City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 6, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-63 Agreement with Harris & Associates for Initial Work on the City of Gonzales 6Th Cycle Housing Element Update for the Period 2023- 2031
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2022-63, A Resolution of the City of Council of the City of Gonzales, approving and authorizing an Agreement Between Harris and Associates for initial work on the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031.
BACKGROUND
On July 1, 2022, the City of Gonzales (City) invited proposals from consultant firms or consultant teams to complete a housing element update, related rezoning and all necessary environmental review as required under State law, in a manner consistent with the Regional Housing Needs Allocation 6th Cycle (RHNA 6) planning period (2023-2031).
The City received two timely responses that were objectively reviewed by four city staff members. When review scores were combined, Harris and Associates had the higher rating, and as staff discussed the two RFP responses, staff affirmed that Harris and Associates had the right experience, expertise, and a fluent approach to a multicultural engagement with the community. Harris and Associates also acknowledged the availability and dedication of qualified staff and that they could get the job done. Follow-up calls with former clients yielded compliments and satisfaction that their city had finished with a certified 6th Cycle Housing Element and that it came in on budget. Staff interviewed Harris and Associates via Zoom on AGENDA
ITEM
14 Wednesday August 17, 2022 to meet the consultant team, refine the scope of work, staffing assignments and to discuss budget.
Funding Issues. In September of 2020, the City made an application for and received a $65,000 LEAP Grant from the State of California for financial assistance in preparing the 6th Cycle Housing Element Update. The City’s application indicated that the full $65,000 would be used and that the Housing Element Update was anticipated to be completed for that amount. Since this time though, the City has learned that the task of preparing the 6th Cycle Housing Element Update will be much more expensive and is in the realm of $450,000 to $500,000; a seven fold difference.
Presently, the City only has the $65,000 LEAP grant from the state to get started and underway.
Additional funding sources will be needed to complete the task by December of 2023.
There are substantial penalties from the State of California, potentially if the City does not complete the 6 th
Cycle Housing Element Update process in a timely manner. Drawing from the California Housing and Community Development Department website https://www.hcd.ca.gov/housing-elements-hcd it states that:
State funding programs for transportation, infrastructure, and housing often require or consider a local jurisdiction’s compliance with Housing Element Law. These competitive funds can be used for fixing roads, adding bike lanes, improving transit, or providing much needed affordable housing to communities. In some cases, funding from state/federal housing programs can only be accessed if the jurisdiction has a compliant housing element. In other cases, a compliant housing element is not a requirement in order to apply for funding; however, those applying for funding will receive extra points on their application if they do have a compliant housing element (thereby increasing their chances in the competitive application process).
State funding programs that require a local jurisdiction’s housing element compliance include:
• Community Development Block Grant Program
• Infill Infrastructure Grant Program
• Local Housing Trust Fund Program
• Affordable Housing and Sustainable Communities Program • Permanent Local Housing Allocation Program
• Caltrans Sustainable Communities Grant Program
REVIEW & ANALYSIS
It is imperative that the City get underway with this task – and find the $450,000 to $500,000 additional financial resources to accomplish housing element certification with the State Department of Housing and Community Development. Unlike the 5th Cycle though, the state not only ramped up the depth, breadth and thoroughness of housing evaluations state-wide and community by community, but the state has dedicated and assigned grant monies to be distributed through local Councils of Government (AMBAG) that can be used by local jurisdictions to pay for housing projects and implementation. It is hoped that we can obtain additional state money to pay for the housing element, but this is uncertain and unknown at this time as AMBAG determines how additional state housing monies should be spent and allocated in this region.
Attached to this staff report recommending that the City enter into an agreement with Harris and Associates is a resolution, an agreement, and two scopes of work. • First Scope. One scope of work includes the whole of the project with a cost of $460,000. This scope is for reference at this juncture as the City does not have a dedicated source of revenue to pay for the whole of the project.
• Second Scope. Staff would like to offer the following strategy to the City Council. Staff would like to get underway with several of the most critical initial tasks – as well as task Harris and Associates to assist the City in securing additional grant monies from the state and local COG.
Staff asked Harris to prepare a revised and limited (Second) scope of services to reflect our current level of funding ($65,000). This modified scope of services includes getting underway with:
1. A site inventory.
2. Early work on the fair housing section.
3. A bilingual residential survey about housing needs and initial demographics work, and
4. Working with AMBAG to secure REAP 2.0 funding for housing element preparation. Harris staff will review the Notice of Funding Availability (NOFA) when released and will prepare one (1) draft and one (1) final version of the application for approval by City Council. City staff will carry these reports to and through Council when ready to reduce expenses.
Should we and the consultants be successful in these efforts to secure additional grant funding for the Housing Element, it is not anticipated that the REAP 2.0 awards will be made timely enough to close funding gaps in the work efforts that need to be started now and for the consultant to stay on task on the City’s behalf. The City will need to find the funds to close this significant gap. REAP 2.0 awards may not be available until April/May of 2023.
How the Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Getting underway with the 6th Cycle Housing Element, and it’s successful certification at the state level will facilitate a greater understanding of our citizens’ housing needs and how best to address income disparities, fairness and social equity in housing opportunities and local programs that may be crafted or revised. Additionally, a certified and timely Housing Element allows the City to continue to pursue state funding programs for transportation, infrastructure, and housing, uninterrupted.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The City of Gonzales can assign our existing $65,000 REAP funding resource to get underway with the critical housing sites inventory, bilingual residential needs survey, demographic work; the necessary first building blocks of the Housing Element evaluation, and to pursue additional funding.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: See Vision explanation above.
ALTERNATIVES
Amend or modify staff recommendation.
BUDGET IMPACT
Presently none as the City has secured a $65,000 grant from the State of California and the attached scope of services reflects tasks totaling $65,000.
The City does need though to secure additional funding through grants or direct allotments from the General Fund to complete the 6th Cycle Housing Element Update; the expected additional need could be as much as $400,000-$450,000 (estimated) to be spent through December 2023, or potentially into the first quarter of 2024 should the city be granted an extension in time from the state. Should the City not be timely in the preparation of this Housing document, state funding for transportation (such as SB-1 monies), infrastructure, and housing could be in jeopardy.
CONCLUSION
Staff recommends that the City Council approve Resolution No. 2022-63, A Resolution of the City of Council of the City of Gonzales, approving and authorizing an Agreement Between Harris and Associates for initial work on the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031.
Attachments:
1. Resolution No. 2022-63 w/Consulting Services Agreement
2. Scope of Work for the whole of the 6th Cycle Housing Element
3. Request for Proposals for the 6th Cycle Housing Element Update