ECONOMIC & PLANNING SYSTEMS, INC.

Page 4 of 6 local inclusionary ordinances for rental projects must allow some form of “alternative compliance” with respect to requirements to build on-site). For both Impact Fees, and Housing Linkage and In-Lieu Fees, EPS will also provide a review of peer jurisdictions as a means to benchmark fee recommendations and help guide the City Council’s decisions on the level at which to set fees (if lower than the maximum justified by the fee studies). Consideration of New Fees The EPS scope includes the opportunity to review and consider the adoption of fees in new categories not currently assessed by the City. One such fee is the Parks In-Lieu Fee, which was historically charged by the City, but removed in 2018 because it was not supported by the requisite ratio of parks acreage/per capita – with a changing population profile due to increased housing development, it may be possible to reinstate the fee. The study will also provide the opportunity to consider the adoption of entirely new fees, such as a “percent for public art” fee, childcare/human services fee, and others. While some of this work can be absorbed by the proposed contingency, substantial additional analysis for multiple new fees may require an amendment to the project budget. Public Outreach, Meetings and Hearings In addition to internal meetings with City staff (expected to include a cross-departmental team from the City Manager’s Office, Finance, Public Works, and Community Development), the scope anticipates several public and stakeholder meetings throughout the course of the project. This will include up to six City Council meetings, including study sessions at key junctures in the process to provide updates and receive policy direction on topics such as the consideration of new fee categories, amendments to the IZO, and preliminary fee estimates, as well as hearings to adopt the necessary fees and ordinance updates. Up to three study sessions on the IZO and LIHF will also be held with the Planning Commission and/or Housing Commission. Finally, EPS’s scope includes up to two stakeholder meetings, likely to be focused on the development community and other parties most affected by changes to the fee schedule. Schedule and Budget As outlined in Exhibit A to Attachment 1, EPS’s scope anticipates completion of the entire project within approximately six months. If the professional services agreement is approved, staff expects to be able to initiate the project in late December 2023/early January 2024. The total maximum contract amount is $203,928, which includes a 20 percent contingency. Of note: The cost of the 2018 Study (initiated in 2015) was approximately $135,000; this study did not include an update of the Inclusionary Zoning Ordinance. As described in the Fiscal Impact section below, funding for the costs of the agreement is proposed to be split between the Lower-Income Housing Fund, and the General Fund. The study will also explore all opportunities to recoup administrative fees including costs of preparing the update, which if permissible and adopted by the City Council, could be used to reimburse some or all of the General Fund expenditure. Page 121 of 371 DocuSign Envelope ID: CB7E68CB-B5FA-40EC-AA35-142CA6B57242