Hollister City Council
August 21, 2023

Packet Pg. 140

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EXHIBIT A
Cost Estimate (Fiscal Year 2022-23):

Cost Item
Annual Maintenance Costs:

Contingency (3%)
Annual Administrative Costs:

Total Annual Costs
Number of Units
Annual Costs
$270,551.20
$8,000.00
S750.00
$280,051.20
198
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A.4.a

EXHIBIT B
City of Hollister
Community Facilities District No. 4
Rate and Method of Apportionment of Special Tax
A special tax applicable to each Assessor's Parcel in the City of Hollister Community Facilities District No. 4 herein "CFD No. 4" shall be levied and collected according to the tax liability determined by the Administrator through the application of the appropriate amount or rate for Taxable Property as described below. All of the property in CFO No. 4, unless exempted by law or by the provisions of Section E. below, shall be taxed for the purposes, to the extent and in the manner herein provided; including property subsequently annexed to the CFD No. 4 a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Accessory Unit" means a second residential unit of limited size e.g. granny cottage second unit that shares a Parcel with a single-family detached unit. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map or other recorded County parcel map. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, set forth in Chapter 2.5 of division 2 of title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the formation and administration of CFD No. 4 including but not limited to the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes; the costs to the City or CFD or any designee thereof of complying with CFD or obligated persons disclosure requirements associated with the Act, the costs associated with preparing Special Tax disclosure statements; the costs associated with responding to public inquiries, protests or appeals regarding the Special Taxes; the costs of the City annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD for any other administrative purposes of the CFD including attorney's fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes.
"Administrator" means an official of the City, firm designated by the City, or any designee thereof responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax.

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"Affordable Housing" means housing as defined in Section 16.64.025 of the City municipal code (or as amended).
"Assessor" means the County assessor.
"Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the County Assessor designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" or "APN" means a unique number assigned to an Assessor's Parcel by the Assessor for purposes of identifying a property. "Authorized Services" means the public services authorized to be funded by the CFD as set forth in the documents adopted by the Council when the CFD was formed. "Building Permit" means a single permit or set of permits required to construct an entire residential or non-residential structure.
"CFD" or "CFD No. 4" means the City of Hollister Community Facilities District No. 4. "CFD Formation" means the date on which the Resolution of Formation to form CFD No. 4 was adopted by the City Council.
"City" means the City of Hollister.
"Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Items" in the San Francisco, Oakland, San Jose Area Urban Wage Earners and Clerical Workers, measured each calendar year. If this index ceases to be published, the Consumer Price Index will be another index as determined by the CFD Administrator or City that is reasonably comparable to the Consumer Price Index for the San Francisco Bay Area.
"Council" means the City Council of the City acting as the legislative body of CFO No. 4. "County" means the County of San Benito.
"County Recorder" means the County of San Benito's Office of the Recorder. "Developed Property" means in any Fiscal Year all Parcels of Taxable Property for which Building Permits have been issued on or prior to June 1 of the preceding Fiscal Year. "Final Subdivision Map" or "Final Map" means a recorded subdivision map or recorded parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410, Packet Pg. 143

A.4.a
et seq.).
"Fiscal Year" means the period starting on July 1 and ending on the following June 30. "Homeowners Association Property" or "HOA Property" means a property within the boundaries of the CFD that is owned by, or irrevocable dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub -association.
"Land Use Categories" means Single -Family Detached Property, Multi -Family Property, and Non -Residential Property.
"Maximum Special Tax" means the maximum Special Tax determined in accordance with Section C. that can be levied in any Fiscal Year.
"Multi -Family Property" means in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a residential structure consisting of two or more Residential Units that share a common wall.
"Non -Residential Property" means in any Fiscal Year, all Parcels of Developed Property which are not Single -Family Detached Property or Multi -Family Property. Notwithstanding the foregoing, if a Building Permit is issued for a structure that will include both Residential Units and non-residential uses, the Administrator shall delineate the Land Use Categories on the Parcel in order to calculate Special Taxes pursuant to Section C. below. "Proportionately" means for Developed Property that the ratio of the actual annual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels of Developed Property.

For Undeveloped Property Proportionately means that the ratio of the actual annual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means for each Fiscal Year (i) any property within the boundaries of the CFD that is owned by or irrevocably offered for dedication to the federal government , the State of California, the City or any other public agency provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act, (as such section may be amended or replaced), shall be taxed and classified in accordance with its use or (ii) any property within the boundaries of the CFD that is encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
"Residential Property" or "Residential Unit" means (i) Single -Family Detached Property and (ii) Multi -Family Property. An Accessory Unit that shares a Parcel with a single-family detached unit shall not be considered a Residential Unit for purposes of this RMA.

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"RMA" means this Rate and Method of Apportionment of Special Tax. "Single -Family Detached Property" means in any Fiscal Year, all Parcels of Developed Property for which a Building Permit(s) was issued for construction of a Residential Unit that does not share a common wall with another Residential Unit. "Special Tax" means any tax levied within the CFD to pay the Special Tax Requirement. "Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for the following (i) Authorized Services, (ii) Administrative Expenses and (iii) if the Special Tax is not collected and apportioned under the Teeter Plan, amounts needed to cure any delinquencies in the payment of Special Taxes which have occurred or based on delinquency rates in prior years which may be expected to occur in the Fiscal Year in which the Special Tax will be collected, (iv) less a credit for the amount of the prior's years tax delinquencies plus penalties and interest collected and apportioned to the City for the Special Tax.
"Taxable Property" means all Assessors' Parcels within the boundaries of CFD No. 4 that are not exempt from the Special Tax pursuant to law or Section E. below. 'Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this RMA. All of the property within CFD No. 4 at the time of CFD Formation is within Tax Zone 1. Additional Tax Zones may be created when property is annexed to the CFD and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor's Parcels included within a new Tax Zone established when such Parcels are annexed to the CFD shall be identified by Assessor's Parcel Number in the Unanimous Approval Form that is signed by the owners of the Parcels at the time of annexation.
"Teeter Plan" means the alternative procedure for the distribution of property tax levies on the secured roll made by the County pursuant to Revenue and Taxation Code Sections 4701-4717. "Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or Parcels annexed into the CFD that constitutes the property owner's approval and unanimous vote in favor of annexing into the CFD and the levy of the Special Tax against his/her Parcel or Parcels pursuant to this RMA.
"'Undeveloped Property" means in any Fiscal Year all Parcels of Taxable Property in CFD No. 4 that are not Developed Property.

B. ADMINISTRATION OF ANNUAL TAX LEVY
Each Fiscal Year, the Administrator shall identify the current Assessor's Parcel Numbers for all Parcels of Taxable Property within the CFD. The Administrator shall also determine: (i) whether each Assessor's Parcel of Taxable Property is Developed Property or Undeveloped Property, (ii) which Tax Zone each Assessor's Parcel is located in, and (iii) the Special Tax Packet Pg. 145

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Requirement for the then -current Fiscal Year. In any Fiscal Year if it is determined that: (i) a Final Map or parcel map for a portion of property in CFD No. 4 was recorded after the last date upon which the Assessor will incorporate the newly -created parcels into the then current tax roll, (ii) because of the date the Final Map or parcel map was recorded the Assessor does not yet recognize the new parcels created by the Final Map or parcel map, and (iii) one or more of the newly -created parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the Final Map or parcel map by determining the Special Tax that applies separately to each newly -created Parcel then applying the sum of the individual Special Taxes to the parcel that was subdivided by recordation of the Final Map or parcel map.

C. MAXIMUM SPECIAL TAX
See supplemental sheet.

D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAXES
Each Fiscal Year the Administrator shall determine the Special Tax Requirement for that Fiscal Year and levy the Special Tax on all Parcels of Taxable Property as follows:

Step 1: The Special Tax shall be levied proportionately on each Parcel of Developed Property up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied is equal to the Special Tax Requirement.

Step 2: If additional revenue is needed after Step I, the Special Tax shall be levied proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied when combined with the amount levied pursuant to Step 1 is equal to the Special Tax Requirement.

The Special Tax for the CFD shall be collected at the same time and in the same manner as ordinary ad valorem property taxes provided, however; that the City may (under the authority of Government Code Section 53340) collect Special Taxes at a different time or ina different manner if necessary to meet the financial obligations of the CFD, and the Special Tax shall be equally subject to foreclosure if delinquent.

E. EXEMPTIONS
Notwithstanding any other provision of this RMA no Special Tax shall be levied on Parcels of Public Property except as otherwise provided in the Act.

F. INTERPRETATION OF SPECIAL TAX FORMULA
The City reserves the right to make minor administrative and technical changes to these documents that do not materially affect the rate and method of apportioning Special Taxes.

In addition the interpretation and application of any section of this document shall be left to Packet Pg. 146

A.4.a
the City's discretion. Interpretations may be made by the City by resolution or ordinance of the Council for purposes of clarifying any vagueness or ambiguity in this RMA.

G. TERM OF THE SPECIAL TAX
The Special Tax shall be levied in perpetuity, as long as the Authorized Services are provided by the City, as necessary to pay the Special Tax Requirement.

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EXHIBIT C

CITY OF HOLLISTER
Community Facilities District No. 4
SUPPLEMENT NO. b2-.
(TAX ZONE 20)
TO

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
This Supplement No.52_ (Tax Zone 20) to the Rate and Method of Apportionment of Special Tax (this "Supplement") supplements the Rate and Method of Apportionment of Special Tax (the "Existing Rate and Method") for the "City of Hollister Community Facilities District No. 4") (the "CFD") as it applies to the property designated as Tax Zone No. 20 (the "Tax Zone") that is being annexed to the CFD for the purpose of financing the maintenance of public improvements as adopted in Resolution No. 2014-143 by the Council of the City of Hollister, which approved a Resolution of Formation to establish the City of Hollister Community Facilities District No. 4.

This Supplement supplements the Existing Rate and Method by adding new Sections C.1, C.2 and C.3 as described below. Sections C.1 -C.3 of the Existing Rate and Method shall not apply to the Tax Zone. Except as expressly set forth in this Supplement, all provisions of the Existing Rate and Method shall govern the Tax Zone.

Capitalized terms that are used but not defined in this Supplement have the meaning given them in the Existing Rate and Method.

C. MAXIMUM SPECIAL TAXES

1. Developed Property
The Maximum Special Tax for Fiscal Year 2021-22 for all Parcels of Developed Property within Tax Zone 20 shall be:

Residential Property
Single -Family Property
Multi -Family Property
Non -Residential Property
$1,360 per Unit
$1,088 per Unit
$7,212.00 per Acre

2. Undeveloped Property
The Maximum Special Tax for Fiscal Year 2021-22 for all Parcels of Undeveloped Property within Tax Zone 20 shall be: $7,212.00 per Acre.

3. Escalation of Maximum Special Tax
On July 1, 2022 and each July 1 thereafter the Maximum Special Tax for Developed Property and Undeveloped Property shall be increased by an amount equal to the percentage change in the Consumer Price Index. The maximum increase in any Fiscal Year may not exceed 4.0%.

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EXHIBIT D. Pr oposed B oundary of the West Fairview Phase 2 Subdivision 7 IQ

B OUNDARIES OF
COMMUNITY FACILITY DISTRICT N O.4

CITY OF HOLLISTER, C OUNTY OF SAN BENITO, STATE OF CALIFORNIA PREPARED BY THE CITY OF HOLLISTER PLANNING DEPART MENT, AUGUST 2023 ANNEX ATION NO .

SUBDIVISION/PROJECT
TRACT N O.
52 WEST FAIRVIEW PHASE 2
303

CITY CLERK'S STATEMENT
I HEREBY C ERTIFY THAT T HE WTIA N MA P S HO W NG PROPOSED BOUNDA RI ES OF HOLLISTER C OMMUNITY FACILITIES DISTRICT NO 5 CITY OF HOLLISTER,

C OUNTY OF SA N BENITO, STATE OF CALIF ORNIA WAS APP ROVED BY THE CITY COUNCIL OF TH E CITY OF HOLLI STER, AT A MEETIN G T/EROF, HELD ON THE DAY OF 2022 8Y ITS RESOLUTION NO
JENNIFER WO ODW ORTH. NMC, CITY CLERK

CITY ENGINEER'S STATEMENT

THIS DIAGRA M NOS PREPAR ED UND ER T HE DIRECTI ON OF THE CITY ENGINEER, AND REP RESENTS THE DISTRICT BO UNDARY AS FILE D ON THE H OLLISTER CITY CL ERK 'S O FFI CE.

GLEN MARCH , P.E.

CITY ENGINEER

COUNTY RECORDE RS STATE MENT
FILED THIS DAY OF . 2 022 AT THE HOUR OF O'CLOCK M. IN B OOR OF MAPS OF

ASSESSMENT ANC COMMUNITY FACILITIES DI ST RIC T AT PA GE IN THE OFFICE OF THE REC OR DER IN THE CO UNTY OF SAN BENITO, STATE OF CALIFO RNIA.

COUNTY RECO RDER. COUN TY OF SAN BENTT O

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A.5
SUBMITTED:

DEPARTMENT:

DEPARTMENT HEAD:

STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: AUGUST 21, 2023
August 7, 2023
Planning
Christine Hopper, Development
Services Director
TITLE OF ITEM: RESOLUTION NO. 2023-158, A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER APPROVING THE PROPOSED BOUNDARY OF THE WEST OF FAIRVIEW (TRACT 303) PHASE 2 SUBDIVISION FOR THE ANNEXATION OF TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 5 ANNEXATION NO. 21 (POLICE AND FIRE

SERVICES)
BRIEF DESCRIPTION: The City Council will consider including the West of Fairview (Tract 303) Phase 2 Subdivision into Community Facilities District No. 5 ("CFD No. 5") to fund public services necessary to maintain public infrastructure related to the project. Only property within the City boundaries may be added to CFD No. 5, and the West of Fairview (Tract 303) Phase 2 Subdivision is within the City.

RECOMMENDATION: Adopt a resolution approving the proposed boundary of the West of Fairview (Tract 303) Phase 2 Subdivision for the annexation of territory into CFD No. 5.

DEPARTMENT SUMMARY: In 2014, Section 53340 of the Mello -Roos Act (the "Act") was amended to allow parcels to be annexed into an existing Communities Facilities District with the unanimous approval of property owners in the impacted area. The change introduced an economical, streamlined and creative solution to providing public improvement maintenance services for development projects. The West of Fairview (Tract 303) Phase 2 Subdivision will be included in Community Facility District No. 5 under this streamlined process. This is the 52nd project to be annexed to CFD No. 5 since its creation in 2014.

The Tentative Map for the West of Fairview (Tract 303) Phase 2 Subdivision was approved by the planning commission with a condition of approval that the developer consents to include the project in the City's CFD No. 5. The final map that will be recorded for the project includes an owner's consent statement with regard to their participation with the CFD No. 5. The developer/owners have each executed a "Unanimous Approval" agreeing to this action.

FINANCIAL IMPACT: The property owners will pay all costs associated with including their project in CFD No. 5, and the special taxes collected by CFD No. 5 will pay for maintenance of the public facilities for the subdivision. Rates may vary by project as the actual cost of services for and services provided to each annexation area may be different. The maximum Special Tax for Fiscal Year 2023-24 for all Parcels of Developed Property in Tax Zone 20 shall be $1,470.98 per single family dwelling and $1,176.78 per multifamily dwelling. On July 1, 2024 and each July 1 thereafter, the maximum special tax for Developed Residential units shall be increased by the amount equal to the percentage change in the Consumer Price Index.

CEQA: This Annexation does not constitute a project under the California Environmental Quality Act (CEQA) and review under CEQA is not required.

ATTACHMENTS:

1. WOF Phase 2 CFD 5 Documents
Packet Pg. 151

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THIS REPORT WAS REVIEWED BY THE INTERIM CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
r
David Mirrione, Interim City Manager
Packet Pg. 152

A.5
RESOLUTION NO. 2023-158

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING THE PROPOSED BOUNDARY OF THE WEST OF FAIRVIEW (TRACT 303) PHASE 2

SUBDIVISION FOR THE ANNEXATION OF TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 5 ANNEXATION NO. 21 (POLICE AND FIRE SERVICES) WHEREAS, the City Council (the "Council") of the City of Hollister (the "City") has established the City of Hollister Community Facilities District No. 5 (Police and Fire Services) (the "District") pursuant to the California Government Code (the "Code") sections 53328 and 53340; and WHEREAS, the District will finance authorized services stated in the rate and method of apportionment of the special tax, which is on file with the City Clerk; and WHEREAS, the Council has provided for the annexation of future territory ("the Future Annexation Area") to the district pursuant to the terms and provisions of the Act; and WHEREAS, The City has received a consent and waiver from Peter Lezak of KB Home, South Bay, Inc., which constitutes a portion of the future annexation areas, for annexation into the District.

NOW, THEREFORE, the City Council of the City of Hollister, does hereby resolve as follows:

SECTION 1
The Council hereby determines to institute proceedings for the annexation of the West of Fairview (Tract 303) Phase 2 Subdivision into the district under the terms of the Act. The exterior boundaries of the area to be annexed are hereby specified and described to be as shown on that certain map now on file in the office of the City Clerk entitled "Proposed Boundary of the West of Fairview (Tract 303) Phase 2 Subdivision" to Community Facilities District No. 5 of the City of Hollister (Police and Fire Services) which map indicates by a boundary line the extent of the territory included in Annexation Boundary and shall govern for all details as to the extent of this project.

SECTION 2
The map showing the West of Fairview (Tract 303) Phase 2 Subdivision, which area is to be subject to a special tax to be levied, is hereby approved and adopted. On the original and one copy of the map of such Boundary Map on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City Clerk shall file the original of such map in her office and, within fifteen (15) days after the adoption of this resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of San Benito, State of California.

SECTION 3
Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax") sufficient to finance authorized services stated in the rate and method of apportionment of the Special Tax within the District. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the proposed West of Fairview (Tract 303) Phase 2 Subdivision. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in Exhibit "C" attached to the Unanimous Approval. The annexation of the West of Fairview (Tract 303) Phase 2 Subdivision will not result in any change to the special tax rates levied in the district prior to such annexation.

SECTION 4
Packet Pg. 153

A.5
Pursuant to the Act, no additional hearings or elections are required given the unanimous consent to the annexation by all property owners within the West of Fairview (Tract 303) Phase 2 Subdivision boundary.

SECTION 5
This Resolution shall take effect from and after the date of its passage and adoption.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hollister approving the proposed boundary of the West of Fairview (Tract 303) Phase 2 Subdivision for the annexation of Territory into Community Facilities District No. 5, Annexation No. 21.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 21st day of August, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk
APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
Mary F. Lerner, City Attorney
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A.5
I, JENNIFER WOODWORTH, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2023-158, is an original Resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on the 21st day of August, 2023, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Hollister this City Council day of August, 2023.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister
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A.5.a
Recorded By and Return To:

City Clerk's Office
City of Hollister
375 Fifth Street
Hollister, CA 95023
To Be Recorded Without Fee Per Government Code Section 27383

REQUESTING THE ANNEXATION OF PROPERTY INTO
COMMUNITY FACILITIES DISTRICT NO. 5
(WEST FAIRVIEW PHASE 2 TRACT 303) ANNEXATION NO. 22
ASSESSOR PARCEL NUMBER (057-710-010, 057-710-004, and 057-710- 009, Underlying APNs affect a portion, along with other property — new APNs have not yet been assigned)
Packet Pg. 156

A.5.a

UNANIMOUS APPROVAL
of Annexation to a Community Facilities District
and Related Matters

CITY OF HOLLISTER
Community Facilities District No. 5
stay , 2023
To the Honorable City Council,
City of Hollister
375 Fifth Street
Hollister, CA 95023
Members of the City Council:

This constitutes the Unanimous Approval (the "Unanimous Approval") of the record owner(s) (the "Property Owner") of the fee title to the real property identified below (the "Property") contemplated by Section 53339.3 et seq. of the Mello -Roos Community Facilities Act of 1982, as amended (the "Act") to annexation of the Property to the City of Hollister Community Facilities District No. 5 (the "CFD"), and it states as follows:

1. Property Owner. This Unanimous Approval is submitted by the Property Owner as the record owner(s) of fee title to the Property. The Property Owner has supplied to the City current evidence of its ownership of fee title to the Property.

2. Approval of Annexation. This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the annexation of the Property to the CFD.

The CFD was formed to finance the municipal services (the "Services") described in the Notice of Special Tax Lien recorded in the Office of the County Recorder of the County of San Benito, State of California on September 11, 2018 at the hour of 11:22 am as Document No. 2018- 0008292 ("CFD No. 5 Notice of Special Tax Lien").

3. Approval of Special Tax and the Services. This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the levy of special taxes (the "Special Taxes") on the Property to finance the Services, according to the Rate and Method of Apportionment of Special Taxes (the "Rate and Method") for the CFD attached hereto as Exhibit B and made a part hereof. Exhibit A includes the cost estimate for the services.

4. Waivers and Vote. The Property Owner hereby confirms that this Unanimous Approval constitutes its approval and unanimous vote as described herein and as contemplated by Section 53339.3 et seq. of the Act and Article XIIIA of the California Constitution. The Property Owner hereby waives all time limits, notices, and procedures that might otherwise be required in connection with the annexation of the Property to the CFD.

5. Recordation of Amendment to Notice of Special Tax Lien. The Property Owner hereby authorizes and directs the City Clerk to execute and cause to be recorded in the office of the County Recorder of the County of San Benito an amendment to the CFD No. 5 Notice of Special Tax Lien for the CFD as required by Section 3117.5 of the California Streets and Highways Code. The amendment to the CFD No. 5 Notice of Special Tax Lien shall include the Rate and Method as an exhibit thereto.

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6. Authority Warranted. The Property Owner warrants to the City that the presentation of this Unanimous Approval, any votes, consents or waivers contained herein, and other actions mandated by the City for the annexation of the Property to the CFD shall not constitute or be construed as events of default or delinquencies under any existing or proposed financing documents entered into or to be entered into by the Property Owner for the Property, including any "due -on -encumbrance" clauses under any existing security instruments secured by the Property.

7. Due Diligence and Disclosures. The Property Owner agrees to cooperate with the City and its attorneys and consultants and to provide all information and disclosures required by the City about the Special Taxes to purchasers of the Property or any part of it.

8. Agreements. The Property Owner further agrees to execute such additional or supplemental agreements as may be required by the City to provide for any of the actions and conditions described in this Unanimous Approval, including any cash deposit required to pay for the City's costs in annexing the Property to the CFD.

9. The Property. The Property is identified as follows:

Address:

APN:

LOTS 1 THROUGH 198, INCLUSIVE, AS SHOWN ON THE MAP
ENTITLED "TRACT 303 - PHASE 2 WEST OF FAIRVIEW" FILED
ON MAY 11, 2022, IN BOOK 17 OF MAPS, AT PAGE 26, SAN

BENITO COUNTY RECORDS, AND AS AMENDED BY THAT

CERTAIN CERTIFICATE OF CORRECTION RECORDED
OCTOBER 17, 2022, AS INSTRUMENT NO. 2022-0009382 OF

OFFICAL RECORDS
057-710-010-000, 057-710-004-000 and 057-710-009-000
(Underlying APN's affect a portion, along with other property - new APN's have not yet been assessed)
Acreage: 23.28

10. Voting. As there are less than twelve registered voters within the area designated for this annexation, votes are allocated on a per -acre basis. The votes for and against this annexation area as follows:

Total Acres: 23.28
Total Votes: 24
No. of Votes Yes: 24
No. of Votes No: 0
By executing this Unanimous Approval, the Property Owner agrees to all of the above.

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Annexation No. 21
Property Owner:

KB Home,, outh Bay, Inc_
By:

Name: Peter Lezak
Title: Vice President
Notice Address: 5000 Executive Parkway, Suite 125
San Ramon, CA 94583
(attach acknowledgment by notary)
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
"A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document."
STATE OF California
COUNTY OF Contra Costa
)SS
On May 9, 2023 , before me, Sara L. Robbins, Notary Public, personally appeared Peter Lezak , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
My Commission Expires: May 15, 2025
Notary Name: Sara L. Robbins
SARA L. ROBBINS
Notary Public - California
Contra Costa County
Commission # 2357772
My Comm. Expires May 15, 2025
z
This area for official notarial seal
Notary Phone: 925-983-4524
Notary Registration Number: 2357772 County of Principal Place of Business: Contra Costa

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EXHIBIT A
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Cost Estimate (Fiscal Year 2022-23):

The proposed maximum special tax for developed and undeveloped property which may be levied during Fiscal Year 2022-23 is:

Land Use Class
Description
Fiscal Year 2022/23
Maximum Special Tax per Unit
1 Residential Property
$882.24 per Unit
2 Multi -Family Property
$722.86 per Unit
No Tax for Undeveloped Property
No Tax for Tax -Exempt Property
Escalation of the Maximum Special Tax:

Each year, the amount to be charged to reach residential unit shall be established by taking the base amount and adjusting it by the change in the CPI for each subsequent year following the base year. The CPI shall be determined by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco -Oakland - San Jose from December 1, 2020, to the December 1 next preceding the Fiscal Year of Special Tax Levy.

In any year, the Special Tax shall not be deemed to have been increased within the meaning of the Ralph M. Brown Act (section 54954.6 of the California Government Code) or other relevant provisions of state law if the amount of the increase is not more than pro rata to the increase in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Prices Indexes, Pacific Cities and U.S. City Average, San Francisco -Oakland -San Jose from February to the February 1 next preceding the Fiscal Year of Special Tax Levy.

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Exhibit B
City of Hollister
COMMUNITY FACILITIES DISTRICT NO. 5
(Police & Fire Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each Assessor's Parcel in the City of Hollister Community Facilities District No. 5 (Police & Fire) shall be levied and collected according to the tax liability determined by the City or its designee, through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in the CFD, unless exempted by law or as defined below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to the CFD.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Accessory Unit" means a second residential unit of limited size (e.g. granny cottage, second unit) that shares a Parcel with one residential dwelling unit. "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel map, or if the land area is not shown on an Assessor's Parcel map, the land area shown on the applicable Final Map or other parcel map recorded with the County.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation and administration of the CFD including but not limited to the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes, the costs to the City or CFD or any designee thereof of complying with CFD or City disclosure requirements, the costs associated with responding to public inquiries, protests or appeals regarding the Special Taxes; the costs of the City annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD for any other administrative purpose of the CFD including attorney's fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes.

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"Administrator" means the person or firm designated by the City to administer the Special Taxes according to this RMA.
"Airspace Parcel" means a parcel with an assigned Assessor Parcel Number that constitutes vertical space of an underlying land Parcel "Assessor's Parcel" or "Parcel" means a lot or parcel, including an Airspace Parcel, shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the County assessor designating parcels by Assessor Parcel Number.
"Assessor's Parcel Number" or "APN" means a unique number assigned to an Assessor's Parcel by the assessor for purposes of identifying a property. "Authorized Services" means those public services authorized to be funded, in whole or in part, by the CFD as set forth in the documents adopted by the Council when the CFD was formed.
"Building Permit" means a single permit or set of permits required to construct an entire residential structure or mixed use structure. If a permit is for a foundation, parking, landscaping or other related facility or amenity, but a building permit has not yet been issued for the structure served by these facilities or amenities, such permit shall not be considered a "Building Permit" for purposes of application of the Special Tax. "CFD" or "CFD No. 5" means the City of Hollister Community Facilities District No. 5 (Police & Fire).
"City" means the City of Hollister.
"Consumer Price Index" means the Consumer Price Index published by the U.S.

Bureau of Labor Statistics for "AII Items" in the San Francisco -Oakland -San Jose Area Urban Wage Earners and Clerical Workers, measured each calendar year. If this index ceases to be published, the Consumer Price Index will be another index as determined by the CFD Administrator or City that is reasonably comparable to the Consumer Price Index for the San Francisco Bay Area.
"Council" means the City Council of the City of Hollister, acting as the legislative body of CFD No. 5.
"County" means the County of San Benito.

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"Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property, excluding Property Owners Association Property and Public Property, for which a Building Permit was issued prior to June 1 of the preceding Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the greatest amount of Special Tax that can be levied on an Assessor's Parcel in any Fiscal Year determined in accordance with Section C below.
"Multi -Family Property" means in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a residential structure consisting of two or more residential units that share a common wall. "Non -Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a non-residential use and does not contain any residential units as defined under Residential Property or Multi -Family Property. "Property Owners Association Property" means any property within the boundaries of the CFD that is owned in fee or irrevocably dedicated as indicated in an instrument recorded with the County to, a property owners association, including any master or sub -association.
"Proportionately" means, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels within each Land Use Class.
"Public Property" means any property within the boundaries of the CFD that is owned by or irrevocably offered for dedication to the federal government, State of California, County, City, or other local governments or public agencies. "RMA" means this Rate and Method of Apportionment of Special Tax. "Residential Property" means all Assessor's Parcel of Developer Property for which a building permit has been issued for purposes of constructing one residential dwelling unit.
"Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
"Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts Packet Pg. 165

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needed to cure any delinquencies in the payment of Special Taxes which have occurred or (based on delinquency rates in prior years) may be expected to occur in the Fiscal Year in which the tax will be collected; less any surplus of funds available from the previous Fiscal Years Special Tax levy, as determined by the City. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD which are not exempt from the Special Taxes pursuant to law or as defined herein. "Tax -Exempt Property" means all Assessor's Parcels not subject to the Special Tax.

Tax -Exempt Property includes: (i) Public Property, (ii) Property Owners Association Property and (iii) Non -Residential Property.
"Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property not classified as Developed Property.
"Unit" means any separate residential dwelling unit in which a person or persons may live, which comprises an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use. An Accessory Unit that shares a Parcel with Residential Property shall not be considered a separate Unit for purposes of this RMA.

B. DATA FOR ADMINISTRATION OF SPECIAL TAXES
On or about July 1 of each Fiscal Year, the Administrator shall identify the current Assessor's Parcel Numbers for all Parcels of Taxable Property within the CFD. All Taxable Property within the CFD shall be classified as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1 and be subject to the Special Tax pursuant to Section C and Section D below.

In any Fiscal Year, if it is determined that: (i) a parcel map for property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly -created parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the assessor does not yet recognize the new parcels created by the parcel map, and (iii) a building permit was issued prior to June 1 of the prior Fiscal Year for development on one or more of the newly -created parcels, the Administrator shall calculate the Special Taxes separately for Developed Property and Undeveloped Property within the subdivided area, then levy the sum of these two amounts on the master Parcel that was subdivided by recordation of the parcel map.

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C. MAXIMUM SPECIAL TAXES

1. Developed Property
Table 1
Maximum Special Tax for Developed Property
CFD No. 5
Land Use Class
Description
Fiscal Year 2018/19
Maximum Special Tax per Unit
1 Residential Property
$
775.00
2 Multi -Family Property
$
635.00
** Beginning July 1, 2019 and each July 1 thereafter, the Maximum Special Taxes shown in Table 1 above shall be adjusted by applying the increase, if any, in the Consumer Price Index that has occurred from December of the prior Fiscal Year to December of the then -current Fiscal Year. Each annual adjustment of the Maximum Special Tax shall become effective on the subsequent July 1, without additional action by the City Council.

2. Undeveloped Property; Tax Exempt Property
No Special Tax shall be levied on Undeveloped Property or Tax Exempt Property.

D. METHOD OF LEVY OF THE SPECIAL TAXES
Commencing with Fiscal Year 2018/19, and for each following Fiscal Year, the City shall levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Developed Property Proportionately up to 100% of the applicable Maximum Special Tax.

E. MANNER OF COLLECTION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill, collect at a different time or in a different manner, and/or collect delinquent Special Taxes through foreclosure or other available methods.

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G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity, as long as the Authorized Services are provided by the City, as necessary to pay the Special Tax Requirement.

H. INTERPRETATION OF SPECIAL TAX FORMULA
The City may interpret, clarify, and revise this RMA to correct any inconsistency, vagueness, or ambiguity, by resolution and/or ordinance, that does not create a material adverse effect on the levy and collection of the Special Taxes.

Packet Pg. 168

EXHIBIT C. Proposed Boundar of the West Fairview Phase 2 Subdivision

BOUNDARIES OF
COMMUNITY FACILITY DISTRICT NO. 5

CITY OF HOLLISTER, COUNTY OF SAN BENITO, STATE OF CALIFORNIA PREPARED BY THE CITY OF HOLLISTER PLANNING DEPARTMENT, AUGUST 2023 ANNEXATION NO.

SUBDIVISION/PROJECT
TRACT NO.
21 WEST FAIRVIEW PHASE 2
303

CITY CLERK'S STATEMENT
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF HOLLISTER COMMUNITY FACILITIES DISTRICT NO.5 CITY OF HOLLISTER,

COUNTY OF SAN BENITO, STATE OF CALIFORNIA WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF HOLLISTER, AT A MEETING THEROF, HELD ON THE DAY OF 2022 BY ITS RESOLUTION NO

JENNIFER WOODWORTH, MMC, CITY CLERK

CITY ENGINEER'S STATEMENT
THIS DIAGRAM WAS PREPARED UNDER THE DIRECTION OF THE CITY ENGINEER, AND REPRESENTS THE DISTRICT BOUNDARY AS FILED ON . IN THE HOLLISTER CITY CLERK'S OFFICE.

GLEN MARCH, P.E.

CITY ENGINEER

COUNTY RECORDER'S STATEMENT
FILED THIS DAY OF , 2022 AT THE HOUR OF O'CLOCK M., IN BOOK OF MAPS OF

ASSESSMENT AND COMMUNITY FACILITIES DISTRICT AT PAGE IN THE OFFICE OF THE RECORDER IN THE COUNTY OF SAN BENITO, STATE OF CALIFORNIA.

COUNTY RECORDER, COUNTY OF SAN BENITO
Packet Pg. 169

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SUBMITTED:

DEPARTMENT:

DEPARTMENT HEAD:

STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: AUGUST 21, 2023
August 10, 2023
Development Services
Christine Hopper, Development
Services Director
TITLE OF ITEM: RESOLUTION NO. 2023-159, RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER RATIFYING APPROVAL OF A GRANT APPLICATION

SUBMITTED BY THE DEVELOPMENT SERVICES DEPARTMENT TO AMBAG FOR THE REGIONAL EARLY ACTION PLANNING GRANT (REAP 2.0)
BRIEF DESCRIPTION: The City of Hollister is applying to the Association of Monterey Bay Area Governments (AMBAG) for a grant authorized under the Regional Early Action Planning Grants (REAP) provisions pursuant to Health and Safety Code Sections 50515 to 50515.05.

The grant is to be used for the preparation and adoption of Objective Design Standards and any associated environmental document. The application was due to AMBAG on August 15, 2023 and was submitted by the deadline.

RECOMMENDATION: Adopt a resolution ratifying a grant application submitted by the Development Services Department to AMBAG for the Regional Early Action Planning Grant (REAP 2.0) for the preparation and adoption of Objective Design.

DEPARTMENT SUMMARY: The California Department of Housing and Community Development (HCD) in collaboration with the Governor's Office of Planning and Research, the Strategic Growth Council, and the California Air Resources Board established the Regional Early Action Planning (REAP) 2.0 program.

REAP 2.0 funds are focused on implementation of policies, programs and projects, rather than only the planning processes that were the focus of REAP 1.0. The partnership approach supports housing element implementation and creates expanded opportunities for local efforts to align with AMBAG's regional plans, implement the infill and VMT reduction goals of the AMBAG 2045 MTP/SCS, and support state planning goals.

The Association of Monterey Bay Area Governments (AMBAG) will serve as the local fiscal agent will then administrator the regional grant program for the three -county area of the AMBAG region, comprised of Santa Cruz County, Monterey County and San Benito County. The purpose of REAP 2.0 is to support transformative planning and implementation activities such as accelerating infill and affordable housing development; reducing vehicle miles traveled through programs such as increasing transit ridership, walking, and biking as primary modes of transportation; and affirmatively furthering fair housing.

Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability Accelerating infill development that facilitates housing supply, choice, and affordability and AFFH through various planning programs, services, or capital expenditures in a way that reduces VMT and greenhouse gas emissions and goes beyond existing commitments.

Affirmatively Furthering Fair Housing (AFFH)
Combats discrimination, overcome patterns of segregation, and foster equitable and inclusive communities. Includes meaningful actions to address disparities in housing needs and in access to opportunity, replace segregated living patterns with balanced living patterns, and transform Packet Pg. 171

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racially and ethnically concentrated areas of poverty into areas of opportunity; target funding to benefit disadvantaged and historically underserved communities.

Reducing Vehicle Miles Traveled (VMT)
Support new infill housing development and shift travel away from driving by implementing or supporting pedestrian, bicycle, transit, and other alternative transportation programs.

Based on the approved local sub -allocation approach as further outlined in the Exhibit to the Resolution, the City of Hollister is eligible to a maximum grant amount of $180,000 in noncompetitive funds if a project is identified which meets the program requirements and threshold criteria. Application to AMBAG is due August 15, 2023 and requires City Council adoption of a Resolution authorizing application for the grant funds.

The Development Services Department plans to use the funds for the development of Objective Design Standards.

Objective Design Standards
California state laws, including 2017's Senate Bill No. 35 and 2019's Senate Bill No. 330, require housing development projects to be reviewed against objective design standards.

Certain projects may only be denied approval by local governments if they violate these objective standards, which must be verifiable and measurable.

Objective design standards are intended to make the requirements that apply to certain eligible residential projects more predictable and easier to interpret for all stakeholders, including decision makers, staff, applicants, and members of the public. The purpose of objective design standards is for applicants to know beforehand what requirements apply to a proposed development and for the applicant to be able to design a project that meets those requirements before submittal. Objective design standards are defined in Government Code Sections 65913.4 and 66300(a)(7) as standards that:
involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal.

In contrast, subjective standards require interpretation by City staff or discretionary boards. For example, a requirement for a 40 square -foot front entryway is an objective standard, while a requirement for a "welcoming front entry" is subject to interpretation. An objective standard like "building exteriors shall utilize at least two different colors" could replace a current subjective requirement such as "every building shall have complementary colors which demonstrate a harmonious relationship."
With the State's requirement for cities to approve certain housing proposals through ministerial, or "over-the-counter," processes based on objective standards, it is in the City of Hollister's best interest to adopt objective standards to maintain local control over site planning, design and form of developments. Preparation of Objective Design Standards is an eligible project for the local suballocation grant.

FINANCIAL IMPACT: The potential grant amount for REAP funding is $180,000 in one-time funding.

CEQA: The City of Hollister Development Services Department determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (Article 20, Packet Pg. 172

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Section 15378). In addition, CEQA Article 5, Section 15061 includes the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Because the proposed action has no potential to cause any effect on the environment, this matter is not a project. Because the proposed action does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. The appropriate level of CEQA review will be conducted on the future project prior to the City taking any action and on any future development of City property. No decision is considered by the City Council at this time that could be analyzed through the CEQA process.

ATTACHMENTS:

1. AMBAG-Local Suballocation Grant Program Guidelines_ June 2023_FINAL-PDFA

2. REAP 2 APPLICATIONLSGP App City of Hollister FINAL Signed

THIS REPORT WAS REVIEWED BY THE INTERIM CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
elow
David Mirrione, Interim City Manager
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RESOLUTION NO. 2023-159

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER RATIFYING

APPROVAL OF A GRANT APPLICATION SUBMITTED BY THE DEVELOPMENT SERVICES

DEPARTMENT TO AMBAG FOR THE REGIONAL EARLY ACTION PLANNING GRANT (REAP 2.0)
WHEREAS, Governor Gavin Newsom signed Assembly Bill 101 in September 2019, which established the Local Government Planning Support Grants Program which allocates $125 million in housing planning funds to regional entities throughout the state; and WHEREAS, the California Department of Housing and Community Development (HCD) has been assigned as the state agency overseeing this program; and WHEREAS, the provisions of AB 101 require the California Central Coast's Councils of Government form a multiagency group comprising three representatives from each of the region's five counties to administer approximately $8 million in housing planning funds dedicated to the Central Coast region through the Regional Early Action Planning (REAP) grant; and
WHEREAS, the Central Coast Housing Working Group has been established as the multiagency working group to administer these REAP funds pursuant to AB 101; and WHEREAS, the Association of Monterey Bay Area Governments (AMBAG) will serve as the fiscal agent of the Central Coast Housing Working Group and will staff the group; and WHEREAS, AMBAG will use three percent of the AB 101 Central Coast regional funding to administer the mega regional grant program, staff the Central Coast Housing Working Group, provide required reporting, and provide oversight of the grant program from 2020 to 2024; and WHEREAS, AMBAG will allocate AB 101 housing planning funds to the four COGs in the Central Coast area: AMBAG, the San Luis Obispo Council of Governments, the Santa Barbara County Association of Governments, and the Council of San Benito County Governments; and WHEREAS, the City of Hollister is eligible to submit a request for allocation for a portion of Central California AB 101 housing planning funds from AMBAG in the amount of $180,000; and WHEREAS, the amounts allocated to the Association of Monterey Bay Area Governments (AMBAG) are based on the allocation method approved by the Central Coast Housing Working Group; and
WHEREAS, the amounts allocated to the City of Hollister will be based on the allocation method approved by AMBAG; and
WHEREAS, AMBAG shall approve allocation requests subject to the terms and conditions of eligibility, guidelines, Notices of Funding Availability, and program requirements; and WHEREAS, a grant application was submitted by the Development Services Department to AMBAG on August 15, 2023 for the Regional Early Action Planning Grant (REAP 2.0) for the preparation and adoption of Objective Design Standards.

THEREFORE, BE IT RESOLVED:

The City Council of the City of Hollister hereby ratifies approval of the grant application Packet Pg. 174

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submitted by the Development Services Department to AMBAG on August 15, 2023 for the Regional Early Action Planning Grant (REAP 2.0) for the preparation and adoption of Objective Design Standards.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 21st day of August, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk
APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
Mary F. Lerner, City Attorney
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I, JENNIFER WOODWORTH, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2023-159, is an original Resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on the 21st day of August, 2023, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Hollister this City Council day of August, 2023.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister
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Regional Early Action Planning 2021 (REAP 2.0):

LOCAL SUBALLOCATION GRANT PROGRAM (LSGP)
Final Guidelines
Date: June 14, 2023
Table of Contents
Section 1— Overview 2
Background 2
REAP 2.0 Program Objectives 3
Definition of Infill 4
Section 2 — Eligibility 6
2a. Allocation Methodology and Eligible Applicants 6
2b. Eligible Partnerships 7
2c. Eligible Uses and Activities 8
2d. Ineligible Activities 10
Section 3 — Application Process 10
3a. Applying for Funding 11
3b. Unallocated Funds 11
3c. Funding Criteria 11
Section 4 — Contract Administration 12
4a. Implementing Agencies 12
4b. Administrative fee 12
4c. Expenditure Period 13
4d. Reimbursement 13
4e. Reporting Requirements 13
Technical Assistance 13
Timeline 14
LSGP Scoring Criteria & Methodology 15
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Section 1- Overview
The Association of Monterey Bay Area Government's (AMBAG) Regional Early Action Planning 2021 (REAP 2.0) Program guidelines have been developed with input from regional jurisdictional stakeholders to align with AMBAG's adopted REAP 2.0 Program Framework and the state final REAP

2.0 Program Guidelines. The AMBAG REAP 2.0 Local Suballocation Grant Program (LSGP) Guidelines ("Guidelines") implement the REAP 2.0 Suballocation funding programs in the AMBAG REAP 2.0 Program Framework. The state REAP 2.0 grant supports accelerating housing production, reducing vehicle miles travelled (VMT), and Affirmatively Furthering Fair Housing (AFFH). These guidelines are consistent with, and when necessary, defer to, the state REAP 2.0 Program Guidelines for establishing terms, conditions, forms, procedures, and other mechanisms necessary to effectuate the program. The California Department of Housing and Community Development (HCD) released REAP 2.0 final program guidelines on July 26, 2022. The AMBAG REAP 2.0 program application is based on inclusive and broad engagement. These guidelines and program will be adjusted as necessary to comply with the state program.

In the REAP 2.0 Guidelines, the state reserves the right, at their sole discretion, to suspend, amend, or modify the provisions of the REAP 2.0 Guidelines at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties. As such, AMBAG reserves the right, at its sole discretion, to suspend or amend the provisions of the REAP 2.0 LSGP guidelines in collaboration with the State, including but not limited to, grant award amounts.

Background
REAP 2.0 (REAP 2021) was established through AB 140 (July 2021) as part of the mid -year budget revise for the State's FY 21-22 budget for transformative and innovative projects that implement a region's Sustainable Communities Strategy (SCS) and help achieve the objectives of more housing and transportation options that reduce reliance on cars. REAP 2.0 builds on actions completed through the 2019 REAP grant program but expands the focus by integrating housing and climate goals, and by allowing for broader planning and implementation investments, including infrastructure investments supporting housing development.

REAP 2.0 builds off the work achieved through REAP 1.0. In 2020, AMBAG set aside approximately $8 million of REAP 1.0 funding for a grant program to fund subregional planning activities that accelerate housing production and facilitate compliance implementing a jurisdiction's 6th Cycle RHNA, including developing 6th Cycle Housing Elements. Funding was non -competitively awarded based on each jurisdiction's population size category with a minimum allocation of $65,000. REAP 1 was developed to augment resources available through locally received SB 2 and LEAP grants and to foster subregional collaboration to take advantage of economies of scale in meeting housing goals.

The REAP 2.0 Program is funded with $600 million from the State General Fund. AMBAG's share of this funding is $10,133,742.41. The REAP 2.0 Program is administered by the California Department of Housing and Community Development (HCD), in collaboration with the Governor's Office of REAP 2.0 Local Suballocation Grant Program Guidelines
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Planning and Research (OPR), the Strategic Growth Council (SGC), and the California Air Resources Board (CARB).

In November 2022, the AMBAG Board of Directors adopted the REAP 2.0 Grant Program Framework, which outlines the core objectives, guiding principles, programmatic areas, major milestones, and schedule for allocating funds available to AMBAG through the state REAP 2.0 grant program. The REAP 2.0 Program Framework includes three core components:
• Competitive Grant Program (60% - $6,000,000)
o Developed and administered by AMBAG. Applicant awards must support all REAP

2.0 objectives. This program will suballocate the majority of AMBAG's REAP 2.0 funds to a competitive program, granting awards to applicants that best achieve all REAP

2.0 goals, objectives and scoring criteria.
• Local Suballocation Grant Program (25% - $2,625,000)
o The Local Suballocation Grant Program sets aside $2,625,000 for jurisdictions throughout the region for eligible projects which meet all REAP 2.0 goals and objectives. The goal of this suballocation program is to provide all cities and counties with an opportunity to propose a REAP 2.0 eligible projects while allowing for both implementation and planning uses. All projects or programs must achieve all REAP

2.0 goals, objectives and pass thresholding criteria.
• AMBAG SCS Implementation, Technical Assistance, REAP 2.0 Program Development and Administration (15% - $1,508,742)
o Regional planning activities that support infill development and implement the SCS such as pricing studies, transit -oriented development and Opportunity Area planning and implementation
o Technical assistance
The REAP 2.0 Program provides funds to regional governments to achieve the three core REAP 2.0 objectives listed below. This includes accelerating housing production and facilitate compliance with the 6th Cycle of the housing element, including regional housing need allocations. REAP 2.0 is specifically designed to provide Metropolitan Planning Organizations (MPO) and other Eligible Entities with tools and resources to help implement and advance plans, primarily including Sustainable Communities Strategies (SCS) as part of Regional Transportation Plans to pursue greenhouse gas emission reduction targets through land use and transportation changes.

REAP 2.0 Program Objectives
Based on feedback from regional jurisdictions and stakeholders the REAP 2.0 LSGP has been developed within the AMBAG REAP 2.0 Draft Program Framework. REAP 2.0 LSGP supports implementation of the region's housing element work plans as a means of investing in actions identified at the local level that support housing production throughout the region and achieve the REAP 2.0 Local Suballocation Grant Program Guidelines
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REAP 2.0 Program Objectives. Both AMBAG's Competitive and Local Suballocation Grant Programs must meet the REAP 2.0 objectives which are:

1. Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability o Accelerating infill development that facilitates housing supply, choice, and affordability and AFFH through various planning programs, services, or capital expenditures in a way that reduces VMT and greenhouse gas emissions. o The definition of infill for the purpose of this program is further defined in the "Definition of Infill" section below.

2. Affirmatively Furthering Fair Housing (AFFH)
o Combats discrimination, overcome patterns of segregation, and foster equitable and inclusive communities
o Includes meaningful actions to address disparities in housing needs and in access to opportunity, replace segregated living patterns with balanced living patterns, and transform racially and ethnically concentrated areas of poverty into areas of opportunity; Target funding to benefit disadvantaged and historically underserved communities.
o Enhances mobility or place -based strategies benefitting housing that meets AFFH goals, or protects existing residents from displacement, or preserves housing choices and affordability in areas of lower- or moderate -opportunity and concentrated poverty.
o Supports regional and local efforts to work toward ensuring all people have full and equal access to opportunities enabling them to lead healthy lives?

3. Reducing Vehicle Miles Traveled (VMT)
o Supports new infill housing development and shift travel away from driving by implementing or supporting pedestrian, bicycle, transit, and other alternative transportation programs
o Realizes multimodal communities through programs, plans, and implementation actions
o Shifts travel behavior by reducing driving through programs, ordinances, funds, and other mechanisms
o Increases transit ridership through funding, implementation actions, and planning Definition of Infill
The REAP 2.0 State Coordinating Group coordinated with AMBAG to establish a definition of infill that includes the State's REAP 2.0 definition if infill and including AMBAG's Existing/Planned Opportunity Areas and Potential Opportunity Areas as qualifying areas, as defined in AMBAG's 2045. The definition is as follows:

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Projects within Cities:

Projects comply with REAP 2.0 Program goals and objectives and are in areas within an Existing/Planned Opportunity Area or Potential Opportunity Area as defined by the AMBAG 2045 MTP/SCS (Moving Forward Monterey Bay 2045) AND comply with the State infill definition in the REAP 2.0 Guidelines as detailed below.

Projects within Counties:

Projects comply with REAP 2.0 Program goals and objectives and are within an Existing/Planned Opportunity Area or Potential Opportunity Area as defined by the AMBAG 2045 MTP/SCS (Moving Forward Monterey Bay 2045) AND comply with the State infill definition in the REAP 2.0 Guidelines as detailed below. For more about these areas, see: AMBAG 2045 MTP/SCS.

All Projects:

In addition to the above, all projects must meet the State REAP 2.0 infill definition. The State REAP

2.0 infill definition pursuant to State guidelines provides that:
"Infill", for the purposes of the REAP 2.0 Program, means areas where all the following apply: (1) the area consists of unused or underutilized lands (2) within existing development patterns (3) that is or will be accessible to destinations and daily services by transit, walking, or bicycling and located in either:
a. An urban center, urban corridor, or area with transit -supportive densities, or b. An established community that meets all the following criteria:
i. The area consists or previously consisted of qualified urban uses ii. The area is predominantly surrounded (approximately 75 percent of the perimeter) by parcels that are developed or previously developed with qualified urban uses.

In counting this, perimeters bordering navigable bodies of water and improved parks shall not be included, and
iii. No parcel within or adjoining the area is classified as agricultural or natural and working lands.
c. Under unique circumstances, applicants may propose an alternative definition of "Infill" subject to approval by the Department and State Collaborative Partners.

Projects/Programs will also explain how the projects awarded will further the SCS in focusing future development within transit corridors (within 1/2 mile of transit), actionize the Infill Housing Toolkit for SCS implementation with densities beyond single family housing preferred, and support other SCS investments.

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Section 2 - Eligibility
The Association of Monterey Bay Area Government's REAP 2.0 LSGP is the non-competitive component of the suballocation funds. Regional jurisdictions proposing projects or programs which meet the core REAP 2.0 goals and objectives such as improving housing affordability, increasing housing production, establishing housing closer to jobs, reducing VMT, addressing housing and infrastructure needs in all communities, advancing AFFH and promoting multimodal communities consistent with program guidelines.

The REAP 2.0 LSGP program will have thresholding criteria which mirror REAP 2.0 goals and stakeholder input in order to ensure funded projects meet all REAP 2.0 goals, objectives, and scoring criteria. Metrics will assist in the project/program selection process including screening or thresholding criteria to focus funding in existing urban areas, criteria for infill and measuring how projects/programs reduce VMT, whether they implement the SCS, and criteria to evaluate whether projects are meeting AFFH goals. All project/program screening and thresholding criteria will be grounded in the REAP 2.0 guidance on grant program goals and objectives. Once the suballocation program design is finalized, AMBAG will conduct a regional call for projects for all eligible applicants.

Screening or thresholding criteria will be included in the suballocation program evaluation to assure eligible projects are in areas that satisfy the definition of infill development. All suballocation project/program applications must also include a location which will assist AMBAG in determining if the location is in an eligible infill area.

As referred to in these guidelines "projects or programs" are defined as those projects or programs included in a jurisdiction's housing element for compliance with HCD requirements. HCD requires each jurisdiction to identify specific projects or programs in its housing element that will allow it to implement the stated policies and achieve the stated goals and objectives. Projects or programs include specific action steps the locality will take to implement its policies and achieve its goals and objectives. Housing element projects or programs should include a specific timeframe for implementation, identify the agencies or officials responsible for implementation, describe the jurisdiction's specific role, and (whenever possible) identify specific measurable outcomes. 2a. Allocation Methodology and Eligible Applicants
Contingent on approval from the state and subject to change, up to $2,625,000 million of AMBAG's REAP 2.0 funding allocation, totaling $10,133.742.41, shall be available for the LSGP. Each city and county in the AMBAG region is eligible for funding if an eligible project can be proposed. Funding shall be disbursed on a non-competitive basis based on whether applicants achieve core REAP 2.0 objectives and pass thresholding criteria.

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Eligible cities and counties within the AMBAG region and the amount they may apply for are shown in the following table:

Local Suballocation Grant Program Allocation Table
Jurisdiction
6th Cycle RHNA
Allocation
% Share of
RHNA
Allocation:

Adjusted LSGP
Allocation
Capitola
1,336
3%
$128,750
Carmel
349
1%
$85,000
Del Rey Oaks
184
0%
$85,000
Gonzales
1,266
3%
$128,750
Greenfield
730
2%
$85,000
Hollister
4,163
11%
$180,000
King City
702
2%
$85,000
Marina
685
2%
$85,000
Monterey
3,654
10%
$180,000
Monterey County
3,326
9%
$180,000
Pacific Grove
1,125
3%
$128,750
Salinas
6,674
17%
$180,000
San Benito County
754
2%
$85,000
San Juan Bautista
88 0%
$85,000
Sand City
260
1%
$85,000
Santa Cruz
3,736
10%
$180,000
Santa Cruz County
4,634
12%
$180,000
Scotts Valley
1,220
3%
$128,750
Seaside
616
2%
$85,000
Soledad
724
2%
$85,000
Watsonville
2,053
5%
$180,000
Total
38,279
$2,625,000
2b. Eligible Partnerships
Eligible partners include, but are not limited to, other local governments, regional governments, housing authorities, school districts, special districts, regional transportation planning agencies, universities, transit agencies, community -based organizations, non-profit organizations or any duly constituted governing body of an Indian Reservation or Rancheria. An eligible applicant may partner with other eligible entities to fulfill one or more projects included in the application. One or more eligible applicants may form a partnership to expend part, or all, of a recipient's LSGP funding.

Partnerships are encouraged when aggregating funds creates an opportunity for leveraging REAP 2.0 Local Suballocation Grant Program Guidelines
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additional outside funding, and for cost -efficiency addressing common needs and actions.

Applicants forming partnerships must provide a legally binding agreement between all partners.

Applicants that are considering this are encouraged to discuss their proposals with AMBAG staff prior to applying to ensure projects are eligible and the work can be completed prior to the end of the expenditure period.
2c. Eligible Uses and Activities
REAP 2.0 funds are focused on implementation of policies, programs and projects, rather than only the planning processes that were the focus of REAP 1.0. The partnership approach supports housing element implementation and creates expanded opportunities for local efforts to align with AMBAG's regional plans, implement infill, achieve the VMT reduction goals of the AMBAG 2045 MTP/SCS, and support state planning goals.

To receive funding, applicants must:

1. Submit a qualifying application that is approved by the AMBAG review committee.

Applicants are not required to directly implement projects and may contract for services following state requirements, and when applicable federal requirements. Applicants are not required to apply for all funds available.

2. Demonstrate a nexus to all three REAP 2.0 Program Objectives for each project proposed:
• Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability
o Accelerating infill development that facilitates housing supply, choice, and affordability and AFFH through various planning programs, services, or capital expenditures in a way that reduces VMT and greenhouse gas emissions, and goes beyond existing commitments. Infill development must meet the definition of infill provided above in Section 1, REAP 2.0 Program Objectives, Definition of Infill. • Affirmatively Furthering Fair Housing (AFFH)
o Combats discrimination, overcome patterns of segregation, and foster equitable and inclusive communities.
o Includes meaningful actions to address disparities in housing needs and in access to opportunity, replace segregated living patterns with balanced living patterns, and transform racially and ethnically concentrated areas of poverty into areas of opportunity; target funding to benefit disadvantaged and historically underserved communities.
o Enhances mobility or place -based strategies benefitting housing that meets AFFH goals, or protects existing residents from displacement, or preserves housing choices and affordability in areas of lower- or moderate -opportunity and concentrated poverty.

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o Supports regional and local efforts to work toward ensuring all people have full and equal access to opportunities enabling them to lead healthy lives? • Reducing Vehicle Miles Traveled (VMT)
o Supports new infill housing development and shift travel away from driving by implementing or supporting pedestrian, bicycle, transit, and other alternative transportation programs.
o Realizes multimodal communities through programs, plans, and implementation actions.
o Shifts travel behavior by reducing driving through programs, ordinances, funds, and other mechanisms.
o Increases transit ridership through funding, implementation actions, and planning.

3. Demonstrate project is eligible for funding and describe how project meets objectives in Section 1, REAP 2.0 Program Objectives. Based on the final State REAP 2.0 Program Guidelines (dated July 26, 2022) example activities and uses include but are not limited to the following:
• Projects or programs leading to or supporting affordable housing development or unit production;
• Planning activities that lead to increased residential and/or mixed -use zoned capacity in areas identified as infill, or land use planning, related studies and/or programs that result in implementable/adoptable programs and policies (meaning subject to adoption or approval of the legislative body) required to meet the programs, projects, and commitments in draft, adopted and/or compliant 6th Cycle Housing Elements; • Program -level environmental clearance for infill projects with AFFH components; • Upgrading infrastructure for sewer, water, and dry utility systems that may serve affordable infill housing;
• Housing mobility strategies that serve affordable housing; • Reductions to barriers to higher density Housing, buildings with four or more units, and accessibility;
• Outreach strategies to address local opposition to Proposed Use; • Affordable Housing unit production or preservation;
• Anti -displacement protections;
• Expanded Housing options;
• Housing -supportive infrastructure;
• Activities that develop, support, or implement land use planning, policies, or investment strategies that result in substantial changes to travel behavior from increasing population and employment densities, land use mix, street network connectivity, linkages and pathways with active transportation infrastructure, REAP 2.0 Local Suballocation Grant Program Guidelines
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accessibility between destinations, and/or contiguousness of land uses and transportation networks; Activities, subject to applicable program funding requirements, that would develop, support, or implement transportation planning, policies, and investment strategies that support Infill development that facilitates housing supply, choice, and affordability such as n. Increasing transit services and access;
• Building at walkable community scales;
• Enhancing pedestrian and bicycling safety measures;
• Protecting pedestrian and bicycling amenities;
• Multimodal infrastructure connections with multimodal-mobility transportation systems.

4. Submit a complete application along with all required supporting documents within the application period. See Section 3 for information on applying for funding.

Consultants or other external resources may be used for work on eligible activities but are not required. Applicants will indicate in their funding application whether they intend to use existing staff, temporary staff, consultants, or other resources for each activity. 2d. Ineligible Activities
• Activities where clear nexuses to all Program Objectives listed in Section 1 are not demonstrated.
• Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact approval certainty and timing, planned development, or other similarly constraining processes. • Administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed Activity or Activities.

AMBAG will not accept applications for, nor reimburse for, ineligible activities or projects.

Expenditure reimbursement requires prior authorization in writing from AMBAG for the eligible projects and activities. AMBAG may be subject to repayment of REAP 2.0 funds to HCD if it is found in breach of its agreement with HCD, which can occur if REAP 2.0 funds are used for ineligible activities. If AMBAG is required to repay funds to HCD, AMBAG will require reimbursement from the LSGP recipient.

Section 3 — Application Process
AMBAG's full REAP 2.0 application is pending State approval, and programs are subject to change upon State approval. All activities proposed must meet the requirements established in these guidelines and the state's REAP 2.0 Program Guidelines.

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3a. Applying for Funding
Process and Timing:

The application period will be opened following approval from the AMBAG Board and will close at midnight on August 15, 2023.

Application Submittal and Review: The application must include information on proposed projects and activities, key tasks and deliverables, estimated costs, and identification of the implementing agency for each project and activity, among other requirements provided in the application template.

Once applications are reviewed, AMBAG will provide an award letter to the eligible applicant indicating whether the submitted projects are approved for funding, or a letter indicating how the application needs to be revised to be accepted. Projects that do not meet the funding criteria cannot be funded through REAP 2.0 LSGP. A jurisdiction or eligible applicant may revise its application or project scope to meet the funding criteria and resubmit the application up until the final due date.

Applications for ineligible activities or projects that do not meet the funding criteria in Section 1 will not be accepted. Applicants may resubmit revised projects that address the reasons the original submittal was rejected.

Applications will be accepted until the final date to apply, which is by midnight on August 15, 2023.

Given the schedule requirements of the REAP 2.0 Guidelines to award suballocations, if a successful application is submitted, conditional award letters are expected within 60 days of a complete application received from an applicant for a suballocation (not inclusive of encumbrance or an executed Standard Agreement).
3b. Unallocated Funds
Remaining funds that are remaining unencumbered after the application deadline will be available for qualifying projects in the AMBAG Region through March 1, 2024 or at AMBAG's discretion. By June 30, 2024, all REAP 2.0 funds must be fully encumbered. 3c. Funding Criteria
Funding applications are required to meet all three REAP 2.0 Objectives (Section 1 of the Guidelines) and shall be evaluated for funding based on the Local Suballocation Grant Program Methodology listed at the end of this document, including but not limited to the following criteria:
• Projects/programs proposed are eligible uses and activities (Section 2c.) • Provides a clear statement included demonstrating a nexus between each proposed project (or activity) and all three of the following state program objectives REAP 2.0 Local Suballocation Grant Program Guidelines
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o Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability; and
• Infill meets the definition of infill provided in the LSGP Guidance, Section 1, REAP

2.0 Program Guidelines, Definition of Infill; and
o Affirmatively Furthers Fair Housing; and
o Reduces Vehicle Miles Traveled
• Supports compliance with a jurisdiction's housing element • Provides transformative planning and/or implementation activities • Targets funding to benefit disadvantaged and historically underserved communities • Leads to substantial changes in land use patterns and travel behaviors • Supports California Planning Priorities. This may include promotion of infill development, supporting environmental and agricultural resources, and or encouraging efficient development patterns
Section 4 — Contract Administration
4a. Implementing Agencies
Jurisdictions or eligible applicants are required to serve as the implementing agency of the project/program proposed in the application. Implementing agencies must be entities eligible to enter into intergovernmental agreements and must demonstrate capacity to implement government grant administration tasks in a timely manner, including applications, contract execution and monitoring, funds management and transfer, and accounting and reporting, including any competitive sub- contracting if applicable. The implementing agency cannot have any unresolved audit findings from prior government contracts and cannot be party to pending land use, housing, or environmental litigation which could impact the proposed activities.

The implementing agency will be responsible for developing the scope of work for the project or activity and leading the procurement process for obtaining consultants and/or resources. The implementing agency must also manage and administer the project, which includes tasks such as monitoring activity progress, reviewing tasks and deliverables, and reviewing and processing invoices.
4b. Administrative Fee
None of a jurisdiction's or eligible applicant's allocation may be charged as administrative activities by the jurisdiction or eligible applicants. Tasks such as reviewing and processing project invoices, processing contract amendments, and preparing reports and metrics of project progress and completion are considered administrative activities. Activities such as developing scopes of work and requests for proposals (RFP), reviewing tasks and deliverables, and outreach with jurisdictions related to the project are considered programmatic and can be charged as a program activity.

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4c. Obligation and Expenditure Period
Per the requirements of AB 140 all funds distributed under REAP must be obligated by June 30, 2024 and expended by June 30, 2026. To meet this deadline and receive reimbursement in alignment with REAP 2.0 guidelines, AMBAG will require all funds to be obligated by March 1, 2024, unless otherwise directed by AMBAG. LSGP funds that have not be obligated REAP 2.0 program after March 1, 2024 will be obligated at AMBAG's discretion to other activities consistent with REAP

2.0 goals and objectives. All invoices associated with LSGP submitted to AMBAG no later than March 31, 2026. Invoices received by AMBAG after this date cannot be guaranteed for reimbursement. 4d. Reimbursement
All projects must submit invoices to AMBAG quarterly and a status report quarterly to receive reimbursement. Invoices must follow the requirements set forth in the Subregional Partnership contract and AMBAG's regular invoicing procedures and must comply with applicable state and/or federal requirements. Expenditure reimbursement requires prior authorization of the eligible projects and activities, and AMBAG may be subject to repayment of REAP funds to HCD if it is found in breach of its agreement with HCD, which can occur if REAP funds are used for ineligible activities.

If AMBAG must repay REAP 2.0 funds to the state, AMBAG will require reimbursement from the eligible applicant or jurisdiction.

AMBAG will provide reimbursement only for costs as specified in the signed agreement(s) with the Jurisdictions or eligible applicants or designee. Costs incurred prior to the date of the grant agreement for the LSGP will not be reimbursed.
4e. Reporting Requirements
Consistent with AMBAG's Overall Work Program reporting procedures, each jurisdictional partner will be required to provide a quarterly progress report and quarterly invoices to track and measure activity progress. Project progress will be measured according to the tasks, deliverables, costs, and timeline outlined in the jurisdiction's MOU and agreement.

Technical Assistance
AMBAG staff will provide technical assistance to eligible applicants starting in early 2023 through June 2026. Technical assistance will be available to help subregional partners prioritize activities and complete the application and contracting process. After the start of subregional partnership projects AMBAG staff will be available for guidance with invoicing and reporting.

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Timeline
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Below is a schedule for the LSGP:
• April 2023: Released draft RCGP Guidelines for public review • June 2023: AMBAG adopts final RCGP Program guidelines and issues Notice of Funding Availability.
• August 15, 2023: Final application and list of prioritized projects from eligible applicants due to AMBAG. (unless due date is extended)
• September 2023: Grant applications are reviewed and evaluated • October/November: AMBAG approves applications and awards REAP 2.0 • December 2023 — February 2024: Execute grant agreements with REAP 2.0 awardees • March 1, 2024: Deadline to encumber REAP 2.0 funds
• March 31, 2026: All REAP projects and activities must be completed; final activity reports due to AMBAG; final project invoices due to AMBAG.

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LOCAL SUBALLOCATION GRANT PROGRAM SCORING CRITERIA & METHODOLOGY Introduction:

The Association of Monterey Bay Area Governments (AMBAG) REAP 2.0 Grant Program framework is divided into three (3) categories:

1. Regional Competitive Grant Program (RCGP)

2. Local Suballocation Grant Program (LSGP)

3. Regional SCS Implementation, Technical Assistance, Program Development, Outreach and Administration
This is the scoring methodology and instructions for AMBAG's REAP 2.0 Local Suballocation Grant Program (LSGP).

AMBAG will assess REAP 2.0 applications received from eligible jurisdictions against a variety of criteria. To accomplish this task AMBAG staff members will review and score applications as part of a Review Committee, using pass or fail thresholding criteria. Once the review and thresholding criteria are finalized, the Review Committee will advance eligible projects to the next step.

Projects recommended for funding in Monterey, Santa Cruz and San Benito Counties must satisfy REAP 2.0 goals and objectives, including geographic equity and a blend of planning vs. implementation projects. Once the draft review and thresholding criteria are finalized, the Review Committee will review the projects and make recommendations to the AMBAG Executive Director. The AMBAG Executive Director will review the work of the Review Committee, and ultimately approve projects.

Projects will be scored in two areas: REAP 2.0 Objectives and Primary Factors, each described below.

REAP 2.0 Objectives
The REAP 2.0 program has three major objectives that each project must satisfy.

The thresholding of applications will determine whether each project satisfies each objective. The objectives include the following and questions that should be considered when thresholding applications are provided.

Accelerating Infill Develo
pment that Facilitates Housing Su
p
ply, Choice, and
Affordability

1. Does the project accelerate infill development near jobs and other key destinations to support housing choice and affordability that effectively reduces VMT and greenhouse gas emissions?

2. Is the project at an infill site and does it have affordability components that serve low- and moderate -income households?
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3. Is the project for affordable housing development programs — which may involve predevelopment costs (studies, land acquisition, entitlements, etc.), that accelerate the supply of long-term affordable housing for lower and moderate -income households?

4. Does the project go beyond existing commitments?
Affirmatively Furtherin& Fair Housing (AFFH

1. Does the project combat discrimination, overcome patterns of segregation, and foster equitable and inclusive communities?

2. Does the project include meaningful actions to address disparities in housing needs and in access to opportunity, replace segregated living patterns with balanced living patterns, and transform racially and ethnically concentrated areas of poverty into areas of opportunity?

3. Does the project support regional and local efforts to work toward ensuring all people have full and equal access to opportunities enabling them to lead healthy lives?

4. Does the project:
a. Enhance housing mobility strategies that remove barriers to housing, housing -supportive infrastructure, increased transportation options, and affordability in areas of high opportunity and outside areas of concentrated poverty; or
b. Improve place -based strategies to encourage community revitalization; or c. Protect existing residents from displacement and preserve housing choices and affordability in areas of lower- or moderate -opportunity and concentrated poverty?

5. Is the project materially inconsistent with AFFH?

6. Geographic equity — will be addressed post initial thresholding.

7. Does the project target funding to benefit disadvantaged and historically underserved communities?

8. Unique equity priorities — Geographic equity considerations in suballocation address unique equity priorities.

Reducing Vehicle Miles Traveled (VMT)

1. Does the applicant explain how the proposed use promotes development and aligns housing production in infill locations consistent with the state's climate targets and goals discussed in the California Climate Change Scoping Plan?

2. Is the project consistent with the region's sustainable communities strategy (SCS) through:

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A.6.a
a. Land use planning, polities, and investment strategies by infill development that facilitates housing supply, choice, and affordability and is serviced by existing and planned expansions of a multimodal transportation system; or
b. Transportation planning, policies, and investment strategies by increasing travel options to homes, jobs, services, and other key destinations that provide, support, or enhance multimodal communities and reduce the number or length of vehicle trips?

3. Does the project support new housing development and shift travel away from driving by implementing or supporting pedestrian, bicycle, transit, and other alternative transportation programs?
Primary Factors:

The primary factors represent factors from the REAP 2.0 guidelines. The application narratives associated with the primary factors will inform thresholding for the REAP 2.0 objectives portion of the thresholding matrix. Each primary factor is described below.

Housing Element Compliance
Does the project support compliance with a jurisdiction's housing element? Transformative Planning and Im
alementation Activities
Does the project provide transformative planning and/or implementation activities? For example, housing, planning, or infrastructure investments supporting infill housing, and other actions that enable meeting housing goals that also result in per capita VMT reductions, including accelerating infill development, supporting residents through realizing multimodal communities, shifting travel behavior through reducing driving, and increasing transit ridership.

Benefit to Disadvantaged Populations
Does the project target funding to benefit disadvantaged and historically underserved communities?
Significant Beneficial Imaacts
The project must contribute to spreading REAP 2.0 projects throughout the region to ensure a significant beneficial region -wide benefit.

The project must have the potential to be an innovative pilot project or proof -of -concept for a project that could be replicated throughout the region to result in a significant beneficial impact:

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• The project has the potential to be replicated in large, medium, and small jurisdictions throughout the region, and/or;
• The project addresses significant barriers to accelerating housing production in the AMBAG region which apply to more than half of jurisdictions throughout the region?
Additionally, projects must demonstrate one or more of the following thresholding criteria:
• An improved rate of change compared to the baseline; or • The magnitude of impact relative to variables or targets; or • The proportion of need achieved; or
• The impact relative to past trends, policies, and practices? California Planning Priorities
Does the project support California Planning Priorities? This may include promotion of infill development, supporting environmental and agricultural resources, and or encouraging efficient development patterns.

Thresholding Criteria:

Project elements will be rated on a pass or fail basis. Any project that fails one or more of the REAP 2.0 objectives or primary factors will be rejected. Projects that meet all REAP

2.0 objectives and goals will be considered for approval as eligible projects. • Pass: Sufficient evidence of meeting or exceeding requirements • Fail: Insufficient evidence of meeting requirements

THRESHOLDING CRITERIA

PASS/FAIL

1. Accelerating Infill Development
Pass/Fail

2. Affirmatively Furthering Fair Housing
Pass/Fail

3. Reducing VMT
Pass/Fail
Primary Factors

1. Housing Element Compliance
Pass/Fail

2. Transformative Planning and Implementation Activities Pass/Fail

3. Benefit to Disadvantaged Populations
Pass/Fail

4. Significant Beneficial Impacts
Pass/Fail

5. California Planning Priorities
Pass/Fail
Rating
Pass/Fail
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Subsequent Steps:

A.6.a
AMBAG staff will review each application with a pass or fail rating. If any one or more thresholding criteria rated "fail," the entire application will be deemed ineligible and rejected. Applicants are allowed to revise their application and resubmit. Applications that pass all thresholding criteria will be considered for recommendation to the Executive director. The AMBAG Executive Director will review and approve final selected projects.

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LOCAL SUBALLOCATION GRANT PROGRAM (LSGP) APPLICATION
Application for Jurisdictions
Deadline: August 15, 2023
A.6.b
This application to the Association of Monterey Bay Area Governments (AMBAG) is for the Local Suballocation Grant Program, a grant authorized under the Regional Early Action Planning Grants (REAP

2.0) provisions. The REAP 2.0 program was established through AB 140 (July 2021) for transformative and innovative projects that implement a region's Sustainable Communities Strategy (SCS) and help achieve the objectives of more housing and transportation options that reduce reliance on cars. REAP 2.0 builds on actions completed through the REAP 1 grant program but expands the focus by integrating housing and vehicle miles travelled (VMT) reduction, and by allowing for broader planning and implementation investments, including infrastructure investments supporting housing development. This includes accelerating housing production and facilitating compliance with the 6th Cycle of the housing element.

REAP 2.0 is specifically designed to provide Eligible Entities with tools and resources to help implement and advance plans, primarily including Sustainable Communities Strategies (SCS) as part of Regional Transportation Plans to pursue greenhouse gas emission reduction targets through land use and transportation changes.

The REAP 2.0 Program Framework includes three core components:

1. Regional Competitive Grant Program

2. Local Suballocation Grant Program

3. AMBAG SCS Implementation, Technical Assistance, REAP 2.0 Program Development and Administration
This is the application for the REAP 2.0 Local Suballocation Grant Program. The Local Suballocation Grant Program sets aside $2,625,000 for jurisdictions throughout the region for eligible projects which meet all REAP 2.0 goals and objectives. The goal of this suballocation program is to provide all cities and counties with an opportunity to propose REAP 2.0 eligible projects while allowing for both implementation and planning uses. All projects or programs must achieve all REAP 2.0 goals, objectives, and pass thresholding criteria. Full guidance and requirements for this grant program can be found in the AMBAG REAP 2.0:

Local Suballocation Grant Program Final Guidelines.

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REAP 2.0 Program Goals:

Invest in housing, planning, and Infill Housing -supportive infrastructure across the entire state in a manner that reduces VMT, increases Housing affordability, and advances equity, consistent with all of the following:
• Advances the State Planning Priorities, as described in Section 65041.1 of the Government Code; • Affirmatively Furthering Fair Housing;
• Facilitating Housing Element compliance and progress for the sixth cycle RHNA; • Advancing and implementing the region's SCS.

REAP 2.0 Program Objectives:
• Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability • Affirmatively Furthering Fair Housing (AFFH)
• Reducing Vehicle Miles Traveled (VMT)
To apply for project funding, eligible applicants must submit a REAP 2.0 LSGP Application. All sections of this application, including Attachment 1, must be complete and accurate. A jurisdiction may submit multiple applications through the final due date for eligible projects and activities until it has reached its funding maximum.

Timeline:

Below is a tentative schedule and is subject to change in the final guidelines. • April 2023: Released draft LSGP Guidelines for public review • June 2023: AMBAG adopts final LSGP Program guidelines. • August 15, 2023: Final application from eligible applicants due to AMBAG. • September 2023: Grant applications are reviewed and evaluated • October/November: AMBAG approves applications and awards REAP 2.0 • December 2023 — February 2024: Execute grant agreements with REAP 2.0 awardees • June 30, 2024: Deadline to encumber REAP 2.0 funds
• March 31, 2026: All REAP projects and activities must be completed; final activity reports due to AMBAG; final project invoices due to AMBAG
All applicants must submit the following to AMBAG by August 15, 2023 to be considered for the award:

1. A completed REAP 2.0 LSGP application along with all required supporting documents within the application period.

2. A fully executed Government Agency Taxpayer ID Form (see Attachment 1).

All applications must be submitted electronically to AMBAG by email to [email protected]. No hard copies will be accepted.
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Contact:

If you have questions regarding this application or the REAP 2.0 program, contact Paul Hierling at [email protected] or 831-264-5092.
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A. Applicant Information
Complete the following Applicant information
Agency Name
The City of Hollister
Agency Type
Government
Applicant's Mailing Address*
375 Fifth St.

City
Hollister
State
California
Zip Code
95023
County
San Benito
Website
https://hollister.ca.gov/
Authorized Representative Name
Dave Mirrione
Authorized Representative Title
City Manager
Phone
831-636-4300
Fax
831-634-4913
Email
[email protected]
Contact Person Name
Christine Hopper
Contact Person Title
Development Services Director
Phone
831-636-4360 ext
1221
Fax
831-634-4913
Email
[email protected]
Grant Amount (See program
guidelines, Section 2a for
amount which your jurisdiction is
eligible to apply)
$
180,000
*Ensure the Government Agency Taxpayer ID Form matches the Applicants Mailing Address listed above exactly. (See Attachment 1, "Government Agency Taxpayer ID Form") B. Threshold Requirements
Project elements will be rated on a pass or fail basis. Any project that fails one or more of the REAP 2.0 objectives or primary factors will be rejected. Projects that meet all REAP 2.0 objectives and goals will be considered for approval as eligible projects. In the box below, indicate whether your project meets each thresholding criteria.
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Thresholding Criteria
REAP 2.0 Objectives — Does the project:

Yes
No

1. Accelerate Infill Development? (see Section D [1] for more detail) X

2. Affirmatively Further Fair Housing? (see Section D [2] for more detail)
X

3. Reduce VMT?
X
Primary Factors — Does the project:

1. Advance Housing Element Compliance?
X

2. Result in Transformative Planning and Implementation Activities? (see Section D [5] for more detail)
X

3. Benefit to Disadvantaged and Historically Underserved Populations? (See section D [6] for more detail)
X

4. Have Significant Beneficial Impacts? (See section D [7] for more detail)
X

5. Advance California Planning Priorities per Government Code X
65041.1?
As the official designated by the governing body, I hereby certify that the proposed project is consistent with the AMBAG REAP 2.0 Local Suballocation Final Program Guidelines and meets all program requirements.

I further certify that, if approved by AMBAG for a suballocation of funding through the REAP 2.0 program, the City of Hollister assumes the responsibilities specified in this application and certifies that the information statements and other content contained in this application are true and correct.

Signature:
,-DocuSigned by:

David Mirrione Name: Dave Mirrione
706CAC6D41 B2452...

Date: 8/15/2023 I 3:38:24 P—iit�TCity Manager
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C. Eligible Activities Categories Checklist
REAP 2.0 funds are focused on implementation of policies, programs, and projects, rather than only the planning processes that were the focus of REAP 1.0. Eligible LSGP projects must accelerate infill development, affirmatively further fair housing, reduce vehicles miles traveled, support housing element implementation and creates expanded opportunities for local efforts to align with AMBAG's regional plans, implement the infill and VMT reduction goals of the AMBAG 2045 MTP/SCS, and support state planning goals.

Check one or more eligible activity category that will be implemented by the project. Proposed projects falling under these general project categories below must be shown to meet all criteria in Section B through the project narrative section of this application to be approved for funding. If project doesn't fall into these main categories, check the "other" option at the end of this list:

Projects or programs leading to or supporting affordable housing development programs or unit production or preservation;
X
Planning activities that lead to increased residential and/or mixed -use zoned capacity in areas identified as infill (see Section D [1] for infill definition), or land use planning, related studies and/or programs that result in implementable/adoptable programs and policies (meaning subject to adoption or approval of the legislative body) required to meet the programs, projects, and commitments in draft, adopted and/or compliant 6th Cycle Housing Elements; Program -level environmental clearance for infill projects (see Section D [1] for infill definition) with AFFH component (See Section D [2] for more detail on AFFH) s; Upgrading infrastructure for sewer, water, and dry utility systems that may serve affordable infill housing;
Housing mobility strategies that serve affordable housing; Housing mobility strategies that serve affordable housing; X
Reductions to barriers to higher density Housing, buildings with four or more units, and accessibility;
Outreach strategies to address local opposition to Proposed Use; Anti -displacement protections;
Expanded Housing options;
Housing -supportive infrastructure;
X
Activities that develop, support, or implement land use planning, policies, or investment strategies that result in substantial changes to travel behavior from increasing population and employment densities, land use mix, street network connectivity, linkages and pathways with active transportation infrastructure, accessibility between destinations, and/or contiguousness of land uses and transportation networks; Activities, subject to applicable program funding requirements, that would develop, support, or implement transportation planning, policies, and investment strategies that support Infill development that facilitates housing supply, choice, and affordability such as n. Increasing transit services and access; 6 Packet Pg. 201

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X
Building at walkable community scales;
X
Enhancing pedestrian and bicycling safety measures;
X
Protecting pedestrian and bicycling amenities;
X
Multimodal infrastructure connections with multimodal-mobility transportation systems.

X
Other Eligible Activity consistent the program guidelines. 7 Packet Pg. 202

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D. Project Description and Narrative
Provide a description of the project including a description of the project's impact on accelerating housing production, affirmatively furthering fair housing, and reducing vehicle miles traveled.

Describe how your project implements the eligible activities indicated in section C. Eligible Activities Checklist. Indicate how your project addresses regional housing issues that affect the Central Coast.

Include whether plans will be adopted. If consultants are used, identify what tasks they will be responsible for. This box will overflow to add additional pages if additional space is needed.

City of Hollister proposes to develop objective design standards for multi -family and mixed -use development within our downtown. City of Hollister's downtown is a high density mixed -use area with significant historic build -out. The City currently lacks design regulations making it difficult for development and redevelopment in this area. It is the City's goal to further the creation of high density housing that supports the mixed -use core of downtown. The City intends to hire a consultant to assist with the preparation of the objective design standards. The City plans to create a tool -kit that includes visual and written content to explain the content in a clear and concise manner. Part of the focus of the document will also address the historic buildings and district in the downtown to provide guidance for the redevelopment of these properties. While the focus of the objective design standards will be the downtown area, the City hopes to be able to utilize these standards either directly or as guide to create objective design standards for multi -family or mixed -use in other areas of the City as well. The objective design standards will be adopted by the City Council as a stand-alone document that can be modified as requirements may change.

Development of Downtown Hollister in a thoughtful way will help to reduce VMT because this is a highly accessible location for commercial amenities and services needed by the community.

Downtown Hollister allows for a combination of high -density uses as well as vertical/horizontal mixed -use. Mixed -use developed in the downtown core will allow residents to live, work, shop, and access services that are not otherwise available in Hollister without the need of vehicular travel.

Objective standards will incorporate complete streets and multi -modal transit strategies as requirements to ensure this area is redeveloped to support future transit opportunities and connectivity to the rest of the community is established and maintained. The City will include objective requirements for the creation, enhancement, and protection of pedestrian and bicycling amenities within high density residential and mixed -use development. Currently, Hollister serves as a bedroom community to Silicon Valley and Santa Clara County and many of our residents commute out of town to access commercial opportunities as well as jobs. Helping to reduce barriers to construction will increase opportunities for high -density residential development, allowing more people to live in Hollister, while supporting the development at walkable community scales.

The City of Hollister is currently in the process of drafting the 6th Cycle Housing Element as well as updating our General Plan through year 2040. Both these documents identify the creation of objective design standards for residential and mixed -use development as a key action item to help reduce barriers for this type of development. Also supporting the development of the downtown into a high density mixed -use urban center is a key goal of meeting the City's RHNA through the 6th cycle Housing Element. Creating objective design standards will serve as a first step in reducing processing times for development applications. The City is looking to further reduce processing time by creating more administrative and ministerial processes that would use these standards as a guide. California 8 Packet Pg. 203

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recently adopted legislation (SB 35 and SB 330) to address the housing shortage within the State. The legislation requires cities to review new multi -family and mixed -use residential housing projects ministerially or "over-the-counter" against objective design and development standards. These new laws prevent cities from denying approvals for certain multifamily housing projects based on discretionary design guidelines.

City of Hollister's Downtown Mixed -Use Zoning District allows for residential densities between 25-45 dwelling units/acre. Through the 2040 General Plan update process the City is looking to increase this density to 30-125 dwelling units/acre. These densities are intended to help support the creation of affordable housing in the City. Based on an analysis completed during the General Plan update, the City's existing housing supply is 80% single family residential whereas many other communities have between 50-60% single family residential housing stock. Hollister is in the midst of a housing crisis that includes rising costs, increased rent burden, and displacement of local residents due to the housing pressures of Silicon Valley residents moving into our community causing widespread demographic change. At the root of this crisis is the limited availability and diversity of housing options in Hollister, especially housing available to moderate- and low-income residents. A simplified and streamlined planning approval process for housing proposals of all types, especially affordable housing, would lead to increased availability and choice of housing to groups most burdened by high housing costs in Hollister. Objective design standards can help achieve Affirmatively Furthering Fair Housing (AFFH) by taking meaningful action to promote fair housing choice and fostering inclusive communities for everyone protected by the Fair Housing Act. AFFH by implementing proactive steps to overcome segregated living patterns and support integrated communities.

Please respond to the following questions demonstrating how your project is located in a valid infill area and accelerates infill development (600 -word limit):

Explain how the project accelerates infill development near jobs and other key destinations to support housing choice and affordability that effectively reduces VMT and greenhouse gas emissions. "Accelerating Infill Housing Production" or "Accelerating Infill Development, Including Housing" means planning, infrastructure, and other investment and actions that improve the affordability, timing, cost, 9 Packet Pg. 204

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feasibility, approval, and amount of Housing development. "Infill", for the purposes of the REAP 2.0 Program, is defined as the following: Projects within Cities:

Projects comply with REAP 2.0 Program goals and objectives and are in areas within an Existing/Planned Opportunity Area or Potential Opportunity Area as defined by the AMBAG 2045 MTP/SCS (Moving Forward Monterey Bay 2045) AND comply with the State infill definition in the REAP 2.0 Guidelines as detailed below.

Projects within Counties:

Projects comply with REAP 2.0 Program goals and objectives and are within an Existing/Planned Opportunity Area or Potential Opportunity Area as defined by the AMBAG 2045 MTP/SCS (Moving Forward Monterey Bay 2045) AND comply with the State infill definition in the REAP 2.0 Guidelines as detailed below. For more about these areas, see: AMBAG 2045 MTP/SCS.

All Projects:

In addition to the above, all projects must meet the State REAP 2.0 infill definition. The State REAP 2.0 infill definition pursuant to State guidelines provides that:
"Infill"; for the purposes of the REAP 2.0 Program, means areas where all the following apply: (1) the area consists of unused or underutilized lands (2) within existing development patterns (3) that is or will be accessible to destinations and daily services by transit, walking, or bicycling and located in either:
a. An urban center, urban corridor, or area with transit -supportive densities, or b. An established community that meets all the following criteria:
i. The area consists or previously consisted of qualified urban uses ii. The area is predominantly surrounded (approximately 75 percent of the perimeter) by parcels that are developed or previously developed with qualified urban uses. In counting this, perimeters bordering navigable bodies of water and improved parks shall not be included, and
iii. No parcel within or adjoining the area is classified as agricultural or natural and working lands.
c. Under unique circumstances, applicants may propose an alternative definition of "Infill" subject to approval by the Department and State Collaborative Partners.

Also explain how the project will further the SCS in focusing future development within transit corridors (within 1/2 mile of transit), actionizethe Infill HousingToolkitforSCS implementation with densities beyond single family housing preferred, and support other SCS investments.

Include the address(es) of the project area(s), satellite map (Google Maps or similar) of the project site(s) including surrounding parcels so AMBAG can verify that the project is not adjacent to natural or agricultural lands, and is in an appropriate infill site. If a zoning map is available to show the project 10 Packet Pg. 205

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location and associated land use designation, that will help assist in confirming the project is in an eligible infill area.

The proposed project would accelerate infill development near jobs and the key destination of Hollister's downtown. Currently downtown Hollister has underutilized multi -story buildings which are currently difficult to develop and redevelop through the City's existing codes and guidelines. The downtown allows for a mix of high density residential and mixed -use development. It offers jobs and commercial opportunities for the residents of Hollister as well supports residential densities that would allow diverse housing opportunities, including affordable housing. Implementation of objective design standards for high density residential and mixed -used development in the downtown will help to accelerate housing production in this area by reducing processing times and providing clarity for applicants. Further, development of the downtown core with mixed -uses will help reduce VMT greenhouse gas emissions by providing easy access to centralized job and services that do not require commuting. This will reduce the distance people have to travel to meet their basic needs, which supports greenhouse gas reductions as well.

Hollister's downtown mixed -use area, as shown in the maps below, is within the SCS map as a potential opportunity area designated by AMBAG. Downtown Zoning District is fully surrounded by developed urban properties and is the urban center of Hollister. The downtown is currently accessible to the existing transit, though limited, and is planned to provide transit -oriented development and multi -modal improvements to enhance the connectivity of this area to the surrounding community. The City of Hollister works closely with San Benito County Council of Governments, who provide transit services, and we will work closely with them to develop the objective design standards to ensure the standards account for future planned transit. Hollister's downtown has underutilized and undeveloped properties that are designated for transit -supportive densities (25-45 dwelling units/acre currently; 30-125 dwelling units/acre in Draft 2040 General Plan update).

While, the City of Hollister does not have high quality transit or any identified transit corridors it is served by existing public transit provided by San Benito Council of Governments. Creating objective design standards for high density residential and mixed -used that can be used in this area can actionize the Infill Housing Toolkit because all types of housing listed in the toolkit will be addressed through the objective design standards. Additionally, where appropriate the City will be able to use the objective design standards that are developed and expand the standards to other portions of the City, where high residential and mixed -use development is proposed. As identified in the SCS, land -use patterns that provide a diverse pattern of goods and services in combination with residential uses have been shown to reduce VMT and thereby reduce greenhouse gas emissions. The Downtown Mixed -Use Zoning District is intended for this type of land -use pattern. Objective design standards will help to reduce barriers to development in this area.
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Figure 1. Project Area
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Figure 2. Downtown Mixed -Use Zoning District
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Figure 3. DMU Zoning District & Potential Opportunity Area (SCS) Ctn[ral A!
San Oran Rd
tt
Sixth St
Opportunity Areas
V-1
ExistingJPlanned Opportunity Areas
▪ Potential Opportunity Areas
▪ AMBAG Region
City of Census Designated Place ICDP) Boundaries
Unincorporated Areas
0 Downtown Mixed Use {DMLJ} Zoning District
ste
1 ht•Closkey ad
Merldiin Si
aunrc.pr;
�Slr
r
Please respond to the following questions demonstrating how your projects fulfills each REAP 2.0 objective (200 -word limit per response):

1. Explain how the project affirmatively furthers fair housing. "Affirmatively Furthering Fair Housing", pursuant to Government Code section 8899.50 means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, Affirmatively Furthering Fair Housing means taking meaningful actions that, taken together, address significant disparities in Housing needs and in access to 14 Packet Pg. 209

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opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with Civil Rights and Fair Housing Laws.

HCD provides an AFFH Data Viewer which may assist the applicant in identifying the project's AFFH impacts.

The implementation of objective design standards for multi -family and mixed -used development can be utilized in our downtown to reduce barriers to construction by providing a clear path and requirements for development of housing in downtown. Historically, there has been a concentration of affordable housing in the west -side, which is a largely Hispanic population with less resources than other areas in Hollister. The downtown mixed -use zoning district is the City's highest density district allowing 25-45 dwelling units/acre, and the City is currently in the process of updating the General Plan and Housing Element to possibly increase this density to 30-125 dwelling units/acre. This is an area where the densities allow for the construction of affordable and diverse housing opportunities. Implementing objective design standards for the high density residential and mixed -used will help to reduce barriers to construction.

2. Explain how the project reduces Vehicle Miles Travelled (VMT) and is consistent with the AMBAG 2045 MTP/SCS strategies.

Downtown Hollister allows for a combination of high -density uses as well as vertical/horizontal mixed -use. Creating objective design standards to guide development in the downtown will ease the construction of these types of projects. Mixed -use developed in the downtown core will allow residents to live, work, shop, and access services that are not otherwise available in Hollister without the need of vehicular travel. Currently, Hollister serves a bedroom community to the Silicon Valley and many of our economic opportunities are leaked to Santa Clara County. Helping to reduce barriers to construction will increase opportunities for high -density residential development, allowing more people to live in Hollister, while supporting the development of nearby walkable commercial. Hollister intends to include complete streets and multi -modal strategies and design solution within the downtown objective design standards document. This will ensure new development and redevelopment is supporting a walkable pedestrian -friendly downtown core and guaranteeing future transit opportunities to the downtown are supported.

Trip generation, vehicle miles traveled calculations, parking ratios, and road design standards are quantifiable and can provide specific assessments to future projects. Producing projects that reduce VMT tagged with objective design standards allow the developer to include the necessary resources in their project.

3. Explain how the project advances compliance with your jurisdiction's draft 6th Cycle Housing Element.
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One objective of updated State housing law is to encourage more multifamily housing development to be approved through a ministerial review process. Once objective design and development standards are established, development application review could be reduced to an administrative or ministerial process rather than a public hearing or discretionary approval that is currently required.

For communities that want to regulate multifamily residential project design, adopting objective design standards presents an opportunity for interested residents and decision -makers to prepare, review, and agree on standards that represent the community character and quality. There are a broad range of topics that can be addressed as objective design standards. Ultimately, objective design standards hold a promise to be a more efficient, predictable, and equitable path to obtaining and granting of planning approvals for a wide variety of development projects, including infill and mixed -use development. The City's draft 6th Cycle Housing Element and our Draft General Plan include policies to adopt objective design standards for residential and mixed -use development.

These documents also include policies to streamline the approval process as well as prioritize the downtown as a key growth/priority infill area.

4. Explain how the project will result in Transformative Planning and Implementation Activities. "Transformative planning and implementation activities" means housing, planning, infrastructure investments supporting infill housing, and other actions that enable meeting housing goals that also result in per capita vehicle miles traveled reductions, including accelerating infill development, supporting residents through realizing Multimodal Communities, shifting travel behavior through reducing driving, and increasing transit ridership.

With the recent changes in State law to streamline and increase housing production, the City seeks to focus on making approval processes more routine and predictable for all parties. By developing a robust body of residential and mixed -use design and development standards the City seeks to ensure all projects deliver high -quality design, appropriate site planning and amenities, and are compatible with surrounding neighborhoods and the community. Implementation of these standards may result in elimination of the need for high level discretionary review and instead allow for administrative and ministerial project approval. Additionally, with the continued emphasis both locally and at the State level to accelerate infill development, reduction in vehicle miles traveled, and provide multimodal communities the City would like to provide primary criteria that may be used as the basis for project approval or denial. The City will create standards that support infill, mixed -use development within the Downtown, which is identified both in the SCS as well as the City's General Plan as a priority infill area. The objective standards would extend to the surrounding circulation network to ensure that multi -modal transit and pedestrian accessibility is supported and preserved, to further reduce VMT within Hollister.

5. Explain how the project has a Benefit to Disadvantaged and Historically Underserved Communities. "Disadvantaged and Historically Underserved Communities" includes concentrated areas of poverty; Areas of High Segregation and Poverty and areas of low to moderate access to opportunity (TCAC/HCD Opportunity Area Maps); Communities of Concern, Disadvantaged Communities (SB 535 Disadvantaged Communities Map ), and Low -Income Communities pursuant to Senate Bill 535 (De 16 Packet Pg. 211

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A.6.b
Leon, Chapter 830, Statutes of 2012) and Assembly Bill 1550 (Gomez, Chapter 369, Statutes of 2016); areas of high Housing cost burdens; areas with high vulnerability of displacement; areas related to Tribal Entities; and other areas experiencing disproportionate impacts of California's Housing and climate crisis.

The City seeks to implement standards that will support high density residential and mixed -use development in the downtown core. The standards will help improve pedestrian and multi -modal circulation to allow for underserved areas of the community to have better access to downtown, where new services and commercial opportunities will be developed. One additional reason to establish objective design standards is to avoid any potential discrimination or inequality in the design review process and project standards. With no current objective design standards, projects are viewed in various degrees and City Staff cannot provide clear direction to developers, staff, or commissions. Decision makers are left with no clear objectives, which may result in varied types of housing that does not reflect the need for Hollister residents. Objective design standards make it possible for the City to require architectural features and building materials the community desires and create great places for future generations of Hollister residents to live. Additionally, objective design standards can include requirements that new housing incorporate features that communicate quality and permanence to ensure all proposed housing is equal in material durability no matter the location. While the focus of the project is objective design standards for the Downtown, the City can utilize the standards that are implemented to apply to all relevant housing areas, ensuring that clear processes and requirements apply equitably in the City.

6. Explain how your project has Significant Beneficial Impacts? Significant beneficial impacts must lead to substantial changes in land use patterns and travel behaviors. In demonstrating significant beneficial impacts, applicants may consider rates of change (e.g., percent increase over a baseline), the magnitude of impact relative to variables or targets, the proportion of need achieved, and the impact relative to past trends, policies, and practices. Variables or targets may include but are not limited to benefitting households by income group; Regional Housing Needs Assessment; Housing units (new construction, preservation/conservation, and rehabilitation); density; infrastructure; infrastructure capacity and accessibility; public space; community amenities; investments; Vehicle Miles Traveled reduction goals or targets; regional or local equity policies and programs included in an adopted RTP/SCS; and GHG reduction goals or targets.

The Downtown Mixed -Use Zoning District is being identified in both the draft 2040 General Plan and the Draft 6th Cycle Housing Element as a key residential growth area and economic development opportunity area for Hollister. This is the highest density zone, currently allowing 25-45 dwelling units/acre, and it is being discussed to upzone this area to 30-125 dwelling units/acre. Implementing objective design standards for the downtown is the first step to reduce processing timelines for projects to help support the downtown as an area for meeting the City's RHNA. The City is focusing on infill as opposed to urban sprawl and incentivizing development that reduces the City's VMT. While Hollister's Downtown has many built -out lots, the upper stories of existing developed buildings are largely vacant. The City does not currently have clear guidance for development and redevelopment of the upper floors for residential and mixed -use space. Implementing clear objective standards allows the City to achieve the vision of the 17 Packet Pg. 212

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A.6.b
Downtown of a vibrant high density area to support community amenities locally where currently residents are commuting out of town to access them.

7. Explain how your project Advances California Planning Priorities per Government Code 65041.1.

The proposed project advances California Planning Priorities because it provides objective standards to develop and re -develop the Downtown District. The Downtown has existing underutilized multi- story buildings with vacant upper floors, and objective design standards will provide clear guidance for redevelopment of these properties to high density, possibly affordable housing. Downtown is served by all essential utilities and services and the objective design standards will allow the City to implement more transit and walkability in this area to further serve the entire community. The Downtown also has existing underutilized industry that would have the potential to be redeveloped using the objective design standards to bring those properties into conforming mixed -use and higher -density residential uses.

Hollister's Downtown is surrounded by other urban development and is an identified area for dense residential development. This area has access to existing/planned commercial, and is a key identified location where the City is working with local transit providers to improve multi -modal circulation. Encouraging development in the Downtown helps to protect agricultural and environmental resources because it is an infill area as opposed to development on or near agricultural resources.

9. Explain how the project supports promotion of infill development and equity by rehabilitating, maintains, and improves existing infrastructure that supports infill development and appropriate reuse and redevelopment of previously developed, underutilized land that is presently served by transit, streets, water, sewer, and other essential services, particularly in underserved areas, and to preserve cultural and historic resources.

Developing objective design standards promote new development, especially new infill development, to meet the same equitable review standards. Throughout the City's ongoing General Plan and Housing Element updates, residents state there is a lack of diversity in housing types. Many residents have expressed a desire for higher density rental and/or affordable housing developments.

Historically, new residential developments in Hollister have occurred in the outskirts and are largely single-family for -sale units. The Downtown District offers high density as currently zoned and would support the construction of these types of units needed in Hollister.

Through objective design standards the City seeks to preserve the cultural and historic resources found in our downtown historic district. Where appropriate, objective design standards may address historic preservation, in conjunction with other requirements, including the Secretary of the Interior's Standards for the Treatment of Historic Properties. Hollister's Downtown is largely included in the Hollister Downtown Historical District that is on the National Register of Historic Places. Currently, the City's requirements for rehabilitation and redevelopment of these sites make it difficult for new 18 Packet Pg. 213

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A.6.b
development to occur. The objective design standards would provide clear guidance for vacant or underutilized properties in the Historic District making it easier for redevelopment.

10. Explain how the project supports protection of environmental and agricultural resources by protecting, preserving, and enhancing the state's most valuable natural resources, including working landscapes such as farm, range, and forest lands, natural lands such as wetlands, watersheds, wildlife habitats, and other wildlands, recreation lands such as parks, trails, greenbelts, and other open space, and landscapes with locally unique features and areas identified by the state as deserving special protection.

Hollister is located in an agricultural County (San Benito). Downtown Hollister is centralized and is surrounded fully by existing developed urban land. Creating objective design standards to promote development and redevelopment in the Downtown will ensure less development is built on the edges on Hollister adjacent County agricultural lands. The City desires to promote higher density development in the center of town to preserve the urban agricultural boundary that currently exists.

The City's 2040 General Plan update has strong policies for the preservation of the surrounding agricultural landscape of the City including requiring buffer zones between new and agricultural lands as well as supporting an agricultural preservation program. Objective design standards would help to protect and preserve agricultural resources by providing guidance and best practices.

11. Explain how the project encourages efficient development patterns by ensuring that any infrastructure associated with development does all of the following (150 -word limit per question/sub-question):
a. Uses land efficiently; and
Downtown allows a high floor area ratio, high density, and commercial mixed -use all within a relatively small walkable area. Objective design standards can encourage efficient development patterns by ensuring that any infrastructure associated with development uses land efficiently.

Setting these objective design standards can help to ensure that new development is compact and efficient, which can reduce the amount of land required for new development and promote more sustainable land use patterns.
b. Is built adjacent to existing developed areas; and
The City plans to create objective design standards for multi -family residential and mixed -use development that can be utilized in the Downtown Mixed -Use Zoning District. The downtown area is completely surrounded by urban development and the standards would address the connection to existing uses to ensure they are compatibility and efficient design. The standards will also address the infrastructure in new and redevelopment including streetscape design, transit and pedestrian connectivity.
c. Explain how the project is located in an area appropriately planned for growth; and 19 Packet Pg. 214

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A.6.b
This is the City's highest zoned area for residential and commercial development. This is an urban center meeting all the requirements for the infill. The project supports development in the Downtown District through the creation of objective design standards for multi -family residential and mixed -use.
d. How the project location is served by adequate transportation and other essential utilities and services; and
The City's objective design standards will address incorporating transit improvements into projects as appropriate and applicable to new development. Downtown Hollister is zoned and located near commercial services as well as planned public transportation opportunities. The City actively works with transit providers including San Benito COG to incorporate transit - oriented features into new development. We will work with San Benito COG when developing the standards to integrate their planned facilities.
e. Explain how the project minimizes ongoing costs to taxpayers? The project minimizes ongoing costs to taxpayers because objective design standards help to streamline a housing development application approval process. Streamlining the process helps to decrease the amount of staff time dedicated to an application project review.

Additionally, objective design standards are designed to be verifiable and measurable, which means that they can be used to evaluate the cost, functionality, and aesthetics of proposed development. Through the creation of these standards, the City will evaluate the costs affiliated with the standards upfront. The City can also look holistically at the infrastructure needs of an area when establishing these standards ensuring that it is done in a way that is cost-effective and efficient. This can help reduce the cost of infrastructure development and further streamline the process.

E. Project Schedule and Budget
All tasks, budget amounts, dates and deliverables should be included under one line item. Do not add additional rows to the table below. Indicate what tasks will be completed by the consultant and include dates for draft and final deliverables if applicable. Budget must account for the full amount the jurisdiction is eligible to apply for. Include project location(s). All tasks and spending must be completed by March 31, 2026.
20 Packet Pg. 215

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A.6.b
Project Title:

Tasks
Budget
Start
Date
End
Date
Description and Deliverables
Objective Design
Standards
$180,000
1/1/2024
3/31/2026
- City Staff time to develop and issue
RFP
- Hire consultant and City Staff
manage contract
- City Staff & Consultant complete
kick-off meetings and necessary
follow-up meetings during RFP
- Consultant to complete draft and
final objective design standard
documents
- Consultant to assist with any
presentation material
- Host community outreach and/or
study session with Public, Planning
Commission and City Council
- Planning Commission provide
recommendation
- City Council approval and adoption
Total:
$180,000
21 Packet Pg. 216

DocuSign Envelope ID: 648935A2-FB17-4820-913F-D9F5568EE990 Attachment 1: Government Agency Taxpayer ID Form
A.6.b
Financial Information System for California (FI$Cal)

GOVERNMENT AGENCY TAXPAYER ID FORM
2000 Evergreen Street, Suite 215
Sacramento, CA 95815
www.fiscal.ca.gov
1-855-347-2250
�, �FISCaI
Fin cia! Information System for Ca/fork
The principal purpose of the information provided is to establish the unique identification of the government entity.

Instructions: You may submit one form for the principal government agency and all subsidiaries sharing the same TIN. Subsidiaries with a different TIN must submit a separate form. Fields bordered in red are required. Hover over fields to view help information. Please print the form to sign prior to submittal.

You may email the form to: [email protected], or fax it to (916) 576-5200, or mail it to the address above.

Principal
Government
Agency Name
Remit -To
Address (Street
or PO Box)
City
Government Type:

The City of Hollister
375 Fifth Street
Hollister
State
nCity
❑ Special District
❑ Other (Specify)
ncounty
nFederal
CA
Zip Code+4
Federal
Employer
Identification
Number
(FEIN)
94-6000348
List other subsidiary Departments, Divisions or Units under your principal agency's jurisdiction who share the same FEIN and receives payment from the State of California.

Dept/Division/Unit
Name
Dept/Division/Unit
Name
Dept/Division/Unit
Name
Dept/Division/Unit
Name
Complete
Address
Complete
Address
Complete
Address
Complete
Address
Contact Person
Phone number
Signature
Dave Mirrione
831-636-4300
Title
Email Address
City Manager
[email protected]
,-DocuSigned by:

David Mirrione
Date
R/1 S/7'1
706CAC6D41 B2452...

Packet Pg. 217

A.7
SUBMITTED:

DEPARTMENT:

DEPARTMENT HEAD:

STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: AUGUST 21, 2023
August 2, 2023
Public Works - Utilities
William Via, Community Services
Director
TITLE OF ITEM: RESOLUTION NO. 2023-160, A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT WITH 2ND NATURE SOFTWARE INC. FOR THE USE OF

SOFTWARE AS A SERVICE FOR STORM WATER DATA COLLECTION AND ANALYSIS IN

ORDER TO ACHIEVE COMPLIANCE WITH CALIFORNIA STATE AND EPA REGULATIONS BRIEF DESCRIPTION: This Resolution will authorize the City Manager to negotiate and execute a contract with 2ND Nature Software Inc. for the use of software as a service. City staff currently utilize this software in order to meet certain program objectives laid out in our Municipal Separate Stormwater Sewer System (MS4) permit from the State Water Resources Control Board (Water Quality order NO. 2013-0001-DWQ). The estimated annual cost of this software is approximately $22,000.00.

RECOMMENDATION: Authorize the City Manager to negotiate and execute a contract with 2ND Nature Software Inc. for the use of software as a service for storm water data collection and analysis in order to achieve compliance with California State and EPA regulations.

DEPARTMENT SUMMARY: City staff currently utilize, and have since Fiscal Year 2019/2020, 2ND Nature Software Inc. for storm water data collection and analysis in order to achieve compliance with California State and EPA regulations. The software allows staff to more effectively meet many of the different program requirements that are laid out in our Municipal Separate Stormwater Sewer System (MS4) permit from the State Water Resources Control Board (Water Quality order NO. 2013-0001-DWQ).

Program requirements such as construction site inspections, industrial and commercial site inspections, program outreach and education, pollutant loading assessments, and many more.

The software allows City staff to record inspection data via tablet or cell phone on site, reducing paper waste, and increasing productivity. Additionally, the software synthesizes data submitted from staff on a continuous basis to quickly quantify if the City is meeting its measurable goals. The software also allows easy, and required, access to the California State Regional Water Quality Control Board to see our data.

Staff recommends that the City Council authorize the City Manager to negotiate and execute a contract, after City Attorney review and approval, with 2ND Nature Software Inc. for the use of software as a service for storm water data collection and analysis in order to achieve compliance with California State and EPA regulations.

FINANCIAL IMPACT: Funding for this item has been included in the Fiscal Year 2023-24 Adopted Budget.

CEQA: Not a project.

ATTACHMENTS:

1. DRAFT 2N Software Agreement - City of Hollister CA
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A.7

THIS REPORT WAS REVIEWED BY THE INTERIM CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
r
David Mirrione, Interim City Manager
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A.7
RESOLUTION NO. 2023-160

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT WITH 2ND NATURE SOFTWARE INC. FOR THE USE OF SOFTWARE AS A SERVICE FOR STORM WATER

DATA COLLECTION AND ANALYSIS IN ORDER TO ACHIEVE COMPLIANCE WITH

CALIFORNIA STATE AND EPA REGULATIONS
WHEREAS, the City of Hollister is regulated under a Phase II Municipal Separate Stormwater Sewer System (MS4) permit from the State Water Resources Control Board (Water Quality order NO. 2013-0001-DWQ); and
WHEREAS, 2ND Nature Software Inc. provides software as a service to assist in achieving MS4 program compliance; and
WHEREAS, City staff have been utilizing said software since Fiscal Year 2019/2020.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorize the City Manager to negotiate and execute a contract, after City Attorney review and approval, with 2ND Nature Software Inc. for the use of software as a service for storm water data collection and analysis in order to achieve compliance with California State and EPA regulations.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 21st day of August, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk
APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
Mary F. Lerner, City Attorney
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A.7
I, JENNIFER WOODWORTH, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2023-160, is an original Resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on the 21st day of August, 2023, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Hollister this City Council day of August, 2023.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister
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A.7.a

SOFTWARE AS A SERVICE AGREEMENT
This software as a software license agreement ("Agreement") is between the City of Hollister located at 375 5th Street, Hollister, California 95023 ("Client") and 2NDNATURE Software Inc. located at 500 Seabright Ave #205, Santa Cruz, California 95062 ("2N") and is effective as of the last date signed below ("Effective Date"). The parties hereby agree as follows:

1. Access and Restrictions.

1.1 Subject to the terms of this Agreement, 2N grants to Client a limited, non-exclusive, non -transferable right during the Term to allow its Users (defined below) to access and use the online software applications described in Exhibit A of this Agreement ("2N Software") solely for Client's internal business purposes and may provide other services necessary for productive use of the 2N Software, including the provision of software updates, bug fixes, data monitoring, and technical support ("Support Services"). "User" means any Client employee, contractor, or agent, or any other individual or entity authorized by the Client to access and use the 2N Software. Client's rights to access the Service will be limited to those expressly granted in this Agreement, and 2N reserves all other rights, title, and interest therein.

1.2 Restrictions. Client is responsible for all activities conducted under its and its Users' logins on the 2N Software. Client shall not:
(i) copy, rent, sell, lease, distribute, pledge, assign, or otherwise transfer, or encumber rights to the 2N Software, or any part thereof, or use it for the benefit of any third party, or make it available to anyone other than its Users; (ii) send or store any personally information; (iii) send or store infringing or unlawful material; (iv) send or store viruses, worms, time bombs, Trojan horses and other harmful or malicious code, files, scripts, agents or programs; (v) attempt to gain unauthorized access to, or disrupt the integrity or performance of, the 2N Software or the data contained therein; (vi) modify, copy or create derivative works based on the 2N Software, or any portion thereof; (vii) access the 2N Software for the purpose of building a competitive product or service or copying its features or user interface; or (viii) delete, alter, add to or fail to reproduce in and on the 2N Software the name of 2N and any copyright or other notices appearing in or on the 2N Software or which may be required by 2N at any time.

1.3 Professional Services. Additional professional services related to the initial set-up and ongoing use of the 2N Software such as training, data import/export, will be set forth and billed at 2N's current time and materials rates stated in Exhibit A.

2. Term and Termination.

2.1 Term. The term of this Agreement is stated in Exhibit A.

2.2 Termination for Cause. Without limiting the right of a party to immediately terminate this Agreement for cause as provided for in this Agreement, if either party materially breaches any of its duties or obligations hereunder and such breach is not cured within thirty (30) calendar days after written notice of the breach, the non -breaching party may terminate this Agreement for cause as of a date specified in such notice.

3. Proprietary Richts

3.1 2N Richts. Except for the rights expressly granted under this Agreement, 2N retains all right, title, and interest (including all related intellectual property rights) in and to the 2N Software, and all other products, works, software and technology created, used, or provided by 2N in connection with this Agreement.

3.2 Client Data. All right, title and interest in and to the Client Data is owned exclusively by Client and Client may use the 2N Software to create reports and other data exports as needed for the Client internal business purposes. Client grants 2N a license to use, aggregate, collect, process, store, generate, and display Client Data to the extent necessary to maximize the effectiveness of 2N Software.

4. Fees. Client will pay 2N the annual subscription fee as stated in Exhibit A for access to the 2N Software, Set -Up Services, and Support Services ("Subscription Fee"). Client shall pay the Subscription Fee within thirty (30) days of execution of this Agreement. Client shall pay 2N the Subscription Fee for any renewal term within thirty (30) days of the start of such renewal term. Should the Agreement be renewed beyond the original Term, 2N reserves the right to increase the Subscription Fee for any Renewal Term. Client agrees to pay all © 2NDNATURE Software Inc. 2023 — v1.5
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A.7.a
sales, use, value-added, goods and services, consumption, withholding, excise and any other similar taxes or government charges, exclusive of 2N's income taxes.

5. Disclaimer of Warranties. THE 2N SOFTWARE IS PROVIDED "AS -IS" AND 2N AND ITS SUPPLIERS HEREBY DISCLAIM ALL (AND HAVE NOT AUTHORIZED ANYONE TO MAKE ANY) WARRANTIES RELATING TO THE 2N SOFTWARE, PROFESSIONAL

SERVICES OR OTHER SUBJECT MATTER OF THIS AGREEMENT, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF NON -INFRINGEMENT OF THIRD PARTY RIGHTS, AVAILABILITY OF THE 2N SOFTWARE, TITLE, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE PARTIES ARE NOT RELYING AND HAVE NOT RELIED

ON ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER REGARDING THE SUBJECT MATTER OF THIS AGREEMENT, EXPRESS OR IMPLIED.

6. Indemnification. Client will indemnify, defend, and hold 2N harmless from any and all claims, demands, suits or proceedings brought against 2N by a third party alleging a violation of a third party's rights arising from Client's provision of the Client Data.

7. Limitation of Liability. EXCEPT FOR CLIENT'S BREACH OF SECTION 1.2 OR AN OBLIGATION ARISING UNDER SECTION 6, NEITHER CLIENT, 2N, NOR 2N's SUPPLIERS, SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER

OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT

LIABILITY OR OTHER THEORY (A) FOR ERROR OR INTERRUPTION OF USE, LOSS OR INACCURACY OR CORRUPTION OF

DATA, (B) FOR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES, RIGHTS, OR TECHNOLOGY, (C) FOR ANY LOST

PROFITS OR REVENUES, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. IN NO EVENT WILL 2N's MAXIMUM LIABILITY FOR ANY OTHER DAMAGES ARISING UNDER THIS AGREEMENT EXCEED THE FEES PAID BY CLIENT TO 2N UNDER THIS AGREEMENT.

8. General

8.1 Authority. Client represents and warrants that it has all requisite corporate power, financial capacity, and authority to execute, deliver, and perform its obligations under this Agreement.

8.2 Confidentiality. Except as required by applicable laws or regulations, the parties agree that information deemed confidential at the time of disclosure and the terms of this Agreement shall not be disclosed to any third party.

8.3 Notices. Any notice given pursuant to this Agreement shall be in writing and shall be given via email (provided receipt is confirmed by the recipient), certified mail or courier, return receipt requested, to the addresses appearing in the preamble of this Agreement, or as changed through written notice to the other party. Notice is deemed effective on the date it is delivered to the addressee.

8.4 Governinc law. This Agreement shall be governed by and construed in accordance with the laws of the California and the federal laws of the United States of America. 2N hereby consents and submits to the jurisdiction and forum of the state and federal courts in the Santa Cruz, CA in all questions and controversies arising out of this Agreement.

8.5 Force Majeure; Excused Performance. Neither party shall be liable for delays or any failure to perform the obligations under this Agreement due to causes beyond its reasonable control. Such delays include, but are not limited to, fire, explosion, flood or other natural catastrophe, governmental legislation, acts, orders, or regulation, strikes or labor difficulties, to the extent not occasioned by the fault or negligence of the delayed party.

8.6 Independent Contractor. 2N is an independent contractor with no authority to contract for Client or in any way to bind or to commit Client to any agreement of any kind or to assume any liabilities of any nature in the name of or on behalf of Client.

Under no circumstances shall 2N, or any of its staff, if any, hold itself out as or be considered an agent employee, joint venture, or partner of Client.

8.7 Attorneys' Fees and Costs. In any arbitration, litigation, or other proceeding, informal or formal, by which one party either seeks to enforce this Agreement or seeks a declaration of any rights or obligations under this Agreement, the non -prevailing party shall pay the prevailing party's costs and expenses, including but not limited to, reasonable attorneys' fees. © 2NDNATURE Software Inc. 2023 — v1.5
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A.7.a

8.8 No Waiver. The failure of either party at any time to require performance by the other party of any provision of this Agreement shall in no way affect that party's right to enforce such provisions, nor shall the waiver by either party of any breach of any provision of this Agreement be taken or held to be a waiver of any further breach of the same provision.

8.9 Counterparts; Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. The parties agree that a facsimile signature may substitute for and have the same legal effect as the original signature.

8.10 Entire Acreement. This Agreement and its attached exhibits constitute the entire agreement between the parties and supersede any and all previous representations, understandings, or agreements between Client and 2N as to the subject matter hereof. This Agreement may only be amended by an instrument in writing signed by the parties. Any terms and conditions included in a Client purchase order or a 2N invoice, as the case may be, shall be deemed to be solely for the convenience of the respective party, and no such term or condition shall be binding upon the parties.

Executed on the dates set forth below by the undersigned authorized representative of Client and 2N to be effective as of the Effective Date.

Client
Signature:

Name:

Title:

Dated:
© 2NDNATURE Software Inc. 2023 — v1.5
2NDNATURE Software, Inc.

Signature:

Name: Christopher B. Cappelli
Title: President
Dated:
r I
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A.7.a

EXHIBIT A
2N Software Description
Term
This Agreement shall commence on the Effective Date and continue for twelve (12) months ('Term").

Upon expiration of the Term, the Agreement will automatically renew for additional Terms of twelve (12) months each ("Renewal Term"), unless either party gives the other notice of non -renewal at least thirty (30) days prior to the end of the then -current Term.

Products/Services
Reference 2N Invoice Number: Invoice# 10129
DRAFT
© 2NDNATURE Software Inc. 2023 — v1.5
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E.1

STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: AUGUST 21, 2023
SUBMITTED: May 31, 2023
DEPARTMENT: Planning
DEPARTMENT HEAD: Christine Hopper, Development
Services Director
TITLE OF ITEM: ORDINANCE NO. 1237 AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF HOLLISTER AMENDING THE ZONING ORDINANCE TO REPEAL SECTION

17.24.240, PLANNED DEVELOPMENT PERMITS, AND REPLACE WITH A NEW CHAPTER, CHAPTER 17.66, PLANNED DEVELOPMENTS
DESCRIPTION: The City Council will consider amendments to the City of Hollister Municipal Code to repeal Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.66, Planned Developments.

RECOMMENDATION: Hold a public hearing and introduce an ordinance of the City of Hollister amending Title 17, Zoning Ordinance, of the Hollister Municipal Code, and schedule a second reading and adopting of the ordinance for the August 21, 2023 City Council meeting.

DEPARTMENT SUMMARY: The Planning Commission has reviewed potential modifications to how the City regulates planned developments during two study sessions. On February 9, 2023, the Planning Commission discussed how the City currently reviews planned development requests and potential ways to approve planned developments (Attachment 1). A recording of the study session can be viewed at https://www.youtube.com/watch?v=SLExQY1wvbE (discussion starts at 1 hour and 19 minutes). During the meeting, the Planning Commission had several questions and comments regarding planned developments and provided staff with the following direction:
• A Conditional Use Permit is not the appropriate path to approval for a planned development request;
• A rezone is a better was to approve planned developments (asked for more information);
• The City should allow for flexibility in the allowed uses within a planned development; and
• A planned development should be allowed for residential and non-residential uses.

Staff brought the matter back to a study session on March 9, 2023 (Attachment 2) to provide additional information as requested and receive additional direction from the Planning Commission on how the City should regulate planned developments moving forward. The recording of this study session can be viewed at
https://www.youtube.com/watch?v=TVDdhsRAg0U (the item starts at minute 48).

Based on feedback and direction received from the Planning Commission during the two study sessions, staff prepared a draft ordinance for planned developments. The Planning Commission reviewed this draft ordinance during a study session on May 11, 2023 Attachment 3). The Planning Commission did not direct staff to make any modifications to the ordinance, but did ask Packet Pg. 226

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for clarification regarding the difference between administrative and minor modifications to a planned development. Based on direction received from the Planning Commission, staff made minor adjustments to Section 17.66.130 — Modifications to an Approved Planned Development and provided additional information regarding the difference between these two permit types and well as revised language included in the Draft Chapter for clarity. The recording of the study session can be viewed at https://www.youtube.com/watch?v=HSwhkGcdJzc .

On May 25, 2023, the Planning Commission reviewed the ordinance (Attachment 4) and the modified section (discussed above) and adopted a resolution recommending City Council approval of the proposed new Chapter, Chapter 17.66, Planned Developments, and an application fee related to minor modifications to a planned development (Attachment 5). The recording of this meeting can be viewed at https://www.voutube.com/watch?v=Xz5w B17EBs (starts at minute 53). One member of the public spoke regarding the item with a comment and a question. The item passed with a vote of 5-0-0.

All study session staff reports and attachments can also be viewed or downloaded from the Hollister Planning Commission webpage at https://hollister.ca.gov/government/city- de3artments/development-services/planning/planning-commission/. The existing zoning ordinance can also be viewed at
https://library.municode.com/ca/hollister/codes/code of ordinances?nodeld=TIT17ZO or accessed directly from the Planning Division webpage should anyone wish to.

PLANNED DEVELOPMENTS
The purpose of a planned development is to allow greater flexibility than would otherwise be allowed by the zoning ordinance in exchange for innovative or interesting designs or layout, the preservation of open space, or other amenity.

The City's regulations for planned developments can be found in Section 17.24.240 of the zoning ordinance (Attachment 6). The existing regulations are confusing, vague, are technically only allowed for very specific projects (Section 17.24.240 (B)), and contains errors (for example it requires conformance with the zoning ordinance and the purpose of a Planned Development is to allow something that would otherwise not be allowed due to the inherit rigidity of a zoning ordinance). Additionally, this section conflicts with the provisions of Section 17.14.010, Residential Performance Overlay Zoning District. As written the planned development section of the zoning ordinance is difficult for staff to understand and enforce in a consistent manner.

What is a Planned Development?
A planned development is a flexible zoning device that redefines the land uses or development standards that would otherwise apply to the property if the standards of the Zoning District in which the property is located were applied. Cities typically allow a developer to request a planned development in order to foster innovative designs and creativity, affordable housing, or other amenity that benefits the residents of the City.

Cities typically allow planned developments to apply for relief of:
• Change in the otherwise requires setbacks;
• Change in the required Minimum Lot Size;
• Increase in Lot Coverage;
• Reduction in Open Space requirements;
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• Allowance for Dwelling Unit Types that would otherwise not be permitted in the Zoning District (i.e. a triplex in the R1 District);
• Establish the uses for the site (uses that are not identified in the zoning ordinance or additional uses that may be complimentary such as a neighborhood market in a R1 district);
• Spread the required density throughout the project site (rather than on a parcel by parcel basis) for large developments where the developer would like to include a mixture of housing types; or
• Plan for a large development.

For example, under the application of the development standards in the R1, Low Density Residential Zoning District, each parcel must be a minimum of 5,000 square feet. The only type of housing allowed is single family detached dwellings and SB9 Two -Unit Residential Developments Under the strict application of the requirements of the zoning ordinance, the following is a typical example of the layout/design of a development.

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By requesting a planned development, an applicant can design a residential project which meets the established density but is laid out in a unique way, allows a variety of dwelling types, or allows for smaller dwellings to be constructed on a site. For example, approval of a planned development could allow for a development in which the front yard setbacks are reduced in order to allow porches and rear or alley facing garages to activate the street as shown on the example below.

Figure 2: Small Front Yard Setback with Detached/Rear Garages Packet Pg. 228

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By requiring a rezone process for planned development, a city can also allow for greater flexibility in uses. For example, if a large development in the R1, Low Density Residential, Zoning District wanted to allow for small neighborhood serving commercial uses, or a private neighborhood park with cafes or food stands, a planned development would be a way to achieve that. With a rezone, an applicant who wishes to establish a use that isn't currently listed on the list of approved uses for the site, but which may be appropriate, can request approval of the use through a planned development. An example of this could be an auction yard in the M1 District, an auction yard is not on the list of allowed uses, but could be appropriate in the M1. As uses change and new uses move into the City, the zoning ordinance may not be consistent with changing trends and a planned development may be a way to allow a unique use on an appropriate property.

CURRENT PROCESS FOR A PLANNED DEVELOPMENT IN HOLLISTER
In 2008, the zoning ordinance was completely overhauled. Prior to 2008, the City required a rezone for planned developments. Several planned unit developments were approved with a rezone and they are noted on the City's Zoning Map.

In 2008, the City modified how the City allowed Planned Unit Developments. In an effort to encourage residential development in the City, the City modified the zoning ordinance to allow a Performance Overlay Zoning District. Most residential properties that are annexed into the City have a Performance Overlay. An applicant may only request a planned development for properties designated for residential uses.

The purpose of the Performance Overlay was to allow lot sizes that are smaller than what is typically allowed. For example, a parcel that is zoned Low Density Residential/Performance Overlay can have a minimum lot size of 2,500 square feet. Properties zoned Low Density Residential (only) have a minimum lot size of 5,000 square feet. The intention of the Overlay Zoning District was to encourage higher density in the City (by reducing the minimum lot size, more dwelling units can be constructed) and to allow these properties to bypass a rezone to allow smaller lots.

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As amended in 2008, requests for a Planned Unit Development were processed as a Conditional Use Permit and are typically approved for properties that have been zoned Performance Overlay. The Conditional Use Permit is reviewed and approved or denied by the Planning Commission. Please refer to Attachment 7 for a list of recently approved planned developments in the City.

Approval of the Performance Overlay requires an applicant to rezone the property (application materials and a filing fee on the Fee Schedule based on prezoning or rezone) and then later apply for a Conditional Use Permit (application and filing fee of $9,021.40) to allow for any modifications to setbacks or other development standards. The zoning ordinance then requires the approval of a Performance Agreement for each parcel located within a development prior to construction of the development (application and a filing fee of $16,265.83). This Agreement must be reviewed and approved by the City Council (see Section 17.14.010.B.2) and recorded on each lot as a deed restriction. This means that a developer who wishes to annex their property with the Performance Overlay must zone the property Performance Overlay, then receive approval of a Conditional Use Permit for a planned development (due to the smaller lot sizes allowed under this Overlay, the standard development regulations are unlikely to be met) and then go to City Council for a Performance Agreement and subsequent deed restriction prior to construction.

ANALYSIS
The existing Section 17.24.240, Planned Development Permits will be repealed and replaced with Chapter 17.66, Planned Developments. The draft Chapter was reviewed by the City Attorney's office. The new Chapter 17.66, Planned Developments, is described in detail below.

Section 17.66.010 - Purpose
This section provides the purpose of the planned developments in the City.

Section 17.66.020 - Applicability
As proposed, planned developments will be allowed for any project on land that is over one acre in size, including residential and non-residential projects, which will expand the availability of this flexible zoning tool to more projects/sites within the City (current regulations only allow a planned development for residential developments).

As proposed, an applicant requesting annexation into the City can also use the planned development designation for their project. This would allow a person requesting annexation to propose the development regulations for their project site at the time of the prezoning and would eliminate the need for a future planned development request and a Performance Agreement with the City Council. This would lead to thoughtful, well planned annexations and would also eliminate the need for multiple permitting requirements for applicants. The process currently required by the zoning ordinance also requires a significant amount of time and application types and the proposed modifications are aimed at saving the applicant money and time.

Section 17.66.030 — Planned Development Established
This section regulates how planned developments will be created in the City. A planned development will be established in the City through the following:
• A rezone of the project area to "Planned Development." Packet Pg. 230

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• The establishment of an underlying zoning district for the site This allows the planned development to "fall back" on the regulations of the zoning district where the planned development is silent.
• The Zoning Map will be amended to show the property as zoned Planned Development and will note the application number of the planned development to allow staff and the public to easily find the regulations for the property.

The rezoning of a property to "Planned Development" rather than allowing a Conditional Use Permit is a more appropriate way to regulate planned developments. As previously discussed, the purpose of a Conditional Use Permit is to review a proposed use and place conditions on said use to ensure that the use does not negatively impact the surrounding area. If a use failed to comply with the provisions of a Conditional Use Permit, the City can revoke the permit and require the use to cease operations.

During prior study sessions, the Planning Commission determined that a Conditional Use Permit was not an appropriate path to approval of a planned development. By allowing a rezone of a property to planned development, the City can expand the planned development zoning tool to allow for modifications to land uses, mixture of uses, layout, and development standards (discussed in greater detail below). As mentioned above, in addition to providing greater flexibility to applicants in the City, staff believes the proposed rezone will also save project applicants time and money by removing the need for a rezoning, planned development approval, subsequent performance agreement, and deed restrictions.

Section 17.66.040 — Land Use
A planned development can include the following uses:
• Uses that are established for the underlying zoning district; • Any use which is not listed in the zoning ordinance, but which the Planning Commission and City Council determines is compatible with the General Plan land use designation for the site;
• Accessory uses; and
• Multi -family structures in a single family residential development (the project area must meet the density required in the General Plan).

The current planned development section of the zoning ordinance does not allow an applicant to establish the uses for the site. They are required to follow the density of the general plan and uses within the residential land use category.

Section 17.66.050 — Density
This section details how the density of a planned development is calculated. Density will be calculated for all properties and the corresponding density of the General Plan. The planned development is not required to ensure that development on each parcel meets the permitted density range, rather the planned development can distribute the total number of allowed dwelling units or non-residential space throughout the project area if the required density range is met project -wide.

Section 17.66.060 — Deviations Allowed for Planned Developments Packet Pg. 231

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This section details the deviations from the required development standards of the underlying zoning district of the planned development. The following deviations are the same as the existing Section 17.24.240:
• Height;
• Minimum lot size and lot area per dwelling unit;
• Lot width, depth, and frontage;
• Setbacks;
• Open space requirements;
• Lot Coverage and Floor Area Ratio;
• Dwelling unit type.

Staff has also included a provision to allow other deviations as proposed by the applicant and deemed appropriate by the Planning Commission and City Council as well as shared parking within the planned development (requires a parking study).

Section 17.66.070 — Substantial Public Benefit in Exchange for a Planned Development Each planned development must contain one or more substantial public benefit(s) in exchange for any modifications from standard zoning requirements. A "Substantial Public Benefit" means a project feature not otherwise required by the Municipal Code or General Plan that provides a unique feature or benefit to the City or the neighborhood in which it is located. Examples of Substantial Public Benefits include but are not limited to: enhanced architectural designs; public plazas, courtyards, open space, and other public gathering places that provide opportunities for people to informally meet and gather; commercial uses in a residential development that serve the neighborhood (excluding properties that are designated as Mixed -Use in the General Plan); recreational facilities; public art; community space(s); parks; contribution to or construction of significant off -site public improvements or community space; the preservation, restoration, or rehabilitation of a historic resource; and/or the protection of natural resources.

Section 17.66.080 — Prohibited within a Planned Development A planned development may not be used to request deviations from any of the following regulations:
• The lowering or increasing of the residential density required by the General Plan land use designation(s) for the property.
• The elimination of a commercial component for projects designated as Mixed -use in the General Plan.
• Downtown Mixed -Use zoning requirements.
• For properties with a General Plan land use designation of Medium or High Density Residential or Mixed -Use, the Planned Development may not be used to modify the allowed dwelling unit types to allow single family residences, unless the Planning Packet Pg. 232

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Commission and City Council determine that single family residences may be allowed as an Accessory Use and where the density of the project meets the required density of the General Plan.
• For the reduction of any design standards or guidelines adopted by the City. • For the reduction of design or preservation requirements for any structure that is designated as historical.

Section 17.66.090 — Planned Development Application
This section establishes the application and submittal requirements for a planned development request. Staff is not recommending any changes to the current application fee ($8,392 + the citywide planning fee).

Section 17.66.100 — Review of a Rezoning to Planned Development The Planning Commission will review a proposed planned development rezone during a noticed public hearing. The Planning Commission will then make a recommendation to the City Council on the proposed rezone. The City Council will then make the final decision on the planned development during a public hearing.

Section 17.66.110 — Ordinance Format
This section of the zoning ordinance establishes the format staff will use when writing the ordinance establishing a planned development for a project.

Section 17.66.120 — Required Findings
This section establishes new findings for planned developments. The findings staff and the Planning Commission must make to recommend approval of a planned development are as follows:

A. The Planned Development is consistent with the General Plan, applicable specific plan, and other plans and policies adopted by the City Council.

B. The planned development will not be detrimental to the health, safety, or welfare of persons residing or working in or adjacent to the planned development or to the general welfare of the city.

C. The proposed development is superior to the development that could occur under the requirements of the zoning ordinance for the underlying zoning designation.

D. That the location, design, size, and uses will result in an attractive, well designed, and beneficial environment for living, shopping, or working.

E. The proposed planned development will be harmonious and compatible with existing and potential development in the surrounding area.

F. The planned development would result in a thoughtful, well -planned development which has been designed to meet current and future needs of residents and workers within the City.

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G. The planned development will provide one or more Substantial Public Benefits, as defined by Section 17.66.070, in exchange for any modifications from standard zoning requested by the planned development.

Section 17.66.130 — Modifications to an Approved Planned Development This Section has been written to address how the City will review any requested changes to planned developments. Where necessary, the Development Services Director by administrative action may clarify the provisions or make minor adjustments to a planned development. An example of this type of modification could include a revision to a parking requirement if the zoning ordinance is modified to reduce the parking requirements for a specific use and the older, stricter parking requirement is in the planned development. Another potential modification could be the replacement of all windows within a development with a new design if the planned development required a specific type of window and if those windows were no longer available.

Should a person request a minor modification to a planned development (i.e. a parking requirement is requested for a use and is not established by the planned development), the Planning Commission, by means of a planned development minor modification may approve minor amendments to a planned development with a finding that the amendment substantially complies with and does not materially change the provisions, intent, or development capacity of the applicable planned development. This would allow an applicant to request a minor change prior to construction. For example, an applicant may request a rezone to planned development and may establish a front yard setback in the planned development. Once plans are drawn up, the applicant may realize that the established setback needed to be modified. In that case, the applicant may request approval of the minor change from the Planning Commission rather than having to amend the entire ordinance and receive approval from the City Council. The minor modification could be reviewed by the Planning Commission at the same time as a Site and Architectural Review and no additional time or hearings would be required.

Additionally, at any time the Development Services Director or Planning Commission may refer a modification request to a different decision -making body if desired.

All amendments that change the provisions or intent of the planned development, increases the development potential of the site, changes the required Substantial Public Benefit, or substantially change the proposed land use map may be requested by submitting an application in the same manner and process as the initial request.

APPLICATION FEES
Staff is not proposing a change to the Planned Development Fee at this time (currently $9,021 total). With the implementation of the new chapter and clear requirements, staff believes staff time related to the review and path to approval will remain the same as the existing process.

The proposed ordinance also includes two pathways for modifications to an approved planned development. Staff is recommending that the City Council approve two new fees related to the modifications. Without these new fees, an applicant requesting a modification would not be required to pay a fee and the City would therefore be required to subsidize the cost of processing the application. Council review and consideration of proposed application fees will occur at a subsequent Council meeting.

CONCLUSION
The Planning Commission has reviewed the permit review process in the City and planned developments during several study sessions. The Planning Commission has provided staff with Packet Pg. 234

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direction on how planned developments should be reviewed in the future and other potential modifications to the zoning ordinance related to these changes.

The proposed new Chapter 17.66, Planned Developments, has been prepared with direction from the Planning Commission. By requiring a rezone for planned developments, the new regulations will expand the use of planned developments within the city and will be allowed for prezoning, residential, and commercial properties. The new regulations clearly outline the review process and submittal requirements to assist applicants and staff with the processing of these requests. By utilizing a rezoning method, staff will also be able to clearly track and obtain these requirements when necessary to assist property owners and residents, thereby ensuring a quick and complete response to questions. Staff believes that the new process will result in more attractive, well planned projects and will provide a unique opportunity to all developers in the City, provide a clear path to approval, and could result in time and money savings for applicants.

Staff removed planned development from Phase II of the zoning ordinance overhaul because staff has identified several projects that could benefit from the new regulations. Phase II comprises an overhaul of the existing permits and permit processing in the City and is not related to any modifications required by the draft General Plan. The existing process for approval of a planned development and a performance overlay is difficult to follow and the existing planned development regulations lack clarity and are difficult to understand. Completion of Phase II of the overhaul is not anticipated until February/March 2024 and staff believes that a new process is necessary prior to completion of Phase II. Any modifications to the zoning ordinance, which are likely to affect the remaining sections of the zoning ordinance, required by the General Plan will be incorporated into Phase III of the Overhaul.

CITY COUNCIL OPTIONS:

The City Council has the following options at tonight's meeting:

1. Introduce an ordinance of the City Council of the City of Hollister amending the zoning ordinance to repeal Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.66, Planned Developments and schedule a second reading and adoption of the ordinance.

2. Deny the ordinance amending the zoning ordinance to repeal Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.66, Planned Developments.

3. Continue the hearing and direct staff to provide additional information or clarification.

Staff is recommending Option 1.

FINANCIAL IMPACT: $0.

CEQA: The proposed zoning ordinance amendments are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines because the proposed amendments will not result in any direct physical change to the City and therefore the proposed amendments are not a project under CEQA and are exempt from further review (CEQA Guidelines Section 15378). Future development of a site will be subject to the requirements of CEQA. Any future projects for development of a site within the City are required to be reviewed under CEQA.

ATTACHMENTS:

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1. 1. February 9, 2023 Planning Commission Study Session Staff Report (without Attachments)

2. 2. March 9, 2023 Planning Commision Study Session Staff Report (without Attachments)

3. 3. May 11, 2023 Planning Commission Study Session Staff Report (without Attachments)

4. 4. May 25, 2023 Planning Commission Staff Report (without Attachments)

5. 5. Resolution 2023-16 Reccomending Approval of Chapter 17.66, Planned Developments

6. 6. Existing Chapter 17.24.240, Planned Development Permits

7. 7. Recently Approved Planned Developments in Hollister

8. 8. 17.14.010 Residential Performance Overlay Zoning District

9. Item E. 1 Public Comment

THIS REPORT WAS REVIEWED BY THE INTERIM CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
r
David Mirrione, Interim City Manager
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ORDINANCE NO. 1237

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AMENDING THE ZONING ORDINANCE TO REPEAL SECTION 17.24.240, PLANNED DEVELOPMENT PERMITS, AND REPLACE WITH A NEW CHAPTER, CHAPTER 17.66, PLANNED

DEVELOPMENTS
WHEREAS, the City occasionally initiates an amendment to the Zoning Ordinance for clarity, to improve permit processes, and to meet the needs of the community; and WHEREAS, the Planning Commission held two noticed Study Sessions on February 9 and March 9, 2023 to discuss planned developments in the City and potential changes to existing planned development regulations; and
WHEREAS, the Planning Commission held a noticed Study Session on May 11, 2023 to review the draft Chapter 17.66, Planned Developments; and
WHEREAS, on May 25, 2023, the Planning Commission held a duly noticed public hearing on the proposed amendments to the Zoning Ordinance during which all interested persons were heard and adopted Planning Commission Resolution No. 2023-17 recommending the City Council amend the Zoning Ordinance to repeal Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.66, Planned Developments; and WHEREAS, a Staff Report was submitted to the City Council of the City of Hollister recommending approval of the proposed Zoning Ordinance Amendment; and WHEREAS, the City Council held a noticed public hearing on the proposed Zoning Ordinance Amendment on June 20, 2023, at which time all interested parties had the opportunity to be heard; and
WHEREAS, proper noticed of said hearing was given as required by law; and WHEREAS, the City Council did hear and consider all said reports, recommendations, and testimony herein and used its independent judgement to evaluate the proposed amendments; and
WHEREAS, the City desires to repeal Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.66, Planned Developments.

WHEREAS, the City Council of the City of Hollister hereby makes the following findings related to the Zoning Ordinance Amendments as required by Section 17.02.120.D of the Municipal Code:

1. The proposed amendment is consistent with the General Plan because: the proposed planned development regulations have been Drepared to allow for thouchtful, well Manned developments that provide new and different housing types and non-residential developments and meet the intent of Land Use Element ;LU) Goal LU1; the proposed regulations will allow Manned developments for non-residential uses and therefore may attract new uses and commercial developments to the City in accordance with Goal LU 5 and Policy LU5.4; the new planned development regulations will help facilitate orderly and balanced crowth within the City as recuired by Goal LU6; will allow for phasinc within a Droject area and orderly growth as recuired by Policy LU6.2 and 6.3; will allow for diverse development including housing types in accordance with Goal LU7; all planned developments will be recuired to conform to the General Plan Land Use Packet Pg. 237

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Designation density established for each project site; and does not conflict with the draft policies of the 2040 Hollister General Plan which is currently under review.

2. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare because: the proposed planned development regulations will provide clear language on the review process, submittal recuirements, and findings related to planned development approvals; planned developments will recuire a substantial Dublic benefit in order to allow deviations from the development standards of the Zoning Ordinance; the proposed planned development process will allow for thoughtful well planned developments in the City; by allowing a planned development for residential and non-residential Dro'ects within the City, the City will expand the use of this flexible zoning tool which could result in more diverse developments within the City; a rezone for a planned development is a more appropriate way to approve a development in which the otherwise applicable standards of the Zoning Ordinance are waived.

3. The public necessity, general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations in the General Plan because: y repealing Section 17.24.240 and replacing with a new Chapter, Chapter 17.66, Planned Developments, the City will provide a clear, easy to use method for determining the recuirements to gain approvals of Planned developments; recuiring a rezone for a Planned development is a more appropriate path for approval because the planned development allows for deviations from the recuirements of the Zoning Ordinance; and the recuirement for a substantial public benefit for a Dianned development will ensure that planned developments enhance the City and provide a benefit in exchange for a deviation from the development standards in the Zoning Ordinance.

WHEREAS, the City Council of the City of Hollister hereby makes the following finding regarding the California Environmental Quality Act: the proposed Zoning Ordinance amendments are exempt from the recuirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines because the proposed amendments will not result in any direct physical change to the City and therefore the proposed amendments are not a project under CEQA and are exempt from further review (CEQA Guidelines Section 15378). Future development of a site will be sub'ect to the recuirements of CEQA. Any future projects for development of a site within the City are rec uired to be reviewed under CEQA.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby ordain as follows:

Section 1: The Hollister Municipal Code is hereby amended to repeal Section 17.24.240, Planned Development Permits and replace with Chapter 17.66, Planned Developments to read as follows:

Chapter 17.66 Planned Developments

17.66.010 - Purpose
The purpose of this Chapter is to:

A. Establish a Planned Development Zoning District through which one or more properties are planned as a unit with the layout, design, uses, and development standards specifically tailored to the project.

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B. Allow for high quality development with maximum flexibility where strict application of the requirements of the Zoning Ordinance would result in a less desirable project.

C. Maintain consistency with, and implement the provisions of, the General Plan and applicable specific plans.

D. Ensure orderly and thoughtful planning of development projects to create a more desirable use of the land, ensure coordinated development of the project area, and result in a better physical environment.

E. Allow freedom of design, layout, and uses to obtain developments which enhance the community by surpassing the type of development required by strict application of the Zoning Ordinance.

F. Ensure that all Planned Developments provide a Substantial Public Benefit in exchange for relief from the strict application of the Zoning Ordinance.

17.66.020 - Applicability
An applicant may apply for a Planned Development Permit for any of the following:

A. Any project where the total project area is over one acre in size within the city limits.

B. As a prezone for any project that is requesting annexation into the City of Hollister.

17.66.030 — Planned Development Established
A. Rezone. Each Planned Development shall be established through a rezone (or prezone where applicable) to "Planned Development."
B. Underlying Zoning Designation. Each Planned Development shall also have an underlying zoning district established within the Planned Development. The proposed underlying zoning district shall be compatible with the General Plan land use designation for the property. If more than one land use designation exists for the project area, each land use designation shall have an accompanying underlying zoning district.

C. Zoning Map. Following approval of a Planned Development rezone, the boundary of the Planned Development shall be indicated on the Zoning map. Each Planned Development shall be noted on the map as being zoned Planned Development ("PD") and the Planned Development application number shall be noted on the map (for example PD 2023-1).

17.66.066 — Land Use
The following uses are permitted in a Planned Development:

A. Established in the Underlying Zoning District. Any use permitted or conditionally permitted in the underlying zoning district or in any applicable specific plan.

B. Uses Not Listed. Any use or uses that are not included in the Zoning Ordinance but are compatible with the intent and design of the Planned Development and are compatible with the General Plan use designation of the site, as determined by the Planning Commission and City Council.

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C. Accessory Uses. Any Accessory Uses, as defined in 17.02.020, that meet the needs of the residents or employees within a Planned Development and would otherwise not be permitted by the underlying zoning district.

D. Multi -Family within a Single -Family Development. Multi -family dwelling units are allowed within any property designated as single family if the total number of dwelling units project -wide falls within the density range allowed by the General Plan.

17.66.050 — Density
A. General Plan Density. The total number of dwelling units to be constructed within the project area shall be within the density range allowed by the General Plan land use designation(s) for the project area. The Planned Development may not increase or decrease the total number of dwelling units required to be constructed by the General Plan.

B. Density Calculation. Project density shall be calculated by using the total size (acreage) of each General Plan land use designation within the Planned Development and calculating the maximum density allowed for each land use. The Planned Development is not required to ensure that development on each parcel meets the permitted density range, the Planned Development can distribute the total number of allowed dwelling units or non-residential space throughout the project area if the required density range is met project wide.

C. More Than One Land Use Designation. For projects in which there are more than one General Plan land use designation, the total maximum density shall be the maximum density allowed for each land use designation.

17.66.060 — Deviations Allowed for Planned Developments A. Development Standards. A Planned Development may establish development standards that are different from the standards established for the underlying zoning designation(s) for the project area. Each land use designation within the project area may establish its own development standards. The following deviations from the underlying zoning designation development standards are allowed within a Planned Development:

1. Height;

2. Minimum lot size and lot area per dwelling unit;

3. Lot width, depth, and frontage;

4. Setbacks;

5. Open space requirements; and

6. Lot Coverage and Floor Area Ratio.

B. Dwelling Types. The Planned Development may allow dwelling types that are not otherwise permitted under the site's land use designation except for single family in a multi -family designation.

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C. Other. The relief of any provision of the Zoning Ordinance that would preclude the construction of a desirable development, as determined by the Planning Commission and City Council.

D. Shared Parking. A Planned Development, if supported by a parking study, may establish shared parking within the Planned Development at the discretion of the Planning Commission and City Council.

17.66.070 — Substantial Public Benefit in Exchange for a Planned Development Substantial Public Benefit. Each Planned Development must contain one or more Substantial Public Benefit(s) in exchange for any modifications from standard zoning requirements. A "Substantial Public Benefit" means a project feature not otherwise required by the Municipal Code or General Plan that provides a unique feature or benefit to the City or the neighborhood in which it is located. Examples of Substantial Public Benefits include but are not limited to:
enhanced architectural designs; public plazas, courtyards, open space, and other public gathering places that provide opportunities for people to informally meet and gather; commercial uses in a residential development that serve the neighborhood (excluding properties that are designated as Mixed -Use in the General Plan); recreational facilities; public art; community space(s); parks; contribution to or construction of significant off -site public improvements or community space; the preservation, restoration, or rehabilitation of a historic resource; and/or the protection of natural resources.

17.66.080 — Prohibited within a Planned Development
Prohibitions. A Planned Development may not be used to request deviations from any of the following regulations:

A. The lowering or increasing of the residential density required by the General Plan land use designation(s) for the property.

B. The elimination of a commercial component for projects designated as Mixed -use in the General Plan.

C. Downtown Commercial Mixed -Use zoning requirements.

D. For properties with a General Plan land use designation of Medium or High Density Residential or Mixed -Use, the Planned Development may not be used to modify the allowed dwelling unit types to allow single family residences, unless the Planning Commission and City Council determine that single family residences may be allowed as an Accessory Use and where the density of the project meets the required density of the General Plan.

E. For the reduction of any design standards or guidelines adopted by the City.

F. For the reduction of design or preservation requirements for any structure that is designated as historical.

17.66.090 - Planned Development Application
Applications for a Planned Development shall include:

A. Application Form. The project applicant shall submit an application on a form prescribed by the City, with all the information listed on the form as part of the request for a Planned Packet Pg. 241

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Development. If the property is not under a single ownership, all owners must sign the application, and a map showing the extent of ownership shall be submitted with the application.

B. Site Plan. Plans or maps depicting the existing topography, on -site structures, natural features, mature trees, and other significant vegetation and drainage patterns. The map shall also show the project boundaries and all properties within one hundred feet of the site boundary.

C. Conceptual Land Use Plan. A map showing the location of each land use proposed within the site (including housing types where applicable), open space and common areas, community facilities, and the location of any use or structure that is proposed as a Substantial Public Benefit.

D. Density. A plan showing the total site area, total density range for each General Plan land use designation for residential and non-residential designations, maximum numbers of residential units by type, and maximum non-residential square footage for each use.

E. Project Narrative. A written project narrative which includes the following information:

1. A description of the proposed project, existing and proposed General Plan land use designation(s), and the proposed underlying zoning district(s).

2. Existing use of the project area and site conditions.

3. A statement of the project objectives, how the proposed project will comply with General Plan goals and policies for the applicable land use designation, and how the project complies with the purpose of this Chapter.

4. An overview of the proposed development plan including land use, densities, residential dwelling types, open space, and parking.

5. A description of the project access and circulation.

6. A description of how the proposed development is superior to development that could occur with the strict application of the standards required by the underlying zoning designation, and how it will provide a Substantial Public Benefit.

7. The amount (in square feet or acres) and percentage of site area that will be dedicated for all land uses including residential, commercial, office, industrial, open space, recreational facilities and amenities, public facilities, and public buildings. The maximum number of dwelling units, by type, and the maximum square footage of all non-residential uses must be provided.

8. A written statement of proposed uses including permitted, conditionally permitted, prohibited, and Accessory Uses for each land use type.

9. All development regulations that apply within the project, including:
a. Density;
b. Minimum lot size and dimensions;
c. Maximum building coverage including lot coverage and Floor Area Ratio; Packet Pg. 242

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d. Minimum setbacks;
e. Maximum building heights;
f. Landscaping;
g. On -site parking; and
h. Other items as recommended by Staff and deemed appropriate by the Planning Commission and City Council.

F. Design Guidelines. Design standards and guidelines for the construction of future structures within the project area including landscaping, screening, and architectural design.

G. Phasing. For Planned Developments that are to be constructed in phases, a phasing plan must be provided.

H. Parking. Where a Planned Development includes shared parking or a use which is not listed in the Zoning Ordinance, a parking study prepared by a qualified preparer shall be submitted which establishes the parking requirement for the new use or reviews the proposed shared parking plan.

17.66.100 - Review of a Rezoning to Planned Development A. Approval Process. An application for a rezone to Planned Development shall be reviewed by the Planning Commission during a public hearing. The Planning Commission will then make a recommendation to the City Council. The City Council will then act upon the request for a rezone to a Planned Development.

B. Planning Commission Review.

1. Hearing. Following the receipt of a complete application for a Planned Development, the Planning Commission shall conduct a noticed public hearing for consideration of the application.

2. Decision. The Planning Commission shall take one of the following actions during the public hearing:
a. The Planning Commission shall make a written recommendation to the City Council to approve, approve with conditions or modification, or deny the application as submitted and shall make written findings supporting the reason for this recommendation in accordance with Section

17.66.120.
b. If the Planning Commission is unable to make a recommendation to the City Council because the application fails to receive a majority vote resulting in no action being taken by the Planning Commission, the application shall be forwarded directly to the City Council.

C. City Council Review.

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1. Public Hearing Required. After the Planning Commission provides a recommendation on the application for a Planned Development, the City Council shall hold a noticed public hearing on the application, shall consider the recommendations of the Planning Commission, and shall hear evidence presented for and against the proposed Planned Development rezone.

2. Decision. Following the conclusion of the public hearing, the City Council shall approve, modify, or reject the Planning Commission's recommendation. If the City Council requires the applicant to make a substantial modification not previously considered by the Planning Commission, the revised Planned Development shall be referred back to the Planning Commission for a written recommendation prior to consideration of the amendment. Prior to the approval of a Planned Development rezone, the City Council shall make written findings in accordance with Section 17.66.120 supporting the reason for approving the Planned Development rezone.

3. Second Reading. If the Planned Development is approved by the City Council, a second reading of the Ordinance will take place at the following City Council meeting. The Ordinance establishing the Planned Development rezone will not take effect until 30 days following the second reading.

17.66.110 — Ordinance Format
Each Ordinance for a Planned Development shall establish the following:

A. Purpose and intent of the Planned Development;
B. Underlying zoning district(s);
C. A list of all permitted, conditionally permitted, and prohibited uses within the Planned Development;
D. All applicable design themes, guidelines, or standards; and E. All site development regulations including:

1. Density;

2. Setbacks;

3. Maximum height;

4. Maximum Lot Coverage or Floor Area Ratio;

5. Open Space requirements;

6. Accessory Uses or structures;

7. Landscaping and screening;

8. Parking and loading; and
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9. Other items recommended by Staff and deemed appropriate by the Planning Commission and City Council

17.66.120 - Required Findings
An application for a Planned Development rezone shall be approved if the following findings can be made, in addition to the required findings of other permits required for the project.

A. The Planned Development is consistent with the General Plan, applicable specific plan, and other plans and policies adopted by the City Council.

B. The Planned Development will not be detrimental to the health, safety, or welfare of persons residing or working in or adjacent to the Planned Development or to the general welfare of the city.

C. The proposed development is superior to the development that could occur under the requirements of the Zoning Ordinance for the underlying zoning designation.

D. That the location, design, size, and uses will result in an attractive, well designed, and beneficial environment for living, shopping, or working.

E. The proposed Planned Development will be harmonious and compatible with existing and potential development in the surrounding area.

F. The Planned Development would result in a thoughtful, well -planned development which has been designed to meet current and future needs of residents and workers within the City.

G. The Planned Development will provide one or more Substantial Public Benefits, as defined by Section 17.66.070, in exchange for any modifications from standard zoning requested by the Planned Development.

17.66.130 — Modifications to an Approved Planned Development A. Clarification. Where necessary, the Development Services Director by administrative action may clarify the provisions or make minor adjustments to conform to current provisions of the Zoning Ordinance, to refer to relevant sections of the Zoning Ordinance (where necessary) and to approve minor modifications to a Planned Development that do not conflict with the development standards, density, or intent of the Planned Development.

B. Minor Amendments. The Planning Commission, by means of a Planned Development minor modification may approve minor amendments to a Planned Development with a finding that the amendment substantially complies with and does not materially change the provisions, intent, land use, or development capacity of the applicable Planned Development.

C. Major Amendment. All amendments that change the provisions or intent of the Planned Development, increase the development potential of the site, change the required Substantial Public Benefit, or substantially change the proposed land use map may be requested by submitting an application in the same manner and process as the initial request.

17.66.166 — Further Development Review
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Prior to the construction of any structure or the establishment of any use within the Planned Development, all necessary permits as required by the Zoning Ordinance and the Planned Development shall be obtained.

Section 2: Severability. Should any provision, section, paragraph, sentence, or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, or word of this ordinance as hereby adopted shall remain in full force and effect.

Section 3: Effective Date. This ordinance shall take effect and be in force thirty (30) days from and after its final passage.

Section 4: Publication. Within fifteen (15) days after passage the City Clerk shall cause this ordinance to be published on time in the Free Lance, a newspaper of general circulation.

INTRODUCED at a regular City Council meeting on the 7th day of August, 2023.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 21st day of August, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk
APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
Mary F. Lerner, City Attorney
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I, JENNIFER WOODWORTH, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Ordinance No. 1237 is an original Ordinance, or true and correct copy of a City Ordinance, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on the 21st day of August, 2023, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Hollister this City Council day of August, 2023.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister
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SUBJECT:

STAFF PLANNER:

ATTACHMENTS:

Planning Commission
Study Session Staff Report
February 9, 2023
Study Session Item 2
Zoning Ordinance Overhaul — City of Hollister — A discussion of potential amendments to the Zoning Ordinance related to Planned Developments.

Eva Kelly, Interim Planning Manager (831) 636-4360
Erica Fraser, AICP, Consulting Planner

1. Section 17.24.200, Planned Development

2. Planned Development Requirements in Other Jurisdictions

3. Example of a Planned Development Ordinance — Salinas

4. Example of a Planned Development Ordinance — Morgan Hill RECOMMENDATION: Provide Staff with Direction
PURPOSE OF THE STUDY SESSION:

Tonight's discussion with the Planning Commission is intended to aid Staff in the preparation of a new Chapter in the Zoning Ordinance related to Planned Development. As part of Phase IIB of the Zoning Ordinance Overhaul, Staff will completely overhaul Chapter 17.24, Administration and Enforcement, which includes Section 17.24.240, Planned Developments.

Phase IIB of the Zoning Ordinance Overhaul includes a rewrite of each permit type and section to clearly identifying what types of projects require review, modifications for clarity, and to make this Section more user friendly for residents as well as developers. Amendments to Zoning Ordinances are common. Cities regularly amend and update their Zoning Ordinance for clarification, for consistency with State Law, to address changing conditions within the City, for consistency with best practices for Planning, and to change the permit types and projects that require permits prior to Building Permit.

A brief discussion of Planned Developments and questions to the Planning Commission are provided in this Staff Report. All questions are also included at the end of the Staff Report to guide discussion during the Study Session.

PLANNED DEVELOPMENTS
The purpose of a Planned Unit Development is to allow greater flexibility than would otherwise be allowed by the Zoning Ordinance, in exchange for innovative or interesting designs or layout, the preservation of open space or other amenity.

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Staff Report
Planned Developments

The City's regulations for Planned Developments can be found in Section 17.24.240 (Attachment 1) of the Zoning Ordinance. The regulations for Planned Developments must be completely rewritten as part of the Overhaul. The existing regulations are confusing, vague, are technically only allowed for very specific projects (Section 17.24.240 (B)), and contains errors (for example it requires conformance with the Zoning Ordinance and the purpose of a Planned Development is to allow something that would otherwise not be allowed due to the inherit rigidity of a Zoning Ordinance). Additionally, this Section conflicts with the provisions of Section 17.14.120, Residential Performance Overlay Zoning District. As written, the Planned Development section of the Zoning Ordinance is difficult for Staff to understand and enforce in a consistent manner.

Conditional Use Permit
In the City of Hollister, a Planned Development is approved by means of a Conditional Use Permit.

A Conditional Use Permit is intended to provide relief from a strict application of the requirements of the Zoning Ordinance in order to provide flexibility in the permitted (by right) uses within a City. Typically, a City will provide a list of permitted uses in each Zoning District as well as uses which are not permitted by right, but where a Conditional Use Permit may be obtained in order to operate the use (or business) For example, in the General Commercial (GC) Zoning District, a convenience store is a permitted use, but a convenience store with gas pumps is a conditional use. Section 17.24.200(A) of the Hollister Zoning Ordinance states:
"Purpose. Conditional Use Permits are intended to allow for activities and uses that are unique and whose effect on the surrounding environment cannot be determined prior to being proposed for a particular location. At the time of Application, a review of the location, design, configuration, and potential impacts of the proposed use shall be conducted by comparing it to established development standards."
By requiring a Conditional Use Permit, the City can review the layout, parking, design, operational characteristics, and impacts to surrounding uses. The City can then include Conditions of Approval as part of the project approval to ensure that the use operates as proposed and to minimize impacts on surrounding uses. Should the use fail to operate in a manner consistent with the approval, the City can revoke or modify the Conditional Use Permit (Section 17.24.130(H)).

The City of Hollister requires a Conditional Use Permit for Planned Developments. Planned Developments in Hollister are currently only allowed on properties which are designated for residential uses and allows:
• Flexibility in development standards (i.e. setbacks); • Encourages the development of affordable housing;
• Modifications to density (although the density proposed must comply with the General Plan); Planned Development requests in the City of Hollister are typically only allowed for relief from setbacks or open space due to the wording of the existing Ordinance.

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Staff Report
Planned Developments

The use of a Conditional Use Permit to allow for a reduction in development standards is not consistent with the stated purpose of Conditional Use Permits (Section 17.24.200(A)) and is not consistent with best practices in the State of California (see Section below for more information). As part of the overhaul, Staff is recommending that Planned Developments be established through a different method.

Question 1: Is a Conditional Use Permit appropriate for Planned Development requests? Rezoning or Other Permits
Staff conducted a review of 22 jurisdictions in the surrounding area to determine how each jurisdiction reviews Planned Developments (Attachment 1). Of the 22 jurisdictions surveyed, only 1 processes Planned Developments as a Conditional Use Permit. The remaining require the development be rezoned to Planned Development. The designation of the property once rezoned varies with some jurisdictions rezoning the site to a combining district (i.e. PD/R1) and some simply rezoning to PD.

Planned Development is typically a type of zoning classification. As a zoning mechanism, Planned Developments typically apply to the development of a specific area (there can be more than one parcel) where it is beneficial to the City to permit zoning regulations in a more flexible manner than those established under the base zoning district, and to grant diversification in the location and number of structures and other site qualities.

There are advantages in requiring a rezone for Planned Developments. With a rezone, the City can allow for greater flexibility in design and use (see following discussion topic for more information) than can be allowed currently.

Additionally, if a property is rezoned to Planned Development, the City's Zoning Map is updated accordingly. The map would then show the site has been rezoned to a Planned Development. This is a signal that different development standards or uses apply to the property.

By noting the Planned Development zoning and Planned Development number, the City can provide better identification of the exact regulations for a particular property. Without a rezone, the map just notes the zoning district for the property (i.e. R1, Low Density Residential). For example, the KB Cluster Lots which were just approved with a Planned Development is shown as RWF on the Zoning Map. No indication is given on the map that there are different development standards for this property. A homeowner or designer would not be aware that development standards exist, separate from the standards in the West Fairview Road Specific Plan.

Staff suggests that Planned Developments are approved in conjunction with a Rezone that will rezone an entire development to Planned Development (PD 2023-1 for example). This would provide clarity, empower property owners and designers to easily determine the regulations that apply to their property, and assist Staff in future information requests (Staff can answer questions regarding development standards more accurately and more quickly if the property is rezoned). Additionally, by requiring a rezone, the City of Hollister will be consistent with the method by which Planned Developments are approved in the surrounding areas. Developers who currently work in the City of Hollister also develop projects in neighboring cities where a rezone is required, so the process would be familiar.

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Staff Report
Planned Developments

The disadvantage of requiring a rezone for a Planned Development is that the process will take longer than it does currently. In order to rezone a property to Planned Development, the Planning Commission would have to make a recommendation to the City Council, the City Council would then make a decision on approving or denying the request. Staff anticipates that this will add approximately one month onto the total timeline for project approval if the project includes a Planned Development request.

Staff has included two sample Ordinances showing how these cities regulate Planned Developments.

These two examples are included as Attachments 3 and 4.

Question 2: Should the Planned Development Section of the Zoning Ordinance be revised so that a Planned Development is approved through a rezone?
Commercial and Industrial Uses
Currently, Planned Developments are only allowed for residential uses. As shown in the attached spreadsheet (Attachment 1), some cities allow a Planned Development rezone for residential and non- residential uses. A Zoning Ordinance is inherently inflexible by nature. By allowing a Planned Development on non-residential properties as well as residential properties, the City can allow for greater flexibility in uses (as long as the City determines that the proposed use is consistent with the General Plan). This would allow a project to come forward in which the proposed use is not clearly allowed by the Zoning Ordinance (for example a training facility and residential dwellings on one site).

Staff would like to allow Planned Development zoning and allow for greater flexibility for residential and non-residential uses. Staff believes that this would be beneficial to the community and would allow for greater flexibility in design and allow for uses which might not otherwise be allowed by the City, but is a use that the City determines is appropriate for the site.

This change would also allow development proposals to consider mixed -uses in areas where they might otherwise not be allowed (such as allowing for neighbor -hood scale commercial development in an standard residential zone, for example). All Planned Developments would be subject to discretionary approval so proposals can be regulated and appropriately tailored to the unique situation, but this would open opportunities to advance other City and State policies, such as encouraging complete streets and neighborhoods, improving walkability and access to services in development, among other ideas.

Question 3: Should the City allow for greater flexibility in the "uses" allowed? Question 4: Should the City allow Planned Developments on land designated for Commercial? Industrial?
PLANNING COMMISSION QUESTIONS:

Staff has prepared the following questions to guide the discussion of modifications to the Planned Development Section of the Zoning Ordinance.

Question 1: Is a Conditional Use Permit appropriate for Planned Development requests? Packet Pg. 251

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Staff Report
Planned Developments

Question 2: Should the Planned Development Section of the Zoning Ordinance be revised so that a Planned Development is approved through a rezone?
Question 3: Should the City allow for greater flexibility in the "uses" allowed? Question 4: Should the City allow Planned Developments on land designated for Commercial? Industrial? Question 5: Are there any additional modifications the Planning Commission would like included in the draft Planned Development Ordinance?
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SUBJECT:

Planning Commission
Study Session Staff Report
March 9, 2023
Study Session Item 1
Zoning Ordinance Overhaul — City of Hollister — A discussion of potential amendments to the Zoning Ordinance related to Planned Developments.

This is the second time the Planning Commission has discussed potential changes to the City's Planned Development Ordinance.

STAFF PLANNER: Eva Kelly, Interim Planning Manager (831) 636-4360 Erica Fraser, AICP, Consulting Planner
ATTACHMENTS:

1. February 9, 2023 Planning Commission Study Session Staff Report (without attachments)

2. Link to the YouTube Recording of the February 9, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=SLExQY1wvbE)

3. Existing Planned Development Section of the Zoning Ordinance (Section 17.24.240)

4. Planned Development Reviews in Surrounding Jurisdictions

5. Existing Performance Overlay Zoning District Section of the Zoning Ordinance (Section 17.14.010)

6. Recently Approved Planned Unit Developments in Hollister RECOMMENDATION: Provide Staff with Direction
PURPOSE OF THE STUDY SESSION:

Tonight's discussion with the Planning Commission is intended to aid Staff in the preparation of a new Chapter in the Zoning Ordinance related to Planned Developments. As part of Phase IIB of the Zoning Ordinance Overhaul, Staff will completely overhaul Chapter 17.24, Administration and Enforcement, which includes Section 17.24.240, Planned Developments.

On February 9, 2023, the Planning Commission discussed potential modifications to Section 17.24.240 and provided direction to Staff (Attachment 1). A recording of the meeting can be viewed at https://www.youtube.com/watch?v=SLExQY1wvbE (this discussion starts at 1 hour and 19 minutes). At the meeting, the majority of the Planning Commission determined:

1. A Conditional Use Permit is not appropriate for Planned Development requests;

2. A rezone is a better way to approve these requests (but need additional information); Packet Pg. 253

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Staff Report
Planned Developments

3. The City should allow for flexibility in allowed uses in a Planned Development; and

4. A Planned Development should also be allowed for residential and commercial uses.

Based on direction from the Planning Commission and questions asked during the meeting, Staff has prepared this Staff Report to provide further information, answer questions raised during the Study Session and ask for additional direction from the Planning Commission.

PLANNED DEVELOPMENTS
The purpose of a Planned Unit Development is to allow greater flexibility than would otherwise be allowed by the Zoning Ordinance, in exchange for innovative or interesting designs or layout, the preservation of open space, or other amenity.

The City's regulations for Planned Developments can be found in Section 17.24.240 (Attachment 3) of the Zoning Ordinance. The regulations for Planned Developments must be completely rewritten as part of the Overhaul. The existing regulations are confusing, vague, are technically only allowed for very specific projects (Section 17.24.240 (B)) and contains errors (for example it requires conformance with the Zoning Ordinance and the purpose of a Planned Development is to allow something that would otherwise not be allowed due to the inherit rigidity of a Zoning Ordinance). Additionally, this Section conflicts with the provisions of Section 17.14.010, Residential Performance Overlay Zoning District. As written the Planned Development section of the Zoning Ordinance is difficult for Staff to understand and enforce in a consistent manner. At the February 9, 2023 Study Session, the Planning Commission agreed that the existing Section needs to be rewritten.

What is a Planned Unit Development
A Planned Unit Development is a flexible zoning device that redefines the land uses or development standards that would otherwise apply to the property if the standards of the Zoning District in which the property is located were applied. Cities typically allow a developer to request a Planned Development in order to foster innovative designs and creativity, affordable housing, or other amenity that benefits the residents of the City.

Cities typically allow Planned Unit Developments to apply for relief of:
• Change in the otherwise requires setbacks;
• Change in the required Minimum Lot Size;
• Increase in Lot Coverage;
• Reduction in Open Space requirements;
• Allowance for Dwelling Unit Types that would otherwise not be permitted in the Zoning District (i.e. a triplex in the R1 District);
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ill
Staff Report
Planned Developments

• Establish the uses for the site (uses that are not identified in the Zoning Ordinance or additional uses that may be complimentary such as a neighborhood market in a R1 district); or • Plan for a large development.

For example, under the application of the development standards in the R1, Low Density Residential Zoning District, each parcel must be a minimum of 5,000 square feet. The only type of housing allowed is single family detached dwellings and duplexes (recent change in the Zoning Ordinance). Under the strict application of the requirements of the Zoning Ordinance, the following is a typical example of the layout/design of a development.

Figure 1: Standard Lot Grid Pattern with a 5,000 Square Foot Minimum Lot Size I.1 L J. L.
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By requesting a Planned Development, an Applicant can design a residential project which meets the established density but is laid out in a unique way, allows a variety of dwelling types, or allows for smaller dwellings to be constructed on a site. For example, approval of a Planned Development could allow for a cluster development in which the houses are located on smaller lots (for example 2,500 square feet) and surrounded by landscaping. In the following example, the lot size would be smaller than what would be required in the Low Density Residential Zoning District.

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Staff Report
Planned Developments

Figure 2: Example of a Small Lot Cluster Development
By allowing a rezone, the City can also allow for greater flexibility in uses. For example if a large development in the R1, Low Density Residential, Zoning District wanted to allow for small neighborhood serving commercial uses, or a private neighborhood park with cafes or food stands, a Planned Development would be a way to achieve that. With a rezone an Applicant who wishes to establish a use that isn't currently listed on the list of approved uses for the site, but which may be appropriate, can request approval of the use through a Planned Development. An example of this could be an auction yard in the M1 District, an auction yard is not on the list of allowed uses, but could be appropriate in the M1.

As uses change and new uses move into the City, the Zoning Ordinance may not be consistent with changing trends and a Planned Development may be a way to allow a unique use on an appropriate property.

Staff is recommending that the Planned Unit Development exceptions listed on page 2-3 be allowed in the new Planned Development Ordinance.

Question 1: Should the list of typical exceptions noted on pages 2-3 be allowed in Hollister? Are there any additional exceptions the Planning Commission would like to include in the Ordinance? Planned Unit Develo
3ments in Hollister
In 2008, the Zoning Ordinance was completely overhauled. Prior to 2008, the City required a rezone for Planned Developments. Several Planned Unit Developments were approved with a rezone and they are noted on the City's Zoning Map.

In 2008, the City modified how the City allowed Planned Unit Developments. In an effort to encourage residential development in the City, the City modified the Zoning Ordinance to allow a Performance Overlay Zoning District. Most residential properties that are annexed into the City have a Performance Overlay.

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Staff Report
Planned Developments

The purpose of the Performance Overlay was to allow lot sizes that are smaller than what is typically allowed. For example, a parcel that is zoned Low Density Residential/Performance Overlay can have a minimum lot size of 2,500 square feet. Properties zoned Low Density Residential (only) have a minimum lot size of 5,000 square feet. The intention of the Overlay Zoning District was to encourage higher density in the City (by reducing the minimum lot size, more dwelling units can be constructed) and to allow these properties to bypass a rezone to allow smaller lots (more information on the Overlay is in the following Section).

As amended in 2008, requests for a Planned Unit Development were processed as a Conditional Use Permit. This change was likely due to the allowances in the Performance Overlay Zoning District. As discussed during the previous Study Session, this Section of the Zoning Ordinance is confusing and difficult to implement. This Section will be completely rewritten to meet the City's goal of amending the existing Zoning Ordinance so that it is easier to use.

Performance Overlay Zoning District
Section 17.14.010 of the Zoning Ordinance establishes the rules and regulations for the Performance Overlay Zoning District (Attachment 5). The Performance Overlay is an overlay zoning designation. That means that the underlying allowed uses and requirements are those established by the base zoning designation (for example, R1, Low Density Residential). By having an overlay designation, a City can allow for more flexible, or more strict (for example, a Historic Preservation Overlay), regulations.

As previously discussed, when the Zoning Ordinance was amended in 2008, the City established the Performance Overlay District to allow for a reduced lot size and a wider range of allowed housing types to encourage higher densities within the City. The Overlay, however, requires the approval of a Performance Agreement for each parcel located within a development. The Agreement must be reviewed and approved by the City Council (see Section 17.14.010.8.2) and recorded on each lot as a deed restriction. This is not currently being enforced by the City.

The Performance Overlay also has conflicting requirements which makes it difficult for Staff to consistently implement this Section of the Zoning Ordinance.

Staff is recommending that the Performance Overlay Zoning District be phased out. The requirements within this Zoning District are similar to what is typically required under a Planned Development.

Applicants who wish to annex into the City can request a Planned Development zoning designation as their prezone instead of using the Performance Overlay. This should make the path to development approval much quicker and they may also be able to save on application fees.

Recently Approved Planned Unit Developments
Staff conducted a review of the Planned Unit Developments approved since 2015 (Attachment 6). As shown on Attachment 6, most of the Planned Unit Development requests were for properties located within the Performance Overlay Zoning District. The reason for the request varies, however, in most cases the request was to allow housing types (duettes, triplexes, and fourplexes) that are otherwise not permitted within the base zoning designation. These housing types, however, are allowed under the Performance Overlay with a Performance Agreement. The second most requested reason for the Planned Packet Pg. 257

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Unit Development request was to allow a 5 foot side yard setback (instead of the required 6 foot setback).

In one case, there are several approved Planned Unit Development requests related to Roberts Ranch which also required a rezone. A Planned Development rezone could have been done for the entire property to allow for a mixture of housing types and setbacks as appropriate.

Other requests include single family in the Medium Density Residential Overlay and a reduction of the open space requirements.

Staff Pro
oosed Modifications to the Zoning Ordinance (Performance Overlay) Staff is recommending that the Performance Overlay Zoning District be phased out and removed from the Zoning Ordinance. The existing Section is confusing and requires a Performance Agreement to be approved by the City Council and noted as a deed restriction on each parcel. Staff believes that the overall reason for allowing this Overlay District was to allow a path forward for a Planned Development that would not require a rezone, but still required the City Council to weigh in on this request. To follow this path established in the Zoning Ordinance is cumbersome.

As of today, there are only a few parcels that are vacant and zoned Performance Overlay. When a development request is proposed for these parcels, if the proposal includes a Planned Unit Development request, the rezone and Planned Unit Development can be reviewed at the same time. If the proposed development does not include a Planned Unit Development, the City can rezone the property to remove the Overlay at our own expense. This path would increase overall processing time by one month.

For projects in which are currently developed and in the Performance Overlay, Staff is recommending that the City initiate a rezone of these properties to Planned Development. That would allow the City to formally recognize the Planned Unit Development "rules" established for these properties and note the appropriate Zoning District on the Zoning Map (for example, the KB project recently approved would be designated Planned Development PD 2022-7 on the map). This could begin after the Zoning Ordinance Overhaul is complete.

Staff is also recommending a complete overhaul of the Planned Development Section of the Zoning Ordinance (as discussed during the last meeting). This would include requiring a rezone and allow a Planned Development for residential, commercial, and industrial properties.

For properties who wish to annex into the City, the Applicant may request approval of a Planned Unit Development rezone at that time (if the Zoning Ordinance is amended to require a rezone as previously discussed). By prezoning to a Planned Development, the applicant would not be required to rezone their property later. This would essentially take the place of what the Performance Overlay does today, but would include the rules for the development (i.e. setbacks, lot size, housing types).

Question 2: Should the City eliminate the Performance Overlay? If the Performance Overlay is not phased out from the Zoning Ordinance, Staff will begin requiring developers to conform to the requirements of this Section (for properties that are zoned with the Overlay). That means that a request for a Planned Unit Development for a property with this Overlay will Packet Pg. 258

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be required to enter into a Performance Agreement for the project, which would require review and approval by the City Council.

Questions 3: Should the City rezone developed properties within the Performance Overlay to Planned Development in the future?
Staff Recommended Modifications to the Zoning Ordinance (Planned Developments) Staff is also recommending a complete overhaul of the Planned Development Section of the Zoning Ordinance (as discussed during the last meeting). This would include a rezone and allow a Planned Development for residential, commercial, and industrial properties. The Chapter would be re -written to include the following:
• Applicability (can be used for residential, commercial, and industrial properties); • Intent of the Planned Unit Development (definition of a Planned Development); • Application Submittal Requirements;
• Approval/Rezone Process;
• Required Findings;
• Process for Amendments to the PD.

A rezone requires the Planning Commission to make a recommendation to the City Council regarding the request. Staff anticipates that this modification could extend the total project review time by one month.

However, the change to a rezone allows the City to offer expand this opportunity to additional sites and to allow additional uses. Additionally, for annexations, a prezone to a Planned Development may save time during the development review process (following annexation).

The anticipated process for a Planned Unit Development rezone would be:

1. Preliminary Review. All Applicants are invited to apply for a preliminary review of their project prior to formal submittal of their application for feedback (no change to existing).

2. Application Submittal. When ready, the Applicant applies for the permits they are requesting (for example a Planned Development and a Tentative Map). The Applicant is required to fill out an Application Form and pay the appropriate fees. For a Planned Development, the existing fee is $8,392 + the citywide planning fee and Staff is not requesting a modification to that fee. The submittal requirements will be listed in the new Planned Development Section of the Zoning Ordinance and Staff will also include a handout on the City's website which explains the review process, requirements, and submittal requirements (a draft of this handout will be available for review by the Planning Commission with the draft Ordinance).

3. Completeness Review. Once submitted, the proposed project is routed to the City's Packet Pg. 259

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Development Review Committee (DRC) for review. All comments and items necessary to deem the project complete are then sent to the Applicant by the Planning Division. The City has 30 days from the submittal of an Application to review the project and transmit completeness items to the Applicant. It is up to the Applicant to resubmit and address all concerns by the City and submit all items necessary to deem the Application complete.

4. Application Resubmittal. Once the Application is resubmitted, the project is re-routed to the City's DRC. The Planning Division will then make a determination on if the project is complete and if there are any remaining comments regarding the proposal.

5. Application Complete. Once the Application is deemed complete, any required environmental review is prepared, and design comments are addressed, Staff prepares the project for review.

6. Planning Commission Public Hearing. The Planning Commission will then review the proposed project during a noticed Public Hearing. The Planning Commission will then act on any requests that are under the purview of the Planning Commission (i.e. Tentative Map). The Planning Commission would then make a recommendation to the City Council on the Planned Development Rezone.

7. City Council Public Hearing. The City Council would then review the proposed project and the recommendation by the Planning Commission during a noticed Public Hearing. Action by the City Council is final.

Questions 4: Should the City modify the Planned Development Section as discussed above? Are there any additional items the Planning Commission would like to see in the revised Planned Development Section?
Planning Commission Recommended Changes
During the Planning Commission Study Session on February 9, 2023, the Planning Commission asked Staff to look into potential additional changes to the Zoning Ordinance in order to reduce the need for a Planned Development. Staff has identified potential changes that could be made based on our review of approved Planned Unit Developments in the City (Attachment 6).

For properties that are within the Low Density Residential Performance Overlay, the most requested development standard modifications are:
• Modify the required interior side yard setback from 6 feet to 5 feet; • Lot Size; and
• Allow a mixture of housing types.

The Zoning Ordinance currently requires an interior setback of six feet. The Planning Commission could choose to modify Table 17.04-3 Residential Standards for Yards to allow a five foot interior side yard setback. This would have eliminated the need for a Planned Development in many cases. A five foot Packet Pg. 260

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interior side yard setback is consistent with requirements in many cities.

Question 5: Should the interior side yard setback for properties located in the Low Density residential Zoning District be changed from 6 feet to 5 feet?
Many requests for a Planned Development in the Low Density/Performance Overlay (R1-L/PZ) include a request to allow for a variety of housing types. Allowed housing types can be found in Table 17.04-1 — Residential Land Uses and Permit Requirements. In the R1-L/PZ only single family detached and duplexes/ are allowed (recent change due to SB 9). Many requests the City is seeing for a Planned Development is to also allow triplexes and fourplexes, which are not currently allowed.

Question 6: Should the City allow a wider variety of housing types in the R1/PZ? If so, what types? With regards to Lot Size, the Performance Overlay does allow for a reduction in the minimum lot size with the approval of a Performance Agreement. The Planning Commission has approved several requests for a reduction in the minimum lot size for all residential zoning districts (Attachment 6). The design of residential developments is changing to meet demands. New residential developments are typically located on smaller lots with smaller front and rear yards. New single-family developments are also two- story. This differs from typical pre -2000 development where single family dwellings were located on large lots, with large front and rear setbacks, and a one-story house.

The Planning Commission could choose to reduce or eliminate the minimum lot size for residential properties. The Planning Commission could also choose to add a new residential zoning district, for example Small Lot Residential, which could specifically allow for a smaller lot size consistent with the types of single family developments the City is approving.

The above modifications could be made at the same time that Phase IIB of the Overhaul is implemented.

Should the Planning Commission wish to defer making a decision on potential changes to the Zoning Ordinance related to lot size, housing type, and setbacks, a more detailed discussion could be conducted during Phase III of the overhaul, including a discussion of the development standards in surrounding jurisdictions.

Questions 6: Would the Planning Commission like any changes to the development standards in the Zoning Ordinance as part of Phase II of the Overhaul? If so, which development standards (i.e. lot size, setbacks, housing type) would the Planning Commission like to be modified? Are there any other modifications the Planning Commission would like included with Phase II? PLANNING COMMISSION QUESTIONS:

Staff has prepared the following questions to guide the discussion of modifications to the Planned Development Section of the Zoning Ordinance.

Question 1: Should the list of typical exceptions noted on pages 2-3 be allowed in Hollister? Are there any additional exceptions the Planning Commission would like to include in the Ordinance? Packet Pg. 261

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Question 2: Should the City eliminate the Performance Overlay? Questions 3: Should the City rezone developed properties within the Performance Overlay to Planned Development in the future?
Questions 4: Should the City modify the Planned Development Section as discussed above? Are there any additional items the Planning Commission would like to see in the revised Planned Development Section? Question 5: Should the interior side yard setback for properties located in the Low Density residential Zoning District be changed from 6 feet to five feet?
Questions 6: Would the Planning Commission like any changes to the development standards in the Zoning Ordinance as part of Phase II of the Overhaul? If so, which development standards (i.e. lot size, setbacks, housing type) would the Planning Commission like to be modified? Are there any other modifications the Planning Commission would like included with Phase II? Packet Pg. 262

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SUBJECT:

Planning Commission
Study Session Staff Report
May 11, 2023
Item 1
Zoning Ordinance Overhaul (ZOA 2023-3) — City of Hollister — An amendment to the Zoning Ordinance repealing Section 17.24.240 of the Zoning Ordinance and replacing with a new chapter, Chapter 17.40, Planned Developments.

STAFF PLANNER: Eva Kelly, Interim Planning Manager (831) 636-4360 Erica Fraser, AICP, Consulting Planner
ATTACHMENTS:

1. Draft Chapter 17.40, Planned Developments

2. February 9, 2023 Planning Commission Study Session Staff Report (without attachments)

3. Link to the YouTube Recording of the February 9, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=SLExQY1wvbE)

4. March 9, 2023 Planning Commission Study Session Staff Report (without attachments)

5. Link to the YouTube Recording of the March 9, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=TVDdhsRAg0U)

6. Existing Planned Development Section of the Zoning Ordinance (Section 17.24.240)
RECOMMENDATION: Provide Staff with Direction

BACKGROUND
The Planning Commission has reviewed potential modifications to how the City regulates planned developments during two Study Sessions. On February 9, 2023, the Planning Commission discussed how the City currently reviews planned development requests and potential ways to approve planned developments (Attachment 2). A recording of the Study Session can be viewed at https://www.youtube.com/watch?v=SLExQY1wvbE (discussion starts at 1 hour and 19 minutes). During the meeting, the Planning Commission had several questions and comments regarding planned developments.

Staff brought the matter back to a Study Session on March 9, 2023 (Attachment 4) to provide additional information and receive additional direction from the Planning Commission on how the City should Packet Pg. 263

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regulate planned developments moving forward. The recording of this Study Session can be viewed at httas:// www.youtube.com/watch?v=TVDdhsRAg0U (the item starts at minute 48).

PURPOSE OF THE STUDY SESSION
Based on direction received from the Planning Commission during the two Study Sessions, Staff has prepared a draft Planned Development Ordinance. Tonight the Planning Commission will review the proposed amendment to the Zoning Ordinance to repeal the existing Section 17.24.240, Planned Development Permits, and replace with a new Chapter, Chapter 17.40, Planned Developments.

ANALYSIS
The existing Section 17.24.240, Planned Development Permits will be repealed and replaced with Chapter

17.40, Planned Developments. The draft Chapter was reviewed by the City Attorney's office. The new Chapter 17.40, Planned Developments, is described in detail below.

Section 17.40.010 - Purpose
This Section provides the purpose of the planned developments in the City.

Section 17.40.020 - Applicability
Planned Developments will be allowed for any project on land that is over one acre in size, including residential and non-residential projects. The current regulations only allow a Planned Development for residential projects. An applicant requesting annexation into the City can also use the planned development designation for their project.

Section 17.40.030 — Planned Development Established
This Section regulates how planned developments will be created in the City. A planned development will be established in the City through the following:
• A rezone of the project area to "Planned Development." • The establishment of an underlying zoning district for the site This allows the planned development to "fall back" on the regulations of the zoning district where the planned development is silent.
• The Zoning Map will be amended to show the property as zoned Planned Development and will note the application number of the planned development to allow Staff to easily find the regulations for the property.

Section 17.40.040 — Land Use
A planned development can include the following uses:

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• Uses that are established for the underlying zoning district; • Any use which is not listed in the zoning ordinance, but which the Planning Commission and City Council determines is compatible with the General Plan land use designation for the site; • Accessory uses; and
• Multi -family structures in a single family residential development (the project area must meet the density required in the General Plan).

The current planned development section of the Zoning Ordinance does not allow an applicant to establish the uses for the site. They are required to follow the density of the general plan and uses within the residential land use category.

Section 17.40.050 — Density
This Section details how the density of a planned development is calculated. Density will be calculated for all properties and the corresponding density of the General Plan. The Planned Development is not required to ensure that development on each parcel meets the permitted density range, rather the Planned Development can distribute the total number of allowed dwelling units or non-residential space throughout the project area if the required density range is met project wide.

Section 17.40.060 — Deviations Allowed for Planned Developments This Sections details the deviations from the required development standards of the underlying zoning district of the planned development. The following deviations are the same as the existing Section

17.24.240:
• Height;
• Minimum lot size and lot area per dwelling unit;
• Lot width, depth, and frontage;
• Setbacks;
• Open space requirements;
• Lot Coverage and Floor Area Ratio;
• Dwelling unit type.

Staff has also included a provision to allow other deviations as proposed by the applicant and deemed appropriate by the Planning Commission and City Council as well as shared parking within the planned development (requires a parking study).

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Section 17.40.070 — Substantial Public Benefit in Exchange for a Planned Development Each Planned Development must contain one or more substantial public benefit(s) in exchange for any modifications from standard zoning requirements. A "Substantial Public Benefit" means a project feature not otherwise required by the Municipal Code or General Plan that provides a unique feature or benefit to the City or the neighborhood in which it is located. Examples of Substantial Public Benefits include but are not limited to: enhanced architectural designs; public plazas, courtyards, open space, and other public gathering places that provide opportunities for people to informally meet and gather; commercial uses in a residential development that serve the neighborhood (excluding properties that are designated as Mixed -Use in the General Plan); recreational facilities; public art; community space(s); parks; contribution to or construction of significant off -site public improvements or community space; the preservation, restoration, or rehabilitation of a historic resource; and/or the protection of natural resources.

Section 17.40.080 — Prohibited within a Planned Development A Planned Development may not be used to request deviations from any of the following regulations:
• The lowering or increasing of the residential density required by the General Plan land use designation(s) for the property.
• The elimination of a commercial component for projects designated as Mixed -use in the General Plan.
• Downtown Mixed -Use zoning requirements.
• For properties with a General Plan land use designation of Medium or High Density Residential or Mixed -Use, the Planned Development may not be used to modify the allowed dwelling unit types to allow single family residences, unless the Planning Commission and City Council determine that single family residences may be allowed as an Accessory Use and where the density of the project meets the required density of the General Plan.
• For the reduction of any design standards or guidelines adopted by the City. • For the reduction of design or preservation requirements for any structure that is designated as historical.

Section 17.40.090 — Planned Development Application
This Section establishes the application and submittal requirements for a planned development request.

Staff is not recommending any changes to the current application fee ($8,392 + the citywide planning fee).

Section 17.40.100 — Review of a Rezoning to Planned Development The Planning Commission will review a proposed planned development rezone during a noticed public hearing. The Planning Commission will then make a recommendation to the City Council on the proposed Packet Pg. 266

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rezone. The City Council will then make the final decision on the planned development during a public hearing.

Section 17.40.110 — Ordinance Format
This Section of the Zoning Ordinance establishes the format Staff will use when writing the Ordinance establishing a planned development for a project.

Section 17.40.120 — Required Findings
This Section establishes new findings for planned developments. The findings Staff and the Planning Commission must make to recommend approval of a planned development are as follows:

A. The Planned Development is consistent with the General Plan, applicable specific plan, and other plans and policies adopted by the City Council.

B. The Planned Development will not be detrimental to the health, safety, or welfare of persons residing or working in or adjacent to the Planned Development or to the general welfare of the city.

C. The proposed development is superior to the development that could occur under the requirements of the Zoning Ordinance for the underlying zoning designation.

D. That the location, design, size, and uses will result in an attractive, well designed, and beneficial environment for living, shopping, or working.

E. The proposed Planned Development will be harmonious and compatible with existing and potential development in the surrounding area.

F. The Planned Development would result in a thoughtful, well -planned development which has been designed to meet current and future needs of residents and workers within the City.

G. The Planned Development will provide one or more Substantial Public Benefits, as defined by Section 17.40.070, in exchange for any modifications from standard zoning requested by the Planned Development.

Section 17.40.130 — Modifications to an Approved Planned Development This Section has been written to address how the City will review any requested changes to Planned Developments. Where necessary, the Development Services Director by administrative action may clarify the provisions or make minor adjustments to a Planned Development.

Should a person request a minor modification to a Planned Development (i.e. a parking requirement is requested for a use not established by the Planned Development), the Planning Commission, by means of a Planned Development minor modification may approve minor amendments to a Planned Development Packet Pg. 267

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with a finding that the amendment substantially complies with and does not materially change the provisions, intent, or development capacity of the applicable Planned Development.

All amendments that change the provisions or intent of the Planned Development, increase the development potential of the site, change the required Substantial Public Benefit, or substantially change the proposed land use map may be requested by submitting an application in the same manner and process as the initial request.

NEXT STEPS
Following tonight's meeting, Staff will incorporate any recommended changes to the Draft Ordinance.

Although Planned Developments are included within Phase II of the Zoning Ordinance Overhaul, Staff will be bringing the Ordinance for review and recommendation prior to the rest of Phase I I . Staff has several projects that are currently under review that could benefit from the revised Ordinance. Additionally, Staff has also identified several projects where the final project outcome could have resulted in a better project with the revised planned development regulations.

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•
SUBJECT:

OLLISTE
Hometown, California
Planning Commission
Staff Report
May 25, 2023
Item 3
Zoning Ordinance Overhaul (ZOA 2023-3) — City of Hollister — An amendment to the Zoning Ordinance repealing Section 17.24.240 of the Zoning Ordinance and replacing with a new chapter, Chapter 17.66, Planned Developments and the establishment of an Application Fee related to modifications of a Planned Development.

STAFF PLANNER: Eva Kelly, Interim Planning Manager (831) 636-4360 Erica Fraser, AICP, Consulting Planner
ATTACHMENTS:

1. Resolution recommending the City Council repeal Section 17.24.240, Planned Development Permits, and replace with a new chapter, Chapter 17.66, Planned Development, and establish an application fee related to planned development modifications, with the new chapter attached as Exhibit A.

2. May 11, 2023 Planning Commission Study Session Staff Report (without attachments).

3. Link to the YouTube Recording of the May 11, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=HSwhkGcdizc)

4. February 9, 2023 Planning Commission Study Session Staff Report (without attachments)

5. Link to the YouTube Recording of the February 9, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=SLExQY1wvbE)

6. March 9, 2023 Planning Commission Study Session Staff Report (without attachments)

7. Link to the YouTube Recording of the March 9, 2023 Planning Commission Study Session
( https://www.youtube.com/watch?v=TVDdhsRAg0U)

8. Existing Planned Development Section of the Zoning Ordinance (Section 17.24.240)
RECOMMENDATION: Recommend City Council Approval

BACKGROUND
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The Planning Commission has reviewed potential modifications to how the City regulates planned developments during two Study Sessions. On February 9, 2023, the Planning Commission discussed how the City currently reviews planned development requests and potential ways to approve planned developments (Attachment 4). A recording of the Study Session can be viewed at httDs:// www.youtube.com/watch?v=SLExQY1wvbE (discussion starts at 1 hour and 19 minutes). During the meeting, the Planning Commission had several questions and comments regarding planned developments and also provided direction for staff on the preparation of regulations.

Staff brought the matter back to a Study Session on March 9, 2023 (Attachment 6) to provide additional information and receive additional direction from the Planning Commission on how the City should regulate planned developments moving forward. The recording of this Study Session can be viewed at httas:// www.youtube.com/watch?v=TVDdhsRAg0U (the item starts at minute 48). The Planning Commission provided direction to Staff related to the preparation of regulations for planned developments during this meeting.

The Planning Commission Reviewed a Draft Ordinance during a Study Session on May 11, 2023. The Planning Commission did not direct Staff to make any modifications to the Ordinance, but did ask for clarification regarding the difference between administrative and minor modifications. Please refer to staff's discussion under "Section 17.66.130 — Modifications to an Approved Planned Development" for additional information regarding the difference between these two permit types and well as revised language included in the Draft Chapter for clarity. The recording of the Study Session can be viewed at https://www.youtube.com/watch?v=HSwhkGcdizc .

All Study Session Staff Reports and attachments can also be viewed or downloaded from the Hollister Planning Commission webpage at https://hollister.ca.gov/government/city-deaartments/development- services/planning/planning-commission/. The existing zoning ordinance can also be viewed at httDs://library.municode.com/ca/hollister/codes/code of ordinances?nodeld=TIT17ZO or accessed directly from the Planning Division webpage should anyone wish to.

As mentioned during the May 11, 2023 Study Session, Staff is bringing the new Planned Development Chapter for review and recommendation prior to the rest of Phase II. Staff has several projects that are currently under review that could benefit from the revised Ordinance. Additionally, Staff has also identified several projects where the final project outcome could have resulted in a better project with the revised planned development regulations.

PLANNED DEVELOPMENTS
The purpose of a Planned Unit Development is to allow greater flexibility than would otherwise be allowed by the Zoning Ordinance, in exchange for innovative or interesting designs or layout, the preservation of open space, or other amenity/public benefit.

The City's regulations for Planned Developments can be found in Section 17.24.240 of the Zoning Ordinance. The existing regulations are confusing, vague, are technically only allowed for very specific projects (Section 17.24.240 (B)) and contains errors (for example it requires conformance with the Zoning Ordinance and the purpose of a Planned Development is to allow something that would otherwise not be Packet Pg. 270

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allowed due to the inherit rigidity of a Zoning Ordinance). Additionally, this Section conflicts with the provisions of Section 17.14.010, Residential Performance Overlay Zoning District. As written the Planned Development section of the Zoning Ordinance is difficult for Staff to understand and enforce in a consistent manner.

What is a Planned Unit Development
A Planned Unit Development is a flexible zoning device that redefines the land uses or development standards that would otherwise apply to the property if the standards of the Zoning District in which the property is located were applied. Cities typically allow a developer to request a Planned Development in order to foster innovative designs and creativity, affordable housing, or other amenity that benefits the residents of the City.

Cities typically allow Planned Unit Developments to apply for relief of:
• Change in the otherwise requires setbacks;
• Change in the required Minimum Lot Size;
• Increase in Lot Coverage;
• Reduction in Open Space requirements;
• Allowance for Dwelling Unit Types that would otherwise not be permitted in the Zoning District (i.e. a triplex in the R1 District);
• Establish the uses for the site (uses that are not identified in the Zoning Ordinance or additional uses that may be complimentary such as a neighborhood market in a R1 district); • Spread the required density throughout the project site (rather than on a parcel by parcel basis) for large developments where the developer would like to include a mixture of housing types; or
• Plan for a large development.

For example, under the application of the development standards in the R1, Low Density Residential Zoning District, each parcel must be a minimum of 5,000 square feet. The only type of housing allowed is single family detached dwellings and duplexes (recent change in the Zoning Ordinance). Under the strict application of the requirements of the Zoning Ordinance, the following is a typical example of the layout/design of a development.

By requesting a Planned Development, an Applicant can design a residential project which meets the established density but is laid out in a unique way, allows a variety of dwelling types, or allows for smaller dwellings to be constructed on a site. For example, approval of a Planned Development could allow for a cluster development in which the houses are located on smaller lots (for example 2,500 square feet) and surrounded by landscaping. In the following example, the lot size would be smaller than what would be Packet Pg. 271

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required in the Low Density Residential Zoning District.

By requiring a rezone process for planned development, a City can also allow for greater flexibility in uses.

For example, if a large development in the R1, Low Density Residential, Zoning District wanted to allow for small neighborhood serving commercial uses, or a private neighborhood park with cafes or food stands, a Planned Development would be a way to achieve that. With a rezone an Applicant who wishes to establish a use that isn't currently listed on the list of approved uses for the site, but which may be appropriate, can request approval of the use through a Planned Development. An example of this could be an auction yard in the M1 District, an auction yard is not on the list of allowed uses, but could be appropriate in the M1. As uses change and new uses move into the City, the Zoning Ordinance may not be consistent with changing trends and a Planned Development may be a way to allow a unique use on an appropriate property.

CURRENT PROCESS FOR A PLANNED DEVELOPMENT IN HOLLISTER
In 2008, the Zoning Ordinance was completely overhauled. Prior to 2008, the City required a rezone for Planned Developments. Several Planned Unit Developments were approved with a rezone and they are noted on the City's Zoning Map.

In 2008, the City modified how the City allowed Planned Unit Developments. In an effort to encourage residential development in the City, the City modified the Zoning Ordinance to allow a Performance Overlay Zoning District. Most residential properties that are annexed into the City have a Performance Overlay. An applicant may only request a Planned Development for properties designated for residential uses.

The purpose of the Performance Overlay was to allow lot sizes that are smaller than what is typically allowed. For example, a parcel that is zoned Low Density Residential/Performance Overlay can have a minimum lot size of 2,500 square feet. Properties zoned Low Density Residential (only) have a minimum lot size of 5,000 square feet. The intention of the Overlay Zoning District was to encourage higher density in the City (by reducing the minimum lot size, more dwelling units can be constructed) and to allow these properties to bypass a rezone to allow smaller lots.

As amended in 2008, requests for a Planned Unit Development were processed as a Conditional Use Permit and are typically approved for properties that have been zoned Performance Overlay. The Conditional Use Permit is reviewed and approved or denied by the Planning Commission.

Approval of the Performance Overlay requires an applicant to rezone the property (application materials and a filing fee on the Fee Schedule based on prezoning or rezone) and then later apply for a Conditional Use Permit (application and filing fee of $9,021.40) to allow for any modifications to setbacks or other development standards. The Zoning Ordinance then requires the approval of a Performance Agreement for each parcel located within a development prior to construction of the development (application and a filing fee of $16,265.83). This Agreement must be reviewed and approved by the City Council (see Section 17.14.010.6.2) and recorded on each lot as a deed restriction. This means that a developer who wishes to annex their property with the Performance Overlay must zone the property Performance Overlay, then received approval of a Conditional Use Permit for a Planned Development (due to the smaller lot sizes allowed under this Overlay, the standard development regulations are unlikely to be met) Packet Pg. 272

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and then go to City Council for a Performance Agreement and subsequent deed restriction prior to construction.

ANALYSIS
Only one change was made following the previous Study Session to review the draft Planned Development Ordinance. The number of the Chapter has been changed from 17.40 to 17.66 to better fit in with the layout of Phase II of the overhaul.

The existing Section 17.24.240, Planned Development Permits will be repealed and replaced with Chapter

17.66, Planned Developments. The draft Chapter was reviewed by the City Attorney's office. The new Chapter 17.66 Planned Developments, is described in detail below.

Section 17.66.010 - Purpose
This Section provides the purpose of the planned developments in the City.

Section 17.66.020 - Applicability
As proposed, planned developments will be allowed for any project on land that is over one acre in size, including residential and non-residential projects, which will expand the availability of this flexible zoning tool to more projects/sites within the City (current regulations only allow a Planned Development for residential developments).

As proposed, an applicant requesting annexation into the City can also use the planned development designation for their project. This would allow a person requesting annexation to propose the development regulations for their project site at the time of the prezoning and would eliminate the need for a future planned development request and a Performance Agreement with the City Council. This would lead to thoughtful, well planned annexations and would also eliminate the need for multiple permitting requirements for applicants. The process currently required by the Zoning Ordinance also requires a significant amount of time and application types and the proposed modifications are also aimed at saving the applicant money and time.

Section 17.66.030 — Planned Development Established
This Section regulates how planned developments will be created in the City. A planned development will be established in the City through the following:
• A rezone of the project area to "Planned Development." • The establishment of an underlying zoning district for the site This allows the planned development to "fall back" on the regulations of the zoning district where the planned development is silent.
• The Zoning Map will be amended to show the property as zoned Planned Development and will note the application number of the planned development to allow Staff to easily find the regulations for the property.

Packet Pg. 273

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Planned Developments

The rezoning of a property to "Planned Development" rather than allowing a Conditional Use Permit is a more appropriate way to regulate Planned Developments. As previously discussed, the purpose of a Conditional Use Permit is to review a proposed use and place conditions on said use to ensure that the use does not negatively impact the surrounding area. If a use failed to comply with the provisions of a Conditional Use Permit, the City can revoke the permit and require the use to cease operations.

During prior Study Sessions, the Planning Commission determined that a Conditional Use Permit was not an appropriate path to approval of a planned development. By allowing a rezone of a property to planned development, the City can expand the planned development zoning tool to allow for modifications to land uses, mixture of uses, layout, and development standards (discussed in greater detail below). As mentioned above, in addition to providing greater flexibility to applicants in the City, Staff believes the proposed rezone will also save project applicants time and money by removing the need for a rezoning to performance overlay, planned development approval, subsequent performance agreement, and deed restrictions.

Section 17.66.040 — Land Use
A planned development can include the following uses:
• Uses that are established for the underlying zoning district; • Any use which is not listed in the zoning ordinance, but which the Planning Commission and City Council determines is compatible with the General Plan land use designation for the site;
• Accessory uses.; and
• Multi -family structures in a single family residential development (the project area must meet the density required in the General Plan).

The current planned development section of the Zoning Ordinance does not allow an applicant to establish the uses for the site. They are required to follow the density of the general plan and uses within the residential land use category.

Section 17.66.050 — Density
This Section details how the density of a planned development is calculated. Density will be calculated for all properties and the corresponding density of the General Plan. The Planned Development is not required to ensure that development on each parcel meets the permitted density range, rather the Planned Development can distribute the total number of allowed dwelling units or non-residential space throughout the project area if the required density range is met project wide.

Section 17.66.060 — Deviations Allowed for Planned Developments This Sections details the deviations from the required development standards of the underlying zoning Packet Pg. 274

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Planned Developments