Agenda packet, first session — Madera City Council, December 6, 2023

REPORT TO CITY COUNCIL
Approved by: Council Meeting of: December 6, 2023
_________________________________ Agenda Number:

Will Tackett, Community Development Director
Arnoldo Rodriguez, City Manager
SUBJECT:

Master Agreement Between the Madera County Transportation Commission and the City of Madera for the Regional Early Action Planning (REAP) 1.0 Grants Program RECOMMENDATION:

Adopt a Resolution of the City Council (Council) of the City of Madera approving a Master Agreement between the Madera County Transportation Commission (MCTC) and the City of Madera (City) for the REAP 1.0 Grants Program (Agreement); authorizing application for, and receipt of, REAP Program funds in the amount of $125,399; and, granting the City Manager authorization to make non-material revisions or refinements, and signature authority, to execute the Agreement to secure REAP Program funds.

SUMMARY:

The 2019-20 California State Budget Act allocated $250 million for all regions, cities, and counties in the State for prioritizing planning activities that accelerate housing production to meet identified needs of every community. With this allocation, the California Department of Housing and Community Development (HCD) established the Regional Early Action Planning Grant Program (REAP) with $125 million to regions. REAP provides one-time grant funding to regional governments and regional entities for planning activities that will accelerate housing production and facilitate compliance in implementing the sixth cycle of the Regional Housing Needs Allocation (RHNA).

A total of $18,975,323 in REAP grant funds are available to the eight San Joaquin Valley Regional Transportation Planning Agencies (SJV RTPAs). The SJV RTPAs received two disbursements totaling $10.2 million. The Madera County Transportation Commission (MCTC) is anticipated to receive a total of $492,009 for REAP activities (subject to change) and is authorized to use the grant funds to assist local agencies, including suballocation, to promote projects which otherwise qualify for REAP funds.

D-2
The City of Madera as a local government of Madera County and as a lead applicant, may partner through a legally binding agreement with MCTC where the proposal will have a direct effect on land-use or development within the City of Madera. Applicants must provide a copy of the signed agreement between partners in order to be awarded funds.

Adoption of the proposed Resolution approves execution of the Agreement between the MCTC and the City of Madera for the REAP 1.0 Grants Program; authorizes application for, and receipt of, REAP Program funds in the amount of $125,399.

Adoption of the proposed Resolution would also grant the City Manager authorization to make non-material revisions or refinements, and signature authority, to execute the Agreement to secure REAP Program funds. Non-material revisions or refinements would be considered those which do not significantly impact the City’s expectations under the Agreement with respect to the project’s stated purpose, initiative and goals.

DISCUSSION:

Phase I
To date, MCTC has received a total of $297,885.65 in REAP funds for Phase I. MCTC will retain $55,176.27 for activities involving program administration, RHNA development support, and any other functions, as necessary.

MCTC will retain a consultant on behalf of its member agencies to assist with eligible activities for housing planning purposes. The total budget for this portion will be in the amount of $242,709.38.

Phase II
The Madera Region is anticipated to receive a total of $319,123.35 in REAP funding for Phase II, which is subject to change based on actual funding availability. MCTC will retain 5% in the amount of $15,957.35 for program administration. The remaining $303,166 in the second phase of available MCTC Housing Planning Grants Program Funding will be suballocated for eligible projects on a pro-rata basis to local agencies as follows:
• County of Madera $154,045
• City of Madera $125,399
• City of Chowchilla $23,722
Eligible activities must demonstrate a nexus to increasing housing and accelerating production.

Eligible activities may be part of a larger planning effort (e.g., a comprehensive zoning code update) if proposed activities have not been completed prior to the project start date, are distinct, and demonstrate a nexus to accelerating housing production. Eligible activities are not necessarily jurisdiction-wide and may include a smaller geography with a significant impact on housing production. For example, eligible activities may include a housing development-related project with a significant community level impact or planning or process improvement for a project with an ongoing community impact beyond the project.

Eligible activities may include a variety of planning purposes, such as planning documents and processes, including, but not limited to, the following as set forth in Health and Safety Code Section 50515.03(c):

1. Rezoning and encouraging development by updating planning documents and zoning ordinances, such as General Plans, community plans, specific plans implementation of sustainable communities’ strategies, and local coastal programs.

2. Completing environmental clearance to eliminate the need for project specific review.

3. Establishing housing incentive zones or other area-based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article

10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code, or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code.

4. Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents.

5. Planning documents to promote development of publicly owned land, such as partnering with other local entities to identify and prepare excess or surplus property for residential development.

6. Revamping local planning processes to speed up housing production.

7. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code.

8. Planning documents for a smaller geography (less than jurisdiction-wide) with a significant impact on housing production, including an overlay district, project level specific plan, or development standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas.

9. Rezoning to meet requirements pursuant to Gov. Code Section 65583(c)(1), and other rezoning efforts to comply with Housing Element requirements, including Gov. Code Section 65583.2(c) (AB 1397, Statutes of 2018).

10. Up-zoning or other implementation measures to intensify land use patterns in strategic locations, such as close proximity to transit, jobs or other amenities.

11. Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps).

12. Establishing pre-approved architectural and site plans.

13. Preparing and adopting Housing Elements of the General Plan that include an implementation component to facilitate compliance with the sixth cycle RHNA.

14. Adopting planning documents to coordinate with suballocations under (REAP) pursuant to Health and Safety Code Section 50515.02(f) that accommodate the development of housing and infrastructure and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation.

15. Zoning for by-right supportive housing, pursuant to Gov. Code Section 65651 (Chapter 753, Statutes of 2018).

16. Zoning incentives for housing for persons with special needs, including persons with developmental disabilities.

17. Planning documents related to carrying out a local or regional housing trust fund.

18. Environmental hazard assessments; data collection on permit tracking; feasibility studies, site analysis, or other background studies that are ancillary (e.g., less than 15 percent of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production.

19. Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production.

20. Establishing Pro-housing Policies pursuant to Gov. Code Section 65589.9(f)(2).

City staff acknowledge the State of California continues to remain within a declared Housing Crisis and recognizes the plethora of recent State housing legislation and bills with the intended purpose of incentivizing and streamlining Housing Development Projects. Some legislation sets forth mandatory compliance regulations, regardless of local adoption of ordinances or programs (but for which procedures and checklists should be developed), while some legislation mandates development of local programs or implementing ordinances (with which the City must comply).

Additionally, certain legislation also empowers local jurisdictions with discretionary authority to adopt more liberal allowances than statutory minimums to further incentivize and streamline certain dwelling types.

City staff also acknowledge input received from local housing advocates and members of the public during public forums that local policies and historical practices have not been conducive to housing demand and needs; and rather, may have had the inverse effect of negatively impacting housing development investment interest in the City of Madera.

These are matters which staff suggest demand prompt attention through a re-evaluation of local regulations, policies and practices. It is also staff’s suggestions that streamlining of housing production may be best addressed through consideration and adoption of objective development standards for housing development projects. Recent State legislation severely limits local authority respective to Housing Development Projects. The adoption of local objective development standards will provide certainty to the City’s customers, the housing development industry, and contribute to the facilitation of streamlined ministerial review processes as an incentive to housing production.

Staff’s proposed use of funds would entail retaining contracted consultant services to work in collaboration with City staff to: (1) Provide an overall review and assessment of local ordinances and regulations (with consideration to recent State housing legislation); (2) Assist with identifying critical challenges and potential constraints to housing production (with specific focus and emphasis on those which may stem from local processes reliant upon ordinance regulations or existing policies and practices); (3) Assist in identification and prioritization of specific tasks which may be feasibly accomplished to facilitate local housing production and processes that will best, and most immediately, address near-term housing needs, goals and objectives; and, (4) Subsequently prepare respective documentation outlining near- or long-term program strategies, draft ordinance amendments, department policies, and educational, informational, or procedural guidance documents for implementation.

Additionally, it is staff’s desire to consider impact fee incentive programs for infill housing development projects (as well as the potential for establishment of a local housing trust fund), density bonus and/or affordable housing concessions & incentives, as well as the potential for adoption of standardized, pre-approved Accessory Dwelling Units plans which may be made available at minimal or no-charge to interested property owners. These efforts will also involve evaluation and consideration of neighboring and/or comparable city practices.

Anticipated Outcomes:

HCD has set the deadline for expenditure of the $125,399 in funding, which has been identified for suballocation to the City of Madera by MCTC, for June 30, 2024. This means the City of Madera will have a finite amount of funding within a limited timeline to conduct these efforts. It is likely that not all desired goals or objectives may be able to be addressed. However, the funding identified for suballocation and timeline available will afford the City of Madera feasible and viable opportunity to conduct required analyses, set forth priorities for initiatives which will have the most positive and immediately realizable impact toward accelerating and incentivizing housing production, and prepare and develop respective amendments to ordinances and/or policies and programs for near-term implementation. Goals which may not be able to be addressed within the limits of the funding and timeline available at this time can nevertheless be considered and studied within a broader and more comprehensive strategy of objectives (including potential to facilitate compliance in implementing the Sixth Cycle of the Regional Housing Needs Allocation [RHNA]).

FISCAL IMPACT:

Adoption of the proposed Resolution providing authorization to apply for, and receive, the REAP

1.0 Program funds and will not have a direct financial impact on the General Fund. These funds will be utilized to supplement staff resources and the 2023/2024 operational budget to retain professional services, fund eligible activities and achieve the anticipated outcomes.

ALTERNATIVES:

Potential Council alternatives include:
 Deny approval of the Resolution.
 Direct staff to find or include alternative strategies (from the list of eligible activities) to support the State’s goal to facilitate acceleration of housing production.

ATTACHMENTS:

1. Resolution approving a Master Agreement between the Madera County Transportation Commission and the City of Madera for the Regional early action planning (reap) 1.0 Grants Program and authorizing application for, and receipt of REAP Program Funds; including:
• Master Agreement between the Madera County Transportation Commission and the City of Madera for the Regional Early Action Planning (REAP) 1.0 Grants Program; including,
o Exhibit A: Project Description/Application
ATTACHMENT 1
Resolution approving a Master Agreement between the
Madera County Transportation Commission and the City of Madera for the Regional early action planning (reap) 1.0 Grants Program and authorizing application for, and receipt of REAP Program Funds
Including:

Master Agreement between the Madera County Transportation Commission and the City of Madera for the Regional Early Action Planning (REAP) 1.0 Grants Program; including,
• Exhibit A: Project Description/Application
01425.0005/926536.1
RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MADERA APPROVING A

MASTER AGREEMENT BETWEEN THE MADERA COUNTY TRANSPORTATION

COMMISSION AND THE CITY OF MADERA FOR THE REGIONAL EARLY ACTION PLANNING (REAP) 1.0 GRANTS PROGRAM AND AUTHORIZING APPLICATION

FOR, AND RECEIPT OF REAP PROGRAM FUNDS
WHEREAS, the California Department of Housing and Community Development (HCD) established the Regional Early Action Planning Grant Program (REAP) providing grant funding to regional governments and entities for planning activities that will accelerate housing production and facilitate compliance in implementing the Sixth Cycle of the Regional Housing Needs Allocation (RHNA); and
WHEREAS, REAP Grant funds are available to the eight San Joaquin Valley Regional Transportation Planning Agencies (SJV RTPAs), including the Madera County Transportation Commission (MCTC) under the Valley-wide Memorandum of Understanding between the Fresno Council of Governments (FCOG) and HCD; and
WHEREAS, the MCTC agrees to suballocate the remaining REAP funds available in the second phase of the MCTC Housing Planning Grants Program Funding, to the City of Madera (City) in an estimated amount of $125,399 for eligible projects; and WHEREAS, the City Council of the City of Madera desires to enter into a Master Agreement between the MCTC and City for the REAP 1.0 Grants Program (Agreement) to apply, receive, perform and utilize the suballocated REAP funds in the amount of $125,399 for eligible activities and projects that will assist in the preparation and adoption of planning documents and process improvements which demonstrate a nexus to increasing housing, accelerating production and/or facilitate compliance to implement the Sixth Cycle of the RHNA, as set forth in the Agreement attached to this Resolution.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Madera as follows:

1. The City Council hereby finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.

2. The Master Agreement between the MCTC and the City for the REAP 1.0 Grants Program, a copy of which is attached hereto, is hereby approved as to its material terms and conditions.

The City Manager is authorized to make non-material revisions or refinements to the Project Description attached to the Agreement and which do not significantly alter the project’s stated purpose, objectives or goals, as may be needed to finalize the Agreement and reach a consensus with the MCTC for approval, and subject to approval as to legal form by the City Attorney. The City Manageris then authorized to execute the Agreement and deliver all other REAP 1.0 Grants Program Funding Suballocation 2
documents or materials required or deemed necessary or appropriate to evidence and secure suballocated REAP grant funding, in the amount of $125,399, on behalf of the City.

3. The City shall be subject to the terms and conditions as specified in the Master Agreement, after approval. The Application and any and all accompanying documents are incorporated in full as part of the Master Agreement. Any and all activities funded, information provided, and timelines represented in the Agreement will be enforceable through the fully executed Agreement. Pursuant to the REAP eligibility requirements and in conjunction with the terms of the Agreement, the City hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Agreement.

4. This Resolution shall become effective immediately upon adoption. * * * * *
Attachments:

Master Agreement between the Madera County Transportation Commission and the City of Madera for the Regional Early Action Plan (REAP) 1.0 Grants Program Master Agreement between the Madera County
Transportation Commission and the City of
Madera for the Regional early action planning
(reap) 1.0 Grants Program
REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 1 MASTER AGREEMENT BETWEEN THE

MADERA COUNTY TRANSPORTATION COMMISSION

AND THE CITY OF MADERA
FOR THE REGIONAL EARLY ACTION PLANNING (REAP) 1.0 GRANTS PROGRAM This grant funding agreement is made on ____________, 2023 by and between the City of Madera, a public body, hereinafter referred to as “Recipient,” and the Madera County Transportation Commission, hereinafter referred to as “MCTC.”
WHEREAS, the California Department of Housing and Community Development (HCD) has provided grant funds through the Regional Early Action Planning (REAP) Program; and WHEREAS, MCTC is a recipient of these grant funds under the Valley-wide MOU; and WHEREAS, the MCTC is authorized to use the grant funds (hereinafter REAP Funds) to assist local agencies, including suballocation, to promote projects which otherwise qualify for REAP funds; and WHEREAS, the Recipient has submitted a Grant Application, which is attached hereto as Exhibit A and incorporated herein by reference.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, THE PARTIES HERETO AGREE AS FOLLOWS:

1. The MCTC agrees to allocate REAP Funds paid to MCTC under the Memorandum of Understanding between Fresno Council of Governments and the State of California Department of Housing and Community Development.

2. Grant funds cannot be disbursed until this Agreement has been fully executed.

3. The Recipient agrees to use REAP Funds only for the REAP eligible project(s) described in Exhibit A.

4. The projects described in Exhibit A, and the amounts allocated therefore, may be amended from time to time without changing the rest of this Master Agreement.

5. The Recipient agrees to reimburse funds back to MCTC if it is determined that REAP Funds were used for ineligible projects.

6. The MCTC agrees to reimburse the Recipient within 30 days of receipt of an accurately completed claim form from the Recipient. The Recipient shall be reimbursed for actual incurred costs that are supported with documentation.

7. The Recipient agrees to cause the completion of the project(s) by June 30, 2024.

Failure to complete the project(s) on a timely basis shall allow MCTC to refuse reimbursement and to reprogram such funds for other purposes.

REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 2 8. The Recipient must bill based on clear deliverables outlined in the Agreement or budget timeline. Only approved and eligible costs incurred for work after the date of an executed agreement with MCTC are eligible.

9. Work must be completed prior to requesting reimbursement.

10. Project invoices will be submitted to MCTC by the Recipient on a monthly basis.

11. Supporting documentation may include, but is not limited to: receipts, progress payments, subcontractor invoices, time cards, etc.

12. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. MCTC may withhold 10 percent of the grant until grant terms have been fulfilled.

13. The Recipient must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required.

14. The Recipient shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records or expenditures incurred during the course of the project, in accordance with generally accepted accounting principles.

15. The Recipient agrees that MCTC or designated representative shall have the right to review and copy any records and supporting documentation pertaining to the performance of the Agreement.

16. The Recipient agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated.

17. At any time during the term of the Agreement, MCTC or HCD may perform, or cause to be performed, a financial audit of any and all phases of the award. At MCTC’s or HCD’s request, the Recipient shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during project implementation and over the project life.

18. MCTC or HCD may request additional information, as needed, to meet other applicable audit requirements.

19. MCTC or HCD may monitor expenditures and activities of an applicant, as deemed necessary, to ensure compliance with Program requirements.

REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 3 20. Subcontractors employed by the Recipient and paid with moneys under the terms of this Agreement shall be responsible for maintaining accounting records as specified above.

REPORTING

1. The Recipient will be responsible for compiling and submitting all invoices and reporting documents. Recipients will submit for reimbursements to MCTC based on actual costs incurred.

2. The Recipient agrees to submit a quarterly report to MCTC describing the progress towards completion for all project(s) listed in Exhibit A. The reports should describe the work that has been completed, and a copy of any project deliverables.

REMEDIES OF NON-PERFORMANCE

1. In the event that it is determined, at the sole discretion of MCTC or HCD, that the Recipient is not meeting the terms and conditions of the Agreement, immediately upon receiving a written notice from MCTC or HCD to stop work, the Recipient shall cease all work under the Agreement. MCTC or HCD has the discretion to determine that the Recipient meets the terms and conditions after a stop work order, and to deliver a written notice to the Recipient to resume work under the Agreement.

2. Both the Recipient and MCTC have the right to terminate the Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the Recipient or MCTC to rectify any deficiency(ies) prior to the early termination date. The Recipient shall submit any requested documents to MCTC within 30 days of the early termination notice.

3. There must be a strong implementation component for the funded activity through this Program, including, where appropriate, agreement by the locality to formally adopt the completed planning document. Localities that do not formally adopt the funded activity could be subject to repayment of the grant.

4. MCTC or HCD may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code Section 50515.04(e).

ACCOUNTING SYSTEM
Recipient, its contractors and subcontractors, shall establish and maintain an accounting system and records that properly accumulate and segregate expenditures by line item. The accounting system of Recipient, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment claims.

REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 4 RIGHT TO AUDIT
For the purpose of verifying that funds paid hereunder are properly accounted for and proceeds are expended in accordance with the terms of this agreement, the Recipient, its contractors and subcontractors each agrees to grant the State and/or the MCTC auditors access to the Recipient’s books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including but not limited to, the costs of administering those various contracts. All documents shall be made available for inspection by authorized State or MCTC agents at any time during project development and for a fouryear period from date of completion of project or one year after the audit is completed or waived by the State, whichever is later.

TRAVEL AND SUBSISTENCE
Payments to contractors and subcontractors for travel and subsistence expenses of Recipient forces and/or its contractors or subcontractors, claimed for reimbursement or applied as local match credit, shall not exceed rates authorized to be paid exempt non-represented State employees under current State of California Department of Human Resources (CalHR) rules.

If the rates invoiced are in excess of those authorized CalHR rates, then Recipient is responsible for the cost difference and any overpayments shall be reimbursed to the MCTC on demand.

PROJECT COMPLETION
Recipient agrees to provide to the MCTC a short report summarizing total project costs and milestones, including before and after photos of the project, if applicable, for each project within sixty (60) days of completion.

GOVERNING LAWS
This Agreement shall be construed and enforced according to the laws of the State of California, and the parties hereby agree that the County of Madera shall be the proper venue for any dispute arising hereunder.

CONFLICT OF INTEREST
Recipient warrants that it presently has no interest and shall not acquire any interest during the term of this Agreement, which would directly or indirectly conflict in any manner or to any degree with its full and complete performance of all services under this Agreement.

CONSTRUCTION OF AGREEMENT
The parties agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any exhibit or amendment. To that end, it is understood and agreed that this Agreement has been arrived REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 5 at through negotiation, and that neither party is to be deemed the party which prepared this Agreement within the meaning of Civil Code Section 1654. Section and paragraph headings appearing herein are for convenience only and shall not be used to interpret the terms of this Agreement.

WAIVER
Any waiver of any term or condition hereof must be in writing. No such waiver shall be construed as a waiver of any other term or condition herein.

SUCCESSORS AND ASSIGNS
This Agreement and all rights, privileges, duties, and obligations hereunder, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns and heirs.

TIME IS OF THE ESSENCE
The parties mutually acknowledge and agree that time is of the essence with respect to every provision hereof in which time is an element. No extension of time for performance of any obligation or act shall be deemed an extension of time for performance of any other obligation or act, nor shall any such extension create a precedent for any further or future extension.

EXECUTION OF AGREEMENT
Any individual executing this Agreement on behalf of an entity represents and warrants that he or she has the requisite authority to enter into this Agreement on behalf of such entity and to bind the entity to the terms and conditions hereof. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

ENTIRE AGREEMENT
This document, including all exhibits hereto, constitutes the entire agreement between the parties, and supersedes any and all prior written or oral negotiations and representations between the parties concerning all matters relating to the subject of this Agreement.

EFFECTIVE DATE, TERM
This Agreement shall become effective as of the Effective Date and shall remain in full force and effect through June 30, 2024, unless sooner terminated or unless its term is extended.

Upon the mutual written Agreement of the Parties hereto, this Agreement may be extended beyond that date.

AMENDMENTS
REAP 1.0 Master Agreement Between the Madera County Transportation Commission and City of Madera 6 Any changes to Exhibit A of the Agreement requested by the Recipient shall be implemented by a written amendment to Agreement and approved by both parties.

IN WITNESS WHEREOF, MCTC and Recipient execute this Agreement as follows:

MADERA COUNTY TRANSPORTATION COMMISSION
_________________________________ ___________
Patricia Taylor Date
Executive Director
Recipient:

CITY OF MADERA
_______________________________ ___________
Arnoldo Rodriguez Date
City Manager

EXHIBIT A
Project Description/Application
Agency/Project Information
Project Title:

The City of Madera Prohousing Policies Initiative (PPI) Project Description:

The City of Madera proposes use of REAP 1.0 funds to retain contracted consultant services to work in collaboration with City staff to: (1) Provide an overall review and assessment of local ordinances and regulations (with consideration to recent State housing legislation); (2) Assist with identifying critical challenges and potential constraints to housing production (with specific focus and emphasis on those which may stem from local processes reliant upon ordinance regulations or existing policies and practices); (3) Assist in identification and prioritization of specific tasks which may be feasibly accomplished to facilitate local housing production and processes that will best, and most immediately, address near-term housing needs, goals and objectives; and, (4) Subsequently prepare respective documentation outlining near- or long-term program strategies, draft ordinance amendments, department policies, and educational, informational, or procedural guidance documents for implementation.

Additionally, it is the City of Madera’s desire to consider impact fee incentive programs for infill housing development projects (as well as the potential for establishment of a local housing trust fund), density bonus and/or affordable housing concessions & incentives, as well as the potential for adoption of standardized, pre-approved Accessory Dwelling Units plans which may be made available at minimal or no-charge to interested property owners. These efforts will also involve evaluation and consideration of neighboring and/or comparable city practices.

Eligible Activities (identify by number):
(1); (6); (7); (8); (12); (14); (16); (17); (19); (20)
Total Funding Request:
$125,399.00
Applicant Agency:

City of Madera
Primary Contact Name and Title:

Will Tackett, Community Development Director
Email: [email protected]
Phone: (559) 661-5451
Address: 205 West 4th Street, Madera, CA 93637
Agency Department:

City of Madera Planning Department
Contact Name and Title:

Gary Conte, Planning Manager
Email: [email protected]
Planning Project Description

1. Introduction
Please provide a description of project objectives, setting, and relationship of the proposed project to existing and planned land uses and transportation facilities in the project area.

The primary goal of the project will be to amend existing Zoning Regulations of the City Municipal Code to facilitate the development of new policies and procedures which will have potential to attract and accelerate housing development projects in the City of Madera in a manner which is abreast of more contemporary and progressive Planning principles, paradigms and practices, as well as compliant with recent State housing bills and legislation, for purposes of streamlining and accelerating housing production.

Ancillary objectives preliminarily include but may not ultimately be limited to the following:
• Development of near- and long-term program strategies and outlining priorities for implementation.
• Preparation and adoption of objective development standards for Housing Development Projects to align with State regulations, provide certainty to the City’s customers, the development industry and staff, and to contribute to the development and implementation of streamlined ministerial review processes; • Amendment of existing ordinances to permit all housing types in residential zone districts by-right, as well as to allow for entitlement/building permit application and plan check integration for process streamlining for certain housing types; • Amendment of Planned Development and Precise Plan requirements and allowances to promote density and/or afford density bonuses; • Development and adoption of specific incentive-based ordinance provisions for Missing Middle Housing;
• Identification and adoption of incentive-based concessions for Housing Development Projects; including but not limited to:
o Impact fee reduction programs for infill and/or affordable Housing Development Projects;
o Deviations from development standards for qualifying Housing Development Projects or specific housing types;
o Exceptions to certain public or private improvement requirements to reduce costs associated with qualifying Housing Development projects or specific housing types;
o Density bonuses for specific Housing Development Projects or housing types;
o Affording longer terms to exercise rights in conjunction with approved City entitlements for Housing Development Projects;
• Update and amend existing ordinances pertaining to Accessory Dwelling Units (ADUs); and, develop and adopt standardized ADU plans and implement a program which affords standard plans to interested property owners at minimal or nocharge with streamlined processing; • Consider alternatives and feasibility for establishment of a local housing trust fund; • Development of covenant agreements necessary to implement State mandated housing allowances, enforce regulations, and advise prospective home/property buyers.
• Development of procedures and checklists for local implementation of State mandated streamlined processes and eligibility, as well as for new local processes resultant from the initiative; and,
• Development of public information and educational materials for the purposes of, and to promote, new programs and procedures.
 Prioritization of tasks and deliverables to be completed within the final scope of work by a selected consultant will be determined through the project steps outlined in the Project Description. The prioritization and sequencing strategy for future implementation of the full list of final objectives will be produced regardless of the number of tasks or deliverables which may be able to be completed by the Consultant within the funding budget and timeline for expenditures available.

Many objectives considered by local governments for purposes of accelerating housing production may be focused respective to geography. The justification of this strategy is often to incentivize greater development intensity and density in key locations which can act as catalysts for additional investment and synergy. This strategy is acknowledged and will be considered respective to implementation of the City’s adopted General and operative plan goals; including, the creation of zoning overlays and/or other provisions for purposes of implementing the overall form and intensity of development, where appropriate and where such intensity has the potential to facilitate greater use of public transit services and multi-modal transportation alternatives.

The Downtown area and its immediate vicinity are planned almost entirely for Commercial land uses by the Madera General Plan. In addition, various commercial activity centers are planned and distributed along segments of the City’s major street corridors (or in proximity to the highway interchanges). The City’s Zoning Regulations include existing provisions which permit residential uses in the Neighborhood, Light and Heavy Commercial Zone Districts, with liberal and effective allowances to promote housing development projects and density. Nonetheless, existing provisions will be considered as part of the initiative to accelerate housing production.

The predominant land use category for the City’s residential areas (and the vast majority of lands in the City of Madera), including neighborhoods proximate to the City’s core are planned for Low Density Residential land uses by the Madera General Plan; a planned land use designation with a density range of 2.1 to 7.0 dwelling units per acre.

The City has recently approved a specific plan for the Villages at Almond Grove (Village D) in the northwestern portion of the City Sphere of Influence. This plan will provide an estimated 10,783 dwelling units with a mixed variety of densities, up to 2.1 million square feet of commercial and office development, 163 acres of public parkland, natural open spaces and school uses, comprising a truly complete Village concept land use and implementation plan with specific rules for subsequent approvals.

Scheduled fixed-route bus service is provided by Madera Area Express (MAX) and Cityoperated dial-a-ride a paratransit service which extends through most of the Planning area. However, the City does not have what are defined as existing Major Transit Stops or High Quality Transit Corridors. It is the City’s interest to consider allowances, exceptions and concessions for Housing Development Projects located in proximity to MAX fixed-route bus service stops similar to those afforded through State legislation for Housing Development Projects in proximity to Major Transit Stops or High-Quality Transit Corridors in order to afford equitable local development opportunities in the City of Madera based upon existing available public transit.

The City of Madera remains a fairly compact City in terms of area but is a burgeoning City. The predominant land use pattern and residential land use category is generally considered a low to moderate density range representing traditional single-family neighborhoods. Given this fact and with consideration to the strategies, commercial land use and growth patterns described herein above, it is the opinion of the City that the goals and objectives for the project and use of available funding should focus on City-wide and all-inclusive strategies for housing acceleration and production to develop accommodations and benefits for housing units of all types and varieties. Strategies which focus on incentivizing infill development, specific geographic areas or specific housing types should also be included as principle focus topics of the project goals and objectives.

Implementing strategies based upon these focus points will ensure housing production acceleration and streamlining efforts implemented in the near term will have the greatest potential to contribute to the minimization of patterns of sprawl, the reduction of Vehicle Miles Traveled, and opportunities for increased ridership and improvement to existing transit services as well as the use of alternative modes of travel to the automobile for future residents and populace of the City.

2. Project Justification
Application describes in detail the deficiencies that the project would address and ramifications of not funding.

The Zoning Regulations of the City Municipal Code have been incrementally updated over the years but remain generally antiquated with respect to more contemporary and progressive Planning principles, paradigms and practices relative to streamlining and accelerating housing production and have not been recently updated for compliance and/or consistency with recent State housing bills and legislation passed for purposes of streamlining and accelerating housing production. This present circumstance and state of affairs leaves the City of Madera at an inherent disadvantage with respect to the ability to: process entitlements for new Housing Development Projects in the most efficient manners available; promote infill development, affordable housing and greater diversity in housing types; and provide the certainty desired by the development industry to project timelines, project costs, develop budgets and/or secure financing during times of experienced inflation and fluctuating economic and market conditions, in order to attract adequate new investment interests to address existing or projects housing needs.

While it is not assumed that the amount of funding available or the remaining time to expend funds will afford a completely holistic and comprehensive approach to the issue, it is believed that both funding and timing is adequate to address immediate deficiencies which impede most efficient methods for streamlining processes, accelerating production, and encouraging/promoting development of a diversity of housing types to meet the needs of all residents.

The City of Madera recognizes an incentive- or concession-based approach to accelerating housing production is preferred by its customers and perceives such an approach to be more efficient in effect vis-à-vis rigid or prescriptive approaches which may render residential development infeasible (especially for infill development where availability of land area is more limited). Existing municipal code provisions and policy and procedural practices which have been in effect for numerous years, tried and tested, time and again, have not yielded sufficient or desired results to meet resident and customer needs and demands. Availability of funding utilized for the intended project purposes presents the City of Madera with opportunity to reevaluate and reconsider its regulations and methodologies and develop more progressive tools and programs to meet resident needs, fulfill customer expectations, and provide new incentives, as well as the regulatory and procedural certainty, necessary to facilitate feasibility and attract additional investment for Housing Development Projects.

Other cities have developed and our finding success in implementation of Accessory Dwelling Unit (ADU) programs offering pre-approved ADU plans, commonly at no-cost, to property owners. Such a program is not presently available in the City of Madera.

While such an effort would be cost- and time-prohibitive in this instance, it is acknowledged that the San Joaquin Valley REAP has already completed efforts to develop a Guide to Implementing ADUs in the San Joaquin Valley (October 2022), complete with template program materials, including four pre-reviewed detached ADU plans with architectural, structural, electrical sheets and Cal Green forms. Customization and/or updates which may be needed for current Code Cycle compliance will need to be considered. However, the prior efforts by the San Joaquin Valley REAP relative to ADUs provides a complete framework on which to readily base updates and develop a future program and procedural framework to accommodate pre-approved ADU standard plan availability in the near future.

Preliminary consideration has been given to objectives which will accelerate housing production and streamline Housing Development Project processes. However, lack of capacity with available staff resources renders internal efforts without assistance or additional budgetary resources challenging and without potential for expediency.

Furthermore, the timing of funding would assist the City with completing actions and activities which will contribute to facilitating compliance in implementing the Sixth Cycle of the Regional Housing Needs Allocation (RHNA), which are not otherwise currently funded.

3. Nexusto Accelerating Housing Production
Please describe the nexus of the proposed project to accelerating housing production.

The project goals and ancillary objectives outlined above comprise contributing components of what is considered to be essentially a dual-pronged approach to creating an accelerated “path” for housing production consisting of the following:

1. Municipal Code Provisions (Clearing the Path):

Entails preparation of a “Variety Pack” of text amendments to the Zoning Regulations of the City Municipal Code to:
o Provide the ability to implement more streamlined and integrated approaches to the processing of Housing Development Project applications.

Current requirements mandate discretionary entitlements for all Housing Development Projects. Amendments to procedure sections of the code to permit by right-uses, identify objective development standards, and amend procedural requirements to implement ministerial project reviews streamlines the application approval process and enables a greater volume of Housing Development Applications to be processed without additional resource allocation. Integration with Building Permit processes for certain housing types reduces the number of separate and individual applications required to be filed (including the costs and timelines associated therewith); thereby increasing resource capacity while streamlining and accelerating housing application productivity. o Incentivize Infill Housing Development and certain housing types.

Providing the ability to qualify for concessions including eligibility for deviations from development standards, density bonuses, exceptions to improvement requirements and/or reductions to development impact fees facilitates Infill Housing Development Project feasibility. This includes: minimizing site constraints and increasing site capacity; permitting as well as promoting greater density of development; and minimizing/subsidizing costs which may be cumulatively prohibitive or which may discourage investment interest; thereby affording more opportunities to a greater number of property owners and investors which directly contributes to the acceleration of housing production.

2. Development of Implementing Procedures, Policies and Programs (Paving, Marking and Mapping the Road)
Entails preparation of procedural workflow documentation (with capability for systems integration and management), creation of respective application forms and checklists as well as informational, educational, and promotional materials. It is acknowledged that implementation of certain programs may require consideration of fiscal impacts or additional study which may lie outside the scope of this project. It is also noted that some necessary implementation measures will be the responsibility of City staff and may fall outside a Consultant’s scope of work for the proposed project.

Implementation tasks and activities are critical as the road map depicting how Housing Development Applications are processed through the City for reviews and approvals. Documentation is prepared to clearly identify: regulatory requirements with references and citations to codified provisions and standards, as well as procedural steps, projected timelines, and policy guidance for both the City’s customers and staff members. This documentation facilitates consistency for efficient and equitable application management and processing, and provides certainty to all stakeholders and process participants with respect to requirements and expectations.

Accompanying educational and promotional materials are intended to be informative with contact information for City assistance but are also considered critical to attract attention and interest.

Without the development of formal implementation procedures, policies and programs, acceleration and streamlining of housing production cannot be realized to its full extent. Concise documentation and checklists minimize the potential need to exercise subjective consideration, assists with the submittal of complete applications, thereby reducing application completeness review timeframes, and sets forth consistent expectations. These efforts translate to certainty for the City’s customers and staff and efficient Housing Development Project application processing; accelerating housing production and appealing to potential investment interests that rely on such certainty for success in dynamic economic and market conditions, and thereby increasing the volume of Housing Development applications received and approved.

4. RTP/SCS Consistency
Describe how the proposed project is consistent with MCTC's 2022 RTP/SCS.

The goals and objectives identified within the scope of work for the proposed project are consistent with the goals and objectives of Chapter 2: Policy Element of the MCTC’s RTP/SCS.

The proposed project will:

1. Improve Quality of Life. The project deliverables will include plans, programs, policies and codified provisions which will improve the qualify of life for residents in the City of Madera by further incentivizing development of affordable housing which will increase access to the fixed route public transportation system, resources, jobs, and recreational facilities.

2. Raise Economic Prosperity. The project deliverables will include plans, programs, policies and that will facilitate enhanced economic viability of the City by:
increasing access to a greater quantity and variety of dwelling units which can afford a low cost of living to a wider range of income levels; adopting regulatory concessions and incentives for certain housing types; developing streamlined and integrated application procedures; and providing objective standards and certainty to processes, in order to attract new investment.

3. Cultural Diversity. The project will respect the City’s wide variety of cultures and subcultures (each having unique needs and perspectives) by facilitating the acceleration of production of range of housing choices to benefit the City’s diverse population.

4. Promote Public Health and a Cleaner Environment. The project deliverables will give preference to the development of housing types and identify objective development standards which will ensure the health of its citizens, maintains and enhances the surrounding environment, and will seek to incentivize diversity and affordability in housing options and availability to enhance the City financial stability over time.

Scenario 3: Conservation and Mobility, the sub-region focused land-use strategy applied to the City of Madera in the MCTC Sustainable Communities Strategy (SCS) and which produced the lowest Vehicle Miles Traveled (VMT) per capita of the three scenarios; and which, achieved the most Greenhouse Gas (GHG) reduction per capita of the three scenarios. Scenario prioritized development in infill and redevelopment zones, assumes more compact lot sizes in core urban areas, moderate increases to densities in urban areas and slight increases to densities in the remainder of the county, outside of urban cores. Accelerates investment shift towards zero-emission vehicle infrastructure, public transit, shared ride options, micro mobility, and nonmotorized transportation strategies.

The objectives identified within the scope of work for the proposed project are consistent with and support implementation of these strategies. The proposed project does not propose amendments to the City of Madera General Plan as required environmental analyses as well as timeline and cost constraints would likely not be feasible without sacrificing other objectives which are perceived to have a greater potential immediate potential to accelerate housing production of all types, City-wide, while providing a high focus toward incentivizing infill and urban core development in a manner which affords moderate changes to facilitate higher density new development in urban areas and which is compliant with the existing General Plan.

The goals, objectives, and focal issues identified within the scope of work consider opportunities to accelerate housing production for all types but incentivize housing for certain housing types, which may include but not be limited to affordable housing and greater opportunities for home ownership in proximity to public and multi-modal transit alternatives. These concepts are consistent with the public policy goal of promoting the fair treatment and meaningful involvement of all people in what will involve a legislative and public decision-making process, and which will result in ensuring that low-income and minority communities receive an equal distribution of benefits from the activities.

5. Plan Implementation
Please describe the implementation strategies for the proposed planning project. Please identify any potential obstacles to successful implementation of the plan.

As described in Subsection 3 of this Application, the project goals and ancillary objectives outlined in this Application herein above comprise contributing components of what is considered to be essentially a dual-pronged approach to creating an accelerated “path” for housing production. The two components of this approach represent the project deliverables:

1. Municipal Code Provisions (Clearing the Path):

Entails preparation of a “Variety Pack” of text amendments to the Zoning Regulations of the City Municipal Code to:
• Provide the ability to implement more streamlined and integrated approaches to the processing of Housing Development Project applications.
• Incentivize Infill Housing Development and certain housing types.

Documentation is prepared to clearly identify: regulatory requirements with references and citations to codified provisions and standards, as well as procedural steps, projected timelines, and policy guidance for both the City’s customers and staff members. This documentation facilitates consistency for efficient and equitable application management and processing and provides certainty to all stakeholders and process participants with respect to requirements and expectations.

Accompanying educational and promotional materials are intended to be informative with contact information for City assistance but are also considered critical to attract attention and interest.

A principal deliverable of the project will include an omnibus, “Variety Pack,” of draft text amendments to the City Municipal Code with recommendations for consideration by the City Council. Text amendments to the City Municipal Code may only be approved through ordinance adoption, a public legislative process. While vital to a transparent and inclusionary process, it is conceivable that public opposition to certain provisions or allowances or changes to procedural or application requirements either in general or for certain/qualifying housing types.

The expenditure deadline and/or funding limitations may not be adequate to complete and deliver all preliminary objectives and deliverables identified prior to the expenditure deadline. Some desired program outcomes such as pre-approved ADU plans and a local Housing trust program will likely require additional coordination, study and/or evaluation that will fall outside the scope of work proposed for this project and which likely will not be able to be completed within the available budget and/or timelines constraints.

Regardless of outcomes, development of near- and long-term program strategies and priority outline for sequential implementation will be prepared; and any work which may not be able to be completed by the Consultant will be completed through subsequent City effort toward facilitating compliance in implementing the Sixth Cycle of the Regional Housing Needs Allocation (RHNA).

6. Project Schedule and Scope of Work
Please outline the scope of work for the proposed planning efforts.

Please briefly describe deliverables and anticipated completion dates for each deliverable. Please also provide estimates of project expenses funded by the grant.

Attached spreadsheets included herein below.
91Page

FEE PROPOSAL
Total
Hours
City Staff - % of total hours potential
Labor Cost Total Fee
$150
56 $ 8,400 $ 8,400
16 100% $2,400
32 100% $4,800
8 100% $1,200
64 $ 9,600 $ 9,600
8 $1,200
16 $2,400
40 $6,000
88 $ 13,200 $ 13,200
8 $1,200
16 $2,400
‐
24 $3,600
40 $6,000
112 $ 16,800 $ 16,800
24 $3,600
40 $6,000
40 $6,000
8 $1,200
384 $ 57,600 $ 57,600
120 $18,000
80 $12,000
80 $12,000
40 $6,000
40 $6,000
24 $3,600
56 $ 8,400
648 97,200
704 $ 105,600
$ 19,799
$ 125,399

4.5 Prepare Draft Report for Public Hearing (1 for PC/CC)

4.6 Public and/or Commission & Council Revisions
*Estimated hours.

Consultant reserves right to adjust & transfer hours between staff and tasks. Prior City approval required to exceed any task budget.

This fee schedule is a fixed fee, not to exceed basis The fee includes a recommended contingency budget of $19,799 (approximately 15% of the total funding amount) as a contingency to account for unforeseen circumstances or miscellaneous City requests or modifications to the scope once underway. These funds can only be used with prior City authorization and would be billed on a time and materials basis.

Selected Consultant reserves the right to adjust and transfer hours between staff and tasks.

TOTAL ALL TASKS
Miscellaneous Tasks Contingency (time & materials)
Sub-total Preliminary Tasks
Sub-total Tasks 1-4

4.1 Draft "Variety Pack" Text Amendments

4.3 Prepare Application Forms and Checklists

4.2 Prepare Supplemental Policies & Procedures

4.4 Prepare Info./Educational & Promotional Materials

3.3 Prioritize and Outline Near- vs. Long-term Initiative Strategies

3.4 Determine Feasible Activities/Deliverables
Task 4: Preparation of Documentation

2.3.3 Stakeholder Interviews (Up to 10)

3.1 Develop Schedule of Recommended Actions
Task 3: Outline/Prioritize Feasible Activities

3.2 Provide Recommendations with Justifications to City Staff Task 2: Constraints Analysis

2.1 Community and Stakeholder Outreach & Engagement Strategy

2.2. Outreach Materials (includes 1 language translation)

2.3 Community Outreach/Engagement Meetings and Activities

2.3.1 Community Workshops (1 Minimum)

0.3 Execute Contract for Consultant Services
Task 1: Review and Assessment of Existing Ordinances

1.1 Kickoff meeting

1.2 Prepare Project Schedule

1.3 Review and Assess Zoning Regulations of City Municipal Code

0.2 Receive and Evaluate Reponses
CITY OF MADERA PROHOUSING POLICIES INITIATIVE REAP 1.0 GRANTS PROGRAM

PROJECT SCHEDULE AND SCOPE OF WORK
City of Madera Prohousing Policies Iniative
REAP 1.0 Grants Program Funds Suballocation
December 6, 2023
HOURLY RATE:

Preliminary Task: Request for Proposals

0.1 Prepare and Advertise RFP

SCHEDULE
Total
Hours
123412341234123412341234
561632
8 64
8 164088
8 162440
112
244040
8 384
120
8080404024
56 648
704

1.1 Kickoff meeting1.2 Prepare Project Schedule1.3 Review and Assess Zoning Regulations of City Municipal Code City of Madera Prohousing Policies IniativeREAP 1.0 Grants Program Funds SuballocationDecember 6, 2023 Week:

Preliminary Task: Request for Proposals

0.1 Prepare and Advertise RFP0.2 Receive and Evaluate Reponses4.6 Public and/or Commission & Council Revisions January February March
*Estimated Timeline Respective to Tasks.

Consultant reserves right to adjust & transfer hours between staff and tasks. Prior City approval required to amend timeline benchmark dates.

TOTAL ALL TASKSSub-total Preliminary TasksSub-total Tasks 1-4

4.1 Draft "Variety Pack" Text Amendments4.3 Prepare Application Forms and Checklists4.2 Prepare Supplemental Policies & Procedures4.4 Prepare Info./Educational & Promotional Materials3.3 Prioritize and Outline Near- vs. Long-term Initiative Strategies3.4 Determine Feasible Activities/Deliverables Task 4: Preparation of Documentation
April May
CITY OF MADERA PROHOUSING POLICIES INITIATIVE REAP 1.0 GRANTS PROGRAM PROJECT SCHEDULE AND SCOPE OF WORK June