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31 Many of the housing type and dimension standardupdates completedin theSection 1 phase 32 relate to racial equityand inclusion in zoning. 33 Because the Section 1 updates commenced a month later than anticipated, required more public 34 engagement than was originally planned, and because both the Planning Commission and City 35 Council required additional unscheduled meetings to get through the Section 1 topics, the 36 original timeline from HKGi’s proposal was extended. The Section 1 updates were originally 37 scheduled to conclude by the end of May. This additional five months also extinguished budget 38 that otherwise would have been available for the Section 2 updates. 39 During the September 1, 2021 Planning Commission discussion, the Planning Commission built 40 consensus surrounding the following priorities for the Section 2 updates (in order of importance): 41 1. Update Chapter 1017: Shoreland, Wetland and Storm Water Management (update to meet the 42 DNR’s current model shoreland ordinance and include the Chapter 1017 items outlined in the 43 original Scope of Work). 44 2. Sustainability: Because the Building Code does not allow the City to require buildings to 45 exceed theminimum requirements under the Building Code, the idea is to create a variety of 46 sustainable options could be implemented to unlock certain zoning incentives, such as a density 47 bonus, reduced setbacks, etc. 48 3. Racial equity & inclusion: The Commission recognized that many of the housing type and 49 dimension standard updates included in the Section 1 process had a racial equity and inclusion 50 component and if the Council adopted all of the Commission’s recommendations, this topic 51 may have less priority,or may even fall out of the Section 2 phase. As the Council is aware, 52 all of the Planning Commission’s recommendations were adopted. Also, there are several 53 planning working groups that are studying this issue and it may serve the City better to wait 54 until these groups conclude their work. 55 The City Council should evaluate the three priority topics outlined above and determine if there is 56 consensus with the Planning Commission, before commencing on the Section 2 updates. 57 Lastly, there have been many items, both in the Scope of Work and new items identified as the Section 58 1 updates unfolded, that still need to be done. Staff isn’t suggesting these updates be abandoned. 59 Instead, we’d like to best utilize HKGi’s expertise on the Section 2 updates, then once the Section 2 60 process is complete, staff can pursue the other more technical/housekeeping amendments that remain. 61 P OLICY O BJECTIVE 62 Ensure compliance and consistency between the City’s 2040 Comprehensive Plan and the City’s 63 Zoning Code. 64 B UDGET I MPLICATIONS 65 The original Scope of Work with HKGi was for $79,000 and $1,000 of reimbursable expenses for a 66 total of $80,000. Given the additional resources that were put towards the Section 1 updates, 67 approximately $9,000 remains in the original budget. Given the list of priority items the Planning 68 Commission identified, staff asked HKGi to prepare an estimate to see what the remaining budget 69 would cover and/or how much additional budget would be needed to complete the tasks. This memo 70 is provided as Attachment B. Based on this estimate, the remaining budget could likely fulfill item 1 71 (updating Chapter 1017). If the Council agreed that item 2 should be pursued at this time, an additional 72 $15,000 would need to be added to the budget. HKGi did not estimate additional cost for item 3 (racial 73 equity & inclusion) given the Council adopted all the Commission’s housing type of dimension 74 amendments as a part of the Section 1 updates. Page 2 of 3