Council Packet — Hayward City Council, June 28, 2022 (part 2 of 3)

DATE: June 28, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt Resolutions Authorizing the City Manager to Execute Amendments to the Professional Services Agreements for Kitchell CEM for Extended Construction Support Services for the Fire Station 6 and Fire Training Center Project by $400,000 for a Not-to-Exceed Amount of $2,200,000 and for Extended Inspector of Record Services with ABC Inspections, Inc., by $115,000 for a Not-to-Exceed Amount of $865,000

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to execute an amendment to the professional services agreement (PSA) with Kitchell CEM (Kitchell) for extended construction support services for the Fire Station 6 (FS6) and Fire Training Center Project (FTC) by $400,000 for a not-to-exceed amount of $2,200,000; and a resolution (Attachment III) for extended inspector of record services with ABC Inspections, Inc., (ABC) by $115,000 for a not-to-exceed amount of $865,000.

SUMMARY

The FS6 and FTC Project commenced construction on August 17, 2020 and was anticipated to be completed in Fall of 2022. The completion date is now estimated to be January 2023 due to the delay in delivery of the electrical switchgear components resulting from a global materials backlog. Construction requires construction management and special inspection services to ensure that construction complies with project plans, specifications, and codes.

Because the switchgear is on the critical path for the construction of the entire project, it triggered the delay of all other components of the project. Extending the completion date until January 2023 requires that the construction management and inspector of record teams be on the site for the unanticipated four-month delay and continue to monitor daily construction activities. Additionally, after the switchgear is installed and the buildings are energized by PG&E, there are remaining construction management and inspector of record services. On January 21, 2020[1], Council adopted the resolution authorizing the City Manager to execute an amendment to the PSA with Kitchell for construction support services in the amount of $1,800,000. Also on January 21, 2020, Council adopted the resolution

[1] https://hayward.legistar.com/LegislationDetail.aspx?ID=4310191&GUID=989A319B-355D-4AAD-AB7D- BB8094C3ED4D&Options=&Search=

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authorizing the City Manager to execute a PSA with ABC for inspector of record services in the amount of $750,000. The amounts for both Kitchell and ABC will be exhausted by August 2022. Amendments in the amounts of $400,000 and $115,000, respectively, are necessary to complete the project.

BACKGROUND

In 2014, voters in the City approved Measure C which authorized the City to increase the sales tax rate by one-half cent for, among other things, the restoration and maintenance of City services and facilities, including firefighting/emergency medical services. This project includes partnership with the Chabot-Las Positas Community College District (District) in the shared use of the FTC.

Below is a list of major milestones for the FS6 and FTC project:
 June 3, 2014: Voters approved Measure C, which authorized the City to increase the sales tax rate by one-half cent for twenty years to restore and maintain City services and facilities, including firefighting/emergency medical services.

 October 10, 2014: The City’s consultant, RossDrulisCusenbery (RDC), completed a facility needs assessment for Fire Stations 1-6 and the FTC, which determined that all facilities needed substantial upgrades.

 May 26, 20151: Council authorized the City Manager to negotiate and execute an agreement with RDC for design services for Fire Stations 1-6 and the FTC Improvement project.

 October 18, 20162: Staff provided Council with an update on the project.

 October 24, 2017: The District’s Board of Trustees passed a motion directing the Chancellor to create a Memorandum of Understanding (MOU) with the City of Hayward.

 October 25, 20173: Staff provided a project update to the Council Infrastructure Committee.

 June 28, 2018: Staff submitted a request to the Federal Aviation Administration (FAA) for the release of the land at the Hayward Executive Airport on which FS6 and the FTC would be constructed for non-aeronautical purposes.

 July 24, 20184: Council authorized the City Manager to negotiate and execute an MOU with the District to establish the basis for a ground lease and to accept up to $20 million from the District for the design, construction, and furnishing of the District’s Facilities at the FTC.

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 September 24, 2018: The design team submitted the project plans to the Division of State Architect for their review of District owned buildings.

 October 25, 20185: The Planning Commission adopted the Mitigated Negative Declaration and approved the Site Plan Review.

 March 5, 20196: Council approved the plans for the abatement and deconstruction of the existing FS6 and FTC and call for bids.

 March 6, 2019: Staff provided a design update to the Council Infrastructure Committee.

 September 2019: Completed demolition of the old Fire Station 6 and the Fire Training Center.

 October 1, 20197: Council authorized the City Manager to Negotiate and Execute a Ground Lease and Facilities Use Agreement with the District for the FTC.

 November 19, 2019: Council adopted a resolution approving the plans and specifications for the construction of FS6 and the FTC and calls for bids after approval from FAA and DSA.

 July 7, 2020: Council awarded the construction contract to S. J. Amoroso Construction.

 August 17, 2020: Construction commenced.

 May 25, 20218: Council adopted a resolution authorizing the City Manager to execute an amendment to the PSA for materials testing and special inspection services with CEL in the amount of $325,000.

 September 28, 20219: Council adopted a resolution authorizing the City Manager to execute an amendment to the PSA for construction support services with RDC in the amount of $830,000.

 January 18, 202210: Council adopted a resolution authorizing the City Manager to execute the second amendment to the PSA for materials testing and special inspection services with Consolidated Engineering Laboratories (CEL) in the amount of $450,000.

 April 19, 2022: Council adopted a resolution authorizing the City Manager to execute an amendment to the agreement with Mobile Modular (formerly Design Space Modular) for an additional 9-month rental of modular structures for the temporary Fire Station 6 in the amount of $53,500.

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 April 19, 2022: Council adopted a resolution authorizing the City Manager to execute an agreement with Day Wireless Systems for Conversion of Station Alerting System for all Fire Stations, to Make All Systems Compatible with the One at the New Fire Station 6/Fire Training Center, in an amount of $300,000.

DISCUSSION

The construction of FS6 and the FTC requires construction management and inspection of record services to ensure that construction complies with project plans, specifications, and codes. On January 21, 2020, Council adopted the resolution authorizing the City Manager to execute an amendment to the PSA with Kitchell for construction support services in the amount of $1,800,000. Also on January 21, 2020, Council adopted the resolution authorizing the City Manager to execute a PSA with ABC for inspector of record services in the amount of $750,000. Both of their services began when construction started in August 2020. Based on the contractor’s original baseline schedule, the project was scheduled to be completed in August 2022. Due to the current global material delays with the electrical switchgear component, the completion of the project is now delayed to January 2023. This completion date includes 49 adverse weather working days remaining and if not used, the completion would be November 2022.

After the switchgear is installed and when PG&E energizes the buildings, there are items such as start-up, testing, commissioning, inspections, final punchlist, and acceptance that require construction management and inspector of record services.

In projecting the remaining months to project completion of January 2023, with some slow- down in the end months, the estimated increase in cost for Kitchell’s services until the remainder of the project is $342,064 plus $57,936 for contingencies, for a total amendment amount of $400,000 and a not-to-exceed total agreement amount of $2,200,000. The estimated cost for ABC Inspections is $95,460 plus $19,540 for contingencies for a total amendment amount of $115,000 and a not-to-exceed total agreement amount of $865,000.

ECONOMIC IMPACT

Completion of this project will add classrooms and spaces for training and use by others which may result in positive economic benefits for businesses around the area. Additionally, the local economy and local workforce will be positively impacted during construction of the facilities.

FISCAL IMPACT

There is sufficient funding for the amendment amounts for Kitchell and ABC within the FS6/FTC project construction contingency budget. Staff recommends funding the amendment amounts with Kitchell and ABC through the FS6/FTC project. The total estimated project cost is $70.9 million. As of FY 2022, Council has authorized the appropriation of $66.7 million. The Adopted FY 2023 CIP budget appropriated the remaining project budget in the amount of $4.2 million, which will be available on July 1, 2022.

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The estimated project cost are as follows:

Construction Contract $52,397,000
Construction Contingency (ACO) $5,239,700
Consultant Design $5,000,000
Construction Management Administration $4,000,000
Inspector of Record Service & Special Testing $1,500,000 Demolition of old Fire Station and FTC $425,000
Temporary Housing $500,000
Permit & Utility Fees $940,000
Fixture, Furniture & Equipment $600,000
Staff Construction Administration $300,000
Total $70,901,700

Staff recommends funding the amendment amounts through the use of Construction Contingency funds because both amendment amounts exceed the Construction Management Administration and Inspector of Record Service & Special Testing; see below for further breakdown of these cost:

Construction Management Administration
RossDrulisCusenbery $2,132,000
Kitchell CEM $1,800,000
Original contract total $3,932,000

RossDrulisCusenbery Amendment $830,000
Kitchell CEM Amendment (for approval) $400,000
Amendments total $1,230,000

Total $5,162,000

Inspector of Record Service & Special Testing
ABC Inspections, Inc. $750,000
Consolidated Engineering Laboratories (CEL) $350,000
Original contract total $1,100,000

ABC Inspections, Inc., Amendment (for approval) $115,000 CEL Amendments $775,000
Amendments total $890,000

Total $1,990,000

Currently, $2,312,472 of the $5,239,700 construction contingency has been expended. Current projections indicate that the entire construction contingency amount of $5,239,700 will be needed. Temporary housing, permit & utilities fees, fixture, furniture & equipment are estimated and may change. If additional funding will be needed, staff will seek Council

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approval.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Invest in Infrastructure. Specifically, this item relates to the implementation of the project to Invest in City Facilities & Property:

N10: Construct the Fire Station and Fire Training Center

SUSTAINABILITY FEATURES

This project incorporates sustainability features as they relate to water, energy, and the environment. Additionally, the proposed buildings will be designed to meet Leadership in Energy and Environmental Design (LEED) Silver, or better.

PUBLIC CONTACT

There is no public contact needed for this item.

NEXT STEPS

If Council approves the resolution to amend the agreements with Kitchell and ABC, staff will route the amendments to be executed by the City Manager, allowing the firms to continue to provide construction support and inspector of record services until the completion of construction.

Prepared by: Dave Hung, Senior Civil Engineer
Kathy Garcia, Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works
Garrett Contreras, Fire Chief

Approved by:

__________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-

Introduced by Council Member _____________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH
KITCHELL CEM FOR CONSTRUCTION SUPPORT FOR THE FIRE STATION 6 AND FIRE TRAINING CENTER IMPROVEMENT PROJECT.

WHEREAS, the aforesaid parties have entered into that certain Agreement dated the 19th day of February 2020, entitled “Amendment to Professional Services between the City of Hayward and Kitchell CEM for the F ire Stations 1-6 and Fire Training Center Improvement Project” and

WHEREAS, the City and the Consultant desire s to amend the Agreement in certain respects to p rovide additional services for completion of construction sup port services for the Fire Station 6 and Fire Training Center Improvement Project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Ma nager is hereby authorize d to execute, on beha lf of the City of Hayward, an amendment to the agreement with Kitchell CEM for extended services in an amount not-to- exceed $ 400,000, thereby increasing the total contract amount to a total not -to-exceed $2,200,000 associated with the Fire Station 6 and the Fire Training Center.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-_______

Introduced by Council Member _______________________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH ABC INSPECTIONS, INC., FOR INSPECTOR OF RE CORD SERVICES FOR THE FIRE STATION 6 AND FIRE TRAINING CENTER IMPROVEMENT PROJECT

WHEREAS, the aforesaid parties have entered into that certain Agreement dated the 6th day of March 2020, entitled “ Agreement for Professional Services between the City of Hayward and ABC Inspections, Inc., for Fire Station 6 and Fire Training Center Inspector of Record” and

WHEREAS, the City and the Consultant desire s to amend the Agreement in certain respects to provide additional services for completion of inspector of record services for the Fire Station 6 and Fire Training Center Improvement Project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Ma nager is hereby authorize d to execute, on beha lf of the City of Hayward, an amendment to the agreement with ABC Inspections, Inc., for extended services in an amount not-to-exceed $ 115,000, thereby increasing the total contract amount to a total not-to-exceed $865,000 associated with the Fire Station 6 and the Fire Training Center.

ATTACHMENT III

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-381
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Rejecting All Bids for the Keyways Grading Project, Project No. 06914 at La Vista Park

RECOMMENDATION
That Council adopts a resolution (Attachment II) rejecting all bids for the Keyways Grading Project, Project No. 06914 at La Vista Park.

SUMMARY
On May 24, 2022, the City received three (3) bids for the Keyways Grading Project at La Vista Park, ranging from $8,392,544 to $11,124,254 for base bid items. Miller Equipment Company, Inc., submitted the low bid in the amount of $8,392,544, which is 52.6% above the engineer’s estimate of $5,500,003.

Staff recommends rejecting all bids and combining this project with the construction of the entire La Vista Park project to take advantage of economies of scale and bidding the project during the off- peak construction season between the winter and spring seasons in order to obtain more competitive bids.

Council Infrastructure Committee Review
Due to timing, this particular issue has not been presented to the Council Infrastructure Committee (CIC). An update was provided to the CIC on July 22, 2021 that included a proposal to construct the keyway for slope stabilization as a separate phase to the construction of the entire park. The proposal received positive feedback.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
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File #:CONS 22-381
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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Rejecting All Bids for the Keyways Grading Project, Project No. 06914 at La Vista Park

RECOMMENDATION

That Council adopts a resolution (Attachment II) rejecting all bids for the Keyways Grading Project, Project No. 06914 at La Vista Park.

SUMMARY

On May 24, 2022, the City received three (3) bids for the Keyways Grading Project at La Vista Park, ranging from $8,392,544 to $11,124,254 for base bid items. Miller Equipment Company, Inc., submitted the low bid in the amount of $8,392,544, which is 52.6% above the engineer’s estimate of $5,500,003.

Staff recommends rejecting all bids and combining this project with the construction of the entire La Vista Park project to take advantage of economies of scale and bidding the project during the off-peak construction season between the winter and spring seasons in order to obtain more competitive bids.

Council Infrastructure Committee Review

Due to timing, this particular issue has not been presented to the Council Infrastructure Committee (CIC). An update was provided to the CIC on July 22, 20211 that included a proposal to construct the keyway for slope stabilization as a separate phase to the construction of the entire park. The proposal received positive feedback.

BACKGROUND

In 2005, the La Vista residential development that included 179 new single-family homes to be built at the South Hayward site east of (and up the hill from) the terminus of Tennyson

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Road and Mission Boulevard was approved. The original project included construction of a new thirty-acre public park. The original thirty-acre park site on land donated from the developer was expanded to almost fifty acres in size by the addition twenty acres of the former Caltrans Route 238 property right-of-way acquired by the City.

Thirty percent of the design of La Vista Park was completed and used to define the project scope for preparation of the CEQA addendum analysis which included a 26.5-acre addition to the park project. The CEQA addendum analysis was presented to the Council on September 28, 20212, which authorized staff to continue with the design and construction documents.

The 65% design plans are complete, and the geotechnical consultant finalized the slope stability analysis, which proposed keyways to remove and replace weak existing landslide areas with stronger backfill and strengthen the soil.

The La Vista Park project is anticipated to begin construction in the Spring of 2023. The construction of the Keyway, which is necessary for geological seismic stabilization for the park would be the first component to be constructed. The construction of the Keyway was also required for the proposed development of the Parcel Group 3. Because the Parcel Group 3 development was anticipated to be constructed prior to the beginning of the park construction, staff was asked to explore the feasibility of phasing the construction of the park project and construct the Keyway as a separate project from the park and prior to the anticipated construction of the park. This would allow the construction of the Parcel Group 3 development to commence as planned and the geological seismic stabilization necessary for the Parcel Group 3 would be in place prior to the beginning of construction.

DISCUSSION

On April 26, 20223, Council approved the plans and specifications for the project and called for bids to be received on May 24, 2022.

On May 24, 2022, the City received three (3) bids for the project, ranging from $8,392,544 to $11,124,254. Miller Equipment Company, Inc., submitted the low bid in the amount of $8,392,544, which is 52.6% above the engineer’s estimate of $5,500,003. The total project budget for this phase of the project is approximately $6.3 million to stabilize the slope for La Vista Park.

Initially, phasing the construction of the keyways grading for La Vista Park was critical to the Parcel Group 3 development and their proposed grading operations. Staff has confirmed that the Parcel Group 3 grading operations have been delayed and will not start this year. Furthermore, the lowest bid received was approximately 53% higher than the engineer’s estimate. Staff believes that bidding out the project during the peak construction season and the challenging nature of work contributed to the higher-than-

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expected construction bids.

Staff recommends rejecting all bids and combining the two phases, the Keyway Grading and La Vista Park, into one to take advantage of economies of scale and bidding the project during the off-peak construction season between the winter and spring seasons when the contractors are not as busy and more likely to submit bids. As such, the project could receive more competitive bids.

The project CEQA addendum analysis including the 26.5 -acre addition for La Vista Park was completed and presented to Council on September 28, 2021 with no further action required per adopted resolution 21-195.

On November 15, 20164, Council adopted a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. Because the construction cost estimate for the La Vista Park – Keyways Grading project is more than $1,000,000, the CWA agreement applies to this project.

ECONOMIC IMPACT

The development of a destination park will attract visitors that will contribute to the vitality of the City and South Hayward area. The park will provide an amenity to the area and have a positive impact on the community’s economic development.

FISCAL IMPACT

The adopted FY 2022 CIP budget includes a total project budget appropriation of $23.2 million in the General Capital Fund (Fund 405) to construct all the proposed La Vista Park improvements including the proposed keyway slope stabilization improvements proposed in this project.

The estimate project costs for the keyway grading are:

Design

$78,000
Administration $70,000
Geotechnical Inspections, Testing & Report $128,000
Construction with 10% Contingency $6,050,000
Total Project Cost $6,326,000
Remaining budget for La Vista Park design and construction $16,874,000

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STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Invest in Infrastructure. Specifically, this item relates to the implementation of the following project(s):

Project N14, Part N14b: Construct La Vista Park

SUSTAINABILITY FEATURES

The La Vista Park will be designed to be the most environmentally sustainable park within the City. As part of the design, park areas will require less irrigation and native grasses and plants will be used throughout the park. Park structures will be constructed from natural materials versus traditional, more costly fabricated structures. Bio-retention filtration areas will collect and retain stormwater runoff prior to exiting the park into the storm drainage system.

PUBLIC CONTACT

Construction notification to the public is not required since this project will not be awarded at this time.

NEXT STEPS

Staff will combine the proposed Keyways grading construction documents with the La Vista Park construction documents, complete the preparation the construction documents and request for construction bids during the off-peak construction season to obtain more competitive bids.

Prepared by: Alex Tat, Associate Civil Engineer
Kathy Garcia, Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL
RESOLUTION NO. 22-
Introduced by Council Member

RESOLUTION REJECTING ALL BIDS FOR THE KEYWAYS GRADING PROJECT, PROJECT NO. 06914 FOR THE LA VISTA PARK

WHEREAS, by Resolution No. 22 -101 on April 26, 2022, the City Council approved the plans and specifications for the Keyways Grading Project, Project No. 06914 for La Vista Park, , and called for bids to be received on May 24, 2022; and

WHEREAS, on May 24, 2022, three (3) bids were received ranging from $8,392,544 to $11,124,254 for base bid items. The low bid, submitted by Miller Equipment Group, Inc., is approximately 52.6% above the engineer’s estimate of $5,500,003; and

WHEREAS, the bids all came in significantly above the engineer’s estimate; and

WHEREAS, the urgency related to the construction of the Parcel Group 3 and school development is no longer present; and

WHEREAS, i t is anticipated that by combining this phase with the larger park construction, the larger project would benefit from economies of scale; and

WHEREAS, bidding the project during off-peak construction season could result in more bids and likely lower bids.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the above listed bids, and all other bids for the Keyways Grading Project, Project No. 06914, for La Vista Park, are hereby rejected.

BE IT FURTHER RESOLVED, that the City Clerk is hereby authorized and directed to return the bids and bid bonds submitted by all bidders.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA , 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL
MEMBERS: MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST:

City Clerk of the City of Hayward

APPROVED AS TO FORM:

City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-389
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Implementing the Water Shortage Contingency Plan Level 2

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) implementing the Water Shortage Contingency Plan Level 2.
..End

SUMMARY
Several key state and regional actions have been implemented to address current water supply conditions. The last two years have been among the driest on record, with very little precipitation occurring after December. In order to conserve regional water supplies, the City’s sole wholesale water supplier, the San Francisco Public Utilities Commission (SFPUC), has adopted a system-wide reduction target of 11%, which will result in an 11% reduction in Hayward’s use as compared to fiscal year (FY) 20-

21. In addition, the State Water Resources Control Board (SWRCB) adopted an Emergency Regulation that requires urban water purveyors to implement their Water Shortage Contingency Plan (WSCP) Level 2 Water Shortage measures, which are designed to address shortages from 11-20%, in order to conserve supplies.

This report summarizes actions taken by the SFPUC and the SWRCB, requests from Governor Newsom to voluntarily reduce water use by 15%, and the steps that the City must take to comply with these requirements.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
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File #:CONS 22-389
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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Implementing the Water Shortage Contingency Plan Level 2

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) implementing the Water Shortage Contingency Plan Level 2.

SUMMARY

Several key state and regional actions have been implemented to address current water supply conditions. The last two years have been among the driest on record, with very little precipitation occurring after December. In order to conserve regional water supplies, the City’s sole wholesale water supplier, the San Francisco Public Utilities Commission (SFPUC), has adopted a system-wide reduction target of 11%, which will result in an 11% reduction in Hayward’s use as compared to fiscal year (FY) 20-21. In addition, the State Water Resources Control Board (SWRCB) adopted an Emergency Regulation that requires urban water purveyors to implement their Water Shortage Contingency Plan (WSCP) Level 2 Water Shortage measures, which are designed to address shortages from 11-20%, in order to conserve supplies.

BACKGROUND

The City receives its potable water from the SFPUC Regional Water System, which is largely supplied by Sierra snowmelt that drains into the Hetch Hetchy Reservoir. In addition to Hayward, the SFPUC supplies water to 25 other Bay Area water agencies and the City of San Francisco. With this past winter being one of the driest on record in California, and very little precipitation occurring after December, on May 24, 2022 the SFPUC adopted a system-wide water use reduction of 11% over FY 2019-20 use in order to conserve supplies. Like all wholesale purchasers, Hayward will be subject to a water use allocation and monthly water budget as a result of this action.

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Actions at the State level also impact Hayward. The Governor called for state-wide voluntary 15% reductions in water use over 2020 usage in Executive Order (EO) N-10-21, issued in July 2021, and restated in the Governor’s Proclamation of a State of Emergency in October 2021.

After a second dry winter, the Governor issued EO N-7-22 on March 28, 2022 in which he requested that the SWRCB take certain actions to address water supply conditions.

On May 24, 2022, in response to EO N-7-22, the SWRCB approved an Emergency Regulation which, in addition to other provisions, notably requires urban water suppliers to implement WSCP Level 2 (for shortages of 11 – 20%). The Emergency Regulation also requires water agencies to submit a draft Annual Water Supply and Demand Assessment (AWSDA) by June 1, with the final assessment to be submitted by July 1.

Council adopted a WSCP after a public hearing on July 20, 2021. The WSCP is a planning document designed to prepare for and respond to water shortages, and is required as part of the City’s Urban Water Management Plan (UWMP). Among other information, the WSCP defines six standard water shortage levels depending on available water supplies, and response actions that are to be implemented at each level to reduce water usage. This document also describes procedures to conduct the required AWSDA. The City’s WSCP can be found on the City’s website1.

The AWSDA compares available potable and non-potable water supplies with unconstrained demand (that is, demand that would be expected if there are no limitations or restrictions on water use) to determine if sufficient supplies are available, and must be submitted to the State by July 1 each year for the upcoming year. If supplies are not expected to meet unconstrained demand, the AWSDA describes actions that will be taken to achieve the reduction.

DISCUSSION

As the drought has worsened over the past two years, several key state and regional actions have been implemented to address the water supply shortage. The following paragraphs discuss these actions, impacts on Hayward, and measures to address the impacts.

Key State and Regional Responses to the Water Supply Shortage

San Francisco Public Utilities Commission Resolutions

The SFPUC responded to the Governor’s call for voluntary reductions by adopting a resolution to declare a Water Shortage Emergency on November 23, 2021 and requesting a system-wide reduction of 10% over usage in FY 2019-20. On May 24, 2022, the SFPUC increased the overall system-wide reduction target to 11%, effective July 1, to align with the State’s directive for implementation of Level 2 measures, while recognizing that the Regional Water System supply conditions are more favorable than some others. Although the Hetch Hetchy reservoir is currently full, it is imperative that water usage be reduced to conserve supplies, particularly during the summer months. At this time, the reductions are voluntary and no excess use penalties will be imposed; however, the SFPUC will continue to

1 https://hayward-ca.gov/sites/default/files/Hayward%202020%20Water%20Shortage%20Contingency%20Plan_Final.pdf

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assess results and determine if additional actions are needed to achieve the reduction goals or respond to additional regulatory actions.

Retail customers of SFPUC (that is, customers within the City of San Francisco) use about one- third of available supplies, whereas nearly two-thirds are allocated to wholesale customer agencies. Therefore, in accordance with provisions of the Water Supply Agreement between the SFPUC and its wholesale customers, retail customers are assigned a lower percentage cutback, in this case 5%, and the overall reduction for the wholesale customers is 16%. Water allocations among the wholesale customer agencies are based on a formula agreed to by the agencies in 2010 that considers Individual Supply Guarantees, recent three-year average usage and seasonal variation in indoor/outdoor use. Initial water allocations for each agency were put in place on January 1, 2022, and have since been revised effective July 1, 2022 in order to achieve the higher overall reduction target.

State of California Executive Orders and Emergency Regulations

The Governor has issued five Executive Orders since April 2021 to address water supply conditions across the state. Most notably, he called on Californians in July and again in November 2021 to voluntarily reduce their water use by 15% over 2020 usage through commonsense measures, many of which are mandated by Hayward in its Water Waste Prohibition ordinance.

In March 2022, the Governor renewed his request for voluntary water use reductions and instructed the SWRCB to consider adopting an Emergency Regulation that would require urban water agencies to:

 Implement actions identified in WSCPs for a Level 2 shortage of 11–20%.  Prohibit use of potable water for irrigation of non-functional turf at commercial, industrial, and institutional sites (Non-functional turf is defined as turf that is solely ornamental. Turf used for recreational, sports or community events is not subject this prohibition.)
 Submit a preliminary Annual Water Supply and Demand Assessment by June 1, with a final assessment to be submitted by July 1.

In response to the Governor’s request, the SWRCB adopted an Emergency Regulation on May 24, 2022 requiring the above actions.

Summary of Water Use Reduction Actions and Requirements Given the number of actions that have occurred over the past years and the variety of sources, staff has prepared the following summary table as a brief overview.

Summary of Water Use Reduction Actions and Requirements

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Date Source Voluntary/
Mandatory Action
July 8, 2021 Governor’s
Executive Order Voluntary 15% reduction over 2020 use
October 19, 2021 Governor’s
Proclamation Voluntary
State of Emergency declaration;
continuation of 15% reduction
over 2020 use
November 23,
2021 SFPUC Voluntary 10% system-wide reduction over
FY 2019-20 use
March 28, 2022 Governor’s
Executive Order Voluntary
Continuation of 15% reduction
over 2020 use; direction to
SWRCB to issue Emergency
Declaration requiring
implementation of WSCP Level 2
May 24, 2022 SWRCB Mandatory
Emergency Regulation requiring
urban water providers to
implement WSCP Level 2
measures
May 24, 2022 SFPUC Voluntary 11% system-wide reduction over FY 2019-2020 use

Impacts on Hayward Customers

Hayward customers have historically been good stewards of water resources, as evidenced by the fact that residential per capita use is among the lowest compared to other SFPUC wholesale customers. Nonetheless, Hayward is subject to the state and regional reductions.

Hayward’s total allocation from the SFPUC for the one-year period beginning on January 1, 2022 and ending on December 31, 2022, based on a 10% system-wide reduction, was an average of 12.8 million gallons per day (mgd). The monthly allocation was budgeted based on historical use patterns, as were all other wholesale agency budgets. As of April 30, 2022, the City had not yet achieved its reduction goals, with usage about 5% over the budget.

Beginning on July 1, 2022 Hayward’s allocation will be an average of 12.9 mgd to reflect the higher 11% reduction goal.

Hayward customers used an average of 14.5 mgd in FY20 - FY21. The allocation of 12.9 mgd from SFPUC is about 11% less. Achieving regional and state reductions will be a challenge given Hayward’s already low usage and current development activity Staff is

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confident that the targets can be reached but success will require additional outreach and customer awareness.

Hayward’s Response to Water Use Reduction Requirements

Water Shortage Contingency Plan Level 2 Measures
To help Hayward achieve regional and state reduction requirements and to comply with the SWRCB’s Emergency Regulation, staff recommends the Council implement WSCP Level 2 conservation measures. Level 2 is designed to respond to a water shortage of 11–20%, and includes all actions in the City’s Water Waste Prohibition Ordinance and WSCP Level 1, designed for a shortage of up to 10%, plus additional, more stringent measures, as described below:

 Increase public information campaign
 Prohibit all non-essential water use for commercial and industrial purposes, including irrigation of non-functional turf
 Provide rebates on plumbing fixtures and devices
 Require repair of leaks and faulty irrigation equipment within 4 days  Limit turf irrigation to 3 days per week
 Prohibit filling of ornamental lakes and ponds
 Decrease flushing of water system lines
 Require covers for pools and spas

It’s important to note that the above actions would be implemented in addition to Hayward’s active water conservation efforts, which include activities such as education and outreach, distribution of water efficient fixtures at no cost to customers, rebates for rain barrels and replacement of turf with water efficient plants.

Implementation Strategies
Staff will utilize available outreach methods to inform and educate customers about the current water supply situation and the importance of reducing water use. Many of the tools used will reflect the City’s successful campaign during the previous drought, when Hayward customers achieved reductions exceeding 20%. Communication strategies will include among others:

 Information on the City’s website, social media, newsletter, and billing inserts  Promotion of the recently launched Water System Customer Portal that allows customers to obtain real-time information on water use
 Follow up on water waste reports submitted through Access Hayward  Regional coordination with other nearby agencies to utilize billboard space and other regional advertising opportunities

Annual Water Supply and Demand Assessment (AWSDA)

The City’s first AWSDA was prepared in compliance with State requirements. The preliminary report was submitted to the State on June 1, 2022 in accordance with the Emergency Regulation using the best information available, and the final assessment will

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be submitted by July 1. Available supplies reflect the allocation from the SFPUC as described earlier in this report. Unconstrained potential demand is based on maximum theoretical projected usage in FY22-23, included in the City’s 2020 UWMP and modified slightly to account for recent actual usage.

The AWSDA indicates a potential potable water shortage of about 20%. Staff anticipates that measures in the WSCP Level 2 water shortage will close the gap between available supply and demand.

2022-23 Annual Water Supply and Demand Assessment
(in mgd)

Water Supply Type Available
Supply
Anticipated
Unconstrained
Demand
Difference Percent
Shortage
Potable - SFPUC 12.9 15.5 2.6 20.1%
Non-Potable - Recycled 0.2 0.2 0.2 0.0%
Total 13.1 15.7 2.6 19.8%

ECONOMIC IMPACT

At this time, implementation of WSCP Level 2 measures is not expected to have a significant impact on customer water rates. However, depending on the duration and severity of drought conditions, there may be impacts on Water Operating Fund revenue as usage declines, placing more pressure on rates and necessitating adjustments in the future to ensure full cost recovery.

While the Emergency Regulation does not place a moratorium on residential development, the SWRCB does encourage urban water providers to carefully evaluate new non-residential development projects for their water demand impacts. Council should also be aware that the water supply shortage could impact approvals of development proposals with potential high- water use that are subject to a Water Supply Assessment as part of the environmental impact review.

FISCAL IMPACT

Water conservation program staffing is provided in the Department of Public Works & Utilities and funded entirely in the Water Operating Fund. There are no General Fund impacts.

Staff uses readily available and low-cost methods to conduct outreach and provide a consistent ongoing message to the community, and also works in partnership with other water agencies where it is beneficial and cost effective to do so. Some staff time is needed to develop and implement programs and analytics, strategic communications, and to follow up on reports of excessive water use. In general, however, approval of the recommended actions is not expected to incur significant fiscal impacts.

STRATEGIC ROADMAP

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This agenda item does not relate to one of the Council’s six Strategic Priorities.

SUSTAINABILITY FEATURES

Hayward customers have long embraced water conservation and efficient use of this important natural resource, regardless of water supply conditions in a given year, as evidenced by Hayward’s overall low per capita usage. Realistic assessment of water supplies and demand on a year-to-year basis, and implementation of the WSCP as needed, enables the City to respond to water supply shortages as conditions change.

PUBLIC CONTACT

While there is no specific public contact required for the Council to approve the recommended actions, it is important to note that the WSCP was adopted after the public had an opportunity to review and comment on the public review draft and the Council conducted a public hearing. If the actions recommended in this report are adopted, staff will implement additional public outreach and education efforts to inform the community of the critical water supply situation and water use restrictions.

NEXT STEPS

If the Council approves the recommended actions, staff will implement WSCP Level 2 measures, including additional public outreach and enforcement, and submit the AWSDA to the State by the July 1, 2022 deadline. Staff will continue to monitor State and Regional water supply information and inform the Council of additional measures that may be needed to reduce water consumption.

Prepared by: Cheryl Muñoz, Water Resources Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:

_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-_____

Introduced by Council Member ____________________

RESOLUTION IMPLEMENTING LEVEL 2 OF THE CITY OF HAYWARD

WATER SHORTAGE CONTINGENCY PLAN

WHEREAS, Governor Newsom issued proclamations on April 21, May 10, July 8, and October 19, 2021 that a state of emergency exists statewide due to drought conditions and urging Californians to reduce their water use; and

WHEREAS, on March 28, 2022, Governor Newsom issued Executive Order No. N-7-22 directing the State Water Resources Board to consider adopting an emergency regulation to increase water conservation; and

WHEREAS, on May 24, 2022, the State Water Resources Control Board adopted an emergency regulation, requiring among other provisions , that urban water suppliers implement Level 2 of their Water Shortage Contingency Plans , which is designed for water shortages of 11 percent to 20 percent; and

WHEREAS, Hayward’s wholesale water supplier, the San Francisco Public Utilities Commission, has requested a voluntary system-wide decrease in water usage of 11 percent, based on FY 2019-20 demand; and

WHEREAS, Hayward is an urban water supplier under the California Water Code Section 10617; and

WHEREAS, the Hayward City Council adopted the 2020 Urban Water Management Plan on July 20, 2021; and

WHEREAS, the 2020 Urban Water Management Plan includes a Water Shortage Contingency Plan, ad opted separately by Resolution No. 21 -167, which in part identifies shortage levels and measures to be implemented at each level; and

WHEREAS, the Hayward City Council supports and encourages water conservation at all times, and recognizes that current water supply conditions call for additional measures.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that Level 2 of the Water Shortage Contingency Plan is hereby implemented, effective immediately, and shall remain in effect until rescinded by the City Council.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA ____________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS

ATTEST: _____________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-391
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Acting Assistant City Manager

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Bay Area Community Services for Fiscal Year 2022-2023 Shallow Rental Subsidy Program Operations in an Amount Not to Exceed $500,000

RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to execute an agreement with Bay Area Community Services (BACS) in an amount not to exceed $500,000 to operate the City’s FY 2023 Shallow Rental Subsidy program.

SUMMARY
In July 2021, Council adopted the Let’s House Hayward! Strategic Plan (LHH Plan), which includes the activity of identifying funds for and developing a shallow subsidy program for extremely low income and high rent burden households. At the same time, Council adopted a federal expenditure plan for allocating the City’sAmerican Rescue Plan Act (ARPA) funding, which included allocating $500,000 a year for three years to fund a shallow rental subsidy pilot program.

Shallow rental subsidy programs are partial rent payments made on behalf of a tenant directly to their landlord to reduce their household rent burden and increase their available income. Figure 1 summarizes the key components of the City’s program, which staff will finalize with BACS before an estimated program launch of September 1, 2022. The eligibility criteria were identified in partnership with BACS and based on existing research demonstrating that prevention programs are most effective at stemming the in-flow into homelessness when they are targeted towards households with the greatest risk of homelessness.

CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
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File #:CONS 22-391
Figure 1. Hayward Shallow Rent Subsidy Program
There is substantial regional support for shallow rental subsidy programs as valuable homelessness prevention strategies, including Alameda County’s Home Together 2026 Plan and the Regional Impact Council’s(convened by All Home) Regional Action Plan (RAP). All Home is also convening providers of these programs throughout the region to share learnings and build on successful findings.

Staff recommends Council adopt the attached resolution authorizing the City Manager to execute an agreement with BACS to operate the City’s FY 2023 Shallow Rental Subsidy program.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 2 of 2
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Page 1 of 8 ends

DATE: June 28, 2022

TO: Mayor and City Council

FROM: Acting Assistant City Manager

SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Bay Area Community Services for Fiscal Year 2022-2023 Shallow Rental Subsidy Program Operations in an Amount Not to Exceed $500,000

RECOMMENDATION

That the Council adopts a resolution (Attachment II) authorizing the City Manager to execute an agreement with Bay Area Community Services (BACS) in an amount not to exceed $500,000 to operate the City’s FY 2023 Shallow Rental Subsidy program.

SUMMARY

In July 2021, Council adopted the Let’s House Hayward! Strategic Plan (LHH Plan), which includes the activity of identifying funds for and developing a shallow subsidy program for extremely low income and high rent burden households.1 At the same time, Council adopted a federal expenditure plan for allocating the City’s American Rescue Plan Act (ARPA) funding, which included allocating $500,000 a year for three years to fund a shallow rental subsidy pilot program. 2

Shallow rental subsidy programs are partial rent payments made on behalf of a tenant directly to their landlord to reduce their household rent burden and increase their available income.

Figure 1 summarizes the key components of the City’s program, which staff will finalize with BACS before an estimated program launch of September 1, 2022. The eligibility criteria were identified in partnership with BACS and based on existing research demonstrating that prevention programs are most effective at stemming the in-flow into homelessness when they are targeted towards households with the greatest risk of homelessness.

1 July 13, 2021, City Council Meeting Agenda and Materials (LHH Plan):
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317- E2797DF45328&Options=&Search=
2 July 13, 2021, City Council Meeting Agenda and Materials (Federal Expenditure Plan):
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028015&GUID=E0215022-6A47-486F-81C4- 9BFB2583AE10&Options=&Search=

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Figure 1. Hayward Shallow Rent Subsidy Program

There is substantial regional support for shallow rental subsidy programs as valuable homelessness prevention strategies, including Alameda County’s Home Together 2026 Plan and the Regional Impact Council’s (convened by All Home) Regional Action Plan (RAP).3,4 All Home is also convening providers of these programs throughout the region to share learnings and build on successful findings.

Staff recommends Council adopt the attached resolution authorizing the City Manager to execute an agreement with BACS to operate the City’s FY 2023 Shallow Rental Subsidy program.

BACKGROUND

Homelessness in Hayward
As of the February 2022 Point -in-Time (PIT) Count , there are 381 people experiencing homelessness in Hayward, which is a 22% reduction in overall homelessness since the last PIT Count in January 2019. There was a 28% decrease among those who are unsheltered (i.e., living outside or in a tent, vehicle, or abandoned building). There was a substantial increase in the proportion of unsheltered individuals living in a tent and a corresponding decrease in the proportion of those living in an RV.

3 Alameda County Health Care Services Agency. Home Together 2026: 5-year plan to end homelessness in Alameda County. Retrieved from https://homelessness.acgov.org/reports.page? 4 Regional Impact Council. Regional Action Plan. Retrieved from https://www.allhomeca.org/regionalactionplan/ Eligibility
•Extremely low income
(30% of AMI or lower)
•Prior experiences of
homelessness
•50% or greater cost
burden
•Reside in a census tract at
high risk for housing
instability and
homelessness
Subsidy Format
•Monthly payment made
directly to landlord
•Lesser of either $800 or
amount required to bring
cost burden under 50%
•18 month period
•Estimated $690 per
month per household,
serving approximately 38
households per year
Implementation
•Online application portal
available in multiple
languages, with staff
availabile to support
applicants
•Outreach to Hayward
COVID-19 rental
assistance program
•Case management
services that meet each
recipient "where they're
at" and leverage existing
suite of BACS services
and partnerships

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The reduction in individuals experiencing homelessness in Hayward likely reflects several factors. The City invested over $15 million in General Fund and special revenue funds to respond to and prevent homelessness since 2018. At the same time, improvements were made to the PIT Count methodology for 2022, including geo-coding the location of where individuals were living, which could result in a shift of individuals previously counted as Hayward residents who may now be more accurately counted as residing in Unincorporated Alameda County or another neighboring jurisdiction.

Let’s House Hayward! Strategic Plan and American Rescue Plan Act Funding Recent analys es reported in the Alameda County Home Together five -year plan to end homelessness indicates that continued and increased investment in prevention and housing are needed to prevent growth in homelessness throughout the County. The City’s LHH Plan is a key element for such continued investment. Adopted on July 13, 2021, the plan uses a racial equity lens, aligns with existing regional plans , centers individuals with lived experience , leverages Hayward’s strengths and previous efforts, addresses Hayward’s unique needs, and establishes a pipeline of projects and programs that are community-driven to set the City up to quickly respond to upcoming funding and partnership opportunities. The LHH Plan contains three over-arching goals:

1. Formalize a Coordinated and Compassionate Citywide Response to Homelessness and Develop Wider Community Understanding and Engagement

2. Increase Availability of and Reduce Barriers to Homeless Crisis Response Services

3. Ensure Access to and Retention of Affordable Permanent Housing

At the same time as adopting the LHH Plan, Council also approved the City’s Federal Stimulus Expenditure Plan, which outlines how the City will spend approximately $38 million in ARPA funding. Table 1 describes the projects from the LHH Plan that were funded through ARPA.

Table 1. Let’s House Hayward! Projects Funded Through ARPA Project Description Total
Allocation
Timing
Community Agency
Funding Augmentation
Supplement annual social
services funding
$500,000 FY23
Extend Hotel Annex Increase contract duration for
Navigation Center Annex,
providing additional two years
of non-congregate shelter
$3,000,000 FY22 & FY23
Expand Winter Warming
Shelter, including Day
Hours
Expand existing shelter to
year-round operations
including a daytime drop-in
center
$2,000,000 FY22 & FY23
Shallow Rent Subsidies
for Homelessness
Prevention
Implement new program to
provide small monthly rent
payments for extremely low-
income households at risk of
homelessness
$1,500,000 FY22, FY23,
& FY24

Page 4 of 8 ends

Project Description Total
Allocation
Timing
Hayward Navigation
Center Contribution
Offset the annual General Fund
contribution for one FY
$1,000,000 FY22
Foreclosure Legal and
Financial Assistance
Legal services with the option
for financial assistance to
prevent foreclosure
$1,000,000 FY22, FY23,
& FY24
First-Time Homebuyer
Down Payment
Assistance/Wealth-
Building Program
Community-informed program
to support wealth-building
through home ownership
assistance
$2,000,000 FY23 & FY24
Relocation Assistance for
Displaced Tenants
Emergency relocation
assistance for low-income
tenants displaced by natural
disaster
$250,000 FY22, FY23,
& FY24
Tax-Defaulted/Foreclosed
Property Program
Program to support local non-
profits’ acquisition of tax-
defaulted or foreclosed
properties
$1,000,000 FY24
TOTAL FUNDING $12,250,000

DISCUSSION

Shallow Rental Subsidy Overview
Shallow rental subsidies are partial rent payments made on behalf of a tenant directly to their landlord to reduce their household rent burden and increase their available income. They are different from deeper subsidies, like those provided through permanent supportive housing programs, which provide enough assistance to ensure renters only pay 30% of their income in rent. It also differs from guaranteed income or universal income programs, which typically provide funds without spending restrictions.

Shallow subsidies are an important solution in the suite of tools for stemming the in-flow of people and families into homelessness, as highlighted by Alameda County’s Home Together 2026 plan and the Regional Action Plan (RAP) developed by the Bay the Regional Impact Council and endorsed by Council in October 2021.5 The Home Together plan recommends focusing prevention resources on those most likely to lose their homes, including implementing and expanding shallow subsidy availability , “for people with fixed or limited income with housing insecurity to relieve rent burden and reduce the risk of becoming homeless.”6 The RAP outlines a 1-2-4 system funding model to house, stabilize, and prevent individuals from re - entering homelessness. The model argues that for every one unit of inte rim housing, there

5 October 26, 2021, City Council Meeting Agenda and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5192086&GUID=57F17E63-FD5D-4D73-B967- 6D5D4AD7CB60&Options=&Search=
6 Alameda County Health Care Services Agency. Home Together 2026: 5-year plan to end homelessness in Alameda County (p. 27). Retrieved from https://homelessness.acgov.org/reports.page?

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should be two units of permanent housing and four units of prevention interventions (e.g., financial assistance, housing problem-solving services, and legal services). In other words, for every one unit of interim housing, the Regional Impact Council model recommends four units of prevention services, such as the shallow subsidy program described in this report. The RAP specifically calls out cash payments, such as shallow subsidies as a priority for implementation.

Both reports highlight the need for flexible subsidies, including shallow subsidies, for halting the inflow of people into homelessness in the region.

City of Hayward Shallow Rental Subsidy Program
Staff recommend contracting with Bay Area Community Services (BACS) to operate Hayward’s Shallow Rental Subsidy (SRS) program. BACS responded to the City’s Request for Proposals (RFP) to operate the program and their proposal clearly demonstrated their qualifications and experience. BACS administered the City’s COVID-19 rental assistance program and currently operates similar SRS programs across the Bay Area. They have a strong existing infrastructure, including an online portal and internal workflows for referral, enrollment, landlord communication, and data tracking. Additionally, the organization provides a full spectrum of services in behavioral health, housing problem -solving, and employment and education supports.

Following Council authorization, staff will work closely with BACS to finalize the SRS program design. Based on initial conversations with BACS and participation in regional prevention working groups convened by All Home ,7 staff propose modeling Hayward’s Shallow Rental Subsidy program off existing shallow subsidy pilot programs throughout the Bay Area, which have been developed through consultation with subject matter experts, regional action plans, and best practices research. Aligning the City’s program with other regional programs allows the City to learn from existing programs, leverage BACS’s established infrastructure, and participate in regional impact discussions and evaluation activities.

7 All Home California: https://www.allhomeca.org/
Figure 2. Hayward Shallow Rent Subsidy Program

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Figure 2 provides an overview of the program design, based on best practices research and existing regional models. Eligibility criteria include households that are extremely low income and severely cost burdened, which means they are paying more than 50% of their income on rent each month . The program will also prioritize households with prior experiences of homelessness who reside in a census tract neighborhood with high risk for housing instability and homelessness.8 Research cited by the County’s Home Together plan supports focusing on these criteria for subsidy eligibility, as extremely low income, history of homelessness, and living in neighborhoods with high rates of poverty all increase the risk of homelessness.

BACS will use a targeted outreach strategy to identify and enroll eligible participants. Outreach will be multi-pronged, with a focus on referrals from the local network of service providers and direct outreach to households that applied for the City’s COVID-19 rental assistance program.

Once enrolled, BACS will make monthly payments directly to participants’ landlords. The stipend amount will be the lesser of either 1) $800 or 2) the amount required to bring the household’s rent cost burden to under 50%. In addition to the monthly stipend, participants will have access to BACS’s Care Coordinators, who will link households to a variety of supportive services, functioning as an individualized resource contact for program participants and providing services that meet participants “where they’re at.” Staff and BACS will work together to identify appropriate outcome indicators for progress reporting. Such indicators may include housing retention and stability, economic stability, food security, and community connection.

Regional Collaboration and Impact

8 Neighborhood risk will be measured using the Urban Institute’s Emergency Rental Assistance Priority Index:
https://www.urban.org/features/where-prioritize-emergency-rental-assistance-keep-renters-their-homes

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As described above, shallow subsidies and other flexible funding models play an important role in Alameda County’s response to homelessness by reducing the in -flow of individuals and families into homelessness. Recognizing the value of and need for these programs, All Home began convening cities developing and implementing shallow subsidy programs, creating space for discussion, learning, and collaboration across the region. Hayward is one of at least four other regional shallow subsidy pilots, including those in the Cities of Oakland and Berkeley, as well as the Counties of Alameda and San Francisco. Through participation in these convenings, the City can learn vital implementation and outcomes lessons from other programs as well as contribute learnings from Hayward’s unique perspective.

Advancing Racial Equity
The disproportionate impact of housing instability and homelessness on Black, Indigenous, and people of color is well documented. Hayward’s most recently available 2022 PIT Count data show that, among individuals experiencing homelessness in a shelter, those identifying as Black/African American, American Indian/Alaska Native, and Native Hawaiian/Pacific Islander are significantly over-represented. In Alameda County, Black/African Americans and Native Hawaiian/Pacific Islanders return to homelessness at higher rates than other racial groups. In an analysis of applicant data for Hayward’s COVID-19 rental assistance program, Black/African American and American Indian/Alaska Native applicants were more likely than all other racial groups to have a prior experience of homelessness.

The Home Together plan calls for addressing racial disparities in new homelessness and returns to homelessness through prevention programs that are targeted to specific household needs. The City of Hayward’s Shallow Rental Subsidy program will be designed with a focus on this call to action by coupling financial assistance with case management services for households most at risk of re-entering homelessness. Focusing eligibility criteria on extremely low income and cost-burdened households with histories of homelessness living in neighborhoods at high risk of housing instability enables Hayward’s Shallow Rental Subsidy program to help reduce the racial disparities among individuals entering homelessness in Hayward.

ECONOMIC IMPACT

The Shallow Rental Subsidy program will have an economic impact on both the specific households served as well as the broader Hayward community. The program will reduce the housing cost burden and increase the available income for approximately 38 households per year for an 18-month period. Those served will be at risk for homelessness, meaning that more households will be able to remain housed in Hayward. This puts less economic stress on existing services that support individuals experiencing homelessness, including emergency response services, the criminal justice system, emergency shelters, and other essential services.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Preserve, Protect, & Produce Housing for All. Specifically, this item relates to the implementation of the following project:

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Project H2, Part b Implement Let’s House Hayward! Strategic Plan: Pilot Shallow Subsidy Program

FISCAL IMPACT

The Shallow Rental Subsidy program is funded through the City’s American Rescue Plan Act (ARPA) allocation and will have no impact on the City’s General Fund. Council authorized an annual allocation of $500,000 for three years for a total ARPA allocation of $1.5 million.

Additionally, the County has highlighted shallow subsidy programs as a priority homelessness prevention strategy . Staff will continue to communic ate with the County to identify opportunities, such as Measure W, for providing ongoing funding sources for shallow subsidy programs.

PUBLIC CONTACT

The Let’s House Hayward! strategic planning process was the primary mechanism for public contact and community engagement for this program. For a detailed discussion of the LHH community engagement activities, please see prior Council items.9,10

NEXT STEPS

Following Council authorization, staff will work with BACS to execute an agreement for one year of operating the Shallow Rental Subsidy Program. Based on anticipated contracting timelines, staff estimates that the program will launch in September 2022. Staff will bring an implementation update to Council at the next Let’s House Hayward! Strategic Plan update.

Prepared by: Amy Cole-Bloom, Management Analyst

Recommended by: Monica Davis, Community Services Manager Dustin Claussen, Acting Assistant City Manager

Approved by:

_________________________________
Kelly McAdoo, City Manager

9 April 20, 2021, City Council Meeting Agenda and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=4916429&GUID=67261A4F-2AD6-499F-98DF- E3EFEC367E21&Options=&Search=
10 July 13, 2021, City Council Meeting Agenda and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317- E2797DF45328&Options=&Search=

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-____

Introduced by Council Member _________________________

RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE

AN AGREEMENT WITH BAY AREA COMMUNITY SERVICES (BACS) FOR FISCAL YEAR 2022-2023 SHALLOW RENTAL SUBSIDY PROGRAM OPERATIONS IN AN AMOUNT NOT-TO-EXCEED $500,000

WHEREAS, Shallow Rental Subsidy programs are a key component of local and regional homelessness prevention strategies as a way to reduce the inflow of at -risk households into homelessness; and

WHEREAS, Council adopted the Let’s House Hayward! Strategic Plan on July 13, 2021, including an activity to develop a Shallow Rental Subsidy program; and

WHEREAS, Council adopted a federal expenditure plan on July 13, 2021, that included allocating $500,000 per year for three years to a Shallow Rental Subsidy program; and

WHEREAS, the City issued a Request for Proposals (RFP) from nonprofit service providers interested in operating a Shallow Rental Subsidy Program on May 2, 2022; and

WHEREAS, BACS submitted a proposal outlining their qualifications and experience, including experience operating the City’s COVID-19 emergency rental assistance program in 2020, operating multiple other comparable programs , providing one -on-one case management, and providing a suite of supportive services.

NOW, THEREFORE, BE IT RESOLVED , that the City Council of the City of Hayward authorizes the City Manager to negotiate and execute the FY 2023 agreement between the City and BACS for an amount not-to-exceed $500,000.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-393
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Solcom for Installation of City Fiber Optic Conduit on West Winton Avenue for the Fire Station 6 and Fire Training Center Project in a Not-to-Exceed Amount of $102,147

RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute an agreement with Solcom for the installation of City fiber optic conduit on West Winton Avenue for the Fire Station 6 (FS6) and Fire Training Center (FTC) project in a not-to-exceed amount of $102,147.

SUMMARY
The new FS6/FTC requires new fiber optic cables to serve the new firehouse and all other buildings on the site. Contra Costa Electric is under contract to install the new 24-strand fiber optic cables in the existing conduits on West Winton Avenue from Hesperian Boulevard to Saklan Road. The location of the existing conduits and cable boxes were obtained from the original construction plans when the conduits and cable boxes were placed in the roadway back in 1998 or twenty-four years ago.

However, during installation of the new 24-strand fiber optic cable, it was discovered that many of the conduits and cable boxes were not in the locations shown on the plans. Many attempts and location techniques utilized in trying to locate the existing conduits and cable boxes proved unsuccessful. As a result, a new fiber optic conduit must be installed. This agreement is for Solcom to install the necessary conduit.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 1 of 1
powered by Legistar™

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DATE: June 28, 2022

TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Solcom for Installation of City Fiber Optic Conduit on West Winton Avenue for the Fire Station 6 and Fire Training Center Project in a Not-to- Exceed Amount of $102,147

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to execute an agreement with Solcom for the installation of City fiber optic conduit on West Winton Avenue for the Fire Station 6 (FS6) and Fire Training Center (FTC) project in a not-to-exceed amount of $102,147.

SUMMARY

The new FS6/FTC requires new fiber optic cables to serve the new firehouse and all other buildings on the site. Contra Costa Electric is under contract to install the new 24-strand fiber optic cables in the existing conduits on West Winton Avenue from Hesperian Boulevard to Saklan Road. The location of the existing conduits and cable boxes were obtained from the original construction plans when the conduits and cable boxes were placed in the roadway back in 1998 or twenty-four years ago. However, during installation of the new 24-strand fiber optic cable, it was discovered that many of the conduits and cable boxes were not in the locations shown on the plans. Many attempts and location techniques utilized in trying to locate the existing conduits and cable boxes proved unsuccessful. As a result, a new fiber optic conduit must be installed. This agreement is for Solcom to install the necessary conduit.

BACKGROUND

The City fiber optic system provides service from City Hall to various City buildings including Fire Station 6. The section of the fiber optic system on West Winton Avenue from Hesperian Boulevard to Saklan Road once included multiple strands of fiber optic cable; however, only 2 strands are active that currently serve the temporary FS6 and further beyond West Winton Ave./Saklan Rd. to the Water Pollution Control Facility (WPCF) on Enterprise Avenue. The new FS6/FTC project requires a 24-strand fiber optic cable, which Contra Costa Electric is contracted to install in the existing conduit from a pullbox at Hesperian Boulevard to the pullbox at Saklan Road where it then enters FS6. When Contra Costa Electric started the work

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on Hesperian Boulevard, they could not find the existing conduits or cable boxes. The existing conduits and cable boxes were obtained from the original construction plans when the conduits and cable boxes were placed in the roadway back in 1998 or twenty-four years ago.

Many attempts and location techniques utilized in trying to locate the existing conduits and cable boxes all proved unsuccessful. Because of this, new conduits and cable boxes need to be installed to serve the new Fire Station 6 and Fire Training Center.

DISCUSSION

The Hayward Municipal Code (HMC section 2-8.09 – 2-8.12) authorizes public works projects consisting primarily of replacement or repair work involving estimated expenditures of City funds in excess of $10,000 to be procured via purchase order or agreement for services, subject to an informal bidding process. On May 20, 2022, the City solicited informal bids for installation of conduit and pull boxes. On June 1, 2022, four (4) bids were received ranging from $92,861 to $249,000. Solcom submitted the lowest bid and specializes in directional boring, the method for installation of the conduit. Staff recommends that Council authorize the City Manager to execute an agreement with Solcom in an amount not-to-exceed $102,147 which includes 10% for contingency, for the installation of a new fiber optic conduit and pull boxes.

This project is categorically exempt from environmental review pursuant to Section 15302 of the CEQA Guidelines relating to replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.

ECONOMIC IMPACT

This agenda item will have no direct impact on the local economy.

FISCAL IMPACT

Staff recommends funding the agreement amount with Solcom through the FS6/FTC project.

The total estimated project cost is $70.9 million. As of FY 2022, Council has authorized an appropriation of $66.7 million. The Adopted FY 2023 CIP budget appropriated the remaining $4.2 million, which will be available July 01, 2022.

The estimated project cost at the time of award are as follows:

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Total $70,901,700

Staff recommends funding the agreement amount of $102,147 through use of Construction Contingency funds. Currently, $2,312,472 of the $5,239,700 construction contingency has been expended.

STRATEGIC ROADMAP

This agenda item supports the Strategic Invest in Infrastructure. Specifically, this item relates to the implementation of the following project:

Project N10: Construct the Fire Station and FTC

SUSTAINABILITY FEATURES

The recommended action for this report will not directly result in physical development, purchase or service, new policy or legislation related to sustainability.

PUBLIC CONTACT

No public contact was made for this item.

NEXT STEPS

If Council approves the resolution, staff will route the agreement to be executed by the City Manager.

Prepared by: Dave Hung, Senior Civil Engineer
Kathy Garcia, Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-________

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A N

AGREEMENT WITH SOLCOM FOR INSTALLATION OF CITY FI BER OPTIC CONDUIT ON WEST WINTON AVENUE FOR THE FIRE STATION 6/FIRE TRAINING CENTER PROJECT IN AN AMOUNT NOT-TO-EXCEED $102,147

WHEREAS, the construction of the new Fire Station 6 /Fire Training Center project requires new fiber optic cables; and

WHEREAS, Contra Costa Electric is contract ed to install the new fibe r optic cables in the existing conduit from He sperian Boulevard to Saklan Road; however, there is not a clear path in the conduit and new fiber optic conduit and cable boxes must be installed to serve the new Fire Station 6/Fire Training Center; and

WHEREAS, t he H ayward Municipal Code (HMC section 2 -8.09 – 2-8.12) authorizes public works projects consisting primarily of replacement or repair work involving estimated expenditures of City funds in excess of $10,000 to be procured via purchase order or agreement for services, subject to an informal bidding process; and

WHEREAS, On May 20, 2022, the City solicited informal bids for installation of conduit and pull boxes and received four (4) bids on June 1, 2022 ranging from $92,861 to $249,000; and

WHEREAS, Solcom submitted the lowest bid and specializes in directional boring, the method for installation of the conduit ; and

WHEREAS, this work is categorically exempt from env ironmental review pursuant to section 15302 of the CEQA Guidelines relating to re placement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the C ity Manager is hereby authorized to negotiate a nd execute, on behalf of the City of Hayward, an agreement with Solcom for installation of fiber optic conduit and cable boxes to serve the new Fire Station 6/Fire Training Ce nter, in an amount not-to-exceed $102,147, in a form approved by the City Attorney.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-394
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute a Cooperative Agreement with the California Department of Transportation (Caltrans) for Reimbursement from the Local Alternative Transportation Improvement (LATIP) Funds for the Traffic Signal Improvements on Jackson Street (Formerly SR-92)

RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute a Cooperative Agreement with California Department of Transportation (Caltrans) for reimbursement of $531,000 from the Local Alternative Transportation Improvement Program (LATIP) funds for the traffic signal improvements on Jackson Street, formerly SR-92.

SUMMARY
Improvements to the traffic signals on Jackson Street were included in the original Mission Boulevard Phase 2 (Phase 2) project but removed from the construction documents during bidding due to bidder concerns that required additional time to design. The construction of Mission Boulevard Phase 2 has been completed without the traffic signal improvements on Jackson Street. The California Transportation Commission (CTC) has reallocated the remaining LATIP funds from Phase 2 to the traffic signal improvements on Jackson Street project. Because Caltrans administers and reimburses the LATIP funds, a cooperative agreement between the City and Caltrans is necessary. Staff recommends authorizing the City Manager to execute this cooperative agreement.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 1 of 1
powered by Legistar™

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DATE: June 28, 2022

TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute a Cooperative Agreement with the California Department of Transportation (Caltrans) for Reimbursement from the Local Alternative Transportation Improvement (LATIP) Funds for the Traffic Signal Improvements on Jackson Street (Formerly SR-92)

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to execute a Cooperative Agreement with California Department of Transportation (Caltrans) for reimbursement of $531,000 from the Local Alternative Transportation Improvement Program (LATIP) funds for the traffic signal improvements on Jackson Street, formerly SR-92.

SUMMARY

Improvements to the traffic signals on Jackson Street were included in the original Mission Boulevard Phase 2 (Phase 2) project but removed from the construction documents during bidding due to bidder concerns that required additional time to design. The construction of Mission Boulevard Phase 2 has been completed without the traffic signal improvements on Jackson Street. The California Transportation Commission (CTC) has reallocated the remaining LATIP funds from Phase 2 to the traffic signal improvements on Jackson Street project.

Because Caltrans administers and reimburses the LATIP funds, a cooperative agreement between the City and Caltrans is necessary. Staff recommends authorizing the City Manager to execute this cooperative agreement.

BACKGROUND

The LATIP was approved by Caltrans on November 19, 2009 for the purpose of supporting the Central Alameda County LATIP to fill the highway transportation infrastructure needs that were created when the Route 238 Hayward Bypass project was not pursued. The CTC approved the LATIP resolution on June 30, 2010. Projects included in the LATIP are funded from proceeds of the sale of the properties originally purchased for the now defunct Hayward Bypass Project.

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One of the top priority projects in the LATIP is the Route 238 Corridor Improvement Project in the City of Hayward, which is programmed for a total of $30 million in LATIP funds. This project included the design and construction in three phases:

 Phase 1 included roadway and street improvements on Mission Boulevard (SR 238) from A Street to Industrial Parkway, Jackson Street (SR-92) from Watkins Avenue to Mission Boulevard and Mission Boulevard (SR-185) from Foothill Boulevard to A Street. The CTC allocated $8.1 million LATIP funds in August 2013 for Phase 1 construction which was completed in January 2014.

 Phase 2 included roadway and street improvements on Mission Boulevard (SR-238) from Industrial Parkway to the south City limit and Jackson Street (SR-92) from Watkins Street to Santa Clara Street. Improvements on Jackson Street was limited to the addition of the adaptive traffic management system (SCATS) to the traffic signals at the intersections on Jackson Street within the project limits. The CTC allocated $2 million for the design phase for Phase 2 and Phase 3 (preliminary design) in August 2014, and $19.9 million for the construction phase in October 2017. Construction for the Mission Boulevard segment was completed in April 2021.

 Phase 3 improvements are on Mission Boulevard (SR-185) from A Street to the north City limit. This phase of the project is anticipated to begin construction later this year and will utilize local funds.

At the October 2017 CTC meeting, the CTC relinquished the State Routes described in Phases 1, 2, and 3 to the City.

DISCUSSION

Phase 2 of the project included improvements to the portions of Mission Boulevard from Industrial Parkway to the south City limit (Segment 1) and Jackson Street from Watkins Street to Santa Clara Street (Segment 2). The construction of Phase 2, Segment 1 has been completed. The scope of work for Segment 2 was originally included in Segment 1; however, was removed from bid documents during the bidding phase of Segment 1 in 2017 due to bidder concerns that it required additional time to design. The work on Jackson Street includes improvements to the traffic signals to include new controllers, SCATS, video detection, and cameras at four existing intersections. The streets intersecting Jackson Street are Amador Street, Soto Road, Winton Avenue, and Meek Avenue.

In an effort to adapt signal timing to traffic conditions in real time, SCATS has been incorporated at signalized intersections on major roadways within the City including Mission Boulevard and Foothill Boulevard. These systems rely on video detection cameras and related equipment to collect necessary vehicle, bicyclist, and pedestrian volumes that are the primary basis for the signal timing adaption. The main benefits of deploying SCATS technology are the improvement of traffic flow and travel time, less congestion, reduction of greenhouse gas emissions, response times to resident concerns, faster response times to collection of traffic data, and improving efficiencies.

Of the Phase 2 original allocation of $19.9 million, $19,369,000 has been expended with $531,000 remaining. The remaining amount is needed for the design, construction, and

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construction support for Segment 2. At the March 2022 CTC meeting, the allocation was amended to utilize the remaining $531,000 funds to complete the originally scoped work on Jackson Street.

LATIP funds require Caltrans to administer the program including reimbursement of the $531,000. As such, a cooperative agreement between the City and Caltrans is needed. Staff recommends that that Council authorizes the City Manager to execute the cooperative agreement.

ECONOMIC IMPACT

Improvements to the City’s traffic signal system make the overall transportation system more efficient which may result in positive economic benefits for businesses around the area.

FISCAL IMPACT

There is no impact to the General Fund as the adopted FY 2022 Capital Improvement Program’s Route 238 Corridor Improvement (Fund 410) includes $19.9 million in LATIP funds, which includes $531,000 for the design, construction and construction support for traffic signal improvements on Jackson Street.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Invest in Infrastructure. Specifically, this item relates to the implementation of the following project:

Project N7a: Complete construction of Mission Boulevard Phase 2

SUSTAINABILITY FEATURES

Improvements to the traffic signals will reduce environmental impacts like greenhouse gas emissions and enhance the overall quality of life for residents and businesses.

This project is categorically exempt from environmental review pursuant to Section 15301(c) of the CEQA Guidelines because it is a project consisting of repair, maintenance or minor alteration of existing structures or facilities and involves negligible or no expansion of the existing use.

PUBLIC CONTACT

No public contact was made for the implementation of the cooperative agreement.

NEXT STEPS

If Council approves the resolution, staff will route the agreement to be executed by the City Manager. Design will commence after the agreement is executed by Caltrans.

Prepared by: Dave Hung, Senior Civil Engineer
Kathy Garcia, Deputy Director of Public Works

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Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-________

Introduced by Council Member _______________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

COOPERATIVE AGREEMENT WITH CALTRANS FOR REIMBURSEMENT FROM

THE LATIP FUNDS FOR THE TRAFFIC SIGNAL IMPROVEM ENTS ON JACKSON STREET (FORMERLY SR92)

WHEREAS, the Local Alternative Transportation Improvement Program (LATIP) included Phase 2 , SR 238 Mission B oulevard from Industrial Parkway to the south City limit and SR 92 Jackson Street from Watkins Street to Santa Clara Street;

WHEREAS, California Transportation Commission (CTC) in October 2017 allocated $19,900,000 for the construction phase of Phase 2;

WHEREAS, construction for the Phase 2 Mission Boulevard segment was completed in April 2021 and expended $19,369,000 in LATIP funds;

WHEREAS, the scope of work for Jackson Street was originally included in Phase 2 of Mission B oulevard; however, removed from bid document during the bidding phase due to bidder questions that required additional time to design;

WHEREAS, the improvements to the traffic signals on Jackson Street includes new controllers, adaptive traffic management system (SCATS), video detection and PTZ cameras at four existing intersection s on Jackson Street at Amador Street, Soto Road, Winton Avenue and Meek Avenue;

WHEREAS, during the March 2022 CTC meeting, the LATIP allocation was amended to utilize the remaining funds of $531,000 to complete the originally scoped work on Jackson Street;

WHEREAS, Caltrans and the City of Hayward are authorize d to enter in to a cooperative agreement for the Jackson Street traffic signal improvements;

WHEREAS, Caltrans will reimburse the City of Hayward $531,000 from the LATIP funds;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized to execute a Caltrans Cooperative Agreement for the reimbursement of $531,000 from the LATIP funds for the design, construction contract and construction support phases of the Jackson Street traffic signal improvements.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-414
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Finance

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with MuniServices, LLC for a One-Year Contract for FY 2023 Sales Tax Auditing Services

RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute Amendment No. 3 to the Professional Services Agreement with MuniServices, LLC for a one-year contract for FY 2023 sales tax auditing services.

SUMMARY
The City engages with MuniServices, LLC to provide Sales and Use Tax Allocation Audits and Information Services (STARS), Utility Users’ Tax/Franchise Compliance and Revenue Protection (also known as UUT), Transient Occupancy Tax (TOT) Audits and Compliance, and Local Tax Compliance (LTC). Quarterly sales and use tax analysis reports are reviewed by the City and the Consultant to inform and provide analysis to the City of its top revenue producers, as well as shifts in the local, state, and national economy and legislation related to sales and use tax.

This RFP will close on July 22, 2022. Staff will then begin the review process of choosing a vendor to award these services to for FY 2024.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 6/24/2022Page 1 of 1
powered by Legistar™

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DATE: June 28, 2022

TO: Mayor and Council Members

FROM: Director of Finance

SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with MuniServices, LLC for a One -Year Contract for FY 2023 Sales Tax Auditing Services

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to execute Amendment No. 3 to the Professional Services Agreement with MuniServices, LLC for a one- year contract for FY 2023 sales tax auditing services.

SUMMARY

The City engages with MuniServices, LLC to provide Sales and Use Tax Allocation Audits and Information Services (STARS), Utility Users’ Tax/Franchise Compliance and Revenue Protection (also known as UUT), Transient Occupancy Tax (TOT) Audits and Compliance, and Local Tax Compliance (LTC). Quarterly sales and use tax analysis reports are reviewed by the City and the Consultant to inform and provide analysis to the City of its top revenue producers, as well as shifts in the local, state, and national economy and legislation related to sales and use tax.

The proposed amendment will bring the total term of services from MuniServices to eight years. The limited contract extension will allow staff appropriate time to complete the Request for Proposals (RFP) process. Staff issued a competitive RFP for sales tax auditing services in May 2022 for FY 2024 services. This RFP will close on July 22, 2022. Staff will then begin the review process of choosing a vendor to award these services to for FY 2024.

BACKGROUND

The City contracts with MuniServices to provide sales tax auditing services, which includes identifying and ensuring receipt of misallocated or underreported tax revenues. Revenue reporting services include quarterly written reports and briefings concerning revenue performance, trend analysis, gains and declines, revenue projections, enhanced recovery options, and an analysis of present and future issues related to revenue recovery.

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DISCUSSION

Quarterly sales and use tax reports from MuniServices provide the foundation for the City’s sales and use tax revenue projections. Analysis includes information from the California Department of Tax and Fee Administration (CDTFA), the state agency that administers sales and use tax. Reports by MuniServices include information of the City’s top revenue producers, indication of revenue changes by business and economic category, identification of major businesses that influence change in the City’s tax revenue, analysis of key businesses that grew or declined during the reporting period, identification of the top revenue generators in the city, and an analysis of their potential growth or decline.

Sales, Transaction and Use Tax Allocation Audits and Information Services (STARS) MuniServices assists the City in realizing sales, transactions and use tax revenue that the City is entitled to. MuniServices’ allocation audit service detects and corrects taxpayer reporting errors and thereby generates new sales, transactions and use tax revenue, which would not otherwise have been realized by the City. They identify new revenue without causing any additional tax liability for businesses. Compensation for these services is 15% of the new sales, transactions and use tax revenue received by the City as a result of MuniServices detecting and correcting the related point-of-sale/use distribution error. STARS reports are billed at $1,750.00 quarterly.

Utility Users’ Tax/Franchise Compliance and Revenue Protection (UUT) MuniServices provides the City with certain professional services in furtherance of a comprehensive Utility Users’ Tax/Franchise Compliance and Revenue Protection program, with broad participation by California public agencies that are designed to preserve, protect, and enhance its UUT and Utility Franchise Revenues.

The contract with MuniServices also includes the legal services of Donald H. Maynor, who provides the City with assistance related to UUT revenue protection services, legal interpretation of the City’s ordinance, and Federal and State laws that currently exist or will be proposed impacting these issues. The City’s annual fixed fee for participating in the program is 0.5% of the total UUT revenues received based on the prior fiscal year, with a minimum of $15,000 and a maximum of $106,400.

Transient Occupancy Tax and Compliance Program (TOT)
MuniServices assists the City to realize TOT revenue to which it is entitled. They also educate collectors and remitters of TOT to assist in future compliance with the City's ordinances.

MuniServices requires prior approval from the City should the cost of these services exceed $1,500 per lodging property review.

Local Tax Compliance Program (LTC)
MuniServices' LTC service assists the City in locating tax revenue that the City may not be receiving from its local tax registry by detecting, documenting, and assisting with the correction of errors and omissions made by taxpayers who are subject to the local business tax. The LTC service also aims to reduce future errors by informing the businesses that are identified as having errors and omissions about the proper methods for compliance.

Informing business owners of the requirements of the ordinance helps to prevent future

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mistakes by businesses, making future enforcement efforts by the City less burdensome for the City. Compensation for these services is 35% of the additional revenue received.

The existing contract with MuniServices expires on June 30, 2022. Staff requests Council authorization to extend the term of the contract to June 30, 2023. This will allow the City sufficient time to complete the currently issued Request for Proposals (RFP) and award an agreement for services upon the next expiration.

ECONOMIC IMPACT

There is no significant impact on the local economy related to the renewal of this routine service contract.

FISCAL IMPACT

There are sufficient funds budgeted in the FY 2023 operating budget to cover the cost associated with the amended professional services agreement for sales tax auditing services.

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to any of the six priorities outlined in the Council’s Strategic Roadmap.

SUSTAINABILITY FEATURES

There are no sustainability features associated with this report.

PUBLIC CONTACT

The agenda for this item was posted in compliance with the California Brown Act.

NEXT STEPS

Upon approval of this agreement, staff will continue to work with MuniServices on sales tax auditing services for the next twelve months, allowing the City time to thoroughly review the proposals received.

Prepared and Recommended by: Dustin Claussen, Director of Finance

Approved by:
_____________________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-______

Introduced by Council Member ______________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTING SERVICES

AGREEMENT WITH MUNISERVICES, LLC TO EXTEND THE TERM OF THE

CONTRACT FOR ONE YEAR

WHEREAS, MuniServices, LLC is an industry leader in Tax Allocation Audit and Information Services, Ut ility Users’ Tax/Franchise Compliance and Revenue Protection, Transient Occupancy Tax and Compliance, and Local Tax Compliance for financial support with City resident and business tax laws; and

WHEREAS, MuniServices, LLC will allow for the electronic preparation and analysis of the City’s top revenue producers, and analysis of shifts in the local, state, and national economy and legislation related to sales and use tax; and

WHEREAS, the contract between City and MuniServices, LLC is scheduled to terminate on June 30, 2022.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward authorizes the City Manager to execute a one-year contract extension with MuniServices, LLC to provide sales tax auditing services for FY 2023, in a form approved by the City Attorney.

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: _______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-420
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Maintenance Services

SUBJECT
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Allied Universal Technology to Integrate Additional Facilities for Purchase and Implementation of a Consolidated Phase 2 Access Control System and Appropriation of $100,000 from the Hayward Executive Airport CIP Fund 621

RECOMMENDATION
That Council adopts resolutions (Attachments II and III) authorizing the City Manager to negotiate and execute an agreement with a vendor to integrate additional facilities in the Access Control System, in an amount not to exceed $1,043,838 Phase II.

SUMMARY
The security of City-owned buildings is vital to the security of City assets and safety of staff. Currently, the City utilizes multiple types of building access control systems within various city facilities that do not communicate with one another. The City sought to implement a single complete network Access Control System (ACS) for all existing city facilities specified in the request for proposals. Given the dire state of the current fragmented ACS, staff recommended signing a contract for the implementation of a new and consolidated ACS. The project was awarded in early FY 2022 and the initial phase (Phase 1 of 3) is now complete. Consistent with the initial project phase, the proposed project scope for Phase 2 includes video surveillance and a complete access control system in the City’sCorporation Yard, Weekes Branch Library, and the Hayward Executive Airport. Additionally, to ensure all City facilities operate on a single, consolidated platform, the 21st Century Library and Learning Center’sexisting access card readers will be integrated into the new citywide Access Control System as part of this proposed phase of the project.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution I
Attachment III Resolution II
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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Director of Maintenance Services

SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Allied Universal Technology to Integrate Additional Facilities for Purchase and Implementation of a Consolidated Phase 2 Access Control System and Appropriation of $100,000 from the Hayward Executive Airport CIP Fund 621

RECOMMENDATION

That Council adopts resolutions (Attachments II and III) authorizing the City Manager to negotiate and execute an agreement with a vendor to integrate additional facilities in the Access Control System, in an amount not to exceed $1,043,838.

SUMMARY

The security of City-owned buildings is vital to the security of City assets and safety of staff.

Currently, the City utilizes multiple types of building access control systems within various city facilities that do not communicate with one another. The City sought to implement a single complete network Access Control System (ACS) for all existing city facilities specified in the request for proposals. Given the dire state of the current fragmented ACS, staff recommended signing a contract for the implementation of a new and consolidated ACS. The project was awarded in early FY 2022 and the initial phase (Phase 1 of 3) is now complete.

Consistent with the initial project phase, the proposed project scope for Phase 2 includes video surveillance and a complete access control system in the City’s Corporation Yard, Weekes Branch Library, and the Hayward Executive Airport. Additionally, to ensure all City facilities operate on a single, consolidated platform, the 21st Century Library and Learning Center’s existing access card readers will be integrated into the new citywide Access Control System as part of this proposed phase of the project.

BACKGROUND

The City’s current multi-site ACS is disjointed, lacks integration, and the solution at all locations has reached or exceeded their respective end of useful life cycle. To resolve the problem, staff determined a single complete network Access Control System would provide the best solution. Staff conducted research regarding technology changes in security access

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and created an inter-departmental working group to identify requirements of the ACS. Staff wanted one integrated security suite with web access to allow for a single view that allows each location to manage its own permissions.

An integrated ACS will help organize permissions in a consistent manner throughout all city facilities and will support a safe and more secure working environment through consolidated and managed access. The ACS will serve as the backbone of the City’s physical security. The ACS integrates with the current independent video monitoring system to allow for a “single dashboard” view for the security system and the visitor management system. Once fully installed and operable, the ACS can be expanded to support staff’s desire to fully integrate with the City’s Building Management System, Intrusion Alarm System, Fire Alarm Systems, and a Panic Button system.

Staff conducted an assessment and analysis of all City-owned and staff-occupied facilities to determine an appropriate scope of work for replacing the current building access system and installing controlled access at all necessary facilities.

Phase II of the project will include video surveillance and a complete access control system in the City’s Corporation Yard, Weekes Branch Library, and the Hayward Executive Airport. To ensure all facilities operate on a single, consolidated platform, the 21st Century Library and Learning Center’s existing access card readers will be integrated into the new Access Control System as part of this proposed phase of the project. In addition to the included city facilities, access control will also be installed at the primary gates for vehicular access coupled with RFID readers being installed in all City-owned fleet vehicles for ease of access into these secure facilities.

DISCUSSION

From this assessment, staff prepared a detailed request for proposals (RFP) to award one vendor a contract to procure, design, install, and configure a complete network access control system for the City facilities for Phase I with the intention to include Phase II and III in an amendment at a future date. The RFP was advertised as required and staff conducted direct outreach to possible vendors. A mandatory pre-bidders meeting was conducted on July 14, 2020 and was attended by eighteen (18) companies. A total of eight (8) companies provided proposals.

A panel of staff members who were identified from various city facilities convened to review and evaluate the proposals and participate in virtual interviews with the applicants. To be considered for evaluation, the proposal for the ACS was to allow departments to manage their own accessibility and hardware platform must be capable of connecting and managing remote electronic access readers at the various COH Department properties. Access authorization should be managed and controlled remotely through any COH network via login by

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designated user administrator responsible for their respective controlled building locations.

The ACS reader should activate on contact with FOB or proximity card. Additionally, functionality and capability, such as smartphone app, non-touch proximity technology and integration with our current video surveillance system were preferred.

STRATEGIC ROADMAP

This agenda item supports the strategic priority outlined in the Strategic Roadmap related to Improving Organizational Health through expanded and standardized physical security.

FISCAL IMPACT

The proposed agreement for Phase II reflects a total project cost of $1,043,838, these costs will be shared proportionately based on scope between Facilities Management and the Hayward Executive Airport as described below:

Facilities Management Division
CIP 726 & ARPA 103

Project Phase Project Cost Funding Source Allocated Budget Phase II $721,838 CIP 726 FY 2023 $493,838
ARPA 103 FY 2023 $300,000
Contingency Cost 10% $72,000

Total Phase II

$793,838

Facilities portion of this project is $793,838, funded from the Facilities CIP Fund 726 ($493,838) and Facilities Fund 103- American Rescue Plan ($300,000) to complete Phase II of the consolidated access control project. All funds shown in the Facilities Management Division table have been previously appropriated.

Hayward Executive Airport
CIP 621

Project Phase Project Cost Funding Source Allocated Budget Phase II $215,000 CIP 621 FY 23 $150,000
Contingency Cost $35,000
Additional
appropriation
needed from CIP
621 Fund Balance
$100,000

Total Phase II

$250,000

$250,00

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Hayward Executive Airport’s portion of the project is $250,000, of which $150,000 is programmed into FY 2023 CIP 621. Staff is seeking an additional appropriation of $100,000 from the Hayward Executive Airport’s Capital Improvement Fund (Fund 621). This amount will be appropriated from fund balance in the fund to the project (Project 06830 Access Control System).

There is no impact to the City’s General Fund associated with this action. Future phase 3 would be subject to appropriation of funds by City Council.

NEXT STEPS

If Council approves the attached resolutions, staff will finalize the agreement with the awarded vendor and cause the agreement to be executed.

Prepared by: Liz Sanchez, Management Analyst II

Recommended by: Todd Rullman, Director of Maintenance Services Adam Kostrzak, IT Director

Approved by:

_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL
RESOLUTION NO. 22-____
Introduced by Council Member ____________

RESOLUTION AUTHORIZING AND APPROPRIATING ONE HUNDRED THOUSAND DOLLARS ($100,000) TO THE AIRPORT CAPITAL IMPROVEMENT FUND (FUND 621) FOR PHASE I I OF THE AIRPORT ACCESS CONTROL SYSTE M PROJECT , PROJECT NO. 06830

WHEREAS, the FY 2022 Capital Improvement Program includes $150,000 in the Airport Capital Improvement Fund (Fund 621) to purchase and install Phase II of the access control system at Hayward Executive Airport; and

WHEREAS, an additional appropriation in an amount not to exceed $100,000 is required to complete the installation of Phase II of the access control system at Hayward Executive Airport; and

WHEREAS, this appropriation will allow for the completion of Phase II of the access control system at Hayward Executive Airport, at a total cost of $250,000.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby approves and appropriates one hundred thousand dollars ($100,000) from the fund balance of the Airport Capital Improvement Fund (Fund 621) into the Airport Access Control System project, Project No. 06830.

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

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HAYWARD CITY COUNCIL
RESOLUTION NO. 20-______
Introduced by Council Member ________

RESOLUTION AUTHORIZING THE CIT Y MANAGER TO NEGOTIATE AND

EXECUTE AN AGREEMENT WITH ALLIED UNIVERSA L TECHNOLOGY FOR PHASE 2 INTEGRATION OF ADDIT IONAL FACILITIES INT O THE ACCESS

CONTROL SYSTEM

WHEREAS, the security of City-owned buildings is vital to the security of City assets and safety of staff; and

WHEREAS, the City seeks to i mplement a single network Access Control System (ACS) for all existing City facilities; and

WHEREAS, on June 18, 2020 , the City issued request for proposals (RFP) to award a contract to procure, design, install and configure a complete network access control system for the City facilities; and

WHEREAS, in response to the RFP, the City received eight (8) proposals; and

WHEREAS, based on an objective evaluation of the proposals, the City interviewed five vendors; and

WHEREAS, the City selected the best qualified vendor to implement the City-wide ACS.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby authorizes the City Manager to negotiate and execute an agreement with Allied Universal Technology to purchase and implement Phase 2 of the Access Control System, in an amount not to exceed $1,043,838, in a form to be approved by the City Attorney.

ATTACHMENT III

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: WS 22-025
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Acting Assistant City Manager

SUBJECT
Community Agency Funding Process Review

RECOMMENDATION
That the Council: 1. reviews and comments on this report; and 2. affirms the Community Services Commission’s Community Agency Funding modification recommendations.

SUMMARY
Annually, the City receives applications from community agencies requesting funding through the competitive Community Agency Funding (CAF) process. The Community Services Commission (CSC) serves as an advisory body to the Hayward City Council and is responsible for reviewing the applications, interviewing applicants, and making recommendations to the Council for how a portion of the City’s General Fund and the City’s Community Development Block Grant (CDBG) entitlement award should be allocated. As part of the CAF process, the CSC Chair appoints three Application Review Committees (ARCs) to conduct applicant interviews and make preliminary recommendations for full CSC consideration.

The amount of funding requested from community agencies through the CAF process has steadily increased with FY 2023 representing the largest disparity between agencies’ funding requests and the amount of available funding. The CSC has expressed concern about how challenging the process has become to decide which agencies to fund. As a result, the CSC has requested support and direction from the Council to clarify Council’s funding priorities and to receive feedback on the CAF process. On October 26, 2021, Council authorized the Mayor to appoint three members of Council to form a sub-group to work with a committee of the Community Services Commission to review and discuss the CAF process.

The joint subcommittee met on three occasions to discuss the CAF process and provide recommendations to the CSC for further consideration. The CSC has reviewed and discussed the joint subcommittee’s recommendations and is providing the following recommendations for Council consideration:

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Recommended Services Funding Caps:
· Utilize a cap for Services funding
o $100,000 for housing and homelessness, and
o $50,000 for other services
Recommended Funding Allocation for New and Innovative Programs:
· Include a priority for funding 20-30% of applications for new and innovative programs Recommended Funding for Safety Net Programs:
· No single agency should receive guaranteed funding
· Staff will identify programs that support safety net services during the CAF process Recommended Arts and Music Funding Guidelines:
· New Agencies may receive up to $30,000 in financial support for one year · Signature Agencies, up to $25,000 for programs that have been funded 1-5 year(s). · Classic Agencies, (+5 years) up to $20,000 in grant funding, not to exceed 60% of the total estimated program budget
Recommended Audit Requirements:
· Increase audit requirement threshold to $20,000
· Require agencies requesting less than $20,000 to provide a financial letter of good standing in place of partnering with a fiscal administrator

ATTACHMENTS
Attachment I Staff Report
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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Acting Assistant City Manager

SUBJECT: Community Agency Funding Process Review

RECOMMENDATION

That the Council: 1. reviews and comments on this report; and 2. affirms the Community Services Commission’s Community Agency Funding modification recommendations.

SUMMARY

Annually, the City receives applications from community agencies requesting funding through the competitive Community Agency Funding (CAF) process. The Community Services Commission (CSC) serves as an advisory body to the Hayward City Council and is responsible for reviewing the applications, interviewing applicants, and making recommendations to the Council for how a portion of the City’s General Fund and the City’s Community Development Block Grant (CDBG) entitlement award should be allocated. As part of the CAF process, the CSC Chair appoints three Application Review Committees (ARCs) to conduct applicant interviews and make preliminary recommendations for full CSC consideration.

The amount of funding requested from community agencies through the CAF process has steadily increased with FY 2023 representing the largest disparity between agencies’ funding requests and the amount of available funding. The CSC has expressed concern about how challenging the process has become to decide which agencies to fund. As a result, the CSC has requested support and direction from the Council to clarify Council’s funding priorities and to receive feedback on the CAF process. On October 26, 20211, Council authorized the Mayor to appoint three members of Council to form a sub-group to work with a committee of the Community Services Commission to review and discuss the CAF process.

1 October 26, 2021, Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5192084&GUID=A2A6DA3D-E012-4AA3-BD19- F634B3A66DAD&Options=&Search=

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Recommended Services Funding Caps:
 Utilize a cap for Services funding
o $100,000 for housing and homelessness, and
o $50,000 for other services

Recommended Funding Allocation for New and Innovative Programs:
 Include a priority for funding 20-30% of applications for new and innovative programs

Recommended Funding for Safety Net Programs:
 No single agency should receive guaranteed funding
 Staff will identify programs that support safety net services during the CAF process

Recommended Arts and Music Funding Guidelines:
 New Agencies may receive up to $30,000 in financial support for one year  Signature Agencies, up to $25,000 for programs that have been funded 1-5 year(s).  Classic Agencies, (+5 years) up to $20,000 in grant funding, not to exceed 60% of the total estimated program budget

Recommended Audit Requirements:
 Increase audit requirement threshold to $20,000
 Require agencies requesting less than $20,000 to provide a financial letter of good standing in place of partnering with a fiscal administrator

BACKGROUND

Each year, the City receives applications from community agencies requesting funding through the competitive CAF process. The CSC serves as an advisory body to the Council. The CSC makes recommendations to Council regarding the distribution of Infrastructure and Economic Development (CDBG), Public/Social Services (CDBG/General Fund), and Arts and Music (General Fund) program funding through the annual CAF process. The CSC reviews all eligible applications, and the CSC Chairperson appoints three ARCs by funding category (Infrastructure/Economic Development, Public/Social Services, and Arts and Music) to conduct applicant interviews prior to drafting funding recommendations for Council review and approval.

At the April 6, 20212 work session, Council discussed the Fiscal Year 2022 CAF recommendations and acknowledged the growing gap in funding requested compared to funding available. As part of that discussion, Council addressed the long-term impacts of the COVID-19 pandemic and emphasized the need to continue funding services that address issues deepened by the pandemic, such as housing instability, mental health, isolation, economic recovery, and food security. Council also expressed interest in continuing to

2 April 6, 2021, Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=4900848&GUID=0756954E-CDD8-42B5-A710- 8E4297DE0140&Options=&Search=

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examine the funding process and criteria in order to focus future funding in a manner that allows for innovation, promotes equity, and serves all people in Hayward.

Similarly to prior years, the amount of FY 2023 funding requested for both General Fund and CDBG allocations exceeded available funding. The increase in requested funds, even with the additional ARPA funding, resulted in a highly competitive funding allocation process for the FY 2023 cycle.

The increase in requested funds without an increase in available funds resulted in an even more competitive funding allocation process during the FY 2023 funding process. There have been previous CAF review processes both internal to the CSC and with Council. The CSC has also expressed concern about how challenging the process has become to decide which agencies to fund. As a result, the CSC has requested support and direction from Council to clarify Council’s funding priorities and to receive feedback on the CAF process.

DISCUSSION

The increasing disparity between agencies’ funding requests and the amount of available funding coupled with the ongoing impacts of the COVID-19 pandemic has raised the need for further discussions around the CAF process and priorities. Specifically, during the May 20213 and July 20214 CSC meetings, commissioners outlined the following questions for Council feedback:

 Are there priority categories that Council would like to see funding allocated towards as part of the CAF process? For example, are food insecurity and homelessness still key areas of focus?

 Is the CAF process through the CSC a piece of the broader City Goals (such as Let's House Hayward and the City’s Strategic Roadmap)?

 Are programs that serve a large number of Hayward residents, but are able to secure funding from other sources, a priority over programs that have fewer funders, but meet a specific need not met by other providers?

 Similarly, do Hayward-based organizations have priority over organizations from other areas that may provide a unique service?

 Are there services that must be part of every funding allocation due to Council priority, political will, historical success, etc.?

 Should CAF be a sustainable funding source for agencies, or should CAF be funding for new programs in the community?

3 May 19, 2021, Staff Report and Attachments:
https://hayward.legistar.com/MeetingDetail.aspx?ID=861278&GUID=9EBDE9B2-2B3C-4793-9930- 72EDA7F71813&Options=info|&Search=
4July 21, 2021, Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5033739&GUID=2D6BF062-974E-4E32-BAC6- 0FE7E3AAD1AE&Options=&Search=

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 What impact does the CSC’s deliberative funding process and recommendations have on Council’s decision on funding allocations?

 Does Council desire to review of the CAF priorities with the CSC annually?

At the July 2021 meeting, the CSC appointed five Commissioners to convene a CSC CAF Review Committee (Committee) to discuss options for potential revisions to the CAF process.

Additionally, the CSC has requested support and direction from Council to discuss the questions outlined above, clarify Council’s funding priorities, and receive further feedback on the CAF process.

On October 26, 2021, Council authorized the Mayor to appoint three members of Council to form a sub-group to work with a committee of the Community Services Commission to review and discuss the community agency funding process.

The CAF Process Review Joint Subcommittee
The joint subcommittee consisted of three Councilmembers (Councilmember Lamnin, Councilmember Márquez, and Councilmember Salinas) and four Community Services Commissioners (Commissioner Arrizon, Commissioner Bruckner, Commissioner Garg, and Commissioner Moore), with Commissioner Berry as ex officio. The Councilmembers and Commissioners served as representatives of their colleagues for purposes of providing feedback on the Community Agency Funding process. The subcommittee convened on three occasions to discuss the current CAF process and the CSC’s questions with the purpose of preparing recommendations for the full CSC review and subsequent Council review and approval.

CSC’s Services Funding Recommendations for Council Consideration As part of the CAF process, the Services ARC consider applications for funding that benefit low-moderate income Hayward residents through programs to provide food security, health services, homelessness and anti-displacement services, job training, legal services, and youth and education services. Over the last several years, 87% of the services awards were $50,000 or less. Furthermore, with the exception of the Hayward Public Library’s Family Education Program, all of the services grant awards greater than $50,000 were categorized as Housing and Homelessness related projects. In an effort to provide additional guidance to applicants and to more widely distribute funding, the CSC is recommending utilizing a services funding cap of $100,000 for housing and homelessness related programs and $50,000 for all other services. This proposed cap would be communicated in the FY 2024 application and during the mandatory bidders conference to provide additional direction to potential applicants, which has been an expressed desire of previously funded agencies to better prioritize resources during the grant application season.

At the June 15, 20225 CSC meeting, there was discussion around exceptions to these caps. It was noted that there could be situations where an applicant exceeds the cap should the Services ARC determine that the proposed service or program warrant additional funding.

5 June 15, 2022, Staff Report and Attachments:
https://hayward.legistar.com/MeetingDetail.aspx?ID=927862&GUID=BF6BBED6-E690-4197-A761- 9D2BF2FCA8C9&Options=info|&Search=

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Should Council affirm the proposed funding caps, any exceptions to this guideline in future CAF recommendations will be noted and justification provided as part of the recommendations to Council.

Furthermore, the CSC is recommending prioritizing funding for new and innovative programs, as defined as not previously being funded through the CAF process. This aligns with the CSC’s desire to encourage new applicants which has resulted in recommending a wide range of new programs in the last few funding cycles. This also addresses the potential concern that a services cap could inadvertently benefit applicants who have historically been funded through the CAF and better understand the City’s requirements, potentially leading certain agencies to request funding that exceeds the proposed caps. In order to ensure that both long term City partners and innovative programs are considered and funded, the CSC is recommending a guideline to include a priority for funding 20-30% of applications for new and innovative programs as part of each CAF recommendation.

Additionally, as part of the joint subcommittee discussions, staff identified historically funded agencies that provide safety net services to the Hayward community. While there was strong support for funding safety net programming, the joint subcommittee and the full CSC had no interest in guaranteeing funding to any single agency. Rather, the CSC is recommending that staff identify programs that support safety net services during the CAF process to better inform the Services ARC deliberations. Funding recommendations of any given agency will continue to be based on an agency’s capacity, efficacy, ability to provide quality services, capability to leverage of other funds, and the community’s need for the service.

Revised Application Review Committee for Arts, Music, and Cultural Events In order to streamline the City’s engagement with the Arts, Music and Cultural Events providers, for the FY 2024 funding process, it is planned that the CSC’s ARC for Arts and Music will also review Cultural Events applications. While the funding for Arts and Music will remain separate from Cultural Events, the same ARC will review and interview applicants of both application categories. The subcommittee reviewed the Special Event Support and Grant Program established by Council6 to determine if the program guidelines could inform new Arts and Music guidelines.

A summary of the Special Events Funding Guidelines is provided below.

Special Events Funding Guidelines:
 New Events may receive up to $10,000 in financial support for one year  Signature Events, $5,000 for events that have taken place 1-5 year(s). Upon completion of the 5th consecutive year of an event, the event will then be classified as a Classic Event  Classic events, (+5 years) up to $7,500 in grant funds to support growing the event into a larger, regional event
 Money granted to either a new or existing event cannot be more than 20% of the total estimated budget for the event

6 December 17, 2019, Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=4281863&GUID=F67B2968-D186-4128-96D1- 87C842FAAB61&Options=&Search=

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The CSC is recommending Arts and Music Funding Guidelines structured to mirror Council approved event guidelines as shown below.

Proposed Arts and Music Funding Guidelines:
 New Agencies may receive up to $30,000 in financial support for one year  Signature Agencies, up to $25,000 for programs that have been funded 1-5 year(s).

Upon completion of the 5th year of program funding, the agency will then be classified as a Classic Agency
 Classic Agencies, (+5 years) up to $20,000 in grant funding, not to exceed 60% of the total estimated program budget

Should Council affirm the proposed Arts and Music Funding Guidelines, staff will work with the CSC to evaluate both the Special Events and Arts and Music Funding Guidelines at the conclusion of the FY 2024 CAF process.

Audit Discussion
The CSC desires to continue to refine CAF requirements to increase the accessibility of funding through the CAF process. Current funding policies require each agency awarded over $15,000 in funding to provide a completed independent fiscal audit. Agencies that do not have a current audit as described above who wish to apply for more than $15,000 are eligible to apply for City funding only in partnership with another agency that can meet this standard serving as fiscal administrator. The fiscal administrator must apply for the funding, and if granted, the fiscal administrator may utilize up to 10% of the grant for its own expenses.

Historically, fiscal partners are often only paired with Arts and Music applicants. In recent years, at the CSC’s request, Council approved raising the audit requirement threshold from the previous $10,000 to now $15,000 funding award limit to lessen the burden that a fiscal audit could have on an agency. Staff is exploring alternatives to further remove barriers to accessing funding while maintaining prudent fiscal policy in the use of public funds.

One potential option may include working with an auditor to obtain a financial letter of good standing for applicants that apply for less than $20,000. The estimated cost for this type of letter is $500 - $1000. While this would not produce a complete fiscal audit, it provides financial assurances to the City at a fraction of the cost of a traditional fiscal audit by an independent auditor. Only a small number of currently funded agencies would be impacted by this proposed change as most agencies who exceed the audit threshold already provide independent fiscal audits. Should staff be able to identify means to offer such services at a lower cost to applicants, the CSC is recommending that the audit requirement threshold be increased to $20,000 and require agencies requesting less than $20,000 to provide a financial letter of good standing in place of partnering with a fiscal administrator.

Upcoming CSC Subcommittee Discussion
The CSC subcommittee will continue discussions in the summer to refine the NOFA process, application review and interview process in order to more thoroughly evaluate programs and to improve applicant and commissioner experience. The CSC subcommittee will discuss the implementation of a scoring rubric that factors in historic funding weighing criteria and more

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recently identified priorities such as an increased integration of an equity lens and preference for Hayward based organizations.

ECONOMIC IMPACT

The resulting allocation of funding towards CDBG and the General Fund’s Social Services programs have a collective positive economic impact on the community, as they will increase food security; provide vital support services to help individuals and families maintain and obtain housing, such as legal aid, fair housing services, shelter, and home rehabilitation; and infuse capital and provide training for local small business.

FISCAL IMPACT

There is no fiscal impact associated with this report.

STRATEGIC ROADMAP

CAF allocation recommendations have supported several of the City’s Strategic Roadmap priority areas, including Preserve, Protect, & Produce Housing; Grow the Economy; and Support Quality of Life.

PUBLIC CONTACT

Members of the public are invited to review the materials presented and recordings of the subcommittee meetings which are available on the City’s website. No public comments were made at the CSC meeting of June 15, 2022. Interested parties can make public comment at the Council meeting of June 28, 2022.

NEXT STEPS

Should Council affirm the CSC’s CAF modification recommendations, staff will work to implement the changes for the FY 2024 CAF cycle. Staff will continue to meet with the CSC subcommittee in the summer to address the outstanding items and will continue to provide additional support on the City’s Strategic Roadmap in advance of ARC meetings to help identify how priorities from that plan can inform the CSC’s deliberation process. Separately, staff will continue to engage Council in identifying alternative sources of permanent funding, including exploration of using Community Foundation funding.

Prepared by: Carol Lee, Management Analyst

Recommended by: Monica Davis, Community Services Manager Dustin Claussen, Acting Assistant City Manager

Page 8 of 8 ends

Approved by:

Kelly McAdoo, City Manager

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 22-037
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Acting Assistant City Manager

SUBJECT
Sale of Parcel Group 8 for Development of Affordable Housing: Adopt a Resolution Approving the Government Code Section 52201 Summary Report for the Project; and Authorizing the City Manager to Negotiate and Execute a Disposition, Development, and Loan Agreement with RCD GP IV, LLC and Parcel Group 8, L.P. for Transfer of Specified City Owned Properties and for the Development of Housing and Making Specified Findings in Association with Government Code Section 65913.4 Exemption from the California Environmental Quality Act

RECOMMENDATION
That Council holds a public hearing and adopts a resolution (Attachment III) approving the Government Code Section 52201 Summary Report for the project (Attachment IV) and authorizing the City Manager to negotiate and execute a Disposition Development and Loan Agreement (DDA) and related documents, with Resources for Community Development (Developer) for the transfer of specified properties and for the development of new affordable housing and rehabilitation of units for affordable housing, finding the project is consistent with prior California Environmental Quality Act (CEQA) determinations. ..End

SUMMARY
After abandoning the State Route 238 Bypass Project in the 1970s, Caltrans began selling parcels that had previously been acquired for the planned freeway. In order to ensure that future development of the State Route 238 parcels located in Hayward align with the City’s land use policies and overall vision, the City negotiated a Purchase and Sale Agreement (PSA) with Caltrans in 2016 to manage the disposition and development of former right of way for the now defunct 238 Bypass. The City-controlled State Route 238 properties are divided into ten “parcel groups.”
On September 15, 2020, the Council provided authorization for the City Manager to negotiate and enter into an Exclusive Negotiating Rights Agreement (ENRA) with Resources for Community Development (Developer), to develop an affordable housing project on the 2.36-acre Affordable Housing Segment, including new construction of affordable housing on the portion of the property within the City (City Portion) and exploration and identifying the development approach for the 11 units of naturally CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
powered by Legistar™
File #:PH 22-037
occurring affordable housing on the County Portion (see Attachment II for map). At the same time, Council also adopted a resolution memorializing that the provisions of affordable housing and an expansion of Carlos Bee Park will satisfy the affordable housing and park dedications for Parcel Group 8.

Shortly thereafter, Caltrans authorized the subdivision of Parcel Group 8 to allow for the disposition of the affordable housing, park, and market segments during separate transactions.

After extensive community and tenant engagement, Developer determined that their development approach is to rehabilitate the existing improvements on the County Portion, consisting of at least 11 units of naturally occurring affordable housing. Additionally, Developer’s project includes total of 96 new affordable housing units, along with, along with 3,900 square feet of commercial space on the ground floor on the City Portion.

Developer submitted their entitlements application under Senate Bill 330/Senate Bill 35 and Density Bonus and on March 30, 2022. Given that the project was deemed consistent with the objective standards for the Commercial/High Density Residential General Plan land use designation and related Commercial and Neighborhood Commercial/Residential zoning districts, the proposal was approved through the streamlined ministerial review with a Density Bonus and related concessions and waivers.

Now that the planning entitlements have been approved, City staff recommend entering into a DDA with the Developer for the disposition from the City to Developer for a total purchase price of $0 for the 2.36- acre Affordable Housing Segment of Parcel Group 8 for 96 new affordable housing units, with 3,900 square feet of commercial space on the ground floor on the City Portion, and 11 rehabilitated units on the County Portion.

ATTACHMENTS
Attachment I Staff Report
Attachment II Map
Attachment III Resolution
Attachment IV 52201 Summary Report
CITY OF HAYWARD Printed on 6/24/2022Page 2 of 2
powered by Legistar™

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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Acting Assistant City Manager

SUBJECT: Sale of Parcel Group 8 for Development of Affordable Housing: Adopt a Resolution Approving the Government Code Section 52201 Summary Report for the Project; and Authorizing the City Manager to Negotiate and Execute a Disposition, Development, and Loan Agreement with RCD GP IV, LLC and Parcel Group 8, L.P. for Transfer of Specified City Owned Properties and for the Development of Housing and Making Specified Findings in Association with Government Code Section 65913.4 Exemption from the California Environmental Quality Act

RECOMMENDATION

That Council holds a public hearing and adopts a resolution (Attachment III) approving the Government Code Section 52201 Summary Report for the project (Attachment IV) and authorizing the City Manager to negotiate and execute a Disposition Development and Loan Agreement (DDA) and related documents, with Resources for Community Development (Developer) for the transfer of specified properties and for the development of new affordable housing and rehabilitation of units for affordable housing, finding the project is consistent with prior California Environmental Quality Act (CEQA) determinations.

SUMMARY

After abandoning the State Route 238 Bypass Project in the 1970s, Caltrans began selling parcels that had previously been acquired for the planned freeway. In order to ensure that future development of the State Route 238 parcels located in Hayward align with the City’s land use policies and overall vision, the City negotiated a Purchase and Sale Agreement (PSA) with Caltrans in 2016 to manage the disposition and development of former right of way for the now defunct 238 Bypass. The City-controlled State Route 238 properties are divided into ten “parcel groups.”

On September 15, 2020, the Council provided authorization for the City Manager to negotiate and enter into an Exclusive Negotiating Rights Agreement (ENRA) with Resources for Community Development (Developer), to develop an affordable housing project on the 2.36- acre Affordable Housing Segment, including new construction of affordable housing on the

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portion of the property within the City (City Portion) and exploration and identifying the development approach for the 11 units of naturally occurring affordable housing on the County Portion (see Attachment II for map)1. At the same time, Council also adopted a resolution memorializing that the provisions of affordable housing and an expansion of Carlos Bee Park will satisfy the affordable housing and park dedications for Parcel Group 8. Shortly thereafter, Caltrans authorized the subdivision of Parcel Group 8 to allow for the disposition of the affordable housing, park, and market segments during separate transactions.

During the second phase of the negotiating period, Developer explored three potential scenarios for the County portion, including: (1) Partnering with a community land trust to rehabilitate the existing improvements on the County portion; (2) Rehabilitating the existing improvements on the County portion, consisting of the naturally occurring affordable housing and managing the units as rental units; and (3) Demolishing existing improvements on the County Portion and constructing new rental housing. After extensive community and tenant engagement, Developer determined that their development approach is to rehabilitate the existing improvements on the County Portion, consisting of at least 11 units of naturally occurring affordable housing. Additionally, Developer’s project includes total of 96 new affordable housing units, along with, along with 3,900 square feet of commercial space on the ground floor on the City Portion.

Now that the planning entitlements have been approved, City staff recommend entering into a DDA with the Developer for the disposition from the City to Developer for a total purchase price of $0 for the 2.36-acre Affordable Housing Segment of Parcel Group 8 for 96 new affordable housing units, with 3,900 square feet of commercial space on the ground floor on the City Portion, and 11 rehabilitated units on the County Portion.

BACKGROUND

The City of Hayward entered into a PSA with Caltrans in January 2016 to acquire 10 parcel groups comprised of properties acquired by Caltrans for the State Route 238 expansion project. Caltrans has transferred those properties to the City subject to the City managing the disposition and development of these former State Route 238 parcel groups with the goals of removing blight, enhancing community involvement in the development process, and creating economic and public benefits, such as job generating uses and trails and parks. As the City sells or transfers particular parcels, the City is obligated to repay Caltrans the negotiated

1 City Council Meeting, September 15, 2020,
https://hayward.legistar.com/LegislationDetail.aspx?ID=4640100&GUID=2E5B6162 -784D-4B66-9E34- 7BA309B81501&Options=&Search=

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purchase prices for the various parcel groups under the PSA. The 10 parcel groups must be disposed of by 2027 and Table 1 provides the current status of these parcel groups.

TABLE 1: STATUS OF 238 PARCEL GROUPS
PARCEL
GROUP
STATUS ENTITY EST.

DISPOSITION

TIMELINE

ESTIMATED UNIT
COUNTS

AFFORDABLE

UNIT COUNT
1 & 10 Sold / Under
Construction
William Lyon Homes
(SOHAY)
August
2018
472 (approved) 48 (approved)
2 Sold / Under
Construction
The True Life
Companies (Mirza)
June 2020 189 (approved) 20 (approved)
3 Executed DDA Eden Housing and The
Pacific Companies
2022 176 (approved) 176 (approved)
4 Master Development
Planning
City of Hayward 2023+ 3 0
5 Executed DDA Trumark Properties,
LLC
2022 92 18
6 Developer solicitation
in future
City of Hayward 2023+ 300 30
7 Sold / Grand Opening
on June 29th
One Subaru of
Hayward
June 2020 0 0
8 Affordable Housing:

Execution of DDA
pending approval
Open Space: Under
negotiations
Market Rate:

Developer solicitation
in future

AH: Resources for
Community
Development

OS: HARD

MR: City of Hayward
2023

2034

2023+
96 (approved)

100
96 (approved)
9 Developer solicitation
in future
City of Hayward 2023+ TBD TBD
TOTAL 1,428 3882

Over the course of the last few years, City staff worked with the community to develop a vision and approach to the development for Parcel Group 8. This included outreach efforts with the Parcel Group 8 neighborhood, Castro Valley Municipal Advisory Council, the existing Bridge Court tenants, Eden Area Municipal Advisory Council, Grove Way Neighborhood Association, Eden Area Community Land Trust, Supervisor Miley’s Office, Alameda County Housing and Community Development Departments, Hayward Area Recreation and Park District, and the private and nonprofit development community. Based on this extensive community and stakeholder feedback, staff developed an approach to the development of Parcel Group 8 to subdivide Parcel Group 8 into three major segments and move forward with three distinct community and development processes as follows:

1. Affordable Housing Segment – Engage RCD, a nonprofit developer, to build much-needed affordable housing on the Bridge Court/Grove Way properties that minimizes displacement of existing residential tenants.

2 Staff estimates 27% of total Route 238 Corridor Lands Development residential units will be affordable.

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2. Open Space Segment – Facilitate an open space dedication to HARD for expansion of Carlos Bee Park.

3. Market Rate Middle Segment – Solicit private developer interest in a lower density market rate housing and trail expansion project consistent with the County Housing Element in order to address neighborhood traffic concerns and satisfy the Caltrans purchase price.

Caltrans agreed to authorize the separate and independent subdivision and development of the three distinct segments described above and in September 15, 2020, the City Council memorialized that the proposed affordable housing development and open space dedication for Parcel Group 8 satisfies the City’s park dedication and affordable housing obligations for any new housing proposed on the Market Rate Middle Segment.

The Developer’s mission is to create and preserve affordable housing for people with the fewest options, build community, and enrich lives. For almost 40 years, Developer has grown from a small Berkeley-based special needs housing developer to owning and operating 64 developments through the Bay Area that provide affordable homes to 5,353 people. The Developer also works closely in partnership with the John Steward Company, who provides experienced property management, a key to the success of affordable housing. The Developer builds energy-efficient and green buildings, outdoor areas, community rooms, community gardens, and services and property management offices that add greatly add to the quality of housing. These amenities include space for a variety of resident services programs, such as community building social activities, educational workshops, and individual case coordination to help residents gain skills and access services at no additional cost.

The Developer submitted their entitlements application under Senate Bill 330/Senate Bill 35 and Density Bonus on March 30, 2022. Given that the project was deemed consistent with the objective standards for the Commercial/High Density Residential General Plan land use designation and related Commercial and Neighborhood Commercial/Residential zoning districts, the proposal was approved through the streamlined ministerial review with a Density Bonus and related concessions and waivers.

Now that the planning entitlements have been approved, City staff recommend taking actions to facilitate the transfer of the property to the Developer, as described below.

DISCUSSION

The following section summarizes the key terms of the DDA; housing element compliance and progress reports; the findings from the 52200.2 analysis regarding Creation of Economic Opportunity/Common Benefit; and the major findings of the Government Code Section 52201 Summary Report required for the sale of the property.

I. Key Terms of the DDA

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City staff recommends that the Council authorize the City Manager to enter into a DDA with the Developer with the following key terms:

 Parties – City of Hayward, RCD GP IV, LLC (“Company”), and Parcel Group 8 L.P. (“Partnership”) as the Affordable Housing Developer.

 Purchase Price – $0 to be paid by the Developer to the City in exchange for the Affordable Housing Parcel. At the time of the transfer, the City is not obligated to pay Caltrans for the PSA purchase price for Parcel Group 8.

 Project Description – Parcel Group 8 Affordable Housing Segment City Portion includes 96 deed restricted rental units, including 42 very low-income units and 53 low-income units; approximately 3,900 square feet of commercial uses along Foothill Boulevard. Additionally, 11 naturally occurring affordable housing units on the County Portion will be rehabilitated and offered as low income units. The City will retain ownership of the Open Space Segment and of the Market Rate Middle Segment. It is the intent of the City that these affordable housing units will satisfy the inclusionary obligation created by the future development of the Market Rate Middle Income Segment in satisfaction of the Affordable Housing Ordinance.

 Land Transfer – Closing on the land transfer requires the affordable housing development on both the City and County portion to have secured necessary financing.

The City, the Company, and the Partnership desire to enter into the DDA to allow the City to convey the Affordable Housing sites to the Company to enable the Partnership to acquire a leasehold interest in the City Housing Parcels and acquire a fee interest in the County Housing Parcel.

 Infrastructure Improvements – The developer is required to ensure all infrastructure systems necessary to support the development of the housing are constructed or upgraded as part of the Improvements. EBMUD has determined it is not able to provide sufficient fire flow volume to the Affordable Housing Segment, therefore the developer has agreed to extend a City water line to the project site to provide an additional fire flow to the City Housing Parcels.

 Voluntary Affordable Housing Covenant - The Housing Developer voluntarily agrees to restrict the affordable housing units in the housing development for occupancy by low-income households at an affordable rent in perpetuity with the City as a named third-party beneficiary.

 Financial Assistance - The City will contribute up to $2M from its Inclusionary Housing Fund as a loan. The loan funds will be used to pay acquisition, predevelopment and construction costs. The loan accrues three percent simple interest annually, payments are made through surplus cashflow, and is due and payable in 57 years.

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 Minimize Impact on Existing Tenants – Developer to work with existing tenants on the County Portion to minimize displacement impacts. Developer should integrate the tenants into the new project to the extent eligibility criteria is met and a tenant is interested. If a tenant is not income eligible for an affordable housing unit or prefers to relocate, Developer will provide resources to aid in moving. o In 2010 and 2011, all tenants received relocation benefits required under federal and state law
o Tenants will be required to move out during construction o Tenants will be screened for eligibility six months prior to construction  Eligible tenants can choose relocation options:
 Option A: Temporary Relocation:
o Developer will provide temporary housing, pay moving
costs, and pay rent differential
o Tenant continues to pay current rent to Developer
 Option B: Permanent Relocation:
o Developer provide advisory assistance (i.e. referrals) to replacement housing
o Developer pays $20,000 for moving/rental/home
purchase assistance
 Ineligible tenants will be permanently relocated under Option B to comply with tax credit requirements

II. Housing Element Compliance and Progress Reports

Local jurisdictions report their progress meeting their RHNA goals to the State. Table 2 (below) reflects the progress made towards meeting Hayward’s RHNA goals as of the last report year (2021), estimated progress based on number of units entitled, and progress based on projects seeking approval, for the period between 2015-2023. Table 3 provides the income limits associated with each income category for Alameda County. Permits to construct the units must be issued in order to count toward the City’s RHNA goals.

The proposed Project will add a total of 96 affordable housing units to the City’s housing stock, which would help the City to meet over 7.5% of the RHNA goal for low-income households and 7% of the RHNA goal for very low-income households. Additionally, the project helps the City meet the following goals established in the City’s Housing Element:

 Assist in the development of housing affordable to low- and moderate-income households; and
 Promote equal housing opportunities for all persons.

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TABLE 2. 2015 -2023 RHNA GOAL PROGRESS IN THE CITY OF HAYWARD Income
Category*
Unit
Goal
Reported 2021 Approved Pending**
Approval
Estimated
Compliance
Estimated
Deficiency
Units % of goal Units % of
goal
Units % of
goal
Units % of
goal
Units % of
goal
Very low 851 168 20% 293 34% 26 3% 487 57% 364 43%
Low 480 174 36% 226 47% 4 1% 404 84% 76 16%
Moderate 608 128 21% 60 10% 0 0% 188 31% 420 69%
* The City has achieved the Above Market Rate housing goals for the 2015-2023 RHNA cycle. .

TABLE 3. 2022 INCOME LIMITS BY INCOME CATEGORY AND HOUSEHOLD SIZE FOR ALAMEDA COUNTY AS

ESTABLISHED BY CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Household Size
Income
Category
1 2 3 4 5 6 7 8
Very low
50% AMI*
$50,000 $57,150 $64,300 $71,400 $77,150 $82,850 $88,550 $94,250 Low
80% AMI*
$76,750 $87,700 $98,650 $109,600 $118,400 $127,150 $135,950 $144,700 * Percent area median income (AMI) is used to identify income and rent levels; however, the method for calculating income limits involves assessment of multiple data points and is not necessarily a percent of the median income. For more information see https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf

III. 52200.2 Analysis - Creation of Economic Opportunity/Common Benefit

The actions contemplated under the DDA will create economic opportunity in the Hayward community. Section 52200.2 of the California Government Code defines “economic opportunity” as any of the following:

(a) Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that create, retain, or expand new jobs, in which the legislative body finds that the agreement will create or retain at least one full-time equivalent, permanent job for every thirty-five thousand dollars ($35,000) of city, county, or city and county investment in the project after full capacity and implementation;

(b) Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that increase property tax revenues to all property tax collecting entities in which the legislative body finds that the agreement will result in an increase of at least 15 percent of total property tax resulting from the project at full implementation when compared to the year prior to the property being acquired by the government entity;

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(c) Creation of affordable housing, if a demonstrated affordable housing need exists in the community, as defined in the approved housing element or regional housing needs assessment;

(d) Projects that meet the goals set forth in Chapter 728 of the Statutes of 2008 and have been included in an adopted sustainable communities strategy or alternative planning strategy or a project that specifically implements the goals of those adopted plans; and

(e) Transit priority projects, as defined in Section 21155 of the Public Resources Code.

Under the DDA, the City is providing a $2M loan from the Inclusionary Housing Fund as financial assistance to the Developer. The City has identified the following benefits that will be generated through the implementation of the DDA and that will create economic opportunity as defined in Government Code Section 52200.2.

Creation of Affordable Housing
The creation of affordable housing to meet demonstrated affordable housing needs identified in the housing element of the City’s General Plan constitutes an economic opportunity. The proposed project will be subject to the requirements of the City's Inclusionary Housing Ordinance and has also applied for additional density under the State Density Bonus Law, and will thus increase, improve, or preserve the supply of quality affordable housing in the community. The Affordable Development will create a total of units of 107 affordable housing (including one unrestricted manager’s unit).

Creation of New Jobs
Under Section 52200.2(a), economic opportunity is achieved if an agreement results in the creation, retention or expansion of new jobs, at least one full-time equivalent, permanent job for every thirty-five thousand dollars ($35,000) of City investment in the project. The sale of the Property under the DDA will result in job creation as a result of the anticipated construction of the Affordable Housing Development. During the construction of the Proposed Project, it is anticipated approximately 136 full-time equivalent (FTE) temporary construction jobs will be generated. Upon completion and full implementation, the Proposed Project is also anticipated to generate an estimated 33 permanent jobs.

Public Purpose/Common Benefit
The transfer of the property and construction of the Proposed Project will further the public purpose of economic development by creating jobs and affordable housing and contribute to the vibrancy in an area of the City that has suffered from historic underdevelopment as a result of the proposed and now defunct SR 238 freeway project.

IV. Government Code 52201 Summary Report

Government Code Section 52201 authorizes the City to sell or lease property to which it holds title for the purpose of creating economic opportunity. The City must first secure approval of the proposed sale from the City Council after a public hearing. A copy of the proposed DDA

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and a summary report that describes and contains specific financing elements of the proposed transaction is required to be available for public inspection prior to the public hearing. Staff prepared the Government Code Section 52201 Summary Report in compliance with the code (the “Section 52201 Summary Report). The Section 52201 Summary Report is attached to this report as Attachment IV and is incorporated herein by this reference.

The Section 52201 Summary Report contains the following information:
 The cost of the DDA to the City, including land acquisition costs, clearance costs, relocation costs, and the costs of any improvements to be provided by the City, plus the expected interest on any loans of bonds to finance the agreement;  The estimate value of the interest to be conveyed, determined at the highest and best use permitted under the general plan and zoning;
 The estimated value of the interest to be conveyed in accordance with the uses, conditions and covenants, and development costs required under the proposed PSA, i.e., the fair reuse value of the property;
 An explanation of why the sale of the property will assist in the creation of economic opportunity; and
 If the sale price is less than the fair market value of the interest to be conveyed, determined at the highest and best use consistent with the general plan and zoning, then the City must provide as part of the summary an explanation of the reasons for the difference.

The conclusion of the Section 52201 Summary Report reflects that the estimated total cost to the City is projected to be higher than the purchase price received from the Developer.

However, the DDA and Regulatory Agreement impose extraordinary controls on the housing sites. The impacts created by these requirements reduce the value of the housing sites to a negative fair reuse value.

ENVIRONMENTAL REVIEW

Pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) ("CEQA") and its implementing guidelines, the approval of the DDA and construction of the City Housing Improvements and rehabilitation of the County Housing Improvements is eligible for streamlined, ministerial approval pursuant to Government Code Section 65913.4, and is therefore exempt from review pursuant to Public Resources Code Section 21080(b)(1), which states the general rule that CEQA does not apply to ministerial projects.

ECONOMIC IMPACT

The proposed development would have a positive economic benefit in that it would result in development of a currently vacant site with new residential units and rehabilitate existing units that require infrastructure investment, and this would beautify the site and increase surrounding property values. The proposed development is expected provide 96 new affordable housing units. Development of the project is also expected to generate temporary construction jobs and an estimated 33 permanent jobs.

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Developers will leverage the City’s investment in their project to secure funding from the County, the State, and private sources. The project will leverage approximately $67million dollars.

Additionally, social research indicates that access to affordable housing can improve education outcomes, increase health and wellbeing, boost economic activity, and lower the costs for state and local governments to provide emergency housing, mental health crisis services, emergency medical care, and other services to assist the homeless or families and individuals with a housing crisis. The rent for affordable housing is relative to income levels versus market prices which reduces rent burden. This increases available income to pay for other basic needs or save for other financial goals such as furthering education or homeownership. Stabilizing housing costs can be the first step to creating opportunities for personal economic advancement.

FISCAL IMPACT

The sale of the Affordable Housing Segment will help satisfy the affordable housing requirements for the future Market Rate Segment, enhancing the future purchase price of the Market Rate Segment. The future sales proceeds for the Market Rate Segment will be utilized by the City to repay Caltrans as required under the PSA and any excess to sales proceeds will be retained by the City.

While no property taxes are currently being paid on this Parcel Group, the proposed approach to development is expected to result in new market rate development on the Market Rate Middle Segment, which will generate new property tax revenue to the City. If the Affordable Housing Segment is developed and managed by Developer, it will generate little property tax revenue since an affordable housing development owned by a nonprofit organization is eligible for a welfare exemption which reduces its tax obligation. That said, the proposed project would provide an opportunity for new residential development needed to address the goals of the City’s and County’s Housing Elements. If HARD takes ownership of the Open Space Segment, it will not generate property tax revenue, but will create important public open space and trails for the neighborhood and Hayward community.

There is no additional fiscal impact related to the $2 million loan from the City Inclusionary Housing Fund. Funding for this project was approved by City Council on May 4, 2021 and the funds have already been encumbered.

STRATEGIC ROADMAP

The proposed project supports the Strategic Priorities of Preserve, Protect, and Preserve Housing for All, as well as of Grow the Economy, and specifically, relates to the implementation of the following project:

Project 5, Part 5.a-c: Facilitate disposition and development of Route 238 Corridor lands.

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NEXT STEPS

Following Council approval, staff will take the necessary steps to convey the property to the Developer in accordance with the DDA.

Prepared by: Monica Davis, Community Services Manager Christina Morales, Housing Manager

Recommended by: Dustin Claussen, Acting Assistant City Manager

Approved by:

____________________________________________
Kelly McAdoo, City Manager

ATTACHMENT II
Affordable Housing
Segment
(Bridget/Grove Segment)
Open Space Segment
(Carlos Bee Park
Expansion Segment)
Market Rate Middle
Segment
(Upper County and
Western City Segments)

ATTACHMENT III

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163\48\3315217.1

HAYWARD CITY COUNCIL
RESOLUTION NO. 22 –
Introduced by Council Member______________

RESOLUTION APPROVING GOVERNMENT CODE SECT ION 52201 SUMMARY REPORT FOR THE PROJE CT; AUTHORIZING THE CITY MANAGER TO

NEGOTIATE AND EXECUT E A DISPOSITION , DEVELOPMENT AND LOAN AGREEMENT WITH RCD GP IV, LLC AND PARCEL GROUP 8, L.P. FOR

TRANSFER OF SPECIFIE D CITY OWNED PROPERT IES AND FOR THE

DEVELOPMENT OF HOUSING AND MAKING SPECIFIED FINDINGS IN ASSOCIATION WITH A GOVERNMENT CODE SE CTION 65913.4 EXEMPT ION

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

WHEREAS, the City of Hayward entered into a Purchase and Sale Agreement (PSA) with Caltrans in January 2016 to acquire 10 parcel groups comprised of properties acquired by Caltrans for the State Route 238 expansion project; and WHEREAS, Caltrans granted the properties to the City in trust pursuant to State Route 238 Local Alternative Transportation Improvement Program (Government Code Sections 14528.6 and 14528.65); and
WHEREAS, Caltrans has transferred those properties to the City subject to the City managing the disposition and development of these former State Route 238 parcel groups with the goals of removing blight, enhancing community involvement in the dev elopment process, and creating economic and public benefits, such as job generating uses and trails and parks; and
WHEREAS, a s the City sells or transfers particular parcels, the City is obligated to repay Caltrans the negotiated purchase prices for the va rious parcel groups under the PSA ; and
WHEREAS, under Government Code Section 54221(f)(1)(A) "exempt surplus land" is defined to include surplus land that is transferred pursuant to Government Code Section 37364; and
WHEREAS, under Government Code Section 37364, whenever a City determines that its property can be used for the provision of affordable housing to families of low or moderate income as defined in Health & Safety Code Section 50093, and that the use is in the City's best interest, the City may sell or otherwise convey the property under whatever terms and conditions it deems appropriate as long as at least 80% of the area of the property being disposed is used for the development of housing, and that at least 40% of the total housing

ATTACHMENT III

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163\48\3315217.1
units are r estricted to low and very low incomes as specified under Government Code Section 37364(c-d); and
WHEREAS, as least 80% of the developable area of geographically clustered Parcel Groups 8 will be used for the generation of housing, and at least 40% of the residential units will be affordable as specified under Government Code Section 37364(c-d); and WHEREAS, the production and rehabilitation of affordable housing in a comprehensive manner over Parcel Group 8 housing properties is in the best interest of the City as it allows the housing to be built in an expedient manner with project components that are nearly shovel ready and as it avoids detrimental impacts often associated with the concentration of poverty and provides the greatest economic, social, and education opportunities to all residents of Hayward regardless of income; and WHEREAS, on February 8, 2022, the Council declared the Parcel Group 8 properties "exempt surplus land" because the land will be transferred to provide affordable housing pursuant to Government Code Section 37364, as the sale of these parcels for the generation of housing is in the City's best interest as set forth in adopted Resolution 22-037; and WHEREAS, on March 1, 2022, the State of California Housing and Community Development Department sent a letter to the City finding that Parcel Group 8 properties qualify as "exempt surplus land" under Government Code section 54221 (f)(1), consistent with the City's adopted resolution 22-037; and
WHEREAS, on September 15, 2019 , the Council authorized the City Manager to negotiate and enter into an Exclusive Negotiating Rights Agreement (ENRA) with the proposed Resources for Community Development (RCD) , the developer's pre decessor in interest; and
WHEREAS, after significant due diligence and site planning efforts, RCD successfully completed the obligations under the ENRA and now RCD GP IV, LLC, a California limited liability company (the "Company") and Parcel Group 8, L.P., a California limited partnership (the "Partnership") desire to enter into a Disposition, Development and Loan Agreement (the “DDA”); and
WHEREAS, if approved, the City, the Company and the Partnership will enter into a DDA to allow for the City to convey the Parcel Group 8 housing sites to the Company to enable the Partnership to: (1) acquire a leasehold interest in 1.54 acres of property which are located within the City of Hayward and is vacant land (the "City Housing Parcels") ; (2) acquire a fee interest in approximately 0.82 acres which are located within unincorporated Alameda County, which contain the County Housing Improvements (as defined below) (the "County Housing Parcel"); (3) develop up to 96 units of multifamily rental affordable housing on the City Housing Parcels (the "City Housing Improvements"); and (4) rehabilitate the eleven (11) units of naturally occurring affordable housing located on the County Housing Parcel (the "County Housing Improvements" ), and collectively with the City Ho using

ATTACHMENT III

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163\48\3315217.1
Improvements, the "Improvements") that will be available for occupancy by very low income households at an affordable rent; and
WHEREAS, as further outlined in the Staff Report accompanying this Resolution and incorporated into this Resolution by th is reference (the “Staff Report”) , the transfers contemplated under the DDA will further the public purpose of economic development creating jobs, and securing a site for future development of affordable housing in an area that has suffered from historic u nder development as a result of the proposed and now defunct freeway project, all of which serve the common benefit; and WHEREAS, the City has placed on file a copy of the summary report called for under Government Code Section 52201 (the “Section 52201 Summary Report”), and has made the Section 52201 Summary Report available for public inspection and copying in compliance with Government Code Section 52201; and
WHEREAS, as further outlined in the Staff Report, the City has determined that the sale of the Parcel Group 8 housing site properties pursuant to the DDA will create economic opportunity and: (1) result in the development of up to 96 units of multifamily rental affordable housing on the City Housing Parcels; (2) result in the rehabilitation of at least eleven (11) units of naturally occurring affordable housing located on the County Housing Parcel; (3) result in job creation as a result of the anticipated construction of the new development, including approximately 89 full-time equivalent (FTE) temporary construction jobs, and an estimated 33 FTE permanent jobs with limited investment form the City; and (3) result in the public purpose of economic development by creating jobs, housing, and contribute to the vibrancy in an area of the City that has suffered from historic underdevelopment as a result of the proposed and now defunct SR 238 freeway project; and
WHEREAS, as further outlined in the Staff Report and the Section 52201 Summary Report, the City is providing the Partnership with a $2,000,000 loan and is transferring the property for $0, the fair re-use determination based on estimated value of the interest to be conveyed in accordance with the uses, conditions and covenants, and develo pment costs required under the proposed DDA that result in a nominal residual land value; and WHEREAS, the City Council conducted a duly noticed public hearing on the DDA and the 52201 Summary Report pursuant to Government Code Section 52201, for the purpose of receiving the input and comments of the public on the DDA and the 52201 Summary Report; and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) ("CEQA") and its implementing guidelines, the approval of the DDA and construction of the City Housing Improvements and rehabilitation of the County Housing Improvements is eligible for streamlined, ministerial approval pursuant to Government Code Section 65913.4, and are therefore exempt from review pursuant to Public Resources Code Section 21080(b)(1), which states the general rule that CEQA does not apply to ministerial projects;

ATTACHMENT III

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163\48\3315217.1
NOW, THEREFORE, BE IT RESOLVED that the City Council finds that the above recitals are true and correct and have served, together with the Section 52201 Summary Report and the Staff Report, as the basis for the findings and approvals set forth below.

BE IT FURTHER RESOLVED, pursuant to Government Code Section 52200.2 and Government Code Section 52201(b), the City Council hereby finds that the sale of the Parcel Group 8 housing site properties pursuant to the DDA will create e conomic opportunity and result in(1) result in the development of up to 96 units of multifamily rental affordable housing on the City Housing Parcels ; (2) result in the rehabilitation of at least eleven (11) units of naturally occurring affordable housing located on the County Housing Parcel; (3) result in job creation as a result of the anticipated construction of the new development, including approximately 89 full-time equivalent (FTE) temporary construction jobs, and an estimated 33 FTE permanent jobs with limited investment form the City; and (3) result in the public purpose of economic development by creating jobs, housing, and contribute to the vibrancy in an area of the City that has suffered from historic underdevelopment as a result of the proposed and now defunct SR 238 freeway project. This finding is based on the facts and analysis set forth in the Staff Report and the Section 52201 Summary accompanying this Resolution.

BE IT FURTHER RESOLVED, pursuant to Government Code Section 52201, the City Council hereby finds that the consideration to be paid under the DDA is not less than the fair re-use value based on estimated value of the interest to be conveyed in accordance with the uses, conditions and covenants, and development costs required under the proposed DDA.

This finding is based on the facts and analysis set forth in the Staff Report and the Section 52201 Summary accompanying this Resolution.

BE IT FURTHER RESOLVED, pursuant to Government Code Section 52201, the City Council hereby approves the Section 52201 Summary Report, in substantially the form on file with the City Clerk, and approved execution by the City Manager or her designee of the DDA and all ancillary documents in a form to be approved by the City Attorney and consistent with the terms and conditions identified in the accompanying Staff Report.

BE IT FUR THER RESOLVED, pursuant to Government Code Section 37350, the City Council hereby finds that the disposition of the properties pursuant to the DDA is for the common benefit.

BE IT FURTHER RESOLVED, the City finds and determines that the disposition and development of the Parcel Group 8 properties pursuant to the DDA is eligible for streamlined, ministerial approval pursuant to Government Code Section 65913.4, and therefore exempt from review pursuant to Public Resources Code Section 21080(b)(1), which states the general rule that CEQA does not apply to ministerial projects.

BE IT FURTHER RESOLVED that the City Manager or designee is directed to cause a notice of exemption to be f iled with the Alameda County clerk, pursuant to the CEQA Guidelines, following adoption of this Resolution.

ATTACHMENT III

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163\48\3315217.1
BE IT FURTHER RESOLVED, that the City Council authorizes the City Manager or designee to execute the DDA , and all ancillary documents attached there to, on behalf of the City in substantia l conformance to the terms outlined in the staff report, subject to such nonsubstantive or minor modifications or amendments as may be necessary to complete the transactions contemplated hereby, and subject further to the City Attorney's approval as to form.

BE IT FURTHER RESOLVED, that the City Manager or designee shall execute such other instruments, and take any and all other action, as may be reasonbly necessary to complete the disposition and acquisition of the SR 238 Parcel Group 8 properties, and to close escrow on, as contemplated in the DDA.

BE IT FURTHER RESOLVED that the City Council designates the City Clerk as the custodian of the documents and other material which constitute the record of proceedings upon which the decision herein is based. These documents may be found at the office of the office of the City Clerk, at 777 B Street, Fourth Floor, Hayward, CA 94541.

BE IT FURTHER RESOLVED that this Resolution shall take immediate effect from and after its passage.

IN COUNCIL, HAYWARD, CALIFORNIA_________________, 2022
ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR
NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS

ATTEST:_____________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward
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SUMMARY REPORT PURSUANT TO GOVERNMENT CODE SECTION 52201

ON THE PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE
CITY OF HAYWARD, RCD GP IV, LLC, AND PARCEL GROUP 8 L.P.

I. Introduction.

The City of Hayward (the "City"), has prepared a summary report (the "Summary Report") as required by Section 52201 of the Government Code, with regards to the City's proposed execution of a Disposition and Development Agreement ("DDA") by and between the City, RCD GP IV, LLC, a California limited lability company (the "Company") and Parcel Group 8, L.P., a California limited partnership (the "Partnership"), for the sale of 2.36 acres of real property, 1.54 acres of which are located within the City of Hayward (the "City Housing Parcels") and 0.82 acres of which are located within unincorporated Alameda County (the "County Housing Parcels") generally located at Grove Way and Foothill Boulevard (collectively, the "Housing Sites" or "Property") to the Company, and the Company will subsequently transfer fee title to the County Housing Parcels and a leasehold title to the City Housing Parcels to the Partnership.

Government Code Section 52201, authorizes the City, to sell or lease property to which it holds title for the purpose of creating economic opportunity. The City must first secure approval of the proposed sale from the City Council after a public hearing. A copy of the proposed DDA and a summary report that describes and contains specific financing elements of the proposed transaction is required to be available for public inspection prior to the public hearing. As contained in the Code, the following information is included in the summary report:
 The cost of the DDA to the City, including land acquisition costs, clearance costs, relocation costs, and the costs of any improvements to be provided by the City, plus the expected interest on any loans or bonds to finance the agreement;  The estimated value of the interest to be conveyed, determined at the highest and best use permitted under the general plan and zoning;
 The estimated value of the interest to be conveyed in accordance with the uses, conditions and covenants, and development costs required under the proposed DDA, i.e., the fair reuse value of the property;
 An explanation of why the sale of the property will assist in the creation of economic opportunity;
 If the sale price is less than the fair market value of the interest to be conveyed, determined at the highest and best use consistent with the general plan and zoning, then the City must provide as part of the summary an explanation of the reasons for the difference.

ATTACHMENT IV
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In addition to the authority granted to it under Government Code Section 52201, the City is also acting pursuant to authority granted to it under Government Code Section 37350, which provides that a city may purchase, lease, receive, hold, and enjoy real and personal property and control and dispose of it for the common benefit.

II. Summary of Proposed Agreement.

Under the DDA, the City will convey the Housing Sites to the Company, the Company will subsequently transfer fee title to the County Housing Parcels and a leasehold title to the City Housing Parcels to enable the Partnership to: (1) develop up to 96 units of multifamily rental affordable housing on the City Housing Parcels (the "City Housing Improvements"); and (2) rehabilitate at least eleven (11) units of naturally occurring affordable housing located on the County Housing Parcel (the "County Housing Improvements", and collectively with the City Housing Improvements, the "Improvements")(the "Proposed Project").

The salient aspects of the proposed DDA are summarized as follows:
The City commits to transfer Affordable Housing Site to the Company to facilitate the transfer to the Partnership and the construction of the Proposed Project.
The City will convey the Housing Sites to the Company in fee in its "as-is" condition.
The Company will pay the City $0 for the Housing Sites. The Company the subsequently transfer fee title to the County Housing Parcels and a leasehold title to the City Housing Parcels to the Partnership. The Partnership will construct the City Housing Improvements and rehabilitate the County Housing Improvements.
The City is providing $2,000,000, consisting of the City's Inclusionary Housing Fee proceeds to assist the Partnership. Under the DDA, the City has the sole discretion to increase the City Loan by an amount of up to Two Million Six Hundred Forty-Five Thousand One Hundred Sixty-One Dollars ($2,645,161) consisting of Local Housing Trust Fund funds if such funds are allocated to the City from the State Department of Housing and Community Development. The City Loan will have a term of 57 years and will bear simple annual interest rate of 3.0%.
Repayment of the City will be from residual receipts calculated as the project's annual cash flow after payment of debt services and operating expenses approved by the City.
163\48\3282526.3 3
The Proposed Project will be subject to and must comply with the requirements of the City's Inclusionary Housing Ordinance.
The Company and the Partnership have agreed to record a Regulatory Agreement under which the Partnership will restrict: (a) 96 units of the Development (except the Manager's Units) including two (2) Very Low Income Units, seventeen (17) Low Income Units, forty (40) 50% Income Units, and thirty-six (36) 60% Income Units for a term of 55 years; and (b) 4 units will be restricted to very-low income households in perpetuity. Under the Regulatory Agreement the Partnership has also agreed to restrict at least eleven (11) of the naturally occurring housing units to 60% Income Households (the "Additional Restricted Units") as part of the County Housing Improvements.
The Partnership must comply with all government entities’ regulatory and administrative processes related to the land use approvals required for the Development.
The Partnership must obtain building permits for the Development in accordance with the timeline set forth in the Development Schedule attached to the DDA The Partnership shall pay all contractors and subcontractors engaged to construct the Development California Labor Code Section 1720 prevailing wages. The Partnership is prohibited from any form of discrimination on the basis of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry, or source of income, in the hiring, firing, promoting or demoting of any person engaged in the construction of the Development. The Partnership must undertake the rehabilitation of the County Housing Improvements with a goal of not displacing any of the current residents of the County Housing Improvements.
To the extent that development of the Affordable Development results in the permanent or temporary displacement of residential tenants, homeowners, or businesses, then Partnership shall comply with all applicable local, state, and federal statutes and regulations, (including without limitation California Government Code Section 7260 et seq., and accompanying regulations) with respect to relocation planning, advisory assistance, and payment of monetary benefits.
Partnership must submit evidence that the financing and funding identified in the financing plan will be available for disbursement prior to the close of escrow for the construction of the Housing Sites.
163\48\3282526.3 4
III. Cost of Agreement

This section presents the total estimated cost of the DDA to the City. Pursuant to California Government Code Section 52201 (a)(2)(B)(i), the cost of the DDA to the City includes all land acquisition costs, clearance costs, relocation costs, the cost of any improvements to be provided by the City, plus the interest on any loans or bonds to finance project under the terms of the DDA. The net cost can be either an actual cost, when expenditures exceed receipts, or a net gain, when revenues created by implementation of the Agreement exceed expenditures.

The Caltrans agreement requires that the City make a repayment of $0 purchase price for the Housing Sites.

The City's holding costs for the properties is de minimis.

The City has or expects to incur approximately $25,000 to $50,000 on internal staff costs and approximately $50,000 and $75,000 on third party costs, including; broker fees, legal fees, consulting fees, and other fees associated with the negotiation of the DDA and associated land transfer documents.

The City does not expect to incur any relocation costs associated with the transfer of the Housing Sites. If any relocation obligations arise, the Partnership has agreed to provide to pay for any relocation costs incurred as a result of the implementation of the DDA.

IV. Estimated Highest and Best Use Value of the Interest to be Conveyed

Section 52201 requires the City to identify the value of the interest being conveyed at the highest use permitted under the general plan and zoning in place on the property. The valuation must be based on the assumption that the Property is vacant, and that near-term development is required. The highest and best use of a property, is that use of the property that generates the highest property value and is physically possible, financially feasible, and legally permitted. The valuation does not take into consideration any extraordinary use, quality, and/or income restrictions being imposed on the development by the City. The value at highest and best use is based solely on the value created and not on whether or not that use carries out the development goals and policies for the City as set forth in the DDA.

This section presents an analysis of the fair market value of the properties to be conveyed at its highest and best use. This section explains the value of the properties to be sold to the Partnerships and the consideration being provided by the Partnerships. The section indicates that the consideration being provided is not less than the highest and best use value of the properties being conveyed.

The City and Caltrans obtained an appraisal for the property in its existing condition with its current land use designations which valued the property at approximately $6,220,000.

The purchase price of $0 being paid by the Partnerships is based on the parties 163\48\3282526.3 5
negotiation of the Property value taking into account the appraised value of the properties that are being conveyed as well as the impact on value of the properties resulting from the a use consistent with the Proposed Project.

V. Estimated Fair Re-Use Value of the Interest to be Conveyed

In calculating the fair re-use value, re-use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the DDA. The DDA covenants, conditions, or restrictions on the use of: (1) the Housing Sites are contained in the Regulatory Agreement.

The Developer has elected to use two standards of income and rent restrictions to restrict 100% of the units as affordable housing as permitted by the Density Bonus Law. To comply with both the Density Bonus Law and the Affordable Housing Ordinance, 20% of the Units (19 units) will be restricted per Table 1 at or below the applicable Health and Safety Code rent and income limit standards (see below). These units will have a deeper tax credit affordability level to ensure compliance with both tax credit and Health and Safety Code rent standards. As shown in Table 2, the remaining 80% of the Density Bonus restricted units will be restricted at or below the tax credit income levels with the corresponding rent limit for a term of 55 years.

The Partnership will have to comply with the more restrictive rents (Health & Safety Code or LIHTC rents) when determining the affordable rent calculations. The proposed affordability mix, results in an average affordability for the Proposed Project (excluding the manager's unit) of 48.9% AMI.

The Regulatory Agreement will restrict the residential units as follows:

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Each year, the Partnership must submit to the City a certification of compliance with the income and affordable housing cost covenants imposed by the Agreement.

The residual land value supported by the Project can be estimated as the difference between the total development costs (excluding acquisition costs) and the total available funding sources. The anticipated costs of development is summarized below and is estimated to be approximately $62,750,000, with approximately $57,110,000 of available private and public financing expected for the development. The Partnership estimates that the residual land value is roughly (-$2,699,000).

The total operating expenses for the Project have been estimated at $524,688 per year.

The income to be generated by the Development is derived entirely from the rental of the Units at an affordable housing cost and is estimated to be $634,956 per year, resulting in $110,268 of residual cashflow 50% of which will be used to fund repayment of soft debt.

Based on the foregoing analysis, the fair re-use value of the interest being conveyed is nominal.

VI. Explanation of the Difference (if any) between the Compensation to be paid to the City under the DDA and the Fair Market Value of the Property

Under Section 52201, the City is required to explain if the sale price is less than the fair market value of the interest to be conveyed, determined at the highest and best use consistent with the general plan and zoning, then the City must provide as part of this Summary Report an explanation of the reasons for the difference.

The DDA and Regulatory Agreement impose extraordinary controls on the Housing Sites. The impacts created by these requirements reduce the value of the Housing Sites from $6,220,000 at the highest use permitted under the allowable zoning, to the established fair reuse value of negative (-$2,699,000). The difference is directly and completely attributable to the convents, restrictions and development costs imposed by the DDA in furtherance of the City's policies to devote the Housing Sites to affordable housing.

VII. Creation of Economic Opportunity
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The Proposed Project, when constructed, will create economic opportunity in the City of Hayward. Section 52200.2 defines "economic opportunity" as any of the following:
Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that create, retain, or expand new jobs, at least one full-time equivalent, permanent job for every thirty-five thousand dollars ($35,000) of City investment in the project after full capacity and implementation; Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that increase property tax revenues to all property tax collecting entities, by at least 15 percent (15%) of total property tax resulting from the project at full implementation when compared to the year prior to the property being acquired by the government entity;
Creation of affordable housing;
Projects that meet the goals set forth in Chapter 728 of the Statutes of 2008 and have been included in an adopted sustainable communities strategy or alternative planning strategy or a project that specifically implements the goals of those adopted plans; or
Transit priority projects, as defined in Section 21155 of the Public Resources Code.

The City is providing $2,000,000 of financial assistance to the Partnership. The City has identified the following benefits that will result from implementation of the DDA and will create economic opportunity as defined in Government Code Section 52200.2.

B. Creation of Affordable Housing
The creation of affordable housing to meet demonstrated affordable housing needs identified in the housing element of the City’s general plan constitutes and economic opportunity. The Proposed Project will be subject to the requirements of the City's Inclusionary Housing Ordinance and will thus increase, improve, or preserve the supply of quality affordable housing in the community. The Development will create a total of 96 units of new multifamily rental affordable housing on the City Housing Parcels and result in the rehabilitation of at least eleven (11) units of naturally occurring affordable housing.

C. Job Creation
Under Section 52200.2(a) economic opportunity is achieved is an agreement results in the creation, retention or expansions of new jobs, at least one full-time equivalent, permanent job for every thirty-five thousand dollars ($35,000) of City investment in the project. As previously discussed, the City is not providing any financial assistance for 163\48\3282526.3 8
the Proposed Project. Nevertheless, the sale of the Property under the DDA will result in job creation as a result of the anticipated construction of the Development. During the construction of the Proposed Project, it is anticipated approximately 89 full-time equivalent (FTE) temporary construction jobs. Upon completion and full implementation, the Proposed Project is also anticipated to generate an estimated 33 FTE permanent jobs. .

D. Public Purpose
The transfer of the properties and construction of the Proposed Project will further the public purpose of economic development by creating jobs, affordable housing, and will contribute to the vibrancy in an area of the City that has suffered from historic underdevelopment as a result of the proposed and now defunct SR 238 freeway project.

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 22-036
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
New Solid Waste and Recycling Franchise Agreement: Approval of New Franchise Agreement and New Refuse, Recycling, and Organics Services Rates - Introduction of Ordinance

RECOMMENDATION
That Council:

1. Adopts a resolution (Attachment II) authorizing the City Manager to execute a new Franchise Agreement with Waste Management of Alameda County (WMAC); and

2. Introduces an ordinance (Attachment III) granting an exclusive franchise to WMAC incorporating the proposed Franchise Agreement; and

3. Adopts a resolution (Attachment IV) authorizing the City Manager to execute an extension to the current Memorandum of Understanding (MOU) with the Oro Loma Sanitary District (OLSD) and WMAC.

SUMMARY
The City holds a franchise agreement with WMAC to provide solid waste, recycling, and organic materials collection, and processing services. The current agreement commenced March 1, 2015 and was scheduled to expire March 1, 2022. The agreement includes the option to extend for three, 12-month periods, and on January 18, 2022, Council opted to extend the contract for one year. If the City extends the contract the maximum numbers of times, the agreement would expire March 1, 2025. Most recently, on January 18, 2022, staff requested from Council and was granted an extension of the exclusive negotiating period until June 30, 2022.

Staff recently completed negotiating with WMAC as authorized by Council. Key elements of the new contract include: acquisition of state-required new blue recycling containers and black trash containers; new public litter cans; surcharges for contamination and overages; and a new fleet of trucks for residential recycling provider Tri-CED. The tentative agreement recommended by staff includes maximum possible rate increase of 14.27%, effective March 1, 2023. This includes a maximum base rate adjustment of 8.27% and a consumer price index (CPI) portion of up to 6%.

CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
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File #:PH 22-036

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Authorizing the City Manager to execute a new Franchise Agreement with WMAC
Attachment III Ordinance
Attachment IV Resolution Authorizing the City Manager to execute MOU with OLSD and WMAC
Attachment V OLSD Maps
Attachment VI Schedule of Warnings and Surcharges
Attachment VII Rate Comparisons
CITY OF HAYWARD Printed on 6/24/2022Page 2 of 2
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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: New Solid Waste and Recycling Franchise Agreement: Approval of New Franchise Agreement and New Refuse, Recycling, and Organics Services Rates – Introduction of Ordinance

RECOMMENDATION

That Council:

1. Adopts a resolution (Attachment II) authorizing the City Manager to execute a new Franchise Agreement with Waste Management of Alameda County (WMAC); and

2. Introduces an ordinance (Attachment III) granting an exclusive franchise to WMAC incorporating the proposed Franchise Agreement; and

3. Adopts a resolution (Attachment IV) authorizing the City Manager to execute an extension to the current Memorandum of Understanding (MOU) with the Oro Loma Sanitary District (OLSD) and WMAC.

SUMMARY

The City holds a franchise agreement with WMAC to provide solid waste, recycling, and organic materials collection, and processing services. The current agreement commenced March 1, 2015 and was scheduled to expire March 1, 2022. The agreement includes the option to extend for three, 12-month periods, and on January 18, 2022, Council opted to extend the contract for one year. If the City extends the contract the maximum numbers of times, the agreement would expire March 1, 2025. Most recently, on January 18, 2022, staff requested from Council and was granted an extension of the exclusive negotiating period until June 30, 2022.

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BACKGROUND

WMAC has been the City’s solid waste and recycling services franchisee since at least the mid-1970s. WMAC provided the service under a different business name initially (Oakland Scavenger Company) and has, in the past thirty years, subcontracted with Tri-CED Community Recycling for residential recycling services.

The City’s current agreement with WMAC was approved by Council on January 20, 20151 for a term of up to ten years (seven years and three possible one-year extensions). The agreement includes the rate adjustments depicted in Table 1 below.

Table 1. Rate Adjustments for Current Agreement

Rate
Year
Effective
Date Approved Rate Adjustments Actual Rate
Adjustments
1 3/1/2015 Up to 10% 9.23%2
2 3/1/2016 3% 3.00%
3 3/1/2017 3% 3.00%
4 3/1/2018 Up to 10%, for WMAC to earn after-tax ROI of 5.5% 5.00% 5 3/1/2019 CPI (min. 3%, max. 6%)3 2.61%
6 3/1/2020 CPI (min. 3%, max. 6%) 2.84%
7 3/1/2022 CPI (min. 3%, max. 6%) 2.85%
8 – 10 CPI (min. 3%, max. 6%)

At the March 9, 20204 Council Sustainability Committee (CSC) meeting, the CSC discussed possible approaches to the new solid waste franchise agreement, and recommended the City start exclusive negotiations with WMAC. The CSC also expressed a desire for the City to partner with Hayward schools, if possible, so that solid waste services and outreach would be consistent throughout Hayward. The CSC also directed staff to be innovative and sustainability-minded in negotiations.

At its June 23, 20205 meeting, Council approved a period of exclusive negotiations with WMAC through October 31, 2020. Negotiations started as the most significant recycling law in California in 30 years, SB1383, was poised to take effect in January of 2022. Some of the many requirements of SB1383 include: mandatory monitoring of containers for contamination; acquisition of containers that comply with a mandated color-scheme (blue for recycling, black

1 https://hayward.legistar.com/MeetingDetail.aspx?ID=454157&GUID=005B0B35-316D-4C65-AE50- F4E9F752AF38&Options=&Search=
2 In 2015, the rate for single-family residential customers increased by 9.23%. The adjustment for multi-family customers varied depending on container sizes but ranged from 8.5 to 10%. The adjustment for commercial customers also included a new recycling rate, so the total adjustment varied, but a typical increase was approximately 13%. 3 The formula used for adjustments based on the Consumer Price Index (CPI) takes into account fees assessed by the State, County, and City, and projected revenues for WMAC. Therefore, the final increases were less than 3%. 4 https://hayward.legistar.com/LegislationDetail.aspx?ID=4389835&GUID=EFF0E6BA-0F1F-4CA3-B275- 1B18D86FF2EE&Options=&Search=
5 https://hayward.legistar.com/LegislationDetail.aspx?ID=4576643&GUID=060523BF-B23D-49D7-A78E- F40F4DB335C4&Options=&Search=

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or gray for trash, and green for organics); and procurement of organic material. Staff and WMAC worked to address these requirements through the franchise agreement.

At the October 27, 2020 meeting, Council extended the exclusive negotiating period until June 30, 2021.

At the November 9, 20206 CSC meeting, staff presented an update on negotiations. The CSC expressed a desire for increasing the number of public liter cans, as well as increasing the number of illegal dumping collections performed by WMAC, and flexibility on the contract length. At its March 8, 20217 meeting, the CSC heard from Hayward recycling service providers, WMAC and Tri-CED, about the ongoing negative effects of the China National Sword policy on the recycling markets in California, and the importance of reducing contamination in collected recyclables.

On June 15, 20218, Council approved an extension of the exclusive negotiation period with WMAC through December 31, 2021. On October 26, 20219, Council received a report updating them on franchise agreement negotiations and Council held a work session on the negotiations between the City and WMAC. Council expressed a desire to keeps rates reasonable, install more public litter cans, try to maintain the Main Street WMAC office, and maintain the bulky collection service. Council also expressed concern about SB1383 mandates wasting functional recycling and garbage carts merely due to their colors not matching the State’s new color scheme, and requiring jurisdictions to procure and disseminate a very large amount of organic material.

On January 10, 2022, staff presented an update to the CSC and recommended a one-year extension of the current contract. The CSC supported the recommendation and suggested bringing up the topic of a possible combined City of Hayward and Hayward Unified School District contract at the next Hayward Local Agencies Committee (HLAC) meeting. The CSC also recommended that staff promote the bulky item pick-up service in The Stack Newsletter. On January 18, 202210, Council approved the one-year extension of the contract and also granted an extension of the exclusive negotiating period until June 30, 2022.

On March 28, 2022, the CSC held a special meeting to receive an update on negotiations. The CSC’s comments included:
 Some support for closing the Main Street office, but not unanimous. Those in support noted that many bills are now paid electronically and that unpaid bills did not increase during the pandemic closure. Those opposed noted that the office should remain open for people who want or need to pay their bills with cash  Would like to see the new carts delivered with an electric truck  Want to minimize the rate increase
 Want to have input on locations of new Big Belly containers

6 https://hayward.legistar.com/LegislationDetail.aspx?ID=4686767&GUID=7FE71371-C877-447E-993D- AFA9732B3526&Options=&Search=
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On April 5, 2022, Council held a work session to review an update on negotiations with WMAC. Comments included:
 Most supported the option to keep the current schedule of annual rate increases occurring on March 1 and to have the initial rate increase occur on March 1, 2023, rather than on September 1, 2022, so that customers don’t experience two separate rate increases in a single year.
 Support for the increase in illegal dumping collections  Support for the new Big Bellies public waste containers  Some were in favor of closing the Main Street office, but also wanted to know the potential cost savings before making a final decision
 Support for minimizing the rate increase

DISCUSSION

As of the April 5 Council meeting, most of the key terms were tentatively agreed upon.

Since April 5, staff met with WMAC representatives a dozen more times to finalize details of the alterations to be made to the Franchise Agreement. The following elements were agreed upon after April 5, 2022.

Duration
As requested by Council, the ten-year term and the initial rate adjustment would commence March 1, 2023, and the Agreement would end February 28, 2033.

The new contract duration would be three years longer than the current term. Staff recommends a ten-year initial term, plus three one-year extensions at the sole discretion of the City. The reason for the longer term is to allow more time to pay for costs incurred in the first two to three years of the agreement such as those for new trucks and carts.

Provisions for Smart Truck – Overages and Contamination City staff confirmed with WMAC that the Smart Truck program can meet SB1383 requirements for trash monitoring by capturing images of unbagged organics with cameras on the trucks.

New Diversion Goals
The current contract includes very ambitious landfill diversion requirements for WMAC called the franchise recovery rate11. In addition to the ambitious nature of the original goals, China’s National Sword policy and its severe negative impact on the recycling industry made the goals too difficult to reach and they were not attained. For example, the current landfill diversion requirement for 2022 is 74%, and WMAC’s franchise recovery rate for 2021 was 35%.

WMAC and City staff agreed upon new diversion goals earlier in negotiations that more realistically align with the current recycling markets. Since April 5, staff and WMAC confirmed the formula that will be used to calculate diversion. Following are the tentatively agreed upon franchise recovery rate requirements for each year of the new contract.

11 The franchise recovery rate only applies to material collected by WMAC. The franchise recovery rate does not include material self- hauled to the Davis Street Transfer Station or material handled by third parties.

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Year Franchise Recovery Rate
2023 36%
2024 37%
2025 38%
2026 40%
2027 42%
2028 44%
2029 46%
2030 48%
2031 49%
2032 50%
2033 50%

Hayward’s overall diversion rate as reported to CalRecycle was 73% in 2020. Staff estimates that if the above-listed goal for 2032 is achieved, then Hayward’s overall diversion rate would improve by approximately 10%. WMAC plans to reach the proposed franchise recovery rate requirements by upgrading their sorting equipment at the Davis Street facility in San Leandro, increasing outreach about contamination and focusing outreach on customers who produce the highest volume of solid waste. WMAC also plans to ensure commercial customers comply with SB1383, and help larger generators of dry waste better separate their recyclables. The current agreement allows the City, after following due process, to assess liquidated damages of $100,000 per year for failure to comply with diversion requirements. WMAC has agreed to keep this provision in the new contract.

References to the ORRO
On November 16, 2021, Council voted to opt into the Alameda County Organics Reduction and Recycling Ordinance (ORRO). The ORRO replaced the Mandatory Recycling Ordinance (MRO) that was adopted by Hayward in 2012. Staff and WMAC updated the Franchise Agreement language to reference the ORRO instead of the outdated MRO.

Changes in Value of Recyclables
The City will allow WMAC to request rate adjustments for severe changes to WMAC’s revenue from the sale of recycling commodities. If the value of an agreed-upon blended recycling commodities index decreases by 25% or more in one year, WMAC would receive additional compensation. If the value of the blended recycling commodities index increases by 25% or more in one year, WMAC would receive reduced compensation.

The revised draft Franchise Agreement also includes other changes and updates including the following:

Procedures for Flagging Overages and Contamination
WMAC may alert customers to overage or contamination issues through email, phone, or text messages and is not required to leave a physical notice on the container.

Insurance Provisions

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Contract language regarding insurance provisions was adjusted so that the Agreement does not require WMAC to divulge confidential information related to pending WMAC legal matters.

Route Schedules
City staff agreed to allow WMAC to change days of service to commercial accounts without City consent only for route efficiency and load balancing. Previous contract language required WMAC to seek City approval in all circumstances, which was not necessary or practical.

Record Keeping and Monthly Reports
Reporting requirements were altered so that WMAC may provide certain information, including customer account data, to the City upon request, instead of with each monthly report. For confidentiality purposes, WMAC will now provide the City with the destination of recyclables sold rather than both the destination and the name entity purchasing the material.

Public Education and Special Events
The City and WMAC updated the list of public education events WMAC will attend and also updated the list of Hayward special events for which WMAC will provide waste and recycling containers.

Main Street Office
WMAC’s office on Main Street has been closed for most of the pandemic. Closing the office would save Hayward approximately $300,000 per year, or about 0.4% of the proposed rate increase that would be implemented with the new contract. This equates to approximately 16 cents per month for the typical single-family household.

The following tentatively agreed-upon elements have not changed since the April 5, 2022 report to Council.

Multi-Family Properties – Eliminate Surcharge for the Use of Bins for Recycling While Tri-CED provides recycling services for most residential customers in Hayward, Tri- CED does not have front-end-load trucks used to service metal bin containers. However, some properties would rather use bins than carts, and properties that choose recycling bin service must be serviced by WMAC. When the current contract was negotiated, it was agreed that these properties would pay the per dwelling unit recycling fee paid by all multi- family properties and also a discounted rate for recycling bins from WMAC. This discounted rate was 20% the cost of an equivalent-sized solid waste bin. In the spring of 2021, it was discovered that the rate for recycling bins had been inadvertently increased to be 50% the cost of an equivalent-sized solid waste bin. On June 15 202112, Council approved refunds to multi-family customers for the difference and the refunds were applied to customer bills in the autumn of 2021. WMAC and staff have tentatively agreed to not require multi-family properties to pay any additional rate for a recycling bin. This way,

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all multi-family properties will be charged the same per dwelling unit recycling fee regardless of container type or size.

SB 1383 Cart and Bin Requirements
SB 1383 and subsequent regulations developed by CalRecycle13 include several requirements that the franchise agreement can help address, including a cart color mandate. Trash carts are mandated to be black or gray, recycling carts are mandated to be blue, and organics carts are mandated to be green. WMAC and Tri-CED will replace all trash and recycling carts to meet SB1383 requirements, which in addition to being compliant will also provide Hayward customers with sturdy carts over the life of the contract, which could potentially be thirteen years. WMAC will also paint, replace, or change the lid color of existing bins to match the required color scheme.

SB1383 Organics Procurement
SB1383 requires that jurisdictions procure organics material annually based on population, and Hayward’s requirement equates to about 13,000 tons of mulch or compost needing to be procured annually. WMAC has agreed to increase the amount of compost provided for compost giveaways from 5,000 bags of compost to 10,000 bags per year. The compost giveaways have become very popular and the increase in bags will allow more residents to receive compost. In addition to the bagged compost, the City will need to procure approximately 12,500 tons of compost or mulch to meet SB1383 requirements. CalRecycle has indicated that strict enforcement of this requirement may not occur until 2025 and also that jurisdictions may receive credit for compost used on some private building projects.

Staff and Stopwaste continue to work with CalRecycle to clarify procurement requirements and enforcement plans. WMAC is willing to include the cost of compost procurement in the new franchise agreement.

SB1383 Monitoring for Contamination
SB1383 requires monitoring customers’ containers for contamination. Staff and WMAC have discussed at length the procedures and criteria to be used to define and determine levels of contamination. WMAC has proposed to use cameras on collection trucks to monitor contamination, and also implement a method of charging fees for repeated occurrences of unacceptable levels of contamination. The warnings and surcharges related to contamination are listed in Attachment V.

Overage Charges
In addition to monitoring contamination, staff tentatively agreed to allow WMAC to use the truck camera system to monitor for overages and implement a method of charging fees for overflowing carts and bins. Overage would be defined as a container’s lid being open by 12 inches or more. Minimizing over-filled containers can reduce litter as material is less likely to fall or blow out of containers when the lids are completely closed.

Big Belly Trash Receptacles
WMAC has agreed to increase the total number of public litter cans allowed citywide from 400 to 500, and allow for the installation of twenty-five Big Belly dual containers (trash &

13 https://www.calrecycle.ca.gov/organics/slcp/

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recycling), per year over the first four years of the contract. In addition, staff is considering replacing all the black metal cans in the Downtown area with new Big Belly dual containers. Many of the lids have been removed from the black metal cans and the Big Belly design deters over-filling and scavenging.

Public Litter Container Service
WMAC has agreed to use its Smart Truck technology to record video of the servicing of public litter cans to ensure cans receive the agreed-upon schedule of service. WMAC will provide monthly summaries of locations and dates of servicing for each container and accept increased liquidated damages for missed collection while also adding contract definitions for Abandoned Waste, Litter, and Excluded Material.

Davis Street Self-Haul Vouchers for Excess Waste
WMAC has agreed to continue offering 5,000 free disposal coupons every calendar year to all Hayward residents, despite the fact that currently residents only use about 1,200 coupons per year. The coupons are redeemable for the disposal of 2 cubic yards of waste at the Davis Street Transfer Station.

Household Battery Collection Expansion
Currently, household battery collection is only offered to single-family homes. WMAC has indicated it can provide collection containers for multi-family properties that may be located in a property manager’s office. WMAC has also agreed to provide containers for collection of household batteries in public locations such as City Hall and the libraries.

Electric Vehicles
Staff strongly urged WMAC to leverage the opportunity presented by a new franchise agreement to seriously investigate deploying new electric route trucks instead of acquiring new compressed natural gas (CNG) trucks. WMAC has indicated that electric vehicle technology needs to mature further in order to feasibly and reliably power the hydraulic lift system and carry the heavy load of a collection truck. However, WMAC agreed to include some electric-power trucks to perform route service, should technological and economical changes occur through the course of the contact. In the near term, WMAC agreed to add smaller electric support vehicles such as supervisor pick-ups, and trucks that deliver carts or collect bulky material to its fleet that serves Hayward, as current technology allows those vehicles to operate reliably. Tri-CED also agreed to add an electric pickup truck and a flatbed truck for container distribution to its fleet.

Memorandum of Understanding with WMAC and OLSD:

The Council approved a Memorandum of Understanding (MOU) in 1997 between Oro Loma Sanitary District (OLSD), WMAC and the City regarding some areas in Hayward that have historically been served by OLSD for sewer and refuse services. These areas, which include about 3,500 single-family homes and multi-family residences in five locations, are generally located in the northern areas of Hayward between A and Longwood Streets and along Foothill Boulevard north of the City Center Drive (see the maps included in Attachment I V).

Under that MOU, which was set to expire with the current franchise Agreement, the City was given the authority to provide recycling services in those areas. OLSD and WMAC have

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signed a new MOU whereby extending the same authority to the City for the duration of the new franchise. Staff recommends Council approve the attached resolution (Attachment I V) authorizing the City Manager to execute the MOU.

ECONOMIC IMPACTS

As per comments and directions from the CSC and Council, staff is striving to keep rates reasonable and enhance services and has considered equity throughout negotiations. Staff negotiated a reduced cost of recycling bins for multi-family dwellings, retained the smallest, lowest cost garbage cart rate and the continuation of bulky collection for multi- family dwellings. Staff also negotiated for a new battery collection service for multi-family properties as it is currently only available to single-family properties. The low-income rate assistance program will also remain part of the agreement. Maintaining reasonable solid waste and recycling service fees and improving service levels would have a positive impact on the community. Despite staff’s efforts, state requirements (SB1383), Tri-CED’s need for new trucks, and inflation have combined to necessitate a rate increase of 8.27% plus an anticipated CPI of 6%.

Proposed Rate Adjustment
The rate increases since 2015 have allowed WMAC to maintain a good financial position.

Tri-CED, the subcontractor providing residential recycling services, is seeking a larger rate increase due to higher costs for processing recyclables coupled with increased tonnage and contamination in the last few years. In addition, Tri-CED’s labor costs have increased significantly in the last seven years, exceeding the annual rate adjustments. The total rate adjustment requested by WMAC, including Tri-CED’s portion, is 7.39%. The proposed rate adjustment is based on several factors, but is primarily due to:

 New garbage and recycling materials carts for compliance with SB1383.  Organics procurement for compliance with SB1383.
 New cameras and monitoring program for Tri-CED compliance with SB1383.  General inflation and increases in labor costs that have occurred since the beginning of negotiations.
 Complete fleet of new trucks for Tri-CED.

The City has the option to select the following services – all of which could be provided for an additional rate increase of 0.88% or a total rate increase of 8.27%. Staff recommends including the optional services including:

 WMAC has agreed to increase the amount of compost provided for compost giveaways from 5,000 bags of compost to 10,000 bags per year and an increase from 500 cubic yards to 1,500 cubic yards the bulk compost or much provided for City use each year. (0.20%)
 Changes in the management and disposal of Hayward’s biosolids due to new legislation and increased costs for the transportation of biosolids, dirt and grit from the City’s Water Pollution Control Facility. (0.39%)

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 167 new Big Belly trash and recycling containers to replace the black metal cans downtown and many of the concrete cans throughout Hayward. (0.19%)  Purchase of an electric pickup truck and a flatbed truck for WMAC. (0.10%) As noted above, the initial rate adjustment could be lower if WMAC’s Main Street office is closed permanently. The savings would be 0.39%, so if all the above options are selected and if the office is closed, the initial rate adjustment would be 7.88%.

As noted in the previous Council report, the rate adjustment effective March 1 will also include a consumer price index (CPI) component that can be no higher than 6% and no lower than 3% despite the fact that the current inflation rate is well above 6%. The following tables show the elements of the initial rate increase and their percentage of the increase. The maximum possible rate increase effective March 1, 2023 is

14.27%. Attachment VI includes comparisons of Hayward’s existing and maximum potential new rates with those of other nearby communities.

Table 2. Initial Rate Adjustment Tentatively Negotiated

Initial Rate Adjustment

3.72% WMAC incremental cost increases

3.67% Tri-CED incremental cost increases

7.39% Total

0.88% Options recommended by staff

8.27% Total with Options

6.00% Maximum CPI possible (Minimum 3%, Maximum 6%)

14.27% Maximum Total Possible Rate Increase

-0.39% Savings from closing Main Street office permanently

13.88% Total max. possible if Main Street office closed

Detail for WMAC’s incremental cost increases totaling 3.72%

0.31% SB1383 carts

0.69% Organics Procurement (Compost/Mulch required by SB1383)

0.97%
Program enhancement (Big Belly and public litter can service, public education and outreach, performance bond, illegal dumping, and battery collection)

0.57% Elimination of MF Bin Surcharge

0.56% Increase in collection/processing of Commercial Food Waste

0.62% Recent increases in costs of new carts and trucks due to inflation

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Detail for Tri-CED’s incremental cost increases totaling 3.67%

1.05% Processing cost

1.03% Trucks

0.68% SB1383 Compliance (carts and monitoring)

0.91% Labor and Vehicle Maintenance

Options totaling 0.88%

0.20%
 Additional bagged compost for giveaway events (increasing from 5,000 bags to 10,000 bags per year)
 Increasing the bulk compost/mulch provided for City landscape projects

0.39% Changes in disposal of biosolids, grit, dirt.

0.19% 167 additional Big Bellies

0.10% Electric pickup and flatbed for WMAC

Low-income Discount for All Cart-Based Customers
A discount of $11.20 per month is available for low-income customers with individual solid waste and recycling service. This discount is also available to low-income residents of mobile home parks with individual cart service. Currently, residents of seven out of nine mobile home parks in the City’s service area subscribe to individual cart-based service.

The low-income eligibility starts at a one-person household earning up to $47,950 per year and up to $90,450 per year for an eight-person household.

Rate Adjustment Implementation: As directed by Council, staff worked with WMAC to ensure that the initial rate increase will be applied on March 1, 2023. This will maintain the current schedule of annual adjustments occurring on March 1 each year, and also avoid customers experiencing two rate increases in one calendar year.

Future Rate Adjustments
For years two through ten, staff recommends annual rate adjustments similar to those in the current contract. Table 3 shows that for all years, except year 5, the adjustment would be based on CPI, but no greater than 6%. For year 5, WMAC has requested a cost-based analysis be conducted to ensure a minimum return on investment. The cost-based analysis would follow the same procedure used in year 4 of the current contract.

Table 3. Future Rate Adjustments Tentatively Negotiated Rate
Year Rate Adjustments
2 – 4 CPI (min. 3%, max. 6%)
5 Up to 10%, for WMAC to earn after-tax ROI of 5.5%
6 – 10 CPI (min. 3%, max. 6%)

FISCAL IMPACTS

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Negotiation of a new franchise agreement continues to require significant staff time; however, such staff time will be absorbed by already budgeted positions. If the proposed rate adjustment is approved, Franchise Fees will similarly increase, which will benefit the City’s General Fund, Recycling Fund, Stormwater Fund, and Street System Improvement Fund.

Franchise Fees
Staff recommends no change in the total franchise fees, but staff is proposing a re- allocation of the existing fees as shown below in Table 4. The change would increase the amount of the Street Impact Fee to address Hayward’s increasing costs for pavement rehabilitation. There would be a corresponding decrease in the Street Cleaning Fee. Staff has completed a ten-year financial projection to ensure that this change will not adversely impact the City’s ability to meet the required expenditures related to street cleaning.

Table 4. Recommended Re-Allocation of Franchise Fees
Existing Proposed
Franchise Fees 13.5% 13.5%
Street Cleaning Fees 2.5% 1.0%
Street Impact Fees 1.0% 2.5%
Measure D Augmentation 1.0% 1.0%
Total 18.0% 18.0%

STRATEGIC ROADMAP

This agenda item does not directly relate to any of the six priorities outlined in the Council’s Strategic Roadmap, however the new franchise agreement would support the following projects:

Confront Climate Crisis and Champion Environmental Justice:

Project C12 Conduct outreach regarding AB1276 - single-use disposables Project C13 Explore funding opportunities to increase the circular food economy in Hayward as part of the Alameda County All in Eats Initiative

Support Quality of Life:

Project Q17 Implement targeted illegal dumping prevention program Project Q17b Pilot programs and analysis
Project 7c Roll out permanent program

SUSTAINABILITY FEATURES

Solid waste management involves the safe and responsible management of discarded material from generation through processing to disposal. Reducing waste landfilled by maximizing the reuse, recycling, and composting of materials increases diversion, conserves natural, resources, and plays an important role in making a community sustainable.

PUBLIC CONTACT

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In accordance with the requirements of Proposition 218, on May 13, 2022, a notice was prepared and mailed to all property owners and rate payers in Hayward. The Notice stated that the initial rate increase, effective March 1, 2023, would not exceed a 14.27% increase.

As indicated above, this is the maximum possible increase, which includes a base rate of

8.27%, which includes the cost to keep the WMAC office on Main Street open, should Council decide to keep the office, as well as a maximum CPI of 6%. The notice is required to be mailed 45 days prior to the public hearing and the mailing date was selected to meet this requirement. The Notice advised the recipients that if they disagree with the potential increases they can protest, in writing, and that if Council receive protests from more than 50% of the rate payers, Council would not approve the new rates. To date, twenty-three protest letters have been received, none of which were from commercial customers. In addition, no petitions were received from mobile homeowners. For comparison, at the same time during the process of the public hearing for the existing Franchise in 2015, staff had received thirty-one protest letters and petitions with 129 signatures and in 2007, staff had received over 550 protest letters. The protest letters received this year include the following arguments:
 Proposed increase to the rates is too severe
 City should delay rate increase because residents are experiencing hardships due to COVID-19 and inflation
A notice of this public hearing was published in the Daily Review on June 17, 2022.

NEXT STEPS

If Council adopts the attached resolutions and introduces the ordinance staff will schedule adoption of the ordinance for a subsequent Council meeting. If the ordinance is adopted, staff will execute the new Franchise Agreement with WMAC with an effective date of March 1, 2023. Prior to March 1, 2023, staff will work with WMAC to perform outreach to residents and businesses regarding the proper sorting and loading of containers, the smart truck system and the contamination and overage surcharges. WMAC will order Big Bellies, as well as carts that meet the SB1383 color requirements, and WMAC will set a schedule to start replacing carts. In addition, upon execution of the Agreement, Tri-CED will order new trucks.

Prepared by: Jeff Krump, Solid Waste Program Manager
Erik Pearson, Environmental Services Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:
_____________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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RESOLUTION NO. 22-

Introduced by Council Member ____________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FRANCHISE

AGREEMENT WITH WASTE MANAGEMENT OF ALAMEDA COUNTY FOR

SOLID WASTE, RECYCLABLE MATERIALS AND ORGANIC MATERIALS

SERVICES

WHEREAS, Ordinance 15 -04, adopted by Council on January 27, 2015, granted an exclusive franchise to Waste Management of Alameda County (WMAC) for solid waste, recyclable materials and organic materials services and the exclusive franchise remains in effect until canceled; and

WHEREAS, WMAC is currently providing residents and businesses with Solid Waste Collection and Disposal services, as well as Collection and Processing of Recyclable Materials and Organic Materials in the City, pursuant to a January 27, 2015 Franchise Agreement; and

WHEREAS, the current agreement commenced March 1, 2015, and was scheduled to expire March 1, 2022, however, on January 18, 2022, Council extend ed the contract so that it is now scheduled to expire on March 1, 2023; and

WHEREAS, the current agreement allows the City to extend the agreement for two additional 12-month periods and if extended the maximum numbers of times, the agreement would expire March 1, 2025; and

WHEREAS, on June 23, 2020, Council approved a period of exclusive negotiations with WMAC through October 31, 2020 and subsequently approved extensions, the most recent being on January 18, 2022, when the exclusive negotiating period was extended to June 30, 2022; and

WHEREAS, the parties wish to amend the current Franchise Agreement in its entirety and enter into a new agreement with a Commencement Date of March 1, 2023, in order to allow the City to better meet the needs of City rate payers, and to meet the goals and requirements of SB1383, the California Integrated Waste Management Act (AB 939) and California Jobs and Recycling Act (AB 341) (California Public Resources Code §§ 40000, et seq.), Alameda County Waste Reduction and Recycling Initiative Charter Amendment (Measure D), and the City’s own goals; and

WHEREAS, upon the Commencement Date of the new Agreement, all terms contemplated under the Agreement will supersede all prior agreements between the parties; and

ATTACHMENT II

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WHEREAS, the Legislature of the State of California, by enactment of AB 939 and subsequent additions and amendments (codified at California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste Collection within their jurisdiction; and

WHEREAS, the State of California has found and declared that the am ount of Solid Waste generated in California, coupled with diminishing landfill space and potential adverse environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of various regulations, directed the responsible State agency, and all local agencies, to promote Disposal Site Diversion and to maximize the use of feasible Solid Waste reduction, re-use, Recycling, and Composting options in order to reduce the amount of Solid Waste that must be Disposed of in Disposal sites; and

WHEREAS, under the City’s Municipal Code, the City has the authority to provide for the Collection and Disposal of Solid Waste, through a contract with a solid waste collection provider; and

WHEREAS, pursuant to California Public Resources Code Section 40059(a) as may be amended from time to time, the City has determined that the public health, safety, and well- being require that a qualified contractor provide for the Collection of Solid Waste, Recyclable Materials, Organic Materials, and Construction and Demolition Debris, and other services (except for Collection of materials excluded in the City’s Municipal Code) related to meeting the Diversion goals established by AB 341 and AB 939, as they may be amended from time to time; and

WHEREAS, the City has negotiated a tentative agreement with WMAC in an effort to provide high quality services to Hayward customers, minimize rate increases, and achieve compliance with local, state, federal and international laws.

NOW BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is h ereby authorized and directed to execute on behalf of the City of Hayward a franchise agreement with Waste Management of Alameda County.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

___________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

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HAYWARD CITY COUNCIL

ORDINANCE NO. 22-

Introduced by Council Member __________

AN ORDINANCE GRANTING EXCLUSIVE FRANCHISE TO WASTE

MANAGEMENT OF ALAMEDA COUNTY FOR SOLID WASTE, RECYCLABLE

MATERIALS AND ORGANIC MATERIALS SERVICES

THE CITY COUNCIL OF THE CITY OF HAYWARD DOES ORDAIN AS FOLLOWS:

Section 1. Pursuant to the authority granted under Hayward Municipal Charter Article XV , Franchises, and Hayward Municipal Code Sections 11 -1.00 et seq., the City Council hereby grants an exclusive franchise to Waste Management of Alameda County for solid waste, recyclable materials, and organic materials according to the terms and conditions set forth in the “Franchise Agreement for Solid Waste, Recyclable Materials, and Organics Materials Services between the C ity of Hayw ard and Waste Management of Alameda County, Inc.”, a copy of which can be reviewed in the City Clerk’s Office.

Section 2. The provisions contained herein describe and constitute all rights and obligations granted under the franchise, and supercede any prior agreements.

Section 3. The effective date of this ordinance shall be 30 days following adoption by the City Council. The franchise granted hereby shall not become effective until written acceptance thereof by Waste Management of Alameda County, Inc., shall have been filed with the City Clerk.

ATTACHMENT III

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INTRODUCTED at a regular meeting of the City Council of the City of Hayward,

held the ______ day of __________________, 2022, by Council Member __________________.

ADOPTED at a regular meeting of the City Council of the City of Hayward held the

______ day of __________________, 2022, by the following votes of member of said City

Council.

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ___________________________________
Mayor of the City of Hayward

DATE: ___________________________________

ATTEST: _______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

ATTACHMENT IV

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

EXTENSION TO THE CURRENT MEMORANDUM OF UNDERSTANDING WITH

ORO LOMA SANITARY DISTRICT AND WASTE MANAGEMENT OF ALAMEDA

COUNTY RELATED TO RESIDENTIAL RECYCLING PROGRAMS

WHEREAS, within the Oro Loma Sanitary District (District) and the City of Hayward (City) there is an overlapping area commonly known as the L-2 area which consists of approximately 3,500 single family and multiple-family residences (see attached maps); and

Whereas the District provides weekly collection of garbage and organics to all of its service area; and

Whereas the District offers all of its service area with bi -weekly collection of recyclables; and

Whereas the City provides weekly collection of garbage, recyclables, and organics under its Franchise Agreement; and

Whereas there is a current Memorandum of Understanding between the District, the City and Waste Management of Alameda County (WMAC) that authorizes the City to provide weekly collection of recyclables in the L-2 area.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to execute on behalf of the City of Hayward an extension to the Memorandum of Understanding (MOU) with Oro Loma Sanitary District and Waste Management of Alameda County related to residential recycling programs in substantially the form of the MOU on file in the office of the City Clerk.

ATTACHMENT IV

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ________________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

___________________________________________
City Attorney of the City of Hayward

Alameda County
Hayward
Alameda County
Hayward
Alameda County
Hayward
Alameda County
OLSD
OLSD
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OLSD
Oak St
Hayward

ORO LOMA SANITARY

DISTRICT SERVICE AREAS

LOCATED WITHIN
INCORPORATED HAYWARD ("L-2")
Map 1 of 3 ±
0 500 1,000250 FT

ATTACHMENT V
Hayward
Alameda County
OLSD
Hayward
Alameda CountyHayward
Alameda County
HaywardAlameda County
OLSD
OLSD
OLSD
OLSD
OLSD
Hayward
Alameda County
OLSD

ORO LOMA SANITARY

DISTRICT SERVICE AREAS

LOCATED WITHIN
INCORPORATED HAYWARD ("L-2")
Map 2 of 3
±
0 500 1,000250 FT
Hayward
Alameda County
OLSD
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HaywardAlameda County
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ORO LOMA SANITARY

DISTRICT SERVICE AREAS

LOCATED WITHIN
INCORPORATED HAYWARD ("L-2")
Map 3 of 3
±
0 500 1,000250 FT

ATTACHMENT V
Attachment VI
Proposed Surcharge Schedule

ATTACHMENT VII

Comparison of Monthly Garbage & Recycling Rates

Table 1, Multi-family Dwelling Rates (assuming 1x per week service for 20 units) Municipality Garbage (3cy) Recycling (1cy) Organics (1cy) Total Livermore $357.20 $89.30 $89.30 $535.80
Hayward (current) $412.81 $8.06 per unit Included w/ Garbage $574.01 Fremont $260.59 $7.61 per unit $161.76 $574.55
Union City (Republic) $434.94 $99.58 $99.58 $634.10
Hayward (proposed 14.27%) $471.72 $9.21 per unit Included w/ Garbage $655.92 City of Alameda (ACI) $519.16 $7.45 per unit $5.36 per unit $775.36 Castro Valley (ACI) $950.47 Included w/ Garbage Included w/ Garbage $950.47 Oakland (WMAC) $853.36 $16.14 per unit Included w/ Garbage $1,176.16

Table 2, Single-Family Dwelling Rates
Municipality Garbage (20 gallon) Garbage (30-35 gallon)* Garbage (60-64 gallon) Hayward (current) $25.77 $37.67 $67.18
Livermore $29.94 $39.63 $59.36
Fremont $41.39 $42.23 $46.02
Hayward (proposed 14.27%) $29.22 $43.05 $76.77
City of Alameda (ACI) $35.99 $45.43 $74.64
Castro Valley (ACI) $32.42 $50.26 $87.29
Oakland (WMAC) $46.13 $52.36 $92.29
Union City (Republic) $46.37 $54.37 $94.38
*Most common container size

Table 3, Commercial Rates (assuming 1x per week service) Municipality Garbage (3cy) Recycling (1cy) Organics (1cy) Total Fremont $258.79 $86.34 $161.76 $506.89
Livermore $357.20 $89.30 $89.30 $535.80
Hayward (current) $412.81 $80.12 $80.12 $573.05
Union City (Republic) $434.94 $99.58 $99.58 $634.10 Hayward (proposed 14.27%) $471.72 $91.55 $91.55 $654.82 City of Alameda (ACI) $519.16 $138.44 $138.44 $796.04
Castro Valley (ACI) $950.47 Included w/ Garbage Included w/ Garbage $950.47 Oakland (WMAC) $607.89 (open market) $191.45 -

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 22-018
DATE: June 28, 2022
TO: Mayor and City Council
FROM: Acting Assistant City Manager

SUBJECT
City of Hayward Homelessness Update: 1) Receive Results of 2022 Point-in-Time Count Results; 2) Receive an Update on City of Hayward Homelessness Efforts; 3) Adopt Resolutions for FY2023 Homelessness Related Professional Services Agreements

RECOMMENDATION
That the City Council:
- Receives the results of the 2022 Homeless Population Point in Time Counts for Alameda County and Hayward (Attachments II and III, respectively);
- Receives an update on the Let’s House Hayward! plan (Attachment IV); - Adopts a resolution (Attachment V) authorizing the City Manager to amend the agreement with First Presbyterian Church of Hayward to Increase the Winter Warming Shelter Contract by $405,868 for a total amount Not-to-Exceed $2,050,000;
- Receives an update on the Hayward Navigation Center and Hotel Annex programs (Attachment VI);
- Adopts a resolution (Attachment VII) authorizing the City Manager to negotiate and Execute an Agreement with Bay Area Community Services (BACS) for Hayward Navigation Center FY 2023 Operations in an Amount Not-to-Exceed $2,465,604; and
- Adopts a resolution (Attachment VIII) authorizing the City Manager to extend and amend the agreement with BACS to increase the Hayward Navigation Center Hotel Annex Contract by $338,365 for a total amount Not-to-Exceed $1,838,365.

SUMMARY
The data contained in the 2022 Point-in-Time Count (PIT) is an essential tool to understanding the scope, CITY OF HAYWARD Printed on 6/24/2022Page 1 of 2
powered by Legistar™
File #:LB 22-018
trends, and causes of homelessness in our community and throughout the region. The data is the result of a coordinated regional effort that includes every jurisdiction in Alameda County. This report summarizes the findings of the 2022 Point-in-Time Count and Survey of homeless persons in Alameda County and Hayward that was conducted and led by EveryOne Home in January 2022 (Attachment II and Attachment III, respectively).

Council has long identified homelessness and housing affordability as key issues in the community and has supported local efforts to address these issues in conjunction with the larger regional efforts. In the past several years, the City has taken several aggressive local measures to address this growing humanitarian crisis. This report contains updates on these initiatives, including the year one report out on Let’s House Hayward! Homelessness reduction strategic plan, the two- and half-year progress report on the Hayward Housing Navigation Center and Hotel Annex, and the City’s ongoing partnership with Alameda County.

ATTACHMENTS
Attachment I Staff Report
Attachment II Alameda County PIT Data
Attachment III Hayward PIT Data 2022
Attachment IV LHH Plan Update
Attachment V Resolution to Amend Agreement with FPCH for FY22 Winter Warming Shelter Services
Attachment VI HNC and Annex Report
Attachment VII Resolution with BACS for FY23 Hayward Navigation Center Services Attachment VIII Resolution to Amend Agreement with BACS for FY22 Annex Services CITY OF HAYWARD Printed on 6/24/2022Page 2 of 2
powered by Legistar™

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DATE: June 28, 2022

TO: Mayor and City Council

FROM: Acting Assistant City Manager

SUBJECT: City of Hayward Homelessness Update: 1) Receive Results of 2022 Point-in- Time Count Results; 2) Receive an Update on City of Hayward Homelessness Efforts; 3) Adopt Resolutions for FY2023 Homelessness Related Professional Services Agreements

RECOMMENDATION

That the City Council:

- Receives the results of the 2022 Homeless Population Point in Time Counts for Alameda County and Hayward (Attachments II and III, respectively);

- Receives an update on the Let’s House Hayward! plan (Attachment IV);

- Adopts a resolution (Attachment V) authorizing the City Manager to amend the agreement with First Presbyterian Church of Hayward to Increase the Winter Warming Shelter Contract by $405,868 for a total amount Not-to-Exceed $2,050,000;

- Receives an update on the Hayward Navigation Center and Hotel Annex programs (Attachment VI);

- Adopts a resolution (Attachment VII) authorizing the City Manager to negotiate and Execute an Agreement with Bay Area Community Services (BACS) for Hayward Navigation Center FY 2023 Operations in an Amount Not-to-Exceed $2,465,604; and

- Adopts a resolution (Attachment VIII) authorizing the City Manager to extend and amend the agreement with BACS to increase the Hayward Navigation Center Hotel Annex Contract by $338,365 for a total amount Not-to-Exceed $1,838,365.

SUMMARY

The data contained in the 2022 Point-in-Time Count (PIT) is an essential tool to understanding the scope, trends, and causes of homelessness in our community and throughout the region. The data is the result of a coordinated regional effort that includes

Page 2 of 9 ends

every jurisdiction in Alameda County. This report summarizes the findings of the 2022 Point- in-Time Count and Survey of homeless persons in Alameda County and Hayward that was conducted and led by EveryOne Home in January 2022 (Attachment II and Attachment III, respectively).

BACKGROUND

Every two years, the US Department of Housing and Urban Development (HUD) requires communities to conduct a Point-in-Time (PIT) Count of individuals, youth, and families experiencing homelessness and provide accompanying data. The PIT count provides a “snapshot” of homelessness (both sheltered and unsheltered) in the community and nationally. Locally, the data helps to inform program, policy, funding, and system design decisions; measure progress in decreasing homelessness; increase public awareness; and advocate for additional resources in the effort to end homelessness nationwide.

On Wednesday, February 23rd, 2022, Alameda County held the 2022 Homeless Point in Time (PIT) Count, the first count since 2019. The 2021 PIT count was postponed due to the COVID- 19 pandemic.

Data is collected through four primary components:

1. General street count: an observation-based enumeration of unsheltered individuals between the hours of approximately 5:00 a.m. and 10:00 a.m.;

2. Youth count: a targeted enumeration of unsheltered youth under the age of 25 between the hours of approximately 2:30 p.m. and 7:30 p.m.;

3. Sheltered count: an enumeration of individuals residing in emergency shelter, safe haven, and transitional housing facilities on the night before the street count; and

4. Survey: an in-person survey of a randomized sample of unsheltered and sheltered individuals conducted by trained peer surveyors and program staff in the weeks following the general street count.

County-wide data was released on June 17, 2022 through a publicly available online dashboard: https://public.tableau.com/app/profile/asr1451/viz/TableauAlamedaCounty- HDXandSurveyData/ExecSum?publish=yes.

DISCUSSION

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Homelessness is an extraordinarily difficult and persistent regional issue. The scope and intractability of the homelessness issue are such that no individual jurisdiction can hope to address - much less end it - alone with the limited resources at hand. A coordinated county- wide effort to address homelessness is paramount.

2022 Point-in-Time Count and Survey – Key Findings

Key county-wide findings from the survey data include:

 Total count: 9,474 homeless persons were counted county-wide in 2022. This represents a 22% increase since the previous 2019 count, which recorded 8,308 homeless persons county-wide.

 Unsheltered homelessness: 73% of homeless persons are unsheltered – meaning that they dwell in tents, parks, vehicles, vacant buildings, underpasses, and other locations not intended nor fit for human habitation. This is a decrease from 79% in 2019.

 Prior residency: 82% of survey respondents were living in Alameda County when they most recently became homelessness. 68% of survey respondents have resided in Alameda County for 10 or more years.

 Race and ethnicity: Alameda County continues to see disproportionately higher rates of homelessness among Black/African American compared to the total population. o The majority (43%) of all survey respondents are Black/African American, followed by white (39%).
o Whereas 43% of all surveyed homeless individuals in Alameda County are Black or African American, compared to just 10% of their total County population, 39% of all survey homeless individuals in Alameda County are white, compared to 34% of their total County population.

 Prevention: Among survey respondents, the top three primary causes of homelessness were 1) dispute/argument with family/friend/roommate; 2) eviction/foreclosure; and 3) job loss. When asked what may have prevented their homelessness, 49% of respondents cited rental assistance, 37% cited employment assistance, 27% cited mental health assistance, and 26% cited benefits/income.

The executive summary of the Alameda County 2022 PIT count and survey data are provided in Attachment II.

Key Hayward findings from the survey data include:

 Total Count: According to the 2022 PIT count, from 2019 and 2022, there was a 22% decrease in homelessness in Hayward, with 487 total homeless in 2019 to 381 total homeless in 2022.

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 Unsheltered homelessness: 70% of homeless persons are unsheltered – meaning that they dwell in tents, parks, vehicles, vacant buildings, underpasses, and other locations not intended nor fit for human habitation. This is decrease from 76% in 2019.

 Prior residency: 89% of Hayward survey respondents were living in Alameda County when they most recently became homelessness. 75% of Hayward survey respondents (n=86) have resided in Alameda County for 10 or more years. 64% of Hayward survey respondents (n=83) consider Hayward their home.

 Race and ethnicity: Hayward continues to see disproportionately higher rates of homelessness among Black/African American individuals compared to the total population.
o 29% of all surveyed homeless individuals in Hayward are Black or African American, compared to just 11% of their total County population. o A majority of all Hayward survey individuals are white (62%) followed by Black/African American (29%).

 Prevention: Among Hayward survey respondents, the top three primary causes of homelessness were 1) dispute/argument with family/friend/roommate; 2) job loss; and 3) eviction/foreclosure. When asked what may have prevented their homelessness, 52% of respondents cited rental assistance, 25% cited mental health assistance, 21% cited employment assistance, 21% cited benefits/income, and 21% cited family counseling.

The executive summary of the Hayward 2022 PIT count and survey data are provided in Attachment III.

Local Efforts to Address Homelessness
Council has long identified homelessness and housing affordability as key issues in the community and has supported local efforts to address these issues in conjunction with the larger regional efforts. Outlined below are updates on several of the City’s key homelessness prevention and response initiatives, including the Let’s House Hayward! Strategic Plan, the Hayward Housing Navigation Center and Hotel Annex, and the City’s ongoing partnership with Alameda County.

Let’s House Hayward! Update
In July 2021, Council approved the City’s Let’s House Hayward! Plan (LHH Plan), a local homelessness reduction strategic plan. 1 The plan uses a racial equity lens, aligns with existing regional plans, centers individuals with lived experience, leverages Hayward’s strengths and previous efforts, addresses Hayward’s unique needs, and establishes a pipeline of projects and

1 July 13th, 2021, City Council Meeting Agenda and Materials (LHH Plan):
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317- E2797DF45328&Options=&Search=

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programs that are community-driven to set the City up to quickly respond to upcoming funding and partnership opportunities. The LHH Plan contains three over-arching goals:

1. Formalize a Coordinated and Compassionate Citywide Response to Homelessness and Develop Wider Community Understanding and Engagement

2. Increase Availability of and Reduce Barriers to Homeless Crisis Response Services

3. Ensure Access to and Retention of Affordable Permanent Housing

At the same time as adopting the LHH Plan, Council also approved the City’s Federal Stimulus Expenditure Plan, which outlines how the City will spend approximately $38 million in American Rescue Plan Act (ARPA) funding. 2 As detailed in Attachment IV, several LHH activities were funded through the City’s ARPA allocation.

Attachment VI also provides a detailed update on the implementation status of each LHH activity. Key implementation highlights include:
 Enhanced interdepartmental collaboration efforts across City departments, including improved referral infrastructure allowing Maintenance Services, Hayward Fire, and Hayward Police Departments the ability to refer individuals to the HNC and Annex  Ongoing collaboration and partnership with the County, including participation in bi- weekly meetings, the Home Together planning committee, Alameda County Mayors Technical Working Group, and homeless outreach coordination meetings  Allocated funding to transition the winter warming shelter into a year-round facility with day-time hours
 Issued a RFI and selected two projects for submission for State Homekey grant funding  Began operation of Hayward Evaluation and Response Team (HEART) program, an innovative new program serving community members experiencing mental illness, substance abuse, and homelessness and linking them to mobile services while reducing the need for police intervention
 Concluded City-funded COVID-19 emergency rental assistance program, providing grants of up to $2,500 to 670 households
 Identified ARPA funding for a Shallow Rental Subsidy program to provide partial rent payments to households at risk of homelessness, reducing their household rent burden and increasing their available income

Of the 43 activities in the LHH plan, three are behind schedule for implementation due to staff capacity and funding limitations. Another three are ahead of schedule and one has been completed.

South Hayward Parish Winter Warming Shelter Update
Annually, the City allocates $25,000 in General Fund monies to First Presbyterian Church of Hayward for Winter Warming Shelter services. On July 13th, 2021, the City approved its federal stimulus expenditure plan and allocated $2 million in funding to expand winter warming shelter at South Hayward Parish into a year-round facility with day-time hours. As

2 July 13, 2021, City Council Meeting Agenda and Materials (Federal Expenditure Plan):
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028015&GUID=E0215022-6A47-486F-81C4- 9BFB2583AE10&Options=&Search=

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discussed above, expanding Winter Warming Shelter to a nightly shelter was identified as an activity within the LHH plan.

The expanded shelter opened in October 2021 and will be open on a nightly basis through winter of 2023. The shelter is open from 7pm until 7am and provides dinner and breakfast to guests. First Presbyterian receives funding from the County to provide flexible funding in the form of direct client support to assist clients in moving towards permanent housing. Since opening in October 2021, 229 individuals have received nightly shelter services.

The City received and appropriated its stimulus funding in two tranches. As such, the City executed an agreement with First Presbyterian Church of Hayward for $1,644,314 of the $2 million allocated stimulus funding to cover FY21-22 expenditures. There remains $355,686 in ARPA funding to extend the Winter Warming Shelter at South Hayward Parish.

Staff recommends that Council authorize the City Manager to amend the professional services Agreement with First Presbyterian Church of Hayward to increase the Winter Warming Shelter contract amount by $405,686 for a not-to-exceed amount of $2,050,000 through FY 2023 (Attachment V). A complete breakdown of the contract funding can be found in Table 1.

TABLE 1: FY21-23 WINTER WARMING SHELTER SERVICES CONTRACT FUNDING Original Agreement Amount
FY 2022 General Fund Allocation $25,000
FY 2022 ARPA Year 1 Allocation $1,619,314
Subtotal $1,644,314
Recommended Amendment
FY 2023 General Fund Allocation $25,000
FY 2023 ARPA Year 2 Allocation $380,686
Subtotal $405,686
Revised Total $2,050,000

Staff are working with South Hayward Parish and Alameda County to identify funding to continue the shelter as a nightly service once the City’s ARPA allocation is expended in full.

Hayward Navigation Center and Hayward Navigation Center Hotel Annex Update On January 22, 2019, the City Council approved emergency actions to implement a Hayward Housing Navigation Center.3 The Hayward Navigation Center (HNC) opened less than a year later in November 2019. Four months after opening, in March 2020, Alameda County and the State of California issued mandatory stay-at-home orders and recommended social distancing in response to the COVID-19 pandemic. In accordance with County public health guidelines,

3 January 22nd, 2019 City Council Meeting Agenda and Materials, https://hayward.legistar.com/LegislationDetail.aspx?ID=3838800&GUID=89EC3945-8050-428A-881C- 6180A91CBA9A&Options=&Search=

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the Navigation Center capacity was dramatically reduced from 45 beds to 22 beds to accommodate social distancing requirements.

In response to capacity restrictions at the HNC and to provide isolation shelter to those with increased vulnerabilities, Council authorized opening a non-congregate Navigation Center out of a local hotel for a six-month pilot period.4 Approved in December 2020, the Hayward Navigation Center Hotel Annex (Annex) opened in February 2021. Using a portion of the City’s federal ARPA funding, the Annex was extended to operate through January 2023.

In addition to opening the Annex, in June 2021, the City purchased a third residential dormitory unit to safely increase the capacity at the HNC. As of April 2022, Alameda County has lifted its social distancing requirements in congregate settings. As such, the current capacity at the HNC is 15 beds per residential dormitory for a total capacity of 45 beds.

Pending current surges and trends in COVID-19 transmission, by July 1, 2022, the HNC will have a total capacity of 20 beds per residential dormitory for a total capacity of 60 beds.

Despite the many unknowns and challenges in the nascency of these programs, collectively the HNC and the Annex have served and exited a total of 306 individuals experiencing homelessness. Of these 306 exits, the majority (n=207 or 68%) have been exited to permanent housing. Additional demographic and exit data can be found in Attachment VI.

Hayward Navigation Center FY 2023 Agreement for Services BACS has been operating the Hayward Navigation Center since November 2019 and was selected through a competitive process.5 Staff recommends that Council authorize the City Manager to negotiate and execute an agreement with BACS for FY 2023 Hayward Navigation Center operations for an amount not-to-exceed $2.465 million (Attachment VII). As authorized by Council through the City’s annual FY 2023 budget, Council has allocated $1,127,260 in General Fund monies for the FY 2023 Hayward Navigation Center operations.

Staff have identified Hayward Navigation Center contract savings due to decompression at the Navigation Center and recommend allocating a portion of these contract savings to the FY2023 Hayward Navigation Center agreement.

Outlined below in Table 2 are the sources of funding for BACS’ FY 2023 agreement.

Table 2: FY22-23 HAYWARD NAVIGATION CENTER CONTRACT FUNDING Source Amount
FY2023 General Fund Allocation $1,127,260
Permanent Local Housing Allocation $1,303,470
Contract Savings (General Funds) $34,874

4 December 8th, 2020 City Council Meeting Agenda and Materials, https://hayward.legistar.com/LegislationDetail.aspx?ID=4711813&GUID=0A99378E-4B2D-4ED2-A971- 1C744D5D3E4D&Options=&Search=
5 July 13th, 2021 City Council Meeting Agenda and Materials, https://hayward.legistar.com/LegislationDetail.aspx?ID=5028017&GUID=2E0ED151-4A35-4637-A60D- 2C0205B396F7&Options=&Search=

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Total $2,465,604

Additionally, the City anticipates receiving Homeless Housing, Assistance and Prevention Round 3 (HHAP-3) made available through the County of Alameda. Once HHAP-3 is made available to the City, staff will return to Council to authorize and appropriate the funds accordingly.

Hayward Navigation Center Hotel Annex FY 2023 Agreement for Services On July 13, 2021, Council authorized allocation of up to $3 million to extend the Annex program.6 Using this funding, the City allocated $1,466,450 to Vagabond Inn DBA Paar Hospitality for hotel services from August 23, 2021 through January 31, 2023. Additionally, under this authorization, the City allocated $1,209,380 to BACS for FY 2022 Annex operations.

Under this authorization, there remains $324,170 in ARPA funding to extend the Hayward Navigation Center Hotel Annex program. Staff have identified Hayward Navigation Center contract savings due to decompression at the Navigation Center and recommends allocating a portion of these contract savings to the FY2023 Annex agreement.

Staff recommends that Council authorize the City Manager to amend the professional services agreement with BACS to increase the Annex operations contract by $628,975 for a not-to- exceed amount of $1,838,365 and extend services through January 31, 2023 (Attachment VII).

A complete breakdown of the contract funding can be found in Table 3.

TABLE 3: FY21-23 ANNEX CONTRACT FUNDING
Original Agreement Amount
ARPA $1,209,380
Subtotal $1,209,380
Recommended Amendment
Available and Allocated ARPA Funds $324,170
Contract Savings (General Funds) $304,815
Subtotal $628,985
Recommended Amendment
Revised Total $1,838,365

ECONOMIC IMPACT

There is a positive economic impact from reducing homelessness and poverty and moving individuals into permanent housing as part of the Hayward Navigation Center operations.

FISCAL IMPACT

6 July 13, 2021 Meeting of the Hayward City Council:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028015&GUID=E0215022-6A47-486F-81C4- 9BFB2583AE10&Options=&Search=

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This item has no associated fiscal impact. All funds associated with the referenced agreements have been previously appropriated.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Preserve, Protect, and Produce Housing, under
 Project H1: Sustain the Navigation Center to House and Support People Experiencing Homelessness
 Project H2: Implement the Homelessness Reduction Strategic Plan

PUBLIC CONTACT

This item is related to the Let’s House Hayward (LHH) Strategic Plan, under Strategy 2.1, to Expand Housing-Focused Shelter Capacity through continued oversight and management of the Hayward Navigation Center. Through the LHH process, Homebase, City staff, and partners throughout the Hayward community have worked together to engage a diverse set of stakeholders to inform the plan and strategy for Hayward moving forward.7

NEXT STEPS

Prepared by: Jessica Lobedan, Management Analyst II
Amy Cole-Bloom, Management Analyst II

Approved by: Monica Davis, Community Services Manager
Dustin Claussen, Acting Assistant City Manager

Recommended by:

____________________________________
Kelly McAdoo, City Manager

7 For more information on the Let’s House Hayward! Strategic Plan process, please visit https://www.haywardca.gov/lets-house-hayward

Alameda County Executive Summary
2022 HOMELESS POINT-IN-TIME COUNT & SURVEY
In the early morning hours of February 23, over 500 staff of outreach and other nonprofit programs, individuals with current or recent experience of homelessness, city and county employees, and community volunteers participated in an effort to count people experiencing homelessness in Alameda County the night of February 22, 2022. The Homelessness Response System relies on this biennial count and survey of those experiencing homelessness to gain a better understanding about the prevalence of and the circumstances surrounding homelessness in Alameda County and its cities. This data is foundational to investing in housing and programs to the scale necessary to reduce homelessness and evaluating the impact of efforts to date. The voices of people experiencing homelessness gathered through this count and survey are used to inform enhancements and improvements to services and the pathways to housing and are an important look at the health, needs, history, and background of our residents experiencing homelessness in Alameda County.

The methodology for this Point In Time Count and Survey is multi-faceted, compliant with federal requirements, and consistent with the core methodology used in 2017 and 2019, with some areas of enhancement in population-specific outreach in 2022. Data on this dashboard is derived from multiple sources as noted in the Info button to the left of the Executive Summary tab. The complete report of the 2022 Homeless Point In Time Count and Survey will contain a more comprehensive discussion of Alameda County’s PIT Count and Survey methodology.

Executive Summary Survey Topics County HDX Charts City HDX Charts Print HDX 9,747
persons experiencing
homelessness in 2022
8,308
households experiencing
homelessness in 2022
Individuals Experiencing Homelessness in the County
Sheltered Unsheltered
2017 2019 2022
1,766
1,710
2,612
3,863
6,312
7,135
5,629
8,022
9,747
Attachment II Alameda County 2022 PIT Count Executive Summary 1 ExecutiveSummary SurveyTopics CountyHDXCharts CityHDXCharts Print HDX Individuals Experiencing Homelessness in the County
Attachment II Alameda County 2022 PIT Count Executive Summary 2 ExecutiveSummary SurveyTopics CountyHDXCharts CityHDXCharts Print HDX Individuals Experiencing Homelessness in the County
Attachment II Alameda County 2022 PIT Count Executive Summary 3 Hayward
2022 Point In Time
Count
Unsheltered & Sheltered Report
Were observed as being
un
sheltered in Hayward
267 Indiv
iduals
Unsheltered Population by Location
4% of
unsheltered Individuals in Alameda County Live in Hayward Questions about the data in this report? Please contact [email protected] Page 1 of 2 Every 2 years, communities conduct comprehensive counts of people experiencing homelessness in order to measure the prevalence of hom
elessness in each local community. The 2022 Alameda County EveryOne Counts! Point-in- Time Count was a community-wide effort conducted on February 23, 2022. The Count had not been conducted since 2019 due to COVID 19. Results presented below are for those individuals that were enrolled in sheltered services in Hayward on the night of 2/22/22, or observed as part of the Count on the morning of 2/23/22. 313 372
267
84 115
114
Unsheltered Sheltered
2017 2019 2022
0 250
500
Were observed as being
unsh
eltered in Alameda County.
7,135 Indiv
iduals
Count of Unsheltered/Sheltered
Individuals for Hayward
Unsheltered Homelessness Data Summary
3,863
6,312 7,135
1,766
1,710
2,612
Unsheltered Sheltered
2017 2019 2022
0 5,000
10,000
Count of Unsheltered/Sheltered
Indiv
iduals for Alameda County
5,629
8,022
9,747487
397 381
Tent Car/Van RV Street/
Outside
Abandoned
Building
Hayward 2022 108 (40%) 36 (14%) 38 (14%) 83 (31%) 1 (1%) Hayward 2019 60 (16%) 72 (19%) 113 (30%) 124 (33%) 3 (1%) Alameda County 2022 2216 (31%) 2318 (32%) 1600 (22%) 958 (13%) 43 (1%) Alameda County 2019 2172 (34%) 1431 (23%) 1386 (22%) 1239 (20%) 84 (1%) Attachment III Hayward 2022 PIT Data
Hayward
Un
sheltered & Sheltered Report
44% 37%
4%
10%
4% 3%
31%
10%
30%
10%

0.8% 2%
28%
40%
11%
49%
5% 1%
1%
32%
22%
Hayward Sheltered Homeless 2022 Hayward Population 2021 Alameda County Population 2021 Black/African
A
merican
White Multiple Races American
Indian/Alaska
Native
Native
Hawaiian/Pacic
Islander
Asian Latinx/Hispanic
0 50
25 Were Enrolled in S heltered
Services in Hayward
114 In
dividuals
Were Enrolled in Sheltered
Services in Alameda County.
2,612 In
dividuals
4% of s heltered individuals in Alameda County Live in Hayward % of Sheltered Individuals by Race/Ethnicity*

51.8 %48.2 %

0.0 %

0.0 %
Male Female Transgender
No Single Gender
Gender Identity

21.9 %

3.5 %

74.6 %
<18 18-24 25+
Age

24% Mental Health Issue

8% Substance Use Issue

1% HIV/AIDS

Emergency Shelter
100%
Transitional Housing
0%
Safe Haven
0%
7% Veterans
40% Chronically Homeless

Type of Shelter Accessed:

Questions about the data in this report? Please contact [email protected] Page 2 of 2 11% Fleeing Domestic &
Dating Violence

Characteristics of

Sheltered Clients**
* Population data from 2021 Census Population Estimates. **Individuals can be in more than one category. Definition of chronic homelessness, according to HUD, is an individual that has a disabling condition and has had 4 episodes of homelessness in the last 3 years OR has been continuously homeless for 1 year or more.

Sheltered Homelessness Data Summary
Attachment III Hayward 2022 PIT Data
Attachment IV Let’s House Hayward! Plan Update

Page 1 of 4 ends

Addendum 1 of the Let’s House Hayward! Strategic Plan provides a detailed implementation summary table, which captures estimated staff time and contract expenses as well as the targeted timeline for each activity in the plan. Table 1 provides an update on the implementation status of each activity. Information in the “Year 1 Phase” column is from Addendum 1. It is the planned status of each activity for Fiscal Year 2021-2022. Information in the “Status” column provides an update on the status of that activity implementation:
 On track – this activity is being implemented as planned for FY22  Not on track – this activity is behind its intended schedule for FY22  Ahead of schedule – this activity is further along in its intended implementation schedule for FY22  Completed – this activity finished implementation in FY22 Additionally, activities funded through the City’s American Rescue Plan Act (ARPA) allocation are identified in the table below with an asterisk (*).

Table 1. Let’s House Hayward! Strategic Plan Implementation Update Strategy Year 1 Phase Status
Strategy 1.1: Formalize Interdepartmental and Interjurisdictional Partnerships

1.1a Continue to leverage the City’s cross-departmental collaboration around encampment response.

Begin
implementation
On track

1.1b
Provide quarterly updates on Let’s House Hayward! Strategic Plan progress, including updates from City coordination groups and solicit ongoing feedback and collaboration with non-profit homeless service providers and people with lived experience, including peer to peer networking opportunities.

Begin
implementation
On track

1.1c
Utilize the Homelessness Response meeting to coordinate implementation and evaluation of the Strategic Plan across City departments, including advising on feasibility of projects.

Begin
implementation
On track

1.1d
Formalize partnership between the City Manager’s Office and Hayward Unified School District to strengthen resources for unhoused school-aged children and their families.

Not active On track

1.1e
Formalize partnership between the City Manager’s Office and local community colleges including California State University (CSU) East Bay and Chabot College to address youth homelessness.

Not active On track
Strategy 1.2: Develop Funding and Evaluation Strategy Reflecting Community Priorities Identified in this Strategic Plan

1.2a
Conduct further research on different revenue options, including state and federal funding and private philanthropy and apply for funding that aligns with Strategic Plan action steps.

Research/Planning On track
Attachment IV Let’s House Hayward! Plan Update

Page 2 of 4 ends

Hayward City CouncilJune 28, 2022

Hayward City Council
June 28, 2022