 25 20 10 55 0 0 0 D 0 $8,200 0 4 20 10 34 0 0 0 0 0 $4,000 0 10 10 0 20 0 20 20 20 60 $10,350 5 20 20 0 45 0 0 0 0 0 $7,675 0 30 40 0 70 0 0 0 0 0 $10,600 0 5 5 0 10 0 0 0 0 0 $1,575 0 5 10 0 15 0 0 0 0 0 $2,150 5 10 25 0 40 0 0 0 0 0 $6,250 0 5 0 0 5 0 0 0 0 0 $1,000 5 5 0 0 10 0 0 0 0 0 $2,375 0 5 0 0 5 0 0 0 0 0 $1,000 0 0 0 0 0 5 35 40 45 125 $15,100 38 19i 175 45 449 18 69 90 105 282 $10,450 $38,200 $20,125 $4,050 $72,825 $3,870 $10,695 $11,250 $8,400 $34,215 $107,040 $2,000 5109,040 12 Costs for any tasks requested by the City beyond the scope of work described above will be charged on a time and materials basis. BAE and DC&E hourly rates are shown in the budget table above, and apply for calendar year 2008. These rates are subject to minor increases for calendar year 2009. The budget reflects reasonable estimates regarding hours spent responding to comments from the City, the public, HCD, and other agencies on the Housing Element and/or the IS/NIl~D. If the nature and/or volume of comments received from the City, the public, and/or agencies is such that additional time is required beyond the hours specified, contract modifications will be requested on a case-by-case basis. 13 AGREEMENT FOR THE PERFORMANCE OF SERVICES BY AND BETWEEN CITY OF CUPERTINO, CALIFORNIA AND BAY AREA ECONOMICS EXHIBIT B SCHEDULE OF FEES In no event shall the amount billed to City by Contractor for Services performed under this Agreement exceed one hundred and nine thousand and forty dollars and no cents ($109 040 dollars, subject to budget appropriations. The fees to be charged by the Contractor under this Agreement are more fully described in the Budget section of the Contractor's proposal entitled Proposal to Prepare Housing Element Update, Revised Scope of Work, Budget and Timeline, consisting of 13 pages, dated April 17, 2008, which is attached to Exhibit A and incorporated by this reference. Bay Area Economics Contract -Schedule of Fees 06/02/2008 Page 1 of 1 Exhibit B AGREEMENT FOR THE PERFORMANCE OF SERVICES BY AND BETWEEN CITY OF CUPERTINO, CALIFORNIA AND BAY AREA ECONOMICS EXHIBIT C INSURANCE REQUIREMENTS Consultant shall provide and maintain at all times during the performance of the Agreement the following insurances: 1. Workers' Compensation and Employer's Liability Insurance. Consultant agrees to carry Workers' Compensation and Employer's Liability Insurance for protection of Consultant's employees as required by law and as will protect Consultant from loss or damage because of personal injuries, including death, to any of his employees. 2. Comprehensive Automobile Liability Insurance. Consultant agrees to carry a Comprehensive Automobile Liability Policy providing bodily injury liability. This policy shall protect Consultant against all liability arising out of the use of owned or leased automobiles both passenger and commercial. Automobiles, trucks, and other vehicles and equipment (owned, not owned, or hired, licensed or unlicensed for road use) shall be covered under this policy. Limits of liability for Comprehensive Automobile Liability Insurance shall not be less than $1,000,000 Combined Single Limit. Comprehensive General Liability. Insurance as will protect Consultant and City from any and all claims for damages or personal injuries, including death, which may be suffered by persons, or for damages to or destruction to the property of others, which may arise from the Consultant's operations under this Agreement, which insurance shall name the City as additional insured. Said insurance shall provide a minimum of $1,000,000 Combined Single Limit coverage for personal injury, bodily injury, and property damage for each occurrence acid aggregate. Such insurance will insure Consultant and City from any and all claims arising from the following: a. Personal injury; b. Bodily injury; c. Property damage; d. Broad form property damage; e. Independent contractors; £ Blanket contractual liability. Consultant shall maintain a policy of professional liability insurance, protecting it against claims arising out of negligent acts, errors, or omissions of Consultant pursuant to this Agreement, in an amount of not less than $1,000,000. The said policy shall cover the indemnity provisions under this Agreement. Consultant agrees to maintain such insurance at Consultant's expense in full force and effect in a company or companies satisfactory to the City. All coverage shall remain in effect until completion of the Project. 6. Consultant will furnish the City with certificates of insurance issued by Consultant's insurance tamer and countersigned by an authorized agent or representative of the insurance company. The Insurance Requirements Page 1 of 1 06/02/2008 Exhibit C certificates shall show that the insurance will not be cancelled, altered, or reduced without at least thirty (30) days prior written notice to the City. The certificates for liability insurance will show that liability assumed under this Agreement is included. LIABILITY AND INDEMNIFICATION 1. Having considered the risks and potential liabilities that may exist during the performance of the Services; and in consideration of the promises included herein, City and Consultant agree to allocate such liabilities in accordance with this Article 12. Words and phrases used in this Article shall be interpreted in accordance with customary insurance industry usage and practice. 2. Consultant shall indemnify and save harmless and defend the City and all of their agents, officers, and employees from and against all claims, demand, or cause of action of every name and nature arising out of negligent error, omission, or act of Consultant, its agents, servants, or employees in the performance of its services under this Agreement. 3. In the event an action for damages is filed in which negligence is alleged on the part of City and Consultant, Consultant agrees to defend City. In the event City accepts Consultant's defense, City agrees to indemnify and reimburse Consultant on a pro rata basis for all expenses of defense and any judgment or amount paid by Consultant in resolution of such claim Such pro rata share shall be based upon a final judicial determination of negligence or, in the absence of such determination, by mutual agreement. 4. Consultant shall indemnify City against legal liability for damages arising out of claims by Consultant's employees. City shall indemnify Consultant against legal liability for damages arising out of claims by City's employees. 5. Indemnity provisions will be incorporated into all Project contractual arrangements entered into by City and will protect City and Consultant to the same extent. 6. Upon completion of all services, obligations and duties provided for in the Agreement, or in the event of termination of this Agreement for any reason, the terms and conditions of this Article shall survive. 7. To the maximum extent permitted by law, Consultant's liability for City's damage will not exceed the aggregate compensation received by Consultant under this Agreement or the maximum amount of professional liability insurance required by this Agreement, which ever is greater. Insurance Requirements 06/02/2008 Page 2 of 1 Exhibit C