STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Update on the City of Hercules Community Development Department RECOMMENDED ACTION:
Receive an update on the City of Hercules Community Development Department.
BACKGROUND:
The Community Development Department (CDD) oversees the maintenance and growth of the City in order to preserve its character, enhance its economy, and embrace diversity by encouraging the development of a range of housing options that meet the community and region’s needs. The department is responsible for processing development applications in accordance with the City’s adopted General Plan, zoning ordinance and construction codes. They provide staff support to the City Council and Planning Commission as well as advisory services to the public interested in learning about zoning, land use, use permits, and development standards. The Community Development Department is also responsible for fostering the City’s economic development, including developing and implementing business assistance grants and incentives and pursuing public-private partnerships for special projects such as electric vehicle charging stations.
As the primary point of contact for development services applicants, Community Development staff calculates and collects transportation impact and other development impact fees. The department also administers the City’s on-call consultant solicitations for engineering as well as planning services. The 2023 on-call list for planning and engineering services is being prepared and will be brought to the Council in June for authorization.
The CDD consists of 2 (soon to be 3) full-time staff employees and three part-time contract staff, who together staff the Planning, Building, Code Enforcement and Economic Development divisions. Figures 1 and 2 show the 2022 and 2023 organizational charts for the department.
Fig. 1. Community Development Department organizational chart (2022) Fig. 2. Community Development Department organizational chart (2023) Planning
The Planning division consists of the Director and a contract Associate planner who works two days per week. Wireless applications and lease negotiations are handled by a contract planner who specializes in wireless telecommunications and reports to the Director. The new Senior Planner position authorized in February 2023 will oversee the Planning division and report to the Director.
In the past year, division staff issued 58 Planning permits, each of which required a notification mailing and/or newspaper notice prepared by Community Development staff. As the point of customer contact for the Development Services core service area, Community Development coordinates the review of all Planning applications by Public Works, Police, and other City departments, as well as with outside agencies such as the Rodeo-Hercules Fire Protection District.
Common types of Planning permits include administrative use permits, administrative design review permits, and temporary use permits for special events. Major Planning approvals in the past year included the Skelly (Owl Ranch) residential subdivision project approved in September 2022. Lot Line adjustments were also approved as part of the implementation of the approved Sycamore Canyon, Franklin Canyon RV resort, and America’s Tire projects.
Planning staff prepares the agenda materials for the bi-monthly Planning Commission meetings and as needed for Council meetings, including ordinance amendments, Council approvals, and appeals and call-ups of items approved by the Director or Planning Commission. In the past year, staff has prepared, and the Council has approved, ordinance amendments needed to bring the City’s Municipal Code in line with state law regarding child care and supportive housing, Accessory Dwelling Units, and SB 9 urban lot splits and two-unit developments, as well as to adopt the 2022 Building, Electrical and Fire Codes.
The Planning division is responsible for maintaining and updating the City’s long-range plans and preparing the required reports to the state. In March 2023, the Council approved the 2022 Annual Housing Element Progress Report, which defines how many new residential units were constructed in the reporting period, broken down by income levels, and then compares this information to the regional housing needs allocation (RHNA) assigned to the City for the entire Housing Element period (2015–2023). The report also looks at the City’s housing policies and reports on the progress in achieving those goals. In 2023, the division also prepared the City’s first General Plan Annual Progress Report, which is required under state law. The report inventoried the state of the various elements of the General Plan, including some that have not been updated in decades.
Upcoming long-range planning work program items include updating the City’s Local Hazard Mitigation Plan (LHMP), a component of the General Plan Safety Element, by participating in the countywide LHMP update; and preparation of the City’s first Climate Action Plan by 2026, as called for in the LHMP. In the longer term, after the new staff are brought on board, a comprehensive update of the General Plan is recommended to bring the older elements in line with current conditions and forecasts and to reflect the conclusions and priorities of the Parks and Recreation Facilities Master Plan anticipated to be adopted in the fall of 2023. Funding for a comprehensive update is available from the General Plan Update Fee collected on development permit applications.
Due to the small size of City staff, the Planning division also supports the Public Works Department by preparing the required annual reports for the County’s Growth Management program (Measure J) and assisting with review of transportation projects affecting Hercules through the West Contra Costa County Transportation Advisory Committee Technical Advisory Committee (WCCTAC-TAC). The Director participates in the regular meetings of the Contra Costa Planning Directors and the Countywide Transportation Electrification Coordination Group. The Director also co-manages or supports special interdepartmental projects such as the Parks and Recreation Facilities Master Plan and The Hub.
Accomplishments in the past year include concluding negotiations with Ledcor on the Waterfront parking agreement and a successful Transit and Intercity Rail Program (TIRCP) grant for The Hub in partnership with Capitol Corridor.
Building
The Building division consists of the Community Development Specialist, who staffs the counter, takes in Planning and Building permit applications, reviews Building plan submittals, and works in conjunction with permitting, specialized plan review and inspection staff in the Contra Costa County Department of Conservation and Development to provide building permitting and inspection services. Each year the division issues approximately 1,000 building permits in coordination with the County. Common project types include solar panels, window and furnace replacements, interior remodels, and additions. The CD Specialist also works with the Finance department to handle the department’s invoice processing and deposit account reconciliation.
Code Enforcement
The Code Enforcement division consists of a contract Code Enforcement Officer (CEO) who reports to the Director and works two days per week. The CEO follows up on service requests from residents entered in Hercules Connect and proactively identifies and follows up on code violations as well. In the past year, 801 code enforcement cases were opened and 695 were closed. Common topics include junk and debris on private property, inoperable vehicles, fences and hedges, and unpermitted construction. In the past year, the CEO has identified and ensured the removal of a substandard, unpermitted living space (an illegal garage conversion without adequate ventilation or fire separation), which posed immediate dangers to human life and health. The goal is always voluntary compliance, but in cases of non-cooperation, citations and fines may be imposed. The department contracts with a vendor that provides citation processing and hearing officer services when citations are appealed. While many residents and business owners cooperate voluntarily with courtesy notices and information postings from the CEO, some of the most complex code cases, such as hoarder properties, may require dozens of CEO contacts and follow-up visits before the case can be closed.
Economic Development
The Economic Development division consists of the Director, who administers the City’s “Shop Local” Yiftee gift card program and other economic development initiatives, such as proposed grant programs to attract restaurants and encourage use of local caterers. The Director manages the economic consultant and works to develop new business attraction and retention programs under the City Manager’s direction. In this capacity, the CD Director meets regularly with the Bayfront Chamber of Commerce, local commercial real estate brokers, and existing and potential business owners. The Director participates in the East Bay Economic Development Alliance’s Economic Development Directors Council, the Northern Waterfront Initiative, monthly meetings with Bayfront Chamber of Commerce staff, and annual Business Roundtable events.
ANALYSIS:
In 2022, the City engaged Baker Tilly (formerly Management Partners) to conduct an organizational and staffing assessment of the Community Development Department. In addition to reviewing the staffing and management structure, the consultants examined the effectiveness of contract planners, available informational materials, turnaround times, customer perceptions, and staff suggestions to identify opportunities for improving community development services. They conducted numerous interviews that included city staff, contractors, and elected officials to gather input.
The team also conducted a high-level comparison of the department with community development departments in four similar cities, comparable in population size and permit volume: Pinole, Moraga, El Cerrito, and Orinda. Baker Tilly’s research revealed that the Hercules Community Development Department has a lean staff compared with its peers. Staffing levels and the Department’s organizational structure have remained unchanged since being reduced by 40% a decade ago due to financial hardship.
Baker Tilly recommended adding two new positions to the department; a senior planner to oversee counter and consultants, current and long-range planning and business systems implementation, and a flexibly staffed assistant/associate planner to focus on transportation planning, special projects, economic development, and current planning support. They also suggest adding hours to the existing contract for code enforcement if needed to catch up on the workload backlog. Staff is working to implement these recommendations over the coming years.
The full list of recommendations from the study is as follows:
Recommendation 1. Develop and maintain handouts to explain to the public how the community development process works for the most often requested permits.
Recommendation 2. Develop handouts that explain important code enforcement rules and regulations.
Recommendation 3. Provide regular updates to the City Council on administrative permits issued.
Recommendation 4. Hire a Senior Planner to be responsible for all current planning operations, oversight of contract planners, oversight of the front counter operation and implementation of new business systems.
Recommendation 5. Hire a full-time Associate Planner, allocating 50% of their time to economic development, and 50% of their time to current planning activities.
Recommendation 6. Add more hours to the Code Enforcement contract to catch up on the backlog.
Recommendation 7. Convene weekly meetings with all departments and agencies involved in the development review process to coordinate comments and provide a consolidated list of requirements for applicants.
Recommendation 8. Update the City’s website to clearly identify those permits which require approval by Contra Costa County and link directly to the County site.
Recommendation 9. Develop a tracking system for permit expiration dates.
Recommendation 10. Implement an online Land Management System for all Community Development Records.
Recommendation 11. Update the City’s forms so that applicants can fill out the form and submit it to the Department online.
Recommendation 12. Conduct a fee study and update the fee schedule for development-related services to reduce or eliminate any subsidies of such services.
Recommendation 13. Utilize the new OpenGov software to more effectively track City expenditures on development applications and better manage developer deposits and required reimbursements.
Recommendation 14. Update the purchasing policy to allow for multi-year contracts with vendors to provide consistent contractor support to the Department.
The next several years will present a unique opportunity for organizational change. A key member of the CDD workforce, who has been with the City for decades, could retire in the next 5 years. Evolving state laws and reporting requirements, as well as new state mandates for fair housing programs, ordinance changes, and permit streamlining, are driving changes in priorities and the associated need to reallocate resources.
The changes needed for CDD to be successful in the future are already underway. The Council’s approval of the Senior Planner position in 2023 will help improve customer service, provide more continuity of counter services, and enable succession planning for the department. Recruitment is underway for this position.
However, much remains to be done. Succession planning, staffing levels, and potential changes to the CDD organizational structure will all need to be carefully evaluated, planned, and then implemented to meet the demands of the future. Fortunately, the City’s financial position has been steadily improving and staff remains optimistic about the future of the Department.
FISCAL IMPACT:
There is no fiscal impact associated with receiving this report.
ATTACHMENTS:
Presentation