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12. Public Comment - None PUBLIC HEARINGS AND OTHER MATTERS 13. 1) Receive update on status of the 2023-2031 (6th RHNA Cycle) Housing Element process; 2) approve an agreement with Lisa Wise Consulting in the amount of $302,001 for the preparation of City of Pleasanton's 2023-2031 Housing Element; and 3) approve an agreement with First Carbon Solutions in the amount of $343,170 for the 2023-2031 Housing Element Environmental Impact Report Community Development Director Ellen Clark advised her presentation will be in two parts with the first part being an update on the 6th cycle of the Regional Housing Needs Allocation (RHNA) Housing Element and the second part being the consideration of contracts with Lisa Wise Consulting (LWC) for $302,001 and First Carbon Solutions (FCS) for $343,170 which are both related to the Housing Element. Director Clark reported the City is three and a half years into a process set to conclude with the City's adoption of the Housing Element process in early 2023. She noted much of the time has been spent developing the housing methodology used to distribute the State's regional allocation among the Bay Area's cities and counties. She advised the initial regional allocation was received in June 2020 with an increase to 441,000 units which was up from 180,000 units in the prior cycle. She reported the draft of the RHNA methodology has been submitted to the California Department of Housing and Community Development (HCD) for review. Director Clark reported the City has been very engaged in the process to date through monitoring and noted the City was represented on the Housing Methodology Committee (HMC). She advised there have been three updates to the Council with four rounds of public comment letters since September 2020. She further explained updates have come both as an individual city and in partnership with the Tri-Valley Cities and Alameda County Mayors Conference. Director Clark reported the initial September 2020 RHNA estimate for was 4,900 units. She advised there were public hearings held for the remainder of the year in addition to the Association of Bay Area Governments (ABAG) developing Plan Bay Area 2050 both of which have had significant impacts on the RHNA numbers and ultimately increasing Pleasanton's allocation to 5,965 units. Director Clark compared the estimates for the 6th cycle (2023-35) to the 4th (2007-15) and 5th (2015- 23) cycles showing dramatic increases at all income category levels. She also updated the 5th cycle production to date showing the City has added more than double its allocation for above-moderate units but just 23% of its allocation for moderate, low, and very-low units. She advised it will be a significant challenge to produce enough units at the lower levels in the next cycle. Director Clark reported HCD is expected to complete its 60-day review of the Draft HMC in April followed by a Draft RHNA being issued by ABAG to cities and counties in April or May. She explained there is an RHNA appeals period over the summer and fall with the final RHNA numbers being issued in late 2021. Director Clark detailed the appeal process; based on past cycles and recent appeals from the Southern California region, the odds of having an appeal requesting a significant difference be upheld are very low. She noted pending legal challenges are being monitored by staff which argues numbers are alternatively too high and too low depending on the specific suit. She recommends using the figure of 5,965 units as the "initial working estimate" and adjusting accordingly if needed in the future. In response to Councilmember Balch's inquiries, Director Clark confirmed past appeals have not seen significant shifts in the numbers. She believes a successful appeal would only shift the numbers by a City Council Minutes Page 4 of 15 March 16. 2021