Agenda packet — Hollister City Council, December 4, 2023 (part 1 of 2)

MAYOR
Mia Casey

COUNCIL MEMBERS
Rick Perez, District 1
Rolan Resendiz, District 2
Dolores Morales, District 3
Tim Burns, District 4

CITY MANAGER
David Mirrione

CITY ATTORNEY
Mary F. Lerner

CITY CLERK
Jennifer Woodworth

POLICE CHIEF
Carlos Reynoso

CITY TREASURER
Gordon Machado

CITY COUNCIL AGENDA
Special and Regular Meeting
December 4, 2023
Closed Session 5:30 PM
Study Session 6:00 PM
Regular Meeting 6:30 PM

CITY OF HOLLISTER

CITY COUNCIL CHAMBERS, CITY HALL
375 FIFTH STREET
HOLLISTER, CA 95023
(831) 636-4300
www.hollister.ca.gov/

SPECIAL MEETING- 5:30 P.M.

A special meeting of the City Council is called at 5:30 P.M. for the purpose of conducting a closed session and a study session with the Hollister Planning Commission at 6:00 P.M.

5:30 P.M. - Closed Session
6:00 P.M. - Joint City Council/Planning Commission Study Session 6:30 P.M. - Regular City Council Meeting

NOTICE TO PUBLIC

Persons who wish to address the City Council are asked to complete a speaker’s card and give it to the City Clerk before addressing the City Council. Those who wish to address the City Council on an agenda item will be heard when the presiding officer calls for comments from the audience. City related items not on the agenda will be heard under the Public Input section of the agenda. Following recognition persons desiring to speak are requested to advance to the podium and state their name and address. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9.

City Council Monday, December 4, 2023 Page 2 of 9

After hearing audience comments, the public portion of the meeting will be closed, and the matter brought to the City Council for discussion.

Requests to make presentations to the City Council should be submitted to the City Clerk’s Office at least ten days before the City Council meeting. It is customary for City staff members to review such matters before the formal presentation so that the City Council may have the benefit of all available data. PowerPoint presentations must be presented to the City Clerk by noon on the day of the City Council meeting.

PUBLIC PARTICIPATION NOTICE
The public may watch the meeting via live stream at:

City of Hollister Website:
http://hollisterca.iqm2.com/Citizens/Default.aspx

Community Media Access Partnership (CMAP):
http://cmaptv.com/watch/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

City of Hollister Facebook Live at:
https://www.facebook.com/cityofhollister

Public Participation:

The public may attend meetings.

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:

https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

CALL TO ORDER
CLOSED SESSION - 5:30 P.M.

Public Comment (limited to any item listed on the Closed Session agenda) Closed Session will be held by the City Council of the City of Hollister to discuss the following matters:

1. CONFERENCE WITH LEGAL COUNSEL - LIABILITY CLAIMS
GOVERNMENT CODE SECTION 54956.95

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Claimants: Don Tong, Stephanie and Kevin Medeiros, Carlos R. Munoz, Mel Nielsen
Agency Claimed Against: City of Hollister

JOINT MEETING OF THE HOLLISTER CITY COUNCIL AND PLANNING COMMISSION- 6:00 P.M.

1. JOINT PLANNING COMMISSION AND CITY COUNCIL STUDY SESSION 2023-2031 HOUSING ELEMENT UPDATE (Development Services)

BRIEF DESCRIPTION: The City Council will hold a joint Planning Commission and City Council study session to review the draft 2023 -2031 Housing Element policies, residential candidate site analysis, and corresponding maps.

RECOMMENDATION: Hold a joint Planning Commission and City Council study session to review the 2023-2031 Housing Element candidate site analysis and corresponding maps and provide direction to staff and consultant (Kimley-Horn).

PLEDGE OF ALLEGIANCE

ROLL CALL

VERIFICATION OF AGENDA POSTING

CLOSED SESSION - REPORT OUT

PROCLAMATIONS/RECOGNITIONS
CERTIFICATE OF RECOGNITION FOR KEN LINDSAY (City Clerk) A. CONSENT ITEMS
All items listed under consent agenda will be enacted by one motion authorizing actions indicated for those items so designated. There will be no separate discussion of these items unless requested by a member of the City Council, a staff member, or a member of the public.

Consent items are numbers: A1 – A14.

1. The minutes of the Special and Regular Meeting of City Council November 20, 2023

2. ORDINANCE NO. 1241 AN ORDINANCE OF THE CITY OF HOLLISTER AMENDING ARTICLE II -PURCHASING OF CHAPTER 3.06 – PROCEDURES FOR SUPPLIES, OF TITLE 3 - REVENUE AND FINANCE, OF THE
HOLLISTER MUNICIPAL CODE (City Clerk)
BRIEF DESCRIPTION: On November 20, 2023, the City Council introduced Ordinance 1241 to amend Article II (“Purchasing”) of Chapter 3.06

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(“Procedures for Supplies, Property, and Services”) of Title 3 (“Revenue and Finance”) of the City of Hollister Municipal Code (“Ordinance”).

RECOMMENDATION: Adopt Ordinance 1241 amending Article II (“Purchasing”) of Chapter 3.06 ("Procedures for Supplies, Property, and Services") of Title 3 ("Revenue and Finance") of the Hollister Municipal Code.

3. CLAIM AGAINST THE CITY - FILED BY SANDRA COPAS (City Clerk) BRIEF DESCRIPTION: Sandra Copas filed a claim against the City on October 20, 2023.

RECOMMENDATION: Deny the claim and authorize staff to send the notice of rejection to the claimant.

4. CLAIM AGAINST THE CITY - FILED BY MANUEL DIAZ (City Clerk) BRIEF DESCRIPTION: Manuel Diaz filed a claim against the City on October 11, 2023.

RECOMMENDATION: Deny the claim and authorize staff to send the notice of rejection to the claimant.

5. RESOLUTION NO. 2023-238 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER APPROVING THE CITY OF HOLLISTER'S INTERNAL AND EXTERNAL LOGO USE POLICY (City Manager)
BRIEF DESCRIPTION: This item will adopt a Resolution approving the Internal and External Logo Use Policy for the City of Hollister.

RECOMMENDATION: Adopt a Resolution approving the City of Hollister’s Internal and External Logo Use Policy.

6. RESOLUTION NO. 2023-239 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER AUTHORIZING COUNCILMEMBER RESENDIZ TO UP TO $2,500 OF CITY COUNCIL BUDGETED FY 23/24 DISCRETIONARY FUNDS FOR THE 2023 LAS POSADAS CELEBRATION EVENTS (City Manager) BRIEF DESCRIPTION: A resolution of the City Council of Hollister authorizing Councilmember Resendez to use up to $2,500 of FY 23/24 City Council budgeted discretionary funds for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano and authorize the City Manager to execute a contract between the City of Hollister and Jovenes de Antano to support these events.

RECOMMENDATION: Adopt a resolution authorizing Councilmember Resendiz to use up to $2,500 of FY 23/24 City Council budgeted discretionary funds for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano and authorize the City Manager to

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execute a contract between the City of Hollister and Jovenes de Antano to support these events.

7. RESOLUTION NO. 2023-240 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AFFIRMING THE CITY OF HOLLISTER’S SUPPORT FOR AN IMMEDIATE CEASEFIRE IN GAZA AND ISRAEL (City Manager)
BRIEF DESCRIPTION: At the November 20, 2023 City Council meeting, the City Council directed staff to bring forward an item calling for a ceasefire to urgently end the current violence in Gaza and Israel.

RECOMMENDATION: Adopt a resolution calling for a ceasefire to urgently end the current violence.

8. RESOLUTION NO. 2023-241 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER REPEALING RESOLUTION NO. 2010-135 WHICH

ESTABLISHED CERTAIN STREETS AND PORTIONS THEREOF AS TRUCK

ROUTES AND APPROVING CERTAIN STREETS OR PORTIONS THEREOF IN THE CITY OF HOLLISTER AS TRUCK ROUTES (Engineering)
BRIEF DESCRIPTION: Consider (1) repealing Resolution No. 2010-135 which established certain streets and portions thereof as truck routes and (2) approving certain streets and portions thereof in the City of Hollister as truck routes.

RECOMMENDATION: Repeal Resolution No. 2010-135 and Adopt a resolution approving the designation of certain streets and portions thereof in the City of Hollister as truck routes.

9. RESOLUTION NO. 2023-242 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HOLLISTER GRANTING ACCEPTANCE OF PUBLIC

IMPROVEMENTS AND APPROVING REDUCTION IN PERFORMANCE BOND FOR WEST OF FAIRVIEW PHASE 1A SUBDIVISION (Engineering) BRIEF DESCRIPTION: This Resolution will grant acceptance of the public improvements installed as part of the West of Fairview Phase 1A subdivision and will approve the bond reduction for the subdivision.

RECOMMENDATION: Adopt a resolution accepting the Public Improvements as constructed in accordance with the approved plans and specifications, as well as approving the bond reduction for such improvements.

10. RESOLUTION NO. 2023-243 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER TO ACCEPT THE PROPOSALS RECEIVED, AWARD A CONTRACT IN THE AMOUNT OF $314,656.13 TO COMMUNITY

TREE SERVICES AND AUTHORIZE THE EXECUTION OF A CONTRACT FOR THE SAN BENITO COUNTY FUEL REDUCTION PROJECT. (Fire)

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BRIEF DESCRIPTION: This resolution will accept the proposals opened on October 9, 2023 and award a contract to Community Tree Services for the San Benito County Fuel Reduction 23/24 Project.

RECOMMENDATION: Adopt a resolution accepting the proposals and awarding the contract to Community Tree Services for the San Benito County Fuels Reduction 23/24 Project.

11. RESOLUTION NO. 2023-244 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER ACKNOWLEDGING HOLLISTER FIRE

DEPARTMENT HAS PERFORMED THE INSPECTIONS OF CERTAIN
OCCUPANCIES REQUIRED ANNUALLY PURSUANT TO SECTION 13146.4

OF THE CALIFORNIA HEALTH AND SAFETY CODE AND ACCEPT THE

COMPLIANCE REPORTING FOR STATE-MANDATED LOCAL PROGRAMS
FOR SENATE BILL NO. 1205 (Fire)
BRIEF DESCRIPTION: A resolution of the City Council of the City of Hollister to acknowledge receipt of a report made by the Fire Chief of the Hollister Fire Department regarding the 2023 inspections of certain occupancies required annually pursuant to Section 13146.4 of the California Health and Safety Code.

RECOMMENDATION: Adopt a resolution authorizing the compliance reporting for state-mandated local programs for Senate Bill No. 1205 pursuant to Section 13146.4 of the Health and Safety Code, relating to fire protection regarding certain occupancies annual inspections.

12. RESOLUTION NO. 2023-245 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY

AND DEBTBOOK FOR VARIOUS FINANCIAL REPORTING SERVICES
(Administrative Services)
BRIEF DESCRIPTION: This resolution will authorize the ratification of a contract amendment between the City and DebtBook for software and other associated services to meet requirements of the Government Accounting Standards Board (GASB) associated with GASB 87 and GASB 96.

The original agreement, effective April 21, 2022, was in the amount of fifteen thousand dollars ($15,000). The amendment is in the amount of eighteen thousand dollars ($18,000). Because of the aggregate value of the original agreement and the proposed amendment, with a grand total of thirty-three thousand dollars ($33,000), City Council approval is required.

RECOMMENDATION: Adopt a resolution authorizing the City Manager to ratify a contract amendment in the amount of eighteen thousand dollars ($18,000), retroactively effective April 21, 2023, with DebtBook for services associated with the implementation of various financial accounting

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requirements, including GASB 87 and GASB 96.

13. RESOLUTION NO. 2023-246 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER RATIFYING THE HOLLISTER PUBLIC WORKS DEPARTMENT APPLICATION FOR THE 2023 MONTEREY BAY AIR

RESOURCES DISTRICT DIESEL ENGINE & EQUIPMENT REPLACEMENT

PROGRAM GRANT TO SUPPLEMENT A PORTION OF THE COST IN
PURCHASING A NEW JCB FORKLIFT (Public Works - Utilities) BRIEF DESCRIPTION: Staff is seeking ratification of an application for the 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program grant to offset a portion of the cost to purchase a new JCB forklift for the City of Hollister Public Works Department.

RECOMMENDATION: Adopt a resolution ratifying the City of Hollister Public Works Department application for the 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program grant.

14. RESOLUTION NO. 2023-247 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER RE-AUTHORIZING CITY MANAGER TO

PURCHASE TWO PATROL VEHICLES AT THE NEW NOT TO EXCEED
PRICE OF $112,000 (Police)
BRIEF DESCRIPTION: This resolution will re-authorize the City Manager to purchase two patrol vehicles that had been previously ordered over a year ago, recently became available, and are being offered to the city at the corrected price.

RECOMMENDATION: Adopt a resolution re-authorizing the City Manager to purchase the available patrol vehicles with existing budgeted funds.

B. CITY OF HOLLISTER AS THE SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY
None.

C. PUBLIC INPUT
This is the time for anyone in the audience to speak on any item not on the agenda and within the subject matter jurisdiction of the council. Speaker cards are available in the lobby, and are to be completed and given to the City Clerk before speaking. When the City Clerk calls your name, please come to the podium, state your name and city for the record, and speak to the City Council. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9. Each speaker will be limited to three (3) minutes with a maximum of 30 minutes per subject. Please note that state law prohibits the City Council from discussing or taking action on any item not on the agenda.

D. PETITIONS, REMONSTRANCES, AND COMMUNICATIONS

1. CITY MANAGER REPORT

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RECOMMENDATION: Receive report from City Manager.

2. TRAININGS AND CONFERENCES

RECOMMENDATION: Receive reports from staff on Training and Conferences.

E. PUBLIC HEARINGS

1. ORDINANCE NO. 1243 AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF HOLLISTER APPROVING ZONING ORDINANCE AMENDMENT
2023-4 TO ADOPT CHAPTER 17.36 INCLUSIONARY HOUSING PROGRAM (Planning)
BRIEF DESCRIPTION: An ordinance to adopt a new Chapter 17.36, Inclusionary Housing Program, into the Zoning ordinance, which would require new residential development to provide a percentage of the total units as affordable housing units.

RECOMMENDATION: Introduce an ordinance to adopt Chapter 17.36 Inclusionary Housing Program, hold a public hearing, and schedule a second reading of the Ordinance for the December 18, 2023 City Council meeting.

F. INTRODUCTION AND ADOPTION OF RESOLUTIONS AND ORDINANCES

1. RESOLUTION NO. 2023-248 CONSIDER AND ADOPT A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF HOLLISTER ADOPTING A

COMMUNITY WORKFORCE AGREEMENT TO BE EXECUTED FOR ALL
FUTURE PUBLIC WORKS PROJECTS IN EXCESS OF $250,000.00 (City Manager)
BRIEF DESCRIPTION: Consider and approve a Community Workforce Agreement to be executed for all future Public Works Projects that will cost more than $250,000.00.

RECOMMENDATION: Discuss the draft Community Workforce Agreement and adopt a resolution approving it for future use.

G. REPORTS OF CITY COUNCIL, OFFICERS, BOARDS, AND COMMITTEES

1. PRESENTATION ON HOLLISTER POLICE ANIMAL CARE & SERVICES STATISTICS IN THE CITY AND COUNTY (Police)
BRIEF DESCRIPTION: Staff will provide a presentation regarding the services being provided to the City of Hollister and the County of San Benito.

RECOMMENDATION: Receive a presentation and provide possible direction.

H. UNFINISHED BUSINESS

City Council Monday, December 4, 2023 Page 9 of 9

UPDATED CITY COUNCIL PROJECTS (City Manager)

BRIEF DESCRIPTION: City Council requested a list of agenda items, work items, items, and updates requested by the City Council to staff to be created and placed on each agenda under Unfinished Business.

RECOMMENDATION: Receive the report and hold a discussion, if desired.

1. UPDATED CITY COUNCIL PROJECTS (City Manager)
BRIEF DESCRIPTION: City Council requested a list of agenda items, work items, and updates requested by the City Council to staff to be created and placed on each agenda under Unfinished Business.

RECOMMENDATION: Receive the report and hold a discussion, if desired.

I. NEW BUSINESS
None.

J. MISCELLANEOUS
None.

K. CITY OF HOLLISTER AS THE SUCCESSOR HOUSING AGENCY OF THE

REDEVELOPMENT AGENCY
None.

L. ADJOURNMENT

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification of 48 hours prior to the meeting will enable the City to attempt to make reasonab le arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or videotaped or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 21, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Development Services
Eva Kelly, Interim Planning
Manager

TITLE OF ITEM: JOINT PLANNING COMMISSION AND CITY COUNCIL STUDY SESSION 2023-2031 HOUSING ELEMENT UPDATE

DEPARTMENT SUMMARY: The State of California requires that the City Council adopt a comprehensive, long-term General Plan for the physical development of the City. The Housing Element is one of seven mandated elements of the General Plan and must be updated every eight years to address existing and projected housing needs across all segments of the community. The housing need is determined by the Regional Housing Needs Allocation (RHNA), which is mandated by State Housing Law, as a periodic process of updating local Housing Elements. The State of California Department of Housing and Community Development (HCD) projects population growth by geographic region and designates the regional Council of Governments (COGs) as the agencies responsible for determining how the potential growth is allocated among the jurisdictions within the regions. The City of Hollister is located within the Association of Monterey Bay Area Governments (AMBAG) region. AMBAG adopted the Final 6th Cycle RHNA on October 12, 2022. AMBAG’s 6th Cycle runs from December 31, 2023 to December 31, 2031. On November 4, 2022, the Council of San Benito Government’s (SBCOG) was informed by the HCD that it had reviewed and approved SBCOG’s adopted RHNA Plan.

For the 6th Cycle, the City of Hollister has been allocated 4,163 housing units at specific affordability levels to accommodate the City’s projected housing needs. This allocation is the City’s RHNA. The RHNA is a specified number of housing units in four different affordability levels that is provided as a target for each jurisdiction across the State.

A primary requirement is that the Housing Element demonstrates to the State that the jurisdiction has sufficient, appropriately-zoned land to meet the RHNA for the next cycle in each income category. The City of Hollister is conducting a joint Planning Commission and City Council study session to provide members the opportunity to gain information on candidate site analysis and corresponding maps. This Study Session will also serve as additional public engagement opportunity where community members can provide input during the study session. The City of Hollister along with our consultant, Kimley-Horn, have completed one of two community workshops. The first community workshop was held virtually on May 31, 2023 and the 1 Packet Pg. 10

consultant plans to complete the second community workshop during the release of the Draft Housing Element.

ATTACHMENTS:

1. Hollister_Joint CC PC Study Session Presentation

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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CITY OF HOLLISTER Housing Element Update

CITY OF HOLLISTER
Housing Element Update
City Council and Planning Commission Study Session December 4, 2023 at 6:00PM

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CITY OF HOLLISTER Housing Element Update
Agenda
•Overview of the Housing Element
•Regional Housing Needs Allocation (RHNA)
•Updates to State Law
•Strategies to Address RHNA
•Schedule and Next Steps
•Discussion

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CITY OF HOLLISTER Housing Element Update
Housing Element Overview

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CITY OF HOLLISTER Housing Element Update
What is a Housing Element?
Required Chapter of the City’s General Plan
Identifies projected housing needs by income category
Provides goals, policies, programs, and quantified objectives to address current needs and guide future housing growth for all income levels Requires timely certification by the Department of Housing and Community Development (HCD) for compliance with State laws

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CITY OF HOLLISTER Housing Element Update
Why are Housing Elements Updated?
•Ensures the Housing Element is
compliant with State housing laws
•Establishes a plan for meeting the
housing needs of all income levels
•Demonstrates the City’s ability to
meet current and future housing
growth needs
•Engages the community in the
planning process

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CITY OF HOLLISTER Housing Element Update
Housing Element Certification
What is a
“Certified”
Housing
Element?
•Reviewed and certified by the Department of
Housing and Community Development (HCD)
•Demonstrates compliance with State law
Benefits of
Certification
•Provides access to State grants and
alternative funding sources
•Protects City from penalties

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CITY OF HOLLISTER Housing Element Update
Housing Element Key Features
•Housing needs assessment
•Evaluation of constraints and resources for housing development •Affirmatively Furthering Fair Housing (AFFH) analysis
•Identification of sites to accommodate the City’s RHNA •Evaluation of 5th Cycle Housing Element programs and policies •Policies, programs, and quantified objectives to achieve the City’s identified housing goals

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CITY OF HOLLISTER Housing Element Update
Regional Housing Needs Allocation
(RHNA)

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CITY OF HOLLISTER Housing Element Update
What is RHNA?
Statewide determination of units split into regional allocations Housing Element Update process initiated
Housing needs within each California jurisdiction quantified by income category Based on future population, employment and household growth

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CITY OF HOLLISTER Housing Element Update
How is RHNA Determined?
Department of Housing and Community Development
HCD determines and
distributes the State’s
housing need to all
the regional councils
of government
San Benito Council of Governments (SBCOG)
SBCOG develops
methodology to
determine
“fair share”
distribution of the
region’s housing
need to local
jurisdictions
City of Hollister
RHNA
2023-2031
4,163 units

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CITY OF HOLLISTER Housing Element Update
RHNA Income Categories
Income Category % of Area Median
Income (AMI)
Income Range* RHNA
(Housing Units)Minimum Maximum
Extremely Low Income 0 –30%--$33,400 423
Very Low Income 31 –50%$33,401 $55,650 423
Low Income 51 –80% $55,651 $89,050 678
Moderate Income 81 –120%$89,051 $168,250 826
Above Moderate Income >120%$168,251 --1,813
TOTAL:4,163 units
*Income range is based on the 2023 HUD Area Median Income (AMI)for San Benito County of $140,200 for a family of 4.

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CITY OF HOLLISTER Housing Element Update
5th Cycle vs. 6th Cycle RHNA
Income Category 5th Cycle RHNA
(Housing Units)
6th Cycle RHNA
(Housing Units)Unit Difference Percent Change
Extremely Low/Very
Low Income 312 846 +534 171%
Low Income 189 678 +439 259%
Moderate Income 258 826 +568 189%
Above Moderate
Income 557 1,813 +1,256 225%
Total:1,316 units 4,163 units +2,847 units 216%
Note:All jurisdictions within California has had changes in their RHNA since the 5th Cycle.For example,the City of Santa Cruz had a 400%RHNA increase since the 5th Cycle.

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CITY OF HOLLISTER Housing Element Update
Sites Selection

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CITY OF HOLLISTER Housing Element Update
Candidate Sites Analysis
•Must identify sites to accommodate the 6th Cycle RHNA
•Sites should be near community resources and services, public transportation, and have access to utilities
•Affirmatively Further Fair Housing
•Sites accommodating lower income units must be equitably spread out throughout the community
•The Housing Element reviews the City’s existing zoning ability to accommodate housing development for special housing needs groups •Affordability Assumptions
•Zoning must accommodate 20 dwelling units per acre to be considered for lower income units

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CITY OF HOLLISTER Housing Element Update
Candidate Sites Strategies
•Step 1: Projects in the Pipeline and Projected ADUs
•Projects approved and in-review
•Annual Accessory Dwelling Unit (ADU) projections based on 2018- 2021 average (17)
Strategies Very Low
and Low Moderate Above
Moderate Total
Pipeline Projects 152 18 1,659 1,829
ADUs 82 41 13 136
Total 234 59 1,672 1,965

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CITY OF HOLLISTER Housing Element Update
Candidate Sites Analysis
Very Low-
Income Low-Income Moderate-
Income
Above Moderate-
Income Total
RHNA (2022-2030)846 678 826 1,813 4,163
Projected ADU Construction 41 13 136
Pipeline Projects 18 1,560 1,730
Residential Zones 22 87 146
Mixed-Use Zones 14 51 87
Total Capacity 95 1,711 2,099
Remaining Need 731 102 2,064
North Gateway Vacant 95 382 636
High Density Residential Rezones 355 1,410 2,360
Mixed-Use Rezones 216 851 1,428
Downtown Mixed-Use Rezones 186 724 1,219
Total Rezone 852 3,367 5,643
TOTAL 947 5,078 7,742
309
595
361
1,717
1,424
82 159
6th Cycle RHNA Sites Inventory Analysis
Existing Capacity
152
1,231
22 293
Rezone Strategies
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CITY OF HOLLISTER Housing Element Update
Existing
Capacity

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CITY OF HOLLISTER Housing Element Update
North Gateway
Vacant

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CITY OF HOLLISTER Housing Element Update
High Density
Residential Rezones

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CITY OF HOLLISTER Housing Element Update
Mixed-Use
Rezones

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CITY OF HOLLISTER Housing Element Update
Downtown Mixed-Use
Rezones

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CITY OF HOLLISTER Housing Element Update
Tentative Project Timeline
Winter
2023
•Study Session #1 (12/4)
•Public Review Draft
Winter
2024
•Planning Commission and City Council Study Session
•Community Workshop #2
•First Draft Submittal to HCD
Spring 2024
•Housing Element Statutory Deadline Buffer
•Adoption Hearings

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CITY OF HOLLISTER Housing Element Update
Thank You! Questions?
Sign up for Housing
Element Update emails
Planning Division
[email protected]
(831) 636-4360

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City Council 375 Fifth Street
Hollister, CA 95023
Regular Meeting https://hollister.ca.gov

~ Minutes ~ Jennifer Woodworth
831-636-4330 x1017

Monday, November 20, 2023 6:30 PM City Council Chambers City Council Page 1 Printed 11/29/2023

PUBLIC PARTICIPATION NOTICE
Call to Order
Mayor Casey called the special meeting of the City Council of the City of Hollister to order at 5:00 p.m.

Councilmember Resendiz not present.

Closed Session - 5:00 p.m.

Public Comment (limited to any item listed on the Closed Session agenda) No speakers present.

Closed Session will be held by the City Council of the City of Hollister to discuss the following matters:

City Attorney Lerner read the closed session item titles.

1. Information Item (ID # 4311)

CONFERENCE WITH LEGAL COUNSEL - LIABILITY CLAIMS GOVERNMENT CODE SECTION 54956.95 Claimants: Sandra Copas; Manuel Diaz Agency Claimed Against:

City of Hollister

2. Information Item (ID # 4348)
Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of section 54956.9 of the Government Code 3 cases

3. Information Item (ID # 4338)

CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Agency designated representatives: (City Manager David Mirrione and Administrative Services Director Casey Estorga) Employee Organizations:

Mid-Management Association and Hollister Police Officers Association (HPOA)

4. Information Item (ID # 4353)
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City Council Page 2 Printed 11/29/2023
CONFERENCE WITH REAL PROPERTY NEGOTIATORS per Government Code section 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property:

APNs: 056-250-0190; 056-250-0240 Agency Negotiator: David Mirrione, City Manager Under Negotiation: Price and Terms
COMMENTS - Current Meeting:

Councilmember Perez moved, and Councilmember Morales seconded the motion to adjourn into closed session. Motion carried 4-0-0 (Councilmember Resendiz absent).

Councilmember Resendiz arrived at 5:06 p.m.

Special meeting adjourned at 6:08 p.m.

Pledge of Allegiance
Councilmember Resendiz led the Pledge of Allegiance.

Roll Call

Attendee Name Title Status Arrived
Mia Casey Mayor Present
Rick Perez District 1 Present
Rolan Resendiz District 2 Present
Dolores Morales District 3 Present
Tim Burns District 4 Present
Mary F. Lerner City Attorney Present
Jennifer Woodworth City Clerk Present
Carlos Reynoso Police Chief Present
David Mirrione City Manager Present
Gordon Machado City Treasurer Absent
Verification of Agenda Posting
City Clerk Woodworth reported the agenda for the City Council of the City of Hollister special and regular meetings of November 20, 2023 was posted on the bulletin board at City Hall on November 15, 2023 at 3:35 p.m. per Government Code Section 54954.2.

Closed Session - Report Out
City Attorney Lerner stated no reportable action was taken in closed session.

Proclamations/Recognitions
No items.

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A. Consent Items
Councilmember Burns pulled Item A8 from the consent agenda.

Councilmember Burns requested a correction to the November 6, 2023 minutes to reflect Councilmember Resendiz opposed Item F1 on that agenda.

Mayor Casey opened public comment at 10:05 p.m.

There were no speakers for the consent agenda items.

Mayor Casey closed public comment at 10:05 p.m.

Councilmember Burns moved, and Councilmember Morales seconded the motion to approve the consent agenda items, except for Item A8. Motion carried 5-0-0.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Tim Burns, District 4
SECONDER: Dolores Morales, District 3
AYES: Casey, Perez, Resendiz, Morales, Burns
Consent items are numbers: A1-A8.

1. Monday, November 06, 2023

2. Action Item (ID # 4300)
WARRANT REGISTER -NOVEMBER 20, 2023-AP
ATTACHMENTS:
• Expense Approval Register AP SPECIAL 10-12-2023 (PDF) • Expense Approval Register-DP 10-12-23 (PDF)
• Expense Approval Register-AP 10-16-23 (PDF)
• Expense Approval Register AP 10-19-23 (PDF)
• Expense Approval Register AP10-25-23 (PDF)
• Expense Approval Register DP 10-25-23_ (PDF)
• Expense Approval Register PYR 10-25-23 (PDF)
• Expense Approval Register AP SPECIAL 10-26-23 (PDF)
• Expense Approval Register AP 11-2-23 (PDF)
• Budget Report_11-3-23_Meeting 11-20-23 (PDF)

3. Ordinance 1240
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AMENDING THE CITY OF HOLLISTER MUNICIPAL CODE, TITLE 2 -ADMINISTRATION AND

PERSONNEL TO UPDATE THE HOLLISTER CITY COUNCIL AGENDA FORMAT

4. Resolution 2023-231

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER ADOPTING

AMENDED BYLAWS FOR THE AIRPORT ADVISORY COMMISSION, ARTS &

CULTURE COMMISSION, PARKS & RECREATION COMMISSION, PLANNING

COMMISSION, AND YOUTH COMMISSION
ATTACHMENTS:
• Exhibit A Airport Bylaws (PDF)
• Exhibit B ACC BY LAWS (PDF)
• Exhibit C Parks & Recreation Commission (PDF)
• Exhibit D Planning Commission Bylaws (PDF)
• Exhibit E Youth Commission Bylaws (PDF)

5. Action Item (ID # 4349)

RATIFY APPOINTMENTS TO FILL VACANCY ON ARTS & CULTURE COMMISSION ATTACHMENTS:
• YOUTH ART CULTURAL COMMISSION_ Miko Rodriguez_Redacted (PDF)

6. Resolution 2023-232

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING

THE CITY OF HOLLISTER'S DONATION POLICY
ATTACHMENTS:
• Draft Donation Receipt - Exhibit B (PDF)
• Draft Donation Policy (PDF)
• Draft Donation Agreement - Exhibit A (PDF)

7. Resolution 2023-233

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE PURCHASE OF A VEHICLE THROUGH SOURCEWELL

PURSUANT TO MUNICIPAL CODE COMPETITIVE BIDDING EXEMPTIONS-

COOPERATIVE PURCHASING
ATTACHMENTS:
• Sourcewell Minnesota Statutes (PDF)
• Sourcewell_NameChangeLegalMem and resolution (PDF)
• Sourcewell By-laws-2019 (PDF)
• Municipal Code Article II excerpts (DOCX)

8. Item A8 was moved to Items Pulled from the Consent Agenda.

Items Pulled From Consent Agenda

9. Resolution 2023-234
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER TO SIGN AN AGREEMENT WITH PINNACLE

TRAINING SYSTEMS, LLC FOR WORK SITE WELLNESS SERVICES FOR POLICE

AND FIRE DEPARTMENT STAFF
COMMENTS - Current Meeting:

Police Chief Carlos Reynoso provided the staff report.

Mayor Casey opened public comment at 7:42 p.m.

No speakers present.

Mayor Casey closed public comment at 7:43 p.m.

Councilmember Burns suggested expanding the program to include all City employees.

Councilmember Resendiz moved, and Councilmember Burns seconded the motion to adopt Resolution 2023-234. Motion carried 5-0-0.

ATTACHMENTS:
• 2023 Service Agreement (PDF)
• Pinnacle Training Systems Signed Agreement (PDF)
RESULT: ADOPTED [UNANIMOUS]
MOVER: Rolan Resendiz, District 2
SECONDER: Tim Burns, District 4
AYES: Casey, Perez, Resendiz, Morales, Burns
B. City of Hollister as the Successor Agency of the Redevelopment Agency No items.

C. Public Input
Public comments were heard following the closed session report out.

Zeke Lopez thanked the City Council for the recognition of Bulldog Boxing Gym and for the City's support.

Dom Zanger, San Benito County Supervisor for District 1, inquired why the Council approved connection of City sewers the Lands of Lee project that had previously been denied by the County.

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John Robles expressed concern regarding funding of Councilmembers' campaigns by developers and stated actions by Councilmembers Burns, Morales, Perez, and Mayor Casey were unethical.

Sam Ramos expressed concern related to proposed changes to the City's proposed General Plan Update.

Sandy Patterson Jamarck expressed concern regarding dog attacks in her neighborhood and the City's animal control staff not properly responding.

Jamila Saqqa requested the Council and community reach out to other elected officials to demand an immediate ceasefire in the current conflict between Israel and Hamas and spoke regarding the more than 11,000 deaths that have occurred during the conflict.

Maureen Nelson requested the City Council take a stand against the expansion of the County's landfill and spoke against the City approving any actions related to the Fairview Corners development.

Doni Bee opposed installation of the Flock camera system in the City stating it violated the Fourth Amendment to the US Constitution.

Rosalinda Sanchez thanked the Hollister Downtown Association and the City for supporting the Dia De Los Muertos event stating it helped provide a positive representation of the culture for many Hollister residents. Ms. Sanchez supported the City Council using their discretionary funds to support arts in the City.

Sandra Copas spoke against domestic violence and stated the Hollister Police Department must be impartial in how it provides its services to reseidents.

Andy Hsia-Coron requested the Council and community reach out to other elected officials to demand an immediate ceasefire in the current conflict between Israel and Hamas and suggested the City Council adopt a resolution calling for an immediate ceasefire.

Annalisa Austin requested a criminal investigation related to criminal activity regarding the sale of her home.

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Sue Logue thanked the City Council for supporting the community and asked the Council to focus on working together positively to better the community.

Carol Lenoir wished everyone a happy Thanksgiving.

Carly Robles spoke regarding a flyer sent to everyone in San Benito County regarding actions by the Council.

R. Picha stated residents want infrastructure improvements more than housing developments and spoke against censuring Councilmember Resendiz.

Keegan Bells provided comments.

Keegan Bells was removed from the meeting due to making comments that were irrelevant and outside the purview of the City Council.

Public Comment Supplement
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D. Petitions, Remonstrances and Communications

1. City Manager Report
No items.

2. Trainings and Conferences
No items.

E. Public Hearings

1. Resolution 2023-235

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER DENYING AN APPEAL FILED BY NATMAR, L.P. AND UPHOLDING THE DECISION OF THE PLANNING COMMISSION’S DENIAL OF VESTING TENTATIVE MAP (TM 2022 -1) AND DENSITY BONUS (DB 2023-3) FOR A SINGLE FAMILY RESIDENTIAL

DEVELOPMENT WHICH INCLUDES TWO OPTIONS - OPTION A IS A VESTING TENTATIVE MAP AND A DENSITY BONUS FOR A 22 LOT SINGLE FAMILY

RESIDENTIAL SUBDIVISION WITH ONE LOT RESERVED FOR A FUTURE CHILD CARE FACILITY; OPTION B IS A VESTING TENTATIVE MAP AND A DENSITY BONUS FOR A 22 LOT SINGLE FAMILY SUBDIVISION - LOCATED AT CIENEGA

ROAD AND PROMISE WAY, FURTHER IDENTIFIED AS SAN BENITO COUNTY ASSESSOR PARCEL NUMBER 057-740-001
COMMENTS - Current Meeting:

This Item was heard after the consent agenda.

Senior Planner Erica Fraser provided the staff report.

Mayor Casey opened the public hearing at 10:27 p.m.

Alex Sywak provided additional information regarding the proposed project and requested the City uphold his appeal of the Planning Commission's denial of the project.

Christine Breen stated the City has violated due process related to the project.

Tom Connors supported the proposed project stating additional childcare facilities are needed in the area.

Mayor Casey closed the public hearing at 10:36 p.m.

Councilmember Resendiz moved, and Councilmember Burns seconded the motion to adopt Resolution 2023-235. Motion carried 5-0-0.

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ATTACHMENTS:
• 1A. Appeal Application (PDF)
• 1B. Appeal Statement (PDF)
• 2. Staff Report_TM 2022-1, DB 2023-3_Denial (PDF)
• 3A. Vesting TMap Plots Option A (PDF)
• 3B. Vesting TMap Plots Option B (PDF)
• 4. Resolution_TM 2022-1, DB 2023-3 (PDF)
• 5. Incomplete Letter dated August 24, 2022 (without attachments) (PDF) • 6. Incomplete Letter dated October 25, 2022 (without attachments) (PDF) • 7. Memo from Fire with Comments (DOC)
• 8. Recology Letter dated August 10, 2023 (PDF)
• 9. Fire Presentation (at Planning Commission Meeting) (PDF) • E.1. Supplement (PDF)
RESULT: ADOPTED [UNANIMOUS]
MOVER: Rolan Resendiz, District 2
SECONDER: Tim Burns, District 4
AYES: Casey, Perez, Resendiz, Morales, Burns

2. Resolution 2023-236

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING A CONDITIONAL CANNABIS USE PERMIT/ DEVELOPMENT AGREEMENT 2023 -01 FOR L PLUS L, LLC TO OPERATE A CANNABIS CULTIVATION FACILITY AT 1785 SAN FELIPE ROAD (APN 051-120-076-000 )
COMMENTS - Current Meeting:

Cannabis Affairs Program Manager Maria Mendez provided the staff report.

Mayor Casey opened the public hearing at 10:59 p.m.

No speakers present.

Mayor Casey closed the public hearing at 10:59 p.m.

Councilmember Morales expressed concern regarding the potential negative impact on the community.

Councilmember Resendiz moved, and Councilmember Perez seconded the motion to adopt Resolution 2023-236. Motion carried 3-2-0 (Councilmembers Morales and Burns opposed).

ATTACHMENTS:
• Public Notice Nov 20_ L Plus L (PDF)
• L PLus L DA_ NOV 20 (PDF)
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RESULT: ADOPTED [3 TO 2]
MOVER: Rolan Resendiz, District 2
SECONDER: Rick Perez, District 1
AYES: Mia Casey, Rick Perez, Rolan Resendiz
NAYS: Dolores Morales, Tim Burns

3. Ordinance 1242

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AMENDING THE CITY OF HOLLISTER MUNICIPAL CODE, SECTION 2.04.180 (“MANNER OF ADDRESSING CITY COUNCIL-TIME LIMIT”) OF CHAPTER 2.04 (“CITY COUNCIL”) AND SECTION 2.08.090 (“REMOVAL OF OFFICE”) OF CHAPTER 2.08 (“CITY MANAGER”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”)
COMMENTS - Current Meeting:

City Manager David Mirrione stated staff is withdrawing the item and will bring it back for a future Council meeting.

RESULT: WITHDRAWN
F. Introduction and Adoption of Resolutions and Ordinances

1. Resolution 2023-237

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY -HORN AND ASSOCIATES, INC., IN AN AMOUNT NOT-TO-EXCEED $500,000 TO PREPARE PLANS AND SPECS AND ENGINEERING SUPPORT FOR THE 2024 CITY WIDE

ROADWAY IMPROVEMENT PROJECT
COMMENTS - Current Meeting:

Item F1 was heard following public comment.

Cristian Builles provided the staff report outlining the proposed 2024 Citywide Roadway Improvement Project.

Mayor Casey stated the City Council had previously requested a speed table near Ladd Lane Elementary.

Councilmembers Perez and Morales supported improvements to the City's alleys.

Mayor Casey opened public comment at 7:42 p.m.

Sean Dempsey expressed concern regarding freestanding water in Wentz Alley during winter storms.

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Carol Lenoir thanked Councilmember Perez for his support for improvements to the City's alleys.

Mayor Casey closed public comment at 7:43 p.m.

Councilmember Resendiz supported separating the striping of a crosswalk on Memorial Drive from the rest of the project and putting it out to bid sooner than the remaining projects.

Councilmember Perez moved, and Councilmember Morales seconded the motion to adopt Resolution 2023-237. Motion carried 4-1-0 (Councilmember Burns opposed).

ATTACHMENTS:
• 2024 CIP Pavement Proposal-2023.10.25 (PDF)
• 2024 Roadway Improvement Projects Presentation (PDF)
RESULT: ADOPTED [4 TO 1]
MOVER: Rick Perez, District 1
SECONDER: Dolores Morales, District 3
AYES: Mia Casey, Rick Perez, Rolan Resendiz, Dolores Morales NAYS: Tim Burns

2. Ordinance 1241

AN ORDINANCE OF THE CITY OF HOLLISTER AMENDING ARTICLE II - PURCHASING OF CHAPTER 3.06 – PROCEDURES FOR SUPPLIES, OF TITLE 3 -

REVENUE AND FINANCE, OF THE HOLLISTER MUNICIPAL CODE
COMMENTS - Current Meeting:

Assistant City Attorney Jennifer Thompson provided the staff report.

Mayor Casey opened public comment at 11:08 p.m.

Rene Baez, Hollister resident and field representative with the Norcal Carpenters Union, stated their union was not consulted regarding the proposed ordinance and requested the City include the union in future conversations on the topic.

Nate Morris supported the proposed ordinance and its inclusion of community workforce agreements.

David Bini, representing unionized construction workers in the area, supported the proposed ordinance.

Jose Rivera supported the proposed ordinance stating local residents will be employed for the projects reducing traffic.

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Steve Belong supported the proposed ordinance.

Casey Van Dan Heuvel supported the proposed ordinance stating a skilled and trained workforce, providing health benefits, and local employment opportunities help support the future of Hollister residents.

Javier Casillas supported the proposed ordinance and supported increasing the number of apprenticeships in San Benito County to support employment in the County.

Mayor Casey closed public comment at 11:20 p.m.

Councilmember Perez moved, and Councilmember Morales seconded the motion to re- introduce Ordinance 1241 and schedule for adoption on December 4, 2023. Motion carried 3-1- 0 (Councilmember Resendiz opposed; Councilmember Burns recused).

ATTACHMENTS:
• Exhibit A - Comparable Bid Limits (PDF)
• Exhibit B - Ordinance No. 1035 (PDF)
• Exhibit C - Sample Community Workforce Agreement (DOCX) RESULT: FIRST READING [3 TO 1] Next: 12/4/2023 6:30 PM
MOVER: Rick Perez, District 1
SECONDER: Dolores Morales, District 3
AYES: Mia Casey, Rick Perez, Dolores Morales
NAYS: Rolan Resendiz
RECUSED: Tim Burns
G. Reports of City Council, Officers, Boards and Committees

1. Information Item (ID # 4343)

CONSIDER AMENDMENTS TO THE COUNCIL CODE OF CONDUCT ORDINANCE

AND PROVIDE FURTHER DIRECTION TO CITY STAFF
COMMENTS - Current Meeting:

This item was heard following item F1.

Assistant City Attorney Jennifer Thompson provided the staff report.

The members of Council requested and received clarification regarding the proposed changes to the Council Code of Conduct.

Councilmember Morales suggested modifying Section 2.04.015.12 - Representation of Private Interests to allow members of Council to meet with developers who propose projects within their district.

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Mayor Casey opened public comment at 7:56 p.m.

Sam Ramos opposed the proposed changes to the City Council Code of Conduct and stated his support for Councilmember Resendiz.

John Robles opposed the proposed changes to the City Council Code of Conduct and opposed the censuring of Councilmember Resendiz and his removal from committee assignments.

Shelly Geisler opposed the proposed changes to the City Council Code of Conduct and stated her support for Councilmember Resendiz.

Fallon Greig opposed the proposed changes to the City Council Code of Conduct and stated her support for Councilmember Resendiz.

Bella Rosales opposed the proposed changes to the City Council Code of Conduct related to Council discretionary funds and stated her support for Councilmember Resendiz.

Julio Rodriguez opposed the proposed changes to the City Council Code of Conduct related to Council discretionary funds and stated his support for Councilmember Resendiz.

Andy Hsia-Coron opposed the proposed changes to the City Council Code of Conduct, stated name calling is part of democracy, and stated he would pursue a lawsuit if the changes were adopted.

Mary Hsia-Coron opposed the proposed changes to the City Council Code of Conduct, stated her support for Councilmember Resendiz, and stated Councilmember Resendiz's right to free speech should be defended.

Bridgette Thorp opposed the proposed changes to the City Council Code of Conduct, stated her support for Councilmember Resendiz, and supported a moratorium on development in Hollister.

Maureen Nelson opposed the proposed changes to the City Council Code of Conduct and stated her support for Councilmember Resendiz.

Rene Baez supported the proposed changes the City Council Code of Conduct.

Nate Morris supported the proposed changes the City Council Code of Conduct.

Doni Bee opposed the proposed changes to the City Council Code of Conduct and stated his support for Councilmember Resendiz.

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David Bini, representing the Santa Clara and San Benito County Building Trades Council, supported the proposed changes the City Council Code of Conduct stating members of the public should be able to address the Council without being attacked by members of the Council.

Jose Rivera supported the proposed changes the City Council Code of Conduct.

Steve Belong supported the proposed changes the City Council Code of Conduct stating it will bring accountability and transparency to the Council.

Rudy Picha opposed the proposed changes to the City Council Code of Conduct and stated his support for Councilmember Resendiz.

Jasmine Castillo Rosales opposed the proposed changes to the City Council Code of Conduct and stated her support for Councilmember Resendiz.

Carly Robles opposed the proposed changes to the City Council Code of Conduct and stated her support for Councilmember Resendiz.

Carol Lenoir supported the proposed changes the City Council Code of Conduct stating professional behavior is needed at public meetings.

Mayor Casey closed public comment at 8:33 p.m.

Councilmember Resendiz opposed the proposed changes to the City Council Code of Conduct stating they are biased and will be abused by members of the City Council.

Councilmember Burns stated the City Council Code of Conduct applies to the entirety of the City Council and does not single out specific members of the Council.

Councilmember Morales stated City business must be allowed to move forward, and an enforceable Code of Conduct must be adopted.

By consensus, the Council directed staff to return with an ordinance to adopt the proposed amendments to the City Council Code of Conduct with the following modifications:
- Update Hollister Municipal Code Section 2.04.015.12 - Representation of Private Interests to only prohibit meetings with developers and lobbyists who have projects outside a member of Council's district
- 4/5ths majority will required to impose fines on a member of Council A.1
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- The proposed fines are $100 for a first violation of the Code of Conduct, $200 for a second violation, and $500 for each subsequent violation for one year, starting with the date of the first offense
- Remove the proposal to remove a Council member's discretionary funds from the budget, and instead allow members of the community to request use of the funds from another member of Council who could then request the funds be used
- Do not allow for representation by city-appointed legal defense - State that sanctions shall be in place for one year from the time of a member of Council's first violation of the City Council Code of Conduct

The City Council recessed at 9:14 p.m. and reconvened at 9:25 p.m. with all members of Council present.

2. Information Item (ID # 4344)
INFORMATIONAL REPORT ON FISCAL YEAR 2023-24 QUARTER 1 (Q1) BUDGET

MONITORING
COMMENTS - Current Meeting:

City Manager David Mirrione provided the staff report.

Mayor Casey opened public comment at 9:49 p.m.

There were no speakers for this item.

Mayor Casey closed public comment at 9:49 p.m.

3. Information Item (ID # 4342)
UPDATE ON 2024 HOLLISTER MOTORCYCLE RALLY
COMMENTS - Current Meeting:

City Manager David Mirrione and Police Chief Carlos Reynoso provided the staff report.

Councilmember Resendiz suggested utilizing staff from the California Department of Correction and/or the probation department to provide security at the rally. Councilmember Resendiz supported holding the motorcycle rally.

Mayor Casey opened public comment at 10:04 p.m.

There were no speakers for this item.

Mayor Casey closed public comment at 10:04 p.m.

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By consensus, the City Council agreed to continue the meeting past 10:00 p.m.

4. Information Item (ID # 4352)
2023 MUNICIPALITIES LEGISLATIVE UPDATE
COMMENTS - Current Meeting:

This item was heard after agenda Item F2.

Assistant City Attorney Robert Lomeli provided the staff report.

Mayor Casey opened public comment at 11:49 p.m.

There were no speakers for this item.

Mayor Casey closed public comment at 11:49 p.m.

ATTACHMENTS:
• Legislative Update City of Hollister - November 2023 (PDF)

5. Action Item (ID # 4339)
A REPORT ON TWO ITEMS RELATED TO THE 2040 GENERAL PLAN UPDATE FOLLOWING THE SEPTEMBER 11, 2023 STUDY SESSION: NORTH GATEWAY

COMMERCIAL GENERAL PLAN LAND USE DESIGNATION AND AGRICULTURAL

PRESERVATION PROGRAM
COMMENTS - Current Meeting:

Planning Manager Eva Kelly provided the staff report.

Mayor Casey opened public comment at 12:23 p.m.

Mary Hsia-Coron discouraged the City Council from discussing items past midnight. Ms. Hsia- Coron opposed the 1:1 agricultural land preservation ratio and stated the agricultural land preservation area should not be expanded to include all of San Benito County.

Mayor Casey closed public comment at 12:26 p.m.

By consensus, the City Council directed staff to only allow mixed-use designation for the North Gateway area and directed staff to implement the 1:1 ratio for agricultural land easements to be located within the General Plan 2040 planning area.

ATTACHMENTS:
• 1. Revised GP Draft Letter. June 16, 2023 (PDF)
• 2. Orosco Group General Plan 2040 Draft & EIR Comment Ltr 20230628 (PDF) • 3. Orosco Group GP 2040 Draft EIR Comment Ltr 20230630 (PDF) • 4. Orosco Group GP 2040 CC Mtg Follow Letter to Council MC 20230915 (PDF) • G.5. Supplement (PDF)
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RESULT: CONSENSUS

6. Information Item (ID # 4236)

CONSIDER A REQUEST BY BRIGHT FUTURE RECOVERY TO WAIVE THE

REQUIRED APPLICATION FEE FOR A SPECIFIC PLAN AMENDMENT
COMMENTS - Current Meeting:

Councilmember Resendiz recused himself for this agenda item.

Senior Planner Erica Fraser provided the staff report.

Mayor Casey opened public comment at 12:43 p.m.

There were no speakers for this item.

Mayor Casey closed public comment at 12:43 p.m.

By consensus, the City Council directed staff to return with a resolution to waive the application fee for Bright Future Recovery.

ATTACHMENTS:
• BFR Applicant Statement (PDF)
• Fee Waiver Request (PDF)

7. Information Item (ID # 4278)

PROVIDE DIRECTION TO STAFF REGARDING A POTENTIAL BALLOT MEASURE

TO INCREASE THE MAYORAL TERM OF OFFICE TO FOUR YEARS
COMMENTS - Current Meeting:

City Clerk Jennifer Woodworth provided the staff report.

Mayor Casey opened public comment at 12:46 p.m.

Doni Bee requested clarification regarding the proposed ballot measure and opposed the proposed ballot measure.

Mayor Casey closed public comment at 12:47 p.m.

By consensus, the City Council directed staff to return with a ballot measure to extend the mayoral term to four years on the November 5, 2024, which if approved by the voters would be come effective with the November 2024 election.

8. Action Item (ID # 4284)
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DISCUSSION AND DIRECTION RELATED TO IN-LIEU PETITIONS FOR

PUBLICATION COSTS FOR CANDIDATES OF ELECTIVE OFFICES THAT WISH TO

FILE A CANDIDATE STATEMENT
COMMENTS - Current Meeting:

City Clerk Jennifer Woodworth provided the staff report.

Mayor Casey opened public comment at 12:57 p.m.

No speakers on this item.

Mayor Casey closed public comment at 12:57 p.m.

By consensus, the City Council directed staff to return with an ordinance for the City to pay for the candidates' 200-word candidate statement for future Council elections.

RESULT: CONSENSUS

9. Reports from City Council Members regarding Committees on which they serve Councilmember Perez reported his attendance at the key distribution event for the homes on Southside Rd. and the Philanthropy Day event.

Councilmember Morales reported her attendance at the key distribution event for the homes on Southside Rd. and the Philanthropy Day event. Councilmember Morales provided an updated on the Council of Governments mobility partnership.

Mayor Casey reported her attendance at a meeting of the Council of Governments, Benitolink's "State of the Region" event, swearing in of Hollister police officers, and the Hazel Hawkins ad hoc committee.

10. Informational Reports from City Council, City Manager, City Attorney, City Clerk and Staff
City Attorney Lerner provided an update on the analysis of the San Benito County landfill expansion.

Information Technology Director Paul DaSilva provided an update on the Accela software program implementation.

Police Chief Reynoso reported four new police officers were sworn in on Monday, and a new recruitment will be starting soon.

Councilmember Resendiz requested staff follow up with the speaker earlier in the evening regarding dog attacks at the Mission Oaks Mobile Home Park; supported the request for a resolution asking for a ceasefire in the current Israeli-Hamas conflict; requested an agenda item to authorize use of his discretionary funds for a Los Posadas event; and requested an update on his previous request for the City Council to approve tentative maps.

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Councilmember Burns supported the request to call for a ceasefire; requested staff bring back a policy to address "Zoom-bombing" at public meetings; requested staff follow up concerns raised related to a lack of parking at the Hollister Historical Museum; requested more information on nitrate levels in wells in the Wright Road area; requested certificates of recognition Dr. Paul Percival, Nob Hill Foods, Wong's Garden Chinese Restaurant, and Baskin Robbins; requested an update on the small business loan made to MMM Churros; requested regular updates on the sewer smell in District 2 at each Council meeting; requested clarification from San Benito County regarding the proposed expansion of county landfill; and expressed concern regarding potential risks near the elementary school on Memorial Drive stating he does not want to wait eight months for a crosswalk to be installed there.

Councilmember Perez requested lighted crosswalk on near Fourth and Line Street and inquired if a traffic study had previously been conducted for the location and requested a certificate of recognition be given to Ken Lindsay at a future Council meeting.

Councilmember Morales requested her discretionary funds be used to create cards and/or magnets that include QR codes to direct people to City resources and job opportunities, such as a resource directory, similar to that of the Community Foundation's resource page and stated if the City is going to discuss the proposed expansion of the County's landfill then a robust analysis is needed and should be discussed at a study session.

Mayor Casey requested being able to review the draft agenda with the City Manager prior to it being published.

In addition to the items already confirmed to have council consensus, City Manager David Mirrione confirmed council consensus on holding a closed session item on Zoom-bombing.

City Manager Mirrione confirmed staff has already addressed the concerns related to museum parking; reported a discussion regarding the sewer smell is scheduled for December 18, 2023; and the City attorney is currently working on landfill risk analysis.

H. Unfinished Business

1. Information Item (ID # 4350)

UPDATED CITY COUNCIL PROJECTS
ATTACHMENTS:
• 20231120 - Agenda Item and Update Request log (PDF)
I. New Business
No items.

J. Miscellaneous
No items.

K. City of Hollister as the Successor Housing Agency of the Redevelopment Agency
No items.

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Regular Meeting Minutes November 20, 2023
City Council Page 20 Printed 11/29/2023
L. Adjournment
Councilmember Morales moved, and Councilmember Perez seconded the motion to adjourn the meeting at 1:44 a.m. Motion carried 5-0-0.

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 29, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Clerk
Jennifer Woodworth, City Clerk

TITLE OF ITEM: ORDINANCE NO. 1241 AN ORDINANCE OF THE CITY OF HOLLISTER AMENDING ARTICLE II -PURCHASING OF CHAPTER 3.06 – PROCEDURES FOR SUPPLIES, OF TITLE 3 - REVENUE AND FINANCE, OF THE

HOLLISTER MUNICIPAL CODE

BRIEF DESCRIPTION: On November 20, 2023, the City Council introduced Ordinance 1241 to amend Article II (“Purchasing”) of Chapter 3.06 (“Procedures for Supplies, Property, and Services”) of Title 3 (“Revenue and Finance”) of the City of Hollister Municipal Code (“Ordinance”).

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ORDINANCE NO. 1241

AN ORDINANCE OF THE CITY OF HOLLISTER AMENDING ARTICLE II - PURCHASING OF CHAPTER 3.06 – PROCEDURES FOR SUPPLIES, OF TITLE 3 -

REVENUE AND FINANCE, OF THE HOLLISTER MUNICIPAL CODE

WHEREAS, City of Hollister Ordinance No. 1035 added chapter 3.06 entitled Procedures for Supplies, Property, and Services to the Hollister Municipal Code; and

WHEREAS, Section 3.06 Article II - Purchasing generally regulates the City’s procurement rules; and

WHEREAS, updates to the City’s procurement rules are warranted based on widespread economic changes and the necessity for operational efficiencies; and

WHEREAS, state law requires a city to adopt by ordinance policies and procedures, including bidding regulations, associated with the purchase of goods and services; and

WHEREAS, the City Council wishes to adopt contemporary purchasing rules that both protect and maximize the use of public funds.

NOW THEREFORE, pursuant to the Government Code, the City Council of the City of Hollister does hereby adopt the amended section Article II of Chapter 3.06 of Title 3 of the City of Hollister Municipal Code relating to purchasing. Chapter 3.06 Article II Title III of the City of Hollister Municipal Code is amended to read:

CHAPTER 3.06

Article II. - Purchasing

3.06.200 - Authority, title, and purpose

This article is authorized by Title 5, Division 2, Chapter 5, Article 7 of the California Government Code (section 54201, et seq.) and shall be known as the "City of Hollister Purchasing Ordinance." It shall govern all purchasing activity of the City except real property acquisition and disposition and as may otherwise be specifically provided in this code.

The City Manager is the City’s designated purchasing agent and is therefore authorized to make purchases of all goods and services needed by the city or enter into contracts/agreements that obligate city funds. The City Manager may delegate limited purchasing authority to department directors and/or other city employees as may be required.

3.06.210 - Purchases more than one hundred thousand dollars ($100,000)

Except as otherwise directed by the City Council, whenever the amount to be expended for services, materials, equipment, or supplies is in excess of $100,000, the Department A.2
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Head shall advertise for sealed bids and the purchase contract shall be awarded to the lowest responsive and responsible bidder, except in the case of a local vendor whose bid meets the requirements of Section 3.06.245 herein and whose bid does not exceed five percent (5%) of the lowest responsive and responsible bidder; provided that the Council shall have the authority to reject any and all bids. Order splitting to avoid competitive requirements is prohibited.

For purposes of this article, “Responsive Bidder” is one who has submitted a bid that conforms in all material respects to the bid request. That is, compliance with the specifications. A “Responsible Bidder” has the capability in all respects to perform the contract requirement, and the integrity and reliability that will assure good faith performance. That is, the ability and means to perform.

The bid request shall be published in a local newspaper and/or advertised on the city’s website for at least ten calendar days prior to the bid opening date. The bid request shall describe the goods or services required, stating the date, time, and place assigned for the public opening of the bids. A secure, on-line bid submittal system, or other appropriate media, may be used in lieu of sealed bids opened in public, provided the City Manager has approved the system for accuracy, confidentiality, and reliability. No bids will be received any time after the time advertised in the announcement. The Department Head shall submit a tabulation of bids to the City Council together with a recommendation for award to the lowest responsive and responsible bidder.

3.06.220 - Purchases of more than ten thousand dollars ($10,000), but less than one hundred thousand dollars ($100,000)

All purchase orders or contracts for services, materials, equipment, or supplies involving amounts of more than $10,000, but less than $100,000, may be let by free and open competitive quotations. These contracts shall be let in the open market in a manner calculated to ensure the best interests of the public, after solicitation for quotations by mail, online source/website, telephone, email, or competitive negotiation by the City Manager or Department Head. In the solicitation for competitive quotations, the City shall contact at least three (3) potential sources of supply and include qualified local vendors. Order splitting to avoid competitive requirements is prohibited.

When comparing the competitive quotations, quotations from local vendors which meet the requirements of Section 3.06.245 herein shall be discounted by up to five percent (5%).

Purchases shall be made from the vendor with the lowest quotation unless a qualified vendor with a higher quotation can responsibly satisfy the City’s purchasing need.

Purchases where the vendor with the lowest quotation is not selected must first be reviewed and approved by the City Manager or Administrative Services Director before the purchase is made.

3.06.230 - Purchases of less than ten thousand dollars ($10,000)

Single purchases of $10,000.00 or less must be authorized by the City Manager or a Department Head. Only one quotation is required for purchases of $10,000 or less. If A.2
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alternate quotations may result in a lower cost, then additional solicitations should be obtained. Furthermore, any quotation of more than $500 must be documented in writing.

Quotations may come from an online source (i.e. a website) only when the accuracy of the online source can be verified. Order splitting to avoid competitive requirements is prohibited.

Purchases shall be made from the vendor with the lowest quotation unless a qualified vendor with a higher quotation can responsibly satisfy the City’s purchasing need.

Purchases where the vendor with the lowest quotation is not selected must first be reviewed and approved by the City Manager or Administrative Services Director before the purchase is made.

Petty cash up to $500.00 may be used to reimburse an employee making purchases subject to Section 3.06.230.

3.06.240 - Determination of lowest responsive and responsible bidder

In determining the lowest responsive and responsible bid for services, materials, equipment, or supplies, criteria will include, but not be limited to, the following:

A. The extent to which the offer meets the requirements and specifications of the city.

B. Life cycle cost or total cost of ownership, which includes acquisition, operating, maintenance, and disposal costs.

C. Impact on operational efficiency, which includes lead time and delivery requirements.

D. Ability and reliability of the bidder and suppliers to provide and guarantee the items procured.

E. Financial stability of the bidder.

3.06.245 - Local vendor preference

The City Council shall be authorized to give preferences for goods and services as permitted by applicable state or federal law and specifically provided for from time to time by City Council resolution or ordinance.

In procurement of goods or services for the city requirements, preference shall be given to those vendors who have a local presence in the City of Hollister, provided that the price, quality, terms, delivery, and service reputation are determined to be equal by the City Council under the criteria set forth in Section 3.06.240.

Contracts for goods or services may be awarded to a local vendor who is not the lowest responsive and responsible bidder but who has certified that it is a local vendor pursuant to this section and who is subject to taxation under the city's Uniform Local Sales and Use Tax Ordinance (Chapter 3.28 of the Hollister Municipal Code) if the amount of the difference between the local vendor and the lowest responsive and responsible bidder does not exceed five percent (5%) of the lowest responsive and responsible bid.

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To qualify as a local vendor, the entity submitting the bid or quotation must certify to all of the following at the time that the bid or quotation is submitted:

A. It has fixed facilities with employees located within the city limits; and B. It has a business street address (post office box or residential address shall not suffice to establish a local presence); and
C. All sales tax returns for the goods purchased must be reported to the state through a business within the geographical boundaries of the city, and the city will receive one percent or such percentage of sales tax of goods purchased as is allocable to the city from time to time under the existing state law; and D. It has a current city business license.

False certifications relating to local vendor preferences shall be immediate grounds for rejection of any bid or quotation, or in the case when the bid has been awarded, shall be grounds for voiding the bid or quotation, terminating any contract, and seeking damages thereto.

3.06.250 - Emergency purchases

An “Emergency” is defined as a situation in which an unforeseen circumstance constitutes a threat of physical injury or death to individuals and/or serious damage or destruction to public property. In case of Emergency, the City Manager is authorized to waive advertising and other bid solicitation procedures to purchase supplies, materials, equipment, or contractual services required for such Emergencies, without regard to amount limitation or prior approval by the City Council. When practical, the City Manager shall solicit informal bids and keep records of such solicitations prior to an award of order.

The City Manager shall report to the City Council at the next scheduled City Council meeting any Emergency purchases made on behalf of the city.

3.06.260 - Purchases without notice, advertisement, or competitive bids

Section deleted.

3.06.270 - Exceptions to the competitive process

Exceptions to the competitive bidding requirements are goods or services pertaining to, but not limited to, physicians, attorneys, appraisers, architects, engineers, auctioneers, consultants, arbitrators, designers, financial auditors, insurance, copyrighted materials, sole source items, gas, electricity, water, telephones, and cooperative purchasing with other governmental agencies, such as school districts, joint powers authorities, local, county, state or federal agencies, when it is to the advantage of the city to purchase from such other governmental agencies.

“Sole source” describes a product or service available from only one known supplier as the result of unique performance capabilities, manufacturing processes, compatibility requirements, or market conditions.

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An exemption from the competitive bidding process is not an exemption from any process necessary to establish a business relationship with a vendor, up to and including negotiating and executing an agreement or contract, as required by the City Attorney and/or City Manager.

3.06.280 - Purchasing preference for products containing recycled materials

The purchasing agent shall establish and maintain procedures and specifications to ensure that the city gives preference in its purchasing decisions to products containing the maximum amount of recycled materials, where the quality and fitness of such products is equal to those of products containing a lesser amount of or no recycled materials and where the total cost of such products is reasonable in comparison to the total cost of those products containing a lesser amount or no recycled materials.

For purposes of this section, "product containing recycled materials" means a "recycled paper product" as that term is defined in Section 12301(c) of the Public Contract Code with respect to a paper product, and with respect to all other products means a "recycled product" as that term is defined in Section 12301(d) of the Public Contract Code.

To the extent that the California Public Contract Code or other provisions of state law provide for purchasing preferences which are more extensive than those established herein, or for additional procedures to increase the use of recycled materials, the provisions of state law shall prevail.

3.06.290 - Public Works Contracts

The City of Hollister has adopted the California Uniform Public Construction Cost Accounting Act which streamlines solicitation for Public Works Projects. The Public Works Department is responsible for administering all Public Works Projects. Approvals for Public Works contracts are as follows:

A. Orders up to $60,000 require City Manager approval, based on an informal solicitation.

B. Orders between $60,000 and $200,000 require City Manager approval, based on an attempt to obtain at least three informal bids.

C. Orders over $200,000 require City Council approval, after a formal bid solicitation process.

Bid limits are periodically reviewed and subject to change.

Formal Bid Solicitation

Notice to contractors shall be provided in accordance with either paragraph (1) or (2), or both.

A. The city shall maintain a list of qualified contractors, identified according to categories of work. “Qualified Contractors” are contractors licensed by the State to perform the subject work.

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B. Minimum criteria for development and maintenance of the contractors list shall be pre-determined by the City. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids, unless the product or service is proprietary. All mailing of notices to contractors shall be completed not less than ten (10) calendar days before bids are due.

C. The city may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals specified in Public Contracts Code section 22036.

D. All projects that are estimated to cost in excess of $250,000 will include a Project Labor Agreement or Community Workforce Agreement as a part of the bid specifications.

The California Uniform Construction Cost Accounting Commission shall determine, on a county-by-county basis, the appropriate construction trade journals which shall receive mailed, faxed, or emailed notice of all informal and formal construction contracts being bid for work within the specified county.

The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids.

Best Value Procurement for Design-Build Projects

Best value procurement is a procurement process for construction services whereby a design and contractor team is selected based on objective criteria to determine the best combination of price and qualifications. Best value procurement may only be used for projects that utilize the for design/build delivery method, as defined by the Public Contracts Code. The City Manager, or designee, is authorized to solicit for Public Works Projects estimated to cost more than or equal to $1,000,000 using a best value process under the following conditions:

A. Selection Process and Criteria.

The city shall first prepare a set of documents setting forth the scope and estimated price of the project, after which the City must prepare and issue a request for qualifications to pre-qualify the design-build teams.

Based on the previously prepared set of documents, the City shall then prepare a request for proposals that invites the pre-qualified entities to submit competitive sealed proposals.

Best value specifications shall include, but not be limited to:

1. Criteria that the city will consider in evaluating bids.

2. The methodology and rating/weighting system that will be used to evaluate bids.

3. The relative importance or weight assigned to each criterion.

The City shall evaluate the qualifications of the bidders based solely upon the criteria set forth in the solicitation documents. The selection criteria used to evaluate the bidder A.2
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qualifications may include, but is not limited to, the following:

a. Safety record: The prior history concerning the safe performance of construction contracts.
b. Past performance: The satisfactory performance on prior city contracts. c. Labor compliance: The ability to comply with, and past performance compliance with, contract and statutory requirements for the payment of wages and qualifications of the workforce.
d. Project agreements: Participation in Project Labor Agreements and/or Community Workforce Agreements favorable to the city.
e. Demonstrated management competence: The experience,
competency, capability, and capacity of the specific project's proposed management staffing to timely complete projects similar in size, scope, or complexity to the project under consideration.
f. Financial condition: The financial resources needed to perform the contract. At a minimum, the criteria shall include a bidder's capacity to obtain all required bonds and insurance.
g. Project cost: The total direct and indirect project costs; including labor, materials, equipment, overhead and profit.
h. Relevant experience: The experience, competency, capability, and capacity to timely complete projects of similar size, scope, or complexity.

B. Final Selection and Award.

The City must award the contract to the lowest bidder that also meets the best value criteria.

The City Council retains the sole authority for approval and award of all best value procurements.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

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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. 1241 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 20, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Clerk
Jennifer Woodworth, City Clerk

TITLE OF ITEM: CLAIM AGAINST THE CITY - FILED BY SANDRA COPAS

BRIEF DESCRIPTION: Sandra Copas filed a claim against the City on October 20, 2023.

RECOMMENDATION: Deny the claim and authorize staff to send the notice of rejection to the claimant.

DEPARTMENT SUMMARY: Sandra Copas filed a claim against the City on October 20, 2023. Staff sent a copy of this claim to the City’s risk manager/claims adjuster and scheduled it to be heard by the City Council in closed session on November 20, 2023.

The City Council recommended the denial of the claim. Staff seeks authorization to send the notice of rejection of claim to the claimant.

FINANCIAL IMPACT: Unknown

CEQA: Exempt

ATTACHMENTS:

1. 20231020_Sandra Copas_Redacted

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 20, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Clerk
Jennifer Woodworth, City Clerk

TITLE OF ITEM: CLAIM AGAINST THE CITY - FILED BY MANUEL DIAZ

BRIEF DESCRIPTION: Manuel Diaz filed a claim against the City on October 11, 2023.

RECOMMENDATION: Deny the claim and authorize staff to send the notice of rejection to the claimant.

DEPARTMENT SUMMARY: Manuel Diaz filed a claim against the City on October 11, 2023. Staff sent a copy of this claim to the City’s risk manager/claims adjuster and scheduled it to be heard by the City Council in closed session on November 20, 2023.

The City Council recommended the denial of the claim. Staff seeks authorization to send the notice of rejection of claim to the claimant.

FINANCIAL IMPACT: Unknown

CEQA: Exempt

ATTACHMENTS:

1. 20231011_Manuel Diaz_Redacted

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 15, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Manager
David Mirrione, City Manager

TITLE OF ITEM: RESOLUTION NO. 2023-238, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER APPROVING THE CITY OF HOLLISTER'S

INTERNAL AND EXTERNAL LOGO USE POLICY

BRIEF DESCRIPTION: This item will adopt a Resolution approving the Internal and External Logo Use Policy for the City of Hollister.

RECOMMENDATION: Adopt a Resolution approving the City of Hollister’s Internal and External Logo Use Policy.

DEPARTMENT SUMMARY: The City of Hollister City Council approved resolution 2023-155 on August 7, 2023, to replace the temporary 150th anniversary city logo with a new city logo. Staff worked with Creative GDS to create an updated logo similar to the celebratory 150th anniversary logo that incorporates the clock tower but removes the 150-year reference.

Since its approval by the City Council, staff has continued to make progress in the transition of the new brand to include both digital assets (email, social media, videos, website, etc.) and physical assets (vehicles, business cards, signage, etc.). Staff submitted the new City of Hollister logo and supporting documentation to the California Secretary of State for a Service Mark approval. The California Secretary of State officially approved the City of Hollister logo as a Service Mark on September 9, 2023.

As part of the rebranding process staff have drafted a logo use policy as a resource and guideline to assist the Council, City departments, employees, and partners in properly deploying the new brand assets.

This policy is to assist the needs of future branding, the City may modify or change the terms of this policy from time to time without notice. Compliance with any modifications to the logo policy is the logo user’s responsibility. If the logo is used regularly, it is encouraged to review this policy and become familiar with alterations as they are published.

FINANCIAL IMPACT: N/A

CEQA: N/A

ATTACHMENTS:

1. Draft for Approval City of Hollister Internal and External Logo Use Policy

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THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-238

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING THE CITY OF HOLLISTER'S INTERNAL AND EXTERNAL LOGO USE POLICY

WHEREAS, this Administrative Policy Instruction (API) applies to all City of Hollister (City) employees and members of the public wishing to use the City logo for official City business; and
WHEREAS, all logo use shall be performed within the scope of this City logo use policy ; and

WHEREAS, the City logo exemplifies the organization's tone, aesthetics, and values; and

WHEREAS, this policy provides use guidelines for the City logo and its subsidiaries.

This policy aims to maintain the logo's integrity from alterations that could harm the City’s brand.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby approve and adopt the City of Hollister Internal and External Logo Use Policy and authorizes the City Manager to administer the Policy.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 2023-238, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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City of Hollister Logo Use Policy 1

CITY OF HOLLISTER POLICY NUMBER
Date 11/15/2023
ADMINISTRATIVE POLICY Authority: City Manager

SUBJECT: Internal and External Logo Use Policy

Scope and Purpose

1.1 Purpose and Scope
• This Administrative Policy Instruction (API) applies to all City of Hollister (City) employees and members of the public wishing to use the City logo for official City business. All logo use shall be performed within the scope of this City logo use policy.

2.0 Objectives
• The City logo exemplifies the organization's tone, aesthetics, and values. This policy provides use guidelines for the City logo and its subsidiaries. This policy aims to maintain the logo's integrity from alterations that could harm the City ’s brand.

2.1 Responsibilities
• To meet the needs of future branding, the City may modify or change the terms of this policy from time to time without notice. Compliance with any modifications to the logo policy is the logo user’s responsibility. If the logo is used regularly, please review this policy and become familiar with alterations as they are published. • The logo is the exclusive property of the City. An official digital copy of the City logo is on file with the City Manager's Office. Any use of the logo implies acceptance of and agreement with the terms of this policy. If the user does not accept or agree to the responsibilities and requirements outlined in this policy, the user will be declined authorization of use. The user must cease using the City logo if a ny violation of this policy occurs. In addition, the City has the right, at its sole discretion, to decline approval of use of the City logo.

2.3 Authorization for Conditional Logo Use
• Permission will be granted to use the logo under the following circumstances:
• The logo may be used on approved marketing or other publicity materials for the benefit of the City with the permission of the City Manager's Office. • The logo may affiliate with sponsors, community events, websites, products, and services, with prior permission of the City Manager’s Office. • Vendors may not use the logo to advertise the City as clients on vendor websites and/or promotional pieces without prior permission of the City Manager’s Office.

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City of Hollister Logo Use Policy 2

• Written materials, such as web pages, must be marked to indicate that the logo used is owned by the City or its affiliates (for example, by using a statement such as, “the City of Hollister logo is a registered trademark of the City of Hollister"). • All goodwill generated by the logo shall be to the benefit of the City.

2.4 Logo Use Guidelines
• The City logo is a distinctive, designed graphic artwork. The following usage guidelines must be followed:
• Do not modify or alter the logo.
• Do not change the scale, skew, or rotate the logo.
• Do not change the design of the logo.
• Do not change or vary the colors of the logo, except that the logo may be all black or all white.
• Upon request from the City Manager's Office, you must provide samples of any materials that include the logo to determine compliance with this policy. • Parties must make any changes to use of the logo that the City requests. • Business partners who have agreements with the City must comply with the terms of their agreement in addition to this policy.
• If a party would like to use the City logo in a manner not covered by this policy or for further information or clarification about using the logo, please contact [email protected].

2.5 Unauthorized Use Guidelines
• The logo will not be used in any way that mischaracterizes the City. • The logo may not be used or displayed in any of the following ways:
• In any manner that tarnishes the City of Hollister's reputation and goodwill; • In any manner that infringes, dilutes, depreciates the value, or impairs the rights of the City in the logo.
• In any manner that is false or misleading.
• In connection with any illegal activities or defamatory, obscene, or otherwise objectionable materials.
• In any manner that violates the trademark, copyright, or any other intellectual property rights of others.
• In any manner that violates any law, regulations, or other public policy. • Or as part of the name of a product or service of a company other than the City.

3.0 External Logo Request
• External parties who would like to use the City logo should email the following information to the City Manager’s Office at [email protected]:
• Name (First and Last)
• Contact Information (Email, Phone Number)
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City of Hollister Logo Use Policy 3

• Organization Name
• Organization Details (Name, Location, Website, Email, Phone) • Reason for Request (Event, Sponsorship, etc.)
• Detailed description of how the logo will be used.

4.0 Permitted Logo Use for City Purposes
• The City logo may be used with express authorization from a City department director or department head. If needed, staff may seek direction from the City Manager.
• The internal department may only use the likeness of the City logo for merchandise and official business, provided they are used in a clear representation of the department and the City.

4.1 Authorized Internal Use
• The City of Hollister department heads are authorized to affix the City logo to all certificates and documents as required.
• All other uses of the City logo are restricted to official City business and other appropriate uses that further the City's operations and may be authorized by the City Manager or as permitted in this City policy.
• City officials, City employees, City council members, and City boards and commissions may use stationery, printed materials, and other City documents containing the City logo while acting within the scope of their office, employment, elected or appointed position. City stationary can be requested from City staff.

4.2 Unauthorized Internal Use
• No person, including any elected officer of the City, may use the City seal or City logo in any correspondence or other printed materials distributed in favor of or against any ballot measure or favor of or against any candidate for public office.

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 27, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Manager
David Mirrione, City Manager

SPONSOR(S): Resendiz

TITLE OF ITEM: RESOLUTION NO. 2023-239, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING COUNCILMEMBER RESENDIZ TO UP TO $2,500 OF CITY COUNCIL BUDGETED FY 23/24 DISCRETIONARY FUNDS FOR THE 2023 LAS POSADAS CELEBRATION EVENTS

BRIEF DESCRIPTION: A resolution of the City Council of Hollister authorizing Councilmember Resendez to use up to $2,500 of FY 23/24 City Council budgeted discretionary funds for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano and authorize the City Manager to execute a contract between the City of Hollister and Jovenes de Antano to support these events.

DEPARTMENT SUMMARY: In June 2023, City Council adopted a Discretionary Funds Policy, which governs the use of Council discretionary funds to benefit the community and/or by local organizations that provide community, environmental, and social services that benefit the City’s community and enhance the well -being of its residents.

To help fund these needs, the City budgets a discretionary amount annually for each City Councilmember for the purpose of improving the quality of life for the residents of the City of Hollister.

As per Section 2.1-C of the Discretionary Fund Policy, approval of the City Council requires a majority vote of the City Council at a public City Council meeting.

Councilmember Resendiz requests the approval of the City Council to use up to $2,500 FY 23/24 budgeted discretionary funds to use for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano and authorize the City Manager to execute a contract between the City of Hollister and Jovenes de Antano to support these events.

FINANCIAL IMPACT: Not to exceed $2,500 –
FY 23/24 – 101-1105-730008 – Discretionary Funds – District 2

CEQA: N/A
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THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-239

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING COUNCILMEMBER RESENDIZ TO UP TO $2,500 OF CITY COUNCIL BUDGETED FY 23/24 DISCRETIONARY FUNDS FOR THE 2023 LAS POSADAS

CELEBRATION EVENTS

WHEREAS, the City Council adopted a Discretionary Fund Policy which governs the use of Council Discretionary funds to benefit the community and/or by local organizations that provide community, environmental, and social services that benefit the City’s community and enhance the well-being of its residents; and

WHEREAS, to help fund these needs, the City budgets a discretionary amount annually for each City Councilmember for the purpose of improving the quality of life for the residents of the City of Hollister; and

WHEREAS, as per Section 2.1C of the Discretionary Fund Policy, an approval of the City Council at a public City Council meeting; and

WHEREAS, Councilmember Resendiz requests City Council approval to use up to $2,500 of FY 23/24 budgeted discretionary funds for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano; and

WHEREAS, authorize the City Manager to execute a contract between the City of Hollister and the Jovenes de Antano to support these events.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister approve Councilmember Resendiz to use City Council budgeted discretionary funds for the 2023 Las Posadas Celebration events in partnership with Jovenes de Antano – not to exceed $2,500 FY 23/24 – 101-1105-730008 – Discretionary Funds – District 2 and authorize the City Manager to execute a contract between the City of Hollister and the Jovenes de Antano.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
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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. 2023-239, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 30, 2023
DEPARTMENT:

DEPARTMENT HEAD:

City Manager
David Mirrione, City Manager

TITLE OF ITEM: RESOLUTION NO. 2023-240, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AFFIRMING THE CITY OF HOLLISTER’S

SUPPORT FOR AN IMMEDIATE CEASEFIRE IN GAZA AND ISRAEL

BRIEF DESCRIPTION: At the November 20, 2023 City Council meeting, the City Council directed staff to bring forward an item calling for a ceasefire to urgently end the current violence in Gaza and Israel.

RECOMMENDATION: Adopt a resolution calling for a ceasefire to urgently end the current violence.

DISCUSSION: At the November 20, 2023 City Council meeting, the City Council directed staff to bring forward an item calling for a ceasefire to urgently end the current violence in Gaza and Israel. If approved, a copy of this resolution be sent to the offices of Assemblymember Robert Rivas, State Senator Anna Caballero, Governor of California Gavin Newsom, U.S. Congressional Representative Zoe Lofgren, U.S. Senator Laphonza Butler, U.S.

Senator Alex Padilla, and U.S. President Joe Biden, urging them to take immediate action to use their position and influence to end violence.

FINANCIAL IMPACT: N/A

CEQA: Not a project under CEQA.

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-240

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AFFIRMING THE CITY OF HOLLISTER’S SUPPORT FOR AN IMMEDIATE CEASEFIRE IN GAZA

AND ISRAEL

WHEREAS, the City of Hollister recognizes the importance of peace and security for all communities and nations around the world regardless of national, ethnic or religious affiliations; and

WHEREAS, the City of Hollister advocates for the safety, dignity, freedom, and equality of all people, regardless of religion, race, or nationality; and

WHEREAS, the City of Hollister recognizes that all human life is precious; and

WHEREAS, since October 7, 2023, armed violence has claimed the lives of and wounded thousands of individuals in Gaza and Israel; and

WHEREAS, lives continue to be at imminent risk if a ceasefire is not achieved without delay; and

NOW, THEREFORE, BE IT RESOLVED that the City of Hollister joins other cities in calling on our Congress Members to demand an immediate ceasefire to urgently end the current violence in Gaza and Israel.

NOW BE IT FURTHER RESOLVED that a copy of this resolution be sent to the offices of Assemblymember Robert Rivas, State Senator Anna Caballero, Governor of California Gavin Newsom, U.S. Congressional Representative Zoe Lofgren, U.S. Senator Laphonza Butler, U.S.

Senator Alex Padilla, and U.S. President Joe Biden, urging them to take immediate action to use their position and influence to end violence.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 2023-240, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 14, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Engineering
William Via, Community Services
Director

TITLE OF ITEM: RESOLUTION NO. 2023-241, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER REPEALING RESOLUTION NO. 2010-135

WHICH ESTABLISHED CERTAIN STREETS AND PORTIONS THEREOF AS TRUCK

ROUTES AND APPROVING CERTAIN STREETS OR PORTIONS THEREOF IN THE

CITY OF HOLLISTER AS TRUCK ROUTES

BRIEF DESCRIPTION: Consider (1) repealing Resolution No. 2010-135 which established certain streets and portions thereof as truck route and (2) approving certain streets and portions thereof in the City of Hollister as truck routes.

RECOMMENDATION: Repeal Resolution No. 2010-135 and Adopt a resolution approving the designation of certain streets and portions thereof in the City of Hollister as truck routes.

DEPARTMENT SUMMARY: On October 18, 2010, the City Council of the City of Hollister adopted Resolution No. 2010-135, repealing Resolution No. 81-17 and defining and establishing certain streets and parts thereof in the City of Hollister as truck routes.

City of Hollister Municipal Code Section 10.32.010.A reads “Whenever any resolution of this city designates and describes any street or portion thereof as a street the use of which is permitted by any vehicle exceeding a maximum gross weight limit of three tons, the city traffic engineer is authorized to designate such street or streets by appropriate sign as "Truck Routes" for the movement of vehicles exceeding a maximum gross weight limit of three tons.”

The City of Hollister has historically designated specific roads as truck routes to direct commercial and industrial traffic within the City. The purpose of these truck routes is to provide clear and efficient access for commercial trucks, including those servicing local retailers and other industrial and commercial users in the City.

As determined by the City Engineer, truck routes will be provided on roads that will provide access to local retailers, such as San Benito Foods, and other commercial and industrial users in the City. Trucks may leave these designated truck routes to make local deliveries and pick-ups, but must return to the truck route once the deliveries are made in order to leave the City.

It is important to note that the roadways in the northern section of the City, particularly those near the Hollister Airport, will not be affected by this resolution. This exemption recognizes the unique characteristics and requirements of that area, which do not warrant inclusion in the designated truck route.

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FINANCIAL IMPACT: Public Works Department will be required to remove, replace, move, and/or install new signs, which will be a nominal cost.

CEQA: N/A

ATTACHMENTS:

1. Exhibit A Truck Route Layout

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-241

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER REPEALING RESOLUTION NO. 2010-135 WHICH ESTABLISHED CERTAIN

STREETS AND PORTIONS THEREOF AS TRUCK ROUTES AND APPROVING

CERTAIN STREETS OR PORTIONS THEREOF IN THE CITY OF HOLLISTER AS

TRUCK ROUTES

WHEREAS, the City of Hollister recognizes the need to establish and periodically update designated truck routes within the City; and

WHEREAS, the City Engineer has reviewed the existing truck routes and recommends the establishment of the proposed designated truck route; and

WHEREAS, the roadways in the northern section of the City near the Hollister Airport shall be exempt from this resolution; and

WHEREAS, City staff is directed to take all necessary actions to implement this designated truck route, including installation of appropriate signage,

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister resolves as follows:

Section 1. Resolution No. 2010-135 of the City of Hollister is repealed.

Section 2. The streets or portion of streets in the City of Hollister hereinafter as described in Exhibit A are defined and established as truck routes and shall be governed by the provisions of Section 56 of Ordinance No. 303 of the City of Hollister.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

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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. 2023-241, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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New Truck Route
EXHIBIT A A.8.a
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 20, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Engineering
Mark Falgout, Acting City
Engineer

TITLE OF ITEM: RESOLUTION NO. 2023-242, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER GRANTING ACCEPTANCE OF PUBLIC

IMPROVEMENTS AND APPROVING REDUCTION IN PERFORMANCE BOND FOR WEST OF FAIRVIEW PHASE 1A SUBDIVISION

BRIEF DESCRIPTION: This Resolution will grant acceptance of the public improvements installed as part of the West of Fairview Phase 1A subdivision and will approve the bond reduction for the subdivision.

DEPARTMENT SUMMARY: Award Homes Inc. and subsequently, per section 31 of the Subdivision Improvement Agreement (Transfer and Assignment), Meritage Homes of California Inc. entered into a Subdivision Improvement Agreement with the City of Hollister. Said agreement required Meritage Homes of California Inc. to install certain public improvements for the West of Fairview Phase 1A Subdivision and to bond as a way to secure the improvements. The Engineering Department has made an inspection of the Public Improvements for the West of Fairview Phase 1A Subdivision and found that all requirements have been met.

FINANCIAL IMPACT: Maintenance of Improvements are covered under Community Facilities District No. 4

CEQA: N/A

ATTACHMENTS:

1. Exhibit A

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-242

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER GRANTING

ACCEPTANCE OF PUBLIC IMPROVEMENTS AND APPROVING REDUCTION IN PERFORMANCE BOND FOR WEST OF FAIRVIEW PHASE 1A SUBDIVISION

WHEREAS, the Final Map for West of Fairview Phase 1A Subdivision (“The Project”) was approved by the City Council of the City of Hollister (“City Council”) on November 18, 2019, under and pursuant to the provisions of the Subdivision Improvement Agreement (“SIA”) between Award Homes Inc. and subsequently per section 31 of the Subdivision Improvement Agreement (Transfer and Assignment) Meritage Homes of California Inc. (“Developer”); and the City of Hollister (“City”) (collectively, the “Parties”); and

WHEREAS, Meritage Homes of California Inc., as Principal, and XL Specialty Insurance Company, as Surety, executed and posted a certain Faithful Performance Bond No. US00106155SU21A conditioned upon the faithful performance of the provisions of the SIA and upon the faithful performance of all Public Improvements work required thereunder; and

WHEREAS, as of November 7, 2023 the Public Improvements for the West of Fairview Phase 1A Subdivision have been completed; and

WHEREAS, the SIA provides that the security shall extend for a period of one year after the date of acceptance of Public Improvements to cover the warranty period of said improvements; and

WHEREAS, the City Council is willing to consent to a reduction in the penal sum of said security during said one-year warranty period; and

WHEREAS, the Engineering Division has made an inspection of the Public Improvements for the West of Fairview Phase 1A Subdivision and recommends that the City Council accept the Public Improvements as constructed in accordance with the approved plans and specifications.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby finds, determines, and resolves as follows:

1. The Public Improvements installed within the West of Fairview Phase 1A Subdivision (Exhibit A), are hereby accepted as constructed in accordance with the approved plans and specifications upon recommendation of the Engineering Division.

2. The penal sum of that certain Security furnished by the above -named Subdivider, as
Principal, and the above-named Surety in connection with the SIA West of Fairview Phase 1A Subdivision may be reduced to the sum of $308,880.00, upon request of said Principal and Surety, said penal sum as reduced to A.9
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apply from the date of completion and acceptance of said improvements and to extend for the balance of the term of one year of said security. Provided, however, that nothing herein contained shall in any way be deemed to be a waiver, release or relinquish by City of any obligations imposed upon the Subdivider or his/its Surety, or sureties, by law or by the SIA, save and except as expressly set forth herein.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 2023-242, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 20, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Fire
Rodney Dover, Interim Fire Chief

TITLE OF ITEM: RESOLUTION NO. 2023-243, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER TO ACCEPT THE PROPOSALS RECEIVED, AWARD A CONTRACT IN THE AMOUNT OF $314,656.13 TO

COMMUNITY TREE SERVICES AND AUTHORIZE THE EXECUTION OF A CONTRACT FOR THE SAN BENITO COUNTY FUEL REDUCTION PROJECT.

BRIEF DESCRIPTION: This resolution will accept the proposals opened on October 9, 2023 and award a contract to Community Tree Services for the San Benito County Fuel Reduction 23/24 Project.

RECOMMENDATION: Adopt a resolution accepting the proposals and awarding the contract to Community Tree Services for the San Benito County Fuels Reduction 23/24 Project.

DEPARTMENT SUMMARY: On August 7, 2023, the San Benito County Fuel Reduction Project was approved by the City Council and staff was authorized to call for sealed proposals. On October 6, 2023, four (4) proposals were received. The bids were opened on October 9th, 2023. The most qualified proposal bid received was Community Tree Services. One proposal was disqualified for not having all documents necessary, one proposal withdrew from the bid and refused to be awarded, and the other proposal's scope of work did not include all the work needed to be performed for the Project. The bid tabulation is attached.

Staff is requesting the City Council do the following: Accept the proposals received, award the contract to the most qualified proposal bid, and authorize the Mayor to execute the contract with Community Tree Services.

FINANCIAL IMPACT: No financial impact. All funds are distributed from the Grant Agreement No. 5GG21118; City of Hollister, "San Benito County Fuels Reduction" from the State of California Department of Forestry and Fire Protection (CAL FIRE)

CEQA: CEQA documents have been fulfilled for this project.

ATTACHMENTS:

1. BID TABULATION CRITERION SCORING

2. Fuel Reduction General Services Agreement CTS Signed 11.28.23 FINAL

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
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David Mirrione, City Manager

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RESOLUTION NO. 2023-243

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER TO

ACCEPT THE PROPOSALS RECEIVED, AWARD A CONTRACT IN THE AMOUNT OF $314,656.13 TO COMMUNITY TREE SERVICES AND AUTHORIZE THE

EXECUTION OF A CONTRACT FOR THE SAN BENITO COUNTY FUEL
REDUCTION PROJECT.

WHEREAS, on August 7, 2023, the City Council authorized staff to solicit proposals for the San Benito County Fuel Reduction Project; and

WHEREAS, on August 29, 2023, staff called for sealed proposals; and

WHEREAS, on October 6th, 2023, four (4) bids were received; and

WHEREAS, the most qualified proposal bid was received from Community Tree Services.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister accepts the proposals and awards a contract to Community Tree Services for the bid amount of $314,656.13.

BE IT FURTHER RESOLVED, that the City Council of the City of Hollister authorizes the Mayor to execute a contract with Community Tree Services.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 2023-243, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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CRITERION SCORES FOR PROPOSALS

SAN BENITO COUNTY FUEL REDUCTION PROJECT
as described in the RFP

A-1 Tree Service
-DID NOT INCLUDE ALL WORK IN THEIR SCOPE OF WORK NEEDED TO BE PERFORMED FOR THE PROJECT -DID NOT LIST SUBCONTRACTORS THEY WOULD USE

Criterion Weight Score = Rating
Price, including alternative scopes 30% 5 15%
Experience 40% 8 32%
References 10% 8 8%
Technical Expertise 20% 8 16%
TOTAL 100% 29 71%

Longs Custom Discing
-RECEIVED HIGHEST SCORING, BUT WITHDREW FROM THE BID AND REFUSED TO BE AWARDED

CONTRACT

Criterion Weight Score = Rating
Price, including alternative scopes 30% 9 27%
Experience 40% 10 40%
References 10% 10 10%
Technical Expertise 20% 10 20%
TOTAL 100% 39 97%

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Community Tree Service

Criterion Weight Score = Rating
Price, including alternative scopes 30% 10 30%
Experience 40% 9 36%
References 10% 9 9%
Technical Expertise 20% 9 18%
TOTAL 100% 38 93%

Julian Tree Care Inc.

DISQUALIFIED DUE TO NOT PROVIDNG ALL NECESSARY DOCUMENTS WITHIN BID -DID NOT INCLUDE PROPOSAL BOND OR DEPOSIT & MISSING ADDENDUMS

Criterion Weight Score = Rating
Price, including alternative scopes 30%

Experience 40%

References 10%

Technical Expertise 20%

TOTAL 100%

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{SR766261}

CITY OF HOLLISTER

GENERAL SERVICES AGREEMENT

This services agreement (“Agreement”) is made and entered into effective November 14, 2023 (the “Effective Date”), by and between the City of Hollister (“City”) and Community Tree Service, LLC (“Contractor” and together with City, the “Parties”).

1. Contractor Services. Contractor agrees to provide the following services to City (collectively, the “Basic Services”): For the San Benito County Fuels Reduction project (“Project”), Mowing, Tree Trimming, and Herbicide Application (as further described in Exhibit A to this Agreement).

Contractor shall provide services related to the Project other than Basic Services (i.e., “Additional Services”) if directed in writing by City to perform specific Additional Services and if sufficient contract funds for Additional Services remain to pay for the directed Additional Services (see Section 5, below). “Services” shall mean Basic and Additional Services. Contractor agrees to perform such Services as expeditiously as is consistent with professional skill and care and the orderly progress of the Services and the Project. All services performed by the Contractor under this Agreement shall be conducted in a manner consistent with the level of care and skill ordinarily exercised by Vegetation professionals specially qualified to provide the services required by the City.

2. Contractor Qualifications. Contractor represents and warrants to City that Contractor, and all of Contractor’s employees, agents or volunteers (the “Contractor Parties”), have in effect and shall maintain in full force throughout the Term of this Agreement all licenses, credentials, permits and any other qualifications required by law to perform the Services and to fully and faithfully satisfy all of the terms set forth in this Agreement. Contractor and any Contractor Parties performing Services shall be competent to perform those Services.

3. Term. The term for performance of the Services shall be the duration of the Project (“Term”), except as otherwise stated in Section 4 below, and Contractor shall complete the Services within the Term. There shall be no extension of the Term without an amendment signed by all Parties and approved by the City’s governing board. Written notice by the City Manager or designee shall be sufficient to stop further performance of the Services by Contractor or the Contractor Parties. In the event of early termination, Contractor shall be paid for satisfactory Services performed to the date of termination.

Upon payment by City, City shall be under no further obligation to Contractor, monetarily or otherwise, and City may proceed with the work in any manner City deems proper. The term for performance of the Services shall begin on December 14, 2023 and shall end on December 31, 2024 (“Term”), except as otherwise stated in Section 4 below, and Contractor shall complete the Services within the Term. There shall be no extension of the Term without an amendment signed by all Parties and approved by the City’s governing board. Written notice by the City Manager or designee shall be sufficient to stop further performance of the Services by Contractor or the Contractor Parties. In the event of early termination, Contractor shall be paid for satisfactory Services performed to the date of termination. Upon payment by City, City shall be under no further obligation to Contractor, monetarily or otherwise, and City may proceed with the work in any manner City deems proper.

4. Termination. Either Party may terminate this Agreement at any time by giving thirty (30) days advance written notice to the other Party. Notwithstanding the foregoing, City may terminate this A.10.b
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Page - 2 - Community Tree Service, LLC
General Services Agreement
{SR766261}
Agreement at any time by giving written notice to Contractor if (1) Contractor materially breaches any of the terms of this Agreement; (2) any act or omission of Contractor or the Contractor Parties exposes City to potential liability or may cause an incre ase in City’s insurance premiums; (3) Contractor is adjudged a bankrupt; (4) Contractor makes a general assignment for the benefit of creditors; or (5) a receiver is appointed because of Contractor’s insolvency. Such termination shall be effective immediately upon Contractor’s receipt of the notice.

5.Payment of Fees for Services. City agrees to pay Contractor based on a lump sum price for Basic Services satisfactorily performed. Contractor shall not increase these hourly rates over the course of this Agreement. Total fees paid by City to Contractor for Services under the Agreement shall not exceed Three Hundred and Fourteen Thousand, Six Hundred and Fifty Six Dollars and Thirteen Cents ($314,656.13), which consists of a lump sum of Three Hundred and Fourteen Thousand, Six Hundred and Fifty Six Dollars and Thirteen Cents ($314,656.13), for performance of the Basic Services, and a not-to-exceed amount of N/A Dollars ($_________) for performance of any Additional Services. City agrees to make payment for Basic Services within sixty (60) days of receipt of a detailed invoice from Contractor based on percentage of work completed, including any additional supporting documentation that City reasonably requests. City agrees to make payment for Additional Services within sixty (60) days of receipt of a detailed invoice from Contractor based on hours worked and hourly rates, including any additional supporting documentation that City reasonably requests. Contractor shall not submit its invoices to City more frequently than monthly.

5.1 Reimbursement for Certain Expenses. Contractor shall not be reimbursed directly for any of its expenses, as the fees to be paid under this Agreement include compensation for any and all of Contractor’s expenses.

6.Indemnity. Contractor shall defend, indemnify, and hold harmless City and its agents, representatives, officers, consultants, employees, and City Council (collectively, the “City Parties”), from and against any and all claims, demands, liabilities, damages, losses, suits and actions, and expenses (including, but not limited to attorney fees and costs including fees of consultants) of any kind, nature and description (collectively, the “Claims”) directly or indirectly arising out of, connected with, or resulting from any act, error, omission, negligence, or willful misconduct of Contractor, the Contractor Parties or their respective agents, subcontractors, employees, material or equipment suppliers, invitees, or licensees in the performance of or failure to perform Contractor’s obligations under this Agreement, including, but not limited to Contractor’s or the Contractor Parties’ use of the site, Contractor’s or the Contractor Parties’ performance of the Services, Contractor’s or the Contractor Parties’ breach of any of the representations or warranties contained in this Agreement, or for injury to or death of persons or damage to property or delay or damage to the City or the City Parties. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity, which would otherwise exist as to a party, person, or entity described in this paragraph. The indemnification provided for in this Section 6 includes, without limitation to the foregoing, claims that may be made against City by any taxing authority asserting that an employer-employee relationship exists by reason of this Agreement, and any claims made against City alleging civil rights violations by Contractor or Contractor Parties under the California Fair Employment and Housing Act (“FEHA”).

7.Equipment and Materials. Contractor at its sole cost and expense shall provide and furnish all tools, labor, materials, equipment, transportation services and any other items (collectively, “Equipment”) which are required or necessary to perform the Services in a manner which i s consistent N/A
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with generally accepted standards of the profession for similar services. Notwithstanding the foregoing, City shall not be responsible for any damages to persons or property as a result of the use, misuse or failure of any Equipment used by Contractor or the Contractor Parties, even if such Equipment is furnished, rented or loaned to Contractor or the Contractor Parties by City. Furthermore, City may reject any Equipment or workmanship that does not conform to the requirements of this Agreement and Contractor must then promptly remedy or replace it at no additional cost to City and subject to City’s reasonable satisfaction.

8. Insurance. Without in any way limiting Contractor’s liability, or indemnification obligations set forth in Section 6 above, Contractor shall secure and maintain throughout the Term of this Agreement the following insurance: (i) comprehensive general liability insurance with limits of not less than $2,000,000 each occurrence and $4,000,000 in the aggregate; (ii) commercial automobile liability insurance with limits not less than $1,000,000 each occurrence and $2,000,000 in the aggregate; (iii) worker’s compensation insurance as required by Labor Code section 3200, et seq.; and (iv) professional liability insurance covering errors and omissions. Neither Contractor nor any of the Contractor Parties shall commence performing any portion of the Services until all required insurance has been obtained and certificates indicating the required coverages have been delivered to and approved by City. All insurance policies shall include an endorsement stating that City and City Parties are named additional insureds. All of the policies shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days’ prior written notice has been given to City. If such a notice is not given or even if City receives a notice, City may, at its sole option, terminate this Agreement. All insurance policies shall include an endorsement stating that it is primary to any insurance or self-insurance maintained by City and shall waive all rights of subrogation against City and/or the City Parties. A copy of the declarations page of Contractor’s insurance policies shall be attached to this Agreement as proof of insurance.

9. Independent Contractor Status. The Parties agree that Contractor is free from the control and direction of City in connection with Contractor’s performance of the Services. Contractor is hereby retained to provide the specified Services for City, which are outside the usual course of City’s business.

Contractor certifies that it is customarily engaged in an independently established trade, occupation, or business to provide the Services required by this Agreement. Contractor understands and agrees tha t Contractor and the Contractor Parties shall not be considered officers, employees, agents, partners, or joint venturers of City, and are not entitled to benefits of any kind or nature normally provided to employees of City and/or to which City’s employees are normally entitled.

10. Taxes. All payments made by City to Contractor pursuant to this Agreement shall be reported to the applicable federal and state taxing authorities as required. City will not withhold any money from fees payable to Contractor, including FICA (social security), state or federal unemployment insurance contributions, or state or federal income tax or disability insurance. Contractor shall assume full responsibility for payment of all federal, state and local taxes or contributions, including unemployment insurance, social security and income taxes with respect to Contractor and the Contractor Parties and otherwise in connection with this Agreement.

11. Confidential Information. All City information disclosed to Contractor during the course of performance of services under this Agreement shall be treated as confidential and shall not be disclosed to any other persons or parties excepts as authorized by City, or required by law.

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12. Designation of Key Personnel. The individuals specified in the attached Exhibit B shall provide the services set forth herein and shall be the persons primarily in charge of such work. No other individuals may provide services for Contractor on this project without first obtaining the written approval of the City Manager.

13. Assignment/Successors and Assigns. Contractor shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations under this Agreement without the prior written consent of City. Subject to the foregoing, this Agreement shall be binding on the heirs, executors, administrators, successors, and assigns of the respective Parties.

14. Conflict of Interest. Contractor warrants that neither Contractor, nor any of its employees, agents or subcontractors, has an actual or potential conflict of interest with the City in respect to the Services to be performed under this Agreement for the District. None of such individuals shall, during this term of this Agreement, acquire any interest which conflicts, or could potentially conflict, in any manner with the interests of the District.

15. Notice to Proceed; Progress; Completion. Upon execution of this Agreement by the parties and approval of it by the City Council, City shall give Contractor written notice to proceed with the Services. Such notice may authorize Contractor to render all the Services contemplated herein, or such portions or phases as may be directed by the City. In the latter event, City shall, in its sole discretion, issue subsequent notices from time to time regarding further portions or phases of the Services. Upon receipt of such notices, Contractor shall diligently proceed with the Services authorized and complete it within the agreed time period.

16. Severability. If any provision of this Agreement shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement.

17. Amendments. The terms of this Agreement shall not be waived, altered, modified, supplemented or amended in any manner whatsoever except by written agreement signed by both Parties and approved by the City Council.

18. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, excluding its choice of law rules. Any action or proceeding seeking any relief under or with respect to this Agreement shall be brought solely in the Superior Court of the State of California for the County of San Benito subject to transfer of venue under applicable State law, provided that nothing in this Agreement shall constitute a waiver of immunity to suit by the City.

19. Written Notice. Written notice shall be deemed to have been duly served if delivered in person to Contractor at the address located next to the party signatures below, or if delivered at or sent by registered or certified or overnight mail to the last business address known to the person who sends the notice.

20. Compliance with Law. Each and every provision of law and clause required by law to be inserted into this Agreement shall be deemed to be inserted herein and this Agreement shall be read and enforced as though it were included therein. Contractor shall comply with all applicable federal, state, and local laws, rules, regulations and ordinances. Contractor agrees that it shall comply with all legal requirements A.10.b
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for the performance of duties under this Agreement and that failure to do so shall constitute material breach.

21. Non-Discrimination. There shall be no unlawful discrimination in the contracting of persons under this Agreement because of race, color, national origin, age, ancestry, religion, sex, or sexual orientation of such persons.

22. Attorneys’ Fees. If a party to this Agreement commences a legal action against the other party to enforce a provision of this Agreement or seek damages related to the services provided under this Agreement, the prevailing party in the legal action will be entitled to recover from the other party all of its reasonable litigation expense, costs, and fees actually incurred, including reasonable attorneys’ and experts’ fees.

23. Liability of City. Notwithstanding anything stated herein to the contrary, City shall not be liable for any special, consequential, indirect or incidental damages, including but not limited to lost profits in connection with this Agreement.

24. Time. Time is of the essence for performance of the Services under this Agreement.

25. Waiver. No delay or omission by either Party in exercising any right under this Agreement shall operate as a waiver of that or any other right and no single or partial exercise of any right shall preclude either Party from any or further exercise of any right or remedy.

26. Reports. Contractor shall maintain complete and accurate records with respect to the Services rendered and the costs incurred under this Agreement, including records with respect to any payments to employees and subcontractors. All such records shall be prepared in accordance with generally accepted accounting procedures. Upon request, Contractor shall make such records available to City for the purpose of auditing and copying such records for a period of five years from the date of final payment under this Agreement.

27. Ownership of Documents. All plans, studies, drawings, calculations, reports, specifications, estimates, and other documents or any other works of authorship fixed in any tangible medium of expression, including but not limited to physical drawings, data magnetically or otherwise recorded on computer disks, or other writings prepared or caused to be prepared by the Contractor under this Agreement (“Documents”) shall be and shall remain the property of the City for all purposes, not only as they relate or may relate to the Services but as they relate or may relate to any other project.

Contractor will provide the City with a complete set of Documents, and will retain, on the City's behalf, the originals or reproducible copies of all Documents, however stored, in the Contractor’s files for a period of no less than fifteen (15) years. Contractor shall promptly make available to City any original documents it has retained under this Agreement upon request by the City.

28. Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for the City to copy, use, modify, reuse or sublicense any and all copyrights, designs and other intellectual property embodied in the Documents (“Intellectual Property”) not only as they relate or may relate to the Services but as they relate or may relate to other projects. The Contractor shall require any and all subcontractors and subconsultants to agree in writing that the City is granted a similar non-exclusive and perpetual license for the Intellectual Property of such subcontractors or consultants that they provided to A.10.b
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Contractor as part of the Services. The compensation for the Services includes compensation not only for any such use of the Intellectual Property in connection with the Services, but also for any re -use of the Intellectual Property by the City in relation to other projects. Contractor represents and warrants that Contractor has the legal right to license the Intellectual Property that Contractor, its subcontractors, or its subconsultants prepare or cause to be prepared under this Agreement.

29. Entire Agreement. This Agreement is intended by the Parties as the final expression of their agreement with respect to such terms as are included herein and as the complete and exclusive statement of its terms and may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement, nor explained or supplemented by evidence of consistent additional terms.

30 Ambiguity. The Parties to this Agreement, and each of them, hereby represent that the language contained herein is to be construed as jointly proposed and jointly accepted, and in the event of any subsequent determination of ambiguity, all Parties shall be treated as equally responsible for such ambiguity.

31. Execution of Other Documents. The Parties to this Agreement shall cooperate fully in the execution of any and all other documents and in the completion of any additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Agreement.

32. Execution in Counterparts. This Agreement may be executed in counterparts such that the signatures may appear on separate signature pages. A copy, facsimile, or an original, with all signatures appended together, shall be deemed a fully executed agreement.

33. Warranty of Authority. The persons who have signed this Agreement warrant that they are legally authorized to do so on behalf of the respective parties, and by their signatures to bind the respective parties to this Agreement.

34. Mediation. A party to this Agreement shall, as a condition precedent to initiating any litigation against the other party, demand mediation of any dispute. The parties shall endeavor to include any third-party claimant in the mediation. The parties shall select a mediator and schedule the mediation within thirty (30) days of the initial demand for mediation. If the parties cannot agree on a mediator, the mediator shall be appointed by JAMS. The parties to the mediation, including the parties to this Agreement, shall pay equal shares of the mediator’s fees. Each party shall bear its own attorney’s fees related to the mediation.

35. Forms. Prior to performing any Services, Contractor shall prepare, execute, and submit all forms that may be required by law for this Agreement, including but not limited to an Iran Contract Act certification (Public Contract Code §2204). If a form is necessary, Contractor shall use the City’s versions of these forms, which the City shall make available upon request.

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CITY OF HOLLISTER CONTRACTOR:
_____________________________
By:

Name:

Title:

By:

Name:

Title:

Address for City Notices: Address for Contractor Notices:

Community Tree Service, LLC
Alex Craig
Executive Contract Specialist
416 Salinas Rd.

Royal Oaks, CA 95076
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EXHIBIT A
Scope of Services
Mowing, removal of vegetation, and weed killer application along the roadways of Cienega Rd. and San Juan Canyon Rd., approximately 10 feet from the side of the road.

From November 6, 2023, to December 31, 2024, the following clearances are to be done:
o San Juan Canyon (14 miles)
o Clearance of roadside- remove all dead trees, dead brush, and vegetation debris along the identified project (10 feet wide +/-)
o Cut material would be wood chipped and spread (“cut and lay”) o Cienega Road (10 miles)
o Clearance of roadside- remove all dead trees, dead brush, and vegetation debris along the identified project (10 feet wide +/-)
o Cut material would be wood chipped and spread (“cut and lay”) The above fuel reduction activities must be conducted two times, once between November 6, 2023 and June 30, 2024, and the second time between July 1, 2024 and December 31, 2024.

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EXHIBIT B

PROJECT STAFF

NAME TITLE HOURLY RATE
Ivan Garcia Project Supervisor/ Equipment Operator $48.50 (+ Benefits) TBD Landscape Maintenance Laborer >$23.58
TBD Tree Trimmer >$61.93
TBD Trimmer Trainee Start >$45.37
TBD Trimmer Trainee: 6-12 >$50.89
TBD Trimmer Trainee: 12+ >$56.42
TBD Ground Person Start >$35.24
TBD Ground Person 6+ >$38.11
*Rates given are paid to employees of CTS,
including all benefits. Not bill rates for
this project.

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 20, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Fire
Rodney Dover, Interim Fire Chief

SPONSOR(S): Perez

TITLE OF ITEM: RESOLUTION NO. 2023-244, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER ACKNOWLEDGING HOLLISTER FIRE

DEPARTMENT HAS PERFORMED THE INSPECTIONS OF CERTAIN
OCCUPANCIES REQUIRED ANNUALLY PURSUANT TO SECTION 13146.4 OF THE

CALIFORNIA HEALTH AND SAFETY CODE AND ACCEPT THE COMPLIANCE

REPORTING FOR STATE-MANDATED LOCAL PROGRAMS FOR SENATE BILL NO. 1205

BRIEF DESCRIPTION: A resolution of the City Council of the City of Hollister to acknowledge receipt of a report made by the Fire Chief of the Hollister Fire Department regarding the 2023 inspections of certain occupancies required annually pursuant to Section 13146.4 of the California Health and Safety Code.

DEPARTMENT SUMMARY: California Health & Safety Code Section 13146.4 was added in 2018 and became effective on September 27, 2018. California Health & Safety Code Sections 13146.2 and 13146.3 requires all fire departments, including the Hollister Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards, as provided. California Health & Safety Code Section 13146.2 requires all fire departments, including the Hollister Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3.

The City Council of the City of Hollister intends this resolution to fulfill the requirements of the California Health & Safety Code regarding acknowledgment of the Hollister Fire Department’s compliance with California Health & Safety Code Sections 13146.2 and 13146.3.

The City Council of the City of Hollister expressly acknowledges the measure of compliance of the Hollister Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the encompassed areas as follows:

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A. EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E occupancies are generally those public and private schools, used by more than six persons at any one time for educational purposes through the 12th grade.

During calendar year 2023, the Hollister Fire Department completed the annual inspection of seventeen (17) Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

B. RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (two units or more), etc. as well as other residential occupancies (including a number of residential care facilities). These residential care facilities have a number of different sub -classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden.

During calendar year 2023, the Hollister Fire Department completed the annual inspection of three hundred and eighty-three (383) Group R occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

C. INSTITUTIONAL GROUP I OCCUPANCIES:

Institutional Group I occupancy includes, among others, for the purposes of this resolution, the use of a building or structure, or a portion thereof, in which people are cared for or live in a supervised environment or in which people are detained for penal or correctional purposes or in which the liberty of the occupants is restricted.

During calendar year 2023, the Hollister Fire Department completed the annual inspection of three (3) Group I occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

FINANCIAL IMPACT: N/A

CEQA: N/A

ATTACHMENTS:

1. 2023 - City of Hollister Inspections

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION
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David Mirrione, City Manager

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RESOLUTION NO. 2023-244

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

ACKNOWLEDGING HOLLISTER FIRE DEPARTMENT HAS PERFORMED THE

INSPECTIONS OF CERTAIN OCCUPANCIES REQUIRED ANNUALLY PURSUANT TO SECTION 13146.4 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND

ACCEPT THE COMPLIANCE REPORTING FOR STATE-MANDATED LOCAL PROGRAMS FOR SENATE BILL NO. 1205

WHEREAS, on September 27, 2018, the State of California passed Senate Bill 1205 (SB 1205) adding a new section to the California Health and Safety Code Section 13146.4 which affects every fire department or fire district in the State; and

WHEREAS, the existing law, California Health & Safety Code Sections 13146.2 and 13146.3, requires every fire department or fire district to inspect every building used as a public or private school, hotels, motels, lodging houses, apartment complexes and institutions annually; and

WHEREAS, this bill requires every fire department or fire district to report annually to its administering authority their compliance with the annual inspection requirements of the California Health and Safety Code. The bill also requires the administering authority to formally acknowledge receipt of the compliance report in a resolution or a similar formal document; and

WHEREAS, the Hollister Fire Department has performed calendar year 2023 inspections for compliance reporting with SB 1205; and

WHEREAS, the City Council of the City of Hollister has reviewed the report from the Fire Chief related to compliance with SB 1205.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister has received this report by the Hollister Fire Department for compliance reporting with Senate Bill 1205 for calendar year 2023 inspections.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

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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. 2023-244, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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INSPECTIONS COMPLETED
E (Schools)17 of 17 100%
TOTAL 17 of 17 100%
R-1 (Hotel/Motels)6 of 6 100%
R-2 (Apartments) 377 of 377 100%
TOTAL 383 of 383 100%
I (Jails/Courthouse)3 of 3 100%
(NEXT INSPECTION IN 2023)
TOTAL 3 of 3 100%
OVERALL INSPECTIONS 403 of 403 100%

INSTITUTIONAL GROUP I (INSPECTED BIENNIALLY)

RESIDENTIAL GROUP R

EDUCATIONAL GROUP E

COMPLIANCE
2023 CITY OF HOLLISTER

STATE MANDATED INSPECTIONS
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 27, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Administrative Services
Casey Estorga, Administrative
Services Director

TITLE OF ITEM: RESOLUTION NO. 2023-245, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND

DEBTBOOK FOR VARIOUS FINANCIAL REPORTING SERVICES

BRIEF DESCRIPTION: This resolution will authorize the ratification of a contract amendment between the City and DebtBook for software and other associated services to meet requirements of the Government Accounting Standards Board (GASB) associated with GASB 87 and GASB 96.

DEPARTMENT SUMMARY: The Governmental Accounting Standards Board (GASB) establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP). The GASB develops and issues accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to taxpayers, public officials, investors, and others who use financial reports.

The GASB periodically issues pronouncements (also known as GASB rules or GASB statements) to guide governments’ compliance with accounting standards. The City of Hollister is subject to these rules, with compliance evaluated each time the City undergoes an audit.

In some cases, the City utilizes partners and supplemental resources to comply with accounting standards. This may include partnering with financial experts and/or purchasing necessary tools, resources, and/or technologies to help the City comply with accounting standards. In April 2022 the City executed an agreement with DebtBook to assist with the City’s compliance to GASB 87 (lease accounting) and GASB 96 A.12
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(subscription-based software accounting). The City’s project to comply with GASB 87 and GASB 96 is ongoing and staff needs to continue the use of DebtBooks online software and the use of DebtBook’s expert consultants.

This contract amendment will provide an additional 12-months of access to the DebtBook partnership, allowing the City to continue to comply with GASB 87 and GASB 96 accounting standards.

FINANCIAL IMPACT: Total costs of this proposed amendment is eighteen thousand dollars ($18,000). Funding for these services have been included in the FY 2023 -24 Adopted Budget.

CEQA: Not a project.

ATTACHMENTS:

1. DebtBook Agreement - City of Hollister, CA - signed April 2022

2. DebtBook Renewal Order Form & Quote

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-245

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE

AGREEMENT BETWEEN THE CITY AND DEBTBOOK FOR VARIOUS FINANCIAL

REPORTING SERVICES

WHEREAS, the City of Hollister (the “City”) is subject to accounting standards set by the Government Accounting Standards Board (GASB); and

WHEREAS, this includes the City’s duty to follow numerous requirements associated with GASB 87 (lease accounting) and GASB 96 (subscription-based software accounting); and

WHEREAS, the City executed an agreement with DebtBook in April 2022 to help comply with GASB 87 and GASB 96;

WHEREAS, DebtBook has proven to be an exceptional partner in helping the City administer compliance with GASB rules; and

WHEREAS, a contract amendment is necessary to continue the partnership betw een the City and DebtBook; and

WHEREAS, it is in the best interest of the City to execute a contract amendment with DebtBook to continue these services.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorizes the City Manager to execute a contract amendment with DebtBook, increasing the amount of services purchased by eighteen thousand dollars ($18,000) and amending the term of the agreement to now expire on April 20, 2024.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

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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. 2023-245, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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September 2022 Form

RENEWAL ORDER FORM
Fifth Asset, Inc., d/b/a DebtBook (“DebtBook”) is pleased to provide Hollister, CA (“Customer”) with the Services subject to the terms established in this Order Form, including DebtBook’s Price Quote attached as Exhibit A and incorporated herein by this reference (the “DebtBook Quote”).

On and after the Effective Date listed below, this Order Form supersedes and replaces the Order Form previously executed and delivered by DebtBook and the Customer (the “Original Order Form”). This Order Form may be modified or replaced from time to time by a subsequent Order Form duly executed and delivered by each party in connection with any Renewal Term.

The Services are subject to DebtBook’s General Terms & Conditions, which were provided to Customer in connection with the execution and delivery of the Original Order Form (the “Terms & Conditions”), and the Incorporated Documents referenced in the Terms & Conditions. Each capitalized term used but not defined in this Order Form has the meaning given in the Terms & Conditions.

Order Form Details
Effective Date: 4/21/2023 Billing Frequency: Annually
Initial Term End Date: 4/20/2024 Payment Terms: Net 30 Initial Pricing Tier: Tier 3 See the DebtBook Quote for more details Services. Subject to the terms described in this Order Form, DebtBook will grant Customer access to the Application Services during the Initial Term described above and, if applicable, each subsequent Renewal Term.

As part of the onboarding process, DebtBook will provide Customer with the Onboarding Services and, if requested, the Implementation Services. DebtBook will also provide Customer with the Support Services throughout the Term.

Fees. DebtBook will charge Customer (1) a recurring Subscription Fee for Customer’s access to the Onboarding Services, the Application Services, and the Support Services and (2) if applicable, an Implementation Fee for the Implementation Services, in each case as set forth in the DebtBook Quote and this Order Form.

Generally, DebtBook sets Fees using its standard pricing schedule for the Services based on the Customer’s applicable Pricing Tier, which is based on the total number and amount of the Customer’s Application Obligations at the time of determination. DebtBook’s current pricing schedule and Pricing Tiers are set forth in the DebtBook Quote, which will remain in effect with respect to Customer throughout the Initial Term.

The Initial Pricing Tier indicated above is based on Customer’s good faith estimate of its Application Obligations as of the Effective Date. The Subscription Fees to be charged as provided in the DebtBook Quote will not change during the Initial Term, regardless of any change to the actual number or amount of the Customer’s Application Obligations during the Initial Term.

Implementation Services. At Customer’s request, DebtBook will provide Implementation Services to Customer for a 12-month period, with each such period beginning, if applicable, on the Effective Date and on each anniversary of the Effective Date thereafter (each, an “Implementation Period”). Customer may request Implementation Services at any time during the Term.

If Implementation Services are requested for any Implementation Period, then the Implementation Fee will be based on the aggregate number and amount of the Customer’s Application Obligations at the beginning of such Implementation Period. The Implementation Fee will be due and payable at the later of (1) the beginning of the applicable Implementation Period or (2) the date on which Customer requests Implementation Services for such Implementation Period, and will entitle Customer, in each case, to Implementation Services at the applicable Pricing Tier through the end of the Implementation Period then in effect.

For any Implementation Period, if the total number or amount of Customer’s Application Obligations implemented causes Customer’s applicable Pricing Tier to increase, then DebtBook will charge Customer an additional Implementation Fee such that the total Implementation Fee charged for such Implementation Period equals the Implementation Fee applicable to the increased Pricing Tier as set forth in the DebtBook Quote.

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September 2022 Form
Billing. Unless otherwise provided in the Order Form or the Customer Terms, all Fees will be due and payable in advance on the terms indicated above, and each invoice will be emailed to the Customer’s billing contact indicated below.

Renewal Term. The Agreement is subject to renewal on the terms set forth in the Terms & Conditions. The Pricing Tier applicable for each Renewal Term will be determined based on the aggregate number and amount of the Customer’s Application Obligations at the time of renewal.

Termination. The Agreement is subject to early termination on the terms set forth in the Terms & Conditions.

Entire Agreement. By executing this Order Form, each party agrees to be bound by this Order Form, the Terms & Conditions, the Incorporated Documents, and any Customer Terms.

This Order Form, the Customer Terms, the Terms & Conditions, and the Incorporated Documents constitute the complete “Agreement” between the parties and supersede any prior discussion or representations regarding the Customer’s purchase and use of the Services.

Intellectual Property. Except for the limited rights and licenses expressly granted to Customer under this Order Form and the Terms & Conditions, nothing in the Agreement grants to Customer or any third party any intellectual property rights or other right, title, or interest in or to the DebtBook IP.

Important Disclaimers & Limitations. EXCEPT FOR THE WARRANTIES SET FORTH IN THE TERMS & CONDITIONS, DEBTBOOK IP IS PROVIDED “AS IS,” AND DEBTBOOK DISCLAIMS ALL WARRANTIES, WHETHER

EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING ALL IMPLIED WARRANTIES OF

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT AND ALL WARRANTIES ARISING FROM COURSE OF DEALING, USAGE, OR TRADE PRACTICE. IN ADDITION, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES’ LIABILITIES UNDER THE AGREEMENT ARE LIMITED AS SET FORTH IN THE TERMS & CONDITIONS.

Notices. Any Notice delivered under the Agreement will be delivered to the address below each party’s signature below.

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September 2022 Form
Authority; Execution. Each of the undersigned represents that they are authorized to (1) execute and deliver this Order Form on behalf of their respective party and (2) bind their respective party to the terms of the Agreement. This Order Form and any other documents executed and delivered in connection with the Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. To the extent permitted by applicable law, electronic signatures may be used for the purpose of executing the Order Form by email or other electronic means. Any document delivered electronically and accepted is deemed to be “in writing” to the same extent and with the same effect as if the document had been signed manually.

FIFTH ASSET, INC., D/B/A DEBTBOOK
By:

Name: Tyler Traudt
Title: CEO

HOLLISTER, CA
By:

Name:

Title:

Notice Address
PO Box 667950
Charlotte, NC 28266
Attention: Chief Executive Officer
[email protected]
Notice Address
375 Fifth St
Hollister, CA 95023
Attention: Casey Estorga
[email protected]
Billing Contact
Same as above

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September 2022 Form
Exhibit A
DebtBook Quote

[See attached.]

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10/16/2023
DebtBook Quote
Hollister, CA
Hollister, CA 95023
Casey Estorga
Administrative Services Director
[email protected]
Prepared By:

DebtBook
Tyler Hunt
Customer Success Manager
[email protected]
Notice Address:

PO Box 667950
Charlotte, NC 28266
Products & Services
Description Qty Annual Fee Discount Total
Implementation Charge: Tier 3
This represents the cost of our Guided GASB 96
Implementation process for your organization.

Subscription Charge: Tier 3
This represents the annual subscription charge your
organization pays for access to the DebtBook
platform. There are no additional charges - this covers unlimited users, external sharing, support and training. 1 1

$3,000
Year 1

$20,000
Year 1
$3,000

$2,000

$0
Year 1 Cost

$18,000
Year 1 Cost
Total 1 Year Renewal Cost with Implementation : $18,000 1 A.12.b
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 16, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Public Works - Utilities
William Via, Community Services
Director

TITLE OF ITEM: RESOLUTION NO. 2023-246, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER RATIFYING THE HOLLISTER PUBLIC WORKS DEPARTMENT APPLICATION FOR THE 2023 MONTEREY BAY AIR

RESOURCES DISTRICT DIESEL ENGINE & EQUIPMENT REPLACEMENT

PROGRAM GRANT TO SUPPLEMENT A PORTION OF THE COST IN PURCHASING

A NEW JCB FORKLIFT

BRIEF DESCRIPTION: Staff is seeking ratification of an application for the 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program grant to offset a portion of the cost to purchase a new JCB forklift for the City of Hollister Public Works Department.

DEPARTMENT SUMMARY: The Hollister Public Works Department is seeking ratification for a grant application for a 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program grant. The purpose of this grant application is to, if awarded, offset costs related to the purchase of a new JCB forklift.

This grant program is administered by Monterey Bay Air Resources District and incentivizes California Climate Investments as a part of the California State Cap-and-Trade program. The grant serves to reduce diesel engine emissions by replacing older diesel engines which can be significant sources of pollution.

Currently, the City owns an older, grant eligible, JCB Forklift which is in need of replacement as it is not able to efficiently lift heavier items needed to perform essential Public Works duties (e.g. lifting protective barriers for downtown Hollister events).

Replacement of the Forklift is currently budgeted in the 2023/2024 Fiscal Year Budget.

If awarded, the total grant amount would not cover the entire purchase of a new JCB, but would offset of current City funds.

Staff recommends that the City Council ratify the Public Works Department application for the 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program grant.

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FINANCIAL IMPACT: A potential savings of $24,000.

CEQA: Not a project under CEQA

ATTACHMENTS:

1. New JCB Quote

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-246

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER RATIFYING THE HOLLISTER PUBLIC WORKS DEPARTMENT APPLICATION FOR THE 2023

MONTEREY BAY AIR RESOURCES DISTRICT DIESEL ENGINE & EQUIPMENT

REPLACEMENT PROGRAM GRANT TO SUPPLEMENT A PORTION OF THE COST

IN PURCHASING A NEW JCB FORKLIFT

WHEREAS, the Monterey Bay Air Resources District administers a Diesel Engine & Equipment Replacement Program Grant; and

WHEREAS, the City of Hollister Public Works Department has an older forklift which is in need of replacement as it is not able to efficiently lift heavier items needed to perform essential Public Works duties; and

WHEREAS, this older equipment is eligible to receive grant funding in order to supplement its replacement by purchasing a new forklift; and

WHEREAS, funds are currently budgeted for replacement of the forklift; and

WHEREAS, the City of Hollister Public Works Department needs City Council approval to apply for herein mentioned grant.

NOW, THEREFORE, BE IT RESOLVED, that the City Council ratifies the City of Hollister Public Works Department application for the 2023 Monterey Bay Air Resources District Diesel Engine & Equipment Replacement Program Grant in order to supplement a portion of the cost in purchasing a new forklift.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 2023-246, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 17, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Police
Carlos Reynoso, Police Chief

TITLE OF ITEM: RESOLUTION NO. 2023-247, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER RE-AUTHORIZING CITY MANAGER TO

PURCHASE TWO PATROL VEHICLES AT THE NEW NOT TO EXCEED PRICE OF $112,000

BRIEF DESCRIPTION: This resolution will re-authorize the City Manager to purchase two patrol vehicles that had been previously ordered over a year ago , recently became available, and are being offered to the city at the corrected price.

RECOMMENDATION: Adopt a resolution re-authorizing the City Manager to purchase the available patrol vehicles with existing budgeted funds.

DEPARTMENT SUMMARY: On November 6, 2023, the City Council voted to approve Resolution number 2023-229 giving authorization to the city manager to purchase two patrol cars. That resolution explained the cars were ordered over a year prior and never delivered. They recently became available and the department recommended acquiring them with money currently in the budget. Staff requested the amount of $109,049.30 for the vehicles. Subsequently, staff discovered an error in the final price.

Staff erroneously deducted the shipping costs of $1,000. That cost had already been deducted by the dealership. Therefore, staff is asking for an additional amount of $1,016.46.

Staff recommends taking advantage of the availability of these patrol cars. There is also a discount if the vehicle is paid within 20 days of delivery. That discount has already been factored in. Staff is asking an amount not to exceed $112,000 just in case the check is not issued in time and the amount changes.

Staff recommends authorizing the City Manager to purchase the two patrol vehicles for a total amount not to exceed $112,000 .

FINANCIAL IMPACT: No additional increase of appropriation in the General Fund budget

CEQA: N/A

ATTACHMENTS:

1. Purchase Order 2023 Ford Interceptors

2. Hollister Invoice FL2603
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3. Hollister Invoice FL2609

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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RESOLUTION NO. 2023-247

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER RE-

AUTHORIZING CITY MANAGER TO PURCHASE TWO PATROL VEHICLES AT THE NEW NOT TO EXCEED PRICE OF $112,000

WHEREAS, staff previously ordered two Ford Utility patrol vehicles in 2022 but they were not delivered; and

WHEREAS, problems with the manufacturing process and delays in the availability of parts delayed the vehicles for over a year; and

WHEREAS, staff had to order other vehicles for the patrol fleet and did not anticipate the Ford vehicles being available; and

WHEREAS, the manufacturer has advised the vehicles are available now and the city of Hollister has first rights to them; and

WHEREAS, the ordering of vehicles is very difficult in this post -pandemic era and it is a good opportunity to purchase these vehicles now that they are available.

WHEREAS, the City Council of the City of Hollister previously approved their purchase, there was an error in the total price of approximately $1,000; and

WHEREAS, staff recommends an amended amount not to exceed $112,000.00; and

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister re- authorizes the City Manager to purchase two patrol vehicles with the new not to exceed price of $112,000.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 2023, by the following vote:

Mia Casey, Mayor
ATTEST:

Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

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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. 2023-247, 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: DECEMBER 4, 2023
SUBMITTED: November 16, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Planning
Christine Hopper, Development
Services Director

TITLE OF ITEM: ORDINANCE NO. 1243 AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF HOLLISTER APPROVING ZONING ORDINANCE AMENDMENT 2023-4 TO ADOPT CHAPTER 17.36 INCLUSIONARY HOUSING PROGRAM

BRIEF DESCRIPTION: An ordinance to adopt a new Chapter 17.36, Inclusionary Housing Program, into the Zoning ordinance, which would require new residential development to provide a percentage of the total units as affordable housing units.

DEPARTMENT SUMMARY: The City of Hollister has engaged with Placeworks, Inc. to prepare an Inclusionary Housing Ordinance which would require all for-sale and rental residential development projects to provide a percentage of affordable housing units as part of the development project.

The City Council considered the first reading of the ordinance at their regular meeting of May 1, 2023, where the Council directed that staff and Placeworks host an additional community outreach meeting and report back the findings during an additional City Council study session. The community outreach meeting was held on August 3, 2023, and City Council study session was held on September 11, 2023. The study session staff report and memo are provided as an attachment to this report , which summarized the results of the community outreach event.

At the September 11th study session, the City Council directed staff to make the following amendments to the draft ordinance:

- Reduce the required number of affordable units from 20% to 15% of the total number of units
- The 15% requirement should be split as follows: 7% very low income, 5% low income, and 3% moderate income
- Projects with less than 10 units are exempt from the program (no change) - In-lieu fees will not be permitted for rental or for-sale housing projects - Off-site construction will not be permitted
- Land dedication in-lieu of construction will not be permitted

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Following the meeting, staff received a comment from Dennis Martin, attached, expressing concerns with the draft ordinance. The comment letter is provided as an attachment to this report. The comment letter also noted the following two sections of the Government Code, and expressed that the proposed ordinance may not be in compliance:

Government Code Section 65850

The legislative body of any county or city may, pursuant to this chapter, adopt ordinances that do any of the following:

(g) Require, as a condition of the development of residential rental units, that the development include a certain percentage of residential units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate - income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code. The ordinance shall provide alternative means of compliance that may include, but are not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units.

Government Code Section 65589.8

A local government which adopts a requirement in its housing element that a housing development contain a fixed percentage of affordable housing units shall permit a developer to satisfy all or a portion of that requirements by constructing rental housing at affordable monthly rents, as determined by the local government.

Nothing in this section shall be construed to expand or contract the authority of a local government to adopt an ordinance, charter amendment, or policy requiring that any housing development contain a fixed percentage of affordable housing units.

Staff have reviewed these sections and believes that the draft ordinance does not contain the required alternative compliance options as required by the government code. In order to meet these requirements, the ordinance must provide for the option to develop rental affordable units in an otherwise for-sale development project (Section 65589.8), and must provide at least one alternative means of compliance within the ordinance.

Staff have revised the draft ordinance to include the reduction in percentage of required affordable units in a development from 20% to 15% as directed by the City Council, as well as have proposed an alternative compliance option, described below.

Alternative Compliance

In the contact of an inclusionary housing ordinance, alternative compliance means another method by which a development can be deemed to have satisfied the ordinance aside from development of the required affordable units on site, as part of the development project. Common alternative compliance options include in -lieu fees, off- site construction, land dedication, and acquisition and rehabilitation of existing units.

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However, a jurisdiction could adopt any form of alternative compliance option(s) that they desired.

Based on the comments received from during the review of the draft ordinance and public meetings, staff is recommending the adoption of only one form of alternative compliance: acquisition and rehabilitation of existing units. As was heard during the meetings and public workshops on the inclusionary ordinance, there was a strong desire for inclusionary units to built as part of the new development. This was both to add new units to the market, as well as to ensure that units would be spread throughout the community, rather than concentrated in any given area. As the ordinance was originally drafted, there were no means of alternative compliance, and only a fractional in-lieu fee was offered to account for rounding when calculating the number of units that would otherwise have been required by the ordinance. The draft ordinance has been revised in accordance with the City Council’s direction to remove the fractional in -lieu fee, and instead provide policy direction to round the number of units down if the fraction in 0.25 or less, and round up if the number of units required results in a fraction greater than 0.25. As described above, in rereading the referenced sections of the government code, the ordinance should provide a rental alternative for for -sale projects, as well as at least one form of alternative compliance if a certain percentage of units is required. While the specific percentage is not proposed as policy within the Housing Element, it is proposed within the draft General Plan as a policy (to be modified to 15% based on current Council direction).

The alternative compliance method that is recommended by staff is to allow for a developer, in lieu of constructing new affordable units on site, to purchase and rehabilitate existing market rate units within the city, and make them available at restricted, affordable rents/sale prices. This option, while not directly resulting in additional housing stock within the city limits, will ensure that new affordable housing does become available at the time of new development. This addresses the concerns that arose during the review of the ordinance related to the desire for affordable housing to become available as new development occurs. Additionally, the option does not directly ensure that affordable housing does not become concentrated, but can help to make affordable housing available throughout the city where it does not currently exist through the rehabilitation of existing units. The majority of the city’s existing housing is not available at affordable rates, so this alternative option can help to diversify the existing housing stock as new development occurs.

Other alternatives were considered, such as in-lieu fees, off-site construction, and land dedication. However, staff found that these alternatives were not in compliance with previous direction provided by the City Council, and the feedback received during the course of developing the ordinance. In-lieu fees, as was brought up by members of the public and City Council, often are insufficient and do not result in the direct construction of as many units as were intended by the payment of fees, especially tak ing into consideration inflation and costs associated with a public development project versus a private development project. Off-site construction and land dedication brought up concerns related to concentration of affordable housing in the community, rather than mixing affordable and market-rate housing throughout the city as new development occurs. Land dedication additionally bears a concern of funding affordable housing development on land after it becomes under city control; potentially resulting in l ands E.1
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that are earmarked for affordable housing, but do not see development occur. For these reasons, staff is recommending that the City offer acquisition and rehabilitation of existing units as an alternative method of compliance within the Inclusionary Housing Ordinance, to ensure compliance with the government code.

In accordance with Section 17.02.120(C) of the Hollister Municipal Code, staff brought the revised draft ordinance before the Planning Commission on November 16, 2023 for their consideration of the proposed modifications to the ordinance. At the November 16, 2023 Planning Commission meeting the Planning Commission adopted Resolution 2023-36, recommending approval of the draft ordinance to the City Council with a change to modify the split of affordability to 5% moderate income, 5% low income, and 5% very-low income (Section 17.36.050(A) of the draft ordinance). The Planning Commission also requested that staff prepare a comparison analysis of nearby jurisdictions’ inclusionary ordinances for City Council consideration (see attachment 7).

The draft ordinance currently contains the City Council’s directed affordability split of 7% very-low income, 5% low income, and 3% moderate income. However, the Council could make a change to this section of the ordinance if they desired.

CONCLUSION:

The City of Hollister seeks to use the inclusionary ordinance as a tool to assist in the production of affordable housing. Inclusionary housing is not intended as a single solution to Hollister’s affordable housing needs. Accomplishing state and local housing goals will require an additional combination of planning and zoning strategies, city policy decisions and regional coordination. However, an inclusionary housing program is one tool that will help the City to meet its RHNA (Regional Housing Needs Allocation), and is a goal in the General Plan Update. City of Hollister staff recommend that the City Council approve the following amendments to the draft Inclusionary Housing Ordinance (Section 17.36) of the Hollister Municipal Code:

- Reduction in the percentage of required affordable units in a development from 20% to 15%
- Remove in-lieu fees, and adopt a rounding methodology for fractional units - Allow for-sale projects to construct the required affordable units as for-rent units - Allow for acquisition and rehabilitation of existing units as an alternative compliance option

FINANCIAL IMPACT: Adoption of the Inclusionary Housing Ordinance will not have a direct financial impact.

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.

ATTACHMENTS:

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1. 1. 2023.09.11 CC Staff Report_ZOA 2023-4_Inclusionary Housing

2. 2. 2023.09.11 Study Session Attachment - Inclusionary Housing Workshop Memo

3. 3. 2023.05.01 CC Staff Report_ZOA 2023-4_Inclusionary Housing

4. 4. CityofHollister_10.27.23_InclusionaryStudy_Dennis Martin

5. 5. Hollister IHO Comparative Analysis 10.20.23_Dennis Martin

6. 6. Inclusionary Chapter_Ordinance_11.07.23_Redline

7. 7. Inclusionary Housing Comparison

8. 8. Resolution 2023-36_ZOA 2023-4_IHO_Unsigned_Redline

THIS REPORT WAS REVIEWED BY THE CITY MANAGER WHO CONCURS WITH

THE STAFF RECOMMENDATION

David Mirrione, City Manager

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ORDINANCE NO. 1243

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING ZONING ORDINANCE AMENDMENT 2023-4 TO ADOPT CHAPTER

17.36 INCLUSIONARY HOUSING PROGRAM

WHEREAS, the State of California requires local governments to plan to meet the housing needs of all income groups; specifically, “local and state governments have a responsibility to use the powers vested in them to facilitate the improvements and development of housing to make adequate provision for the housing needs of all economic segments of the community” pursuant to the State Government Code Section 65580; and

WHEREAS, the City Council has determined that there is a demand for affordable housing for very low, low, and moderate income households in the City of Hollister as documented in the City of Hollister Housing Element; and

WHEREAS, Housing Element Goal H4 of the General Plan requires the City to develop affordable housing opportunities in the City; furthermore, Policy H4 of the Housing Element requires the City to establish a program for increasing affordable housing in the City by requiring residential developers to provide a percentage of the units within a residential development to very low, low, and moderate income households; and

WHEREAS, on August 3, 2020 the City Council adopted Resolution 2020 -147 accepting awarded grant funding from Housing and Community Development related to the Senate Bill 2: Building Homes and Jobs Act (SB2) planning grant program; and

WHEREAS, as part of the ongoing 2040 General Plan Update, the City Council at its regular meeting of June 21, 2021 discussed affordable housing within the City and potential inclusionary requirements, and directed staff to include a 20 percent affordability component as a recommended policy within the 2040 General Plan Update; and

WHEREAS, on November 1, 2021 the City Council, based on the recommended policy direction for the General Plan Update, directed staff to conduct a financial feasibility analysis and prepare an inclusionary ordinance which requires residential developers to include a 20 percent affordability component utilizing the awarded SB 2 Planning Grant funds; and

WHEREAS, on January 18, 2022 staff discussed the inclusionary ordinance with the City Council and the City Council reaffirmed that the inclusionary ordinance should be prepared which requires a 20 percent affordability component for all residential projects; and

WHEREAS, the Inclusionary Housing Program Financial Feasibility Analysis dated January 2023 was prepared by Placeworks; and

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WHEREAS, the Planning Commission held a duly noticed public hearing on March 23, 2023 to review the new Chapter 17.36, Inclusionary Housing Program, during which all interested parties were heard and the commission adopted Resolution 2023 -10 recommending adoption of the Inclusionary Housing Program to the City Council; and

WHEREAS, the City Council heard a first reading of the draft Chapter 17.36, Inclusionary Housing Program, during a duly noticed public hearing on May 1, 2023, and directed staff to hold an additional public outreach meeting and study session with the City Council to receive additional feedback on the draft ordinance; and

WHEREAS, a public outreach meeting was held on August 3, 2023 where interested parties were heard and feedback was received; and

WHEREAS, the City Council held a study session to discuss the draft ordinance on September 11, 2023, where they provided additional direction to staff for amendments to the draft ordinance, including a reduction in the percentage of affordable units required from 20% to 15%; and

WHEREAS, an inclusionary housing ordinance which requires 15% or less of the residential units in a development to be made affordable does not require the preparation of a financial feasibility analysis; and

WHEREAS, following the September 11, 2023 study session, staff and the City Council received a public comment which resulted in the need for additional changes to be considered within the draft ordinance; and

WHEREAS, Section 17.02.040 of the Hollister Municipal Code requires significant changes made to a proposed amendment to Title 17, Zoning, that are made after the Planning Commission has made a recommendation on an amendment should be brought back before the Planning Commission for reconsideration, prior to City Council consideration; and

WHEREAS, the Planning Commission held a duly noticed public hearing on November 16, 2023 to consider the amended draft Chapter 17.36, Inclusionary Housing Program, during which all interested parties were heard, and the Planning Commission adopted Resolution 2023-36 recommending approval of the draft ordinance to the City Council with a modification of the affordability split to 5% moderate income, 5% low income, and 5% very-low income; and

WHEREAS, the City Council held a duly noticed public hearing on December 4, 2023 to consider the amended draft Chapter 17.36, Inclusionary Housing Program, during which all interested parties were heard; and

WHEREAS, after closing the public hearing, the City Council determined to adopt Chapter 17.36, Inclusionary Housing Program; and

WHEREAS, the proposed Zoning Ordinance amendment is exempt from the requirements of the California Environmental Quality Act (CEQA) because the proposed amendments will not result in any direct physical change to the City, and E.1
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therefore the proposed amendments are not a project under CEQA and are exempt from further review (CEQA Guidelines Section 15378).

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

Title 17 is amended to add Chapter 17.36, Inclusionary Housing Program, to read as follows:

Chapter 17.36 – Inclusionary Housing Program

17.36.010 – Chapter Title

The Ordinance codified in this chapter shall be known and may be cited as the "Inclusionary Housing Program" of the City of Hollister.

17.36.020 – Purpose

The purpose of this Inclusionary Housing Program is to:

A. Enhance the public welfare by facilitating the development of housing affordable to households of Very Low, Low, and Moderate Income.

B. Ensure that future residential development is consistent with housing policies of the State of California and the City of Hollister.

C. Ensure that each Residential Development Project complies with the requirements of this Chapter and is consistent with the city's housing goals of developing affordable housing opportunities, creating diverse housing opportunities for existing and future residents, and maintaining economic diversity and geographically dispersed affordable housing.

17.36.030 – Definitions

A. Accessory Dwelling Unit (ADU) shall have the same meaning as defined under Section 65852.2(j) of the Government Code and shall mean an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single -family dwelling. An ADU also includes an efficiency unit and a manufactured home, provided it is built on a permanent foundation. An ADU may be located within an existing attached or detached garage, shed, barn or other accessory structure.

B. Administrator shall mean the Inclusionary Housing Program Administrator, which shall either be the city itself or a third-party administrator acting as an agent for E.1
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the city in connection with all aspects of the operation of the Inclusionary Housing Program pursuant to an Agreement entered into between the city and the Administrator, as such agreement may be amended or replaced from time to time.

C. Affordable Dwelling Unit shall mean, for the purposes of this Chapter, a dwelling unit affordable to households earning at or below 120 percent of the county median income, including units that are affordable to Very Low, Low, and Moderate Income Households.

D. Attached Single-Family Dwelling Unit for the purposes of this Chapter shall mean a single-family dwelling unit having one or more walls attached to and in common with one or more single-family dwellings, with each dwelling unit on a separate parcel.

E. Density Bonus shall mean a density increase over the otherwise maximum allowable density on a site pursuant to California Government Code Section 65915 and Article 15.04.602 (referred to as the “State Bonus” in this Chapter), or for any other reason.

F. Detached Single-Family Dwelling Unit shall mean a dwelling unit intended for use by a single household and not attached to any other building.

G. For-Sale Residential Development Project shall mean a Residential Development Project that includes the creation of one or more new dwelling units that may be sold individually. A For-Sale Residential Development Project also includes the conversion of a residential rental development to a residential ownership development.

H. Inclusionary Unit shall mean a dwelling unit intended for sale or rent that is required by Article 17.36.050 to be affordable to Very Low, Low, or Moderate Income Households.

I. Low Income Household shall mean a household whose income does not exceed the low income limits applicable to San Benito County as defined in California Health and Safety Code Section 50079.5 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 by the California Department of Housing and Community Development.

J. Market Rate Unit shall mean a new dwelling unit in a Residential Development Project that is not an Affordable Dwelling Unit.

pursuant to Title 25 of the California Code of Regulations, Section 6932 by the California Department of Housing and Community Development.

L. Multi-Family Unit shall mean a residential unit intended for the use of a single household that is part of a larger building having one or more walls attached to and in common with other residential units.

M. Physical Needs Assessment shall mean a report by a qualified housing professional identifying necessary repairs, replacements and maintenance at the time of the assessment or that will likely require repair or replacement within three years of the assessment, and the estimated cost of all such items, which repair replacement and maintenance must be completed prior to the approval of the unit as an Inclusionary Unit. For the purposes of this Chapter, a "qualified housing professional" is a firm approved for that purpose by the California Housing Finance Agency.

N. Rental Residential Development Project shall mean a Residential Development Project that creates one or more dwelling units that cannot be lawfully sold individually in conformance with the Subdivision Map Act.

O. Residential Development Project shall mean a development for which a discretionary approval or building permit is required for a residential development that includes the creation of one or more new dwelling units, conversion of nonresidential uses to dwelling units, or the conversion of a use from a Rental Residential Development Project to a For-Sale Residential Development Project.

P. Unit Type shall mean the type of dwelling unit, either Attached Single -Family Dwelling Unit, Detached Single-Family Dwelling Unit, or Multi-Family Unit.

Q. Very Low Income Household shall mean a household whose income does not exceed the very low income limits applicable to San Benito County as defined in California Health and Safety Code Section 50079.5 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 by the California Department of Housing and Community Development.

R. Vesting Tentative Map shall mean a map which confers certain vested rights to proceed with development for a specified period of time after recordation.

17.36.040 – Effective Date and Inclusionary Housing Requirement Applicability

A. Applicability. All For-Sale and Rental Residential Development Projects that consist of 10 or more units built anywhere in the City of Hollister shall comply with the requirements of this chapter.

B. Exemptions. The provisions of this chapter shall not apply to the following projects:

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1. Accessory Dwelling Units.

2. Residential Development Projects with less than 10 dwelling units.

3. Residential Development Projects on property with vested rights in effect on the effective date of this chapter, including:

a. Property that is part of a Vesting Tentative Map.

b. Development that is part of an existing development agreement with the city.

4. Residential Development Projects that have submitted a complete planning or building permit application along with the full payment of required application fees to the city prior to the effective date of this ordinance, provided that such Residential Development Projects shall comply with any approved affordable housing plan and any predecessor ordinance applicable to the development.

5. Residential Development Projects exempted by California Government Code Section 66474.2 or 66498.1, provided that such Residential Development Projects shall comply with any predecessor ordinance, resolution, or policy in effect on the date the application for the development was determined to be complete.

6. Residential Development Projects exempted by another state law or by final judgement of a court of competent jurisdiction.

17.36.050 – Inclusionary Housing Requirements

All new applicable Residential Development Projects shall include Inclusionary Units.

Calculations of the number of Inclusionary Units shall be based on the number of dwelling units in the Residential Development Project, without regard to any density bonus units provided pursuant to State Bonus. All required Inclusionary Units shall be built on the same site as the Residential Development Project.

A. Inclusionary Requirement. Fifteen percent of all new Residential Development Projects shall be Inclusionary Units. The fifteen percent total shall be achieved using the following allowable ranges of affordability:

1. At least seven percent of the dwelling units shall be affordable to Very Low Income Households.

2. At least five percent of the dwelling units shall be affordable to either Very Low Income or Low Income Households.

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3. At least three percent of the dwelling units shall be affordable to either Very Low Income, Low Income or Moderate Income Households.

B. Fractional Units. When the application of the percentages specified in Section

17.36.050.A results in a number that includes a fraction equal to one-quarter (0.25) or more, the fraction shall be rounded to the next higher whole number. In that event an additional Inclusionary Unit shall be provided. If the result includes a fraction less than one-quarter (0.25), the fraction shall be rounded down. In that event no additional Inclusionary Unit shall be required.

C. State Density Program. Any Inclusionary Units provided on site in compliance with this chapter may be used to qualify for a density bonus under California Government Code Section 65915, or any ordinance implementing Government Code Section 65915.

D. Base for Inclusionary Requirement. The number of Inclusionary Units required for a project shall be based on the total number of dwelling units in the Residential Development Project prior to the addition of units under the State Bonus.

E. Affordable Housing Agreement. The applicant shall execute a written agreement with the city indicating the number, type, location, approximate size, and construction schedule of all dwelling units as required to determine project compliance with the requirements of this chapter.

F. Construction Timing. All Inclusionary Units shall be built prior to the full build-out of Market Rate Units in the same Residential Development Project. In phased developments, inclusionary units shall be constructed and occupied in proportion to the number of Market Rate Units constructed and occupied in each phase.

1. A building permit may not be issued for any Market Rate Unit unless a proportional number of building permits has been issued for Inclusionary Units.

2. A certificate of occupancy or final inspection may not be issued for Market Rate Units unless a proportional number of certificates of occupancy or final inspections have been issued for Inclusionary Units.

17.36.060 – Alternative Compliance

Instead of providing on-site Affordable Dwelling Units as required by Section 17.36.050, developers of Residential Development Projects may fulfill the requirements of this Chapter using the following alternatives means:

A. Affordable Rental Units within For-Sale Residential Development Projects. All or a portion of the inclusionary housing requirement for a For-Sale Residential E.1
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Development Project may be fulfilled by constructing as part of a For-Sale Residential Development Project the same or a greater number of rental units affordable to Very Low Income, Low Income and Moderate Income households in the proportions prescribed in Section 17.36.050. Provision of affordable rental units shall be allowed only if:

1. The rental units fulfill all standards in Section 17.36.070 of this Chapter; and

2. The rental units have at least the same number of bedrooms as the for - sale units which would have been required; or any deficiency in bedroom counts is offset by additional affordable rental units.

B. Acquisition and Rehabilitation of Existing Units. An applicant may fulfill the inclusionary housing requirement by acquiring and rehabilitating existing Market Rate Units to become Inclusionary Units. Acquisition and rehabilitation of existing units in-lieu of construction of inclusionary housing requirements shall be allowed only if:

1. The city approves a Physical Needs Assessment performed by a qualified third-party housing professional approved by the city of each dwelling unit to be rehabilitated, the property upon which it is located, and any associated common areas; and all items identified in the Physical Needs Assessment as needing repair, replacement or maintenance are completed prior to the acceptance of the dwelling unit as an Inclusionary Unit.

2. The value of the rehabilitation work is 25 percent or more than the value of the dwelling unit prior to rehabilitation, inclusive of land value, which shall be demonstrated through the Physical Needs Assessment described in Subsection 1 of this section.

3. The applicant ensures that any residents residing in units to be rehabilitated find suitable replacement housing, and the applicant funds all noticing to and relocation of existing residents in the residential units to be rehabilitated.

4. The site of the units to be rehabilitated is designated for a general plan land use and is zoned for residential development at a density to accommodate the rehabilitated affordable units.

5. The use of the site with units to be rehabilitated does not constitute a nonconforming use.

6. The city approves an analysis funded by the applicant and completed by a third-party consultant approved by the city and submitted at the time of E.1
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development application submittal; which demonstrates the site with units to be rehabilitated is suitable for the required affordable housing development in terms of size, location, availability of sewer and water services, absence of toxins and other environmental constraints, site characteristics and surroundings.

7. The rehabilitated units have at least the same number of bedrooms as the Inclusionary Units which would have been required; or any comparative deficiency in bedroom counts is offset by additional units beyond the number of Inclusionary Units required.

8. The rehabilitation of the existing units and issuance of certificates of occupancy for such units are completed prior to or concurrently with the construction of and issuance of certificates of occupancy for the Market Rate Residential Development Project.

17.36.070 - Inclusionary Unit Standards

The following standards shall apply to all Inclusionary Units built to satisfy the requirements of this chapter.

A. Recipient Requirements. All inclusionary units shall be sold or rented to:

1. Moderate Income, Low Income or Very Low Income Households.

2. The City of Hollister or its designee.

B. Unit Type and Physical Quality. The Unit Types of the Inclusionary Units within a Residential Development Project shall:

1. Be built in the same proportion as the Market Rate Unit Types.

2. Have an average square footage of at least 85 percent of Market Rate Units with the same bedroom count.

3. Be developed with the same bedroom count ratio as the Market Rate Units.

4. Have the same interior finishes and features as the Market Rate Units.

5. Have the same exterior design and overall quality of construction as the Market Rate Units.

C. For-Sale Single-Family Residential Development Projects may include affordable Attached Single-Family Dwelling Units in a proportion that constitutes more than the proportion of Attached Single-Family Dwelling Units in the overall project.

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D. Affordable Detached Single-Family Dwelling Units counted toward the inclusionary requirement may have smaller lots than Market Rate Detached Single-Family Dwelling Units in the same Residential Development Project, provided that all lot sizes are consistent with the lot size requirements of this Title 17 (Zoning).

E. Location. All Inclusionary Units shall:

1. Be built on the same site as the remainder of the Residential Development Project and be reasonably dispersed throughout the Residential Development Project to prevent a concentration of affordable units.

2. Have the same access to common open space and shared facilities in the Residential Development Project as do the Market Rate Units.

3. Be dispersed throughout the Residential Development Project.

F. Eligibility Screening. The Administrator shall screen prospective buyers or renters of Inclusionary Units. Buyers of Inclusionary Units shall enter into an agreement with the city. Occupants must be selected by means of an open, public process that ensures that individuals of a group of interested participants are selected in accordance with the city’s adopted policies. Private selection of individuals by project owners is not permitted for any Inclusionary Units.

G. Ongoing Affordability of For-Sale Units. In order to maintain the availability of For-Sale Inclusionary Units constructed pursuant to this chapter, the following requirements shall apply to Inclusionary Units, as documented through an affordable housing agreement, as prescribed in Section 17.36.070.I, recorded against the property:

1. The affordable sales prices of for-sale Inclusionary Units shall be restricted to a period of thirty years pursuant to an affordable housing agreement recorded against the property and resets upon resale of the unit(s).

2. The owner shall occupy the Inclusionary Unit as the owner's principal place of residence within 60 days of the owner's receipt of a certificate of occupancy for the unit.

3. The owner shall reside in the Inclusionary Unit for at least 10 months out of each calendar year to be considered as occupying the Inclusionary Unit.

4. The owner shall not lease or rent the Inclusionary Unit or any portion of the Inclusionary Unit to another party. Any lease of the Inclusionary Unit or E.1
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a portion of the Inclusionary Unit will constitute a default under the requirements of this chapter and the affordable housing agreement.

H. Ongoing Affordability of Rental Units. In order to maintain the availability of Inclusionary Units constructed pursuant to this chapter, rental Inclusionary Units shall remain affordable for fifty-five years, as documented through an affordable housing agreement, as prescribed in Section 17.36.070.I, recorded against the property.

I. Affordability Agreement Documentation. The developer shall be required to execute standard documents, in a form approved by the city attorney, to ensure the continued affordability of the Inclusionary Units approved for each Residential Development Project. The documents may include, but are not limited to, Inclusionary Housing agreements, regulatory agreements, promissory notes, deeds of trust, resale restrictions, rights of first refusal, options to purchase, and/or other documents. The affordability documents shall be recorded against the Residential Development Project, all Inclusionary Units, and any site subject to the provisions of this chapter.

17.36.080 – Implementation and Enforcement

A. Establishment of Guidelines by Resolution. If it so desires, the city council may adopt inclusionary housing guidelines, by resolution, to assist in the implementation of this chapter.

B. Establishment of Administration Fees by Resolution. The city council, by resolution, may establish fees for the ongoing administration and monitoring of the affordable units, which fees may be updated periodically, as required.

C. Enforcement. The city attorney is authorized to enforce the provisions of this chapter and all affordable housing agreements, regulatory agreements, covenants, resale restrictions, promissory notes, deeds of trust and other requirements placed on Inclusionary Units by civil action and any other method permitted by law. The city may take such enforcement action as is authorized under this code and/or any other action authorized by law or by any regulatory document, restriction, or agreement executed under this chapter.

D. Project Approval Restrictions. No permit, license, map, or other approval or entitlement for a Residential Development Project shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

E. Annual Monitoring. Homeowners will receive an annual monitoring notice from the city to confirm the owner occupancy requirement and prohibitions against rental of the dwelling. The review will provide owners with an opportunity to become familiar with the guidelines of the Inclusionary Housing Program and any E.1
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changes in adopted policies and procedures. For rental units, an annual monitoring notice from the city will be sent to all management agencies to confirm residents are eligible to affordable units.

INTRODUCED at a regular City Council meeting on the 4th day of December, 2023.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 4th day of December, 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. 1243 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 4th day of December, 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 December, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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STAFF REPORT

CITY COUNCIL SPECIAL MEETING AGENDA
MEETING DATE: SEPTEMBER 11, 2023
SUBMITTED: September 1, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Planning
Christine Hopper, Development
Services Director

TITLE OF ITEM: INCLUSIONARY HOUSING ORDINANCE

BRIEF DESCRIPTION: The City Council will hold a study session to discuss the draft Inclusionary Housing Ordinance and will provide direction to staff.

RECOMMENDATION: Receive the presentation, take public comment, and provide direction regarding the draft Inclusionary Housing Ordinance.

DEPARTMENT SUMMARY: The City of Hollister contracted with Placeworks Inc. to prepare an Inclusionary Housing Ordinance which will require new residential development projects to provide affordable housing as a percentage of the overall development. The Planning Commission reviewed the draft ordinance at a public hearing on March 23, 2023 and adopted Planning Commission Resolution 2023-10 recommending approval of the ordinance to the City Council. The City Council held a public hearing for the first reading of the draft ordinance on May 1, 2023. During that meeting, the City Council directed staff and Placeworks to host an additional public workshop and study session to receive further feedback and public comment on the draft ordinance prior to adoption. The staff report and draft ordinance from the May 1, 2023 meeting are attached to this report as a reference.

Staff held a public workshop on August 3, 2023 to receive feedback on the draft ordinance. A summary of the workshop and public comments received is attached to this report. The study session will provide an opportunity for additional public comment as well as for the City Council to provide feedback to staff on the draft ordinance. Pending direction from the City Council, staff will revise the ordinance as necessary, and schedule adoption hearings before the Planning Commission (if revisions are directed) and City Council.

ATTACHMENTS:

1. IH_Workshop_Memo

2. 2023.05.01 CC Staff Report and Draft Ordinance

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

STAFF RECOMMENDATION

David Mirrione, City Manager

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MEMORANDUM
DATE August 25, 2023
TO Eva Kelly, Ambur Cameron and Christine Hopper
City of Hollister
FROM Greg Goodfellow
SUBJECT Inclusionary Housing Workshop Results and Study Session Recommendations Eva, Ambur and Christy,
This Memo includes results and insights from the August 3, 2023, Inclusionary Housing (IH) Workshop at the City of Hollister Veteran’ Memorial Hall.

Twenty members of the public, excluding the project team and city staff members, attended the event in-person. Ten to fifteen community members participated virtually.

MEMO FRAMEWORK
The structure of this Memo parallels the eight questions of the “IH Preference Worksheet” (Appendix A) completed by workshop participants. Quantitative results of the questions are summarized and “Potential Study Session Topics” are presented. These topics are derived from participants’ questions and comments expressed during the discussion of the relevant worksheet section.

SUMMARY OF PARTICIPATION
There were two significant workshop participation trends. First, nearly all participants engaged in robust discussions about all components of IH. These include the position of IH in the larger context of state and local housing regulation; the households and demographics set to benefit from IH and the impact of IH on Hollister’s built environment. At the same time, participants had many questions regarding the various technical components of IH, the administration of the policy and other ordinance details.

Similarly, not all participants completed the IH Preference Worksheet, and some who did, did not answer the more technical questions. PlaceWorks has concluded that:
» Residents of Hollister are supportive of inclusionary housing and the provision of affordable housing in general. Workshop participants demonstrated a commitment to involvement and understanding of IH policy.
» Inclusionary housing is complex and technical, and understanding the policy requires a learning curve that may have impacted full participation during this workshop. However, the workshop established a foundation of understanding that will inform the upcoming City Council Study Session.

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August 25, 2023 | Page 2

QUESTION 1: MINIMUM AFFORDBAILITY REQUIREMENT
Summary: Community members prefer a 15% IH affordability requirement, with no density bonus.

Workshop participants were given the opportunity to select either a 20% affordability requirement with a local density bonus, as currently drafted in the IH Ordinance; a 15% requirement with no local density bonus, or “Other.” Participants nearly unanimously the selected 15% option, with only one participant choosing “Other,” in the form of a 15% requirement paired with a local density bonus.

No participants selected the 20% option. Multiple participants submitted strong verbal and written comments highlighting the perceived risk of a 20% requirement. One in-person resident wrote that it would “result in no housing construction….no CDBGs, lawsuits, community members left behind, piling into houses, [and] parking on lawns…” Another stated that it “…is essentially a housing moratorium.” Potential Study Session Topics
» Missing Middle Housing Support. Participants discussed the fact that while low-income households need housing support, so do middle income families. As stressed, there is a gap in housing opportunities for “missing middle” 1st time homebuyers and “we need opportunities to purchase housing in the $550-$700K range as well.”
» IH and State Housing. There is a need to contextualize IH policy for residents. Participants asked if IH is tied to the RHNA process and other state affordability laws, and whether the City’s RHNA number would impact the IH ordinance.

QUESTION 2: SPLIT OF AFFORDABILITY REQUIREMENTS ACROSS INCOME LEVELS Summary: Community members prefer allocating a higher proportion of required units to lower-income households, as currently drafted.

The second topic of the worksheet and discussion was the split of IH requirements across household income levels. The current Draft IH Ordinance includes the following split:

1. No more than six percent of the dwelling units shall be affordable to Moderate Income Households.

2. Up to 13 percent of the dwelling units shall be affordable to Low Income Households.

3. Seven to 20 percent of the dwelling units shall be affordable to Very Low Income Households.

As shown in Figure 1, workshop results indicate that in general, the community agrees with the idea that more units should be made affordable to Low and Very Low Income households. About half of responders answered that three percent of Moderate Income units should be made affordable, while all responders felt that either five or six percent of Low Income units should be made affordable. Very Low Income units were also skewed to the higher end of affordability requirement, with deviations at both ends of the affordability spectrum.

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August 25, 2023 | Page 3
Figure 1. Affordability Across Household Income

Potential Study Session Topics
» Sliding Scale vs. Straight Requirements. As described above, the current Draft Ordinance does not include defined required percentages for each affordability level but is designed to offer flexibility.

Some participants questioned this method and suggested a set of limited requirements may be more straightforward.

QUESTION 3: HOUSING TENURE
Summary: Community members feel that a larger portion of for-rent housing should be dedicated to lower-income units than that of for-sale units.

Per the current Draft IH Ordinance, the 20% affordability requirement applies equally to for-sale and rental housing projects. Participants were asked how their preferred total IH requirement should apply to housing projects of different tenure.

As shown in Figure 2, participants generally feel that most of the desired 15% total requirement should be allocated to for-rent development, with about 70% of responders stating that that an affordability requirement of at least 10% should be allocated to for-rent development. The remainder stated that all 15% should be allocated to for-rent housing. On the other hand, 80 percent of participants felt that an affordability requirement of 7.5 percent or less should be applied to for-sale housing.

0%20%40%60%80%100%
Very Low Income
Low Income
Moderate Income
Percent of Worksheet Responses
Ho
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h
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I
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L
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3% Affordable 5% Affordable 6% Affordable 7% Affordable E.1.b
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Figure 2. Application of IH Requirements to Housing Tenure Type

Potential Study Session Topics
» Ability of VLI households to purchase homes. Two participants stated verbally that VLI requirements should be skewed to for-rent units, because VLI households are unlikely to afford home buy-in costs such as a down payment. However, another participant stressed that first-time buyer programs can make home purchase possible for all households, including VLI households. » Constructing Rental Units for For-Sale Requirements. A potential topic of the study session is whether the IH ordinance should include a clause that states that all or some of the required IH units for for-sale developments, should be dedicated to rental housing. One workshop participant suggested that this would further ensure needed rental housing for low income households. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
For-Sale For-Rent
Pe
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n
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o
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s
h
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R
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Housing Tenure Type
5% Affordable 7.5% Affordable 10% Affordable 15% Affordable E.1.b
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QUESTION 4: MINIMUM PROJECT SIZE
Summary: Community members support the currently-drafted minimum project size of 10-units.

The current draft ordinance includes a minimum project size of 10 units. Asked what their preferred minimum size threshold is, nearly all workshop participants selected “As drafted.’ Only one responder suggested raising the threshold to 15 units.

Potential Study Session Topics
There were no additional questions or comments related to this topic during the workshop.

QUESTION 5: IN-LIEU FEE OPTION FOR FOR-SALE HOUSING
Summary: The community is split on offering an in-lieu fee option for for-sale housing.

In accordance with state law for IH ordinances with for-rent affordability requirements greater than 15%, the current draft IH Ordinance includes an in-lieu fee option for all for-rent developments. As currently drafted, the option is not available for for-sale housing.

Fifty-five percent of respondents stated that an in-lieu fee should be made available to developers of for-sale housing, while 45 percent stated it should not. As indicated by the following questions and comments, the establishment and administration of in-lieu fees is a complicated process that may impact the community’s ability to make an informed decision on the topic.

Potential Study Session Topics
» In-lieu Fee Calculation and Process. Participants asked what kind of analysis would be performed to set the in-lieu fee. Others questioned why the draft ordinance did not include the specific fee amount and how it was possible to adopt the ordinance without that amount set. The questions indicate the need to outline the in-lieu fee analysis and administration process. » Ensuring the Value of In-lieu Fees. The study session should include a demonstration of how in-lieu fees will be adequate to cover the cost of constructing for-sale units. One participant stressed that because the “the fees won’t ever cover the cost of building the homes”, no developer would take on the process of actual construction over fee payment. » In-Lieu Fee Alternatives. Some participants suggested allowing options for in-lieu fees, such as having the fees credited in the form of on-site, vacant lots that would made available for BMR development by non-profit affordable builders.

QUESTION 6: ALTERNATIVE COMPLIANCE OPTIONS
Summary: Community members overwhelmingly support developer options for complying with IH affordability requirements.

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August 25, 2023 | Page 6
The current draft ordinance does not include options for complying with the current 20 percent affordability requirement, other than the state-required in-lieu fee for rental housing. Participants were shown a list of potential compliance options and asked which, if any, they support. The worksheet also included a “None” option, which no responders selected.

As shown in Figure 3, while all the potential alternative compliance options were selected by participants at a consistent rate, there was a slight preference for:
» Partnering with non-profit affordable housing builders. » Compliance split between affordable units and in-lieu fees

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Figure 3. Alternative IH Compliance Options

Potential Study Session Topics
» Construction of Targeted Support Housing. Based on participant feedback, the community and Council could consider the construction of targeted support housing, such as group homes for needy youth and transitional housing developments, as an alternative to complying with IH requirements.
» Council Selection of Alternatives. There is a broad range of alternative compliance options that could be incorporated into the Inclusionary Housing Ordinance. As indicated by participant discussion, the City Council should be prepared to discuss how the City would prioritize the selection of one alternative over another, and the total number of alternatives potentially included in the ordinance.

QUESTION 7: ADDITIONAL IH SUPPORT MEASURES
Summary: There is general sense that residents would like to include IH support measure in the ordinance However, written and verbal feedback on this topic was restricted to fewer participants than that of other topics.

12.9%

16.1%

25.8%

19.4%

12.9%

12.9%
Percent of Worksheet
Resonses Shown
None Off-Site Units
Off-Site Land Dedication Non-Profit Partnerships
Spit Units/In-Lieu Fees Clustering BMR Units
Other
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August 25, 2023 | Page 8
The current draft ordinance includes a local density bonus developed to support developers in fulfilling IH requirements. Participants were asked what other support measures they support, from reduced parking standards to streamlined project review. Some participants left this answer blank on the worksheet, suggesting limited understanding of the nine IH support measures listed. Of those that answered the question, most selected all measures listed. Additional measures added by responders include:
» Impact fees paid by square feet/unit
» Project site “prezoning” for the development
Potential Study Session Topics
» City Interest in Incentives. Participants questioned how motivated the City is to allow for modifications to development standards, such as new height allowances, setback flexibility and reduced parking minimums. The current IH ordinance allows these for these incentives when fulfilling the density bonus, but not generally.
» Financial Incentives. Some participants raised the issue of providing some sort of financial incentives for developers to support IH development. This Council may wish to consider this issue as part of the study session.

QUESTION 8: OTHER COMMENTS AND ISSUES
The final question of the IH worksheet allowed participants to contribute final thoughts or questions.

The following were recorded both on the worksheets and in the ensuing discussion:
» Restriction to County Residents. One participant stressed that Hollister is already an “inclusionary environment” because “people move here because it is affordable.” The potential for a guarantee that locals would have the opportunity to qualify for the BMR units first was discussed. The community and Council could consider restricting the 15% requirement to existing residents of San Benito County.
» Avoid Clustering. Participants highlighted the desire to ensure that low-income neighborhoods are not clustered together and that neighborhoods include all income ranges and demographics. » Concerns about Density. Participants expressed the following concerns with future high building densities in Hollister:
o Lack of transit and the apparent difficulty building new bus and rail operations into and within Hollister.
o Lack of central parking structures and shared parking downtown. o Provision of open spaces associated with increased population densities. » Need for Collaboration. Participants stressed the need to work with outside advocates, including the San Benito County Homeless/Housing Committees, Silicon Valley Housing Trust and Home Key and other State programs focused on youth homelessness and foster housing » Community Trust. IH housing highlights the need to be careful about systemic racism and community planning, especially in the provision of offsite development. As stated, the entire E.1.b
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August 25, 2023 | Page 9
community benefits from the provision of inclusionary housing of all types, from for-sale homes to apartments. The ordinance should be developed so as to facilitate on-site development, to ensure balanced development of market-rate and affordable residential units throughout the community.

In-lieu fees and alternative compliance should be the second choice.

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STAFF REPORT

CITY COUNCIL REGULAR MEETING AGENDA
MEETING DATE: MAY 1, 2023
SUBMITTED: April 13, 2023
DEPARTMENT:

DEPARTMENT HEAD:

Planning
Christine Hopper, Development
Services Director

TITLE OF ITEM: ORDINANCE NO. 2033 AN ORDINANCE OF THE CITY OF HOLLISTER APPROVING ZONING ORDINANCE AMENDMENT 2023-4 TO ADOPT CHAPTER 17.36

INCLUSIONARY HOUSING PROGRAM

BRIEF DESCRIPTION: An Ordinance to Adopt a new Chapter 17.36, Inclusionary Housing Program, into the Zoning Ordinance, which would require new residential development to provide 20% affordable housing units on-site.

RECOMMENDATION: Staff recommends that the City Council introduce an Ordinance to adopt Chapter 17.36 Inclusionary Housing Program, hold a public hearing, and schedule a second reading of the Ordinance for the May 15, 2023 City Council meeting.

DEPARTMENT SUMMARY:

The City of Hollister has engaged with PlaceWorks to prepare the City’s 2040 General Plan Update (GPU). In community discussions, City leaders discussed prioritizing the a ffordable housing stock in Hollister and developing strategies to facilitate the development of affordable housing units. One specific strategy discussed is the creation of an inclusionary housing ordinance to require all new residential development projects to include a percentage of affordable housing units. The City Council, based on recommendations from the General Plan Advisory Committee and Planning Commission, provided staff direction to incorporate an action item into the General Plan Update calling for the creation of a citywide inclusionary housing ordinance that requires all for-sale and rental residential development projects to provide 20% affordable housing units on-site.

In addition, the City of Hollister was awarded SB 2 Planning Grant funding, part of which was allocated for the creation of an inclusionary housing ordinance. With the policy direction that resulted from the ongoing GPU, Staff was directed by the City Council to establish an Inclusionary Housing Ordinance for the City of Hollister with a 20% affordability requirement, and to prepare a feasibility analysis to assess the potential impacts of that requirement on the financial feasibility of a range of development prototypes.

BACKGROUND:

Assembly Bill (AB) 1505 was enacted to ensure that inclusionary housing ordinances do not unduly constrain housing production or deprive developers of fair and reasonable returns on their investments. Per AB 1505, the California Department of Housing and Community Development (HCD) has the authority to review the financial feasibility analysis of a local inclusionary housing program if the program requires more than 15 percent of rental units to be restricted to households earning less than 80 percent of the area median income (AMI). AB 1505 also states that HCD may request review of the Feasibility Analysis if any of the following are true:

 The City failed to meet 75% RHNA over 5-year period; or

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 The City failed to submit housing element for 2+ years.

As a result of AB 1505 and to ensure the City is meeting all State requirements, staff consulted with PlaceWorks to complete a financial feasibility analysis of the 20 percent inclusionary requirement directed by City Council, and to identify incentives required to offset potential financial constraints posed by the requirement. The financial feasibility analysis is based on a series of pro formas of five residential development “prototypes” that are representative of current development trends in Hollister. For each development prototype, the financ ial feasibility of a fully-market rate scenario is compared to the financial feasibility of a scenario that fulfills the 20% inclusionary requirement. The financial feasibility analysis also identifies strategies that are required to be implemented within the proposed ordinance in order to assure that the ordinance does not constrain development.

ANALYSIS:

Inclusionary Housing Program Financial Feasibility

Methodology

Feasibility studies for inclusionary housing ordinances determine the quantity of aff ordable housing units that proposed development project(s) can bear while remaining financially feasible. The financial impacts of an inclusionary housing requirement on a residential development project can be determined by comparing the difference between the financial performance of a fully market-rate development project to the same project that provides the required number of below-market rate (BMR) units, while also receiving any available density bonus and other allowed incentives.

Pro Forma

PlaceWorks prepared a series of pro forma financial analyses for each development prototype to identify whether, and how, a 20 percent affordability requirement could be supported by the market-rate components of the project. The pro formas rely on multi-year cash flow projections to achieve the most accurate evaluation of feasibility. PlaceWorks developed three for-sale and two for-rent housing development prototypes that reflect recent development patterns in Hollister. PlaceWorks developed these prototypes using multiple inputs to ensure they are representative of local development patterns and provide for the most accurate analysis possible within the limitations of a financial feasibility assessment.

The five analyzed prototypes are as shown:

 Prototype 1 For-Sale. Low-density single-family detached housing subdivision at a gross density of 4 dwelling units per acre.

 Prototype 2 For-Sale. Medium-density single-family detached housing subdivision at a gross density of 10 dwelling units per acre.

 Prototype 3 For-Sale. High-density stacked-flat condominium project comprising a four-story building with 12 residential units over tuck-under parking, for a gross density of 40 units per acre.

 Prototype 4 Rental. Medium-scale three-story apartment development at a density of 20 units per acre.

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 Prototype 5 Rental. Larger-scale four-story apartment development at a density of 32 units per acre.

The financial feasibility of each development prototype was analyzed under three different scenarios. The industry-accepted metric of 15% Internal Rate of Return (IRR) was used to determine the feasibility of the for-sale prototypes; 6% Cash-on-Cash (COC) Yield was used for the rental projects:

1. Fully Market Rate Scenario. This scenario consists of a fully market rate development prototype, without the introduction of affordability requirements.

2. Inclusionary Scenario. Under this scenario, seven percent of the development prototype’s housing units are dedicated to very low income households, seven percent to low income households, and six percent to moderate income households, for a total of 20 percent. This scenario also includes the maximum 25% State Density Bonus which is afforded for projects which provide seven percent very low income units.

3. Local Bonus Scenario. In all five development prototypes, the Inclusionary Scenario resulted in financial infeasibility. The Local Bonus Scenario was developed to identify the number of additional market-rate units beyond those allowed under state density bonus law, that would be needed to achieve financial feasibility with the inclusionary requirement. It is assumed this additional density would be facilitated by a locally adopted density bonus allowance.

Summary

Overall, the financial feasibility analysis found the Fully Market-Rate Scenarios of all five development prototypes were financially feasible. The for-sale prototypes achieved IRRs of 17 to 47%, while the rental prototypes demonstrated COC Yields at or above six percent. This is not surprising given they are based on current development patterns and reflect current market trends.

As noted above, the Inclusionary Scenarios of all five prototypes dropped to infeasible levels.

For-sale projects showed IRRs of 6.3% to -19.4% and rental projects achieved COCs of 5.7% and 5.9%. This indicates that a 20% inclusionary requirement consisting of roughly equal proportions of very-low-, low- and moderate-income units will render residential development projects financially infeasible. The addition of units per State Density Bonus L aw is not sufficient to offset that impact.

The results of the Local Bonus Scenario illustrate the additional density that would be required to bring the inclusionary projects to feasibility. This increase ranges from up to 15% for rental projects to up to 55% for smaller, for-sale projects. As such, the analysis finds that in order to ensure that a 20% inclusionary requirement does “unduly constrain” development, the City of Hollister should provide the additional ordinance components:

 A local density bonus allowance that goes beyond the required by State law.

 Increases in allowed site density to accommodate bonus densities.

 An in-lieu fee for rental housing projects, to meet State requirements for an alternative to on-site inclusionary housing provision in rental projects.

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 An allowance for for-sale residential projects to include affordable attached single -family units in a proportion that constitutes more than the proportion of attached units in the overall project.

 An allowance for single-family detached residential units counted toward the inclusionary requirement to have smaller lots than single-family detached market-rate units in the same residential project.

Inclusionary Ordinance

The purpose of this Inclusionary Housing Ordinance is to enhance the public welfare by facilitating the development of housing affordable to households of very-low, low, and moderate income, and to ensure the utilization of developable land in the City of Hollister is compatible with State and local housing policies. Requiring inclusionary below market rate (BMR) units within each residential development project is consistent with the City’s current Housing Element goals of developing affordable housing opportunities, creating diverse housing opportunities for existing and future residents, and maintaining economic diversity and geographically dispersed affordable housing.

Goals of the 2015-2023 Housing Element

Goal H4.1 promote a fair share of well-designed affordable and varied housing in all neighborhoods throughout the City.

Goal H4.4 of the 2015-2023 Housing Element establishes the primary intent to adopt an inclusionary housing policy around the year 2020.

Goal H4.6 focuses on establishing resale controls with future grant and inclusionary programs to ensure homes are maintained at an affordable rate through longer periods of time.

Key Provisions

Within the Inclusionary Ordinance is a set of key provisions as guidance to how the ordinance will be implemented on all future residential development projects.

As shown in Section 17.17.050 of the ordinance, the inclusionary requirements are broken into three income categories to equal the 20% inclusionary requirement with more emphasis is targeted to provide more very-low and low income units.

 At least seven percent of the dwelling units shall be affordable to Very Low Income Households.

 At least seven percent of the dwelling units shall be affordable to either Very Low Income or Low Income Households.

 At least six percent of the dwelling units shall be affordable to Moderate Income Households.

Project Size Exemption

The ordinance indicates residential project developments 10 units or less are not subject to the inclusionary ordinance. All residential development projects greater than 10 units are subject to the inclusionary ordinance and expected to provide 7% very-low, 7% low, and 6% moderate income units.

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Location & Size of Inclusionary Units

All inclusionary units must demonstrate the following requirements:

 Be built on the same site as the remainder of the Residential Development Project and be reasonably dispersed throughout the Residential Development Project to prevent a concentration of affordable units.

 Have the same access to common open space and shared facilities in the Residential Development Project as do the Market Rate Units.

 Be dispersed throughout the residential development project(s)

Fractional Units

If the number of for-sale and rentals inclusionary units result in a fractional unit equal to one -half (0.5) or more, the fraction shall be rounded to, the next higher whole number and an additional Inclusionary Unit shall be provided. If the number of for-sale and rentals inclusionary units result in a fraction less than one-half (0.5), the developer shall have the option of rounding up to the next whole number and providing the Inclusionary Unit or paying a fee in lieu of providing an additional Inclusionary Unit.

In-Lieu Fee

In-lieu fees shall be set by resolution of the city council and shall be an amount sufficient to pay the proportionate cost of providing Inclusionary Units elsewhere in the city. The fee shall be periodically reviewed and updated by the city council. The amount of in lieu fees shall be included in the City's master fee schedule and may be adjusted annually for inflation using an appropriate index, as determined by the city council.

In-Lieu Payments

A developer of a Rental Residential Development Project may pay a fee may in lieu of providing Inclusionary Units or to offset required fractional units below one-half (0.5) of a unit. A developer of a For-Sale Residential Development Project may only pay a fee to offset required fractional units below one-half (0.5) of a unit and cannot pay a fee in lieu of providing Inclusionary Units.

Density Bonus

The City shall provide a density bonus of up to 56% for for-sale residential projects, and up to 15% for rental residential projects.

Timing of Payment

Payment of in-lieu fees shall be due at the issuance of building permits for the Rental Residential Development Project. For Rental Residential Development Projects constructed in phases, in-lieu fees shall be paid prior to issuance of each building permit in the proportion the phase bears to the overall Rental Residential Development Project.

Unit Type & Physical Quality

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 Be built in the same proportion as the Market Rate Unit Types, except as provided in Sections 17.17.080.C and 17.17.080.D.

 Have an average square footage of at least 85 percent of Market Rate Units with the same bedroom count.

 Be developed with the same bedroom count ratio as the Market Rate Units.

 Have the same interior finishes and features as the Market Rate Units.

 Have the same exterior design and overall quality of construction as the Market Rate Units.

Income Requirements & Resale Restrictions

The inclusionary program will require households purchasing an affordable unit qualify based on income and the sales price qualify as affordable to the household. Additionally, the city’s ordinance will restrict future resales for a term of thirty (30) years, so the next purchasing household must also be income-qualified and the sales price represent an affordable housing payment for the purchasing household. If the home is sold within the term, the new homeowner will be subject to a full thirty (30) year affordability requirement.

Monitoring

Homeowners will receive an annual monitoring notice from the City to confirm the owner occupancy requirement and prohibitions against rental of the dwelling. For rental units, an annual monitoring notice from the City will be sent to all management agencies to confirm residents are eligible to affordable units.

PLANNING COMMISSION:

At the March 23, 2023 regular meeting of the City of Hollister Planning Commission, the Commission voted unanimously to adopt a resolution recommending approval of the draft ordinance to the City Council (Resolution 2023-10 attached). There were no proposed changes to the draft ordinance, and no members of the public provided comment during the public hearing.

The full presentation and discussion of the Inclusionary Housing Program can be viewed at the following link, beginning at the 1:17:38 timestamp.

https://www.youtube.com/watch?v=k1Y450raoTw

The presentation slides which were presented to the Planning Commission are also included as an attachment to this report.

CONCLUSION:

However, an inclusionary housing program is one tool that will help the City to meet its RHNA and is discussed in the current Housing Element and a goal in the General Plan Update. City of E.1.c
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Hollister staff recommend the City Council to receive and accept the financial feasibility study. In addition to the study, provide staff direction on the adoption of the inclusionary housing ordinance Section 17.36 of the City of Hollister Municipal Code.

CITY COUNCIL OPTIONS:

The City Council can choose one of the following options:

1. Introduce the draft ordinance with the intention to approve a Zoning Ordinance Amendment to adopt Chapter 17.36, Inclusionary Housing Program, with the draft Chapter 17.36 included as Exhibit A and the Inclusionary Housing Program Financial Feasibility Analysis included as Exhibit B.

2. Introduce the draft ordinance with the intention to approve a Zoning Ordinance Amendment to adopt Chapter 17.36, Inclusionary Housing Program, with the draft Chapter 17.36 included as Exhibit A and the Inclusionary Housing Program Financial Feasibility Analysis included as Exhibit B with modifications by the City Council; or

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

Staff recommends the City Council select Option 1 for this Item.

FINANCIAL IMPACT: $0

ATTACHMENTS:

1. Exhibit A. DRAFT_IH_FFA_3.15.23

2. Attachment 1. Resolution 2023-10_ZOA 2023-4_Inclusionary Housing

3. Attachment 2. 3.23.23_Hollister PC_Pres_Inclusionary Housing

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

THE STAFF RECOMMENDATION

David Mirrione, Interim City Manager

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ORDINANCE NO. 2033

AN ORDINANCE OF THE CITY OF HOLLISTER APPROVING ZONING ORDINANCE AMENDMENT 2023-4 TO ADOPT CHAPTER 17.36 INCLUSIONARY HOUSING PROGRAM

WHEREAS, the State of California requires local governments to plan to meet the housing needs of all income groups. Specifically, "local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community" pursuant to the State Government Code Section 65580; and

WHEREAS, Housing Element Goal H4 of the General Plan requires the City to develop affordable housing opportunities in the City. Furthermore, Policy H.4 of the Housing Element requires the City to establish a program for increasing affordable housing in the City by requiring residential developers to provide a percentage of the units within a residential development to very low, low and moderate income households; and

WHEREAS, on August 3, 2020 the City Council adopted Resolution 2020-147 accepting awarded grant funding from Housing and Community Development related to the Senate Bill 2:

Building Homes and Jobs Act (SB2) planning grant program; and

WHEREAS, as part of the ongoing 2040 General Plan Update, the City Council at its regular June 21, 2021 discussed affordable housing within the City and potential inclusionary requirements and directed Staff include a 20 percent affordability component as a recommended policy within the 2040 General Plan Update; and

WHEREAS, on November 1, 2021 the City Council, based on the recommended policy direction for the General Plan Update, directed Staff to conduct a financial feasibility analysis and prepare an inclusionary ordinance which requires residential developers to include a 20 percent affordability component utilizing the award SB Planning Grant funds; and

WHEREAS, on January 18, 2022 Staff discussed the inclusionary ordinance with the City Council and the City Council reaffirmed that the inclusionary ordinance should be prepared which requires a 20 percent affordability component for all residential projects; and

WHEREAS, the Inclusionary Housing Program Financial Feasibility Analysis dated January 2023 was prepared by PlaceWorks and is included to this Resolution as Exhibit A; and

WHEREAS, the Inclusionary Housing Program Financial Feasibility Analysis used, appropriate methodology to compare the difference between the financial performance of a fully market-rate development project and one that provides the required number of below-market rate (BMR) units while also receiving any available density bonus and other allowed incentives; and

WHEREAS, the Inclusionary Housing Program Financial Feasibility Analysis finds that a 20% inclusionary requirement for for-sale and rental residential projects, consisting of roughly equal proportions of very-low-, low- and moderate-income unit, is financially feasible if the City of Hollister provides additional incentives to the developer as defined in the Inclusionary Housing Program Financial Feasibility Analysis; and

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WHEREAS, based on policy direction for the 2040 General Plan Update from the General Plan Advisory Committee (GPAC), Planning Commission, City Council, and the results of the Inclusionary Housing Program Financial Feasibility Analysis, Staff has prepared Draft Chapter

17.36, Inclusionary Housing Program, which requires a 20 percent affordability component for all residential developments over 10 units and includes additional incentives, as recommended in the Inclusionary Housing Program Financial Feasibility Analysis, to ensure financial feasibility of the inclusionary requirement; and

WHEREAS, after closing the public hearing the Planning Commission determined to adopt Resolution 2023-10 recommending approval of the draft ordinance to the City Council; and

WHEREAS, the City Council held a duly noticed public hearing on May 1, 2023 to review the new Chapter 17.36, Inclusionary Housing Program, during which all interested parties were heard; and

WHEREAS, the proposed Zoning Ordinance amendment is 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 any future development projects will be subject to the requirements of CEQA and therefore the proposed amendments are not a project under CEQA and are exempt from further review (CEQA Guidelines, Section 15378); and

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

Title 17 Zoning is amended to add Chapter 17.36 Inclusionary Housing Program, which shall read as follows:

Chapter 17.36 – Inclusionary Housing Program

17.36.010 – Chapter Title

The Ordinance codified in this chapter shall be known and may be cited as the "Inclusionary Housing Program" of the City of Hollister.

17.36.020 – Purpose

The purpose of this Inclusionary Housing Program is to:

A. Enhance the public welfare by facilitating the development of housing affordable to households of Very Low, Low, and Moderate Income.

B. To ensure that future residential development is consistent with housing policies of the State of California and the City of Hollister.

C. To ensure that each Residential Development Project complies with the requi rements of this Chapter and is consistent with the city's housing goals of developing affordable housing opportunities, creating diverse housing opportunities for existing and future residents, and maintaining economic diversity and geographicall y dispersed affordable housing.

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17.36.030 – Definitions

A. Accessory Dwelling Unit (ADU) shall have the same meaning as defined under Section 65852.2(j) of the Government Code and shall mean an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling. An ADU also includes an efficiency unit and a manufactured home, provided it is built on a permanent foundation. An ADU may be located within an existing attached or detached garage, shed, barn or other accessory structure.

B. Administrator shall mean the Inclusionary Housing Program Administrator, which shall either be the City itself or a third-part administrator acting as an agent for the City in connection with all aspects of the operation of the Inclusionary Housing Program pursuant to an Agreement entered into between the City and the Administrator, as such agreement may be amended or replaced from time to time.

E. Density Bonus shall mean a density increase over the otherwise maximum allowable density on a site, as may be permitted by the City of Hollister in Chapter 17.34, Density Bonus (referred to as the “Local Bonus” in this Chapter, or pursuant to California Government Code Section 65915 and Article 15.04.602 (referred to as the “State Bonus” in this Chapter, or for any other reason.

F. Detached Single-Family Dwelling Unit shall mean a dwelling unit intended for use by a single household and not attached to any other building.

H. Inclusionary Unit shall mean a dwelling unit intended for sale or rent that is required by Article 17.36.050 to be affordable to Very Low, Low, or Moderate Income Households.

J. Market Rate Unit shall mean a new dwelling unit in a Residential Development Project that is not an Affordable Dwelling Unit.

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K. Moderate Income Household shall mean a household whose income does not exceed the moderate income limits applicable to San Benito County as defined in Califo rnia Health and Safety Code Section 50079.5 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 by the California Department of Housing and Community Development.

M. Rental Residential Development Project shall mean a Residential Development Project that creates one or more dwelling units that cannot be lawfully sold individually in conformance with the Subdivision Map Act.

N. Residential Development Project shall mean a development for which a discretionary approval or building permit is required for a residential development that includes the creation of one or more new dwelling units, conversion of nonresidential uses to dwelling units, or the conversion of a use from a Rental Residential Development Project to a For-Sale Residential Development Project.

O. Unit Type shall mean the type of dwelling unit, either Attached Single-Family Dwelling Unit, Detached Single-Family Dwelling Unit, or Multi-Family Unit.

P. Very Low Income Household shall mean a household whose income does not exceed the very low income limits applicable to San Benito County as defined in California Health and Safety Code Section 50079.5 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 by the California Department of Housing and Community Development.

Q. Vesting Tentative Map shall mean a map which confers certain vested rights to proceed with development for a specified period of time after recordation.

17.36.040 – Effective Date and Inclusionary Housing Requirement Applicability

A. Applicability. All For-Sale and Rental Residential Development Projects that consist of 10 or more units built anywhere in the City of Hollister shall comply with the requirements of this chapter.

B. Exemptions. The provisions of this chapter shall not apply to the following projects:

1. Accessory Dwelling Units.

2. Residential Development Projects with less than 10 dwelling units.

3. Residential Development Projects on property with vested rights in effect on the effective date of this chapter, including:

a. Property that is part of a Vesting Tentative Map.

b. Development that is part of an existing development agreement with the City.

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6. Residential Development Projects exempted by another state law or by final judgement of a court of competent jurisdiction.

17.36.050 – Inclusionary Housing Requirements

All new Residential Development Projects shall include Inclusionary Units. Calculations of the number of Inclusionary Units shall be based on the number of dwelling units in the Residential Development Project, without regard to any density bonus units as defined in this chapter. All required Inclusionary Units shall be built on the same site as the Residential Development Project.

A. Inclusionary Requirement. Twenty percent of all new Residential Development Projects shall be Inclusionary Units. The twenty percent total shall be achieved using the following allowable ranges of affordability. :

1. At least 7 percent of the dwelling units shall be affordable to Very Low Income Households.

2. At least 7 percent of the dwelling units shall be affordable to either Very Low Income or Low Income Households.

3. At least 6 percent of the dwelling units shall be affordable to either Very Low Income, Low Income or Moderate Income Households.

B. Rental Residential Development Projects. Instead of providing required inclusionary units on site, Rental Residential Development projects may pay the in-lieu fee specified in Section 17.36.060.

C. Fractional Units. When the application of the percentages specified in Section

17.36.060.A results in a number that includes a fraction equal to one-half (0.5) or more, the fraction shall be rounded to the next higher whole number. In that event an additional Inclusionary Unit shall be provided. If the result includes a fraction less than one-half (0.5), the developer shall have the option of rounding up to the next whole number and providing the Inclusionary Unit or paying a fee in lieu of providing an additional Inclusionary Unit. The amount of the fractional in-lieu fee shall be calculated as provided in Section 17.36.060.

D. State Density Program. Any Inclusionary Units provided on site in compliance with this chapter may be used to qualify for a density bonus under Chapter 17.34, Density E.1.c
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Bonus, California Government Code Section 65915, or any ordinance implementing Government Code Section 65915..

E. Local Incentives. Projects subject to this ordinance shall be entitled to the Local Incentives described in Section 17.17.070.

F. Base for Inclusionary Requirement. The number of Inclusionary Housing units required for a project shall be based on the total number of dwelling units in the Residential Development Project prior to the addition of units under the State Bonus or the additional Local Bonus.

G. Affordable Housing Agreement. The applicant shall execute a written agreement with the City indicating the number, type, location, approximate size, and co nstruction schedule of all dwelling units as required to determine project compliance with the requirements of this chapter.

H. Construction Timing. All Inclusionary Units shall be built prior to the full build -out of Market Rate Units in the same Residential Development Project. In phased developments, inclusionary units shall be constructed and occupied in proportion to the number of Market Rate Units constructed and occupied in each phase.

1. A building permit may not be issued for any Market Rate Unit unle ss a proportional number of building units has been issued for inclusionary units.

17.36.060 – Inclusionary Requirement In-Lieu Fees

As provided for in Sections 17.36.050.B and 17.36.050.C, a developer of a Rental Residential Development Project may pay a fee may in lieu of providing Inclusionary Units or to offset required fractional units below one-half (0.5) of a unit. A developer of a For-Sale Residential Development Project may only pay a fee to offset required fractional units below one-half (0.5) of a unit.

A. Purpose. This in-lieu fee is an option that may serve as an alternative to the provision of on-site inclusionary units as otherwise required by Section 17.36.050. Nothing in this chapter shall deem or be used to deem the in-lieu fee authorized in this section as an ad hoc exaction, as a mandated fee required as a condition to developing property, or as a fee subject to the analysis in Building Industry Association of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009).

B. Allowance. In-lieu fees may be paid as follows:

1. For-Sale Residential Development Projects. The developer of a For -Sale Residential Development Project may pay an in-lieu fee only for fractional units when the number of required inclusionary units includes a fraction less than one - half.

2. Rental Residential Development Projects. The developer of a Rental Residential Development Project may pay an in-lieu fee for all or any portion of inclusionary units required, including fractional units.

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C. Amount. In-lieu fees shall be set by resolution of the city council and shall be an amount sufficient to pay the proportionate cost of providing Inclusionary Units elsewhere in the city. The fee shall be periodically reviewed and updated by the city council. The amount of in lieu fees shall be included in the City's master f ee schedule and may be adjusted annually for inflation using an appropriate index, as determined by the city council.

D. Timing of Payment. Payment of in-lieu fees shall be due at the issuance of building permits for Rental Residential Development Project. For Rental Residential Development Projects constructed in phases, in-lieu fees shall be paid prior to issuance of each building permit in the proportion that the phase bears to the overall Rental Residential Development Project. Payment of a For-Sale fractional unit below one-half (0.5) of a unit shall be due prior to the issuance of building permits. The fees shall be calculated based on the fee schedule in effect at the time the permit is used.

E. Use. The City shall use in-lieu fees paid under this chapter to support the development of new housing affordable to extremely low, very low, low, and moderate-income households on sites in the City, and improve and preserve the existing supply of affordable housing in the City. In-lieu fees paid under this chapter may also be used to support appropriate Inclusionary Housing Program implementation and enforcement, provided the fees allocated toward these activities are established by city council resolution per Section 17.36.090.A.

F. Management. All in-lieu fees and other monies on deposit with the City shall be separately accounted for and shall not be used for purposes not authorized by Section

17.36.060.

17.36.070 – Inclusionary Housing Incentives

The City of Hollister will grant the following incentives to the developer of a Residential Development Project that provides required inclusionary units:

A. Density Bonus. A density bonus pursuant to Chapter 17.34, Density Bonus, of the Municipal Code, as follows:

1. For-Sale Residential Project: Up to 56% density bonus.

2. Rental Residential Project: Up to 15% density bonus.

This bonus is in addition to the density bonus allowed for affordable housing projects under State law, and shall be calculated as a percentage of the base Residential Development Project. Under no circumstance shall the total of the total Density Bonus (including both the Local Bonus and the State Bonus) exceed 66% for For-Sale Residential Projects and 40% for Rental Residential Projects, unless a greater Density Bonus is required by State law.

B. Modification of Zoning or Development Standards. The developer may be granted modifications to zoning and/or development standards as required to achieve the density bonus described in Section 17.36.070.A. Authority to act on a request for these development incentives shall rest with the final review authority regarding the underlying application.

17.36.080 - Inclusionary Unit Standards

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The following standards shall apply to all Inclusionary Units built to satisfy the requirements of this chapter.

A. Recipient Requirements. All inclusionary units shall be sold or rented to:

1. Moderate Income, Low Income or Very Low Income Households;

2. The City of Hollister or its designee.

B. Unit Type and Physical Quality. The Unit Types of the Inclusionary Units within a Residential Development Project shall:

1. Be built in the same proportion as the Market Rate Unit Types, except as provided in Sections 17.36.080.C and 17.36.080.D.

2. Have an average square footage of at least 85 percent of Market Rate Units with the same bedroom count.

3. Be developed with the same bedroom count ratio as the Market Rate Units.

4. Have the same interior finishes and features as the Market Rate Units.

5. Have the same exterior design and overall quality of construction as the Market Rate Units.

D. Affordable Detached Single-Family Dwelling Units counted toward the inclusionary requirement may have smaller lots than Market Rate Detached Single -Family Dwelling Units in the same Residential Development Project, provided that all lot sizes are consistent with the lot size requirements of this Title 17 (Zoning).

E. Location. All Inclusionary Units shall:

2. Have the same access to common open space and shared facilities in the Residential Development Project as do the Market Rate Units.

3. Be dispersed throughout the Residential Development Project.

F. Eligibility Screening. The Administrator shall screen prospective buyers or renters of affordable units. Buyers of affordable units shall enter into an agreement with the City.

Occupants must be selected by means of an open, public process ensures that individuals of a group of interested participants are selected in accordance with the City’s Live-Work Policy. Private selection of individuals by project owners is not permitted for any affordable units.

apply to Inclusionary Units, as documented through an affordable housing agreement, as prescribed in Section 17.36.080.H, recorded against the property:

2. The owner shall occupy the Inclusionary Unit as the owner's principal place of residence within 60 days of the owner's receipt of a certificate of occupancy for the unit.

3. The owner shall reside in the Inclusionary Unit for at least 10 months out of each calendar year to be considered as occupying the Inclusionary Unit.

4. The owner shall not lease or rent the Inclusionary Unit or any portion of the Inclusionary Unit to another party. Any lease of the Inclusionary Unit or a portion of the Inclusionary Unit will constitute a default under the requirements of this chapter.

17.36.090 – Implementation and Enforcement

A. Establishment of Guidelines by Resolution. If it so desires, the city council may adopt inclusionary housing guidelines, by resolution, to assist in the implementation of this chapter.

C. Enforcement. The city attorney is authorized to enforce the provisions of this chapter and all inclusionary housing agreements, regulatory agreements, covenants, resale restrictions, promissory notes, deeds of trust and other requirements placed on Inclusionary Units by civil action and any other method permitted by law. The city may take such enforcement action as is authorized under this code and/or any other action authorized by law or by any regulatory document, restriction, or agreement executed under this chapter.

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E. Annual Monitoring. Homeowners will receive an annual monitoring notice from the City to confirm the owner occupancy requirement and prohibitions against rental of the dwelling. The review will provide owners with an opportunity to become familiar with the guidelines of the Inclusionary Housing Program and any changes in adopted policies and procedures. For rental units, an annual monitoring notice from the City will be sent to all management agencies to confirm residents are eligible to affordable units.

INTRODUCED at a regular City Council meeting on the 1st day of May, 2023.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a Regular Meeting held this 1st day of May, 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. 2033 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 1st day of May, 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 May, 2023.

Jennifer Woodworth, MMC

City Clerk of the City of Hollister
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October 27, 2023

The Honorable Mia Casey, Mayor
Members of the City Council
& City Staff
City of Hollister
975 Fifth St.

Hollister, CA 95023
Transmitted via Email

Re: BIA Analysis of Proposed Inclusionary Housing Ordinance

Dear Mayor Casey, City Council Members, and City Staff,

The Building Industry Association of the Bay Area (BIA) strongly urges the City Council of the City of Hollister (“City”) to modify its policy directions for the proposed Inclusionary Housing Ordinance (Ordinance) that was considered at the September 18, 2018 Council Study Session because the sweeping consequences of policies and regulations in the proposed Ordinance would have a deleterious effect on housing production in Hollister.

Instead, BIA requests that the City follow best practices and conduct a thorough study of neighboring and nearby jurisdictions’ inclusionary housing strategies and then use that along with information contained in the attached BIA study to help inform policy direction within the City’s Inclusionary Housing Ordinance & Resolution that will not hinder the production of housing.

BIA Land Valuation Analysis Demonstrates the Crippling Effects of City Policies

BIA has commissioned a study that examines residential project feasibility vis a vis the proposed Ordinance by commissioning a two-part study. Part one analyzes the effect that the Council’s proposed policies regarding income mix (7% VLI, 5% LI, 3% M) on land valuation. Land valuation is a key concept of residential development pro forma known as “residual valuation.” Residual land value is the amount of value remaining to purchase land once projected revenues and all other costs associated with planning, constructing, and leasing/selling the project have been accounted for.

Part one of the study concludes that the fiscal impact of the Council’s policy directions could jeopardize, possibly eliminate, the financial feasibility of new housing developments in the City.

The deleterious effect of the Council’s inclusionary income mix policy alone would decrease land values by over $1 million dollars per acre. Land transactions could potentially cease as E.1.d
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landowners refuse to discount their land enough for housing to become feasible, resulting in no new homes at both affordable and market rates.

BIA Comparative Analysis shows Hollister’s Ordinance would be the Worst in Local Area

Part two of the BIA study analyzes neighboring jurisdictions’ inclusionary ordinances and policies, revealing that the Hollister’s Ordinance, if passed, is much more restrictive than that of any of the eight other neighboring and nearby jurisdictions surveyed.

When compared to one neighboring city, Morgan Hill, which closely parallels Hollister in size and pattern of community development, the drastic imbalance of Hollister’s proposed Ordinance becomes crystal clear. The City of Morgan Hill has developed and adopted successful inclusionary housing strategies much more in keeping with good community development practices in local jurisdictions, burdens land value significantly less than Hollister, and incorporates flexible implementation standards and policies that both allow for market residential development to move forward and provide homes affordable to low and moderate income families.

BIA recommends that the City reject onerous policies in the proposed Ordinance and instead direct staff to take the following actions:

• Engage the home building community in a thorough outreach effort; • Prepare a detailed report on neighboring jurisdiction inclusionary ordinances; • Cap the inclusionary requirement at 15%;
• Remove the VLI requirements on for sale housing construction; • Adopt a average mix of moderate and low income requirements on for sale housing; • Allow all alternative methods of compliance, including in lieu fees, on all housing types.

Onerous and Impractical Policies and Regulations

The City has incorporated several wholly unworkable affordable housing policies and regulations into the Draft General Plan as well as the draft Inclusionary Ordinance. Over the last several years the City has run afoul of HCD with several attempts to stifle housing production.

By adopting this Ordinance, the City would be repeating a pattern that will likely have the effect of obstructing all housing production and incurring another inquiry from HCD.

Foremost among these misguided attempts in the Ordinance at burdening market rate housing in an attempt to boost affordable housing construction include:

• 7% VLI Requirement: Unreasonable burden on for sale housing - It has been widely recognized that requiring VLI single-family for sale homes is unworkable. Neighboring jurisdictions do not generally include very low income for-sale housing because not only is this category of affordable housing infeasible, it is nearly impossible to find qualified buyers who can afford all the ancillary costs of home ownership, i.e., down payment, utility bills, home upkeep, insurance and taxes, HOA dues, etc.;

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• Lack of Alternative Compliance Options – Neighboring jurisdictions provide a wide range of alternative compliance provisions including in-lieu fees, onsite build, offsite build, land grants, or other flexible means of compliance. Nearly all jurisdictions provide alternative compliance options in their ordinances.

The City’s Ordinance, instead of requiring VLI and LI for sale homes, should allow in lieu fees and/or moderate income units combined with providing incentives for rental housing to build the VLI and LI units that the City needs. In lieu fees collected from market rate for sale homes would provide the City Council with a fund aimed at subsidy of more deeply affordable rental units. This strategy is successful in all of the jurisdictions studied in the Comparative Analysis.

• Council direction given to Staff and Consultants at the IHO Study Session in September appears conflicted with State law. Two California State statues, Gov’t Code 65850, and Gov’t Code 65589.8. both require that cities provide alternate means of compliance for rental and for sale housing:

Gov’t Code 65850.

The legislative body of any county or city may, pursuant to this chapter, adopt ordinances that do any of the following:
(g) Require, as a condition of the development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code. The ordinance shall provide alternative means of compliance that may include, but are not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units. (Amended by Stats. 2017, Ch. 376, Sec. 1. (AB 1505) Effective January 1, 2018.) Gov’t Code 65589.8.

A local government which adopts a requirement in its housing element that a housing development contain a fixed percentage of affordable housing units, shall permit a developer to satisfy all or a portion of that requirement by constructing rental housing at affordable monthly rents, as determined by the local government.

The City of Hollister has an obligation to plan for the development of 4,163 units in the upcoming Housing Element. BIA strongly believes that the City’s flawed proposed Ordinance will be a significant and undue constraint on housing production in Hollister. HCD has instituted a much more stringent approach to feasibility of housing construction and this Ordinance, along with the City’s steep impact fees and community development fees, will make Hollister’s Housing Element very problematic to get certified.

New housing is crucial life blood to the community, bringing new families, jobs, and tax dollars.

BIA urges the City modify the proposed Inclusionary Housing Ordinance as recommended and to work with the stakeholder community in a cooperative and productive manner to resolve any issues surrounding housing development in Hollister.

Yours very truly,

Dennis Martin
BIA Bay Area
Government Affairs

cc: David Mirrione, City Manager
Christy Hopper, Community Development Director

encl: DPFG City of Hollister – Proposed Inclusionary Housing Ordinance Comparative Analysis, October 20, 2023

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Hollister City CouncilDecember 4, 2023

Hollister City Council
December 4, 2023