Concord City Council
May 16, 2023

1 COUNCILMEMBERS
Laura M. Hoffmeister, Mayor
Edi E. Birsan, Vice Mayor
Dominic D. Aliano
Laura M. Nakamura
Carlyn S. Obringer
Civic Center
1950 Parkside Drive
Concord, CA 94519
www.cityofconcord.org
Special Meeting of the
Concord City Council
Tuesday,
May 16, 2023
6:00 p.m. - Open Session Council Chamber
1950 Parkside Drive,
various
telephonic/electronic
locations as indicated
below, and
The Wayfarer San Luis
Obispo, Tapestry
Collection by Hilton
1800 Monterey Street
Room 336
San Luis Obispo, CA
93401
*IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING PARTICIPATION* UPDATED MAY 11, 2023
Members of the public are invited to attend and participate at: Council Chamber, 1950 Parkside Drive, Concord, CA, various telephonic/electronic locations as indicated below, and The Wayfayer San Luis Obispo, Tapestry Collection by Hilton, 1800 Monterey Street, Room 336, San Luis Obispo, CA 93401.

Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.

Under California law, public comments at special meetings are limited to subjects on the agenda only.

Please note
6:00 p.m.

Meeting Start
2 HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:

1. IN PERSON:
a.Members of the public can provide in-person comments in the Council Chamber or The Wayfayer San Luis Obispo, Tapestry Collection by Hilton, 1800 Monterey Street, Room 336, San Luis Obispo CA 93401. Members of the public are encouraged, but not required, to fill out a speaker card. The in-person locations will have seating available for members of the public to attend in person up to full seating capacity.

2. REMOTE:
a. Zoom:
https://cityofconcord.zoom.us/j/86389632923?pwd=NEtjYUwxRE1VcmUyRllZbzNvSGJJ UT09 or Zoom Webinar ID: 863 8963 2923 and Passcode: 966035 b.Zoom Phone Numbers. Dial Toll Free: (669) 900-6833 or (346) 348-7799 or (253) 215- 8782.
c.During the meeting, each period for public comment will be announced, and participants may use the “Raise Hand” feature on Zoom to request to speak. If calling in via Zoom use *9 to raise and lower your hand. The meeting host will call on you, by name, and promote you to panelist in the webinar so you can be seen via your camera. Please enable your microphone when it is your turn to speak. In order to ensure the orderly administration of the meeting using this method, providing your name is encouraged, but is not required. (If you need instructions on how to use this feature, please contact the City Clerk by 3:00 p.m. of the meeting date at [email protected]).

3. EMAIL:
a.Public comments can also be submitted via email to [email protected]. Please note that emailed comments will not be read aloud by staff. Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council before the meeting,

2. posted online for public inspection at
https://stream.ci.concord.ca.us/OnBaseAgendaOnline/Meetings/Search, and

3. inserted into the meeting record.
b.As emails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email.

4. TO WATCH OR LISTEN ONLY:
a.Watch on TV on Comcast Channel 28, Astound/Wave Channel 1026, and AT&T U-verse Channel 99
b.Watch the TV broadcast through the City’s website by following THIS LINK c.Watching Live Streaming of the meeting by following THIS LINK d.Join the Zoom webinar by following THIS LINK
3 OPEN SESSION

1. OPENING
Roll Call – Announcements/Consideration and Approval of Requests by Councilmembers to Participate Remotely Pursuant to AB 2449 Pledge of Allegiance – Vice Mayor Birsan

2. PRESENTATION
a. Presentation – by Contra Costa County Fire Protection District Deputy Chief Aaron McAlister providing an update on District activities. Introduction by Mayor Hoffmeister.

3. CITY COUNCIL CONSENT CALENDAR
The public is entitled to address the City Council on items appearing on the Consent Calendar before or during the City Council’s consideration of the Consent Calendar. Adoption of the Consent Calendar may be made by one motion of the City Council, provided that any Councilmember, individual or organization may request removal of an item from the Consent Calendar for separate consideration.

If a request for removal of an item from the Consent Calendar has been received, the Mayor may defer action on the particular item and place the same on the regular agenda for consideration in any order s/he deems appropriate. Please see “How to Participate” above. a. Considering – adoption of a Resolution authorizing the City Manager to submit, on behalf of the City of Concord, the One Year Action Plan to the U.S.

Department of Housing and Urban Development consistent with the program rules which govern the receipt and expenditure of Community Development Block Grant Funds allocated by the U.S. Department of Housing and Urban Development during Fiscal Year 2023/24. Recommended by the Director of Community Development.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15060(c), 15061(b), 15378, and/or Public Resources Code Section 21065. b. Considering – approval to submit a request for group insurance and enter into an agreement with Prudential Insurance for a total not-to-exceed amount of $645,935.50 for professional services as the third-party administrator of the City of Concord's group life and disability insurance plans for the period June 1, 2023 – December 31, 2026, and authorizing the City Manager to execute the application and agreement in a form acceptable to the City Attorney.

Recommended by the Director of Human Resources.
4 4. CITY COUNCIL CONSIDERATION ITEMS
The public is entitled to address the City Council on items appearing on the agenda before or during the City Council’s consideration of that item. Each speaker will be limited to approximately three minutes. Please see “How to Participate” above.
a. Considering – adoption of a Resolution authorizing a loan of $6.64 Million in Low and Moderate Income Housing Asset Funds to Eden Housing to preserve the long-term affordability, and for the acquisition and rehabilitation of a 116-unit affordable housing project comprised of Coral Court Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord, in exchange for an agreement restricting a minimum of 10 of the units at 30% of the Area Median Income and 10 additional units at 60% of the Area Median Income. Report by Sophia Huckabay, Housing Manager.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15060(c), 15061(b)(2) and (3), 15273, 15378, and Resources Code Section 21065. b. Study Session – on the Proposed Biennial Budget for Fiscal Years 2023-24 and 2024-25 and the Updated Long-Range Financial Forecast. Report by Donna Lee, Budget and Treasury Officer.

5. CITY COUNCIL PUBLIC HEARING
Persons who wish to speak on Public Hearings listed on the agenda will be heard when the public hearing is opened, except on public hearing items previously heard and closed to public comment.

After the public has commented, the item is closed to further public comment and brought to the Council level for discussion and action. Further comment from the audience will not be received unless requested by the Council. No public hearing shall commence after 10 p.m. unless approved by majority vote of the City Council. Please see “How to Participate” above. a. Considering – the following:

1. Adoption of a Resolution to update the City’s Master Fees and Charges Schedule by amending Exhibit A to Resolution No. 78-6042 establishing fees and charges for various municipal services in the City of Concord; and

2. Adoption of a Resolution amending Sewer Capacity (Connection) Fees.

Report by Kylie Hicks, Budget Analyst.

CEQA: Exempt/not a project per Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c)(2) or (3) 15273, 15378, and/or 15061(b)(3).

6. ADJOURNMENT
Next Meeting: Regular Meeting
Date: 5/23/2023 6:30 PM
5 NOTICE TO THE PUBLIC
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited by California law to raising only those issues you or someone else raised in the hearing or in a written correspondence delivered to the City Council prior to or at the hearing.

In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or [email protected], at least 24 hours in advance of the meeting. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility.

Fire, Rescue, EMS
Update
City of Concord City
Council
May 16, 2023
Deputy Chief Aaron
McAlister

2.a

Your Fire “Department” at a Glance
- Countywide fire, rescue,
EMS & ambulance
service
- One of the largest
special fire districts in
California
- Dedicated to
preservation of resident
life and property

About Our District - Crews and Facilities
● 500+ Employees
● 33 Fire Stations and
36 Crews
● Fleet of 250
Specialized Vehicles
● Specialty Programs
● Expanded Service
Area
Specialty Programs Serve
Our Residents
- Ambulance Transport
Alliance
- Aviation
- Crew 12
- Fire Dozer
- Fire Investigation
- Haz Mat
- Health and Wellness
- K 9 – Search & Arson
- Marine
- Rescue
- UAV
- FEMA Urban Search &
Rescue

What’s New
● East Con Fire Annexation Complete
● Serving Pinole and West County from Fire Stations 73
& 74
● Crew 12 Countywide, Year-Round Resource
● Residents Wildfire Mitigation Projects Program
● Fire Stations 4, 86, and 95 Opened Last Year
● Construction Plans for Three New Stations Underway
● SAFER Grant Adding B8/B9 Crews in 2023
● K9 Program – Accelerant Sniffing Baxter Joins Team

Detailed Look at the City of Concord – 2023 YTD

Concord Incidents by Type – March 2023

Wildfire Threat
● Longer, less predictable fire weather
trend continues
● Reflected in Fire Threat Zone changes
● Indicators point to dangerous fire season
● No area of county is risk free, Contra
Costa County far from immune to danger
● Many resources available to residents:
○ Wildfire Mitigation Program Projects
○ Residents Guides to Prep and Evacuation

Changing Wildfire Threat Zones – San Pablo
● Minimal wildfire threat in
city limits
● Considerable threat to the
east
● Vegetation fire threat still
significant in city
● View “live” threat maps at
confire.cc/cccwildfirethreat

New, Valuable Evacuation Tool
● Know Your Zone tool provides real time
evacuation information for residents
● Supplements information provided by county
alerting system – CWS Alerts
● Used by fire and law for all evacuation
scenarios – wildfire, flood, natural disaster, etc.
● Easy-to-use, app-based system available on
phones, tablets, computers
● Residents can learn more at
cwsalerts.com/know-your-zone/, including
zones for home, schools, work, etc.

Fire Safety for Residents
● Residential fires pose continued risk
in our communities
● Modern home fires burn faster,
hotter, and with more toxic smoke
● Simple steps can save lives:
○ Working smoke alarms on all
floors, in every bedroom
○ Carbon monoxide alarms
○ Sleep with bedroom doors
CLOSED
○ Have a family evacuation plan;
practice it
● Much more at www.cccfpd.org

Questions?
References

Staff Report
Date: May 16, 2023
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Kevin Marstall, PE, Director of Community Development Prepared by: Leng Power, Housing & Community Services Manager [email protected]
(925) 603-5838
Subject: Considering adoption of a resolution authorizing the City Manager to submit, on behalf of the City of Concord, the One Year Action Plan to the U.S. Department of Housing and Urban Development consistent with the program rules which govern the receipt and expenditure of Community Development Block Grant Funds allocated by the U.S. Department of Housing and Urban Development during Fiscal Year 2023/24.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15060(c), 15061(b), 15378, and/or Public Resources Code Section 21065.

Report in Brief
The City Council is requested to adopt a Resolution (Attachment 1) authorizing the City Manager to submit the City of Concord (City) FY 2023/24 Action Plan (Action Plan) to the U.S. Department of Housing and Urban Development (HUD) consistent with the program rules which govern the receipt and expenditure of Community Development Block Grant Funds (CBDG) allocated by HUD during Fiscal Year 2023/24.

The Action Plan (Exhibit A to Attachment 1) outlines the programs and projects that will help meet the housing and non-housing needs of the lower income households and areas in our community. The Action Plan includes recommendations by the Community Services Commission (CSC) for funding a variety of public services programs, housing, capital improvements, and other projects through Concord’s Community Grant process.

3.a3.a3.a3.a

City Council Agenda Report
Agenda Item No. 3.a
May 16, 2023
These recommendations reflect the second year of the current three-year grant cycle.

The Action Plan is a subsidiary document of the 2020/25 5-Year Consolidated Plan (Consolidated Plan) and is required annually by the federal government from those jurisdictions that receive CDBG funding.

Recommended Action
Adopt a Resolution authorizing the City Manager to submit, on behalf of the City of Concord, the One Year Action Plan to the U.S. Department of Housing and Urban Development consistent with the program rules which govern the receipt and expenditure of Community Development Block Grant Funds allocated by the U.S.

Department of Housing and Urban Development during Fiscal Year 2023/24.

Background
The Consolidated Plan, Action Plan, and annual Consolidated Annual Performance Evaluation Report (CAPER) are required documents of jurisdictions receiving housing and Community Development Block Grant (CDBG) funds from HUD. The Consolidated Plan outlines priority housing and community development needs, as well as the objectives and strategies for meeting those needs. The Action Plan outlines the programs that will be funded to meet the needs identified as City Priorities in the Consolidated Plan. The CAPER, which is due 90 days after the close of the funding year, documents how well the City has done in meeting its goals for helping low- and moderate-income residents of Concord with the federal funding distributed under the CDBG program.

To be consistent with the Consolidated Plan and to provide funding security to grantees, the City’s grant process starts with a two-year funding cycle followed by a three-year cycle. In the first year, a specific grant amount is awarded. Second- and third-year funding is based on fund availability and grantee performance. Contracts are issued on an annual basis and adjusted proportionally among all grantees to account for fluctuations in funding. FY 2023/24 represents the second year of the next three-year cycle. No new applications will be accepted for 2023/24 or 2024/25, as there is no additional funding available.

Analysis
The Action Plan describes those programs the City will support in FY 2023/24, which must be consistent with the Consolidated Plan. The online application for funding was released during a countywide kickoff meeting on October 7, 2021, with applications due no later than December 6, 2021. Applications submitted to Concord must indicate the number of Concord residents served by the program.

For the application year (2022/23), the City received 17 applications in the Public Services category, two requesting funds for Economic Development/Microenterprise projects, and three requesting Child Care Development Fee allocations. Per HUD

City Council Agenda Report
Agenda Item No. 3.a
May 16, 2023
regulations, funding for Public Services is limited to 15% of the coming year’s grant, plus 15% of current year program income.

The CSC met nine times between the first of January and mid-March 2022, to hear presentations from applicants and to review and discuss applications, and made final funding recommendations. Those recommendations form the basis for the 2023/24 Action Plan. The CSC met on March 29th, 2023, to review funding amounts and subrecipient performance, to approve funding recommendations for the second year of the grant cycle.

This year’s funding recommendations are shown in Attachment 2. Only organizations funded last year are proposed for funding for FY 23/24.

HUD has confirmed the City’s 2023/24 CDBG allocation is $1,048,159, a decrease of $23,977 from the FY 2022/23 CDBG allocation. Also allocated for 2023/24 is $106,789 in CDBG funds that were unused in prior years. There is enough program income to make up for this loss of funding, such that all funding allocations in year 2 match the year 1 allocations.

The City also collects a Child Care Development Impact Fee of 0.5 percent of the total valuation of a building permit for tenant improvements and new construction on commercial projects to help fund childcare related activities. The fund balance varies considerably from year to year, depending on the level of construction activities. The current fund balance is $150,000, which can be dispersed as part of the City’s grant process. Staff is recommending that $121,300 be allocated to three programs that provide childcare services or training for home care providers and $28,700 (19%) to administration.

Repayment of housing rehabilitation loans made to Concord homeowners using CDBG funds accumulate in the City’s Revolving Loan Fund (RLF) and must be expended for grants or low-interest loans to other qualified low-income homeowners. The balance in this fund is currently $181,463.66. Staff recommends that in addition to CDBG funds, $81,000 in RLF be allocated to Habitat for Humanity for the Housing Rehabilitation Grant and Loan Program for the coming year. This amount is anticipated to support 12 to 15 grants or loans (depends on income level) to low-income homeowners of single family homes and mobile homes. The program provides home repair loans, emergency repairs, weatherization and accessibility grants for seniors.

For FY 22/23, the Housing Rehabilitation program provided grants to $25,000 and loans to $75,000 to qualified homeowners. This increase reflects the cost of materials and labor in recent years making it increasingly difficult to provide needed health and safety improvements within the previous grant amounts of up to $15,000. For instance, a basic roof replacement averages $18,000 and typically requires other repairs, as well. Those served by this program are primarily seniors on fixed incomes who have delayed regular

City Council Agenda Report
Agenda Item No. 3.a
May 16, 2023
maintenance due to the high cost of repairs. In order to better serve these residents, staff recommends that the maximum grant amount remain at the increased amount of $25,000.

The City receives a small amount of Program Income (PI), of which 15% can be used for funding Public Services programs in the following year. For FY 2022/23, the City received $94,000, making an additional $14,100 available. Staff recommends that $14,100 of this amount be allocated to local nonprofits.

Financial Impact
The City of Concord would allocate a total of $1,400,048 in grant funding from Community Development Block Grant (CDBG), Child Care Development Impact Fees (CCDF), Program Income, and Revolving Loan Funds (RLF) in FY 2023/24. Attachment 3, FY 2023/24 Action Plan Funding Recommendations, provides a breakdown of all funding recommendations. No General Fund monies would be allocated.

Environmental Determination
Pursuant to the California Environmental Quality Act of 1970, Public Resources Code §21000, et seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively "CEQA"), the allocation of CDBG, Child Care Development Impact Fees, Program Income, and Revolving Loan Funds funds supporting public service programs, housing, capital improvement projects does not constitute a "project," within the meaning of Public Resources Code Section 21065 and CEQA Guidelines Sections 15060(c), 1506l(b), and 15378 because there is no potential that the activity will result in a direct or reasonably foreseeable indirect physical change in the environment. Moreover, even if this were determined to be a "project" for CEQA analysis, this activity falls within the "common sense" CEQA exemption set forth in CEQA Guidelines Section 15061(b)(3), excluding projects where "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflects the City's independent judgment and analysis.

Public Contact
The City Council Agenda was posted, and copies of the funding recommendations have been sent to all applicants.

Attachments

1. Resolution to submit City of Concord FY 2023/24 Action Plan to HUD Exhibit A: City of Concord FY 2023/24 Action Plan

2. Community Services Commission FY 2023/24 Funding Recommendation

1Res. No. 23-XX

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
A Resolution Authorizing the City Manager to Submit,
on behalf of the City of Concord, the One Year Action
Plan to the U.S. Department of Housing and Urban
Development Consistent with the Program Rules which
Govern the Receipt and Expenditure of Community
Development Block Grant Funds Allocated by the U.S.

Department of Housing and Urban Development
During Fiscal Year 2023/24 Resolution No. 23-XX
/
WHEREAS, the City of Concord has been designated by the U.S. Department of Housing and Urban Development (HUD) as a community entitled to receive, by allocation, Community Development Block Grant (CDBG) funds to help develop viable urban communities through providing decent housing, a suitable living environment, and economic opportunity for lower income residents; and
WHEREAS, as a condition of funding, HUD requires recipient jurisdictions to prepare a one- year Action Plan as a subsidiary document to the Consolidated Plan, to indicate how funds will be expended to benefit eligible populations in each year of the five-year Consolidated Plan period; and WHEREAS, the City of Concord has received an allocation from HUD in the amount of $1,048,159 for Fiscal Year 2023/24; and
WHEREAS, the City of Concord, consistent with HUD's program rules on eligibility, has chosen to allocate all CDBG funds to a number of programs, activities and projects in support of HUD's National Objectives to primarily benefit low- and moderate-income persons, or serve to arrest or minimize the effects of slums or blight, or provide for urgent needs; and WHEREAS, the City of Concord has determined that the expenditure of these funds will have the cumulative effect of advancing the FY 2020/25 Consolidated Plan objectives in the short and long- term; and
WHEREAS, on May 16, 2023, after giving all public notices required by State law and the Concord Municipal Code, the City Council held a duly noticed public meeting to consider this action; and
Attachment 1

2Res. No. 23-XX
WHEREAS, at such public meeting, the City Council considered all testimony and information received at the public meeting, the oral report from City staff, and the written report from City staff dated May 16, 2023 ("City Council Information").

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 1. The recitals above are true and correct and are incorporated herein by reference.

The recitals constitute findings in this matter, and together with the City Council Information, serve as adequate and appropriate evidentiary basis for the findings and recommendations set forth in this Resolution. Pursuant to the California Environmental Quality Act of 1970, Public Resources Code §21000, et seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively "CEQA"), the allocation of CDBG, Child Care Development Impact Fees, Program Income, and Revolving Loan Funds funds supporting public service programs, housing, capital improvement projects does not constitute a "project," within the meaning of Public Resources Code Section 21065 and CEQA Guidelines Sections 15060(c), 1506l(b), and 15378 because there is no potential that the activity will result in a direct or reasonably foreseeable indirect physical change in the environment. Moreover, even if this were determined to be a "project" for CEQA analysis, this activity falls within the "common sense" CEQA exemption set forth in CEQA Guidelines Section 15061(b)(3), excluding projects where "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflects the City's independent judgment and analysis.

Section 2. That the City hereby determines that it is appropriate to submit its 2023/24 one- year Action Plan activities to the U.S. Department of Housing and Urban Development (HUD), detailing the City's plans for the expenditure of CDBG funds in accordance with the priorities outlined in the 2020/25 Contra Costa HOME Consortium Consolidated Plan and in suppo1i of HUD's national objectives.

Section 3. That the City Manager is authorized to disburse funds and execute all attendant

documents and agreements, consistent with the City Council's designation and approval of the programs, activities, and projects to be undertaken during FY 2023/24 as designated in attached Exhibit A, and subject to City Attorney approval.

Section 4. This resolution shall become effective immediately upon its passage and adoption.

PASSED AND ADOPTED by the City Council of the City of Concord on May 16, 2023, by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly and regularly adopted at a regular meeting of the City Council of the City of Concord on May 16, 2023.

Joelle Fockler, MMC
City Clerk
APPROVED AS TO FORM:

Susanne Meyer Brown
City Attorney
Attachment: Exhibit A – City of Concord Draft FY 2023/24 Action Plan

Annual Action Plan
2023
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Exhibit A to Attachment 1
Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)

1. Introduction
For FY 2023/24, the City expects to receive $1,048,159 in CDBG funding and will allocate $106,789 in unallocated prior-year funds. CDBG funds are used by the City for affordable housing, homeless services, non-housing community development activities and administrative costs. In addition to CDBG funds, in this funding year the City will allocate $81,000 in Revolving Loan Funds for home rehabilitation loans and grants, $150,000 in Child Care Developer Fees for childcare related programs and $14,100 in Program Income to Public Services programs.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis, or the strategic plan.

Following is a summary of the overall objectives identified in the 2020/25 Consolidated Plan and supported by the 2022/23 Action Plan:

Priority Need: Affordable Housing
AH-1: Maintain and preserve the existing affordable housing stock.

Priority Need: Reduce/Alleviate Homelessness
H-1: Further “Housing First” approach to ending homelessness by supporting homeless outreach efforts, emergency shelter, transitional housing, and permanent housing with supportive services to help homeless persons achieve housing stability. Expand existing prevention services including emergency rental assistance, case management, housing search assistance, legal assistance, landlord mediation, money management and credit counseling.

The affordable housing and human services objectives of the Plan also address the needs of the homeless and the problem of homelessness.

Annual Action Plan
2023
2 OMB Control No: 2506-0117 (exp. 09/30/2021)
Priority Need: Non-Housing Community Development
Public Services
CD-1 General Public Services: Ensure that opportunities and services are provided to improve the quality of life and independence for lower-income persons, and ensure access to programs that promote prevention and early intervention related to a variety of social concerns such as substance abuse, hunger, and other issues.

CD-2 Non-Homeless Special Needs: Ensure that opportunities and services are provided to improve the quality of life and independence for persons with special needs, such as elderly/frail elderly, victims of domestic violence, persons with HIV/AIDS, persons with mental, physical and developmental disabilities, abused children, illiterate adults and migrant farmworkers.

CD-3 Youth: Increase opportunities for children/youth to be healthy, succeed in school, and prepare for productive adulthood.

CD-4 Fair Housing: Continue to promote fair housing activities and affirmatively further fair housing.

Priority Need: Economic Development
CD-5 Economic Development: Reduce the number of persons with incomes below the poverty level, expand economic opportunities for very low- and low-income residents, and increase the viability of neighborhood commercial areas.

Priority Need: Infrastructure/Public Facilities
CD-6 Infrastructure and Accessibility: Maintain quality public facilities and adequate infrastructure, and ensure access for the mobility-impaired by addressing physical access barriers to public facilities.

Priority Need: Administration
CD-7 Administration: Support development of viable urban communities through extending and strengthening partnerships among all levels of government and the private sector, and administer federal grant programs in a fiscally prudent manner.

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

Annual Action Plan
2023
3 OMB Control No: 2506-0117 (exp. 09/30/2021)
The City has made significant progress in meeting the goals and objectives contained in the 2020/25 Consolidated Plan. CDBG-funded public service projects provided a wide range of social services and assistance to more than 72,000 residents and households, including the homeless, mentally and physically disabled, seniors, victims of domestic violence, and other special needs populations. Funding for the City’s ADA Transition Plan provided curb, sidewalk and infrastructure improvements that removed barriers that restrict mobility and accessibility of elderly or disabled persons. The City’s Housing Rehabilitation Loan and Grant Program has provided grants and low-interest loans to low- income homeowners for needed repairs and improvements.

The City has continued to focus on outcome-based performance measurements to ensure that needed services are delivered and that the results can be easily quantified. The City is currently completing its second year of the 2020/25 Consolidated Plan period and is on track to meet every Consolidated Plan goal/objective.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

A public review draft of the Action Plan was made available to the public from April 6, 2023, to May 6, 2023. A notice announcing the public review draft and the proposed City Council meeting for approval of the FY 2023/24 Action Plan was posted in the Contra Costa Times and on the City’s website on April 6th 2023.

5. Summary of public comments
(will add when public process closes)

6. Summary of comments or views not accepted and the reasons for not accepting them (will add when public process closes)

7. Summary
As required by the City's Citizen Participation Plan, the FY2023/24 Action Plan legal notice was published, and the document was available on the City's website and in hard copy at the City's administrative office for a 30-day public review beginning April 6, 2023. The 2023/24 Action Plan was approved by Council on May 16, 2023.

Annual Action Plan
2023
4 OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies - 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator CONCORD Community Development Department Table 1 – Responsible Agencies
Narrative
The City of Concord's entitlement grant is administered by the City under the direction of the Community Services Manager.

Consolidated Plan Public Contact Information
Leng Power, Community Services Manager
City of Concord
1950 Parkside Drive, Concord, California 94519
(925) 603-5838

Annual Action Plan
2023
5 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation - 91.100, 91.200(b), 91.215(l)

1. Introduction
The consolidated planning process requires jurisdictions to reach out to and consult with other public and private agencies when developing the Plan. The Plan itself must include a summary of the consultation process, including identification of the agencies that participated in the process.

Jurisdictions also are required to summarize their efforts to enhance coordination between public and private agencies.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).

The City of Concord works closely with public and private affordable housing providers and the Housing Authority of Contra Costa County, as well Contra Costa County’s Public Health, Behavioral Health and Homeless Services departments to coordinate the allocation of funds to best meet the needs of the City’s most at risk residents. CDBG funds are distributed to programs that provide services to persons with physical, developmental, substance abuse and mental health issues. This coordination leverages CDBG funds to maximize their impact.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

In developing the 2020/25 Consolidated Plan and related objectives and outcomes, City staff consulted with the Contra Costa Council on Homelessness (CCCH) Executive Board, which provides advice and input on the operations of homeless services, program operation and program development efforts in Contra Costa County. CCCH is the working group of the CoC and membership includes representation from non-profit, governmental, housing development, law enforcement, faith-based, business, and homeless services providers as well as non-profit community and advocacy groups, the interfaith community, business organizations and other relevant community groups to implement key strategies identified in the County’s Ten Year Plan to End Homelessness. In addition, the City’s Community Services Manager is active in CCCH and is closely involved in homeless services Countywide.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS

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The City does not receive ESG funds. ESG funds are received by Contra Costa County and are allocated in coordination with the CoC.

2. Agencies, groups, organizations and others who participated in the process and consultations

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Table 2 – Agencies, groups, organizations who participated Agency/Group/Organization CCC Department of Conservation & Development Agency/Group/Organization Type Agency - Managing Flood Prone Areas Agency - Management of Public Land or Water Resources
Agency - Emergency Management
Other government - County
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs
HOPWA Strategy
Economic Development
1 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The Department of Conservation and Development was the lead agency in the development of the Contra Costa Consortium's Consolidated Plan.

Agency/Group/Organization Contra Costa Health Services Homeless Program Agency/Group/Organization Type Services-homeless
Other government - County
2 What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy

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Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The County's Health and Homeless Services staff works closely with City staff to provide information on special needs populations, including homeless populations. It is anticipated that this consultation will result in improved coordination of services to the City's at risk and homeless populations.

Agency/Group/Organization STAND! For Families Free of Violence Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
3 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
STAND! staff works closely with City staff to provide information regarding victims of domestic violence in the City and the services provided to this population. It is anticipated that this coordination will result in improved coordination of services to the City's victims of domestic violence.

Agency/Group/Organization Contra Costa Homeless Continuum of Care Agency/Group/Organization Type Services-homeless
Other government - County
Other government - Local
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
4 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The CoC works closely with City staff to provide information on homelessness and the City's overall homeless population. It is anticipated that this coordination will result in improved coordination of services to the City's population who are homeless or at risk of homelessness.

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Agency/Group/Organization Habitat for Humanity East Bay/ Silicon Valley Agency/Group/Organization Type Services - Housing
What section of the Plan was addressed by
Consultation?
Lead-based Paint Strategy
5 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City contracts with Habitat for Humanity to administer the Housing Rehabilitation Loan and Grant program for low-income homeowners. Lead- based paint remediation is a required element of the program and has been successful in helping to reduce the incidence of lead-based paint in the City's older home population.

Agency/Group/Organization City of Concord Code Enforcement Division Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Conservation
6 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City's Multi-Family Housing inspector responds to complaints and regularly inspects all multi-family units in the City to identify code violations and to address health issues such as mold, rodents and insect infestations. The inspector works closely with the Housing Manager to see that the housing needs of the City's low income residents are met.

Agency/Group/Organization California State Coastal Conservancy Agency/Group/Organization Type Agency - Managing Flood Prone Areas What section of the Plan was addressed by
Consultation?
Market Analysis
7 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Consultation regarding flooding and resilience in areas along waterways.

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Identify any Agency Types not consulted and provide rationale for not consulting Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Contra Costa County Health, Housing & Homeless Services
The City's Community Services Manager is
active in the Contra Costa Council on
Homelessness, ensuring coordination with
the CoC and the consolidated planning
process.

Contra Costa Consortium Contra Costa County Dept, of Conservation & Development
The City's Community Services Manager is
active in the Contra Costa Council on
Homelessness, ensuring coordination with
the CoC and the consolidated planning
process.

Table 3 - Other local / regional / federal planning efforts Narrative
In addition to the organizations listed in this section significant aspects of the Plan development process included consultations with the CoC and its membership which is comprised of both public and private non-profit and for-profit entities, as well as private citizens. The Strategic Plan section of the 2020/25 Consolidated Plan, specifically SP-40, includes a complete listing of the entities through which the City will carry out the activities of its Consolidated Plan.

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AP-12 Participation - 91.401, 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting In developing the 2020/25 Consolidated Plan, which informs the Action Plan, the Contra Costa Consortium held three public meetings and requested that those attending comment on the level of housing and community development needs Countywide and the relative priority of those needs by completing a survey. All public meetings were advertised in the Contra Costa Times. Recognizing that not all can attend public meetings and that the scope of a one-hour meeting is limited, the Consortium also provided an online survey. The survey was mentioned in all meeting advertisements and provided at all public meetings. A draft of the Consolidated Plan was made available for a 30 day public review and comment period.

To be consistent with the Consolidated Plan, the City’s grant process starts with a two-year funding cycle followed by a three year funding cycle.

In the first year, a specific grant amount is awarded. Second and third year funding is based on fund availability and grantee performance.

Contracts are issued on an annual basis and adjusted proportionally among all grantees for fluctuations in funding. FY 2022/23 is the first year of the next three-year cycle.

During the 2022/23 funding process, the City’s CDBG advisory commission, the Community Services Commission (CSC), held nine (9) properly noticed public meetings to hear presentations from local applicants and to discuss and determine funding recommendations for the three year funding cycle, July 1, 2022 – June 30, 2023, July 1, 2023 – June 30, 2024, and July 1, 2024 - June 30, 2025. The CSC's funding recommendations were approved by City Council on June 28, 2022.

The FY 2022/3 Action Plan was available for a 30-day public review period beginning on May 25, 2022, by posting of a legal notice. It was also available on the City's webpage and in hard copy at the Administrative office.

During the 2023/24 funding process, the City’s CDBG advisory commission, the Community Services Commission (CSC), held one properly noticed public meetings to hear funding allocations and review funding recommendations for the three year funding cycle, July 1, 2022 – June 30, 2023, July 1, 2023 – June 30, 2024, and July 1, 2024 - June 30, 2025 and make funding recommendations for the second year of the grant cycle. The CSC's funding recommendations were approved by City Council on May 16, 2023.

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The FY 2023/24 Action Plan was available for a 30-day public review period beginning on April 6, 2023, by posting of a legal notice. It was also available on the City's webpage and in hard copy at the Administrative office.

Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Meeting
Non-
targeted/broad
community
A public meting of
the Community
Services Commission
was held on March
29, 2023, to
determine funding
recommendations for
referral to City
Council.
none none
Table 4 – Citizen Participation Outreach

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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
During the Consolidated Plan period, 2020/25, the City expects to receive approximately $1,000,000 annually in CDBG funding, for a five-year total of approximately $5 million. CDBG funds are used by the City for affordable housing, homeless services, non-housing community development activities and administrative costs. The table below provides a breakdown of these anticipated resources which are based on FY 2023/24 allocations.

Anticipated Resources
Expected Amount Available Year 1Program Source
of
Funds
Uses of Funds
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
1,048,159 14,100 106,789 1,169,048 1,000,000
Concord will allocate funds citywide to
meet the needs of at-risk residents.

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Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Other public -
local
Other
150,000 0 0 150,000 0
Child Care Developer Fees (CCDF): The
City collects a fee equal to 0.5 percent of
the development cost of a project at the
time of issuance of the certificates of
occupancy for the purpose of funding the
activities of the Concord Child Care
Program. The program provides grants
for direct and indirect child care services,
including the provision of child care
subsidies or benefits for working parents,
start-up costs for child care programs,
upgrades to the quality of child care
services provided, and public education
and advocacy to encourage employer-
related child care.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City requires a 20% match for all projects receiving CDBG or Child Care Developer Fee funds which typically includes other federal, state or local public and/or private funds. Matching funds help to ensure that agencies are not dependent upon Federal funds and that they would be able to continue operations in the absence of these funds.

CDBG funds are coupled with local and private funds, allowing projects to compete for additional funding provided by tax credits, bonds, and

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state financing programs. An investment by the City makes projects more competitive in various funding competitions. All sources and types of funds are more limited due to the current economic climate and the demise of statewide redevelopment tax-increment funds. The City will continue to search for additional sources of funding from local, state, federal, and private sources in order to develop and deliver efficient and cost effective projects.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City owns two properties that may be used for housing purposes. For one property, Council entered into an Initial Exclusive Negotiating Agreement that gives a developer permission to study feasibility for 18 months of a mixed-use project that would include a residential component. Concord City Council has allocated $7.8 million to a nonprofit developer for the new construction of 62 units of affordable housing which began construction in late summer, 2022. The City is particularly interested in housing for veterans, seniors, disabled and the low-income workforce. Services to these communities are among the priorities identified in Concord’s 2020/25 consolidated plan.

Discussion
The City of Concord will utilize funds from the FY 2023/24 entitlement grant, as well as prior-year CDBG funds, Revolving Loan Funds, Child Care Developer Fees and Program Income, to provide services to further the well-being of the City's most at-risk residents.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort Order Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 AH-1 Existing
Housing Stock
2020 2025 Affordable
Housing
City of
Concord
Affordable
Housing
CDBG: $435,417 Homeowner Housing
Rehabilitated: 15
Household Housing Unit
2 H-1 Emergency
Shelter and
Homeless Related
Svcs
2020 2025 Homeless Homelessness CDBG: $22,500 Public service activities other than Low/Moderate
Income Housing Benefit:
100 Persons Assisted
Homeless Person Overnight
Shelter: 10 Persons
Assisted
3 CD-1 General Public
Services
2020 2025 Non-Housing
Community
Development
City of
Concord
Non-Housing
Community
Development
CDBG: $50,000 Public service activities
other than Low/Moderate
Income Housing Benefit:
9100 Persons Assisted
4 CD-2 Non-Homeless
Special Needs
Population
2020 2025 Non-Homeless
Special Needs
Non-Housing
Community
Development
CDBG: $82,500 Public Facility or
Infrastructure Activities for
Low/Moderate Income
Housing Benefit: 950
Households Assisted

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Sort Order Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
5 CD-3 Youth 2020 2025 City of
Concord
Non-Housing
Community
Development
CDBG: $10,000
Child Care
Developer Fees:
$100,000
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
1365 Persons Assisted
6 CD-4 Fair Housing 2020 2025 Non-Housing
Community
Development
City of
Concord
Non-Housing
Community
Development
CDBG: $10,000 Public service activities
other than Low/Moderate
Income Housing Benefit: 25
Persons Assisted
7 CD-5 Economic
Development
2020 2025 Non-Housing
Community
Development
City of
Concord
Non-Housing
Community
Development
CDBG: $40,000
Child Care
Developer Fees:
$21,300
Businesses assisted: 35
Businesses Assisted
8 CD-6
Infrastructure/Public
Facilities
2020 2025 Non-Housing
Community
Development
City of
Concord
Non-Housing
Community
Development
CDBG: $300,000 Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
8000 Persons Assisted
9 CD-7 Administration 2020 2025 Administration City of
Concord
Administration CDBG: $209,631 Other: 1 Other
Table 6 – Goals Summary
Goal Descriptions

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Goal Name AH-1 Existing Housing Stock1
Goal
Description
Maintain and preserve existing housing for low-income homeowners through rehabilitation activities.

Goal Name H-1 Emergency Shelter and Homeless Related Svcs2 Goal
Description
Further “Housing First” approach to ending homelessness by supporting homeless outreach efforts, emergency shelter, transitional housing, and permanent housing with supportive services to help homeless persons achieve housing stability.

Expand existing prevention services including emergency rental assistance, case management, housing search assistance, legal assistance, landlord mediation, money management and credit counseling.

Goal Name CD-1 General Public Services3
Goal
Description
Ensure that opportunities and services are provided to improve the quality of life and independence for lower-income persons, and ensure access to programs that promote prevention and early intervention related to a variety of social concerns such as substance abuse, hunger, and other issues.

Goal Name CD-2 Non-Homeless Special Needs Population4
Goal
Description
Ensure that opportunities and services are provided to improve the quality of life and independence for persons with special needs, such as elderly/frail elderly, disabled persons, victims of domestic violence, abused/neglected children, persons with HIV/AIDS, illiterate adults and migrant farmworkers.

Goal Name CD-3 Youth5
Goal
Description
Increase opportunities for children/youth to be healthy, succeed in school and prepare for productive adulthood.

Goal Name CD-4 Fair Housing6
Goal
Description
Continue to promote fair housing activities and affirmatively further fair housing.

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Goal Name CD-5 Economic Development7
Goal
Description
Reduce the number of persons with incomes below the poverty level, expand economic opportunities for very low- and low-income residents, and increase the viability of neighborhood commercial areas.

Goal Name CD-6 Infrastructure/Public Facilities8
Goal
Description
Maintain quality public facilities and adequate infrastructure and ensure access to public facilities for the disabled; Remove barriers to the safe travel of persons with disabilities and enhance public safety and accessibility; Provide or improve access to facilities for disabled persons.

Goal Name CD-7 Administration9
Goal
Description
Support the development of viable urban communities through extending and strengthening partnerships among all levels of government and the private sector, and administer federal grant programs in a fiscally prudent manner.

Strategies include:
 To continue the collaborative administration with the other Consortia jurisdictions for the City’s community development and affordable housing programs undertaken under this Strategic Plan. This effort will include common policies and procedures for requests for the use of funds, Subrecipient reporting, record-keeping, and monitoring.

The City will also cooperatively further the efforts of the Contra Costa Council on Homelessness (CCCH).

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AP-35 Projects - 91.420, 91.220(d)
Introduction
The City will continue to fund local agencies that provide services that meet the needs of at-risk residents citywide.
# Project Name
1 ECHO - Fair Housing Services
2 CASA - Serving All Foster Children
3 CCC Health Services - Coordinated Outreach, Referral, and Engagement Program 4 Contra Costa Crisis Center-Crisis / 211 Contra Costa
5 Monument Crisis Center - Critical Safety Net Resources for Families and Individuals 6 CC Senior Legal Services - Legal Services for Seniors 7 Food Bank - Collaborative Food Distribution
8 Empowered Aging
9 STAND! - Rollie Mullen Center Emergency Shelter
10 Meals on Wheels Diablo Region (MOW)
11 ECHO - Tenant/Landlord Counseling and Dispute Resolution Services 12 Winter Nights Family Shelter, Inc.
13 Meals on Wheels Diablo Region - Senior Nutrition - CC Cafes 14 Family Justice Alliance - Family Justice Navigation Program 15 Community Violence Solutions - Children's Interview Center-Child Sexual Assault Intervention 16 Monument Impact - Emerging Business Support Program
17 Opportunity Junction - Healthcare Career Pathway
18 Bay Area Crisis Nursery
19 Mt. Diablo School District - CARES After School Program 20 CC Child Care Council - Road to Success
21 City Housing Conservation Program - Loans & Grants
22 City Engineering - ADA Transition Plan
23 City Housing Administration
24 City Child Care Developer Fee (CCDF) Administration
25 CDBG Administration
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
CDBG Funds are allocated throughout the City of Concord to respond to priority needs.

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AP-38 Project Summary
Project Summary Information

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Project Name ECHO - Fair Housing Services
Target Area City of Concord
Goals Supported CD-4 Fair Housing
Needs Addressed Non-Housing Community Development
Funding CDBG $10,000
Description ECHO Housing is a HUD-approved housing counseling agency, and satisfies HUDs definition of Fair Housing Enforcement Organization and Qualified Fair Housing Enforcement Organization. ECHO affirmatively furthers fair housing by addressing discrimination in Antioch, Concord, Walnut Creek, and urban CCCounty; investigates allegations of discrimination; conducts audits to uncover discrimination, provides training to housing providers. LMC/05J
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
25 Families
Location Description Main Office: 770 A St, Hayward, California. Services are provided by phone and at various locations throughout the County.
1 Planned Activities
Project Name CASA - Serving All Foster Children
Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
Funding CDBG: $11,250
Description CASA secures, trains, and supports court-appointed volunteers to advocate for abused, neglected and abandoned children and youth during their uncertain journey in the foster care system. CASA advocates provide a powerful and consistent voice to provide these youth with safe and healthy environments in permanent homes, thereby reducing future homelessness, and increasing health, educational attainment, and long-term success. Program will provide services to 40 Persons.
2 Target Date 6/30/2024

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Estimate the number
and type of families
that will benefit from
the proposed activities
25 children will receive services.

Location Description Main Office: 2151 Salvio Street Ste 295, Concord, California Planned Activities Trained volunteers will provide advocacy, mentoring and representation services to abused and neglected children who are wards of the County’s Juvenile Dependency Court as a way to improve access to health and social services and a safe and permanent living situation.

Project Name CCC Health Services - Coordinated Outreach, Referral, and Engagement Program
Target Area City of Concord
Goals Supported H-1 Emergency Shelter and Homeless Related Svcs Needs Addressed Homelessness
Funding CDBG: $12,500
Description CORE teams conduct outreach to unsheltered persons and serves as an entry point into the coordinated entry system for unsheltered persons and work to identify, engage, stabilize and house chronically homeless individuals and families. The outreach teams will contact a minimum of 1083 homeless individuals to provide basic needs supplies, counseling, benefits assistance, linkages to healthcare, shelter placement, and referrals and transportation to C.A.R.E. Centers. Program will provide services to 150 Persons.

Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
100 individuals experiencing homelessness
3 Location Description Services are provided where homeless individuals congregate including on the streets, in parks and along waterways.

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Planned Activities A team of two outreach workers will deliver services to homeless individuals in encampments and on the streets, completing housing and service assessments and providing basic needs supplies such as socks, hygiene kits and emergency food. Teams will assist with the completion and submission of MediCal, CalFresh, and/or SSI applications and will link individuals to shelter and day centers.

Project Name Contra Costa Crisis Center-Crisis / 211 Contra Costa Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
Funding CDBG: $12,500
Description The Contra Costa Crisis Center's call center is comprised of a 24 hour mental health crisis intervention service AND a 211 information and referral service. Both programs utilize a robust and continually updated social service database of local homeless, health and social services programs. Full-time professional staff and highly trained volunteers provide immediate crisis support service as well as immediate information and referrals 24 hours per day - to emergency shelters, emergency food programs, job training, health care and other services.

These programs serve both the mental health needs as well as the basic health and social service needs of people in crisis - to enable those in need to access resources in their community quickly and easily, allowing residents in need a single point of entry for a variety of resources. LMC/05Z
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
2,000 homeless and special needs residents will receive assistance.

Location Description 307 Lennon Lane Walnut Creek, CA 94598 4 Planned Activities Trained counselors will provide immediate crisis mental health/suicide intervention services by phone 24 hours a day and will provide immediate information and referral services to persons who are presumed beneficiaries, including homeless persons, abused children, people over age 62, migrant farm workers, battered spouses, illiterate adults, severely disabled adults, and persons with AIDS.

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Project Name Monument Crisis Center - Critical Safety Net Resources for Families and Individuals
Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
Funding CDBG: $15,000
Description The Monument Crisis Center offers wrap-around safety net services through on-site food distribution, direct referrals to shelter, referrals and workshops for financial assistance, referrals and access to health care and health care services, basic employment workshops, court- mandated community service programs, on-site legal and crisis support services. LMC/05Z
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
2,000 homeless and low-income individuals will receive services.

Location Description 1990 Market St, Concord, CA 94520
5 Planned Activities he Monument Crisis Center offers wrap-around safety net services through on-site food distribution, direct referrals to shelter, referrals and workshops for financial assistance, referrals and access to health care and health care services, basic employment workshops, court mandated community service programs, on site legal and crisis support services
Project Name CC Senior Legal Services - Legal Services for Seniors Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
Funding CDBG: $11,250
Description Contra Costa Senior Legal Services provides vital legal assistance to residents of the County aged 62 and over in areas such as eviction defense, protection from elder abuse and consumer
debt.(LMC(PB)/05A)
6 Target Date 6/30/2024

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Estimate the number
and type of families
that will benefit from
the proposed activities
100 seniors will receive legal services.

Location Description 2702 Clayton Rd., Ste. 202 Concord CA 94519 Planned Activities Contra Costa Senior Legal Services provides services essential to the health and well-being of older residents of Concord to help them stay housed and to protect against elder abuse and unscrupulous consumer debt practices.

Project Name Food Bank - Collaborative Food Distribution Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
Funding CDBG: $12,500
Description Operate a year-round food program which collects and distributes nutritious food to low-income households through three of its direct food distribution programs: Food for Children, Senior Food Program, and Food Assistance Program. LMC/05W
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
5,000 Low-to-moderate income individuals will receive nutritious food Location Description Main Office/Warehouse: 4010 Nelson Avenue, Concord, California 94520. Food is distributed at various sites throughout the City. 7 Planned Activities Operate a year-round food program which collects and distributes nutritious food to low-income households through three of its direct food distribution programs: Food for Children, Brown Bag for Seniors, and Food Assistance program.

Project Name Empowered Aging
Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
8 Funding CDBG: $10,000

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2023
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Description Empowered Aging serves older and dependent adults who live in the nearly 500 long-term care facilities in Contra Costa County. The majority of the clients served are older adults (62+), with disabilities and impairments requiring care and assistance with at least three activities of daily living. Approximately 30% of those individuals are low-income and more than half experience the effects of dementia and two additional co-occurring conditions such as diabetes, heart disease, mental illness etc. LMC(PB)/05Z
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
200 frail elderly and disabled residents will receive advocacy services.

Location Description Services will be provided in long term care facilities throughout the City Planned Activities Dependent adults and elderly residing in long term care facilities will have access to safe and secure environments through the advocacy of trained and certified Ombudsmen who investigate abuse and ensure compliance of facilities with Title 22 California Code of Regulation Project Name STAND! - Rollie Mullen Center Emergency Shelter Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
Funding CDBG: $10,000
Description STAND's Emergency Shelter can accommodate up to 24 adult survivors and their children who are fleeing from violent relationships for up to 3 months at no cost. As part of a continuum of care at STAND!, the Shelter provides clients with access to comprehensive supportive services including food, clothing, social and legal advocacy, vocational assistance, children's services, housing and other referrals, and evidence-based counseling transitioning clients toward independence.

LMC(PB)/05G
Target Date 6/30/2024
9 Estimate the number
and type of families
that will benefit from
the proposed activities
25 persons (10 women and their children) will receive emergency shelter and support services.

Annual Action Plan
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Location Description Shelter is located in an undisclosed location.

Planned Activities STAND’s Rollie Mullen Center will provide emergency shelter to 10 women and their children fleeing life-threatening violent relationships at no cost for up to 3 months. The shelter provides clients with access to comprehensive supportive services, including food, clothing, social and legal advocacy, vocational assistance, child care, housing referrals, and evidence-based counseling to aid in transitioning clients toward independence.

Project Name Meals on Wheels Diablo Region (MOW)
Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
Funding CDBG: $10,000
Description Meals on Wheels delivers nutritious meals to all frail, home bound seniors living in Contra Costa County to help them live at home in safety, in comfort and with dignity for as long as possible. Clients are 62+ years old, home bound, and are unable to shop and/or prepare meals for themselves. Seniors benefit from daily health and wellness checks from volunteer drivers and ongoing client monitoring through in-home visits by outreach workers. LMC(PB)/05A
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
150 seniors will receive a hot, nutritious lunch delivered to their home.

Location Description Main Office: 1300 Civic Dr, Walnut Creek, California 94596. Meals are delivered to seniors homes throughout the City.
10 Planned Activities Deliver nutritious meals to frail, home-bound seniors to help them to live at home in safety, in comfort, and with dignity for as long as they can.

Project Name ECHO - Tenant/Landlord Counseling and Dispute Resolution Services Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
11 Funding CDBG: $10,000

Annual Action Plan
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29 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description ECHOs staff shall provide information and build community awareness with regard to housing rights and responsibilities to both tenants and landlords residing in Antioch, Concord, Walnut Creek, and Urban County. Services shall include telephone counseling regarding housing rights and responsibilities, dispute resolution, development and distribution of flyers and brochures, conducting housing clinics and community presentations.

Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
100 low-to-moderate income Concord residents will receive Tenant/Landlord Services.

Location Description Main Office: 770 A St, Hayward, California. Services are provided by phone and at various locations throughout the County.

Planned Activities Concord residents will have access to Tenant/Landlord counseling services, as well as access to community activities throughout the year.

Legal advice and representation will be provided for housing issues that cannot be resolved through counseling.

Project Name Winter Nights Family Shelter, Inc.

Target Area City of Concord
Goals Supported H-1 Emergency Shelter and Homeless Related Svcs Needs Addressed Homelessness
Funding CDBG: $10,000
Description The project will provide rotating emergency shelter for homeless adults and their children. (LMC(PB)/03T)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
Program will serve 10 homeless adults and children.

Location Description The shelter is located at various churches throughout the County on a two-week rotation.
12 Planned Activities The project, which rotates to different churches for two week periods, will provide emergency shelter, food, tutoring, transportation, case management and housing placement assistance to homeless families from October through May each year.

Annual Action Plan
2023
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
Project Name Meals on Wheels Diablo Region - Senior Nutrition - CC Cafes Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
Funding CDBG: $10,000
Description MOWDR SOS Senior Nutrition/C.C. Cafes program serves hot, nutritious lunches Monday-Friday to persons age 62 and older at six (6) senior centers: Bay Point, Concord, Crockett, Pittsburg, Rodeo, and Walnut Creek. Seniors receive a balanced, nutritious meal, and benefit from socialization opportunities with their peers and with volunteers.

LMC(PB)/05A
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
200 seniors aged 62 and over will receive a hot, nutritious lunch.

Location Description Concord Senior Center 2727 Parkside Circle Concord, California 13 Planned Activities The Senior Nutrition/CC Cafes Program will serve hot, nutritious lunches Monday through Friday to persons age 62 and over at the Concord Senior Center.

Project Name Family Justice Alliance - Family Justice Navigation Program Target Area City of Concord
Goals Supported CD-2 Non-Homeless Special Needs Population Needs Addressed Non-Housing Community Development
Funding CDBG: $10,000
Description Provide navigation services to victims of domestic violence, sexual assault, child abuse, elder abuse and human trafficking. LMC(PB)/05G Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
250 victims of domestic violence, sexual assault, child abuse, elder abuse, and human trafficking will receive services.
14 Location Description 2151 Salvio Street, Suite 201, Concord, CA 94520

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Planned Activities Navigation services will be provided to victims of domestic violence, sexual assault, child abuse, elder abuse and human trafficking guide them to safety, self-sufficiency and empowerment.

Project Name Community Violence Solutions - Children's Interview Center-Child Sexual Assault Intervention
Target Area City of Concord
Goals Supported CD-1 General Public Services
Needs Addressed Non-Housing Community Development
Funding CDBG: $10,000
Description The Children's Interview Center program of CVS serves children sexual assault victims aged 2-17 years and their non-offending family members who are involved in child sexual assault investigations. We also provide services to developmentally disabled individuals of any age. These participants are referred from all areas and cities of our county and only by law enforcement and social services. LMC(PB)/05N Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
Provide 65 child sexual assault and physical abuse victims aged 2-17 years and their non-offending family members services including forensic interview, advocacy, case management, and mental health services.

Location Description 2101 Van Ness Street, San Pablo, CA 94806 15 Planned Activities Provide child sexual assault and physical abuse victims aged 2-17 years and their non-offending family members services including forensic interview, advocacy, case management, and mental health services.

Project Name Monument Impact - Emerging Business Support Program Target Area City of Concord
Goals Supported CD-5 Economic Development
Needs Addressed Non-Housing Community Development
Funding CDBG: $20,000
Description Catalyze entrepreneurship and self sufficiency wages among low income immigrants and refugees in Concord by providing navigation and support to small business owners through the business formalization process. LMC/18C
16 Target Date 6/30/2024

Annual Action Plan
2023
32 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number
and type of families
that will benefit from
the proposed activities
10 low-to-moderate income individuals will receive individual advising.

Location Description 2699 Monument Blvd. Suite G Concord, California 94520 Planned Activities Assist low-income individuals to achieve self-sufficiency by starting and/or growing a microenterprise. The project will support existing and emerging businesses to qualify for and/or secure a business license.

Project Name Opportunity Junction - Healthcare Career Pathway Target Area City of Concord
Goals Supported CD-5 Economic Development
Needs Addressed Non-Housing Community Development
Funding CDBG: $20,000
Description The Healthcare Career Pathway program equips low-income job seekers to enter the healthcare workforce as Certified Nursing Assistants and build stable careers while providing critical patient care to the low-income, aging population. The program combines training needed for certification with life skills, case management, career skills, job placement, and long-term follow-up.LMJ/18A
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
5 people will enter the healthcare workforce as Certified Nursing Assistants.

Location Description Office: 3102 Delta Fair Blvd. , Antioch, CA 94509 Instructional site: Mt. Diablo Adult Education, 1266 San Carlos Avenue, Concord, CA 94518
Clinical sites: San Miguel Villa, 1050 San Miguel Rd, Concord, CA 94518 and Tampico Terrace, 130 Tampico, Walnut Creek, CA 94598 17 Planned Activities The program combines training needed for Certified Nursing Assistant certification with life skills, case management, career skills, job placement, and long-term follow-up.

Project Name Bay Area Crisis Nursery18
Target Area City of Concord

Annual Action Plan
2023
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
Goals Supported CD-3 Youth
Needs Addressed Non-Housing Community Development
Funding Child Care Developer Fees: $50,000
Description The Crisis Nursery provides short-term residential/shelter services and emergency childcare for children ages birth through five years.

Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
50 families will receive emergency childcare services.

Location Description 1506 Mendocino Dr, Concord, CA 94521 Planned Activities The Bay Area Crisis Nursery provides emergency residential/shelter services and childcare for young children birth through 5 years, as well as emergency childcare and residential/shelter services for children living in families who identify as experiencing a crisis or parental stress, are at-risk of child abuse or neglect, or who have been previously abused or neglected and have been reunited with natural family.

Project Name Mt. Diablo School District - CARES After School Program Target Area City of Concord
Goals Supported CD-3 Youth
Needs Addressed Non-Housing Community Development
Funding Child Care Developer Fees: $50,000
Description The CARES Program provides comprehensive, on-site after school programs to approximately 1250 students at five elementary schools and two middle schools in the Monument Corridor, Solano Way and Willow Pass neighborhoods. (LMC/05D)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
1250 children and their families will benefit from on-site, after school programs.
19 Location Description Services will be provided at five elementary schools and two middle- schools in Concord.

Annual Action Plan
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34 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities The CARES Program will provide comprehensive, on-site and remote after school programs to provide services to students at five elementary schools and two middle schools in the Monument Corridor, Solano Way and Willow Pass neighborhoods, including academic support and intervention, arts and enrichment, health and nutrition education, sports and fitness activities, leadership and youth development and family events.

Project Name CC Child Care Council - Road to Success
Target Area City of Concord
Goals Supported CD-5 Economic Development
Needs Addressed Non-Housing Community Development
Funding Child Care Developer Fees: $21,300
Description The project will recruit, train and support very low-income, low-income and moderate-income residents who desire to start and maintain stable microenterprises as they become successful licensed family child care providers. (LMC/18C)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
20 Concord residents will receive assistance in starting or maintaining a home-based family child care business.

Location Description 1035 Detroit Ave Ste 200, Concord, California 94518 20 Planned Activities The program will provide microenterprise assistance to very low- income, low-income and moderate-income Concord residents who want to maintain or start stable small businesses as licensed home- based family child care providers.

Project Name City Housing Conservation Program - Loans & Grants Target Area City of Concord
Goals Supported AH-1 Existing Housing Stock
Needs Addressed Affordable Housing
Funding CDBG: $275,417
21 Description Program assists Low and Moderate income Concord homeowners with loans and grants to rehabilitate their single family or mobile homes and address emergency, weatherization, security, handicap accessibility and other issues.

Annual Action Plan
2023
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
15 low- to moderate-income owner-occupied households will receive grants or loans to preserve the City's existing housing stock.

Location Description Repairs are done at the homes of low-income residents throughout the City.

Planned Activities The City's Housing Conservation Program will provide grants and loans for home repairs to low-income homeowners of single family homes and mobile homes. The program provides home repair loans, emergency repair and accessibility grants, weatherization and home security grants for seniors and lead-based paint abatement grants.

Project Name City Engineering - ADA Transition Plan
Target Area City of Concord
Goals Supported CD-6 Infrastructure/Public Facilities
Needs Addressed Non-Housing Community Development
Funding CDBG: $300,000
Description Program installs curb ramps that provide access to sidewalks and public transportation and constructs/replaces sidewalks throughout the City where gaps and uplifted sidewalks create barriers for the mobility impaired. (LMC/03L)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
8,000 mobility impaired residents will have safe access to sidewalks and businesses.

Location Description Various locations throughout the City 22 Planned Activities This project will implement portions of the City’s ADA transition plan by removing barriers, constructing sidewalks and installing curb ramps.

Project Name City Housing Administration
Target Area City of Concord
Goals Supported AH-1 Existing Housing Stock
Needs Addressed Affordable Housing
23 Funding CDBG: $160,000

Annual Action Plan
2023
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Project provides funding for administration of the portion of the housing rehabilitation program that is CDBG eligible, including City of Concord and Habitat for Humanity staff time to administer the program and costs of loan processing, inspections, etc. Habitat for Humanity will administer the program including application review and approval, completion of contracts and loan documents and construction management. City staff will have oversight of the program including outreach to homeowners, final approval of loans, processing of payments to contractors and tracking expenditures for accuracy and appropriateness. (14H)
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
20 low-to moderate income owner-occupied households will receive assistance with loans or grants to preserve the City's housing stock Location Description City Offices: 1950 Parkside Drive Concord, California 94519 Habitat for Humanity Offices: 2619 Broadway, Oakland, CA, 94612 Planned Activities This project will administer CDBG funds for the housing rehabilitation grant and loan program in a manner that is fiscally responsible and that ensures compliance with all applicable Federal rules and regulations.

The City will work with Habitat for Humanity to administer the program.

Project Name City Child Care Developer Fee (CCDF) Administration Target Area City of Concord
Goals Supported CD-7 Administration
Needs Addressed Administration
Funding Child Care Developer Fees: $28,700
Description Project administers CCDF program and ensures compliance with all local rules and regulations.

Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
CCDF will administer funds for a children’s after school program that serves 1,250 students and an economic development project that provides support to 20 in-home child care providers and emergency child care center that provides services to 50 families. 24 Location Description City Offices: 1950 Parkside Drive, Concord, California 94519

Annual Action Plan
2023
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities City of Concord will administer the CCDF program in a fiscally responsible manner and will ensure compliance with all applicable local rules and regulations.

Project Name CDBG Administration
Target Area City of Concord
Goals Supported CD-7 Administration
Needs Addressed Administration
Funding CDBG: $209,631
Description Administration of CDBG Program
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
Through the administration of CDBG funds, City staff will ensure essential services are provided to residents throughout Concord.

Location Description City Offices: 1950 Parkside Drive Concord, California 94519 25 Planned Activities City of Concord will administer CDBG entitlement grant program in a fiscally responsible manner and will ensure compliance with all applicable Federal rules and regulations.

Annual Action Plan
2023
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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed CDBG Funds are allocated throughout the City of Concord to respond to priority needs.

Geographic Distribution
Target Area Percentage of Funds
City of Concord 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically Concord does not allocate funds on a geographic basis. The City will prioritize the use of its CDBG funding for the conservation of affordable housing for low-income households and to address homelessness. Infrastructure improvements will be focused on those city-wide barrier removal priorities noted in the City’s ADA Transition Plan. Investments in public facilities and services serving the homeless, special needs populations and low to moderate income persons will be made by allocating funds to local organizations that provide services to low-income households throughout the City.

Discussion
CDBG Funds are allocated throughout the City of Concord to respond to priority needs.

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2023
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AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
High land and development costs constrain housing production throughout the Bay Area, and place a significant constraint on the production of housing for low- and moderate-income households. Contributing factors include the cost of land, materials, labor, fees and associated development requirements, sales commissions, and developer profits.

The Department of Housing and Urban Development defines affordable housing as housing for which the owner or tenant pays less than 30 percent of the household income. The cost of housing compared to income directly impacts the degree of affordability. If housing costs are high relative to income, there will be a correspondingly higher prevalence of borrowing in the case of homeowners, and overpayment in the case of renters. Overcrowding also increases as people turn to sharing homes and apartments to reduce housing costs. Furthermore, households with unaffordable housing costs will have less income available to spend elsewhere, and may have difficulty affording food, healthcare, transportation, or other goods and services.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The City took several steps in recent years to remove governmental constraints that are barriers to affordable housing. These include adoption of additional Development Code technical revisions to clarify interpretations and streamline processing, implementation of the Downtown Specific Plan, adoption of the Todos Santos Design Guidelines, adoption of the Housing Element Update, launch of the Home Share Pilot Program, adoption of a Residential Tenant Protection Program, and working with the Contra Costa Water District to reduce facility reserve charges for small accessory dwelling units with the goal of reducing the hurdles and challenges involved in an effort to add to the City's affordable housing inventory. To further encourage accessory dwelling units and junior accessory dwelling units, the City reduced the size allowance to 150 sq. ft. for lots of any size and increased the size allowance to 1,200 sq. ft. for lots greater than 12,000 sq. ft. Another alleviated constraint included outlining the process for requesting payment of a parking in-lieu fee, which is subsidized below the actual cost of providing the parking on-site.

The City has also initiated a homeless strategic planning process that will coordinate response to factors that contribute to homelessness such as

Annual Action Plan
2023
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high housing cost and seek to leverage resources to meet the need of increasing housing options.

Discussion
As Concord looks to the future, the City is developing plans for key infill and other development sites that will shape the next phase of residential and commercial development in Concord. Planning for the City’s existing and future housing needs will be an essential element of this process, and the City in continuing its history of planning for housing for all segments of the population.

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2023
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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
Priority is assigned based on the level of need that is demonstrated by the data that has been collected during the preparation of the Plan, the information gathered during the consultation and citizen participation process and the availability of resources to address these needs. Based on all of these components, affordable housing, homelessness, non-housing community development needs and grant administration are all considered “high” priorities.

Actions planned to address obstacles to meeting underserved needs Special needs groups such as elderly/frail elderly, persons with disabilities, persons who suffer from alcohol and other drug addictions, persons who are victims of domestic violence and persons living with HIV/AIDS live throughout the City. Given that these special needs populations have various obstacles to accessing housing and various services, the City of Concord will continue to provide CDBG funds for housing rehabilitation activities, public facility/infrastructure improvements, and public service activities that improve the quality of life for special needs groups.

Concord addresses the needs of children by funding various programs that assist low-income families, such as the Monument Crisis Center and the Food Bank. In addition, the City provides Child Care Developer Fees to the Mt. Diablo School District CARES After School program to provide after school activities that include sports, arts and crafts and healthy eating. This program provides on-site after- school care to 1,200 children at five elementary and two middle schools.

The City also supports services that assist the homeless with accessing food, shelter, benefits and permanent housing. The CORE Outreach Team delivers services to homeless individuals in encampments and on the streets, providing basic needs supplies and connecting people to local services and housing. The City is utilizing resources to implement pilot programs to meet the need of vulnerable populations such as Rapid Rehousing services.

Actions planned to foster and maintain affordable housing In July, 2020, in an effort to curb the rising cost of rental housing in the City, the Concord City Council approved an ordinance that established the Residential Tenant Protection Program (RTTP). The program adds additional protections to State Legislation AB 1482, increasing the amount of relocation assistance to two times the monthly rent or $5,000, whichever is greater, and requiring that landlords offer minimum lease terms to tenants.

The Concord Naval Base Reuse Project includes a total of up to 12,280 housing units over a 30-year time horizon, with 25 percent of the units affordable to low income households. Such housing will occur through scattered sites, with proximate access to transit, and be spread throughout the development

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phases of the Specific Plan.

Actions planned to reduce lead-based paint hazards
Lead-based paint management and abatement has been incorporated into the City of Concord’s Home Rehabilitation Loan and Grant Program. Lead-based paint abatement grants up to $22,500 are provided to low-income homeowners (households earning at or below 80% of the Area Median Income [AMI]).

The City requires that recipients of funds from the Housing Rehabilitation Loan and Grant program sign HUD’s Notification for Lead Based Paint and that any abatement required be included in the home’s repairs.

Actions planned to reduce the number of poverty-level families Concord employs a variety of strategies to help alleviate poverty in the City, including efforts to stimulate economic growth and job opportunities, and to provide residents with the skills and abilities required to take advantage of those opportunities. The City uses a portion of its CDBG funding to provide grants to non-profit agencies to operate the Public Services programs that serve the homeless and address fair housing issues in the community, which directly impact poverty-level individuals.

Concord also funds economic development activities designed to support low-income individuals in achieving self-sufficiency through starting and/or growing micro-enterprises. The City, through its various departments, provides services and supports programs that promote personal responsibility, independence, and self-sufficiency. The City seeks input from diverse stakeholders on best practices and evidence-based models of economic mobility. Through the City's American Rescue Plan Act grant distribution in 2023, a proposal for a guaranteed income pilot was approved for award.

Actions planned to develop institutional structure
The Contra Costa County Consortium was formed by the County of Contra Costa and the cities of Antioch, Concord, Pittsburg and Walnut Creek to develop a collaborative approach to administering and implementing the goals and objectives of their respective CDBG programs. The Consortium members coordinate Consolidated Planning efforts and have developed a streamlined process for applying for CDBG/HOME/ESG funds that allows applicants to complete one application for multiple jurisdictions and, once funded, complete one periodic performance report for all funding jurisdictions. This joint effort has eased the administrative burden for Subrecipients and allows jurisdictions to easily share information. Furthermore, the Consortia established a multiple-year funding cycle that has greatly reduced the time spent on completing and reviewing applications for both Subrecipients and CDBG/HOME staff respectively.

Each entitlement jurisdiction in the Consortia completes its own annual planning and allocation process, including preparation and completion of its annual Action Plan, as well as its Consolidated Annual Performance Evaluation Report (CAPER). These planning efforts have a high degree of coordination with

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Consortium members working together to closely align CDBG allocations, helping to maximize funding and to ensure collaboration between agencies.

Actions planned to enhance coordination between public and private housing and social service agencies
Most of the City's goals and objectives within the Consolidated Plan and Annual Action Plan are met through activities that are carried out by Subrecipients that are primarily public and private agencies within the County, including non-profit organizations. There is ongoing concern about the long-term capacity of the non-profit community during these severe budgetary times and their ability to comply with often complex federal regulations and requirements in implementing federally funded programs.

Concord will continue to support these agencies by providing technical assistance, helping to establish collaboration between agencies and with funding, when possible Discussion
The City of Concord works closely with public and private affordable housing providers as well Contra Costa County’s Public Health, Behavioral Health, and Homeless Services departments to coordinate the allocation of funds to best meet the needs of the City’s most at risk residents. CDBG funds are distributed to programs that provide services to persons with physical, developmental, substance abuse and mental health issues. This coordination leverages CDBG funds to maximize their impact.

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2023
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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 14,100

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan.
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 14,100
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

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Discussion
100% of CDBG funds allocated to the City of Concord will be used to benefit low to moderate income residents.

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2023
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Co
mmunity Development Block Grant (CDBG)
2023/24 Funding
Agency Program 2023/24 Funding
Recommendations

PUBLIC SERVICES
CASA (Court Appointed Special
Advocates)
Serving All Foster
Children $11,250
Community Violence Solutions CIC Child Sexual
Assault Intervention $10,000
Contra Costa County Health Services
- Health, Housing, and Homeless
Services
CORE (Coordinated
Outreach, Referral,
and Engagement)
Countywide
$12,500
Contra Costa Crisis Center Crisis/211 Contra
Costa $12,500
Contra Costa Family Justice Alliance Family Justice
Navigation Program $10,000
Contra Costa Senior Legal Services Legal Services for
Seniors $11,250
ECHO (Eden Council of Hope &
Opportunity) Fair Housing Services $10,000
ECHO Housing
Tenant/Landlord
Counseling and
Dispute Resolution
Services
$10,000
Empowered Aging Ombudsman Services $10,000
Food Bank of Contra Costa & Solano Collaborative Food
Distribution $12,500
Meals on Wheels Diablo Region Senior Nutrition - CC
Cafes $10,000
Meals on Wheels Diablo Region Meals on Wheels
Program $10,000
Monument Crisis Center
Critical Safety Net
Resources for
Families & Individuals
$15,000
STAND! For Families Free of Violence Rollie Mullen Center Emergency Shelter $10,000

Winter Nights Family Shelter, Inc Winter Nights Family
Shelter $10,000
TOTAL PUBLIC SERVICES $165,000

INFRASTRUCTURE
City of Concord Engineering ADA Transition Plan $300,000 TOTAL INFRASTRUCTURE $300,000

ECONOMIC DEVELOPMENT
Monument Impact
Emerging Business
Support $20,000
Opportunity Junction
Healthcare Career
Pathway $20,000
TOTAL ECONOMIC DEVELOPMENT $40,000

HOUSING REHABILITATION
Habitat for Humanity
Housing Rehabilitation
Loan & Grant
Program (CDBG)
$275,417
Habitat for Humanity
Housing Rehabilitation
Loan & Grant
Program (Revolving
Loan Funds)
$100,000
Habitat for Humanity Administration $130,000
City of Concord
Housing
Administration $30,000
TOTAL HOUSING REHABILITATION $535,417
CDBG PROGRAM ADMINISTRATION $209,631
TOTAL FY 2023/24 CDBG FUNDING $1,250,048

CHILD CARE DEVELOPER FEES (CCDF)
2023/24 Funding
Mt.Diablo Unified School District CARES After School
Program $50,000
CoCoKids Road to Success $21,300
Bay Area Crisis Nursery Bay Area Crisis
Nursery $50,000
ADMINISTRATION $28,700
TOTAL CHILD CARE DEVELOPER FEE GRANTS $150,000

Staff Report
Date: May 16, 2023
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Jasmin Loi, Director of Human Resources
Prepared by: Sarah Brannick, Senior Human Resources Analyst [email protected]
(925) 671-3447
Subject: Considering approval to submit a request for group insurance and enter into an agreement with Prudential Insurance for a total not-to-exceed amount of $645,935.50 for professional services as the third-party administrator of the City of Concord's group life and disability insurance plans for the period June 1, 2023 – December 31, 2026, and authorizing the City Manager to execute the application and agreement in a form acceptable to the City Attorney.

Report in Brief
The City of Concord (City) currently contracts with a third party administrator, The Hartford, for the City’s life and disability insurance plans that include: group and voluntary life, accidental death and dismemberment (AD&D), short term disability (STD), and long term disability (LTD). Prior to the May 31, 2023, expiration of the current agreement, Alliant, the City’s benefits broker, conducted an informal vendor bid in keeping with the City’s need to provide both high quality and cost-effective benefits.

Alliant provided four competitive bids to the City, which were narrowed down to one finalist, The Prudential Insurance Company of America (Prudential). Based on a thorough review and reference checks, the City seeks to change the vendor from The Hartford to Prudential. The proposed annual premium of $184,553 from Prudential represents an increase of $2,375 from the current annual premium for The Hartford.

Upon Council approval, Prudential will issue an agreement for the period June 1, 2023 – December 31, 2026 to the City after receiving and approving the executed request for group insurance (Attachment 1).

3.b3.b

City Council Agenda Report
Agenda Item No. 3.b
May 16, 2023
Recommended Action
Approve the submittal of a request for group insurance and an agreement with Prudential Insurance for a total not- to-exceed amount of $645,935.50 for professional services as the third-party administrator of the City of Concord’s group life and disability insurance plans for the period June 1, 2023 – December 31, 2026, and authorize the City Manager to execute the request and agreement in a form acceptable to the City Attorney.

Background
The City provides comprehensive group life and disability insurance benefits coverage to eligible employees as a benefit that provides an important source of financial security in the event of a death or personal illness. The City provides these benefits to offer both a competitive package in attracting qualified job applicants and retaining them after hire.

These group plans are fully-paid for by the City. In addition, eligible employees are also able to purchase voluntary life and accidental death and dismemberment benefits to increase coverage for themselves and their eligible dependents. The table below outlines the types of coverages available and who is eligible to participate as well as who is responsible for the cost of the premiums.

Lines of Coverage Eligible Employees* Premiums Paid By:

Basic Life Insurance All full-time employees City of Concord Voluntary Life Insurance-
Employee
All full-time employees Employee
Voluntary Life Insurance-
Dependent
All full-time employees Employee
Accidental Death &
Dismemberment (AD&D) –
Employee and Dependents
All full-time employees Employee
Short Term Disability All full-time employees
except Sworn employees
City of Concord
Long Term Disability All full-time employees City of Concord *Excludes full-time benefited contract employees
As part of the informal bid process Alliant worked with Human Resources Department staff in identifying key issues and objectives, finalizing the selection criteria, developing vendor questions, interviewing and analyzing the proposed bid responses as well as providing public agency contacts for reference checking.

Group disability programs (including short term disability and long term disability plans) provide benefits to help cover costs for employees that are unable to receive a full salary due to being temporarily and/or permanently unable to work. Group Life Insurance provides a lump sum payment to the designated beneficiary of the employee in event of their death during their employment with the City.

City Council Agenda Report
Agenda Item No. 3.b
May 16, 2023
The City’s benefits broker, Alliant, conducted targeted outreach to life & disability vendors in order to solicit bids from all interested providers. The City received four competitive bids from Prudential, MetLife, Lincoln, and The Standard.

Evaluation Criteria
The selection of the life and disability third party administrator on the following criteria:
 Ease of Administration/Billing/Reports
 Customer Service Responsiveness
 Premium/Cost
 Industry Reputation
 Reference Feedback
 Computer System Capabilities
Analysis
Based on the selection criteria, interviews, and reference checks staff selected Prudential as the proposed vendor for the City’s life and disability plans.

Benefit levels under the new administrator will remain the same. There will only be a change in the third party administrator for those benefits.

Financial Impact
This third party vendor change will result in an annual increase of $2,375 for a total proposed annual premium of $184,553. The total impact over the next three and a half years will be $645,935.50 and will be built into the next two-year operating budget and future budgets.

Public Contact
The City Council Agenda was posted.

Attachment

1. Request for Group Insurance

Attachment 1

Staff Report
Date: May 16, 2023
To: City Council
From: Valerie Barone, City Manager
Reviewed by: Kevin Marstall, PE, Director of Community Development Prepared by: Sophia Huckabay, Housing Manager
[email protected]
(925) 671-3387
Subject: Considering adoption of a Resolution authorizing a loan of $6.64 Million in Low and Moderate Income Housing Asset
Funds to Eden Housing to preserve the long-term affordability, and for the acquisition and rehabilitation of a 116-unit affordable housing project comprised of Coral Court
Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord in exchange for an agreement restricting a minimum of 10 of the units at 30% of the Area Median Income and 10 additional units at 60% of the Area Median Income.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15060(c), 15061(b)(2) and (3), 15273, 15378, and Resources Code Section 21065.

Report in Brief
As of June 30, 2023, the City’s Low and Moderate Income Housing Asset Fund will have approximately $7.8 Million remaining for the acquisition and/or development of affordable housing. Per direction received from the Housing & Economic Development Committee and City Council, staff has continued to seek opportunities to invest in the creation and/or preservation of long-term affordable housing by pursuing multifamily complexes at risk of being sold and losing their naturally occurring affordability. In October of 2022, Eden Housing, a non-profit affordable housing provider, made the City aware of a potential 116-unit affordable housing funding opportunity. The project consists of two market-rate multifamily complexes that are being sold off-market as part

4.a4.a4.a4.a4.a4.a4.a4.a

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
of a package deal: Coral Court and Sunset Pines Apartments located at 1491 Detroit Avenue and 1770 Adelaide Street, respectively. Eden Housing is requesting $6.64 Million of the City’s Low and Moderate Housing Asset Funds. The loan would allow Eden Housing to: 1) acquire the project; 2) make any identified minor improvements; 3) income-restrict 20 of the 116 units, whereby 10 units would be restricted at 30% of the Area Median Income and 10 units would be restricted at 60% of the Area Median Income households; 4) leverage additional funds to finance the remaining 96 units whereby 94 would be income-restricted at 80% Area Median Income for workforce housing and would include two unrestricted managers units; and 5) preserve the affordability of the project for a period of 55 years.

Recommended Action
Adopt a Resolution authorizing a loan of $6.64 Million of the City’s Low and Moderate Income Housing Asset Funds to Eden Housing to preserve the long-term affordability, and for the acquisition and rehabilitation of a 116-unit affordable housing project comprised of Coral Court Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord in exchange for an agreement restricting a minimum of 10 of the units at 30% of the Area Median Income and 10 additional units at 60% of the Area Median Income.

Background
As of June 30, 2023, the City of Concord’s (City) Low and Moderate Income Housing Asset Fund will have approximately $7.8 Million for the acquisition and/or development of affordable housing. The following sections review the City’s recent and prior commitments to utilizing these funds. It also reviews the current rents in Concord, as they pertain to this funding request.

Direction from Housing & Economic Development Committee (HED) & City Council In 2017, City Council (Council) directed staff to issue a Notice of Funding Availability (NOFA) for $14 Million in the City’s available Low and Moderate Housing Asset Funds to finance the new development or the acquisition and rehabilitation of affordable housing. Council further directed staff to prioritize project proposals that aim to serve the veteran, senior, disabled, and/or workforce communities of the City of Concord.

Subsequently, Council awarded $7.8 Million from the Low and Moderate Income Housing Asset Fund to Resources for Community Development (RCD) for their 62-unit, Rick Judd Commons project, open to the veteran, senior, and disabled populations, for households earning between 30-60% of the Area Median Income (AMI). This project, located at 1313-1321 Galindo Street and recently broke ground in December of 2022.

Since that time, HED and Council further directed staff to prioritize investing the City’s Low and Moderate Income Housing Asset Fund in retaining affordability in existing multifamily complexes that are at risk of being sold to market-rate investors, thereby likely to lose their naturally occurring affordability. This direction was provided as a

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
result of HED and Council being made aware in recent years of various multifamily complexes in Concord that were purchased by investors, rebranded, and subsequently rented at rates unaffordable to the existing tenants, resulting in displacement of residents.

As a result, Housing Staff has been tracking both publicly marketed and off-market complexes, conversing with the City’s affordable housing partners, and actively working through potential purchase agreements for market-rate multifamily complexes in Concord.

In October of 2022, Eden Housing (Eden), a non-profit affordable housing provider, made the City aware of two market-rate complexes that are being sold off-market as part of a package deal for a total of 116 units: Coral Court and Sunset Pines Apartments located at 1491 Detroit Avenue and 1770 Adelaide Street, respectively. With approval from the City Manager, Eden has submitted a purchase offer of $39.7 Million, with the condition that Council award Eden $6.64 Million in Low and Moderate Income Housing Asset Fund. If awarded, the funds will be used to partially subsidize the cost of acquisition and minor improvement of the project, as well as to preserve its long-term affordability for Concord’s workforce, extremely low- and low-income households.

Currently, the seller has accepted the purchase offer, but closing on the acquisition remains contingent upon project approval by Council.

Direction Received - Housing and Economic Development Committee - March 6, 2023 On March 6, 2023, the HED Committee convened to determine if a recommendation should be forwarded to the City Council to award Eden Housing $6.64 Million in Low and Moderate Income Housing Asset Funds for the acquisition and minor improvements of Coral Court and Sunset Pines Apartments.

Councilmember and Chair Edi Birsan, and Councilmember Carlyn Obringer forwarded Eden Housing’s funding request to the full City Council; Councilmember Obringer forwarded a recommendation for funding.

HED has requested, through means of this staff report, that the following questions be addressed:
1) Provide a clear definition of workforce housing.

Response: Workforce housing (sometimes referred to as middle-income or moderate-income housing) is housing for individuals and families typically earning between 60% and 120% AMI located near employment centers (see Exhibit 6). These households typically earn too much to qualify for deed- restricted affordable housing but too little to afford market-rate rents.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
Examples include, depending on family size and other sources of income1:
 Automotive mechanics ($66,450 per year)
 Food Service Managers ($76,450 per year)
 Vocational Nurses ($80,470 per year)
 Firefighters ($97,370 per year)
 Elementary School Teachers ($100,830 per year)
 Police officers ($119,460 per year)

2) State which agency will own and manage Coral Court and Sunset Pines Apartments.

Response: Eden Housing and its controlled affiliates will own and manage these properties.
3) Going back 20 years, what is the annual percent increase in rent that Eden Housing charges its residents in similar 80% AMI projects? Response: Eden’s asset managers were not able to answer this question.

However, rent increases for the current residents of Coral Court and Sunset Pines Apartments will not exceed four percent per year. Please see the Analysis- Affordable Housing Preservation section below.
4) Is Eden Housing amenable to including units that are affordable to households earning less than 80% AMI, and including, for example, 50% and/or 60% AMI units?
Response: Eden Housing responded in the affirmative. The new affordability proposal has the project providing 10 units affordable to 30% AMI and10 units affordable to 60% AMI. The remaining units consist of 94 units affordable to 80% AMI households and two unrestricted managers’ units.
5) Is it permissible for the City to loan the $6.64 Million to Eden Housing and then sell this debt to a third party?
Response: This type of debt is not marketable or practical for investors due to restrictions contained in the affordable housing agreement. 1 BLS Wage Estimates (San Francisco-Oakland-Hayward MSA) May 2022

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
Housing Element Update (HEU)
On March 14, 2023, following an 18-month long community engagement process, the City Council adopted the 2023-2031 Housing Element Update (“HEU”).

The HEU includes Program 17: Preservation and Housing Rehabilitation, which addresses the preservation of older affordable multifamily housing for extremely low-, very low-, and low-income households. It identifies that the City will finance, as funding permits, the cost of acquisition for older multifamily rental complexes for property owners interested in introducing an affordable housing component.

Additionally, Council directed staff, in alignment with the State’s direction, to further programmatic anti-displacement strategies in the City’s HEU by adding a policy that states the City will adopt a rent stabilization ordinance by 2024 that exceeds the tenant protections of State law (AB 1482). Currently, as required by AB 1482, annual market- rate residential rent increases in Concord are limited to 10% (5% plus the applicable Consumer Price Index (CPI), or 10%, whichever is lower) for properties that meet the requirements of AB 14822.

Concord Rents
Per the City’s Residential Rent Registry Program, for the reporting period of July 1, 2021-June 30, 2022, the average market-rate rents in Concord were $1,715 for a one- bedroom unit and $1,979 for a two-bedroom unit. Based on a January 23, 2023, report generated through CoStar, in 2022, the average market-rate one-bedroom rent in Concord was $2,107 per month, and the average two-bedroom rent in Concord was $2,401 per month.

Currently, rents for 30%, 60% and 80% AMI are as follows3:

Income Limit One-Bedroom Two-Bedroom
30% AMI $803 $964
60% AMI $1,607 $1,929
80% AMI $2,143 $2,572
2 The following units are exempt from AB 1482:
 Units that were constructed within the last 15 years.  Units restricted by a deed, regulatory restrictions, or other recorded document limiting the affordability to low or moderate-income households.
 Certain dormitories.
 A two-unit property, provided the second unit was occupied by an owner of the property for the entire period of the tenancy.
 Single-family homes and condominiums that meet certain ownership type and noticing requirements. 3 The Department of Housing and Community Development (HCD) publishes the annual State income limits in May of each year.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
Rents in Concord currently support households earning between 70% to 80% AMI, which is an income level that is generally considered to be accessible to working families.

Analysis
Funding Request
Eden is requesting $6.64 Million in Low and Moderate Housing Asset Funds to partially finance the cost of acquisition of Coral Court and Sunset Pines Apartments, a 116-unit affordable housing project (Project), and to preserve its long-term affordability for Concord’s extremely low- and low-income households as well as its workforce housing.

The total purchase price of the Project is $39,696,975 for 116 units, which translates to $342,215 per unit. The City would income-restrict 10 units at 30% AMI and 10 units at 60% AMI. City funds would be leveraged to finance the remaining 96 units whereby 94 would be income-restricted for workforce housing at 80% AMI and also would include two unrestricted managers’ units.

The City’s loan would allow Eden to substantially leverage other sources of funding to finance the remaining $33 Million, including private funding through Enterprise Community Partners (a not-for-profit community development finance institution) and the Bay Area Preservation Program through the Metropolitan Transportation Commission.

Project
Coral Court
1491 Detroit Avenue
47 Units
Built in 1968
43 One- and 4 two-bedroom units
Sunset Pines
1770 Adelaide Street
69 Units
Built in 1966
55 One- and 14 two-bedroom
units
Risk of Displacement
The Urban Displacement Project (UDP) is a third-party nonpartisan research project sponsored by universities including University of California Berkeley, and that develops analysis about urban displacement for policy makers. The UDP ranks the location of both of these properties as being located in a “High Displacement risk tract” (2nd only to an “Extreme Displacement” tract) for households earning up to 80% AMI. Consequently, the approximately 300 residents residing within Coral Court and Sunset Pines Apartments are considered highly at-risk of being displaced should a market-rate investor purchase the properties instead of Eden. Please see the Affordable Housing Preservation section below for additional information.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
Affordable Housing Preservation
The current in-place rents range between 53%-86% AMI. For those units with household income below 80% AMI and that complete their income verification requirements, Eden proposes to limit rent increases to an average of 4% or less within a 12-month period, allowing the current residents to remain within their AMI cohorts for the duration of their residency.

Eden will convert the project to include three distinct income cohorts of 30%, 60%, and 80% AMI through the qualification of existing households and/or natural attrition, beginning with designating the 30% AMI units. The terms of the affordable housing agreement shall ensure (1) that meeting the lower AMI units are prioritized as vacancies occur (i.e. any units that become available from natural attrition will first be leased to meet the ten 30% AMI unit requirement followed by the 60% AMI unit requirement),and (2) the 55 year term for these units to be restricted at the 30% or 60% AMI does not begin until each unit is occupied by a qualified household at the appropriate income limits.

Table 1 describes the planned unit breakdown per AMI cohort per property.

Table 1: Unit Size per AMI Level per Property
Coral Court Sunset Pines
1BR 2BR 1BR 2BR
30% AMI 3 1 5 1
60% AMI 3 1 5 1
80% AMI 37 1 45 11
Managers
Unit 1 1
SUBTOTALS 43 4 55 14
TOTALS 47 69
A few of the units currently above the 80% AMI level could experience a reduction in their rent should they meet the income qualification requirements of the project; there are four units at Coral Court and one unit at Sunset Pines Apartments that will potentially experience a rent decrease.

In comparison, per AB 1482, if a market-rate investor purchases the Project and substantially remodels the units, the new property owner could legally provide the current residents with a lease termination notice upon their lease expiration and increase the vacant unit rents without an initial limit, but up to what the market will bear for that type of remodeled unit.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
Occupied market-rate rents are currently able to be increased by up to 10% from the base rent within a 12-month period. A future Concord local Rent Stabilization Ordinance would slow allowable market-rate rent increases, but would not control rents once a tenant vacates a unit, and only an affordable housing agreement can consistently cap rents for households within certain income cohorts, i.e. 30%, 60%, and 80% AMI.

Anti-Displacement
No residents would be displaced due to the acquisition. Eden would income-qualify the current residents at or below the 80% AMI level. Eden conducted a voluntary income survey of the residents at the end of December 2022. Approximately 70% of the residents responded, and 94% of those respondents certified that they earned 80% AMI or below. Any tenants that are considered over-income would continue to reside in their home until the household vacates the unit, at which point an income-qualified household would assume the unit. Upon natural attrition, Project rents would reflect the 30%, 60%, and 80% AMI rent thresholds.

A waitlist would be maintained at each property.

Additional Services
Eden plans to provide onsite resident services coordination that includes (a) referrals to public and private agencies offering a range of services, such as food, clothing, financial assistance, educational and vocational training services, and health and counseling services; (b) working with residents to encourage and plan activities to build a sense of community; and (c) working with residents to build assets through a voluntary savings match program called Eden Savers. Additionally, all residents are eligible for Eden’s Howard T. Collins Memorial Scholarship Program to facilitate pursuing further education. The Program has been in effect for 30 years and Eden Housing has awarded over $950,000 to approximately 600 recipients. The amount awarded is dependent on the number of applicants, but in 2022, the highest amount awarded was $5,500.

Since 1999, Eden Housing has also owned and managed Virginia Lane Apartments, a 91-unit affordable housing complex in Concord. Having properties in close proximity, in this case a drive of less than 10 minutes, Eden anticipates having economies of scale among Virginia Lane, Coral Court, and Sunset Pines, which allows for shared staffing and security. Attached are City GIS maps pinpointing the locations of these properties and their location in relation to the City’s other City-funded affordable housing complexes (Attachments 2 and 3), as well as a map (Attachment 4) that shows the project locations in relation to Virginia Lane Apartments.

Improvements
City Low and Moderate Housing Funds would be used for the acquisition and minor improvements of Coral Court and Sunset Pines Apartments, but Eden would fund any needed major improvements.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
The Project is reported to be in good condition, and there have been no Multi-Family Inspection (MFIP) or code enforcement issues. According to the MFIP team, the current owner is proactive with maintenance repairs and upgrades. Likewise, the Police Department is unaware of anything chronically occurring at the Project sites.

Eden Housing performed its own due diligence to understand the condition of the properties. In general, according to Eden Housing the properties are both in fair to good condition, and Eden is preparing to invest approximately $300,000 per property for immediate repairs.

Regional Housing Needs Allocation (RHNA)
The City’s Regional Housing Needs Allocation for 2023-2031 as identified in the adopted 6th Cycle Housing Element consists of 5,073 as detailed in Table 1 below.

Table 1: City of Concord Regional Housing Needs Allocation 2023-2031 Income Category Units
Extremely Low-Income 646
Very Low-Income 646
Low-Income 744
Moderate-Income 847
Above Moderate-Income 2,190
Total 5,073
The project would not constitute a substantial rehabilitation, and therefore, the City would not receive any unit-count credit towards achieving its state mandated RHNA numbers.

However, the City would receive qualitative credit in the Annual Progress Report submitted to HCD each year, specifically for Program 17: Preservation and Housing Rehabilitation which addresses the policies below:
 Policy 1.5: Promote the development, conservation and rehabilitation of housing that is affordable to extremely low-, very low-, low-, and moderate-income households.

The Project will conserve and improve 116 low-income units for extremely low- and low-income households.
 Policy 2.2: Preserve and enhance the quality of Concord’s residential and mixed- use neighborhoods to ensure a comfortable, safe, healthy, and attractive living environment for all residents.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
As a part of the City’s Affordable Housing Agreement with Eden Housing, a maintenance mandate will be included. The Agreement will insure the proper upkeep, repair, and serviceability of the Project.
 Policy 2.4: Ensure that any development or redevelopment in Concord does not lead to the displacement of existing residents.

No tenants will be displaced and will be allowed to remain in their current income cohorts. Workforce housing will be preserved, and housing units for extremely low-income households will be introduced.

Timeline and Next Steps
A summarized timeline and next steps for Coral court and Sunset Pines Apartments, if the City is supportive, would be the following:
 On November 18, 2022, Eden submitted a purchase offer of $37.25 Million, conditional upon receiving City financing of $6.64 Million, and securing additional private financing.
 On December 5, 2022, Eden executed the purchase and sale agreement with the seller.
 Eden committed to the following:
o 60-day due diligence period, which ended February 4, 2023. o Concurrent agency approval period will end on May 31, 2023. The City approval of the $6.64 Million loan would need to occur by this date. o Closing deadline of July 3, 2023. The City’s loan documents would need to be executed and the City’s funds would need to be in escrow by this date.
 Upon closing, the City will record a long-term affordability deed restriction of 55 years as described in the Affordable Housing Preservation Section of this staff report.
 Eden will address any immediate repair needs.

Alternatives
Alternatively, City Council could choose not to award $6.64 Million in Low and Moderate Housing Funds to Eden Housing for the acquisition of the 116-unit Project comprising of Coral Court and Sunset Pines Apartments located at 1491 Detroit Avenue and 1770 Adelaide Street, respectively.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
If City funding is not awarded, Eden’s conditional purchase agreement will become null and void, and the Project will effectually be placed back on the market. The City will also be out of compliance with its SB 341 annual reporting requirements (see Financial Impact section below).

Financial Impact
There are no General Fund monies allocated. The $6.64 Million requested by Eden Housing would be granted through existing City Low and Moderate Income Housing Funds. As of June 30, 2023, the Fund will have approximately $7.8 Million, however there is no new revenue stream aside from interest earned on the unallocated balance, which has gradually decreased from $545,000 three years ago to $160,000 last year, as projects are awarded funding thereby reducing the principal. In addition, the Fund also intermittently receives, from prior loans, repayments ranging from $100,000 to $150,000, however, the annual amount received is unpredictable due to the nature of loan repayments. In fiscal year 2023, approximately $330,000 in the City’s First-Time Homebuyer loans are also earmarked to be repaid. Additionally, the predictable amount received from the Pavilion loan repayments has been included in the calculation of the remaining available funds, with the accelerated payment schedule proposed in the biennial budget. The Pavilion loan repayment schedule per fiscal year is as follows:
 FY23 $175k
 FY24 $140k
 FY25 $631k
 FY26 $845k
 FY27 $315k (fully repaid)
As a result, funding the Eden Housing project would leave approximately $1.2 Million in the fund for future affordable housing efforts, staffing costs, as well as funding administration of the City’s ongoing Affordable Housing programs.

Housing Successor Legislation and Reporting to the Department of Housing and Community Development (SB 341 Report)
Housing Successor legislation mandates that a minimum of 30 percent of the remaining funds be expended for the development of rental housing affordable to and occupied by households earning 30% AMI or less, referenced hereafter as the “30-30 Rule”, and no more than 20 percent of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60% and 80% AMI, referenced hereafter as the “20-80 Rule”. Funding the Eden Housing project will allow the City to maintain compliance with legislation and the annual reporting requirements covering a five-year reporting period for the City’s Low and Moderate Income Housing Fund.

City Council Agenda Report
Agenda Item No. 4.a
May 16, 2023
However, should the City choose not to fund the Eden Housing project, the City will be out of compliance with the 30-30 Rule as of the end of Fiscal Year 2022/2023.

According to the Housing Successor legislation, if the housing successor fails to comply with the 30-30 Rule during any reporting period, then the City will need to ensure that at least 50 percent of the remaining Low and Moderate Housing Asset Funds will be expended in each subsequent fiscal year for the development of rental housing affordable to, and occupied by, households earning 30% AMI or less until the housing successor demonstrates compliance the 30-30 Rule within a five-year reporting period.

The City would still be subject to the 20-80 Rule.

Environmental Determination
Pursuant to CEQA Guidelines Sections 15060(c), 15061(b)(2) and (3), 15378, and Public Resources Code Section 21065, funding of a proposal is not subject to environmental review under the California Environmental Quality Act (CEQA) of 1970, as amended, as it does not constitute a “project,” does not commit the City to a definite course of action, does not constitute discretionary approval of a specific project, and will not result in a direct or reasonably foreseeable indirect physical change in the environment, and in the alternative is exempt from CEQA. No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflects the City’s independent judgment and analysis. Individual projects will undergo CEQA analysis as necessary.

Public Contact
The City Council Agenda has been posted and notice of this meeting was sent by e-mail to all individuals on the housing interested parties list.

Attachments

1. Resolution authorizing a loan of $6.64 Million in Low and Moderate Income Housing Asset Funds to Eden Housing

2. Coral Court GIS Map

3. Sunset Pines GIS Map

4. Distance Map between Coral Court, Sunset Pines, and Virginia Lane

5. East Bay Housing Organizations (EBHO) Letter of Support

6. 2022 Maximum Income Limits

Res. No. 23-XX 1

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
A Resolution Authorizing a Loan of $6.64 Million in
Low and Moderate Income Housing Asset Funds to
Eden Housing to Preserve the Long-Term
Affordability, and for the Acquisition and Minor
Improvements of a 116-Unit Affordable Housing
Project Comprised of Coral Court Apartments, 1491
Detroit Avenue, Concord, and Sunset Pines
Apartments, 1770 Adelaide Street, Concord in
Exchange for an Agreement Restricting a Minimum
of 10 of the Units at 30% of the Area Median Income
and 10 Additional Units at 60% of the Area Median
Income.

Resolution No. 23-XX
/
WHEREAS, as of June 30, 2023, the City of Concord is projected to have $7.8 Million remaining in Low and Moderate Income Housing Asset Funds; and WHEREAS, the City Council Committee on Housing & Economic Development and City Council have directed staff to prioritize investing the Low and Moderate Income Housing Asset Funds in retaining affordability in existing multifamily complexes that are at risk of being sold to market-rate investors and are thereby likely to lose their naturally occurring affordability; and WHEREAS, in October of 2022, Eden Housing, a non-profit affordable housing provider, made the City aware of two market-rate complexes that are being sold off-market as part of a package deal for a total of 116 units: Coral Court and Sunset Pines Apartments located at 1491 Detroit Avenue and 1770 Adelaide Street, respectively; and
WHEREAS, on December 2, 2022, with approval from the City Manager, Eden Housing entered into a Purchase Agreement with the owner of Coral Court and Sunset Pines Apartments (the Project), with the condition that Council loan Eden $6.64 Million in Low and Moderate Income Housing Asset Funds; and
WHEREAS, the City’s $6.64 Million loan of Low and Moderate Income Housing Asset Funds will partially subsidize the cost of acquisition and minor improvement of the Project, as well as to preserve the long-term affordability of 20 units for a period of no less than 55 years, whereby 10 units will be made affordable to households earning 30 percent of the Area Median Income and 10 Attachment 1

Res. No. 23-XX 2
units will be made affordable to households earning 60 percent of the Area Median Income; and WHEREAS, the City’s loan of $6.64 Million in Low and Moderate Income Housing Asset Funds is leveraging additional affordable housing funding that allows Eden Housing to income- restrict for a period of no less than 55 years 94 units for workforce housing at 80% Area Median Income, and include two unrestricted managers units; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 1. Pursuant to CEQA Guidelines Sections 15060(c), 15061(b)(2) and (3), 15273, 15378, and Public Resources Code Section 21065, funding of a proposal is not subject to environmental review under the California Environmental Quality Act (CEQA) of 1970, as amended, as it does not constitute a “project,” does not commit the City to a definite course of action, does not constitute discretionary approval of a specific project, and will not result in a direct or reasonably foreseeable indirect physical change in the environment, and in the alternative is exempt from CEQA.

No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflects the City’s independent judgment and analysis. Individual projects will undergo CEQA analysis as necessary.

Section 2. The City Council hereby approves and authorizes $6.64 Million in Low and Moderate Income Housing Asset funds be loaned to Eden Housing for the purposes of: 1) partially subsidizing the acquisition Coral Court Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord; 2) make any identified minor improvements at the Project site; 3) income-restrict 20 of the 116 units, whereby 10 units at the Project would be restricted at 30 percent of the Area Median Income and 10 units would be restricted at 60 percent of the Area Median Income households; 4) leverage additional funds to finance the remaining 96 units whereby 94 would be income-restricted at 80% Area Median Income for workforce housing and include two unrestricted managers units; and 5) preserve the long-term affordability of the Project for an additional period of 55 years.

Section 3. The City Council authorizes the City Manager, or its designee, to enter into and

Res. No. 23-XX 3
execute the City’s Loan Agreement and any and all other documents required or deemed necessary or appropriate by the City Attorney to loan the $6.64 Million at a three percent (3%) interest rate to Eden Housing for their above stated purposes, and all amendments thereto (collectively, the “Coral Court and Sunset Pines Loan Documents”) and ensure that such agreements provide prioritization for meeting the lower AMI unit requirements with qualified individuals as units become vacant and meet all requirements of the City’s use of its Low and Moderate Income Housing Asset Funds.

Section 4. This resolution shall become effective immediately upon its passage and adoption and shall remain effective until amended, superseded, or repealed by a separate resolution adopted by the City Council.

PASSED AND ADOPTED by the City Council of the City of Concord on May 16, 2023, by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly and regularly adopted at a regular meeting of the City Council of the City of Concord on May 16, 2023.

Joelle Fockler, MMC
City Clerk
APPROVED AS TO FORM:

Susanne Meyer Brown
City Attorney

Attachment 2Coral Court Apartments

Attachment 3
Sunset Pines Apartments

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Attachment 5

30% AMI 50% AMI 60% AMI 80% AMI 100% AMI 110% AMI 120% AMI Extremely Low Very Low Lower Low Median Moderate Moderate 1 Person $30,000 $50,000 $60,000 $76,750 $99,950 $109,945 $119,950 2 Persons $34,300 $57,150 $68,580 $87,700 $114,250 $125,675 $137,100 3 Persons $38,600 $64,300 $77,160 $98,650 $128,500 $141,350 $154,200 4 Persons $42,850 $71,400 $85,680 $109,600 $142,800 $157,080 $171,350 5 Persons $46,300 $77,150 $92,580 $118,400 $154,200 $169,620 $185,050 6 Persons $49,750 $82,850 $99,420 $127,150 $165,650 $182,215 $198,750 7 Persons $53,150 $88,550 $106,260 $135,950 $177,050 $194,755 $212,450 8 Persons $56,600 $94,250 $113,100 $144,700 $188,500 $207,350 $226,200 Income Calculations: This information is based on amounts provided by HUD and CA Dept. of Housing and Community Development Department (HCD). It is updated annually in the spring. 60% =1.2 x 50% AMI. 110% is based on HCD's median. HUD/HCD provides 30%, 50%, 80%, 100% and 120% AMI. Please note, these are not simple mathematical calculations. *Based on Area Median Income (AMI) in the Oakland Metropolitan Statistical Area City of Concord
Maximum Income Limits (2022)*
Some affordable housing units are restricted based on income. The table below shows income limits for 2022 (effective May 13, 2022).

Household Size
Attachment 6

Preserving Long-Term Affordability
Coral Court & Sunset Pines Apartments
Concord City Council
May 16, 2023

Eden Housing has 55 years of experience
developing and operating affordable housing.

Eden Housing creates and sustains high-quality affordable housing communities that advance equity and opportunity for all.

OUR MISSION

Full Service Affordable Housing Provider
• Development
Build, acquire and preserve
properties
• Property Management
Manage 11,000+ apartments
housing 22,000+ residents
• Resident Services
Programs that enrich our
residents’ lives and build
community

Resident Services
• Referral Services
Referral hotline and
connections to programs
• Scholarship Program
Over 30 years, approx. $1
million awarded to 600
residents
• Eden Savers
Asset building program with
financial coaching and
savings matching

Acquire existing workforce housing leasing at
80% market rents and below.

Record a long-term affordability restriction that protects existing residents and allows future leasing at 80% area median income or below. Additionally, restrict 10 apartments at 30% and another 10 apartments at 60%.

NOAH PRESERVATION STRATEGY

Workforce Housing
Workforce housing (sometimes referred to as middle-
income or moderate-income housing) is housing for
individuals and families typically earning between 60%
and 120% AMI located near employment centers.

Examples include: teachers, police officers, hospital
support staff, service workers, etc.

These households typically earn too much to qualify
for deed-restricted affordable housing but too little to afford market-rate rents.

Housing Affordability by Occupation
$1,661
$1,911
$2,012
$2,434
$2,521
$2,987
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Automotive Mechanics
Food Service Managers
Vocational Nurses
Firefighters
Elementary School Teachers
Police Officers
Maximum rent is 30% of monthly paycheck. Data source BLS Wage Estimates (San Francisco-Oakland-Hayward MSA) for May 2022 $119,460
$100,830
$97,370
$80,470
$76,450
$66,450
30% AMI Rent 1BR 60% 80% 120%

De Anza Terrace – Acquired April 2022
• Off-Market
Had been previously
marketed and purchase offer
fell through
• Proximity
Adjacent to another Eden
property
• Risk Management
Strong operating history and
future recapitalization options

What Happens If We Don’t Preserve…
• Displacement
Rents quickly become
unaffordable and long-term
residents leave.
• Community Change
Adjacent properties begin
flipping.
• Housing-Jobs Imbalance
Essential workers cannot live
in the community. Spillover
effects of increased traffic
and parking demand.

What Happens If We Do Preserve…
• Stabilize Rents
Maintain rent levels, cap
rents at 30%, 60%, 80%.
• Long-Term Affordability
55 years minimum.
• City Preserves Workforce
Housing
Current residents are
shielded from economic
displacement, future essential
workers can find housing
near jobs.

116 apartments
Rents currently 53-86% of market. The City’s financing
prevents a private equity investor from purchasing as a “value-add investment opportunity,” which means rapidly increasing rents in order to earn a higher return of (typically) 14%+ on the equity investment

CORAL COURT AND SUNSET PINES

Amplifying the Impact of the City’s Funds

Prioritizing the Preservation Investment
• The Coral Court & Sunset
Pines Census Tract is a
California Highest Level
Census Tract for
displacement risk
• Apartment buildings in this
Census Tract are more
likely to experience larger
rent increases than the rest
of the City of Concord
• Source: Urban Displacement
Project

Coral Court & Sunset Pines Current Residents
Voluntary Survey Coral Court & Sunset Pines
# of Apartments 116
% Responded 70%
% Qualified ≤80% AMI 94%

New Affordability Levels
Coral Court Sunset Pines
1BR 2BR 1BR 2BR
30% AMI 3 1 5 1
60% AMI 3 1 5 1
80% AMI 37 1 45 11
STAFF 1 1
SUBTOTALS 43 4 55 14
TOTALS 47 69

Sunset Pines Rents – 2022
Apartment
Size
Rent Levels Average
Rent
30% Rent
Limit
60% Rent
Limit
80% AMI
Cap
1-Bedroom $1,588 lowest $1,970 $803 $1,607 $2,143
1-Bedroom $2,169 highest
2-Bedroom $1,697 lowest $2,191 $964 $1,929 $2,572
2-Bedroom $2,495 highest

Sunset Pines Projected Rent Differential
1,500
2,000
2,500
3,000
3,500
4,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
1 BR PRESERVATION 2 BR PRESERVATION
1 BR MARKET 2 BR MARKET

Preserving Housing & Resident Quality of Life
Coral Court Amenities – Leasing Website Sunset Pines Amenities – Leasing Website

+116 AFFORDABLE APARTMENTS
Coral Court Exterior – Leasing Website Sunset Pines Exterior – Leasing Website

Memorandum
DATE: May 16, 2023
TO: Honorable Mayor Hoffmeister and Members of the City Council FROM: Valerie J. Barone, City Manager
SUBJECT: Study Session on the Proposed Biennial Budget for Fiscal Years 2023-24 and 2024-25 and the Updated Long-Range
Financial Forecast
Report in Brief
This report presents the Proposed Biennial Operating Budget for Fiscal Years (FY) 2023- 24 and 2024-25 and the updated Long-Range Financial Forecast for the City of Concord.

Biennial Operating Budget: Our City is committed to strong fiscal stewardship, transparency, and accountability over taxpayer dollars. Working together, the City Council and City staff ensure our budget and financial policies reflect spending consistent with the community’s priorities. In general, the proposed budget has the following positive impacts:
 Preserves vital community services by maintaining current service levels in most service areas, and enhancing them in a few-- sewer maintenance, general City roadway cleanups, front counter access at the Police Department, and crime analysis.
 Is balanced, relying on the use of $10.5 million of one-time dollars from the fiscal stability fund Council created for this purpose at the mid-year budget update in April 2023.
 Maintains a 30% General Fund Reserve at the end of both Fiscal Years.  Continues to invest approximately half of the City’s Measure V1 revenues to support essential services, as was the City Council’s commitment to the community at the time of passing Measure V.
1 Measure V is a voter approved one-cent transactions and use tax and is intended to preserve City services.

Originally approved as Measure Q by voters in November 2010 with a 5-year sunset, an extension of the tax measure was ratified on the November 2014 ballot and the measure was subsequently replaced with Measure V in November 2020 and became effective on April 1, 2021.

4.b4.b4.b4.b4.b4.b4.b4.b

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 2 -
Long-Range Financial Forecast: The City’s Long-Range Financial Forecast has been updated to reflect the prior year’s actual results, the FY 2022-23 approved budget, and the FYs 2023-24 and 2024-25 proposed budget. The forecast models a fiscally stable future for Concord, although it also indicates the necessity of the City Council continuing to restrain program growth that requires additional staffing as inflation and employee wage and benefit costs are creating significant upward pressure on the proposed budget’s expenditures.

Recommended Action
Receive information regarding the Proposed Biennial Operating Budget for FYs 2023-24 and 2024-25 as well as the proposed General Fund Long-Range Financial Forecast and provide direction to staff for the development of the final budget.

Specifically provide feedback to staff on the following, for action as part of the adoption of the General Fund Operating Budget at the June 13 Council meeting:
 Direction on the City’s General Fund Operating Budget for FYs 2023-24 and 2024-25;
 Direction on changes to the pay of Councilmembers, to be effective after the November 2024 election (Note this would return to Council in the Fall of this year—rather than as part of the June 13 meeting);
 Direction on funding a $530,000 loan from the General Fund to the Local Reuse Authority;
 Direction on accelerating repayments from the Pavilion Fund to the Housing Fund once the loan to the Sewer Fund is fully repaid;
 Direction on the following actions related to Community Services/Housing Funds:
o Allocate $100,000 of the Concord Pleasant Hill Health Care District (CPHHCD) reserves to the Child Care Grant Program so the final two years of the current three-year grant cycle is adequately funded; o Allocate $210,000 of CPHHCD available fund balance for one-time grant awards in FY 2023-24;
o Increase the annual grant-award amount the CPHHCD administers to $320,000 (from $160,000);
o Reimburse $334,957 to the Housing Successor Low to Moderate Affordable Housing Fund from the Inclusionary Housing Fund; o Transfer the City’s First-Time Homebuyer Program from the Housing Successor Low to Moderate Affordable Housing Fund (Fund 245) to the Inclusionary Housing Fund (Fund 251);
 Acknowledgement of the Golf Course Fund’s debt to the General Fund and support for the staff recommendation to delay consideration of repayment until

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 3 -
more is known on the Concord Naval Weapons Station (CNWS) redevelopment project’s impacts and mitigations on the golf course;
 Direction on the Cannabis Community Benefit fund:
o Consider investing $14,000 into the One Day at a Time youth empowerment program for next fiscal year or the next two fiscal years; o Establish a competitive grant program, supported by the Community Services Commission and staff, with final approvals being made by Council; and
 Direction on the clean up to Policy and Procedure No. 168: Fund Balance Reporting

REPORT ORGANIZATION
This memo is divided into five chapters: Background, Proposed Budget for FYs 2023-24 and 2024-25, General Fund Long-Range Financial Forecast, Policy and Procedure No. 168, and Conclusion. Each chapter is divided into numerous sections. An index to guide you through this report is provided below.

I. BACKGROUND

1. Economic Information (Pg. 4)

2. Biennial Budgeting Process (Pg. 4)

3. Council’s Priorities for FYs 2023-24 and 2024-25 (Pg. 5)

4. Historical Staffing (Pg. 6)
II. PROPOSED OPERATING BUDGET FOR FYs 2023-24 and 2024-25

1. Proposed Budget for FYs 2023-24 and 2024-25 Compared to the Current FY 2022-23 Budget (Pg. 8)

2. General Fund Revenues (Pg. 9)

3. General Fund Expenditures (Pg. 18)
a. Council Compensation Discussion (Pg. 21)

4. General Fund Reserves (Pg. 29)

5. Loan to Support Reuse Planning (Pg. 29)

6. Other Funds (Pg. 30)

7. Measure V Oversight Committee Findings (Pg. 34)

8. Community Services/Housing Funds (Pg. 34)

9. Golf Course Loan from General Fund (Pg. 37)

10.Cannabis Community Benefit Fund (Pg. 38)

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 4 -
III. GENERAL FUND LONG-RANGE FINANCIAL FORECAST (Pg. 40) IV. POLICY AND PROCEDURE NO. 168: FUND BALANCE REPORTING (Pg. 42) V. CONCLUSION (Pg. 42)
I. BACKGROUND

1. Economic Information
The City of Concord’s diverse economy is supported by approximately 3.1 million square feet of Class A office space, 7 million square feet of industrial space, and four regional shopping centers, along with a variety of other commercial spaces, making Concord the largest employment center within Contra Costa County.

The COVID-19 pandemic will have a lasting impact on the office sector. In the new work- from-home environment, companies are choosing to downsize or release their leases altogether, resulting in a current vacancy rate of 22% as of April 2023. The retail sector has largely recovered and is currently at 4% vacancy, while the manufacturing sector remained strong throughout and is currently only 1% vacant.

According to the California Employment Development Department, Concord registered a

3.6% non-seasonally adjusted unemployment rate for February 2023. Concord is outperforming the county, state, and national unemployment rates of 3.9%, 4.8%, and

3.9% respectively.

The Concord single family housing market continues to improve year over year. The median sale price of a single family home in Concord for 2022 was $830,000; this represents a $30,000 (3.8%) increase from one-year prior, according to the City’s property tax consultant, HdL Coren & Cone.

While the State of California is facing a significant budget deficit, it is primarily due to the volatility of income tax revenues. The City of Concord will experience increased revenues over the next two years, while facing a softening of its sales tax revenue over the next year and a half.

2. Biennial Budgeting Process
The City continues to use a biennial process for the operating and capital budgets.

Biennial budgeting refers to the practice of developing a budget every two years. Under biennial budgeting, the City of Concord continues to operate on a July–June annual fiscal year. The public and City Council continues to receive annual mid-year updates in February/March as well as a mid-cycle review approximately 12 months after the initial adoption of the biennial budget.

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 5 -
Biennial budgeting allows the City to use its human resources more efficiently and reallocate resources to the capital budgeting process during the off cycle year. Below is a summary of the budget actions that will be before the City Council over the next two years under the biennial budgeting process.

Budget Actions
 June 2023
o Adoption of Biennial Operating Budget for FYs 2023-24 and 2024-25 o Mid-Cycle Review of the Capital Budget for FY 2023-24 and approval of any modifications
 February/March 2024
o Mid-Year Operating and Capital Budget Review
 June 2024
o Mid-Cycle Review of the Operating Budget for FY 2024-25 and approval of any modifications
o Adoption of Biennial Capital Budget for FYs 2024-25 and 2025-26  February/March 2025
o Mid-Year Operating and Capital Budget Review
 June 2025
o Adoption of Biennial Operating Budget for FYs 2025-26 and 2026-27 o Mid-Cycle Review of the Capital Budget for FY 2025-26 and approval of any modifications

3. Council’s Priorities for FYs 2023-24 and 2024-25
At Council’s annual priority setting workshop held in March 2023, Council determined its main priorities for FY 2023-24. Council maintains the existing organizational focus on the following (in no priority):
 fiscal stability and economic development,
 quality of life,
 public safety,
 roadway/infrastructure maintenance,
 customer service, and

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 6 -
 being a desirable workplace–employee success and organizational efficiency.

The Council further established four Tier 1 Priority Goals for year one of the two-year budget, FY 2023-24. (The annual goals for FY 2024-25’s will be established by Council in the spring of 2024 and incorporated into the budget at the mid-cycle review.) Work on all of the priorities below is in process.

Fiscal Year 2023-24 Tier 1 Priority Goals
 Concord Naval Weapons Station – Complete the process to identify and enter into an ENA with a Master Developer team by the end of 2023 and begin work on the Specific Plan and CEQA documents, with a goal of completing both by 2026.  Implementation of the Housing Element Update – The recently adopted City of Concord Housing Element Update has identified over 100 programs of which 16 are targeted for completion and another 19 will be in process by the end of Fiscal Year 2023-2024. Compliance with the timeframes identified in the HEU will be monitored by the State.
 Completion and Implementation of the Homeless Strategic Plan – Staff initiated development of a Homeless Strategic Plan in the current fiscal year. It is targeted for completion prior to the end of this calendar year. Council continues to recognize the development of a policy vision for this critical community issue as a major priority. Once complete the organization will transition to implementing the Plan.
 Implementation of ARPA Funded Projects – The Council distributed $7 million of American Rescue Plan Act (ARPA) funds to 22 non-profit organizations, each having measurable outcomes for use of the funding. Additionally, Council allocated $6.5 million for city-initiated projects and $500k for special event support. As ARPA funding has created a unique opportunity, there are various requirements related to timing and Council wants to assure that the organization and all grantees meet all Federal mandates.

4. Staffing Levels
The City of Concord’s staffing levels remain at historical lows. At its peak, the City had 529 employees in 2003-04. Since then there were major reductions in staffing made during the Great Recession and again at the beginning of the recession caused by the Covid-19 pandemic. This information is presented in the chart below. Within this staff report, there is a request to add nine positions back into the City’s budget, these are discussed later in this report. Even with these reinstated positions, staffing levels remain 107 below the staffing high of 2003-04.

Additionally, during the March 11, 2023 goal setting workshop, Council requested a report from each department related to the Department Heads’ desired staffing levels.

This information is available as Attachment 1 to this report. Note: it is not discussed within this report because resources do not exist to effectuate addressing these staffing

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 7 -
desires. None of the positions included in the memorandums are proposed as a part of this budget.

Table 1 shows staffing levels compared to population since 2002. The table shows that while the population has increased 2% since 2002, staffing has decreased 20%.

Table 1: Full-time Positions vs. Population
2002-03 525 123,935
2003-04 529 124,856
2004-05 514 124,798
2005-06 510 124,436
2006-07 501 125,203
2007-08 504 123,776
2008-09 498 124,599
2009-10 415 125,864
2010-11 393 122,676
2011-12 391 123,206
2012-13 387 123,812
2013-14 392 124,656
2014-15 403 126,069
2015-16 411 128,280
2016-17 418 128,370
2017-18 424 129,493
2018-19 426 129,889
2019-20 418 129,453
2020-21 383 124,755
2021-22 405 123,634
2022-23 413 125,000*
2023-24 422 126,250*
Fiscal Year FTE Population
*Estimated population
Additionally, Council requested to see historical staffing levels by department. These are shared in Attachment 2.

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 8 -
II. PROPOSED BIENNIAL OPERATING BUDGET
FOR FYs 2023-24 and 2024-25
What follows is a summary of the City’s proposed FYs 2023-24 and 2024-25 General Fund budget.

1. Proposed Biennial General Fund Budget for FYs 2023-24 and 2024-25 Compared to the Current FY 2022-23 General Fund Budget
The following table provides a comparison of the biennial General Fund budget for FY 2023-24 and FY 2024-25 to the FY 2022-23 budget. Each major revenue and expenditure category is discussed in detail later in this report.

Table 2: Proposed Biennial General Fund Budget for FYs 2023-24 and 2024-25 Compared to the Current FY 2022-23 General Fund Budget
FY 2022-23
Budget
FY 2023-24
Proposed
Budget
Difference
FY 2024-25
Proposed
Budget
Difference

RESOURCES
Regular Revenue* 104,916,000 109,173,000 4,257,000 111,985,000 2,812,000 Measure V - Support of Operations
and Council Priorities 12,422,000 16,102,000 3,680,000 16,898,000 796,000 FY 2021-22 Budget Residual 5,070,000
Total Resources 122,408,000 125,275,000 128,883,000

APPROPRIATIONS
Operating Expenditures 117,791,000 127,406,000 9,615,000 133,303,000 5,897,000 CCRS Mid-Year Adjustment** 2,900,000
FY 2021-22 PO Rollovers*** 1,717,000
Total Appropriations 122,408,000 127,406,000 133,303,000 Use of Reserves - 2,131,000 4,420,000 Deposit to Reserves to Cover
Expenditure Growth**** 2,576,000 1,373,000
Use of Fiscal Stability Fund***** 4,707,000 5,793,000 Ending Reserve Percentage 30% 30% 30%
*Excludes Measure V revenue
**City of Concord Retirement System (CCRS) closed in 1993 when the City transferred current employees to CalPERS
***PO Rollovers are unused encumbrance balances remaining at the end of a fiscal year that are rolled forward to the new fiscal year
****As expenditures grow, additional funds need to be reserved to maintain a 30% reserve *****A $10.5M fiscal stability fund was approved by City Council at the April 4, 2023 Council meeting

City Council Agenda Report
Agenda Item No. 4.b
May 16, 2023
_________________________________________________________________________ - 9 -
At the Mid-Year budget update on April 4, 2023, City Council approved assigning $10.5 million of FY 2021-22 budget residual to a fiscal stability fund to be used over four years (FY 2023-24 through FY 2026-27) to fill the gaps between revenue and expenditures, allowing the City to maintain budget stability and a 30% General Fund Operating Budget Reserve. Those Projections were based on the City’s long-range forecast that was last updated in January 2023. Staff has since updated the long-range forecast with the proposed general fund budget for FYs 2023-24 and 2024-25, and the proposed expenditures are approximately $3.0 million more in each of the two fiscal years than what was in the forecast presented at mid-year, mainly due to personnel cost increases, increases in contracts, such as the Axon police technology contract, and general inflationary pressures contributing to the rise in costs of goods and services. Beyond these two fiscal years, the gap between revenues and expenditures narrows as wage increases beyond the current approved labor agreements reset to the standard 2% in the long-range forecast and recovery from a predicted 1.5-year minor sales tax recession occurs. Therefore, the timing of the use of the fiscal stability reserve fund has changed, however, the end result is similar to that projected during the mid-year budget update.

Staff proposes that the City use $4.7 million in FY 2023-24 and $5.8 million in FY 2024- 25 of the fiscal stability fund to close the gap between revenues and expenditures. The General Fund reserves for each of the next two budget years would remain at 30% and then drop slightly to 29% for FYs 2025-26 and 2026-27, returning to 30% in FY 2027-28 and beyond.

2. General Fund Revenues
In FY 2023-24, the total increase in recurring General Fund revenue is projected to be $7.7 million and $3.6 million in FY 2024-25. As shown in Table 3 (below), sales tax is expected to decrease $1.1 million (compared to the FY 2022-23 budget) due to the projected recession in FY 2023-24 and increase $1.4 million in FY 2024-25 as recovery from the recession is projected to begin. The increase in property tax is approximately $2.0 million (compared to the FY 2022-23 budget) and increases an additional $1.0 million in FY 2024-25. The increase in charges for services is $0.67 million in FY 2023- 24 and $0.23 million in FY 2024-25.

The City has historically relied on Measure V revenue to support vital services, invest in roadways, infrastructure maintenance, and other high-priority community projects. This approach continues forward.

In the proposed General Fund budget for FY 2023-24, the City expects to receive $32.2 million in Measure V revenues and relies on $16.1 million of that revenue to support General Fund operations and Council Priorities. In FY 2024-25, the City expects to receive $33.0 million in Measure V revenues and relies on $16.9 million of that revenue to support General Fund operations and Council Priorities.

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These revenues and uses of Measure V have been reviewed with the Measure V Committee, which support this budget approach, as discussed in more detail in Section 7 of this report.

The following table provides a General Fund Operating Budget Revenue Summary.

Table 3: General Fund Operating Budget Revenue Summary
FY 2022-23
Adjusted
Budget
FY 2023-24
Proposed
Budget
Difference
FY 2024-25
Proposed
Budget
Difference
Total Recurring Revenue
(excluding Measure V) $104,916,000 $109,173,000 $4,257,000 $111,985,000 $2,812,000 Measure V Support of
Operations and Council
Priorities
$12,422,000 $16,102,000 $3,680,000 $16,898,000 $796,000 Percent of Total 11% 13% 13%
Total General Fund
Operating Budget Revenue $117,338,000 $125,275,000 $7,937,000 $128,883,000 $3,608,000 Sales Tax $42,000,000 $40,946,000 -$1,054,000 $42,317,000 $1,371,000 Percent of Total 36% 33% 33%
Property Tax $31,907,000 $33,865,000 $1,958,000 $34,865,000 $1,000,000 Percent of Total 27% 27% 27%
Charges for Services $9,649,000 $10,317,000 $668,000 $10,544,000 $227,000 Percent of Total 8% 8% 8%
Major Revenue (Non-Measure V) Sources*
*Only the major revenue sources of property tax, sales tax and charges for services are shown. Other revenue categories are shown and analyzed later in this report.

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The following charts show the projected General Fund revenue by category in FYs 2023- 24 and 2024-25 including Measure V revenue used for operations and Council Priorities.

This portrait demonstrates that revenue from Measure V continues to be a vital support to the City’s operating budget, which includes all essential services such as 911, city parks, youth sports and senior services.

Chart 1: FY 2023-24 Preliminary General Fund Revenue by Category

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Chart 2: FY 2024-25 Preliminary General Fund Revenue by Category Further explanation and analysis of the City’s General Fund revenues by category follow:
a. Sales Tax

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The original Bradley-Burns 1% sales tax (non-Measure V) comprises approximately 33% of General Fund revenue (excluding Measure V revenue). As shown in the above graph, FY 2023-24 and 2024-25 sales taxes are projected to be $40.9 million and $42.3 million. This growth represents a 2.5% decrease as compared to FY 2022-23 projected sales tax revenues due to a projected recession in FY 2023-24 and a 3.3% increase in FY 2024-25 as recession recovery begins.
b. Property Tax
Property taxes represent approximately 27% of General Fund revenue. The City of Concord continues to see property taxes rise as a result of increased prices.

Projected property tax revenue for FY 2023-24 is estimated to be $33.9 million, a

6.1% increase over the projected amount for FY 2022-23. This estimate includes near-full recovery of Proposition 82 reductions.
2 Proposition 8 is a constitutional amendment that allows a temporary reduction in assessed value when real property suffers a decline in value. A decline in value occurs when the current market value of real property is less than the current assessed (taxable) value as of January 1 of each year.

A property that has been reassessed under Proposition 8 is then reviewed annually to determine its lien date value. The assessed value of a property with a Proposition 8 value in place may increase each lien dated (January 1) by more than the standard two percent maximum allowed for properties assessed under Proposition 13; however, unless there is a change in ownership or new construction, a property’s assessed value can never increase above its base year value after adjusting for the annual 2% increase.

During the great recession approximately 46 % of the City’s single family residential parcels were reassessed under this program.

Over time, all but a few properties have returned to their Prop 13 allowed values and those remaining properties are anticipated to recover in the near term.

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In FY 2024-25, property tax revenue is projected to increase 3.0% over FY 2023- 24 for a total of $34.9 million. This estimate assumes a 2.0% inflation factor allowed under Proposition 133 and an additional 1.4% related to additional value from property sales.
c. Charges for Services (Permits, Plan Review Fees, Inspection Fees, and User Charges)
Charges for Services, Licenses, and Permits are projected to increase 6.9% ($0.67 million) in FY 2023-24 and by 2.2% ($0.23 million) in FY 2024-25, as Recreation Services are slowly able to return to pre-pandemic levels. Additionally, Community Development is projecting a slowdown in Building and Planning activity, therefore overall revenues in this category are not projected to increase at the same rate they have in past years, excluding the pandemic. Total projected revenue in this category in FY 2023-24 is $10.3 million and $10.5 million in FY 2024-25.
3 In 1978, California voters passed Proposition 13, which significantly lowered property taxes on homes, businesses and farms.

Under Proposition 13 tax reform, property tax value was rolled back and frozen at 2% per year as long as the property is not sold. Once sold, a property is reassessed at 1% of the sales price, and the 2% yearly cap becomes applicable in future years.

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d. Franchise Fees
The overall franchise fees category is estimated to increase by 5.1% in FY 2023- 24 to $8.6 million. In FY 2024-25, total franchise fee revenue is projected to remain flat compared to FY 2023-24.
e. Business Licenses

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Business Licenses are estimated to increase by 6.1% in FY 2023-24 to $3.8 million (from $3.6 million in FY 2023-24) and increase by 2.7% to $3.9 million in FY 2024-25 as recovery from the pandemic continues.
f. Transient Occupancy Tax (TOT)
Transient Occupancy Taxes are estimated to remain flat in FYs 2023-24 and 2024-25 at $2.5 million (FY 2022-23 is slightly over-budgeted compared to actuals) but are still down $0.4 million compared to the pre-pandemic level of $2.9 million in FY 2018-19. The budget includes projected revenue from the new Hampton Inn, scheduled to open in the summer of 2023.

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g. Other Revenue
“Other Revenue” includes one-time special revenue, fines and forfeitures, inter- governmental, and inter-fund charges, among others. The above graph shows volatility in this segment because of the temporary or one-time nature of many of the revenues accounted for in this category. The spike in FY 2019-20 was due to revenue received from the sale of Successor Agency land.

In the proposed FY 2023-24 budget, this category increases by $2.0 million to approximately $9.2 million mainly due to new Cannabis Business Revenues that were not budgeted in previous years, a rise in interest revenue, and an increase in public safety sales tax augmentation4.
4 This is the Prop 172 public safety tax approved by voters in 1993 as a “cushion” to the ERAF (Educational Revenue Augmentation Fund) shifts that were approved in the 1992 State Budget.

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3. General Fund Expenditures
Table 4 shows the changes in total expenditures from the FY 2022-23 budget to the proposed biennial budget for FYs 2023-24 and 2024-25.

Table 4: General Fund Expenditure Summary
FY 2022-23
Adjusted Budget
FY 2023-24
Proposed Budget Difference FY 2024-25
Proposed Budget Difference
Expenditures
Operating Expenditures $117,791,000 $127,406,000 $9,615,000 $133,303,000 $5,897,000 CCRS Mid-Year Adjustment 2,900,000
FY 2021-22 PO Rollovers 1,717,000
Total Expenditures $122,408,000 $127,406,000 $133,303,000 Expenditure Groups
Full time Salaries $42,036,000 $46,883,000 $4,847,000 $49,972,000 $3,089,000 Percent of Total 36% 37% 37%
Part time Salaries $1,214,000 $1,618,000 $404,000 $1,667,000 $49,000 Percent of Total 1% 1% 1%
Fringe Benefits* $42,300,000 $43,323,000 $1,023,000 $44,409,000 $1,086,000 CCRS Mid-Year Adjustment 2,900,000
Total Fringe Benefits $ 45,200,000 $ 43,323,000 $ 44,409,000 Percent of Total 36% 34% 33%
Operating Expenses $13,413,000 $16,676,000 $3,263,000 $17,218,000 $542,000 FY 2021-22 PO Rollovers 1,717,000
Total Operating Expenses $15,130,000
Percent of Total 11% 13% 13%
Internal Service Charges $17,156,000 $17,996,000 $840,000 $19,081,000 $1,085,000 Percent of Total 15% 14% 14%
Transfer Out $1,672,000 $910,000 ($762,000) $956,000 $46,000 Percent of Total 1% 1% 1%
*Includes medical, vision, dental, life insurance, disability insurance, pension contributions and payments, deferred compensation, social security, and workers’ compensation.

For FY 2023-24, total General Fund expenditures will increase by $9.6 million, or 8.2%, to $127.4 million compared to FY 2022-23. Expenditure increases are due to general inflationary pressures contributing to the rise in costs of goods and services, part-time and overtime increases, and wage adjustments as explained in further detail below under the section on Wage Adjustments.

For FY 2024-25, total General Fund expenditures will increase by $5.9 million, or 4.6%, to $133.3 million compared to FY 2023-24. Expenditure increases are due to general inflationary pressures contributing to the rise in costs of goods and services, Council- approved additions, such as the Axon police technology contract, and wage adjustments as explained in further detail below under the section on Wage Adjustments.

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The following charts show General Fund expenditures by department in FYs 2023-24 and 2024-25.

Chart 3: FY 2023-24 Preliminary General Fund Expenditures by Department

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Chart 4: FY 2024-25 Preliminary General Fund Expenditures by Department Significant changes to the adopted General Fund expenditure budgets for FYs 2023-24 and 2024-25 are described in more detail below.

Wage Adjustments
City Council approved new Memorandums of Understanding (MOU) on December 13, 2022, for the Concord Police Association (CPA) and the Concord Police Managers’ Association (CPMA) employees. The CPA MOU included a 5% market equity increase starting in January 2023 to aid in recruiting new and lateral Police Officers and Police Sergeants by bringing the City’s pay scale for these classifications up to market.

Additionally, 5% wage increases start in July each year beginning July 2023 through July 2024. Beyond the two-year budget period we are discussing tonight, but important to note, is an additional base wage increase of 4% and a market equity increase of 2% in July 2025. The CPMA MOU included reinstating the employer-paid 401(k) contribution of 3% of base wage plus a flat $2,000 annually that had been previously suspended, 5% wage increases starting in July each year beginning July 2023 through July 2024, and an additional wage increase of 4% in July 2025. These compensation adjustments for FYs 2023-24 and 2024-25 have been included in the proposed budget.

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The City is currently in collective bargaining with two of the City’s represented units to negotiate successor Memorandum of Understanding (MOUs) to the current contracts that expire on June 30, 2023. However, the City’s long-range financial forecast incorporates an assumed 3% labor increase in FYs 2023-24 and 2024-25, and 2% thereafter. Therefore, the budget incorporates general wage increases of 3% for all full- time employees (except as noted for agreements with CPA/CPMA above) in each of the two fiscal years.

City Council Compensation
Council has directed staff to bring forward information on Council compensation with each two-year budget, as a means of avoiding long periods of no adjustments followed by significant increases. State law regulates maximum compensation for councilmembers and when those adjustments can be effective. Currently, Council compensation is $1,433.12 per month, or $17,197.44 per year, an amount approved in March 2022 for implementation following the general election of November 2022. This represented a three percent (3%) and three percent (3%), not compounded, increase from their prior rate of compensation of $1,352 per month, implemented after the November 2018 general election.

According to State law, Council salaries may not be adjusted by more than five percent (5%) per calendar year since the salary was last established, and cannot be compounded. Furthermore, the change in compensation may not apply until after a change in term of office, or following the general election of November 2024. Therefore, the maximum amount the Council’s salary could be increased is 10%, or $143.31 per month, and would be effective the first full pay period following certification of the November 2024 election (second half of FY 2024-25).

For context, Local 29, Teamsters, and Confidential employees received a 3% increase and Executives and Managers received a 2% increase in FY 2022-23. The budget assumes a 3% increase for FY 2023-24 and FY 2024-25 for those groups not under contract.

If the City Council would like to adjust its salary by any amount (up to the maximum allowed increase of $143.31 a month), staff requests that Council determine an amount, which will be incorporated into the second half of Year 2 of the biennial budget, and an ordinance to amend Council compensation will be brought back for introduction along with adoption of the FYs 2023-2024 and 2024-25 biennial budget.

Fringe Benefits
Fringe Benefits increase $1.0 million or 2.4% from FY 2022-23 to FY 2023-24 and $1.1 million or 2.5% from FY 2023-24 to FY 2024-25. Fringe Benefit costs shown in Table 4 include the costs of Health Insurance for current employees, Post-Employment Healthcare, CalPERS Retirement ($3.1M increase in FY 2023-24 and $0.65M increase in FY 2024-25), City of Concord Retirement System (CCRS), Social Security, Workers’ Compensation and other benefit costs. The increase in costs associated with fringe

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benefits is primarily driven by significant increases in state-mandated CalPERS contributions and the City’s self-insured Workers Compensation Fund. See below for more information about Post-Retirement Healthcare, CalPERS, and CCRS.

Post-Employment Obligations
The Proposed Biennial Budget incorporates full funding of the Actuarial Determined Contributions (ADC) for all of the City’s retiree benefits including CalPERS pension, City of Concord Retirement System (CCRS), and retiree medical programs. Each is discussed briefly below, with more detail contained in Attachment 6.

California Public Employees' Retirement System (CalPERS):

The City provides retirement benefits for employees through its participation in the California Public Employees’ Retirement System (CalPERS). This is a defined benefit pension plan funded by a combination of employee contributions that are set by statute and through negotiations; employer contributions that fluctuate from year to year based on an annual actuarial valuation performed by CalPERS; and investment earnings. The CalPERS required annual pension costs consist of two components: 1) Normal cost representing the present value of benefits that pension system members earn during the valuation year and 2) Unfunded Accrued Liability (UAL).

This pension system’s rates have been on the rise over the last decade based on changes in CalPERS assumptions and Board policies to make the pension system more sustainable, as well as lower than expected investment returns. While the Public Employees’ Pension Reform Act (PEPRA) that went into effect in 2013 substantially reduced pension benefits for new CalPERS employees hired after January 1, 2013, and will result in lower, more sustainable pension costs for the City, it will take 8 to 10 years before the City will experience lower pension costs.

According to the most recent CalPERS Valuation reports received in August 2022, the funded status of the City’s Plans was 71%. However, as of FY June 30, 2022, CalPERS experienced a loss of negative 6.1% compared to their expected return of 6.8%. As a result, there will be a new UAL layer reflecting a 12.9% negative variance. Because of the timing of when CalPERS values and reports their analysis, it is usually two years behind. So the report to be received later this year uses valuation data as of June 30, 2022 for setting rates in FY 2024-25. As a result of the investment loss as of June 30, 2022, projected costs will increase and funded status will decrease when the next CalPERS Actuarial Valuation report comes out in late summer 2023.Table 5 reflects the expected increase in annual UAL contributions as a result of this loss. Table 6 reflects the anticipated funded status incorporating the 6.1% loss AND assumes CalPERS earns the assumed rate of return of 6.8% as of June 30, 2023.

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Table 5: Projected UAL Payments Incorporating FY22 Loss

17.3 16.9

16.1 17.0

16.5 15.2

14.1 11.9

10.4 8.2

8.8 0.0

19.5 21.4

23.7 23.1

21.9 20.7

18.5 17.0

14.9 15.4

0.0 5.0

10.0 15.0

20.0 25.0
'24 '26 '28 '30 '32 '34 '36 '38 '40 '42 '44 '46
CalPERS Unfunded Actuarial Liability Payment Schedule
Current Payment vs Payment with 2022 Loss
(in $ millions)
Current UAL Payment Projected UAL Payment

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Table 6: Revised Funded Status Incorporating the 6.1% CalPERS Investment Loss in FY 2021-22
Total Liability is $624.8 million, 63% funded
$ 391.1
Million
$ 233.8
Million
- 100.0 200.0 300.0 400.0 500.0 600.0
in $ Millions
Funded Unfunded

CalPERS phases in the impact of investment losses over five years so the full impact of the FY 2022 investment loss will not be fully captured in the City’s CalPERS rates until FY 2028-29. The proposed biennial budget and long-range forecast both incorporate the projected cost increases as a result of the FY 2022 loss.

Budgeting for these costs has been and will continue to be a challenge for the foreseeable future. According to the new projection, the City’s CalPERS pension costs will not drop down to FY 2022-23 cost levels until 2042. The City will need to continue to budget for these annual costs as well as any additional costs that are created when actuarial assumptions are not met.

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City of Concord Retirement System (CCRS):

CCRS is the City’s pension system that closed in 1993 when the City transferred current employees to CalPERS. Those that remain in CCRS are those employees who were already retired and receiving benefits and those former employees that vested in CCRS but no longer work for the City of Concord.

Fully funding the CCRS annual Actuarial Determined Contribution (ADC) for the City’s closed pension system costs approximately $2.4 million annually, as determined by an independent actuarial report. Full funding is incorporated into both years of the base budget as well as into the long-range forecast.

Post-Employment Retiree Medical (also known as Other Post-Employee Benefits (OPEB)):

The City offers two tiers of retiree medical insurance through CalPERS. For employees hired before summer 2016, the City contributes a fixed contribution amount depending on level of coverage. Those employees hired after summer 2016 received the PEMHCA minimum (established annually by CalPERS) upon retirement from the City of Concord.

Fully funding the City’s ADC for retiree medical benefits costs approximately $3.7 million annually, based upon an independent actuarial report. Full funding is incorporated into both years of the base budget as well as into the long-range forecast.

Attachment 6 provides additional detail on the City’s personnel liabilities and provides various options the Council could consider to pay down these unfunded liabilities faster than is scheduled with only making the annual ADC for each plan. Staff is recommending Council continue the current practice of prioritizing the use of budget residual towards making additional discretionary payments (ADP) until 90% funded status is achieved.

Staff is not recommending implementing any additional strategies at this time as the City’s projected operating budget does not have the resources to do so.

Personnel / Organizational Changes
Table 7 shows full-time positions by department for the FY 2022-23 budget compared to the biennial budget for FYs 2023-24 and 2024-25.

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Table 7: Proposed Full-time Positions
Department FY 2022-23 FYs 2023-24/2024-25 Difference
City Attorney 5 5 -
City Council/Treasurer 6 6 -
Community Development 51 53 2
Economic Development and Base Reuse 5 5 -
Finance 19 20 1
Human Resources 9 9 -
Information Technology 14 14 -
Office of the City Manager 10 10 -
Police 193 194 1
Public Works (includes Storm Water and Sewer) 87 92 5
Recreation Services 14 14 -
Total Full-Time 413 422 9
Nine full-time staff members are proposed to be added to the budget as described below:

Community Development Department
1 FTE Assistant Engineer: $177,800 annual cost for salary and benefits, 100% offset by plan check revenues
The Current Development Section of the Engineering Division for the Community Development Department has experienced across-the-board increases in workload including, in particular, increased demand for permits from utility companies. The demand for engineering plan check for mid-sized projects has also been increasing. This level of plan check is more complex than routine items handled by permit technicians, but less complex than projects reviewed by an experienced professional engineer or consultant. Staffing for this function currently consists of one Senior Engineer, one Associate Engineer, and two Permit Technicians.

Adding the new position will better support the City’s residents, businesses, and utility partners. The position will be able to provide support and coverage to the permit technicians and the permit center counter, allowing the Associate and Senior Engineers to focus on the larger more complex projects and coordination efforts between Engineering projects and other Divisions. The new position will also reduce reliance on more expensive plan check consultants, add consistency in reviews for small projects, and provide greater stability and customer support capacity to the Current Development - Engineering Section. A dedicated team of five staff for this Section will improve the day- to-day operations and facilitate collaborating on new ideas, creating efficiencies, and documenting processes for succession planning. This proposal has been determined to be cost neutral as the additional staff costs will be offset through increased plan check revenue for Plan Check Engineering and Encroachment and Plan Check line items. Last year’s revenue for those two specified line items, which reflected the added plan check

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workload being handled through outside consultants, exceeded the projected budget by a total of $220,000 and thereby justifying the fully loaded cost of the proposed Assistant Engineer.
1 FTE Administrative Clerk II: $100,600 annual cost for salary and benefits, no cost to General Fund and partially off-set by elimination of part-time position Staff is proposing to exchange a limited service, part-time position to one full-time Administrative Clerk II position. Doing so will provide the Community Development Department with the appropriate level of staffing to manage the new Cannabis Community Benefit program while helping to alleviate other administrative workloads associated with the community service fund programs. Staff proposes to fund the position exchange using non-General Fund sources, including the funding already made available to the part-time position See more detailed information below under Cannabis Community Benefit Fund Section 10.

Finance Department
1 FTE Account Clerk III: $110,500 annual cost for salary and benefits, 100% cost neutral This proposal is cost neutral as the Department will offset the additional costs through budget savings within the Department including eliminating the current part-time position and reducing overtime. The Finance Department’s Accounts Payable function has experienced across the board increases in workload including additional payment processing related to ARPA funding, a robust Capital Improvement Program, including Measure V Infrastructure financing, and multiple new grants from the Engineering and Transportation divisions. Staffing for this function currently consists of two full-time employees (Accounts Payable Lead and Accountant Clerk III) and one part-time position.

Over the past several years, there has been constant turnover in the part-time position, adding to the workload of the full-time staff as recruiting and on-boarding new part-time staff takes away from their core duties and has resulted in significant overtime.

Converting the part-time position to a full-time Account Clerk III will alleviate the need to constantly recruit and train new part-time staff, reduce overtime, provide stability and full- cycle support to the Accounts Payable function. A team of three in this division will improve the day-to-day operations and facilitate collaboration on new ideas, creating efficiencies, and documenting processes for succession planning.

Police Department
1 FTE Senior Crimes and Intelligence Analyst: $183,500 annual cost for salary and benefits, 100% of cost paid for from the General Fund
The Police Department (PD) currently has only one Senior Crime and Intelligence Analyst. The current analyst is primarily handling investigative intelligence and crime solving. The demands are too high to satisfy the secondary goals of the analyst position,

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which are crime statistics and analysis. The PD needs a second analyst position to focus primarily on crime statistics and analysis to provide actionable data and crime trend information to officers for crime reduction planning and efforts, and supporting communication needs with Council and the public.

Public Works Department
1 FTE Transportation Manager II: $220,200 annual cost for salary and benefits, funding swap within Measure V Fund, no additional costs
On June 8, 2021 Council approved a limited duration (4-year) full-time Transportation Program Manager II position in the Transportation Division to manage the enhanced Capital Improvement Program (CIP) program that Council considered on the same night as the FY 2022-23 budget adoption. This position was funded through Measure V in the CIP budget for $250,000 per year from FY 2021-22 through FY 2026-27. This position has not been filled.

In addition to the significantly increased workload with the Measure V funded CIP, the Transportation division has been very successful in bringing in grants through competitive applications for regional, state and federal funding. Over the past five years, the division brought in over $32 million in funding for various planning, engineering and transportation technology projects, with approximately $19 million of grant funding secured in FY 2022-23. The division continues to make expedited progress with funding the upgrade of Concord’s citywide signal system, construction of various complete streets projects, and planning and developing projects for future grant opportunities.

However, given the success, the division is extremely short-staffed and challenged to handle the additional workload of delivering these grant funded projects while also continuing to position the city for future grant opportunities, in addition to managing the current development workload as well as the CIP workload. As a result, the division is requesting that the limited term position be converted to a full-time position and swapping funding from the Measure V bond financing to Measure V ongoing revenues to pay for the position.
4 Sewer Workers: 2 FTE Lead Collection System Workers and 2 FTE Collection System Workers: $537,200 annual cost for salary and benefits, 100% of costs paid for from the Sewer Fund
The City of Concord currently provides sanitary sewer service to residents and businesses in both Concord and Clayton that lie within the sewer collection area. The sewer collection system includes more than 39,000 service connections, 7,895 utility covers, approximately 377 miles of 6-inch to 54-inch diameter collector and trunk sewer mains. Concord manages the sewer maintenance program with nine front line staff and one Supervisor.

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To meet the operational requirements of the sewer maintenance program and proper equipment operation, crews are dispatched to work locations with a minimum staff level of two. Routine work is significantly disrupted when faced with unplanned events like service emergencies, on-the-job injury, or sickness. Unplanned events cause delays in the maintenance program, adds inefficiency in work planning, and creates a maintenance back log. Adding more staff to the sewer maintenance program will allow for sufficient staffing levels and efficient completion of work plan assignments during unplanned events. The entire cost for these positions would be born by the sewer fund.

The Infrastructure & Franchise Council Committee reviewed this staffing proposal and is recommending support of it to their Council colleagues.

4. General Fund Reserves
As identified earlier in this report, the proposed General Fund Biennial Budget relies upon $4.7 million of fiscal stability reserves in FY 2023-24 and $5.8 million in FY 2024-25 to balance the budget. The General Fund is projected to end FYs 2023-24 and 2024-25 with a 30% fund balance. See Section III on the Long-Range Financial Forecast (Pg. 40) for additional detail.

5. Loan to Support Reuse Planning
In FY 2006-07, the City, acting as the Local Reuse Authority (LRA), retained a consultant team, appointed a Citizens Advisory Committee, and initiated the Reuse Planning process. The former Concord Naval Weapons Station represents a unique opportunity to develop a new mixed-use area that is vital, livable, transit-supportive, at the cutting edge of ecological and sustainable planning, and integrates and supports the entire Concord community.

Historically, the LRA efforts to achieve property transfer and redevelopment of the former Concord Naval Weapons Station have been funded by federal grants, city redevelopment dollars, and, beginning in FY 2013-14, loans from the City to the LRA to be repaid as the land is sold or leased during development.

The estimated loan balance as of June 30, 2023 is approximately $9.9 million from the General Fund, $1.0 million from the Pavilion Fund, and $3.15 million from the Workers’ Compensation Fund. Staff are recommending an additional loan to the LRA to support reuse planning efforts for the former Naval Weapons Station.

In assessing the work necessary to maintain city staff and consulting team efforts related to the transfer tasks listed in the attached memo (Attachment 3), and after confirming the available balance in the LRA Loan Reserve with the Finance Department, staff is requesting an additional loan from the City’s General Fund to the LRA in the amount of $530,000, which is estimated to fund the project through January 2024 – at which point the project’s costs will shift to a new Master Developer partner.

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This loan request, if approved, brings the City’s investment to approximately $14.6 million. The current loans are reported as Nonspendable Fund Balance in the City’s Annual Comprehensive Financial Report. If approved by City Council, the proposed loan amount of $530,000 would be funded from General Fund reserves. This loan is not reflected in the ending fund balance reserves included in this staff report and would result in FYs 2023-24 and 2024-25 fund balance reserves ending at 29.5%.

See attached memo for more information (Attachment 3).

6. Other Funds
a. Gas Tax Funds
The State of California imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel and registration taxes on motor vehicles with allocations dedicated to transportation purposes.

The local (city and county) portions of these allocations flow through the Highway Users Tax Account (HUTA), the familiar gasoline tax revenues that have been in place for decades, and the Road Maintenance and Rehabilitation Account (RMRA) which allocates much of the revenue from the Road Repair and Accountability Act of 2017 (SB1).

This money is restricted for certain purposes and includes a “maintenance of effort” requirement whereby the City must continue to spend an amount on road maintenance that meets a historical average so that the new funding does not supplant the existing level of street related expenditures.

Concord has historically used its annual gas tax revenue to both provide funding for capital street improvement projects and finance a portion of the annual operating costs for street, sidewalk and median maintenance. The FY 2024-25 projected revenue will be programmed as part of the capital budget process next year.

Based on the most recent projections released by League of California Cities’ fiscal policy advisor, Michael Coleman, in January 2023, the budget for FY 2023-24 is $6.7 million, a 15% ($879,000) increase compared to the FY 2022-23 budget.

The projected Gas Tax fund balance is currently estimated to be $1.5 million at June 30, 2023 and increases to $1.6 million at June 30, 2024.

This budget residual provides capacity for additional road maintenance projects that will be considered in next year’s capital budget development process.

Table 8 shows the gas tax funding for the City of Concord over an 11-year period.

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Table 8: City of Concord Gas Tax Revenue FYs 2013-14 to 2024-25 Fiscal Year Gas Tax
Revenue SB1 Revenue Total
FY 2013-14 (actual) 3,927,000 3,927,000 FY 2014-15 (actual) 3,172,000 3,172,000
FY 2015-16 (actual) 2,734,000 2,734,000
FY 2016-17 (actual) 2,482,000 2,482,000
FY 2017-18 (actual) 2,573,000 592,000* 3,165,000 FY 2018-19 (actual) 2,509,000 2,328,000 4,837,000 FY 2019-20 (actual) 2,823,000 2,269,000 5,092,000 FY 2020-21 (actual) 2,849,000 2,390,000 5,239,000 FY 2021-22 (actual) 3,043,000 2,579,000 5,622,000 FY 2022-23 (projected) 3,242,000 2,539,000 5,781,000 FY 2023-24 (projected) 3,560,000 3,100,000 6,660,000 FY 2024-25 (projected) 4,042,000 3,400,000 7,442,000 *FY 2017-18 was the first year of SB1 implementation. Only a partial year of revenue was received.

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b. Pavilion Fund
On August 1, 1995, the City of Concord issued Lease Revenue Bonds in the amount of $18.7 million, bearing interest rates ranging from 6.33% to

8.24% to repay the Concord Performing Arts Center's 1973 Revenue Bonds and to partially finance the renovation and expansion of the Concord Pavilion. During the Great Recession of 2007-09, the Concord Pavilion was not generating sufficient revenues to pay the debt service on the 1995 Lease Revenue Bonds causing the General Fund to subsidize these debt payments. On September 21, 2009, the City was able to retire $8.235 million of the bonds at an interest rate of LAIF plus 0.5% through internal borrowing from the City's Sewer Enterprise, Concord Housing and Workers' Compensation Funds. The Workers’ Compensation Fund advance bears no interest. As a result of these long-term advances, the City is no longer obligated to pay 8.24% interest on the retired bonds. This change has allowed the Pavilion to fully carry its operating costs without relying on the General Fund.

The Pavilion Fund began making repayments on these internal loans in FY 2014-15, and in FY 2018-19 the Pavilion Fund began accelerating loan payments owed to the Sewer Fund. The loan from the Sewer Fund will be fully repaid in FY 2024-25 and staff is recommending the accelerated payments then be directed to the Housing Fund until it is paid off in FY 2026-27. At that time Council may direct the accelerated payments to pay off the Workers Compensation Fund.

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c. Measure V Fund – One-cent Local Transactions and Use Tax Measure V is a locally-controlled one-cent use and transaction tax that provides general-purpose revenue to the City of Concord’s General Fund and these funds cannot be taken by the State.

Measure V helps maintain the community’s quality of life and keeps Concord a safe place to live, work and raise a family; it supports 9-1-1 emergency response and disaster preparedness, supports local businesses and jobs through recovery, enhances and maintains local streets and roads, maintain gang prevention and crime investigation, and addresses homelessness, among other services. The City continues to rely heavily on annual Measure V revenues to accomplish the goal of protecting essential services while also providing resources to invest in deferred roadway and infrastructure investment, as well as Council and community priorities, such as code enforcement, homeless services and transportation planning.

For FY 2023-24, the City expects to receive $32.2 million in Measure V revenues. For FY 2024-25, the City expects to receive $33.0 million in Measure V revenues. Table 9 below provides a summary of the proposed use of Measure V revenues in the biennial budget for FYs 2023-24 and 2024-25 as compared to FY 2022-23. The recommendations listed below are supported by staff and the Measure V Oversight Committee (see Section 7 for more details).

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Table 9: FYs 2023-24 and 2024-25 Proposed Use of Measure V Revenue Adjusted Budget
FY 2022-23 FY 2023-24 FY 2024-25
Measure V Revenue 31.3M 32.2M 33.0M
Measure V Appropriations
Support for General Fund Operations 11.2M 14.1M 14.9M
Council Directed Priorities: Economic Development,
Public Safety, CORE, Code Enforcement, Maintenance
Response Team, Infrastructure Maintenance 1.8M 2.2M 2.2M Supplemental Funding for Transportation Grants,
Residential Paving, Building and Parks Maintenance 18.3M 15.9M 15.9M Total Measure V Appropriations 31.3M 32.2M 33.0M
Proposed Budget

7. Measure V Oversight Committee Findings
The Measure V Citizens’ Oversight Committee reviewed the preliminary biennial General Fund budget for FYs 2023-24 and 2024-25, as well as the long-range financial forecast. The Committee found that it is consistent with the principles adopted with the decision to place Measure Q on the ballot in 2010 and 2014, and Measure V on the November 2020 ballot. The Oversight Committee has found that:
 The FY 2021-22 Annual Audit reflects that Measure V funds were collected and appropriately spent.
 The City’s proposed General Fund biennial budget for FYs 2023-24 and 2024-25 protects the City’s essential services.
 The City’s proposed General Fund biennial operating budget for FYs 2023- 24 and 2024-25 and the FY 2023-24 capital budget address the City’s infrastructure backlog.

A copy of the Measure V Citizens’ Oversight Committee report to the City Council is attached to this budget message as Attachment 4.

8. Community Services/Housing Funds
Childcare Developer Fees (CCDF) – Fund 460
The City of Concord collects a fee equal to 0.5 percent of the development cost of a commercial project at the time of issuance of the certificates of occupancy for the purpose of funding the activities of the Concord Child Care Program. The program provides grants for direct and indirect childcare services, start-up costs for childcare

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programs, upgrades to the quality of childcare services provided, and public education and advocacy to encourage employer-related childcare.

In the City of Concord’s FY 2022-23 Community Development Block Grant (CDBG) Action Plan, the City projected to allocate $150,000 in Childcare Developer Fees for childcare related programs. These funds were identified to support goals associated with public service activities for youth ($100,000), business assistance as part of economic development ($21,300), and administration for these programs ($28,700).

These Childcare Developer Fee funded grants follow the same schedule as CDBG grants; this fiscal year (FY 2022-23) is the first year of what was intended to be three- years’ worth of grant funding, assuming milestones are met.

Three Concord-based organizations are recipients of this funding:
 Bay Area Crisis Nursery: Received $50,000 to provide emergency short-term residential/shelter services and emergency childcare for children ages birth through five years, serving up to 50 families.
 Mt. Diablo School District – CARES After School Program: Received $50,000 to provide comprehensive, on-site after school programs to approximately 1,250 students at five elementary schools and two middle schools in the Monument Corridor, Solano Way, and Willow Pass neighborhoods.  CC Child Care Council - Road to Success: Received $21,300 to recruit, train, and support very low-income, low-income, and moderate-income residents who desire to start and maintain stable microenterprises as they become successful licensed family childcare providers, serving up to 20 Concord residents.

The City is not collecting Childcare Developer Fees at a rate to fully support the next two years of grants in this current three-year grant cycle. The projected available fund balance for the Childcare Fund (460) is $142,000, as of June 30, 2023, with estimated annual CCDF revenues of only $42,500 per year. To assure adequate funding to continue support for the next two years of the current three-year cycle, staff proposes that City Council allocate $100,000 from the Concord Pleasant Hill Health Care District’s unallocated reserves (see the discussion the section below); this is a one-time allocation. Doing so will guarantee support for the Concord Child Care Program as identified in the 2020-25 Consolidated Plan and supported by the 2023-24 Action Plan under CDBG, for the last two years of the program’s three-year funding cycle.

Staff and the Community Service Commission will adjust the available grant allocation within the Childcare Grant Program to match resources within the Child Care Fund when the new funding cycle begins in FY 2025-26. Staff will also educate past recipients and new interested organizations to the funding reduction and

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encourage them to explore applying for funding under the Concord Pleasant Hill Health Care District Grant Program.

Concord Pleasant Hill Health Care District (CPHHCD) – Fund 530 The Concord Pleasant Hill Health Care District Special Revenue Fund (Fund 530) receives property tax revenues that provide for health care services pursuant to the Health and Safety Code throughout the District’s jurisdictional boundaries, which include the cities of Concord and Pleasant Hill. The CPHHCD Grant Committee reviews and recommends allocation of these funds, for which $160,000 has been granted annually. However, as the property taxes collected have increased over the past years, the amount allocated for grants has not been increased, resulting in a fund balance. The projected available fund balance for CPHHCD is $510,000 as of June 30, 2023.

Staff recommends the following:
 Allocate $100,000 of the CPHHCD reserves to the Child Care Grant Program so that the final two years of the current three-year grant cycle will be adequately funded. Such an allocation from the CPHHCD reserves is permissible as it is consistent with the criteria for investment of health care district funding as access to childcare promotes healthy lifestyles and the funded programs directly benefit children who are classified as an at-risk population.
 Make $210,000 of fund balance available for one-time grant awards by the CPHHCD Grant Committee, through a competitive process in FY 2023-24.

This allows for a $200,000 fund reserve to remain, as recommended by the Finance Director, to create resiliency to respond to fluctuations in future funding or unexpected needs within the program.
 Increase the amount available for annual grants awarded by CPHHCD Grant Committee to $320,000 (from the historical $160,000/year).

Housing Successor Low to Moderate Affordable Housing Fund – Fund 245 This fund consists of money set aside from the former Redevelopment Agency (RDA), which the State eliminated in 2012. The City of Concord as the Housing Successor administers $30 million in former Redevelopment Agency Low/Moderate Income Housing funds, the balance of which has been previously allocated for a variety of programs supporting affordable housing within Concord. The majority of these funds have been expended in the form of long-term loans for the acquisition, rehabilitation, or new construction of multi-family affordable housing. No new dollars are coming into this fund, as the RDA no longer exists.

The City’s First Time Home Buyer (FTHB) Program has been and is currently supported by this fund. The First Time Home Buyer Program allocates funds to moderate income, first-time homebuyers to assist with the purchase of their first

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home by providing limited down payment. Eligibility is based on income and household size. Currently, there are 20 outstanding first time home buyer loans, with an average loan amount of $25,000 per homebuyer, and a total estimated unpaid balance of $498,441 scheduled to be repaid at either the time of sale or transfer or by a specified date ranging between 10 to 30 years, based on each loan agreement.

The City has recently determined that State regulations for investing Successor Agency Low/Mod Housing Funds do not allow for the funding of the City’s First Time Home Buyer Program. Consequently, the City is required to reimburse the Housing Successor Low/Moderate Fund for First Time Home Buyer loans made since redevelopment dissolution to maintain compliance with state regulations. Twelve loans have been made since 2012, for a total of $334,957; staff recommends that this amount be reimbursed from the City’s Inclusionary Housing Fund (Fund 251).

Additionally, staff recommends that Council fund future First Time Home Buyer loans out of the City’s Inclusionary Housing Fund.

Inclusionary Housing Fund – Fund 251
The City of Concord’s Inclusionary Housing Fund (Fund 251) is a restricted fund created by the City Council, per Concord Municipal Code Section 18.185 by Ordinance, and earmarked for housing developments with affordable to very low, low, and/or moderate-income households. Funds may also be used for administration of city affordable housing programs and to administer fair housing requirements for affordable units. For-sale housing developers that do not incorporate the mandated number of affordable units into their projects pay into the fund. The program has $2.0M in funds available (leaving a remaining balance of $1.7M after repayments noted above) and can therefore afford to reimburse the Housing Successor Low/Moderate Housing Fund for the investments made into the FTHB program, without endangering existing programs. This fund would collect the future repayments of loans made post dissolution.

9. Golf Course Loan from General Fund
An advance was made from the General Fund to the Golf Enterprise Fund during fiscal years 2007 and 2013 for electrical improvements to the golf cart barn and other smaller capital projects at the City-owned diablo Creek Golf Course. The current total due is $773,648. There is no annual payment requirement and until recently, the Golf Enterprise Fund did not have sufficient resources to make annual loan payments.

The Golf Enterprise Fund is in a stronger financial position due to higher than anticipated use as a result of the pandemic and golf course closures in the nearby area. However, there are many capital projects that continue to be deferred at the golf course. Staff is recommending the repayment of the General Fund loan be evaluated after there is more clarity on how the development of the Concord Naval Weapons Station will impact the golf course.

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10. Cannabis Community Benefit Fund
Cannabis retailers make voluntary commitments to provide funding to the City’s Cannabis Community Benefits Fund. These commitments are codified in each business’ adopted Development Agreement with the City. Two cannabis businesses currently contribute to the fund (CoCo Farms and Coastal Retail); four additional businesses will contribute to the fund once they are open and operating (Stiizy, Culture, Cookies, and Medusa).

Council directed staff to develop a proposal on how to distribute Cannabis Community Benefit funds during its March 11, 2023 goal-setting workshop. The City anticipates receiving $400,000 in annual revenue when all six businesses are operating, which is expected to occur by June of 2024. Actual revenues may be higher or lower. The Cannabis Community Benefit Fund balance as of May 1, 2023 is $212,600.

Based on Council direction during the goal-setting workshop, staff proposes the following procedure and criteria be used for distributing Cannabis Community Benefit funds.

Should Council continue to support this approach, staff will bring a resolution documenting this program to Council as part of budget adoption.

1. Provide $14,000 one-time funding for One Day at a Time (ODAT) Program ODAT is a 501(c)(3) nonprofit organization that partners with local schools to provide positive educational personal growth opportunities to youth. ODAT describes its approach as one that combines community, school and family resources to combat risks associated with low self-esteem, poor academic performance, family problems, domestic violence, abuse, depression, substance abuse, gang association and crime. ODAT’s school linked program incorporates four components: youth, school, family, and community. ODAT focuses on empowering students to perform better in school and lead positive lives.

During the March 11, 2023 Council goal-setting workshop, Council directed staff to explore one-time funding for the ODAT program. MDUSD intends to pilot and fund the ODAT program at Ygnacio Valley High School during the 2023-24 school year at a cost of $74,880 for up to 50 students. MDUSD’s funding will not include special events for the youth, such as time spent at camps and other growth activities. ODAT estimates this cost at $14,000; this additional funding will provide for rich program activities during the initial pilot year.

Council may want to set aside $14,000 on a go-forward basis to support future years of ODAT at Ygnacio Valley High School or may wish to encourage ODAT to compete with other non-profits for future funding through the Cannabis Community Benefit Fund.

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2. Distribute funds to nonprofit organizations through grant awards  Organizations receiving grants must serve residents within the City of Concord  Organizations located in Concord will receive funding priority over organizations located outside of Concord
While this was a desire expressed by Council during the March goal setting workshop, staff cautions against this approach. The City has experience and history with several well-performing organizations that are located outside of the City, but which provide valuable services to the Concord community.  Awards will be a minimum of $10,000 and maximum of $20,000 While this too was a desire expressed by Council during the March goal setting workshop, staff cautions against having a maximum amount, so that organizations have flexibility to think on a larger scale to perform meaningful work with the funds.
 Funds will be distributed 50% up front with the remaining balance released upon verification of expenditures and documentation of having met performance requirements
 Organizations must use funding to provide any of the following services:
o Youth drug use prevention and education efforts
o Drug treatment programs and/or mental health programs, including programs providing supervised diversion from the criminal justice system to avoid recidivism
o Workforce development

3. Community Services Commission (CSC) will recommend grant awards  The same process of distributing other community funds (e.g.

Concord/Pleasant Hill Health Care District (CPHHCD)) will be used o Staff opens and manages an application process
o CSC reviews all applications against Council adopted criteria, including performing interviews, and makes recommendations;
o City Council makes awards
o Staff distributes awards and monitors for performance metrics attainment  Organizations will receive awards on alternating three year and two-year cycles (similar to the CDBG and CPHHCD programs; the Cannabis Community Benefit Grants would be on-cycle with the CDBG grant cycle):
o The first funding cycle will be a two-year cycle, FY’s 2023-24 and 2024-25, to run concurrently with the CDBG schedule. The second cycle will begin in FY 2025-26.

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o The first cycle will allocate $150,000 for each of the two years in the cycle.

The funding amounts for the second and future cycles will be based on actual revenue generation from the fund.
o Awards will automatically carry over to years two (and three if in the three- year cycle) at the same amount, upon verification that performance metrics have been met and initial funding was spent according to the grant award.

Award amounts can be lowered proportionately if grant funds come in lower in years two and three. If there is a significant increase in available funding, staff and the CSC may choose to re-open a grant award mid- cycle.
 To the extent possible the Cannabis Community Benefit Fund award cycles will be offset from the CPHHCD award cycle and will occur concurrent with the CDBG cycle.

Distribution of Cannabis Community Benefits funds using the recommended approach is a new work program for which the City is not appropriately resourced. Staff is proposing to exchange a limited service, part-time position to one full-time Administrative Clerk II position. Doing so will provide the Community Development Department with the appropriate level of staffing to manage this new program while helping to alleviate other administrative workloads associated with the various grant programs. Staff proposes to fund the position exchange using non-General Fund sources, including the funding already made available to the part-time position and funding from all of the city’s grant programs, proportional to the amount of time the position spends supporting each program. The four programs that will carry administrative costs include: CDBG, CPHHCD, Cannabis Community Benefit Fund and the Permanent Local Housing Allocation Program. The part-time admin position has a cost of $31,189 annually and the proposed full-time position will have a fully loaded cost of $100,600.

To initiate the program in Year 1, staff will need to hire a limited-service part-time staff member at a cost estimated not to exceed $20,000 to aid with program start up and completion of awards for the first cycle. This is due to Community Development Department staff being focused on completion of the Homeless Strategic Plan. The $20,000 cost will derive from the Cannabis Community Benefit Fund and is not an anticipated cost for future funding cycles.

III. GENERAL FUND LONG-RANGE FINANCIAL FORECAST
Since1995, the City has utilized a 10-year Financial Forecast program. The forecast has been instrumental in helping the Council, staff, and community understand the future impacts of current decisions and spot fiscal trends. Beginning in 2018, the City developed a 20-year Financial Forecast in order to provide a longer-term view of the City’s fiscal condition.

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Staff presented the City’s Long-Range financial forecast to City Council at the Mid-Year Update on April 4, 2023. Due to the projection of reserves falling below the 30% Council goal, Council assigned $10.5 million to a fiscal stability reserve in order to maintain reserves at the 30% level over the next four years and beyond. The forecast below incorporates staff’s FYs 2023-24 and 2024-25 proposed biennial budgets.

The chart shows the resulting outcome on General Fund reserves. The blue bars in the charts below represent the unassigned, or available, General Fund Reserve balance by year. The solid red line represents the City’s goal of maintaining 30% of General Fund expenditures and the dotted red line represents the City’s minimum acceptable Fund Balance level of 17% of General Fund Expenditures.

Chart 5 incorporates:
 POA/PMA agreements for FYs 2023-24 through 2025-26, and 2% thereafter  Salary increase of 3% for FYs 2023-24 and 2024-25, and 2% thereafter, for all other employees and no additional employees are hired (beyond that shown in the proposed FYs 2023-24 and 2024-25 budget)
 A recession starting in FY 2023-24 and occurring every 7 years Chart 5 shows the reserves drop to 29% in FY 2025-26 and 2026-27 and reaches Council’s goal policy of 30% by FY 2027-28 as full recovery from the recession is assumed.

Chart 5: General Fund 20-Year Forecast
As this chart demonstrates, the City Council’s and staff’s hard work has put the City in a position where reserves remain at or near 30% for the next two years and beyond. The increase in fund balance shown after FY 2032-33 is due to several factors. The City of

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Concord Retirement System (CCRS) unfunded liability is projected to be paid off in FY 2034-35, freeing up $2.4 million annually. Additionally, as staff turns over and CalPERS Classic employees are replaced by Public Employees’ Pension Reform Act (PEPRA) employees, the cost to the City starts to decrease. As the City moves to a position where reserves start to exceed 30%, the forecast model rolls those fund reserves into the next year and they compound on each other, which is why the model shows extreme spiking.

However, Council has a practice of allocating funds above the 30% threshold to unfunded maintenance needs or unfunded liabilities. As those funds are allocated, the reserves are not expected to exceed 30%.

IV. POLICY AND PROCEDURE NO. 168: FUND BALANCE REPORTING POLICY As a technical cleanup, Policy and Procedure No. 168 has been updated to eliminate restating the Council’s minimum fund balance policy and instead refers to the fund balance policy in Policy and Procedure No. 129 Budget and Fiscal Policies. The red- lined policy changes are included in Attachment 5.

V. CONCLUSION
The City is entering this next two-year budget in a fiscally stable position, relying on the use of $10.5 million of one-time fiscal stability fund dollars that Council assigned for this purpose at the mid-year budget update in April 2023.

With this foresight, the Council is able to approve a budget that absorbs inflationary cost increases, increases to personnel costs, slightly enhances service levels and maintains a 30% reserve over the next two-years. The budget long-range model also indicates fiscal stability into the future for Concord, albeit requiring Council to continue to keep an eye on and control long term costs.

Attachments:

1. Desired Staffing Memos

2. Historical Staffing Levels by Department

3. Update of City Loans to Local Reuse Authority

4. Measure V Committee Letter

5. Policy and Procedure No. 168: Fund Balance Reporting Policy

6. Memo Update on Unfunded Liabilities
Link: FYs 2023-24 and 2024-25 Proposed Biennial Operating Budget

Attachment 1
Department Memorandums – Desired Staffing Additions
- City Attorney's Office
- City Manager’s Office
- Community Development
- Finance
- Human Resources
- Police
- Public Works
- Recreation Services
*The Economic Development and Base Reuse and Information Technology departments do not have budget asks at this time.

CITY OF CONCORD MEMORANDUM
City Attorney’s Office

Date: April 17, 2023

TO: Valerie Barone, City Manager

FROM: Susanne Brown, City Attorney

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work The City Attorney’s Office is responsible for advising City bodies and departments, and currently has one Senior Assistant City Attorney focused on supporting the Planning Commission, Community Development Department, and Public Works. Recent state law changes regarding land use, housing production, tenant protections, homeless response, solid waste matters, and impact fees have and will continue to increase demands placed on the City Attorney’s Office to ensure correct application of and compliance with these new laws. At present, outside counsel is helping to meet those demands, but third parties lack familiarly with City operations, and so cannot fulfil those obligations as effectively as an in-house attorney would. The City Attorney’s Office is currently supported by one Executive Legal Secretary/Paralegal whose work has expanded in step with the volume of new legal requirements. Adding an additional Assistant City Attorney and an additional legal secretary would enable the City Attorney’s Office to provide more timely and practical advice, improve internal and external customer service, and enable new state mandated requirements and Council priorities to move forward in a more efficient manner.

Summary of additional staffing desires:

Employee Classification / Title Qty. Cost
Assistant City Attorney 1 210,000
Legal Secretary 1 120,000
Totals 2 330,000

Summary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
Cell phone stipend 2 2,600
Computer 2 2,000
Desk phone 2 600
Totals 5,200

CITY OF CONCORD MEMORANDUM
Office of the City Manager

Date: April 17, 2023

TO: Valerie Barone, City Manager

FROM: Justin Ezell, Assistant City Manager

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work The City of Concord manages hundreds of purchase orders and contracts/agreements each year, in addition to the insurance documentation that is needed to accompany them. The process to create, execute, and track/mange this work consumes a tremendous amount of staff time in multiple departments. Because the current system is complicated and involves numerous staff and often staff with no training on this topic, the City does at times fail to adequately perform this duty, creating unnecessary liability for the City. It would significantly improve the City’s process to hire an Administrative Analyst position to fill this critical role for all contracts and agreements within the City. This would significantly improve the City’s risk management practices. Were we able to staff such a position, an evaluation would be completed to determine the most effective location to house such a position—it would likely be placed in the City Clerk’s office, the City Attorney’s office, or the Finance Department.

The City Manager’s Office is responsible for records management, which is an integral part of City operations. In 2015, the City implemented an Electronic Content Management System for document storage and retention. The system is only partially implemented. The City carries a backlog of paper documents that require either scanning into the system or destruction. To achieve this, records management taxonomy needs to be developed and implemented for several departments. The City Clerk’s office and Information Technology are unable to complete these tasks given existing workloads and current staffing. The City Clerk’s Office estimates that it would take approximately 24 months for 1 FTE to develop and implement the taxonomy, at which time existing staff could maintain the electronic records management system going forward.

Another integral part of City operations and a responsibility of the City Manager’s Office is the communication of timely and relevant information to staff and the public. Broadcasting information occurs through social media, press releases, columns, paper mail correspondence, website updates, and email. Existing workloads limit the frequency of these communication pieces. In addition, the City Manager’s office does not have the ability to communicate directly with the City’s Spanish-speaking population. The addition of a bilingual Community Relations

Specialist would increase the breadth and depth of communication deriving from the City of Concord. The additional FTE would allow the Community Relations Manager to develop new content and generate positive publicity for the City. This may include such things as City Manager newsletters, Mayor’s message videos, and various mailed correspondence (e.g.

Measure V mailer), and informational community meetings.

Summary of additional staffing desires:

Employee Classification / Title Qty. Cost
Administrative Analyst (24-month, limited-service position) 1 $142,243 Administrative Analyst (assigned department is TBD) 1 $142,243 Administrative Analyst (would work with HR to create a Community Relations Specialist classification (bilingual))
1 142,243
Totals 3 $426,729
Summary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
Computers 3 $1,500
Desk phones 3 300
Cell phone stipend 3 3,900

Totals 9 $5,700

II. Desired Staffing in Addition to Above to Increase Service Levels In order to provide more effective and efficient operations, the City Clerk’s Office proposes to add an Analyst position to perform the duties described above, but not as a 24-month limited service position. The addition of a full time Analyst would allow the City Clerk to delegate more responsibilities so that she may perform other service enhancing duties, such as training City employees on records and agenda management, and performing more outreach to potential candidates during election season.

The Assistant City Manager is the lead on most legislative policy matters and the pursuit of State and Federal funding opportunities. The position also takes a lead role in franchise management and fee development along with other City departments. The addition of a Deputy City Manager would allow greater focus and attention on these important matters, resulting in a more effective governance. It would also allow the Assistant City Manager to provide improved oversight and support to its reporting departments. The additional FTE would also enable ideation and completion of special projects benefiting the community.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
Administrative Analyst 1 $142,243
Deputy City Manager 1 252,864
Totals 2 $395,107

Summary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
Computer 1 $500
Desk phone 1 100
Cell phone stipend 1 1,300

Totals 3 $1,900

CITY OF CONCORD MEMORANDUM
Community Development Department

Date: April 28, 2023

TO: Valerie Barone, City Manager

FROM: Kevin Marstall, Community Development Director

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work

Building:

There is a significant amount of Building Construction that occurs in the City without Building Permits. In addition to this construction being illegal, it also creates unsafe living environments endangering the welfare of our citizens. Currently Building Code Enforcement is only done when complaints are received. Currently, Building Inspectors responsible for inspecting permitted construction also perform Building Code Enforcement as a secondary duty whenever they can fit it into their schedule. This often results in delays in enforcement cases and lack of consistent follow through. Adding a Building Inspector dedicated to proactive Building code enforcement would improve the safety of our community by improving enforcement compliance, thereby providing safer structures throughout the City of Concord. Building Code Enforcement does produce offsetting revenue in the form of fees and penalties, which potentially reduces the impact to the General Fund, however the collection of this revenue stream typically lags the performance of the work but eventually could result in up to 50% or greater in cost recovery.

Housing & Community Services:

With the City Council direction through the Housing Element Update and goal-setting workshop, the Rent Stabilization & Just Cause Eviction Ordinance is scheduled to be adopted by the end of December 2023 and to be effective beginning January 1, 2024, creating the existing need for additional staff during this fiscal year FY23/24. To implement this program, it is anticipated that it will be necessary to add a Housing Specialist responsible for program management, reporting, and ensuring compliance with the guidelines of the Ordinance. Specifically, the need for staffing will be evaluated with a proposal and costs discussed as part of consideration of the ordinance when it goes before Council this Fall.

Planning:

Adding an Associate Planner would assist in long range planning, including items such as Development Code updates, implementing state mandates, and executing special projects assigned by Council. Currently, the Work Plan for the Planning Division is highly impacted with

the significant implementation requirements of the Housing Element Update being added to an already full workload, which results in de-prioritizing recommended long-range planning and Development Code updates.

Summary of additional staffing desires:

Employee Classification / Title Qty. Cost
Building Inspector (BL) 1 $117,000
Housing Specialist for Rent Stabilization Program (H&CS) 1 $124,000 Associate Planner (PL) 1 $123,000
Totals 3 $364,000

Summary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
Desktop computers/monitors for Associate Planner & Housing Specialist
2 $3,000
Mobile Tablet/Laptop for Building Inspector 1 $2,000
Totals 3 $5,000

II. Desired Staffing in Addition to Above to Increase Service Levels Building:

The Chief Building Official (CBO) currently oversees the Permit Center operations, Building Permitting, Building Plan Review, Building Inspection, and the Multi-Family Inspection Program. There are no other managers, and only one (1) titled supervisor, in the Division, besides the CBO. Adding an Assistant Building Official would improve quality control throughout the Division and result in safer and more code-compliant buildings throughout the City of Concord. Adding this position would also provide growth/promotional opportunities for both the Plan Check Engineers and/or the Building Inspection Supervisor, thereby addressing goals for succession planning, knowledge management, and staff retention.

Engineering:

Current Development (CD): Adding a Permit Technician would allow better review return times and better ability to track and follow-up on Utility billing and Clean Water reporting. Adding an additional Construction Inspector would support Clean Water inspections and deliver better service and increase project capacity.

Capital Improvement Program (CIP): Adding a Construction Manager and two additional Construction Inspectors to reduce the reliance of contract construction management companies for CIP projects would improve the finished quality of projects, reduce total project costs, and give the City more direct control of projects. Converting the two Limited-Duration Associate Civil Engineers to permanent would allow an Associate Civil Engineer for each category of assets managed (Roads, Bridges, Sewer, Transportation, Parks/Open Space, Structures/Facilities, and IT & Fiber). It would enable each engineer to be responsible for all aspects of projects under their asset with support from other engineers. This would also provide opportunities for internal cross-training and development through project assignments.

Division: Adding an Assistant City Engineer allows growth for Senior Civil Engineers internally and the ability to take on specific selected high-profile development and CIP project oversight.

Housing & Community Services:

Adding a Program Analyst (Grants, Communications, & Outreach Specialist) for Community Services would allow a closer analysis of performance measurements and improve strategizing the implementation of program services, as well as increase funding opportunities, community engagement, and improve delivery of program services.

Planning:

Adding an Associate Planner would improve long range planning and program development for sustainability and climate resiliency.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
Assistant Building Official (BL) 1 $188,000
Associate Civil Engineer (CIP) 2 $330,000
Construction Manager (CIP) 1 $117,000
Construction Inspector (CIP) 2 $217,000
Construction Inspector (CD) 1 $108,500
Permit Technician (CD) 1 $77,000
Assistant City Engineer (CD/CIP) 1 $199,000
Community Services Program Analyst/Grants Specialist (H&CS) 1 $124,000 Associate Planner (PL) 1 $123,000
Totals 11 $1,483,500

Summary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
Desktop computers/monitors for Office positions 6 $9,000 Mobile Tablet/Laptop for Inspector positions 3 $6,000
Totals 9 $15,000

CITY OF CONCORD MEMORANDUM
Finance Department
Date: 4/12/2023
TO: V
alerie Barone, City Manager
FRO
M: Karan Reid, Director of Finance
SU
BJECT: Desired Staffing Additions
I. Des
ired Staffing Additions to More Effectively Manage Existing Work The Department lacks full-time, dedicated administrative support and relies on staff from the City Manager’s Office and individuals within the department to perform basic administrative functions such as managing contracts and invoices, scheduling meetings, processing mail, ordering supplies, submitting work orders and providing general support to the divisions. With staffing of 20, this is a drain on our resources and affects our effectiveness. We are unable to routinely provide the level of service our customers have come to expect. Contracts take longer to process, response times to voicemails and emails have increased and we do not have the capacity to take on any additional work without adding delays in the current workload. In addition, there is limited confidential support for the labor negotiation process resulting in additional work load to the Director of Finance. To address these issues, more work has been placed on the managers, who are overwhelmed. Managers, in total, spend about 25-30 hours per week on administrative functions, rather than focusing efforts on our core duties.

Addi
ng a Confidential Executive Secretary will alleviate the administrative burden on existing staff and allow for increased and more effective delivery of support services to the organization and provide support to the Director of Finance for labor negotiations. This position would also be utilized in crunch periods to assist with peak workloads across all divisions.

Sum
mary of additional staffing desires:

Employee Classification / Title Qty. Cost
Executive Secretary - Confidential 1 109,100
Totals 109,100
Su
mmary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
Computer, phone
Totals
II. Des
ired Staffing in Addition to Above to Increase Service Levels Adding a Financial Analyst to provide department wide support would permit us to be more proactive, rather reactive, by increase analytical support for high priority initiatives and projects citywide, grants management, analyze economic and financial trends and the impacts to the organization, implement new software and efficiency improvements, and provide more responsive answers to customer inquiries. This position would also be utilized in crunch periods to assist with peak workloads across all divisions.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
Financial Analyst 1 154,800
Totals 154,800
Sum
mary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
Workstation, computer, phone
Totals
1 2,500
2,500
1 6,500
6,500

CITY OF CONCORD MEMORANDUM
Human Resources Department
Date: April 21, 2023
TO: V
alerie Barone, City Manager
FRO
M: Jasmin Loi, Director of Human Resources
SU
BJECT: Desired Staffing Additions
I. Des
ired Staffing Additions to More Effectively Manage Existing Work Having a Senior Human Resources Analyst and a Human Resources Technician II dedicated to recruitment and classification/compensation, has helped increase timeliness of responding to the City’s recruitment needs. However, a mid-size city such as Concord will benefit from having at least two analyst-level positions and two technician-level positions to perform the high volume of recruitments affecting the City, due to constant influx of retirements and some resignations.

With the City’s aging employee population, it is experiencing a persistent high volume of retirements that create an equivalent number of recruitments that is expected to continue for the next three to five years. The additional staffing will facilitate more effective management of the City’s recruitment needs.

Sum
mary of additional staffing desires:

Employee Classification / Title Qty. Cost
Human Resources Analyst II - Recruitment 1 $142,2461
Human Resources Technician II – Employee Services 1 $92,1502 Totals 2 $234,396
Su
mmary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
N/A (department already has office space and associated equipment (e.g., computers, telephones, etc.)
Totals
1 Fully loaded cost (i.e., mid-point annual salary plus 30%). 2 Fully loaded cost (i.e., Step 3 annual salary plus 30%).

II. Desired Staffing in Addition to Above to Increase Service Levels Current staffing levels prohibit the Human Resources Department from dedicating an employee to focus solely on training/development and classification/compensation functions. Currently, training/development and classficiation/compensation needs are addressed on an ad hoc basis that causes the City to act reactively—instead of proactively—to training/development and/or classification/compensation matters.

With an addition of a Senior Human Resources Analyst or a Human Resources Analyst II, the City will have an analyst-level human resources professional to provide focus and much needed crafting, coordinating and managing an ongoing training/development program and focus on continual review/update of the City’s classification/compensation matters. For example, the majority of the City’s classification specifications are outdated and require modernizing; yet, because of staffing constraints, this important work has been deferred.

The benefit to the City is that it will allow it to act proactively—instead of reactively—to training/development and/or classficiation/compensation matters, yet is not able to do so because of staffing constraints.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
Senior Human Resources Analyst - Training/Development and Classficiation/Compensation
or
Human Resources Analyst II - Training/Development and
Classficiation/Compensation
1 $168,2393
or

$142,2464
Totals 1 $168,239
or
$142,246

Summary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
N/A (department already has office space and associated equipment (e.g., computers, telephones, etc.)

Totals

3 Fully loaded cost (i.e., mid-point annual salary plus 30%). 4 Fully loaded cost (i.e., Step 3 annual salary plus 30%).

CITY OF CONCORD MEMORANDUM
Police Department

Date: May 02, 2023

TO: Valerie Barone, City Manager

FROM: Mark Bustillos, Chief of Police

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work Most all crimes and investigations involve digital forensic evidence, namely video evidence. A Forensic Specialist II position would be a dedicated Crime Scene Investigator for the Investigations Division as related to the collection, handling, preservation, and enhancement of video evidence to solve crimes. Additionally, the position would collect and process other physical and latent forensic evidence to support Detectives and the Crime and Intelligence Analysts.

This professional (non-sworn) staff position addresses a critical staffing and operational deficiency to meet current and future police service demands in the community. This position provides direct operational and technical support, and would allow existing sworn (Sergeants, and Officers) to focus on their primary duties versus work that can be performed by professional staff employees.

Summary of additional staffing desires:

Employee Classification / Title Qty. Cost
7131 ATC / Forensic Specialist II 1 $100,886

*Step 3 was used for the fully loaded cost calculation
Totals $100,886

Summary of additional equipment to accommodate staffing desires:

With changes in forensic science, digital technology, and the complexity of crimes, police investigations require additional software and hardware devices to meet current and evolving investigative needs. To support the requested Forensic Specialist II position, the Police Department is requesting the following equipment.

The Investigations Division currently has an annual subscription to Celebrite, a company that provides digital intelligence management and technology to search digital data and devices (such as cell phones and computers). This is a critical investigative tool, used in many investigations and has successfully solved homicides, child pornography, child predator cases, gang crimes, and other violent crimes. However, our “basic” subscription is limited and not useful in many cases

involving more advanced cell phones or Android phones. Celebrite’s “premium” subscription has the necessary, more robust services to meet our investigative needs. We have also negotiated a 5% discount. The cost listed below is the additional yearly subscription cost for the premium feature:

Equipment Qty. Cost
Celebrite Premium addition to the current basic Celebrite plan (cost is for annual subscription)
1 $19,855

Totals 1 $19,855

II. Desired Staffing in Addition to Above to Increase Service Levels The downsizing of the Police Department over the past several years has forced the difficult decision of eliminating and/or redistributing programs, duties, and responsibilities of both sworn and professional staff. In order to best meet the needs of the community, Council, and other City departments, a comprehensive analysis should be conducted.

Based on existing program demands, (internal, community, and Council-based) the Police Department is working to develop a strategic succession plan and organizational assessment for all three divisions (Field Operations, Investigations and Administration), to determine program and staffing needs for current and future service demands. At a program level, the Police Department needs additional staffing support in: Administrative professional staff positions, Community Impact Unit – School and Community Resource Officers, and the Traffic Unit – Motorcycle Traffic Enforcement Officers. While exact numbers have yet to be determined, these are the program areas currently in need of the most.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
N/A

Totals

Summary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
N/A
Totals

CITY OF CONCORD MEMORANDUM
Department of Public Works

Date: May 1, 2023

TO: Valerie Barone, City Manager

FROM: William Tarbox, Director of Public Works

REVIEWED BY: Craig Blythe, Administrative Services Manager

PREPARED BY: Jeffrey Rayos, Se nior Administrative Analyst

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work Department of Public Works is operating under personnel related resource constraints that negatively affect the delivery of minimum levels of service. The impact of operating under personnel related resource constraints have resulted in a strained and overburdened workforce, declining infrastructure conditions, and a reactionary delivery model. In addition, the Department is responding to increasingly complex demands and mandates from State and Local agencies.

Continued operations under current staffing levels threaten the Department’s ability to deliver adequate service, retain staff, and plan for multi-year needs or projects. To address minimum workload obligations, each Public Works Division Manager (Administration, Facilities, Fleet, Infrastructure, Parks, and Transportation) provided a concise list of staffing and asset needs.

The staffing and equipment adjustments summarized below (Priority I) support immediate and critical needs required to deliver minimum maintenance services. Incorporating these positions would significantly improve Public Works capacity to meet current workloads across all Divisions. In addition, the positions are necessary for building and strengthening our workforce to address challenges in staff retention, skill redundancy, leadership, and development, required to operate and maintain a functioning Public Works Department.

These positions are necessary for meeting immediate needs but there are still substantial resource limitations in delivering a vision of Public Works that provides responsive, preventative, and professional quality service for the City. As requested, and included under Priority II, are additional staffing recommendations that Public Work would require to provide increased levels of service delivery. For additional discussion, DPW can provide a more comprehensive equipment needs list as staffing decisions are made.

The personnel costs below are estimates based on FY22-23 salary schedule, adjusted to step three, with benefit rates applied. Equipment costs are based on available estimates.

Immediate and Critical Needs –Staffing
Employee Classification / Title Qty. Cost
Job Code 6120 / Senior Maintenance Team Lead / Parks 1 $109,138 Job Code 6120 / Senior Maintenance Team Lead* / Facilities 1 $109,138 Job Code 6616 / Landscape Gardener / Parks 3 $181,615
Job Code 6522 / Maintenance Painter* / Facilities 1 $96,237 Totals 6 $496,127
*Funded from non-general funds (special funds, enterprise fund, internal service fund) The following list of equipment represents the minimum amount of new equipment needs for additional staff.

Immediate and Critical Needs – Equipment
Equipment Qty. Cost
Ford F150 Regular Cab* 3 $105,000
Ford Transit 350* 1 $61,000
Totals 4 $166,000
*Initial equipment purchase partially absorbed by fleet fund balance and annual operation and maintenance funded from non-general funds (special funds, enterprise fund, ISF fund)

II. Desired Staffing in Addition to Above to Increase Service Levels The personnel below are required to increase service delivery across all divisions, as well as, shift the current delivery model from reactionary to preventative. These additions will also provide expanded staffing capacity to pursue new grant opportunities, increased quality control of deliverables, and increase responsiveness to existing priorities.

Employee Classification / Title Qty. Cost
Job Code 2156 / Transportation Engineer (Program Manager I*) / Transportation
1 $168,238
Job Code 6616 / Landscape Gardener / Parks 4 $363,230
Job Code 2307/ Administrative Analyst* / Infrastructure 1 $142,249 Job Code 6120 / Senior Maintenance Team Leader* /
Infrastructure
1 $109,138
Job Code 3378 / Public Works Supervisor* / Administration – Fleet
1 $133,676
Job Code 6426 / Maintenance Utility Mechanic* / Facilities 2 $192,472 Job Code 6714 / Maintenance Worker I* / Infrastructure 2 $140,026 Totals 12 $1,249,029
*Funded from non-general funds (special funds, enterprise fund, internal service fund) DPW can provide a more comprehensive equipment needs list as staffing decisions are made.

Equipment Qty. Cost
Heavy Duty Truck and Trailer 2 $210,000
Totals 2 $210,000

CITY OF CONCORD MEMORANDUM
Recreation Services Department

Date: Friday, April 14, 2023

TO: Valerie Barone, City Manager

FROM: Steve Voorhies, Director of Recreation Services

SUBJECT: Desired Staffing Additions

I. Desired Staffing Additions to More Effectively Manage Existing Work The Recreation Services Department manages recreation facilities, programs and services designed to positively impact the quality of life for every segment of the community. The primary tool our organization has to accomplish that objective is a team of full and part time recreation professionals determined to safely and appropriately activate Concord’s recreation assets. The bottom line is that staffing constraints significantly limit the current team’s ability to fulfill our mission, and often place the department in a reactionary posture.

Although progress has been made when feasible, themes pointed out in Municipal Resources Group Organizational Assessment and Staff Analysis continue to be relevant:

• “The Department is understaffed. Employees work well over capacity for the level of responsibility that they have. Staff at all levels are concerned about the future – retirements, level of service, expectations that still meet the same levels from two decades ago. Of the four benchmark cities reviewed, Concord has the least amount of staff.”

Additional staffing/resources would facilitate more efficient and effective management and safety of current program operations, customer experience delivery and recreation facility assets. The following staffing recommendations more closely mirror the department’s organizational structure existing prior to the great recession.

Summary of additional staffing desires:

Employee Classification / Title Qty. Cost
Recreation Services Division Manager (M-8) – oversee and support recreation programs, services, activities and full time Program Managers (direct reports)
1 198,970
Administrative Clerk III (one for each community center facility, partially offset by reduction of limited services staff hours and one 1000 hour part time exempt position)
3 225,399
Business Program Manager (M-5) – Reporting to department head, responsible for day-to-day oversight of all leases, agreements, and partnerships (including Diablo Creek Golf Course and Concord Pavilion), administrative/technical customer service (software systems, etc.), marketing, policies, procedures, legal matters 1 154,755
Totals 579,124

Summary of additional equipment to accommodate staffing desires:

Equipment Qty. Cost
Remodel of existing office space at the Senior Center, Centre Concord and Willow Pass Center to accommodate additional team members (desks, chairs, cubicles, etc.)
1 5,000
Computer equipment for additional staff members 2 1,000 Phone stipend 2 2,600
Totals 8,600

II. Desired Staffing in Addition to Above to Increase Service Levels In conjunction with the suggested organizational structure outlined above, a Mobile Recreation program would enable meaningful recreation, health and wellness experiences to be delivered “where people live”, resulting in an exponential increased level of engagement with the community. The existing City owned 30 passenger bus could be converted to store recreation equipment and supplies to be transported by staff to sites throughout the community on a year-round basis.

Summary of additional staffing desires (excluding positions identified above):

Employee Classification / Title Qty. Cost
Part time, limited services staff (50 weeks, 20 hours per week) 2 - 3 75,000 Please note this model only works with an enhanced full time organizational structure

Totals 75,000

Summary of additional equipment to accommodate staffing desires (excluding equipment identified above):

Equipment Qty. Cost
Conversion of 30 passenger bus 1 25,000
Program supplies & equipment - approximate ongoing expense 1 25,000 Totals 50,000

Memorandum
Date: May 16, 2023
To: Valerie J. Barone, City Manager
From: Karan Reid, Director of Finance
[email protected]
(925) 671-3192
Subject: Historical Staffing Level Analysis
The Finance Department analyzed staffing levels for each department from Fiscal Year (FY) 2007-2008 to FY 2022- 2023 and citywide from 2003 to 2023. This information is provided in response to a Council inquiry at their Goal Setting Workshop on March 11, 2023. The analysis below does not include the nine new proposed FTE’s for the upcoming biennial budget.

Tables showing staffing levels at the citywide level as well as for each department follow this summary. Analysis of citywide Full-Time Equivalent Employees (FTE) over a 20-year period reveal fluctuations in staffing levels, but an overall decrease of approximately 19% between 2003 and 2023 for the City as a whole.

The analysis at the department level begins in FY 2007-08 as prior to that, there was restructuring of departments and divisions that makes it difficult to provide a meaningful comparison to today’s departmental staffing. Overall, staffing levels declined approximately 18% from 2008-9 to 2022-23.

Attachment 2

Historical Staffing Level - Citywide from FY 2003-04 to FY 2022-23 Year '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Change
from
Current vs.

Highest
Percent
Decrease
from Highest
to Current
FTE Count 529 514 510 501 504 498 415 393 391 387 392 403 411 418 424 426 418 383 405 413 -97 -19% Historical Staffing Level by Department from FY 2007-08 to FY 2022-23 Year '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Change from
Current vs.

Highest
Percent
Decrease from
Highest to
Current
Police 219 220 203 200 200 205 205 211 213 215 216 213 209 185 193 193 -27 -12% Sworn 159 159 155 152 152 152 152 152 152 154 154 154 152 140 139 139 -20 -13% PW 117 119 91 86 91 76 76 76 77 77 77 82 80 76 79 87 -32 -27% CDD 64 55 41 36 28 35 37 41 46 50 56 56 54 49 53 51 -13 -24% Finance 27 27 21 18 18 18 19 19 19 19 19 19 19 19 20 20 -7 -26% City Mgr 21 21 18 17 16 16 16 17 16 16 16 16 16 12 14 15 -6 -29% IT 18 18 12 11 11 11 12 12 13 13 13 13 13 13 14 14 -4 -22% Recreation 20 20 17 15 15 14 15 14 13 13 13 13 13 12 14 14 -6 -30% HR 9 8 8 6 6 6 6 7 7 8 8 8 8 8 9 9 0 0%
Attorney 6 6 4 4 4 4 4 4 4 4 4 4 4 4 5 5 -1 -17%
EDBR* 3 4 0 0 2 2 2 2 3 3 2 2 2 5 4 5 0 0%
Total FTEs 504 498 415 393 391 387 392 403 411 418 424 426 418 383 405 413 -91 -18% *Economic Development and Base Reuse (EDBR) has been reorganized a few times over this time period. In FY10 and FY11, two positions were eliminated and two were moved to the Office of the City Manager. In FY21, Economic Development was combined with the Base Reuse Department and 3 positions were moved from CDD to EDBR.

1 M E M O
May 16, 2023
TO: Concord City Council
FROM: Guy Bjerke, Director of Economic Development & Base Reuse RE: Status of City Loans to the Local Reuse Authority
The purpose of this memo is to provide a status report on the approximately $14 million in loans the City has made to the Local Reuse Authority between 2013 and Fiscal Year 2019/2020.

The City loans have been used for work necessary for sitewide project permitting that is not tied to either Master Developer selection, drafting of the Specific Plan or any phases of development.

Rather it is work that impacts all 2,300 acres of the City’s Economic Development Transfer (EDC) and makes future development and property transfer possible. The only exception is the special project work done in support of two Council priorities: (1) the Council’s Campus District’s Blue Ribbon Committee and (2) the Tournament Sports Complex Conceptual Plan.

All City Loans to the LRA are secured with an Interfund Loan Agreement that defines the term of the loan and requires their repayment with interest upon the sale and transfer of property.

BACKGROUND
From 2006 to 2013 the Reuse Project was funded entirely from grants from the Department of Defense Office of Economic Adjustment, Regional/State Grants, and from the City’s Redevelopment Agency. These funding sources are what paid for consultants and experts as the City took public input and worked with the first Community Advisory Committee to fashion the original Reuse Plan (2010) and, then incorporate the Reuse Plan into the City’s General Plan as the Reuse Area Plan (2012).

Once OEA stopped making grants and after the State of California dissolved local Redevelopment Agencies in 2012 it became necessary to find a new funding source for Reuse Project tasks. City Loans and eventually the chosen Master Developer partners, Lennar Concord, LLC and Concord First Partners, LLC became the new funding sources. The City loans were granted by the City to the LRA with the requirement that the Local Reuse Authority repay the loans, with interest, from the sale or lease of project property. All City Loans have been subject to a Council-approved Interfund Loan Agreement between the City and Local Reuse Authority detailing the terms of each loan.

Since 2013 there have been eight City Loans to the Local Reuse Authority for a total of approximately $14 million through June 30, 2020.

Year Amount
FY 2012-13 $117,000
Attachment 3

2 FY 2013-14 $1,100,000
FY 2014-15 $2,113,983
FY 2015-16 $2,350,000
FY 2016-17 $1,800,000
FY 2017-18 $1,350,000
FY 2018-19 $1,900,000
FY 2019-20 $3,350,000
Total: $14,080,983
There have been no additional City Loans to the LRA over the past three years. All project expenses during the past three years have been paid for from either the City Loan reserve (also referred to as the LRA Loan Reserve) or the second Master Developer’s Exclusive Negotiating Agreement deposits. These project expenses are tracked in the Reuse Project Program Reports and released to the City Council and public in the Document Library of the Reuse Project website – www.concordreuseproject.org. The latest Program Report, published in December of 2022, is attached. The next Program Report will be published in June or July of this year.

The current balance in the City Loan reserve as of April 21, 2023 is approximately $480,000.

USE OF CITY LOANS – TRANSFER TASK CATEGORIES
The use of City Loans paid for staff’ and consultants’ work related to transfer tasks and sitewide efforts in project permitting that impact all 2,300 acres of our EDC and make future development possible. They include:

1. Navy Economic Development Conveyance Discussions

2. Sitewide Resource Permitting

3. Resource Management Plans

4. Monitoring Clean-up and Risk Management

5. Base Management/Special Projects
Special project tasks have, in the past, included the Campus District’s Blue Ribbon Committee and Tournament Sports Complex conceptual planning efforts.

CURRENT STATUS – FY 23-24 LOAN REQUEST - $530,000
In assessing the work necessary to maintain city staff and consulting team efforts related to the transfer tasks listed above, and after confirming the available balance in the LRA Loan Reserve with the Finance Department, staff is requesting an additional loan from the City to the LRA in the amount of $530,000 which is estimated to fund the project through January 2024 – at which point the project’s costs will shift to a new Master Developer partner.

City of Concord
May 16, 2023
TO: Honorable Mayor and Councilmembers
FROM: Citizen Measure V Oversight Committee – Michelle Lane, Chair; Brandy Leidgen, Vice Chair; Gregory Grassi; Brian Beckon; and Diane Sprouse
SUBJECT: Measure V Oversight Committee’s Review of the FY 2021-22 Annual Comprehensive Financial Report and Evaluation and Report on the City’s Use of Measure V Revenues in the Proposed Biennial Operating Budget for FYs 2023-24 and 2024-25
The Measure V Oversight Committee (Committee) met on March 20, 2023 to review the Fiscal Year (FY) 2021-22 Annual Comprehensive Financial Report (ACFR), which includes the annual audit. Subsequently, the Committee met on April 17, 2023 to receive a presentation on the proposed investment of Measure V revenues to address the City’s deferred infrastructure maintenance and other community priorities through the Mid-Cycle Capital Improvement Program (CIP) Update. At the same meeting, the Committee received a presentation from Coordinated Outreach Referral and Engagement (CORE) staff and the City’s Community Services Manager to discuss the program’s outreach and services in Concord. The Committee also received an overview of the Council-approved uses of Measure V one-time residual funds from the Mid-Year Operating Budget Update that went to the City Council on April 4, 2023.

The Committee then met on April 24, 2023 to review and evaluate the City’s preliminary Proposed Biennial Operating Budget for FYs 2023-24 and 2024-25 and updated long- range financial forecast. The purpose of these meetings was to obtain an understanding of the preliminary budget in order to advise the Council as to whether Measure V revenues are proposed to be spent in a manner consistent with voter intent: to continue locally controlled funding that the State cannot take; to protect and maintain Concord’s city services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads, maintain gang prevention and crime investigation, and address homelessness, among other services.

The Committee has made the following findings with regard to its charge in oversight of the tax:

Attachment 4

Measure V Committee’s Finding Memo
May 16, 2023

1. Does the FY 2021-22 Annual Audit reflect that Measure V tax was collected and appropriately spent?
On March 20, 2023, the Committee reviewed the FY 2021-22 Annual Comprehensive Financial Report and determined that the presentation of the Measure V Use and Transaction Tax in the financial statements (pages xiii, 9, 13, 24, 25, 30, 32, 119 and 121) reflect the collection of the tax appropriately.

The Committee finds that usage of Measure V tax revenue ($33.0 million) was identified clearly in the annual audit. Further, the Committee finds that $32.4 million of Measure V revenue went to maintain City essential services, which allowed the City to avoid cuts to core City Services, and infrastructure maintenance, and the remaining $0.6 million was used consistent with the City’s Fiscal Sustainability Ordinance to maintain reserves. Consequently, the Committee concludes that the tax was collected and appropriately utilized.

2. Does the City’s proposed General Fund biennial budget for FYs 2023-24 and 2024-25 protect the City’s essential services?
The FY 2023-24 budget estimates the collection of Measure V revenue in the amount of $32.2 million. The City proposes to use $14.1 million to maintain essential City services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads, maintain gang prevention and crime investigation, and address homelessness, among other services. In addition, $15.9 million is used to support infrastructure maintenance backlog projects, and $2.2 million will fund Council directed programs addressing community priorities.

The FY 2024-25 budget estimates the collection of Measure V revenue in the amount of $33.0 million. The City proposes to use $14.9 million to maintain essential City services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads, maintain gang prevention and crime investigation, and address homelessness, among other services. In addition, $15.9 million is used to support infrastructure maintenance backlog projects, and $2.2 million will fund Council directed programs addressing community priorities.

Consequently, the Committee finds that the use of Measure V revenue in the operating budget for FYs 2023-24 and 2024-25 protects the City’s essential services and reflects investment consistent with what was shared with the public.