City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 18, 2023
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Regional Early Action Planning Grants of 2021 (REAP 2.0)
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2023-58, A Resolution of the City Council of the City of Gonzales Accepting Grant Funds and Authorizing Execution of Agreements for the Regional Early Action Planning Grant (REAP) 2.0 Program.
BACKGROUND
The REAP 2.0 program was established through AB 140 (July 2021) for transformative and innovative projects that implement a region's Sustainable Communities Strategy (SCS) and help achieve the objectives of more housing and transportation options that reduce reliance on cars. REAP 2.0 builds on actions completed through the REAP 1 grant program but expands the focus by integrating housing and vehicle miles traveled (VMT) reduction and allowing for broader planning and implementation investments, including infrastructure investments supporting housing development. This includes accelerating housing production and facilitating compliance with the 6th Cycle of the housing element.
REAP 2.0 is specifically designed to provide tools and resources to help implement and advance plans, primarily including Sustainable Communities Strategies (SCS) as part of Regional Transportation Plans to pursue greenhouse gas emission reduction targets through land use and transportation changes.
REAP 2.0 Program Goals include investing in housing, planning, and infilling housing-supportive infrastructure across the entire state in a manner that reduces VMT, increases housing affordability, and advances equity, consistent with all of the following:
AGENDA
ITEM
13 • Advances the State Planning Priorities, as described in Section 65041.1 of the Government Code; • Affirmatively Furthering Fair Housing;
• Facilitating Housing Element compliance and progress for the Sixth Cycle RHNA; • Advancing and implementing the region's Sustainable Communities Strategy.
REAP 2.0 Program Objectives:
• Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability • Affirmatively Furthering Fair Housing (AFFH)
• Reducing Vehicle Miles Traveled (VMT)
REVIEW & ANALYSIS
What will we use the grant for? Staff anticipates preparing an RFP for planning consulting services to evaluate and customize a rezoning proposal to broadly increase zoning densities and allow for a spectrum of housing types, and affordability levels over a substantial portion of the City. To be determined will be how broadly the rezoning/upzoning of the R-1 and R-2 zoning designations will reach northeasterly into the neighborhoods that have more distance from the downtown core and job centers. Should the zone changes also include the R-1 and R-2 past the centralized school properties and include those neighborhoods pressing up to Highway 101? Should the upzoning include those neighborhoods east of Highway 101?
In addition to the text changes and color changes to the zoning map, staff anticipates a good portion of the grant award will be needed for environmental evaluation of the impacts on fire and police services, schools and daycare systems, healthcare opportunities, and other social amenities. Streets, sewers, water, and utility systems are already in place.
What is in the MOU with AMBAG? By entering into this Agreement and accepting the award of the Program funds, the City agrees to comply with the terms and conditions of the Guidelines, application, as well as this Agreement, subsequent amendments, or modifications to this Agreement. AMBAG shall encumber the full amount pursuant to the Guidelines and provide payment upon reimbursement request and subsequent payments in accordance with this agreement.
Grant and Reimbursement Limit
• The maximum total amount encumbered to the City shall not exceed $128,750.00. • The Agreement authorizes payments and awards up to the total award amount. • The City shall submit and follow a schedule for the expenditure of the award before disbursement of funds. The schedule is subject to AMBAG approval and may be revised as AMBAG deems necessary.
Grant Timelines
• This Agreement is effective upon approval by all parties and AMBAG. • All Grant funds must be obligated no later than March 31, 2024, and expended by March 31, 2026, unless the grant recipient receives an extension to the grant expenditure deadline in writing. • Extensions to the March 31, 2026, grant spending deadline may only be granted by AMBAG to the grantee in writing after September 31, 2025, and only if the grantee has spent at least 60% of their REAP 2.0 grant by September 31, 2025.
• Final invoices must be submitted to AMBAG by April 15, 2026. Under special circumstances, approved by AMBAG and in accordance with the expenditure deadline, AMBAG may modify the invoice deadline and may provide an exception to conduct the terms of this Agreement. • It will be the responsibility of the City to monitor the progress and timeliness of grant fund obligations, including invoicing and reimbursements within the specified dates.
Explain Recommendation and How it 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: The grant funds will assist the City in implementing its coming 6th Cycle Housing Element programs and implementation measures of which we are forecasting substantially increased density (up-zoning) in the existing residential and commercial areas. This grant will not be applied to planning work in the Sphere of Influence areas where the specific plans are proposed. Without these grant funds, the City would still need to process and pay for the anticipated upzoning but has not planned for such expenditures and costs in the current budget cycle; we would have to borrow from or cancel another program.
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 ___ NA
Explain: The Housing Element and its successful implementation are all meant to increase the local housing supply in Gonzales to enhance the quality of life for our community. The up-zoning of density may (hopefully) incentivize the assembly of parcels adjacent to each other, and present an opportunity for the City to consider larger new multifamily projects such as apartments, smaller condo-like ownership units, and other urban-density level developments.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: Please see the explanation above for the Vision and Vision.
ALTERNATIVES
If the City Council does not accept the new grant for $125,750, we will not be able to implement a significant portion of our housing plan to construct additional housing to meet the needs of our citizens.
BUDGET IMPACT
Not having completed the Housing Element (expected early 2024), nor the action items (up zoning and otherwise) that will come from that in-depth study, and also not having gone out yet with an RFP for consultant services for the up-zoning legislative actions and environmental review (Feb-April 2024 expected), staff does not have a forecast on the true cost of these yet to be determined expenses. Staff will work hard to cap these expenses not to exceed the $128,750 grant award, but there is no guarantee that the City will not need to find additional grants, revenue sources or make adjusted priorities with other programs and expenditures.
CONCLUSION
It is recommended that the City Council approve Resolution No. 2023-58, A Resolution of the City Council of the City of Gonzales Accepting Grant Funds and Authorizing Execution of Agreements for the Regional Early Action Planning Grant (REAP) 2.0 Program.
Attachments:
1. Resolution No. 2023-58
2. MOU regarding Regional Early Action Planning Grants Program of 2021
3. REAP 2.0 Grant application packet