Agenda packet, first session — Modesto City Council, July 12, 2022 (part 5 of 6)

California Revenue and Taxation Code section 99, authorizes counties, cities and special districts to enter into standing master property tax sharing agreements. In absence of a master property tax sharing agreement, the sharing of property tax is negotiated on an individual basis after a city files an annexation application with the Local Agency Formation Commission (LAFCO). Master property tax sharing agreements are valuable in that they provide consistency and efficiency in the annexation process.

The City of Modesto has numerous tax sharing agreements with the County spanning multiple years and going as far back as 1982. In most agreements, the County receives 66% of the tax increment and the City receives 34%. There are a few instances where this percentage varies slightly and some agreements can shift the percentages to a 50/50 split. All agreements divide up both the base property tax value (property tax value in the tax year immediately preceding annexation) and the increment (total increase/decrease in assessed valuation after annexation and development).

The current Master Property Tax Agreement was entered into by Stanislaus County and each of the nine cities in 1996, with a subsequent amendment occurring in 2006. The amendment in 2006, clarified technical issues and the intent of the original agreement. The agreement outlines that the County will receive 100% of the property base tax revenue, and the revenue growth is split so the County receives 70% and the cities receive 30%. Since the creation of the 1996 agreement, many separate agreements have also occurred. For example, the City and County have reached separate tax sharing agreements for annexations along Pelandale Avenue, North McHenry Avenue and at the Kaiser Medical Campus/Cornerstone Business Park.

Since the execution of the initial 1996 agreement, approximately 100 individual Tax Rate Areas (TRA) have been developed after annexations by the nine cities within the county. The City of Modesto has over five TRAs that have created individual tax sharing agreements with the County. Impacts from the 1996 agreement vary by city and are a direct result of individual growth patterns. Estimates from the County Auditor-Controller indicated that $65.4 million in growth was allocated to the cities and $56.8 million in growth was allocated to the County under the 1996 agreement.

DISCUSSION:

Over the past several months the City Manager and staff have been working with the County Chief Executive Officer and a subcommittee of City Managers representing all nine cities to evaluate various proposals for an updated property tax sharing agreement. Through this coordinated effort, the Proposed Master Property Tax Revenue Agreement was developed. Its essential components are outlined below:
 The agreement is effective with the 2022 Assessment Roll (property values as of January 1, 2022, delivered by the Assessor to the Auditor-Controller by July 1, 2022).  Once the agreement commences, it will continue until one of the parties terminates the agreement. Any party may terminate the agreement by formal action upon no less than 60 days’ notice and termination will be effective on the first day of July following service of notice of termination.
 The agreement generally applies to properties annexed following the effective date of the 1996 Agreement and future annexations, with several exceptions. Affected properties will be specifically identified by the parties. #29..
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 Consistent with the current agreement, the County will retain all base property tax revenue.
 Property Tax revenue growth for those specifically identified properties will be shared evenly between City and County: 50% to City and 50% to County.  Property Tax revenue growth for properties annexed in the future will be shared evenly between City and County: 50% to City and 50% to County, unless otherwise negotiated by the parties. Annexations that include a County Island would require a separate agreement.
 Consistent with the current agreement, the County’s Increment Property Tax Revenue sharing is calculated prior to any property tax revenue shift for ERAF. Net of ERAF, the division of total increment is anticipated to be approximately 68% City and 32% County on average. The County and cities will continue to discuss alternative models of property tax distribution to lessen the impact of ERAF.
 Consistent with the current agreement, exceptions to the agreement are included for territories for which the allocation of property tax revenue shall be negotiated independently from the agreement. Such territories are anticipated to include the Salida Area, North McHenry Area, Beard Area, Airport Area, Robertson Road Area, South Modesto Area, and North Turlock.

Stanislaus County has taken this Proposed Agreement to their board for approval at the Board of Supervisors meeting held on June 14, 2022. The action was approved by the Board via Resolution 2022-0298.

If the Council approves the Proposed Agreement, it will cancel the 1996 Agreement and replace it. If the Council does not act to approve the Proposed Agreement, the 1996 Agreement will continue to be effective for the City, until terminated by either party.

The Proposed Agreement is provided as Attachment 1 to this agenda item.

FISCAL IMPACT:

The Proposed Master Property Tax Agreement with Stanislaus County will reduce the County’s share of property tax increment from 70% to 50% and increase the City’s share of increment from 30% to 50%. As an example, for every $1M in assessed value growth under the amended agreement, it would be anticipated that the City would net an average of $1,365 in revenue while the County would net $637.

It is estimated that the City would receive, on average, $230k in additional revenue annually under the Proposed Agreement. This revenue estimate is based upon average growth from the prior five years of increment and a comparison of the existing 70/30 split compared to a change to the proposed 50/50 split of the Proposed Agreement. Revenue estimates for the nine cities and County under the proposed agreement can be seen in Attachment 2. In general, the more property within a city that was annexed after 1996, the greater the amount of additional revenue that city will receive under the proposed agreement.

The greatest potential impact, financially, will come at the time of development of annexed properties. Staff is unable to project the fiscal impact of future growth for potential annexed properties but it is anticipated that this could potentially increase the annual estimated amount of $230k over the next 10 to 15 years based upon development in Modesto. #29..
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COMMITTEE RECOMMENDATION:

Due to the urgency and the timelines required by the terms of the Proposed Master Property Tax Agreement with the County, this item was not presented to Finance Committee and was approved by the City Manager to go directly to Council for consideration.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a Master Property Tax Revenue Agreement with Stanislaus County.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Attachment 1 – Proposed Master Property Tax Revenue Agreement

3. Attachment 2 – Fiscal Impact Modeling of Proposed Agreement #29..
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-XX

RESOLUTION APPROVING A MASTER PROPERTY TAX REVENUE

AGREEMENT WITH STANISLAUS COUNTY
WHEREAS, distribution for property tax dollars in the State of California is the result of tax reform (Proposition 13 in 1978) and legislation (Assembly Bill (AB) 8 in 1979) required to rebalance revenue streams between the State and local governments.

Proposition 13 and AB 8 established significant changes in how property tax rates are set and distributed to cities, counties, special districts, schools, and community colleges; and WHEREAS, the City of Modesto receives approximately 9.6% of the total property tax allocations within the City; and
WHEREAS, this property tax allocation is a net of a revenue shift sent to the Educational Revenue Augmentation Fund (ERAF). ERAF is redirected property tax revenue from cities, counties, and special districts to schools and colleges. ERAF is deposited into a countywide account and is allocated to schools and community colleges within the county to offset the funding these entities would receive from the State General Fund; and
WHEREAS, California Revenue and Taxation Code section 99, authorizes counties, cities and special districts to enter into standing master property tax sharing agreements. In absence of a master property tax sharing agreement, the sharing of property tax is negotiated on an individual basis after a city files an annexation application with the Local Agency Formation Commission (LAFCO); and WHEREAS, master property tax sharing agreements are valuable in that they provide consistency and efficiency in the annexation process; and #29..
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WHEREAS, the City of Modesto has numerous tax sharing agreements with the County spanning multiple years as far back as 1982. All agreements divide up both the base property tax value (property tax value in the tax year immediately preceding annexation) and the increment (total increase/decrease in assessed valuation after annexation and development); and
WHEREAS, the current Master Property Tax Agreement was entered into by Stanislaus County and each of the nine cities in the County in 1996, with a subsequent technical amendment occurring in 2006 (the “1996 Agreement”); and WHEREAS, under the current agreement, the County receives 100% of the property base tax revenue, and the property tax revenue growth is split so the County receives 70% and the cities receive 30%; and
WHEREAS, since the creation of the 1996 Agreement, many separate tax sharing agreements for specific areas have also occurred; and
WHEREAS, over the past several months the City Manager and staff have been working with the County Chief Executive Officer and a subcommittee of City Managers representing all nine cities to evaluate various proposals for an updated property tax sharing agreement; and
WHEREAS, through this coordinated effort, the Proposed Master Property Tax Revenue Agreement was developed; and
WHEREAS, under the proposed agreement property tax revenue growth for those specifically identified properties subject to the 1996 Agreement will be shared evenly between City and County: 50% to City and 50% to County; and #29..
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WHEREAS, property tax revenue growth for properties annexed in the future will be shared evenly between City and County: 50% to City and 50% to County, unless otherwise negotiated by the parties. Annexations that include a County Island would require a separate agreement; and
WHEREAS, on June 14 the Board of Supervisor approved the proposed Master Property Tax Revenue Agreement; and
WHEREAS, the proposed Master Property Tax Revenue Agreement is expected to result in approximately $230,000 in additional revenue for the City, and that amount could increase if future annexations and development occurs; and WHEREAS, the City Council desires to approve the proposed Master Property Tax Revenue Agreement in order to increase the City’s share of property tax revenue, as well as increase consistency and efficiency for future annexations.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the proposed Master Property Tax Revenue Agreement with Stanislaus County.

BE IT FURTHER RESOLVED, that the City Manager, or his designee is hereby authorized to execute the agreement, in a form approved by the City Attorney.

The foregoing resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 12th day of July 2022, by Councilmember ________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:
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ABSENT: Councilmembers:

ATTEST: _____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _______________________________________
JOSE M. SANCHEZ, City Attorney
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MASTER PROPERTY TAX REVENUE AGREEMENT

BETWEEN THE COUNTY OF STANISLAUS AND THE CITY OF MODESTO This MASTER PROPERTY TAX REVENUE AGREEMENT ("Agreement") is made and executed on this ___ day of _____________, 2022 (“Effective Date”), by and between the County of Stanislaus, a political subdivision of the State of California ("County"), and the City of Modesto, a municipal corporation of the State of California (the "City"). County and City may each be referred to as a “Party” or collectively as the “Parties”.

RECITALS
A. Section 99 of the California Revenue and Taxation Code authorizes local agencies, such as City and County, to enter into master property tax sharing agreements to provide adjustments to the allocation of property taxes upon annexation.

B. It is the purpose of this Agreement to adjust the allocation of property tax revenue between City and County and address the requirements under Revenue and Taxation Code Section 99 and adjustment of the appropriation limits of the affected governmental agencies pursuant to Section 3(b) of Article XIII B of the Constitution of the State of California.

C. City and County recognize the importance of maintaining consistent property tax sharing arrangements across similarly situated jurisdictions and the importance of a standing master property tax revenue sharing agreement to facilitate sound planning for development and the continued provision of services as a result of development, and it is the intent and purpose of the Parties to accomplish this goal to the greatest extent possible.

D. City and County previously entered into an agreement, known as the Master Property Tax Sharing Agreement, effective April 9, 1996, for the purpose of adjusting the allocation of property tax revenue pursuant to Section 99 of the Revenue and Taxation Code upon a change of organization (“1996 Agreement”).

E. Under the 1996 Agreement, which was entered into by the County and all nine cities, the County agreed to share future increases in real property tax revenue above the base amount with 70% of the tax growth going to the County and 30% to the Cities.

F. In 2006 the parties entered into Amendment No. 1 of the 1996 Agreement to clarify technical issues and the intent of that agreement.

G. City and County have worked together to develop a revised approach to property tax sharing, improving locally available revenues.
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H. City and County seek to align the interests of their respective jurisdictions in a way that promotes and financially encourages future economic development and the provision of housing.

I. As provided for in this Agreement, City and County intend to ensure the timeliest, most efficient, and most cost-effective delivery of services provided to the public.

J. It is the intent of City and County to identify and include all annexations which were subject to the 1996 agreement; to identify any annexations after 1996 that were separately negotiated and include those in this Agreement where applicable; and to identify unincorporated areas which will be specifically excluded from this Agreement.

K. The annexation areas identified in Exhibit A comprise only those tax rate areas for which the parties intend to modify the sharing of future annual property tax increment.

L. The annexations and unincorporated areas identified in Exhibit B, comprise those areas which are specifically excluded from this Agreement.

M. The parties intend by this Agreement, that beginning with the 2022 Assessment Roll, for all tax rate areas identified in Exhibit A, the parties will share equally the County’s future annual tax increment, as that term is defined in Section 98 of the Revenue and Taxation Code.

N. The parties intend to share equally the annual tax increment, for all future annexations which are not specifically excluded by this Agreement, that occur after the effective date of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the City and County hereby agree as follows:

AGREEMENT
Section 1. Recitals. The recitals above (“Recitals”) are true and correct and are hereby incorporated into and made part of this Agreement. In the event of any inconsistency between the Recitals and Sections 1 through 12 of this Agreement, Sections 1 through 12 shall prevail.

Section 2. Definitions.
(a) “1996 Agreement” shall mean the Master Property Tax Sharing Agreement entered into between the City and the County effective April 9, 1996, for the purpose of adjusting the allocation of property tax revenue pursuant to Section 99 of the Revenue and Taxation Code upon a change of organization and its Amendment No. 1 of 2006. #29..
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(b) “Annexation” shall mean the inclusion, attachment, or addition of territory to the City pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. (c) “Ad Valorem Property Tax” shall mean the tax imposed on real and tangible personal property based upon the value of the property. (d) “Base Property Tax Year” shall mean the tax year immediately preceding the year in which the State Board of Equalization recognized and notifies the County Auditor-Controller of the Annexation.
(e) “Educational Revenue Augmentation Fund” or “ERAF” shall mean a requirement of the County Auditor-Controller to shift a certain percentage of annual allocations of local property tax revenues from counties, cities, and special districts to a specified fund which is utilized by the State of California to reduce its financial obligation to public schools and help meet its minimum state funding requirements pursuant to Proposition 98. (f) “Incremental Property Tax Revenue” shall mean the total amount of property tax revenue increase or decrease computed from the assessed valuation over the Base Property Tax Year. [reference Revenue and Taxation Code Section 96.5] (g) “Tax Rate Area” shall have the same meaning as defined in Revenue and Taxation Code section 95(g)(1).

Section 3. Reporting. From and after the first fiscal year following the effective date of each Annexation, County Auditor-Controller will report, as part of the regular AB 8 report process, to the City Manager and to the County Executive Office the calculation and the actual amount of the Ad Valorem Property Tax revenue available for allocation and distribution pursuant to this Agreement. After provision of this report, either party may request to meet and confer with the other party to review the annual report.

Section 4. Allocation of Ad Valorem Property Tax Revenue for New Annexations.

When a jurisdictional change occurs, the Ad Valorem Property Tax revenue attributable to the territory Annexed to the City, for all land use types, shall be adjusted in the following manner:
(a) For Annexations other than County unincorporated islands or properties identified in Exhibit B, County shall retain its one hundred percent (100%) share of the Ad Valorem Property Tax revenue attributable to the Base Property Tax Year amount. After Annexation, the annexing City shall receive a fifty percent (50%) share of the County’s Incremental Property Tax Revenue.

County shall retain the remaining fifty percent (50%) share of the County’s Incremental Property Tax Revenue.
(b) Where an Annexation includes land served by a special district, City shall receive the entire amount of the Ad Valorem Property Tax allocated to the special district upon the detachment of the annexed territory from the special district or the dissolution of the special district.
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(c) Except as set forth in subsection (d) below, for any Annexation effecting an unincorporated County island or listed in Exhibit B, the annexing City shall meet and confer with County to determine the allocation of the Ad Valorem Property Tax revenue of the unincorporated County island when each such island is considered for Annexation. (d) For an Annexation requested or initiated by County or required by state or federal law pertaining to, in whole or part, any unincorporated County island or disadvantaged community, the annexing City shall meet and confer with County to determine the allocation of the Ad Valorem Property Tax revenue of the unincorporated County area considered for Annexation.

The provisions of this Section 4 shall survive and remain in effect following any termination of this Agreement, i.e., there will be no reversion back to the 1996 Agreement tax sharing rates.

Section 5. Allocation of Incremental Property Tax Revenue. Beginning with the property assessments included in the 2022 Assessment Roll based on property values established as of January 1, 2022, and delivered by the County Assessor to the County Auditor-Controller by July 1, 2022, the County’s Incremental Property Tax Revenue for all Tax Rate Areas identified in Exhibit A, shall be shared evenly between City and County: fifty percent (50%) to City and fifty percent (50%) to County. The County’s Incremental Property Tax Revenue sharing established under this Section 5 is calculated prior to any property tax revenue shift for ERAF. This Section 5 is prospective only and shall begin being applied by the County Auditor-Controller when property tax revenues are distributed during Fiscal Year 2022/2023. An example of the calculation performed by the Auditor-Controller to implement this agreement is attached as Exhibit C.

The provisions of this Section 5 shall survive and remain in effect following any termination of this Agreement, i.e., there will be no reversion back to the 1996 Agreement tax sharing rates.

Section 6. Adjustment of Appropriation Limit. Pursuant to Section 3(b) of Article XIII of the Constitution of the State of California, City shall increase its appropriation limit by the amount of Ad Valorem Property Tax revenue received after the adjustment provided for in Section 4 is completed. County shall decrease its appropriation limit by the amount of Ad Valorem Property Tax revenue that is transferred to City. It is also expected that any special district will decrease its appropriation limit by the amount of Ad Valorem Property Tax revenue it has had transferred to City upon detachment or dissolution.

Section 7. Additional Property Tax Agreement Discussions. County agrees to continue to meet and confer with City to address alternatives models of Ad Valorem Property Tax distribution to lessen the impact of ERAF.

Section 8. Term of This Agreement. The term of this Agreement shall commence as of the Effective Date and continue thereafter until one of the parties terminates this Agreement.

Any party may terminate this Agreement by formal action upon no less than 60 days’ notice and termination shall be effective on the first day of July following service of the notice of termination. #29..
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Section 9. Modification This Agreement constitutes the entire agreement between the Parties hereto. To be effective, any amendment, modification, or revision of this Agreement must be a writing duly authorized and signed by both Parties.

Section 10. Entire Agreement With respect to the subject matter hereof only, this Agreement replaces and supersedes the 1996 Agreement, as well as any and all previous negotiations, proposals, commitments, writings, and understanding of any nature whatsoever between County and City.

Section 11. Notices Any notice or communication required hereunder between the parties must be in writing, and may be given either personally, by electronic mail (“email”) (with original forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If given by email transmission, a notice or communication shall be deemed to have been given and received upon actual receipt of the entire document by the receiving party's email server. Notices transmitted by email after 5:00 p.m. on a normal business day, or on a Saturday, Sunday or holiday, shall be deemed to have been given and received on the next normal business day; if given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any party hereto may at any time, by giving ten (10) days written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:

County of Stanislaus City of Modesto
Chief Executive Officer City Manager
County Counsel City Attorney
County of Stanislaus City of Modesto
1010 Tenth Street, Suite 6800 P.O. Box 642
Modesto, CA 95354 Modesto, CA 95353
Section 12. General Provisions
(a) Governing Law. The validity, interpretation and performance of this Agreement shall be controlled by and construed pursuant to the laws of the State of California. (b) Venue. Venue for all legal proceedings shall be in the Superior Court for the County of Stanislaus.
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(c) Severability. This Agreement shall automatically terminate if this Agreement, in its entirety, is determined by a court of competent jurisdiction to be invalid or unenforceable. If any discrete provision of this Agreement shall be determined by such court to be invalid and unenforceable, or if any discrete provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the Effective Date of this Agreement, the remaining provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. (d) Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder at law or in equity shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.
(e) Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement. (f) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” or “can” are permissive.
(g) Successors and Assigns. All representations, covenants and warranties specifically set forth in this Agreement, by or on behalf of or for the benefit of any or all of the Parties hereto, shall be binding upon an inure to the benefit of such Party, its successors, and assigns. The Parties warrant and represent that they have the right and authority to execute this Agreement and that they have not assigned or transferred, or purported to assign or transfer, to any person or entity this Agreement or any portion thereof. The Parties shall not assign or transfer this Agreement without the written consent of the other Party.
(h) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(i) Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to the fulfill the purposes and intentions of this Agreement.
(j) Authority. The signatories to this Agreement warrant and represent that they have the power and authority to enter into this Agreement on behalf of their respective Party, and all formal requirements necessary or required to enter into this Agreement have been fulfilled. #29..
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(k) Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties. (l) Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.
(m) No Joint Venture. Neither this Agreement, nor payment, shall constitute or create any form of association, joint venture, partnership, or cooperative activity, of any nature whatever, for any purpose between the City and the County.
[Signatures on following page]
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth above.

COUNTY OF STANISLAUS
By: ____________________
Jody L. Hayes
Chief Executive Officer
“County"

CITY OF MODESTO
By: ____________________
Joseph P. Lopez
City Manager
"City"
APPROVED AS TO FORM:

Thomas E. Boze, County Counsel
By: ____________________
Thomas E. Boze
County Counsel
APPROVED AS TO FORM:

By: ____________________
Jose M. Sanchez
Modesto City Attorney
Authorized by Resolution No.2022-0298
Adopted June 14, 2022, by the
Stanislaus County Board of Supervisors
Authorized by Resolution No.

Adopted ,2022, by the
Modesto City Council
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EXHIBIT A
Board of
Annexation Tax Rate Equalization
Annexation Date Area Roll Year

1. The Bluffs Reorganization 05/27/1997 002-211 1998/1999

2. Northgate Promenade Reorganization* 06/30/1997 002-212 1998/1999

3. Carver-Bangs Reorganization 08/05/1997 002-213 1998/1999

4. Kiernan Avenue Reorganization 01/20/1999 002-214 2000/2001

5. Village One High School Reorg. 03/19/1999 002-218 2000/2001

6. Coffee-Claratina Reorg. (Amended) 04/27/1999 002-215 2000/2001

7. Coffee-Claratina East Reorg. 05/07/1999 002-219 2000/2001

8. Morgan-Whitmore Reorganization 08/23/1999 002-224 2000/2001

9. Water Wells Reorganization 08/22/2000 002-225, 002-226, 2001/2002 002-227, 002-228,
002-229, 002-230,
002-231, 002-232,
002-234

10. North 99-Woodland Reorganization 11/13/2000 002-235** 2001/2002

11. Machado-Bent Creek Reorganization 06/10/2002 002-236 2003/2004

12. Shelter Cove Reorganization 10/17/2003 002-237 2004/2005

13. Glenn Avenue No. 1 Reorganization 07/26/2004 002-238 2005/2006

14. Kaiser-Cornerstone Reorganization* 10/25/2004 002-240 2005/2006

15. Glenn Avenue Industrial Park Reorg. 03/14/2005 002-241** 2006/2007

16. Lone Palm No. 2 Reorganization 01/07/2008 002-245** 2009/2010

17. Temperate Reorganization 08/05/2008 002-246 2009/2010

18. Tivoli Specific Plan Reorganization 09/23/2008 002-136 2009/2010

19. Carver-9th Street Reorganization 05/29/2009 002-247, 002-250** 2010/2011

20. Jennings Addition No. 2 Change of Org. 01/10/2011 002-249, 002-251, 2012/2013 002-252, 002-253,
002-255, 002-254,
02-256

21. Kiernan Business Park East Change of Org. 04/06/2011 002-257 2012/2013

22. Shackelford Change of Org.* 06/01/2012 002-261** 2013/2014 002-262**

23. Woodglen Change of Org. 01/08/2014 002-260 2015/2016

24. Gallo Campus Reorg. 04/29/2014 002-265 2015/2016

25. Ellen Avenue Reorganization 06/01/2016 002-267** 2017/2018

26. McHenry-Coralwood Reorganization 06/27/2019 002-268 2020/2021

27. Wells Avenue Reorganization 11/22/2019 002-270, 002-272 2020/2021

28. Lodi-Whitmore Change of Org. 06/30/2021 002-273 2022/2023

29. Fairview Village No. 2 Reorganization 5/4/2022 Pending Assignment Pending of TRAs
* Separate Tax-Sharing Agreement Used for Annexation Area ** Redevelopment Areas as Identified by State Board of Equalization #29..
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EXHIBIT B

AREAS EXCEPTED FROM THIS AGREEMENT
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EXHIBIT C
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FISCAL IMPACT MODELING
REPLACING 70/30 PROPERTY TAX GROWTH SHARING WITH 50/50 SHARING MODEL Includes Annexed Properties in Existing 1996 Tax Sharing Agreement 5-Year Analysis (FY 17/18 through FY 21/22)
All Numbers Post-ERAF (Educational Revenue Augmentation Fund)

ANNEXATIONS
PERTINENT TO: 17/18 COUNTY 17/18 CITY 18/19 COUNTY 18/19 CITY 19/20 COUNTY 19/20 CITY 20/21 COUNTY 20/21 CITY 21/22 COUNTY 21/22 CITY COUNTY CITY COUNTY CITY CERES $ (122,541) $ 196,896 $ (127,181) $ 204,350 $ (134,906) $ 216,763 $ (139,221) $ 223,697 $ (148,257) $ 238,215 $ (672,106) $ 1,079,921 $ (134,421) $ 215,984 HUGHSON (29,267) 50,853 (30,854) 53,611 (32,734) 56,878 (34,470) 59,894 (37,484) 65,132 (164,809) 286,368 (32,962) 57,274 MODESTO (112,218) 190,678 (123,299) 209,506 (135,449) 230,150 (145,839) 247,804 (160,451) 272,634 (677,256) 1,150,772 (135,451) 230,154 NEWMAN (61,750) 100,654 (69,747) 113,690 (75,741) 123,461 (82,901) 135,131 (86,602) 141,164 (376,741) 614,100 (75,348) 122,820 OAKDALE (140,402) 214,902 (154,629) 236,679 (166,138) 254,295 (171,842) 263,025 (182,340) 279,094 (815,351) 1,247,995 (163,070) 249,599 PATTERSON (178,348) 279,843 (191,998) 301,260 (213,935) 335,681 (225,235) 353,411 (237,077) 371,993 (1,046,593) 1,642,188 (209,319) 328,438 RIVERBANK (183,901) 295,420 (191,950) 308,350 (199,987) 321,260 (207,639) 333,553 (221,467) 355,767 (1,004,944) 1,614,350 (200,989) 322,870 TURLOCK (273,679) 457,175 (304,583) 508,800 (316,635) 528,933 (343,134) 573,199 (359,703) 600,877 (1,597,734) 2,668,984 (319,547) 533,797 WATERFORD (556) 962 (717) 1,241 (784) 1,356 (838) 1,451 (918) 1,589 (3,813) 6,599 (763) 1,320 TOTALS $ (1,102,662) $ 1,787,383 $ (1,194,958) $ 1,937,487 $ (1,276,309) $ 2,068,777 $ (1,351,119) $ 2,191,165 $ (1,434,299) $ 2,326,465 $ (6,359,347) $ 10,311,277 $ (1,271,869) $ 2,062,255 POST ERAF PRIOR 5-YEARS ANNUAL AVERAGE
5 4 3 2 1
#29..

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 12, 2022
Date: March 22, 2022
TO: Mayor and Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Scotty Douglass, Deputy City Manager
SUBJECT: Blight Abatement Pilot Program Proposal
CONTACT: Edgar R. Garcia, Housing and Urban Development Supervisor, [email protected], 209-571-5101
DESCRIPTION:

Consider approving a Blight Abatement Pilot Program and the “Modesto Mo’ Beautiful” Slogan for education and outreach on blight abatement programs in accordance with the 2020-2025 Blight Abatement Strategy, and allocating $750,000 in America Rescue Plan Act funding toward blight abatement efforts, and amending the position allocation plan for the Fiscal Year 2021- 2022 as adopted in the operating budget. (Funding Source: America Rescue Plan Funding) STRATEGIC PLAN ELEMENT:

This item supports the City’s Strategic Plan Commitment for Quality of Life, Goal A: Improve Community Safety, Strategy 6: “Motivate and encourage staff and community members to identify and mitigate blight”; Goal D: “Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.” BACKGROUND:

The City of Modesto has implemented a series of blight abatement campaigns over the course of the last 30 years. Beginning in 1994, the Neighborhood Environmental Action Team (NEAT) channeled volunteer group action through the adoption of “Neat Zones.” At its peak, 22 Neat Zones were maintained by groups representing schools, businesses, professional organizations, and individual community members and completely funded through private donation.

In 2003, the Modesto City Council approved the “Don’t Trash Modesto” campaign which allowed groups to sponsor the on-going litter clean-up in an area, typically conducted by Honor Farm inmates. The program operated successfully until 2008, when the recession caused a reduction in available resources. Any existing programs from these previous efforts are funded and conducted through the City’s routine maintenance of landscaping, public spaces, and right of ways.
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City Council, June 7, 2022
Blight Abatement Pilot Program Proposal

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Blight continues to be a key issue for Modesto, as identified in the 2019 citywide community survey, blight is one of the most pressing concerns of residents. To respond to this concern, the City adopted the 2020-2025 Blight Abatement Strategy, by Resolution 2019-555, which was developed in collaboration with community members, partner agencies, and internal City departments. The strategy outlines initiatives for blight abatement on both public and private property, partnerships with community groups and stakeholders, and the formation of the Blight Abatement Advisory Committee (BAAC). In addition, as part of the Blight Abatement Strategy, key community stakeholders expressed an interest in improving the education and outreach of City services, and possible penalties for illegal dumping. The Blight Abatement Advisory Committee convened a sub-committee with the goal of creating a slogan under which an outreach campaign could be organized. The subcommittee was presented with campaign ideas by the City’s communications consultant. On April 6, 2022, the BAAC voted to recommend the slogan “Modesto Mo’ Beautiful” to City Council for approval. The BAAC intends to collaborate with City staff to further develop outreach materials using the slogan “Modesto Mo’ Beautiful” as an anchor that connects the various blight abatement services the City offers. These advertisements can include flyers, signs, mailers, and social media and website content with greater details on specific City programs and calls to action. The education and outreach campaign would be implemented by City staff, but resources would be available to private and community organizations to conduct their own outreach with City materials.

The Blight Abatement Program was allocated $750,000 within the Modesto Forward Strategy, adopted under Resolution 2021-194, which addresses applicable uses of American Rescue Plan Act funds and the goals the City of Modesto intends to meet with those funds. The proposed program details are intended to begin carrying out the goals identified by the Council in the Blight Abatement Strategy, including the following: improved turn-around times, outreach and education programs, improvements to digital detection to deter illegal behavior, and solutions to private property nuisance issues.

DISCUSSION:

The Blight Abatement Program is a pilot program that demonstrates the City’s commitment and multifaceted efforts to abate blight and illegal dumping through communication and education, improve blighted private property, and enhance community engagement. This proposal is intended to broaden the scope, awareness, training, participation and partnerships. The City also intends to make an additional allocation as part of the second allotment of ARPA funds that the City expects to receive from the Treasury Department to extend the term of the pilot period.

Following the pilot period, the City will pursue sustainable funding sources to ensure the program continues into the future and leverage data collected during the pilot period to make informed policy and funding recommendations. Staff anticipates a total cost of $750,000 to implement the Blight Abatement Pilot Program components detailed below:

1. Solid Waste Abatement Team – $300,000
A consistent concern from residents is the amount of time required for the abatement of blight issues; the current timeline for illegal dumping can take between 4-15 days to abate as code enforcement staff investigate and resolve the issue. To help address this, City staff intends to utilize funding to provide two limited-term (one year) maintenance worker positions, a truck, and a trailer to exclusively address illegal dumping where a responsible party cannot be determined. Funding will also cover disposal costs for #30..
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City Council, June 7, 2022
Blight Abatement Pilot Program Proposal

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collected dumping and litter. By streamlining the process through these proposed staff members, the City can remove approximately half of all illegal dumping with 3-5 days of reporting and discourage further dumping. The breakdown in expenses is detailed below:

2. ARPA Homeowner Rehabilitation Program – $250,000
The City currently has a Homeowner Repair Program funded by Community Development Block Grant funding and has a Revolving Loan Fund which sustains the program through the income that it generates, which are both directly aimed at addressing private property nuisance issues and supporting residents with health and safety repairs. The current funding source allows for clients to be served who earn up to 80% of the area median income. Single family homeowners are able to qualify for a 20- year deferred loan at 3% interest with 20% of the total project costs granted after a 10- year affordability period. Mobile homes are granted up to $20,000 forgiven after a 5-year affordability period. The program typically expends $300,000 annually serving approximately 15-20 households in our community.

The requested funding will expand the program to residents who earn 140% of the Area Median Income, which would extend the reach and benefits of this program. Residents may qualify for up to $25,000 in assistance for the repairs with a 10% grant of up to $2,500. Financing will consist of a 10-year loan with a 3% annual accrual of interest.

The program expansion requires a new policy to define the program eligibility of homeowners, repayment period, and requirements associated with the funding that is required to be approved by the City Council. The key element of the new policy expands the income eligibility from 80% to 140% of the Area Median Income, effectively increasing the income limit for a family of four from $63,750 to $114,780. This program and policy will expand the program benefits to approximately half of Modesto residents, based on census data.

With this allocation, the city estimates being able to purchase 6 additional cameras. The City is currently utilizing 3 cameras to deter illegal dumping in several areas and has been successful in ensuring the city is able to enforce the issue and securing several thousand dollars in fines. The proposed increase in cameras will support the ongoing initiative to help prevent illegal behavior such as dumping and also support with enforcement. The cost of a single camera is approximately $15,000.

Project Expense Cost
Limited Term Maintenance
Worker I (2) $ 149,000
Disposal Costs $ 94,000
Truck $ 43,000
Trailer $ 14,000
TOTAL COST $ 299,939
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City Council, June 7, 2022
Blight Abatement Pilot Program Proposal

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Interested organizations may include the Dry Creek Trails Coalition, Operation 9-2-99, Love Modesto, Modesto Neighborhoods, Inc., and several others to support blight abatement or public beautification projects. Staff anticipates launching a Call for Projects in coordination with several departments in mid-2022, making varying amounts available to organizations to support their initiatives. The review and award process will be established in coordination with the Blight Abatement Advisory Committee and will be subject to approval by the Council.

5. Blight Abatement Advisory Committee Priorities – $50,000 The newly established Blight Abatement Advisory Committee has identified several blight abatement initiatives as priorities of the committee. In an effort to promote their ideas and begin the implementation phase, staff recommends allocating $50,000 to implement various initiatives that the Committee has proposed. The Blight Abatement Advisory Committee will determine which priorities within the Blight Abatement Strategy that it would like to pursue and will be subject to approval by the Council.

FISCAL IMPACT:

The Blight Abatement Pilot Program would be funded entirely by ARPA funds as designated in the Modesto Forward Strategy. The allocation of funding would be as follows:

Programs Blight Strategy Initiative Estimated Cost
Solid Waste Abatement Team (2
limited-term maintenance workers for
one year)
Rapid illegal dumping and litter
abatement that includes a truck, trailer,
and disposal costs.
$300,000
ARPA Homeowner Rehabilitation
Program
Assistance for private property
renovations for eligible homeowners.
$250,000
Procurement of Cameras (6 cameras) Increase digital detection and prevention methods in “hot spots.”
$100,000
Public Beautification Projects Coordination with public and private partners for public beautification.
$50,000
Blight Abatement Committee Priorities Community outreach and education guided by BAAC priorities.
$50,000
TOTAL COST $750,000
COMMITTEE RECOMMENDATION:

This item was considered by the Safety and Communities Committee on April 11, 2022 and was approved to be forwarded to Council for consideration. Additionally, on June 13, 2022, the Safety and Communities Committee approved the “Modesto, Mo’ Beautiful” Slogan to move forward to Council for consideration.

RECOMMENDED COUNCIL ACTION:
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City Council, June 7, 2022
Blight Abatement Pilot Program Proposal

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Staff Recommendations:

Resolution approving a Blight Abatement Pilot Program and the “Modesto Mo’ Beautiful” Slogan for education and outreach on blight abatement programs in accordance with the 2020- 2025 Blight Abatement Strategy, and allocating $750,000 in America Rescue Plan Act funding toward blight abatement efforts.

Resolution approving an American Rescue Plan Act (ARPA) Homeowner Rehabilitation Program Policy defining the structure of the program, and allocating $250,000 from the $750,000 allocation in American Rescue Plan funds for the Blight Abatement Pilot Program.

Resolution amending the position allocation for the Fiscal Year 2021-2022 as adopted in the operating budget.

Approved by:

Scotty Douglass, Deputy City Manager
Joseph P. Lopez, City Manager
Attachments:

1. Resolution (3)

2. Homeowner Rehabilitation Program Policy

3. Blight Abatement Strategy
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-?

RESOLUTION APPROVING A BLIGHT ABATEMENT PILOT PROGRAM AND THE “MODESTO MO’ BEAUTIFUL” SLOGAN FOR EDUCATION AND OUTREACH ON BLIGHT ABATEMENT PROGRAMS IN ACCORDANCE WITH THE 2020-2025 BLIGHT ABATEMENT STRATEGY, AND ALLOCATING $750,000 IN AMERICA

RESCUE PLAN ACT FUNDING TOWARD BLIGHT ABATEMENT EFFORTS WHEREAS, the City of Modesto has implemented a series of blight abatement campaigns over the course of the last 30 years, and
WHEREAS, beginning in 1994, the Neighborhood Environmental Action Team (NEAT) channeled volunteer group action through the adoption of “Neat Zones,” and WHEREAS, in 2003, the Modesto City Council approved the “Don’t Trash Modesto” campaign which allowed groups to sponsor the on-going litter clean-up in an area, typically conducted by Honor Farm inmates, and
WHEREAS, the program operated successfully until 2008, when the recession caused a reduction in available resources, and
WHEREAS, any existing programs from these previous efforts are funded and conducted through the City’s routine maintenance of landscaping, public spaces, and right of ways, and WHEREAS, blight continues to be a key issue for Modesto, as identified in the 2019 citywide community survey, blight is one of the most pressing concerns of residents, and WHEREAS the same year, the City adopted the 2020-2025 Blight Abatement Strategy, developed through collaboration with community members, past partners, other agencies, and internal City departments, and
WHEREAS, the strategy outlines initiatives for blight abatement in both public and private property, partnerships with community groups and stakeholders, and the formation of the Blight Abatement Advisory Committee, and
#30..
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WHEREAS, the Blight Abatement Program was approved as an expenditure within the Modesto Forward Strategy, adopted under Resolution 2021-194, which addresses applicable uses of ARPA funds and the goals the City of Modesto intends to meet with those funds, and WHEREAS, the Blight Abatement Program is a pilot program that demonstrates the City’s commitment and multifaceted efforts to abate blight and illegal dumping through communication and education, improve blighted private property, and enhance community engagement through a creative campaign slogan, and
WHEREAS, this proposal is intended to broaden the scope, awareness, training, participation and partnerships, and
WHEREAS, the City also intends to make an additional allocation as part of the second allotment of ARPA funds that the City expects to receive from the Treasury Department to extend the term of the pilot period, and
WHEREAS, following the pilot period, the City will pursue sustainable funding sources to ensure the program continues into the future and leverage data collected during the pilot period to make informed policy and funding recommendations, and WHEREAS, staff anticipates a total cost of $750,000 to implement the Blight Abatement Pilot Program components, as detailed below:

1. Solid Waste Abatement Team – $300,000
A consistent concern from residents is the amount of time required for the abatement of blight issues; the current timeline for illegal dumping can take between 4-15 days to abate as code enforcement staff investigate and resolve the issue. To help address this, City staff intends to utilize funding to hire two limited-term (one-year) Maintenance Worker I positions, a truck, and a trailer to exclusively address illegal #30..
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dumping where a responsible party cannot be determined. Funding will also cover disposal costs for collected bulky items and litter. By streamlining the process through these proposed staff members, the City can remove approximately half of all illegal dumping with 3-5 days of reporting and discourage further dumping.

2. ARPA Homeowner Rehabilitation Program – $250,000
The City currently has a Homeowner Repair Program funded by Community Development Block Grant funding and has a Revolving Loan Fund which sustains the program through the income that it generates, which are both directly aimed at addressing private property nuisance issues and supporting residents with health and safety repairs. The current funding source allows for clients to be served who earn up to 80% of the area median income. Single family homeowners are able to qualify for a 20-year deferred loan at 3% interest with 20% of the total project costs granted after a 10-year affordability period. Mobile homes are granted up to $20,000 forgiven after a 5-year affordability period. The program typically expends $300,000 annually serving approximately 15-20 households in our community.

The requested funding will expand the program to residents who earn 140% of the Area Median Income, which would extend the reach and benefits of this program.

Residents may qualify for up to $25,000 in assistance for the repairs with a 10% grant of up to $2,500. Financing will consist of a 10-year loan with a 3% annual accrual of interest. The program expansion requires a new policy to define the program eligibility of homeowners, repayment period, and requirements associated with the funding that is required to be approved by the City Council. The key element of the new policy expands the income eligibility from 80% to 140% of the Area Median #30..
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Income, effectively increasing the income limit for a family of four from $63,750 to $114,780. This program and policy will expand the program benefits to approximately half of Modesto residents, based on census data.

3. Procurement of Cameras – $100,000
The City also recommends the purchase of approximately 6 cameras to deter residents from illegal behavior and to support staff with enforcing hot spot areas in the community. With this allocation, the city estimates being able to purchase 6 additional cameras. The City is currently utilizing 3 cameras to deter illegal dumping in several areas and has been successful in ensuring the city is able to enforce the issue and securing several thousand dollars in fines. The proposed increase in cameras will support the ongoing initiative to help prevent illegal behavior such as dumping and also support with enforcement. The cost of a single camera is approximately $15,000.

4. Public Beautification Projects – $50,000
Several community organizations have proposed beautification projects to the city that are creative and innovative and due to funding and resource constraints the city was unable to support the proposals. This allocation is intended to release a Call for Projects to local organizations that have historically been interested in beautification projects. Interested organizations may include the Dry Creek Trails Coalition, Operation 9-2-99, Love Modesto, Modesto Neighborhoods, Inc., and several others to support blight abatement or public beautification projects. Staff anticipates launching a Call for Projects in coordination with several departments in mid-2022, making varying amounts available to organizations to support their initiatives. The review and #30..
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award process will be established in coordination with the Blight Abatement Advisory Committee, and will be subject to approval by the Council.

WHEREAS, the blight Abatement Pilot Program would be funded entirely by ARPA funds as designated in the Modesto Forward Strategy, and WHEREAS, this item was considered by the Safety and Communities Committee on April 11th, 2022 and was approved to be forwarded to Council for consideration.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a Blight Abatement Pilot Program and the “Modesto Mo’ Beautiful” Slogan for education and outreach on the Blight Abatement Programs in accordance with the 2020-2025 Blight Abatement Strategy, and allocates $750,000 in America Rescue Plan Act Funding toward blight abatement efforts.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of July 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
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AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:

DIANE NAYARES PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY:

JOSE M. SANCHEZ, City Attorney
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-?

RESOLUTION APPROVING AN AMERICAN RESCUE PLAN ACT (ARPA)

HOMEOWNER REHABILITATION PROGRAM POLICY DEFINING THE
STRUCTURE OF THE PROGRAM, AND ALLOCATING $250,000 FROM THE $750,000 ALLOCATION IN AMERICAN RESCUE PLAN FUNDS FOR THE BLIGHT

ABATEMENT PILOT PROGRAM
WHEREAS, the City of Modesto has implemented a series of blight abatement campaigns over the course of the last 30 years, and
WHEREAS, beginning in 1994, the Neighborhood Environmental Action Team (NEAT) channeled volunteer group action through the adoption of “Neat Zones,” and WHEREAS, in 2003, the Modesto City Council approved the “Don’t Trash Modesto” campaign which allowed groups to sponsor the on-going litter clean-up in an area, typically conducted by Honor Farm inmates, and
WHEREAS, the program operated successfully until 2008, when the recession caused a reduction in available resources, and
WHEREAS, any existing programs from these previous efforts are funded and conducted through the City’s routine maintenance of landscaping, public spaces, and right of ways, and WHEREAS, blight continues to be a key issue for Modesto, as identified in the 2019 citywide community survey, blight is one of the most pressing concerns of residents, and WHEREAS the same year, the City adopted the 2020-2025 Blight Abatement Strategy, developed through collaboration with community members, past partners, other agencies, and internal City departments, and
WHEREAS, the strategy outlines initiatives for blight abatement in both public and private property, partnerships with community groups and stakeholders, and the formation of the Blight Abatement Advisory Committee, and
#30..
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WHEREAS, the Blight Abatement Program was approved as an expenditure within the Modesto Forward Strategy, adopted under Resolution 2021-194, which addresses applicable uses of ARPA funds and the goals the City of Modesto intends to meet with those funds, and WHEREAS, the Blight Abatement Program is a pilot program that demonstrates the City’s commitment and multifaceted efforts to abate blight and illegal dumping through communication and education, improve blighted private property, and enhance community engagement through a creative campaign slogan, and
WHEREAS, the City currently has a Homeowner Repair Program funded by Community Development Block Grant funding and has a Revolving Loan Fund which sustains the program through the income that it generates, which are both directly aimed at addressing private property nuisance issues and supporting residents with health and safety repairs, and WHEREAS, the current funding source allows for clients to be served who earn up to 80% of the area median income. Single family homeowners are able to qualify for a 20-year deferred loan at 3% interest with 20% of the total project costs granted after a 10-year affordability period, and
WHEREAS, mobile homes are granted up to $20,000 forgiven after a 5-year affordability period. The program typically expends $300,000 annually serving approximately 15-20 households in our community, and
WHEREAS, the requested funding will expand the program to residents who earn 140% of the Area Median Income, which would extend the reach and benefits of this program, and WHEREAS, residents may qualify for up to $25,000 in assistance for the repairs with a 10% grant of up to $2,500. Financing will consist of a 10-year loan with a 3% annual accrual of interest, and
#30..
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WHEREAS, the program expansion requires a new policy to define the program eligibility of homeowners, repayment period, and requirements associated with the funding, and WHEREAS, the key element of the new policy expands the income eligibility from 80% to 140% of the Area Median Income, effectively increasing the income limit for a family of four from $63,750 to $114,780, and
WHEREAS, this program and policy will expand the program benefits to approximately half of Modesto residents, based on census data, and
WHEREAS, following the pilot period, the City will pursue sustainable funding sources to ensure the program continues into the future and leverage data collected during the pilot period to make informed policy and funding recommendations, and WHEREAS, the blight Abatement Pilot Program would be funded entirely by ARPA funds as designated in the Modesto Forward Strategy, and WHEREAS, this item was considered by the Safety and Communities Committee on April 11th, 2022 and was approved to be forwarded to Council for consideration.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an American Rescue Plan Act (ARPA) Homeowner Rehabilitation Program Policy defining the structure of the program, and allocating $250,000 from the $750,000 allocation in American Rescue Plan funds for the Blight Abatement Pilot Program.

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:

DIANE NAYARES PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY:

JOSE M. SANCHEZ, City Attorney
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-?

RESOLUTION AMENDING THE POSITION ALLOCATION FOR FISCAL
YEAR 2021-22 AS ADOPTED IN THE OPERATING BUDGET
WHEREAS, a Position Allocation for the City of Modesto was adopted by Modesto City Council on June 23, 2021, as part of the Annual Budget of the City of Modesto for Fiscal Year 2021-22, and
WHEREAS, classification studies are conducted to ensure that a classification system is equitable and consistent within an organization and that positions are correctly classified, and
WHEREAS, per Personnel Administrative Order 2.2-87-12, a classification study may be conducted in response to a reclassification request, to develop/revise a classification specification, or to assist in a reorganization, and WHEREAS, classification studies were conducted by Human Resources to determine appropriate classifications, and
WHEREAS, position changes will be effective the first day of the pay period upon adoption, unless otherwise noted.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the Position Allocation and the Fiscal Year 2021-22 Operating Budget for various departments as follows:

1. Add two (2) Maintenance Worker I in the Solid Waste (56018) division of the Public Works Department.

The foregoing resolution was adopted at a regular meeting of the Council of the City of Modesto held on the 7th day of June 2022, by Councilmember ?, who moved its adoption, #30..
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which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST:

DIANE NAYARES PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: ___________________________________
JOSE M. SANCHEZ, City Attorney
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1 ARPA
Homeowner Rehabilitation Expansion
Program
Policies & Procedures
[email protected]
*These policies supersede any previously adopted policies and are subject to review and revision by the City of Modesto Housing Rehabilitation Loan Committee.
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2 Table of Contents

1.0 APPLICABLE LAWS AND REGULATIONS.............................................................................................3

2.0 ELIGIBLE REPAIRS (in order of priority) ...................................................................................................3

3.0 PROPERTY ELIGIBIILTY:..........................................................................................................................3

4.0 HOMEOWNER ELIGIBILITY:....................................................................................................................4

5.0 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE (24 CFR 570.208 (a)(3);(b), and 24 CF570.202):
6 6.0 MAXIMUM AFTER REHABILITATION VALUE.....................................................................................6

7.0 MAXIMUM COMBINED LOAN TO VALUE RATIO:..............................................................................7

8.0 RATES AND TERMS OF PROGRAM ASSISTANCE: ..............................................................................7

9.0 BID SOLICITATION: ...................................................................................................................................8

10.0 PROCUREMENT ..........................................................................................................................................9

11.0 EMERGENCY REPAIRS PROCEDURE...................................................................................................12

12.0 CONTRACTOR ELIGIBILITY ..................................................................................................................13

13.0 COST REASONABLENESS AND SCOPE OF WORK:...........................................................................14

14.0 ENVIRONMENTAL REVIEW:..................................................................................................................15

15.0 HOUSING REHABILITATION LOAN COMMITTEE (HRLC) APPROVAL: .......................................15

16.0 WRITTEN AGREEMENTS: .......................................................................................................................16

17.0 PROJECT CONTINGENCIES ....................................................................................................................16

18.0 CONTRACTOR LIST .................................................................................................................................17

19.0 CONTRACTOR DISQUALIFICATION/REMOVAL FROM CONTRACTOR LIST..............................17

20.0 PROGRESS INSPECTIONS .......................................................................................................................19

21.0 CONTRACTOR COMPENSATION...........................................................................................................19

22.0 MONITORING ............................................................................................................................................21

23.0 LEAD BASED PAINT OPERATING PROCEDURES FOR UNITS BUILT PRIOR TO 1978 ...............21

24.0 LOAN MODIFICATIONS ..........................................................................................................................23 #30..
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3 Homeowner Rehabilitation Expansion Program Policies & Procedures

1.0 APPLICABLE LAWS AND REGULATIONS

1.1 All Housing Rehabilitation Program activities shall be conducted in accordance with all applicable funding standards, building codes, and zoning ordinance requirements.

1.2 All work conducted in accordance with an approved Housing Rehabilitation Program activity shall be consistent with program funding requirements and any locally approved repair and replacement standards including, but not limited to: site improvements, windows and doors, roofing, accessibility, and abatement of hazardous materials (i.e. mold, lead based paint, etc.).

1.3 All terms used within these policies shall be as defined by applicable funding source(s) or other locally approved Housing Rehabilitation Program policies and/or standards.

1.4 All program applications will be processed in accordance to the date of receipt of a complete application and are subject to available funding.

2.0 ELIGIBLE REPAIRS

2.1 Health, safety, and exterior repairs include but are not limited to: abatement of hazardous materials (i.e. mold, lead based paint, etc.), exterior paint, stucco repair, siding repair, fence repair, exterior door replacement, window replacement, roof replacement, yard clean up, and some landscaping.

3.0 PROPERTY ELIGIBIILTY:

3.1 The assisted property shall be located within the city limits of the City of Modesto.

3.2 The assisted property shall contain a legal residential structure intended for continued residential occupancy and meet applicable rehabilitation standards and ordinances at the time of project completion.

3.3 Manufactured homes are not eligible for assistance.

3.4 The assisted property shall be owner-occupied and shall be the principal place of residency of owner-occupants (hereafter “Borrowers”) and hold legal title to the property.

4.0 HOMEOWNER ELIGIBILITY:

4.1 All Borrower households shall have incomes at or below One-Hundred Forty percent (140%) of the Stanislaus County Area Median Income (AMI), adjusted for household size, as published annually by the United States Department of Housing and Urban Development (HUD); live within a Qualified Census Tract as defined by the Department of Housing and Urban Development; and/or have experienced a negative economic impact due to the COVID-19 pandemic.

4.2 Borrowers without a mortgage shall demonstrate a debt-to-income ratio sufficient to allow for the on-going annual payments of property tax and any insurance required as a result of the Housing Rehabilitation Program assistance.

4.3 Borrowers with Reverse Mortgages will be considered on a case by case basis. Borrower must comply with program loan to value requirements.
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4 4.4 Borrowers with a mortgage shall show that all mortgage, property tax, and insurance payments are current, and meet both of the following debt-to-income ratios:

4.4.1 Front end (housing) debt-to-income ratio shall not exceed 45 percent (45%) and is the percentage of a Borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any.

4.4.2 Back-end (total debt obligation) debt-to-income ratio shall not exceed 45 percent (45%), and is the percentage of the borrower’s gross monthly income that includes the cost of housing as described in the Front-End ratio above, plus any other monthly debt payments such as car loans, personal loans, credit card debt, or child support and alimony payments.

4.5 Credit Report and Liabilities

4.5.1 The Housing Financial Specialist (HFS) must obtain a signed “Authorization to Verify Information” and/or “Eligibility Release Form” from the applicant authorizing the City to pull a credit report and verify any information with a third party.

4.5.2 The HFS shall pull the applicant(s) credit report within three business days of determining income eligibility. The HFS shall order a credit report through the City of Modesto’s secure account held with a major credit bureau (e.g. Equifax, Experian, or Transunion). A credit report shall be pulled for all program applicants.

4.5.3 If the applicant is eligible for a loan, the credit report should be reviewed to determine if any public liens will be in prior position to the City loan, or to compare the applicant’s actual credit liabilities with the liabilities listed on the application. The credit report should be used for verification of information. The credit score is not relevant for a deferred payment loan. Debt-to-income guidelines should be used to demonstrate the household’s ability to continue to live in the home.

4.5.4 If the applicant is eligible for an amortized loan, the credit report should be analyzed for a credit score, verification of debts, and ability and willingness to repay the loan.

The HFS shall use debt-to-income ratios allowable under this policy as a guideline for payment affordability.

4.5.5 Special Note: Household income must be collected on all qualifying adult household members. However, only the credit liabilities of the applicant will be used in the credit liability calculation. Adult members of the household who are not on title are not a party to the loan transaction.

4.6 Borrowers shall meet the following credit worthiness criteria:

4.6.1 No outstanding judgments or liens at the time of loan approval or loan execution. As part of application for assistance, Borrower shall disclose any personal liens that may attach to the property. Failure to disclose any pertinent information that may affect eligibility may be grounds for denial of assistance and application withdrawal. To identify any personal liens, a Judgment and Tax Lien Guarantee search of Borrowers and Preliminary Title Report search on the property shall be conducted after Housing Rehabilitation Loan Committee (HRLC) approval.
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5 4.6.2 Outstanding collections must be paid prior to HRLC approval, unless the HRLC determines, on a case by case basis, that the circumstances that led to collection were outside of the applicant’s control, and the payment of the outstanding collection(s) will not impact the applicant’s ability to financially retain ownership.

4.6.3 Late payments due to extenuating circumstances will be considered as part of the approval process. Factors leading to late payments will be reviewed and considered on a case by case basis.

4.6.4 Borrower shall not have filed bankruptcy, or received a bankruptcy discharge, in the last three (3) years prior to date of application.

4.6.5 Homeowner Eligibility – the Housing Rehabilitation Loan Committee (HRLC) will consider applications on a case by case basis. The HRLC will have the discretion to consider any extenuating circumstances for a homeowner who may not meet the Homeowner Eligibility Guidelines and may decide to approve the application based on such extenuating circumstances.

4.6.5.1 Applicants with Debt to Income ratios outside the limits established within these policies may be considered for assistance if the Debt to Income ratio is within 10% of the current Homeowner Rehabilitation Program Policies & Procedures guidelines.

4.6.5.2 Applicants who have defaulted on their property taxes may be considered for assistance if a payment plan has been established with the Stanislaus County Treasurer/Tax Collector’s Department and applicant is current on those payments.

4.7 If at any time the Borrowers filed bankruptcy that resulted in a discharge of any debt owed to City of Modesto, or the former City of Modesto Redevelopment Agency, for housing rehabilitation or down payment assistance, the HRLC shall evaluate the circumstances of the bankruptcy in order to determine if further assistance may be provided without further risk to funding investment.

4.8 Borrowers shall not be a person, or the immediate family of any person, who is in a decisionmaking position relative to the Housing Rehabilitation Program.

4.9 Process:

4.9.1 Housing Finance Specialist determines general program eligibility, including income limits and lending loan-to-value ratios along with a process to determine all other funding opportunities have been explored (technical assistance);

4.9.2 Housing Rehabilitation Specialist determines properties needs via exterior visual inspection (pre-1978 visual Lead Based Paint Inspection conducted);

4.9.3 Housing Rehabilitation Specialist scope of work and budget to Housing Rehabilitation Supervisor;

4.9.4 HRLC reviews for consideration and approval of the overall project proposal;

4.9.5 Housing Rehabilitation Specialist processes approved projects through the bid process;

4.9.6 Application inquiry through program completion within approximately 90-days, unless there are extenuating circumstances beyond staff control (e.g. – rain delays);

4.9.7 Quarterly program updates provided to HRLC.

5.0 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE (24 CFR 570.208 (a)(3) ;(b), and 24 CFR 570.202):

5.1 Single Family Residence: An eligible Borrower may qualify for the full cost of rehabilitation/reconstruction work needed to address any Eligible Repairs outlined in ELIGIBLE REPAIRS Section, and/or comply with state and local codes and ordinances; however, the #30..
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6 maximum assistance shall not exceed any maximum subsidy established by the funding source(s) utilized to fund the project.

5.1.1 Loan amount is determined by the repairs/modifications that are required or eligible, as requested and approved by the owner, Community Development Manager or his/her designee.

5.1.2 Maximum amounts are as follows:

5.1.2.1 Grants up to $2,500 require HRLC acknowledgement in order for staff to proceed;

5.1.2.2 Loans up to $22,500 require HRLC approval in order for staff to proceed;

5.1.3 Emergency repairs of up to $5,000 may be authorized by the Director of Community and Economic Development if it poses an “extreme health and safety related emergency (e.g. – security hazards).

6.0 MAXIMUM AFTER REHABILITATION VALUE
The after-rehabilitation value of a home assisted under this program shall not exceed 100% of the current median sales price of a single-family home listed for the City of Modesto. This information may be obtained by collecting comparable sales data from sources including but not limited to Zillow, Trulia, Data Quick, Realty Trac, Real Quest, Epraisal.com, or FHA 203(b) loan limits. If necessary, the after-rehabilitation value may be determined by ordering a professional appraisal. An After-Rehabilitation Value Limit Worksheet must be completed and certified by the housing rehabilitation specialist and placed in the project file.

7.0 MAXIMUM COMBINED LOAN TO VALUE RATIO:

7.1 For ARPA funded loans, the total indebtedness against the assisted property shall not exceed 100% of the estimated after-rehabilitation value of the property as determined by “Estimates of Value” conducted by program staff using a Comparable Sales Approach, or an appraisal by a licensed appraiser if required by funding source.

7.2 As part of application for assistance, Borrower shall disclose any personal liens that may attach to the property (failure to disclose any pertinent information that may affect eligibility may be grounds for denial of assistance and application withdrawal). To determine the total indebtedness assigned against the property, a title search of the property and Borrowers (for the purpose of verifying any personal liens that may attach to the property) shall be conducted after HRLC project approval.

7.3 An “Estimates of Value” using a Comparable Sales Approach shall be based on the sale prices of at least three (3) comparable properties, sold within the last twelve months and located within a reasonable radius of the subject property. Any alternative methodology for determining estimated value must be approved by the HRLC.

8.0 RATES AND TERMS OF PROGRAM ASSISTANCE:

8.1 Eligible homeowners may receive a deferred payment loan evidenced by a Promissory Note and secured by a Deed of Trust, immediate pay back required for 10 years unless the borrower sells or transfers title or discontinues residence in the dwelling. #30..
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7 8.1.1 Term of Grant Agreement: The following grant agreement term will apply to those projects with a grant and loan combination, 5 years. During the Grant Agreement term, the homeowner must comply with all Grant Agreement requirements;

8.1.1.1 Grant assistance will be 10% of total project cost or $2,500 whichever is less. 20% of the total Grant amount will be forgiven each year the home is owned and continuously occupied by the borrower.

8.2 The following terms shall apply to loans made to households with AMI levels between 81% and 140%:

8.2.1 10-year loan with monthly payments

8.2.2 3% simple interest

8.2.3 Must meet Debt to Income Ratio limits specified in HOMEOWNER ELIGIBILITY SECTION.

8.3 In the event that a homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan shall become due and payable.

8.4 Any other transfer of interest, due to homeowner death or other circumstances shall be subject to the requirements of the funding source(s) and shall be defined within the Promissory Note and/or Deed of Trust.

8.5 The HRLC may approve a request to subordinate a loan, in order for the owner to refinance the property. Refer to City of Modesto Subordination Policy for subordination approval criteria.

9.0 BID SOLICITATION:

9.1 A detailed scope of work and project independent cost estimate developed by the Housing Rehabilitation Specialist (HRS) based on eligible repairs as listed in ELIGIBLE REPAIRS Section

2.0 shall be prepared prior to consideration for HRLC and bid submittal. The Scope of Work shall be approved by the Housing Rehabilitation Supervisor and Borrower.

9.1.1 The independent cost estimate shall be established utilizing local market data and published construction cost guidelines.

9.1.2 The Housing Rehabilitation Supervisor will review the independent cost estimate prepared by the HRS to ensure the cost estimate is reasonable based on local market data. See COST REASONABLENESS Section for further details on Cost Reasonableness.

9.2 To comply with City requirements, a minimum of three bids by California Licensed Contractors shall be obtained prior to bid approval consideration. The City of Modesto will make every attempt to obtain the highest number of bids possible for every project.

9.3 Bids in excess of 15% of the HRLC approved amount must be brought back to HRLC for approval consideration.

9.3.1 If determined appropriate by Housing Rehabilitation Specialist, bids solicitations may be requested from multiple contractors with different disciplines (i.e. general, electrical, roofing, and plumbing, etc.). This approach may be considered as a cost savings measure, if approved by the Housing Rehabilitation Supervisor.

10.0 PROCUREMENT
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8 10.1 Procurement projects under this program will occur after Housing Rehabilitation Loan Committee project approval. The HRLC will approve each project based on Housing Rehabilitation Cost Estimates. Upon project approval, project procurement will occur in alignment with the 15% cost reasonableness rule identified in COST REASONABLENESS Section.

10.2 Projects procured under the Homeowner Rehabilitation Program will be conducted in a manner that promotes full and open competition and avoid arbitrary action in the procurement process.

The following procurement process will be followed by the City:

10.2.1 Procurement of contractors or other services related to the development of housing through either new construction or rehabilitation must be made on the basis of soliciting competitive bids.

10.2.2 The projects will be publicly advertised through the City’s PlanetBid system, when timing permits. All contractors registered on the City’s PlanetBid system will receive notification of project availability.

10.2.2.1 The Community Development Division will notify prospective bidders, when feasible, to encourage as wide a response as possible.

10.2.3 The bid solicitation will include a scope of work, project address, date of mandatory walkthrough, and date bids are due.

10.2.4 Contracts will be awarded to responsible contractors who possess the ability to perform successfully under the terms and conditions of the proposed procurement.

Non-responsible contractors will not be allowed to bid on City projects under this program for the duration of the program year.

10.2.5 Rehabilitation projects below $50,000:

10.2.5.1 Contracts under $50,000 are considered a “Small Purchase” under the City’s purchasing policies.

10.2.5.2 The policy aligns with OMB Guidance Section 200.319 and 200.320

10.2.5.3 Projects under $50,000 shall be purchased with three quotes, with public advertising through PlanetBid, if time permitted.

10.2.5.4 The mandatory walkthrough will take place eight (8) business days from the date of bid posting. Contractors will have the opportunity to view project items to be repaired and ask any questions for clarification of bid specifications.

10.2.5.5 Depending on the nature of questions addressed and clarification provided at the mandatory walkthrough, the Housing Rehab Specialist (HRS) may need to amend the project’s Scope of Work. If this occurs, the HRS will issue an amended Scope of Work and release to all contractors who attended the mandatory walkthrough.

10.2.5.6 Bid proposals from contractors will be due 8 calendar days from the mandatory walkthrough.
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9 10.2.5.7 All bids from contractors must be sent via email to [email protected], or dropped off in person to 1010 10th Street, Suite 3100, Modesto CA 95354

10.2.5.8 All bids will be reviewed by a program supervisor (e.g. Housing Rehabilitation Supervisor or Senior Community Development Program Specialist) and recorded by a program specialist (e.g. Housing Financial Specialist or Housing Rehab Specialist).

10.2.5.9 The HRS will summarize the lowest responsible bid results on the “Work Specification” document

10.2.5.10 If less than three written quotes are obtained, an exception may be granted with justification documented and approved by the Purchasing Manager.

10.2.6 The applicant will be required to accept the lowest responsible bid with certain exceptions. Rejection of the low bidder without cause will result in cancellation of the project.

10.2.6.1 If on the basis of references, or the inability to start work within a reasonable timeframe, the property owner request to reject the low bidder, he/she must do so in writing. Upon confirmation of the reason for rejection by City staff, the low bidder will be rejected, and the next lowest bidder will be considered.

10.2.7 Upon selection of lowest responsible bidder, the HRS will prepare the respective documents for contractor, homeowner signatures, and City signatures (e.g. Housing Rehabilitation Contract and Grant/Loan Documents).

10.2.8 Once contracts are executed, City Staff will record loan documents with the Stanislaus County Recorder’s Office.

10.2.9 Upon receipt of recorded documents, the Housing Rehabilitation Supervisor will:

10.2.9.1 Issue a Notice to Proceed to the contractor. The contractor will have seven (7) calendar days to begin work from the date of issuance.

10.2.9.2 Route contracts for encumbrance the City’s financial system.

10.2.10 Upon selection of lowest responsible bidder, the HRS will prepare the respective documents for contractor, homeowner signatures, and City signatures (e.g. Housing Rehabilitation Contract and Grant/Loan Documents).

10.2.11 Once contracts are executed, City Staff will record loan documents with the Stanislaus County Recorder’s Office.

10.2.12 Upon receipt of recorded documents, the HFS will:

10.2.12.1 Issue a Notice to Proceed to the contractor. The contractor will have seven (7) calendar days to begin work from the date of issuance.

10.2.12.2 Route contracts for encumbrance the City’s financial system.

11.0 EMERGENCY REPAIRS PROCEDURE
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10 11.1.1 Per MAXIMUM AMOUNT OF PROGRAM ASSISTANCE Section, emergency repairs of up to $5,000 may be authorized by the Director of Community and Economic Development if it poses an “extreme health and safety related emergency in line with Modesto Municipal Code 8-3.301.

11.1.2 From time to time, City of Modesto residents will contact the city with repair requests that constitute an immediate threat to their health and safety. Such cases will be treated as Emergency repairs; leaking roof (during rainy season).

11.1.3 These cases will be given priority over other non-emergency projects.

11.1.4 Upon homeowner contact with the City’s Housing Division, the HFS will conduct a pre-screening of the prospect applicant and collect pertinent emergency case facts.

11.1.5 After pre-screening, the HFS will collect the application and eligibility documentation from the homeowner; the HFS will inform the Housing Rehab Specialist immediately after collecting the pertinent facts.

11.1.6 The HFS shall determine program eligibility within three (3) business days of collecting a completed application packet.

11.1.7 Upon determining eligibility, the Housing Rehab Specialist shall communicate with the homeowner and will schedule and conduct a property inspection and determine/prepare a detailed scope of work and independent cost estimate within three (3) business days of eligibility determination, depending on the severity of the emergency.

11.1.8 Upon completion of the Emergency Repair Scope of Work, the HRS will submit an “Emergency Repair Request” packet which includes the Scope of Work and related case facts to the Housing Rehabilitation Supervisor for review and approval to proceed with procurement for the Emergency Project.

11.1.9 Upon approval by the Housing Rehabilitation Supervisor, HRS shall obtain a minimum of three (3) informal bids and shall be awarded to the lowest responsible bidder.

11.1.9.1 Bid documentation will be kept in the file record.

11.1.10 Upon contractor selection, the HRS shall prepare the Advanced Payment Agreement and all required loan documentation for homeowner, contractor, and Director of Community and Economic Development execution within three (3) business days of contractor selection. The Notice to Proceed will be issued upon contract execution by all parties. The rehabilitation contract shall specify the number of days for project completion.

11.1.10.1 A homeowner cannot enter into an Advanced Payment Agreement, unless the homeowner meets the homeowner eligibility guidelines as described in Section 4.0 – Homeowner Eligibility.

11.1.11 Routine Progress inspections shall be conducted as specified in PROGRESS INSPECTIONS Section; frequency of progress inspections may be increased as needed for emergency repairs.
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11 11.1.12 All emergency rehabilitation projects will be presented to the Housing Rehabilitation Loan Committee (HRLC) at the next available HRLC meeting for formal approval.

12.0 CONTRACTOR ELIGIBILITY

12.1 All prospective Contractors must submit or must have submitted, within the past 3 years, a Contractor Application to the City which will allow the City to collect all pertinent information to determine contractor eligibility (i.e. DUNS number, Tax ID, etc.).

12.1.1 Contractor failure to submit a Contractor Application may result in a “non-responsive” bid and disqualify the contractor from consideration.

12.2 Upon Receipt of bids from prospective contractors, the Housing Rehabilitation Specialist shall determine contractor eligibility by conducting the following:

12.2.1 Verify that the City has a Contractor Application on file for each prospective contractor;

12.2.2 If the City does not have a Contractor Application on file for the prospective contractor, the Housing Financial Specialist will make arrangements to ensure the prospective Contractor completes and submits a Contractor Application in a timely manner.

12.3 Upon confirmation that the City has a complete Contractor Application on file, the Housing Rehabilitation Specialist shall conduct the following searches for each prospective contractor:

12.3.1 Debarred/Suspended Search

12.3.1.1 It is the City of Modesto’s policy not to conduct business with contractors who are excluded/debarred from conducting business with any federal agency.

12.3.1.2 The Housing Rehabilitation Specialist shall ensure that the prospective Contractor is not excluded/debarred from conducting business with any federal agency by conducting a search on the federal System for Award Management website at www.sam.gov.

12.3.1.3 To comply with this requirement, Contractors must provide their DUNS number on the Contractor Application.

12.3.1.4 Prospective contractors who do not have a DUNS number at time of bid submittal, must request one by accessing the following website:
http://fedgov.dnb.com/webform/displayHomePage.do

12.3.1.5 Upon conducting the Sam.gov search, the Housing Rehabilitation Specialist shall print the search results and place a copy in the project file.

12.3.2 California State License Board (CSLB) Search:

12.3.2.1 It is the City of Modesto’s policy not to conduct business with Contractors who do not hold an active CSLB license.

12.3.2.2 The Housing Rehabilitation Specialist shall verify a prospective Contractor holds an active CSLB license by conducting a search on the CSLB website at
https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.as px.

12.3.2.3 The CSLB license must be appropriate for the type of rehabilitation work to be conducted (i.e. General Contractor, Electrical, Carpenter, etc.)

12.3.2.4 Upon conducting the CSLB search, the Housing Financial Specialist shall print the search results and place a copy in the project file.

12.3.3 Better Business Bureau (BBB) Search
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12 12.3.3.1 It is the City of Modesto’s policy not to conduct business with contractors who have negative letter rating score (D+ through F) with the BBB.

12.3.3.2 The Housing Financial Specialist shall verify a prospective Contractor has a positive letter rating score (A+ through C-) with the BBB.

12.3.3.3 Upon conducting the BBB search, the Housing Financial Specialist shall print the search results and place a copy in the project file.

13.0 COST REASONABLENESS AND SCOPE OF WORK:

13.1 As an ARPA recipient, the City of Modesto is held accountable for all funds, property and assets of the ARPA program. The City of Modesto must maintain a financial accounting system for grants that meets the ARPA/CDBG regulations. This includes requirements pertaining to financial management systems and records, allowable costs and audits.

13.1.1 The City of Modesto is required to ensure that CDBG funds are spent only on reasonable and necessary costs associated with approved grant activities and must have a procedure for determining the reasonableness, allowability and allocability of costs.

13.1.1.1 For all assisted projects, the procedure for determining reasonableness will include the preparation of a detailed scope of work and an independent cost estimate.

13.1.1.1.1 A detailed Scope of Work will identify project milestones, reports, deliverables, and end products that are expected to be provided by the performing party. The Scope of Work will also include a timeline for all deliverables.

13.1.1.1.2 An independent cost estimate will be established utilizing local market data and published cost guidelines.

13.1.1.1.3 The project manager and supervisor will work with the appropriate parties to develop the independent cost estimate to ensure the cost estimate is reasonable based on local market data.

13.2 To comply with cost reasonableness requirements, the City of Modesto will review all requests for payments to ensure that costs are allowable under regulations, approved in the CDBG grant application, allocated to the correct program activity and are reasonable.

13.3 A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.

13.3.1 In determining reasonableness of a given cost, consideration shall be given to whether the cost is of a type generally recognized as ordinary and necessary to address the housing condition being considered for repair.

13.3.2 A cost analysis of the scope of work items shall be made and documented in the project file. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability, and allowability.

13.3.3 Cost analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts.

13.3.4 All change orders may be subject to a cost reasonableness evaluation by the project manager and approval by the HUD Supervisor, or their designee.

13.4 Cost reasonableness shall be determined by comparing the bids received with the cost estimate prepared by the Housing Rehabilitation Specialist.
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13 13.5 Bids received must be within 15% of the Housing Rehabilitation Specialist’s cost estimate.

13.6 An explanation must be provided to the HRLC for any bid selected that exceeds 15% of the estimate.

13.7 Comparable estimates may also be considered, when optimal, for utilization of subcontractors instead of general contractors for work to be performed.

13.8 The Housing Rehabilitation Specialist will work to manage rehabilitation costs through the most efficient and economically feasible project contracting model.

14.0 ENVIRONMENTAL REVIEW:

14.1 All assisted properties shall be subject to environmental review as required by the funding source(s). No funds shall be committed and/or released until all environmental reviews have been conducted to the satisfaction of City of Modesto. .

15.0 HOUSING REHABILITATION LOAN COMMITTEE (HRLC) APPROVAL:

15.1 All Housing Rehabilitation Program activities shall be subject to majority vote approval by the City of Modesto Housing Rehabilitation Loan Committee (HRLC). The HRLC shall be comprised of the following voting members (all terms are four (4) years in length):

15.1.1 One Councilmember (appointed by the Mayor)

15.1.2 One financial institution representative.

15.1.3 One service provider representative.

15.1.4 One general contractor (active or retired).

15.1.5 One Housing Authority of the County of Stanislaus (HACS) representative.

15.1.6 One Citizen-at-Large.

15.1.7 One Citizen’s Housing and Community Development Committee Representative.

15.2 The City of Modesto Community Development Manager may appoint a substitute voting member using alternative criteria if existing circumstances do not allow for a Committee make-up as specified above and time constraints warrant a substitution.

15.3 All actions of the HRLC shall be reflected in meeting minutes to be prepared by staff of the City of Modesto Community Development Division.

16.0 WRITTEN AGREEMENTS:

16.1 A written agreement must be entered into between the City and all homeowners receiving assistance under this program. The written agreement forms the basis for the contractual obligation between the parties to fund and implement the activity or program. The written agreement will identify responsibilities attributable to each party, and shall outline in exact measure the scope of services to be provided, methods of accountability, and a schedule for payment.

17.0 PROJECT CONTINGENCIES

17.1 All rehabilitation activities approved by the HRLC shall be contingent on meeting the following requirements:

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14 17.1.2 Construction Schedule mutually agreed to by the Homeowner, Contractor, and Housing Rehabilitation Specialist;

17.1.3 On-site monitoring and inspections by the Housing Rehabilitation Specialist to verify scope of work, materials, and construction schedule conform to contract requirements;

17.1.4 Written final inspection and approval documentation by the Housing Rehabilitation Specialist;

17.1.5 Recorded Notice of Completion, signed by the homeowner, following final inspection and approval by the Housing Rehabilitation Specialist;
.

17.2 Written change orders, subject to the criteria listed below, shall be required for any changes in the work write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items:

17.2.1 Contractor must notify Housing Rehabilitation Specialist and homeowner if Contractor deems a change order for work is necessary; Contractor’s Change Order request shall be submitted in writing and list the change order items with dollar value for each change;

17.2.2 Housing Rehabilitation Specialist shall review and determine if Change Order requests and costs are reasonable and work with Contractor to modify Change Order items if necessary;

17.2.3 Upon reviewing and approving Change Order requests, Housing Rehabilitation Specialist must prepare a City of Modesto Change Order Request Approval form and submit to Housing Rehabilitation Supervisor for final approval signature;

17.2.4 Upon final approval by the Housing Rehabilitation Supervisor, Change Order shall be signed by Homeowner and Contractor;

17.2.5 The combined total of all approved Change Orders shall not exceed the approved financing and contingences;

17.2.6 Homeowners cannot request (non-health and safety) change orders in excess of the approved financing (not including contingency), unless HRLC approves the use of additional funds (Attachment A).

17.3 The homeowner shall maintain Homeowner’s insurance on the property for the duration of the program loan(s). This insurance must be adequate to cover all encumbrances on the property.

The insurer must identify City of Modesto as Additional Insured for the amount of the program loans. A copy of the homeowner’s insurance policy shall be provided to City of Modesto annually.

17.4 Homes located within a 100-year flood zone will be considered on a case-by-case basis. If approved for assistance, the Borrower is required to maintain flood insurance during the term of the assistance and in an amount adequate to secure the program loan and all other encumbrances.

The insurer must identify City of Modesto as Loss Payee for the amount of the program loans. A copy of the homeowner’s flood insurance policy shall be provided to City of Modesto annually.

18.0 CONTRACTOR LIST

18.1 The Housing Rehabilitation Specialist shall maintain a Contractor List that includes contractors that have participated in the Homeowner Rehabilitation Program. These contractors must have been vetted through the City’s Contractor Eligibility Process as outlined in CONTRACOR ELIGIBILITY SECTION. The list shall contain the names, addresses, license numbers, CSLB license expiration dates, DUNS Number, insurance information, and business license numbers, expiration dates, insurance information, and business license information for contractors who have been formally approved for participation in the housing rehabilitation programs. #30..
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15 18.1.1 Information on the Contractors List will be updated on an annual basis, or more frequently, if deemed necessary.

18.1.2 The Contractors List will be available to the public, upon request. If the public requests a copy of the Contractors List, a disclaimer must appear on the top of the list as referenced in the desk manual.

18.2 Any person, partnership, or corporation with a current California General Contractor’s License is eligible to have bids considered on a housing rehabilitation project.

18.2.1 In accordance with City policies, the City shall encourage qualified contractor participation to ensure that enough bids are received for a successful and adequate solicitation. Staff shall engage in continuous contractor outreach and engagement in order to provide for the maximum open and free competition that will not preclude other potential bidders from qualifying during the bid solicitation period.

19.0 CONTRACTOR DISQUALIFICATION/REMOVAL FROM CONTRACTOR LIST

20.1 Contractor failure to comply with program requirements and/or local, state, and federal laws may be grounds for disqualification from participation in this program.

19.1.1.1 Breach of the terms of a program contract by a willful or material failure to perform in accordance with the terms thereof.

19.1.1.2 Substandard performance on any public contract, including, without limitation:

19.1.1.2.1 A material breach thereof;

19.1.1.2.1.1 A failure to complete work required thereunder in a timely manner or within the contract price when such failure is attributable to the negligent or wrongful actions or inactions of such contractor or such contractor’s subcontractors or suppliers;

19.1.1.2.2 Substandard quality of work; or

19.1.1.2.2.1 Any negligent or wrongful failure to cooperate with the contracting agency during performance of the public contract.

19.1.2 Any other grounds that the Community Development Manager determines would impair the ability of the Contractor to perform a public contract or any part thereof.

19.1.3 In any case, the Community Development Manager may have the discretion to consider the facts and circumstances of a violation, and may impose a different disqualification period and/or condition(s) to satisfy the cure of the violation and allow participation in future bid processes.

19.2 Written Complaint Procedure:

19.2.1 In the case a written complaint is submitted to staff regarding a contractor who is on the contractor list; the contractor will be notified in writing of the complaint.

19.2.2 Housing Rehabilitation Supervisor and staff will make reasonable efforts to resolve the complaint;

19.2.3 Written complaint will be kept on file for the duration of the time the contractor remains on the contractor list and will be available as part of public record.

19.3 Scope of Disqualification: Disqualification of a contractor under this Section constitutes disqualification of that Contractor from submitting bids or proposals to the City for the purpose of entering into or in any manner participating in any City contract, or any part thereof, and shall apply to all individuals, divisions, subsidiaries, affiliates and parent corporations of that #30..
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16 Contractor unless the decision to qualify is limited by its terms to one or more specifically identified individuals, divisions, subsidiaries, affiliates, parents or other organizational elements.

19.4 Disqualification Procedures: The following procedures will be taken by the City when disqualifying a Contractor from program participation:

19.4.1 City will send a written notice to the Contractor informing him/her that a disqualification is being considered;

19.4.2 The written notice will include the grounds for the proposed disqualification including the specific conduct or action(s) upon which the proposed disqualification is based;

19.4.3 The written notice will include the intended period of disqualification.

19.5 Hearing Request:

19.5.1 A Hearing Officer will be appointed by the Director of Community & Economic Development

19.5.2 Within fifteen (15) calendar days after mailing of the notice of the proposed disqualification, the Contractor may submit a written request for a hearing on the proposed disqualification.

19.5.2.1 Such written request shall specify the name and address of the person to which all subsequent notices and communications should be mailed.

19.5.2.2 Failure of the Contractor to submit a written request for a hearing within the time provided by this subsection, or failure of Contractor to appear at the requested hearing, shall be deemed to be a waiver by Contractor of Contractor’s right to request a hearing on the proposed disqualification and the Hearing Officer’s decision shall be final.

19.5.3 The hearing will be held within thirty 30 days of the request and the Hearing Officer’s decision shall be final.

20.0 PROGRESS INSPECTIONS

20.1 The Housing Rehabilitation Specialist shall conduct routine progress inspections on all housing rehabilitation projects to verify the Contractor is adhering to the agreed upon Contract Schedule.

20.1.1 Routine progress inspections shall mean onsite inspections once weekly, unless project timelines call for more frequent inspections.

20.2 The Housing Rehabilitation Specialist shall track each progress inspection by completing a Progress Inspection Report, documenting the results and date of the inspection, and place the completed Progress Inspection Report in the project file.

20.3 If applicable, the Housing Rehabilitation Specialist shall include the reasons for any project delays within the Progress Inspection Report and describe a revised project schedule agreed upon by the Contractor, Homeowner, and Housing Rehabilitation Specialist.

20.4 Revised project schedules shall be signed by the Contractor, Homeowner and Housing Rehabilitation Specialist.

20.5 Further unjustified project delays by the Contractor resulting in non-compliance with the agreed upon project schedule shall result in a credit to the Homeowner until the project has been substantially completed or terminated as defined within the section entitled “Time is of the Essence in the Performance of this Agreement” in the Rehabilitation Program Contract. #30..
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17 20.6 Contractor progress payment requests shall reflect the percentage of the project completed through the time period for which payment is requested. The project completion percentage shall be indicated on the internal payment request form.

21.0 CONTRACTOR COMPENSATION

21.1 Contractor progress payments shall be subject to Housing Rehabilitation Specialist verification, acknowledgement and certification that the work being invoiced for is reflective of the work verified through the Housing Rehabilitation Specialist’s progress inspection(s) and through the time period indicated on the payment request.

21.1.1 All contractor progress payments must be accompanied by the “Invoice Checklist” including all required items listed on the invoice checklist for an invoice to be processed by the City’s Finance Department.

21.1.2 Progress payment to contractors will occur only after the Housing Rehabilitation Specialist has verified that the work for which reimbursement is being issued, has been completed.

21.1.2.1 Verification of work completion will take place by conducting onsite progress inspections and including an inspection report reflecting a “pass”.

21.2 Contractor payment requests will only be processed if signed by the Contractor, Homeowner, Housing Rehabilitation Specialist, and Housing Rehabilitation Specialist Supervisor. Invoices must be detailed enough to determine payment eligibility, along with accompanying documentation. All efforts will be made to reimburse qualified invoices within a 30-day time frame.

21.3 If the Homeowner is not satisfied with the completed work, or the Contractor has not completed the work in accordance with the Rehabilitation Program Contract, Community Development Division staff will meet with the Homeowner and Contractor to resolve the dispute.

21.4 If such informal resolution is unsuccessful, the Homeowner and the Contractor must follow the arbitration steps and tribunal procedures as outlined in the Rehabilitation Program Contract.

22.0 MONITORING

22.1 The Housing Rehabilitation Staff will mail out annual self-re-certification forms throughout the duration of the affordability term to verify the units remain owner occupied.

22.1.1 Participants will be sent two requests to return re-certification documentation prior to triggering repayment of grant/loan;

22.1.1.1 A pay-off demand will be sent out for any non-compliance.

23.0 LEAD BASED PAINT OPERATING PROCEDURES FOR UNITS BUILT PRIOR TO 1978

23.1 All program applicants shall receive notification of Lead-Based Painting hazards as follows:

23.1.1 The City will provide a Lead Hazard Information Pamphlet “Protect Your Family from Lead in Your Home” to all program applicants.

23.2 Homeowner Rehabilitation Federal Assistance Up to $5,000:

23.2.1 Lead Based Paint Presumption: Paint testing will not be conducted for housing rehabilitation projects not exceeding $5,000. The City will presume the presence of lead-based paint for all housing projects assisted with an amount not exceeding #30..
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18 $5,000. If the rehabilitation project will disturb painted surfaces all lead based paint mitigation activities, other than the actual testing.

23.2.2 If the housing unit is built prior to 1978, the homeowner will be provided a “Notice that Lead-Based Paint or Lead Based Paint Hazards Are Presumed to be Present” to occupants within 5 business days of making such presumption.

23.2.3 Visual Inspection: A visual inspection shall be made by the Rehabilitation Specialist or other staff assigned to make the inspection, to determine if the project will disturb any painted areas. If the project will not disturb any painted areas, the case file shall be so documented and the property owner or tenant advised in writing. No additional compliance steps with lead-based paint regulations are required.

23.2.4 Repair Work: If the project will disturb paint, then the City will require the rehabilitation contractor to be certified as a lead-based paint abatement supervisor or as a certified lead safe worker; or the rehabilitation contractor will secure a certified lead base paint abatement supervisor to monitor safe work practices in those areas where painted surfaces will be disturbed by the rehabilitation work. Safety precautions for occupant protection ((§35.1345), work site preparation and cleanup activities and prohibited methods of removal (§35.140) of lead base paint materials must be followed.

23.2.5 Notice of Completion and Notice of Clearance: A clearance examination of the work site (the area in which the rehabilitation construction was performed) is the responsibility of the rehabilitation contractor and must be performed by a certified leadbased paint inspector/assessor. Once work is completed, the City will provide the owner a report entitled “Summary Notice of Completion Lead Base Paint Hazard Reduction Activity” within fifteen (15) days of the completion date (the date on which clearance is achieved). A copy shall be placed in the project file as documentation.

23.3 Homeowner Rehabilitation Federal Assistance $5,001-$25,000

23.3.1 Information Pamphlet: The City shall provide the pamphlet “Protect Your Family from Lead in Your Home” to the applicant.

23.3.2 Paint Testing or Presumption: For projects of this funding level ($5,001-$25,000), presumption of the presence of lead base paint shall be made.

23.3.3 Noticing: The City shall provide the occupants with a “Summary Notice of Lead Based Paint Inspection” after such inspection is made by a certified lead base paint inspector/assessor in accordance with §35.1320(a).

23.3.4 Risk Assessment: The City shall order test samples of those painted surfaces to be disturbed by the rehabilitation construction or, upon visual inspection by the rehabilitation specialist, on any painted surfaces that are deteriorated. If lead is found in the test samples, a risk assessment shall be ordered by the City and conducted by a certified lead inspector/assessor in accordance with §35.1320(b) before rehabilitation construction begins. The lead base paint inspector/assessor will provide a copy of the results to the City who will notify the owners of the property with the “Summary Notice of Lead-Based Risk Assessment.”
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19 23.3.5 Interim Controls: If the risk assessment indicates the presence of lead base paint then lead hazard mitigation activities, including paint standards, interim controls and paint stabilization must be performed on all identified lead paint hazards in accordance with §35.1330. Safety precautions for occupant protection (§35.1345), work site preparation and cleanup activities and prohibited methods of removal (§35.140) of lead base paint materials must be followed.

23.3.5.1 A person performing paint standards, interim controls or stabilization must be trained in accordance with 29 CFR 1926.59 and be a certified lead base paint safe worker or certified lead base paint abatement supervisor.

23.3.6 Relocation: As stated in section §35.1345, temporary relocation is required unless: (1) the work will not disturb lead based paint or lead based paint hazards; (2) only exterior work is being conducted and openings to the interior are closed during the work and lead-hazard-free entry to the dwelling is provided; (3) the interior work will be completed in 8 hours, the work sites are contained to prevent dust release into other areas, and no other health or safety hazards are created; or (4) interior work will be completed in 5 consecutive days, work sites are contained, no other health or safety hazards are created, work sites and areas 10 feet from the containment are cleaned at the end of each work day, and occupants have safe access to sleeping, kitchen and bathroom facilities.

23.3.7 Clearance: Clearance shall be the responsibility of the rehabilitation contractor who will order the clearance inspection from a certified lead base paint inspector/assessor and in accordance with §35.1340(b).

23.3.8 Notice of Completion and Notice of Clearance: Once work is completed and after a clearance examination of the work site is performed by a certified lead paint inspector/assessor, a copy shall be placed in the project file as documentation. The City will provide a “Summary Notice of Completion of Lead Based Paint Hazard Reduction Activity” to the owner within 5 business days from project completion date.

23.3.9 controls; however, a certified supervisor and workers will perform all abatement.

24.0 LOAN MODIFICATIONS

24.1 Loan Modification requests may be considered by the City of Modesto only under the following circumstances:

24.1.1 For projects claiming contractor work to be substandard, project completion must have been within the past 5 years;

24.1.2 If making payments on City Loan and Borrower is facing a financial hardship, modification may be considered to prevent borrower from defaulting on primary or City loan which may trigger foreclosure

24.2 The following information will be collected from the borrower to consider a modification:

24.2.1 Financial hardship documentation, if applicable

24.2.2 Borrower must meet current program requirements

24.2.2.1 Income eligibility guidelines (income must not exceed 140% of the Area Median Income);

24.2.2.2 Front and Back End debt to income requirements

24.2.3 Record of any payments made toward the loan

24.2.4 Letter from the borrower which outlines concerns and reason for modification #30..
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20 24.3 If Staff determines the borrower meets the requirements for a loan modification, the request will be presented to the Homeowner Rehabilitation Loan Committee for consideration.
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Blight Abatement Strategy
City of Modesto
2020-2025 Blight Abatement Strategy
December 10, 2019
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EXECUTIVE SUMMARY..........................................................................................................................................................4 INTRODUCTION ....................................................................................................................................................................7 Purpose ............................................................................................................................................................................7 Blight Defined...................................................................................................................................................................7 Background ......................................................................................................................................................................7 Effects on the Community................................................................................................................................................9 “Keep America Beautiful” Affiliation..............................................................................................................................10 Importance and Benefits of Collaboration.....................................................................................................................11 Blight Abatement Advisory Committee .........................................................................................................................12 SCOPE: Understanding the Scope of Blight ........................................................................................................................13 Blight Behaviors – Broken Window Theory....................................................................................................................16 BLIGHT CONTROL PROGRAMS............................................................................................................................................17 Partnerships...................................................................................................................................................................17 Downtown Modesto Partnership (DOMO)................................................................................................................17 Downtown Streets Team (DST)..................................................................................................................................18 Operation Clean Sweep (CalTrans) ............................................................................................................................18 Operation 9-2-99 River Clean Up (TRRP) ...................................................................................................................19 Love Modesto ................................................................................................................................................................19 Dry Creek Trail Coalition ................................................................................................................................................19 Neighborhood Environmental Action Team (NEAT) ......................................................................................................20 Solid Waste Services ......................................................................................................................................................21 Program Types (Commercial, Residential).................................................................................................................21 Weekly Pickup............................................................................................................................................................21 Bulky Item Pickup ......................................................................................................................................................22 Tire Program ..............................................................................................................................................................22 Solid Waste Code Enforcement.................................................................................................................................22 Street Sweeping Program ..............................................................................................................................................23 Green Waste ..............................................................................................................................................................24 Garbage Rate Descriptions ........................................................................................................................................26 Rate Review Process..................................................................................................................................................26

TABLE OF CONTENTS
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Illegal Dumping Abatement.......................................................................................................................................27 Abatement Team .......................................................................................................................................................29 Illegal Dumping on Private Property ..............................................................................................................................30 Fine Evaluation...............................................................................................................................................................31 Abandoned Shopping Carts............................................................................................................................................32 Tagging ...........................................................................................................................................................................33 Blighted Properties ........................................................................................................................................................38 Yard Trash Piles, Inoperable Vehicles, Landscaping – Weeds, Trees, Lawns.............................................................38 Opportunities for Enhancement of Existing Programs.......................................................................................................47 Bulky Item Pick Up .........................................................................................................................................................47 Neighborhood Environmental Action Team (NEAT) ......................................................................................................47 Illegal Dumping Abatement (public right of ways).........................................................................................................48 Neighborhood Preservation (private property) .............................................................................................................48 Shopping Cart Abatement..............................................................................................................................................49 Prevention and Enforcement Efforts .............................................................................................................................49 Public Education.............................................................................................................................................................50 MOVING FORWARD............................................................................................................................................................50 Action Steps ...................................................................................................................................................................50 Public Property ..........................................................................................................................................................50 Private Property.........................................................................................................................................................50 Public and Private Property .......................................................................................................................................51 Implementation Schedule..............................................................................................................................................52 Short Term.................................................................................................................................................................52 Intermediate Term.....................................................................................................................................................53 REFERENCES .......................................................................................................................................................................54 Case Studies...................................................................................................................................................................54 City of Oakland...........................................................................................................................................................54 City of San Jose ..........................................................................................................................................................55 Contra Costa County..................................................................................................................................................56 Kern County ...............................................................................................................................................................56 City of Fort Worth, Texas...........................................................................................................................................57 City of Austin, Texas...................................................................................................................................................57 Funding Scenario for Program Expansion..................................................................................................................57 #30..
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Cost and Funding of Existing Programs ..............................................................................................................................58 MAXIMUM CHARGES FOR GARBAGE SERVICE - JULY 1, 2019............................................................................................61

EXECUTIVE SUMMARY
As identified in the 2019 citywide community survey, one of the most pressing concerns that residents have with the City of Modesto is blight. Blight encompasses abandoned vehicles, unmaintained property, tagging, litter, and illegal dumping. Data that the city has collected shows steady increases in reports of each of these issues. Cases of abandoned vehicles have increased by 43% in 2 years; cases of illegal dumping have averaged over 2,500 across the last 4 years; and lastly, between January and June 2019, code enforcement cases pertaining to private property have exceeded the total amounts for the last 5 years.

In previous years, the city developed programs and initiatives to tackle blight that were effective but struggled to stay solvent through reductions in resources. In response to these growing concerns and in light of previous initiatives, staff met with community members, past partners, interviewed other partner agencies such as the County of Stanislaus, and other departments within the City of Modesto. During the interviews of City departments, it was determined that there are initiatives throughout the organization that are isolated. Each of them is focused on abating blight activities and issues; however, there has been little opportunity to coordinate efforts to explore more efficient and effective methods that can often complement initiatives.

Following these interviews, staff began collecting and analyzing the data related to all existing programs and initiatives with the goal of evaluating current systems, exploring efficiencies, improving collaboration, and informing opportunities for enhancements or improvements to create this Blight Abatement Strategy (Strategy). Additionally, to ensure that the recommendations put forward are sustainable, staff has included three key components to this Strategy:
• The creation of a blight abatement advisory committee comprised of public and private stakeholders that will make recommendations to the City regarding program improvements, potential funding opportunities, and support with increasing volunteerism • Quarterly updates to the Safety and Communities Committee regarding the progress that staff has made on the Blight Abatement Strategy
• The development of a consistent promotional and educational campaign that includes strategic communication with residents and business owners
Goals

1. Reduce length of time to abate illegal dumping

2. Increase efficiency of processes and resources

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4. Increase public/private participation through volunteer efforts and advisory committee

5. Improve enforcement to ensure long-term compliance

6. Increase public awareness through communication and education to benefit prevention efforts Strategies
Through interagency collaboration and coordination across departments, this Strategy includes all programs related to blight and has prepared the following action steps as short, intermediate and long-term initiatives as identified in the implementation action plan. The action steps are categorized based on the type of property that they will affect, such as:

Public Property
• Increase and enhance the digital detection and prevention methods through the use of video surveillance cameras
• Adjust budget to designate fees and fines to abatement of trash and illegal dumping • Work with haulers to evaluate methods of increased expediency of pickup through a fiscally sustainable program
• Research, evaluate, and consider Smart City technologies to provide more efficient and sustainable blight abatement activities while collecting data to guide future program initiatives Private Property
• Evaluate code enforcement program efficiencies related to noticing (14 days) and inspection • Train and empower City inter-departmental employees in code inspections • Enhance vacant commercial and residential property monitoring ordinance through registration and fee collection
• Initiate rental housing safety program which includes debris and overgrown vegetation enforcement
• Implement new permitting software system to automate the citation process and free up code enforcement officer time to increase productivity
Public and Private Property
• Conduct training in City departments regarding the processes to mitigate blight through the use of the GoModesto! Application
• Implement Key Performance Indicator (KPI) reporting that reflect program effectiveness • Council Resolution proclaiming a month that supports blight abatement • Conduct a fiscal and fee study (residential and commercial) to seek solutions to support a sustainable blight abatement program: illegal dumping fees, bulky item pickups, enforcement/fines, donations, in-kind contributions from volunteers, and others • Quarterly progress updates to the Safety and Communities Committee from staff • Creation of the Beautify Modesto Committee comprised of public and private partners • Affiliation with the “Keep America Beautiful” non-profit organization for training and education materials
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The Blight Abatement Strategy does not have a fiscal impact. However, the strategy will guide staff to bring forth these action steps for approval which will include material fiscal impacts. The Strategy will be a living, breathing document that will be reviewed and updated on a biannual basis and presented to Council for adoption of a new five-year period. The intent of the review/update is to reflect advances in technology, new partnerships, additional funding opportunities, and other program efficiencies or evolutions. Approval from the Modesto City Council of this Strategy will provide strategic direction to staff, inform the community, improve existing programs, and help beautify neighborhoods. #30..
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INTRODUCTION
Purpose
The purpose of the 2020-2025 Blight Abatement Strategy is designed to evaluate the current City programs to mitigate blight, identify immediate opportunities for efficiency and improvement, determine potential partnerships while strengthening others, and create an initiative that is practical and fiscally sustainable. This is an important opportunity to gather and examine meaningful data, identify trends, and evaluate future opportunities to leverage technology and help eliminate blight throughout Modesto. For purposes of this strategy litter shall be defined as trash, debris, and other items that have been discarded improperly – along roadsides, waterways, and other areas that are uncontained. Illegal dumping shall be defined as garbage piles on public or private property, which is considered to be an extreme litter or violation of a litter-related crime.

Litter and illegal dumping both contribute to the overall definition of blight, and they are a complex social phenomenon with different meanings based on the effects of larger social dynamics such as poverty, and other social norms.

Blight Defined
Blight – Merriam-webster.com/dictionary/blight defines blight as “something that frustrates plans or hopes”, “something that impairs or destroys”, and “a deteriorated condition”.

Blighted Area – According to businessdictionary.com, blighted area is defined as, “An area of a city, often a large metropolitan city, in which most buildings are abandoned or in severe disrepair”.

Blight Abatement – Codepublishing.com defines blight abatement as “any condition of property blight which is reasonably believed to be imminently dangerous to the life, limb, health or safety of the occupants of the property or the public may be summarily be abated by the city administrator”.

Illegal dumping – calrecycle.ca.gov defines illegal dumping as “the act of disposing solid waste at a location that is not a permitted solid waste disposal facility and is done for economic gain. Illegal dumping sites that are not abated often grow in size and can then become illegal disposal sites”.

Littering – definitions.uslegal.com defines littering as “knowingly depositing in any manner litter on any public or private property or in any public or private waters, without permission to do so. Litter is trash improperly placed so as to be a nuisance or health concern”.

Background
In 2001, the City of Modesto embarked on a campaign to reduce litter and improve the image of our community. This campaign was initiated by community advocates such as Pete Bakker, Chris Murphy, and the Modesto Garden Club. The proposal was for a partnership between the City and the Anti-litter Committee which was comprised of members of the community, hauling companies and other public agencies. #30..
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The bulk of the City’s image enhancement efforts were accomplished largely through private donations of funds, material and labor. The primary means of channeling the volunteerism was through a program called the Neighborhood Environmental Action Team (NEAT). This program was first established in 1994 and at one time had formed 22 active teams representing schools, businesses, professional organizations, and community members. These action teams helped beautify the community by adopting “NEAT Zones”. These initial zones were supported solely by volunteers.

In 2003, the Modesto City Council approved the “Don’t Trash Modesto” campaign and approved the adoption of zones throughout the City that would allow community members to attract sponsorships to support the efforts. Further, Council approved tiered sponsorships that would allow signage and payments collected to support outsourcing the trash abatement to a service provider. The following is the tiered amounts that were approved by Council:

NEAT Zone Monthly Fee
Adopt a Right of Way $100/Mile of litter
removal
Adopt a Trail $15/Mile of litter removal
Adopt a Park Negotiated by park and
activity
Adopt a Planter $.40 per square foot,
landscape maintenance contract
These fees were based upon the contract costs at that time which reflected the actual cost to perform the services. With regard to litter removal, the fees offset the costs associated with the Honor Farm Deputy and inmates that performed the litter removal.

Over the years, this program suffered cutbacks due to fiscal challenges faced by the City. Because of this the program has faded. While the NEAT program still exists on the City’s website1, participation is nearly non-existent. The program consists of the following opportunities:

1 Neighborhood Environmental Action Team (N.E.A.T.) - https://www.modestogov.com/545/NeighborhoodEnvironmental-Action-Team-N #30..
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Litter Removal – “You or your group can remove litter from an assigned N.E.A.T. area. If needed, the City will provide garbage bags to help you in your work. The debris can be placed in the garbage bags and left curbside for removal by City staff.”
Weed Abatement – “As with litter removal, you or your group will be assigned a specific N.E.A.T. area to keep free of weeds. If needed, the City will provide garbage bags to help get the work done. The gathered weeds can be placed in the garbage bags and left curbside for pickup by City staff.” Horticultural Maintenance – “After training by City staff, horticultural volunteers prune and plant shrubbery in an assigned N.E.A.T. area. Pruning can, as noted previously, be placed in the garbage bags provided by the City and left for City pickup.”
Tagging Removal – “Tagging volunteers keep their N.E.A.T. area free of tagging by painting over it or removing it with special paint removers. Usually, entire walls are painted to eliminate the "patchwork" look. If needed, the City will provide paint and paint supplies, such as brushes and rollers. Tagging should be removed within ten days of notification.”
Signs that represent adopted neighborhoods and communities still exist today; however, the participation is low and no funds are collected. Furthermore, none of the adopted areas have any maintenance provided other than the City’s required maintenance of trees and public spaces.

During the downturn of the economy in the mid-2000s, the “Don’t Trash Modesto” efforts suffered due to a reduction in City resources. Additionally, private property blight increased resulting from the high number of properties going into foreclosure. Properties were being abandoned; therefore, the properties were no longer being maintained.

Effects on the Community
With the prior program being inactive, there has been a reduction in community partnerships to keep our neighborhoods clean of blight. Portions of the City suffer greatly due to a rising disregard of public and private spaces by individuals that feel free to illegally dump a variety of trash and large items such as mattresses, appliances, tires, green waste, vehicles, machine parts, and much more.

Until recently, the consequence for illegal dumping in a public right-of-way in the City of Modesto was $100 per occurrence. Enforcement of this activity can be extremely challenging, especially if fines for dumping (if caught) are lower than the costs to transport the items to a refuse facility. As of September 2019, the fines have been adjusted to $1,000 for the 1st offense, $1,500 for the 2nd offense, and $2,000 for every offense after that. There is a significant amount of effort that goes into investigating a report of illegal dumping, and this new fine structure is expected to deter future offenders the City spreads awareness. In addition to illegal #30..
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dumping, the fines also apply to any green waste that is blown or dumped into public right-of-ways by landscaping companies or others.

Illegal encampments, tagging, broken windows, unmaintained properties, abandoned shopping carts, inoperable vehicles, and overgrown yards and properties, all contribute to a feeling of a lack of pride in our community. During the Strategic Planning sessions and the community survey conducted in 2019, a major theme was an immense dissatisfaction of blight throughout the city. The amount of responsibility is too large for one agency, community, or person to do alone. Therefore, it is essential that the public-private partnerships be reinstated. In the past, the program tapered off slowly until it was no more. In order to ensure a program is sustainable, there needs to be a champion and a continued sense of ownership in abating blight in our city.
“Keep America Beautiful” Affiliation
The Blight Abatement Strategic Plan will address immediate, short-term, and long-term strategies to beautify the City of Modesto. Additionally, the City of Modesto team will leverage programs from organizations such as “Keep America Beautiful” (KAB). This program aims to end littering, improve recycling, and beautifying communities. According to the Keep America Beautiful website2:
“A leading non-profit, Keep America Beautiful inspires and educates people to take action every day to improve and beautify their community environment. We envision a country in which every community is clean, green, and a beautiful place to live.”
Additionally, City staff is actively researching affiliation opportunities with organizations such as KAB. The KAB non-profit organization values the partnerships throughout the nation and communities which multiplies the impact of coordinated actions. KAB states the following regarding partnerships3:
“Through our programs and public-private partnerships, we help to strengthen communities.

Keep America Beautiful works with corporations, government and civic entities, educational institutions, nonprofits and other organizations to address complex challenges on both a local and national scale. Our partners contribute more than financial support — they contribute ideas, in-kind support, and the time and power of volunteers — all to help us empower stronger communities. Each and every day, Keep America Beautiful helps turn public spaces into beautiful places, helping to drive positive social, environmental and economic change. By working together, we can be successful in improving our communities.”

2 Keep America Beautiful, About Us - https://www.kab.org/about-us 3 Keep America Beautiful, How to become an affiliate - https://www.kab.org/sites/default/files/programresources/How_to_Become_an_Affiliate_4-8-19.pdf #30..
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Furthermore, KAB encourages affiliation with their organization. Affiliation provides the following:
• National Credibility
• Powerful National Network of Peers
• Training Opportunities
• Tools, Resources & Programs
• Community Impact Grants
• Self-Determination
Affiliation with the KAB program is reasonably priced at $4,000 to implement and $385 annually thereafter.

According to the KAB website, the program provides the following:
• Training materials, including educational training books and resource materials; step-by-step instructions on developing your local organization; and other resources to assist in initial affiliate development • Travel expenses for the Keep America Beautiful Trainer to visit your community as well as ongoing mentoring and support by the Trainer throughout the process. Our trainer(s) will visit your community twice, to include returning for Affiliation Ceremony after completion of Affiliate Report • Attending affiliate planning and goal-setting session to develop an action plan for the first year for the new Affiliate Executive Director and Board. This training will be conducted in conjunction with the Affiliation Ceremony (after Team has submitted a complete Affiliate Report) • The first year’s annual affiliate service fee.

Importance and Benefits of Collaboration
As intended in 1994, the N.E.A.T. program sought to tackle the abatement of blight through strategic partnerships throughout the community. The formation of the 22 teams was intended to address the larger problem in a sustainable way, and it was in effect for 10 years. During the past 15 years, there has been turnover in the community and at the government agencies that worked together at that time to keep our community clean and free of blight.

In 2019, staff met with community members, past partners, interviewed other partner agencies such as the County of Stanislaus, and also other departments within the City of Modesto. During the interviews of City Departments, it was determined that there are initiatives throughout the organization that are isolated. All are focused on abating blight activities and issues; however, there has been little opportunity to coordinate efforts to explore more efficient and effective methods that can oftentimes complement initiatives.

Education and marketing program opportunities also must have a partnership with the community and other departments/public agencies. Oftentimes, a program is marketed through channels such as social media, flyers, and community meetings. However, the push is generally for a finite period of time so as to bring focus to a particular initiative. It is important to find ways to cycle through the different channels of distribution of #30..
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information and invitation to partner during different times of year, while also coordinating with other departments and public/private partners during their scheduled events through the various seasons.

Separately, programs struggle to stay solvent. By working together, programs will have an opportunity to thrive instead of survive. There were many community members who attended the Strategic Planning workshops in the individual districts who were eager to participate in beautifying their communities. It is again time to engage our community, public, and internal partners to become more efficient and coordinated to enhance our city.

Blight Abatement Advisory Committee
The NEAT program was initiated in 1994, and the program had renewed initiatives in partnership with Keep America Beautiful to breathe new life into the program in 2001 and 2003. Since that time, the program faded due to fiscal challenges and staff and partnership turnover. The greatest challenge with any program like NEAT is the program surviving these threats. In order to ensure that this newly revised program survives in the future, it will be necessary to implement formal methods of oversight and reporting.

In 2019, with the creation of the 2020-2025 Blight Abatement Strategy, there is a new effort to have interdepartmental partnerships within the City as well as revitalized public-private and public agency partnerships. It is recommended that there is a new committee formed that will advise the partnerships and initiatives. Funding challenges will always face various programs; therefore, it is necessary to constantly measure the programs for success through evaluation of key performance indicators. While it is prudent to measure quantitative data such as how many illegal dumping locations are abated per year, it is even more important to evaluate the length of time it takes to abate a site. The length of time shows how effective the processes, systems, and human resources are at keeping an area clean.

To ensure program resiliency in the future, it will be necessary to invoke a method of tracking and reporting, in addition to providing a space for collaboration and future planning. It is recommended to create an advisory committee that will evaluate the program, ensure that the strategy is performing, and to safeguard and continue the efforts to ensure that the program keeps pace with new technical opportunities in the future. If approved, the advisory committee will be called the Blight Abatement Advisory Committee (BAAC) and staffed with City of Modesto staff, public partners equally represented, and include a representation of community group partnerships. The committee will also be involved with the programs association with the Keep America Beautiful program. The committee’s first assignment will be to recommend a name and tagline for the City’s Blight Abatement initiative to the Safety and Communities Council Committee. #30..
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SCOPE: Understanding the Scope of Blight
The City of Modesto and the surrounding unincorporated areas have experienced a significant amount of blight related issues. The issues have included abandoned vehicles, illegal dumping on public and private property, unmaintained property, tagging, and other related concerns that have impaired the image and reputation of Modesto. Key blight related issues are known to have environmental and economic effects because of how it lowers real estate values, hampers tourism and compromises the image and safety of neighborhoods. Moreover, research has shown that vacant properties cost municipal governments between $5,000 and $35,000 per property, foreclosed homes can lead to an average increase of 1 percent in neighborhood crime, vacant dwellings have higher risks of fires in urban areas, and vacant unmaintained properties are proven to reduce neighborhood property values.

Staff have identified that there is a greater amount of illegal dumping and blight related concerns in areas with higher levels of poverty and there are a number of possible reasons for this, including:
• Limited disposal income to cover the cost maintaining their property or compliant disposal • No vehicle to take waste to a permitted facility
• No knowledge of free services
These reasons are not definite but they certainly contribute to the overall concern pertaining to the overall number of blight related cases across the city.
2109
2472
2951
2609
1664
2015 2016 2017 2018 Jan to Jun 2019
Illegal Dumping Cases
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The data above includes the amount of cases that the City has received on illegal dumping for the past 5 years.

Illegal dumping has ranged between 2,000 to nearly 3,000 cases on an annual basis. This year is on track to surpass all previous years based on the amount of cases that the City has received as of June 2019 reaching nearly 1,700 in 6 months. The scale of each illegal dumping case varies in size and scope but it is most frequently items such as furniture or a household appliance such as a refrigerator, washer, or dryer. Staff has identified several key hotspots throughout the city as noted on the map below. The key prevalent regions for illegal dumping include highway village in North Modesto and several key streets in South Modesto. #30..
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The data below outlines the number of abandoned vehicle cases that have been submitted via GoModesto across the past 4 years. This reporting methodology is certainly not complete because of the variety of other methods that the city offers for reporting abandoned vehicles such as the non-emergency line at the police department, and emails to staff. This method merely shows the sheer volume of cases with a heat map displaying the distribution of the issue across the city. The color blue on the map indicates the least, yellow indicates a moderate amount, and red indicates that the area is a hot spot. As shown in the map below, there are significant concentrations of abandoned vehicle reports across the city. 22 454
621 652
2016 2017 2018 2019
Abandoned Vehicle Cases
GoModesto Cases
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Blight Behaviors – Broken Window Theory
According to an article titled “A look at the psychology behind littering”4, a psychology experiment was conducted in 1969 which intended to study social behaviors associated with blight. The experiment involved the abandonment of two cars. One car was left in a “New York suburb of the Bronx, a deprived area”, and one was left in a “wealthy neighborhood in California”. The cars were identical in every way, with no visible defects, including no broken windows or deflated tires. Within a few hours, the abandoned vehicle in New York was quickly stripped of parts such as mirrors, radio, tires, etc. The car that was abandoned in California, however, remained untouched for a week. Once the researchers broke a window of the vehicle in California, the vehicle was stripped as quickly as the vehicle that was left in the Bronx.

The researchers theorized that the vehicles being vandalized or stripped were not associated with poverty, and instead, associated with “human psychology and social relations”. Furthermore, they posited that the broken window in the car in California conveyed a “sense of deterioration…as if there were no publicly acceptable laws, rules and norms. A dirty city, too, creates the image that it is suffering from neglect by people or authorities. If a glass window of a building is broken and no one repairs it, soon all the others will be broken as well.” If areas of a city appear to be neglected by “people or authorities”, more serious offenses may occur.

In the cases of blight, as discussed in this Blight Abatement Strategy, small offenses may quickly escalate creating blight issues that are difficult to control and abate.

In early September 2019, a video camera was placed on a two-lane roadway in the City of Modesto. This camera was placed to monitor illegal dumping activity as this area had experienced illegal dumping activity in the past. After weeks of not detecting any activity, the camera identified illegal dumping on September 24, 2019 at approximately 10:49A.M. A newer model pickup stopped alongside a busy road with a neighborhood on one side of the street and an agricultural field on the other. The driver of the pickup dumped tree trimmings on the side of the road and left. The next morning, on September 25 at 9:51A.M., another newer model pickup traveling in the opposite direction made a U-turn and this driver dumped a couch in the same location next to the trimmings. The driver exited the vehicle quickly, pulled the couch out of the bed and onto the ground. They then hurried to get into their vehicle and sped away. It was obvious that the second driver was aware that they were committing a crime. At 4:10P.M. on the same day, the driver of a different newer model truck spotted the pile and made a U-turn. The vehicle stopped in front of the pile, and casually removed a large item from the bed of the truck and placed it onto the existing pile. They calmly went toward the front of their vehicle, and pulled away slowly.

4 “A look at the psychology behind littering” - https://waste-management-world.com/a/a-look-at-the-psychologybehind-littering #30..
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Because of the technology, staff issued three individual administrative citations to the owners of the vehicles at the newly approved $1,000 administrative fine.

While there are likely many reasons an area can become blighted, the above example proves that an area can be clean for weeks. However, once an item is dumped alongside the roadway, other items will quickly gather creating a larger pile. If left unabated for an extended period of time, this behavior would spread to adjacent neighborhoods and could result in other blight activities such as tagging and vandalism. Therefore, it is important to abate blight quickly and swiftly to avoid “broken window” syndrome in any area of the city. This proves the value of abatement teams that can remove blight quickly and efficiently.

BLIGHT CONTROL PROGRAMS
Partnerships
Downtown Modesto Partnership (DOMO)
The mission of the Downtown Modesto Partnership is to create a vibrant community through activities and partnerships designed to improve the quantity and quality of experiences in downtown Modesto.

The work of DoMo also aims to eliminate blight in the downtown region through the use of their downtown experience engineers that are regularly picking up litter and removing tagging from the downtown region.

The City’s contribution to the Downtown Modesto Partnership includes taxes that are levied on the 17 City of Modesto properties within the community benefit district that was approved by Council in October 2014. The total for Fiscal Year 2017 was $38,399, and the total for Fiscal Year 2018 was $58,664.

The amounts are subject to change based on the tax valuation of each of the City’s properties within the community benefit district.
9/24/19 10:49 A.M9/25/19 9:51A.M. 9/25/19 4:10P.M.
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Downtown Streets Team (DST)
The Downtown Streets Team program model recruits
individuals experiencing homelessness to join DST to
work collaboratively on beautification projects
around the community. In return, the Team Members
receive a basic needs stipend while receiving case
management and employment services. The model
aims to provide meaningful daily activity, personal
and professional growth, and work experience for
Team Members. Since launching DST in February
2019, the DST has grown to 35 team members who are working Monday through Friday in three key areas, including the gateways to downtown, Briggsmore corridor, and the Modesto Outdoor Emergency Shelter (MOES). Moving forward, following the closure of MOES, staff will be redirecting the MOES team to other litter hot spots across the City.

The City’s financial contribution to the Downtown Streets Team is $100,000 annually for the duration of the three year contract for a total not-to-exceed amount of $300,000. The City’s annual allocation to the Downtown Streets Team is funded evenly by the Litter Abatement Fund for operations and Community Development Block Grants for workforce readiness.

Operation Clean Sweep (CalTrans)
The City is currently in the RFP process to procure a
contractor to support the city with litter abatement on State and City right of ways. The State right of ways include areas on Highways 99, 132, and 219 that are designated as safe for litter pick-up by California Department of
Transportation (CalTrans). In addition, the scope of work also includes litter abatement on City right of ways, as directed by City staff. The RFP is projected to open on October 15th and staff will be bringing this forward for Council consideration in mid-November to early
December.

The funding for the Operation Clean Sweep program is primarily from CalTrans for state right of ways.

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Operation 9-2-99 River Clean Up (TRRP)
Operation 9-2-99 aims to reclaim, rehabilitate, and restore the area along the Tuolumne River in Modesto from the 9th Street Bridge to Highway 99 by removing trash, tires,
shopping carts, and abandoned camps in order to return this blighted area to a public space and riparian river habitat that the community can be proud of and can safely recreate in. Moreover, the objectives of this organization include:
• To create a process whereby the resources of government agencies can be utilized by individuals, businesses, and community groups to effectively remove the debris that has accumulated along the Tuolumne River in Modesto.
• To restore both the natural habitat along the river and the Tuolumne River’s value to the community as a whole.
• To build partnerships between businesses, community groups, and government agencies to continue to protect this area from returning to its previous unacceptable state and develop much needed recreation opportunities and an Adopt-A-River Program.

Operation 9-2-99 works to achieve these objectives by organizing volunteers to conduct regular cleanups of the Tuolumne River area. The City of Modesto does not support this program financially; however, there are often instances where the city supports the group with in-kind support with materials such as bags and litter grabbers.

Love Modesto
Love Modesto leads community wide volunteerism and initiatives among neighborhoods, schools and kids.

Love Modesto started in 2007 at Big Valley Grace Community Church with two questions: 1) Why is our city on lists of the “worst cities in America”? 2) If our churches were to suddenly disappear from the Modesto area, would anyone even care or notice? Over 180,000 people have been involved … young, elderly, abled, disabled; people from a church or no church at all. Over 800,000 volunteer hours have been donated – this is over $20.5 million dollars in service (independentsector.org) that we’ve given to our communities! At these community-wide volunteer days, people engage in a variety of projects, including appreciating public servants, visiting convalescent homes, donating blood, building a house with Habitat for Humanity, and working in city parks and schools, among other opportunities. Love Modesto primarily leads a community clean up initiative along with other associated activities on April 25th on an annual basis.

Dry Creek Trail Coalition
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safeguard the Dry Creek Regional Park trails for all trail users to enjoy. The focus of the group’s projects are to clean up the creek and the surrounding riparian habitat, the group works closely their partners to ensure that the park and trails system is clean, crime free, and family friendly. While organized volunteer events are powerful and necessary, the group advises that those who enjoy partaking in the recreational activities should not pass by an opportunity to pick up a piece of debris or litter left by others; their simple catch phrase is “Don’t PASS it up, PICK it up!” This year alone, the group has reported at least 500 hours of formal organized cleanups including their event hosted during Love Modesto. The Coalition regularly gathers to host fall cleanup events starting in Monterosso Park at Scenic Dr. and Coffee Rd.

Neighborhood Environmental Action Team (NEAT)
The City of Modesto’s NEAT program is an opportunity for individuals, neighborhood associations, and businesses to help beautify the community by
adopting a park or trail. Opportunities include the
ability to remove litter, tagging, weeds, or help plant and prune areas as necessary. The City has identified
sites in public right of ways, parks, and parkettes
throughout Modesto that can be adopted by volunteers. In order to participate, the group must sign an agreement that ensures that each member of the group will adhere to the City’s safety protocol and that outlines the responsibilities of the NEAT group and the City. This agreement also includes the duration of the agreement that the NEAT group is adhering to. Throughout the last several years, engagement in this program has been minimal and has only included 5 community groups in various locations, including:
• Beyer/ Sylvan at the Lakes: (5-10 participants) Neighbors conduct trash pick-up and occasional park clean-ups.
• College Area Neighborhood Alliance: (25 participants) Neighbors actively walk through Graceada Park and pick up trash.
• Valley Caps: (9-12 participants) This group helps the city keep the Virginia Corridor Trail clean, they work weekly along the Roseburg Square section of the Virginia Corridor. • Delwood Neighborhood Alliance: (5 participants) This group provides litter abatement at Pike Park and also uses a tagging kit for tagging abatement, as necessary.

The City provides litter grabbers, garbage bags, and other materials that help support the work that the NEAT group aims to achieve. On an annual basis, the City allocates approximately $200 for additional materials for the various community groups.
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Solid Waste Services
Program Types (Commercial, Residential)
The City of Modesto Solid Waste Division contracts with two private companies, Bertolotti Disposal and Gilton Solid Waste, to provide garbage service to 57,000 residential customers, 11,000 commercial businesses and industrial pickups. Residential waste is picked up weekly in the form of a black 90 gallon solid waste container (for household trash) and a green 90 gallon organic recycling container (for yard, paper, and food waste).

Commercial waste is picked up at least once a week from 2 yard to 6 yard containers. Industrial customers rent drop boxes for construction or industrial disposals and pay per pickup.

Weekly Pickup
The City of Modesto utilizes a “two can” garbage program. The black can is for household garbage and nonorganic materials such as plastic packaging, diapers, animal waste, etc. The green can is for organic materials including yard waste, food waste, paper, and cardboard products. The garbage collection hours are from 6 am – 6 pm Monday through Friday. The City has existing contracts with two providers that provide pickup service.

The Northeast side of the City is serviced by Gilton Solid Waste Management, Inc., and the Southwest side of the City is serviced by Bertolotti Disposal. The amounts of streets serviced by each contractor are split by the following days of the week:
141 142 155 130 155
496 499
431
486 462
Monday
Tuesday
Wednesday
Thursday
Friday
Monday
Tuesday
Wednesday
Thursday
Friday
Bertolotti Gilton
Streets Serviced
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Bulky Item Pickup
Residential customers receive two annual bulky items pickups provided by their contracted hauler. The pickup must be scheduled in advance by contacting the hauler and staff will confirm what items are acceptable for pickup. Bulky Items are furniture, appliances, and mattresses; this does not include small household trash, construction debris, or materials requiring special disposal. In order to reduce scavenging and illegal dumping on bulky item piles, items should be placed out in the street no earlier than 6:00PM on the evening before the pickup appointment. Residents pay $0.50 per month per household to fund bulky item pick-up across the city.

On an annual basis, the $0.50 rate produces approximately $342,000 that is generated directly for the haulers to perform the bulky item pick up. For January through October 1, 2019, Gilton and Bertolotti have collectively received over 10,000 cases for bulky item pick-up for residents.

Tire Program
Tires reported as illegally dumped or found
in streets, alleys, and sidewalks are picked
up and properly recycled by City staff. On
average, the City picks up about 1,500 tires
per year. To deter illegal dumping of tires by
Modesto residents, the City also hosts drop
off events or provides coupons for tires to
be accepted at Bertolotti or Gilton’s transfer
stations. Through these amnesty programs,
over 5,000 tires have been properly
disposed of and recycled. All of the City’s
tire recycling programs are currently funded by grants through CalRecycle. The City collects approximately 1,500 tires on an annual basis through the waste tire clean-up grant. CalRecycle consistently awards the City of Modesto approximately $28,000 for a two-year grant cycle.

Solid Waste Code Enforcement
The most frequent code enforcement cases on public property across the last 5 years include inactive garbage accounts, illegal dumping, and organic can contamination. The data is as follows:
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Throughout, the last 5 years, the data shows significant variation between the case types for the following reasons:

Inactive Accounts: From 2008-2015: staff only tracked accounts of residents who had stopped service due to no payment. In 2016,staff performed an audit of the City’s customers not paying for garbage service. In 2017, staff audited Bertolotti’s billed inactive accounts, and in 2018 added the audit of Gilton’s billed inactive accounts. The auditing and reconciling of these accounts will be a continuous process going forward.

Illegal Dumping: The amount of illegal dumping shows a steady increase over the years. Limited solid waste resources hampered prevention efforts which have contributed to the steady increase of cases.

Organic Cans Contamination: Organic can contamination was originally completed in-house. Staff was responsible for inspecting cans as time allowed. Sharp decreases in the data are due to shortages in resources and in 2018 the in-house program was suspended. In early 2019, the responsibility of inspecting cans was transitioned to Gilton and Bertolotti. This method has been successful as shown in the data and has helped capture residents who need to be informed of how to appropriately dispose of their waste.

Street Sweeping Program
The Street Sweeping Program consists of five street sweepers who follow behind the green waste crews and sweep small debris and dirt from the roads. They complete roughly 4,000 lane miles of street sweeping in a month. Street sweeping crews are also occasionally dispatched as needed to clean nonhazardous spills 2015 2016 2017 2018 2019
Inactive Garbage Service 353 177 1767 4160 3911
Illegal Dumping 2109 2472 2951 2609 1664
Organic Can Contamination 2778 1712 1270 220 4758
0 2000
4000
6000
8000
10000
12000
Solid Waste Code Enforcement: Top Cases
GoModesto
Implmentation
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and debris from accidents, at the discretion of the supervisor. Green waste is disposed of at the City’s Composting facility and debris from street sweeping is disposed of with Gilton Solid Waste.

The street sweeping program is funded by the Storm Water Fund and the cost of this program is approximately $1.2 million on an annual basis. The City also consistently receives approximately $18,000 from the California Department of Transportation on an annual basis for street sweeping services on state right of ways in Modesto.

Green Waste
Green waste, including brush and trimmings less than six feet long, less than six inches in diameter, and weighing less than 50 pounds is picked up from City streets and alleys once a month. Roughly 12,200 tons of green waste is collected from January to November and 3,000-5,000 tons of leaves are collected in November and December (leaf season). Five green waste crews of a claw and packer operate in each quadrant of the City for one week on a set pickup schedule. No appointment is necessary, but residents must place green waste out no more than three days prior to and no later than the Sunday of their area’s pickup week to utilize the program. The map below outlines the schedule for green waste pick up for each area across the City. The following rates support the green waste street collection program, and portions of the forestry operations.

Rate Types Green Waste Diversion Rate Annual Amount
Residential Rate $5.03 / household $3.3 million
Commercial Rate $9.72 per cubic yard / amount of weekly pick-ups $1.9 million Industrial Rate $13.72 per ton $250,000
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Garbage Rate Descriptions
The City does not set the actual rate; instead, the City sets the maximum rate that the companies can charge for each type of service. The garbage rate for City of Modesto garbage service contains the following components:

Base rate: determined by the actual cost of service reported from the lowest cost hauler for the most recent completed fiscal year financial reports; includes the cost of providing regular garbage service, illegal dumping and bulky item pickups, drop off programs for the Stanislaus County Household Hazardous Waste Facility. ($29.45 per household per month; Includes $0.50 bulky item pick-up and $0.15 illegal dumping) Litter abatement fee: included in the commercial rates to execute litter abatement in public right of ways ($.59 per cubic yard per month)
• Recycling fee: included in residential, commercial, and industrial rates to supplement the cost of recycling programs and staff. ($0.43 per household per month) • AB939 Green Waste Diversion fee: included in residential, commercial, and industrial rates to fund Green Waste and Forestry programs. ($5.03 per household per month) • Carpenter Road Landfill mitigation fee: included in residential, commercial, and industrial rates for State of California mandated monitoring and mitigation of the closed Carpenter Road landfill. ($0.46 per household per month)
• Geer Road Landfill mitigation fee: included in residential, commercial, and industrial rates for State of California mandated monitoring and mitigation of the closed Geer Road landfill. ($0.15 per household per month)
• The maximum monthly rate for standard container service that includes 1 container for garbage and 1 container for organics waste recycling costs $35.52
Rate Review Process
The City of Modesto Solid Waste Division reviews the base rate and fees in the garbage rate on an annual basis and adjuststhe rate as needed each July. Both contracted haulers submit their independently audited financial records to the City annually. The base rate is based on the actual cost of services provided in the previous completed fiscal year, using the financials of the lowest cost hauler to ensure competition and #30..
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efficiency between the haulers. The City also reviews the fuel rates on a quarterly basis to accommodate potential fluctuations in the cost of diesel fuel, which is a significant cost factor for the collection companies. Depending on changes in fuel costs, the City can choose to increase or decrease the fuel rate, or leave it unchanged.

Illegal Dumping Abatement
Illegal Dumping on Public Right-of-Ways
The Solid Waste Division investigates reports of illegal dumping in public right of ways, including streets, sidewalks, and alleys as a violation of City of Modesto Municipal Code sections 5-5.105, 9-9.301, 9-9.305, 9-9.503, and 9-9.509A. In some cases residents are unaware of proper storage or disposal of excess items or trash and need to be informed of available programs like bulky item pickup. In other cases, people attempt to avoid paying disposal fees by dumping trash or bulky items along roadsides and in alleys. The below steps are followed for any investigation initiated concerning illegal dumping:

1. Complaint is reported—citizens and City employees report potential illegal dumping cases through phone, email, and Go Modesto. Solid Waste staff also identifies additional locations in the course of normal work.

2. Code Enforcement investigation—a code enforcement officer is assigned to the case in the order that the report was received. The officer performs field investigations and contacts the reporting party if necessary.

3. If the responsible party is found—a Notice of Violation is issued to the responsible party giving them five business days to remove the illegal dumping, followed by a re-inspection by the officer. If no action is taken, an Administrative Citation is issued and the pile is referred to the haulers for pickup within three business days.

4. If no responsible party is found—the pile is referred to the haulers for pickup within three business days.

5. As of this year, the City now also leverages support from the Abatement Team within the Modesto Police Department with support in picking up illegal dumping piles which alleviates some of the work for the haulers.
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Abatement Process in Public Right-of-Ways
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Items Illegally
Dumped
Reported Through
GoModesto!
Work Order
Assigned Case Created Site Inspected
Issue 5-day
Notice of Violation
To Offender
If Available
Review Camera
Footage
City Staff
Inspects Site
After 5 Days
Abated?
Close Case
Yes
Issue $1,000
Fine
Notify Hauler
Pickup Within
72 Hours
Hauler Abates
Dump Site
No
The current public right-of-way abatement process can take up to 16 days to abate the dump site.

Beginning in October of 2019, the process will be reduced to a maximum of 7 days from reporting. This is accomplished by calling haulers (or Abatement Team) to abate the site immediately. Staff is currently investigating the abatement process to explore efficiencies.

Abatement Team
Parks, Recreation, and Neighborhoods transitioned the Abatement Team to the Modesto Police Department in February 2019 to tackle homeless encampment remnants and to enhance efforts in abating illegal dumping. The Abatement Team is comprised of 1 full time and 2 part time staff and has supplemented the work that is currently completed by the haulers. The team collectively works approximately 80 hours a week and is on routine patrol responding to requests that have been received through GoModesto.
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The Abatement Team is funded by the General Fund. The ongoing costs for the abatement include the garbage disposal expenses and the staff time. The cost is about $100,000 for staff time, and approximately $30,000 for additional associated costs on an annual basis totaling approximately $130,000.

SERVICE AVERAGE RESOURCE LEVELS

CITY HAULER
Illegal Dumping Clearance 1 full-time staff member
2 part-time staff
1 truck
1 trailer
Gilton: 1 boom truck, and 1 full-time
staff, and 1 part-time staff
Bertolotti: 1 packer, 1 claw, 1 flatbed
truck, 3 full-time staff
Illegal Dumping on Private Property
The Neighborhood Preservation Unit is responsible for ensuring that private properties are complying with City Codes and Ordinances that were implemented to ensure that all citizens have access to great, safe neighborhoods. Blight on private properties is defined as abandoned shopping carts, junk and debris in public view, tagging, tall grass and weeds, and unmaintained vacant properties. In instances where people illegally dump material on private property, the Neighborhood Preservation Unit is responsible and the process they undertake requires the following steps:

1. Complaint is received via GoModesto, NPU phone line, email or walk in

2. The assigned NPU officer makes the initial inspection within 72 hrs.

3. Upon verification of a Modesto Municipal Code Violation, the assigned officer generates a Notice of violation which requires the property owner to make corrections within fourteen (14) calendar days of the date of the notice.

4. After fourteen (14) calendar days the assigned NPU officer re-inspects the property to verify the required corrections have been made. If the required corrections have been made the case is closed.

If the required corrections have not been made the NPU officer issues an Administrative Citation to the property owner of record as shown on the Stanislaus County Recorders Assessment Roll.

5. Ten (10) calendar days after the mailing of an Administrative Citation the assigned NPU officer makes an inspection to determine if the required corrections have been made. This may occur up to three (3) times with the Administrative Citation amount increasing each time from $100.00, to $200.00 and up to $500.00 for the 3rd Administrative Citation.
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*At any time after the initial inspection, if the assigned NPU officer determines there is a lack of forward process, or that the conditions warrants a more aggressive approach to obtain compliance, he or she may choose to write a Notice and Order.

Fine Evaluation
Illegal dumping Administrative Citations are issued for $1,000 for a first violation, $1,500 for a second violation within a 12 month period, and $2,000 for a third violation or any subsequent violations within a 12 month period.

Prior to Fine Issuance
Code enforcement officers reserve the right to exercise their discretion based on the issue at hand and they may issue a warning or a courtesy letter prior to issuing a Notice of Violation. In most cases, code enforcement officers provide a courtesy letter to notify a property owner of the issue and to achieve compliance from the owner. Following 14 days, the City reserves the right to reinspect the property and issue a fine.

Code enforcement officers also may issue Notice of Violations or Administrative Citations immediately for gross violations of the municipal code. Illegal dumping in an area that has “No Dumping” signs would be considered a gross violation.

Post Fine Increase Predictions
An appeal of an Administrative Citation requires a hearing by an Administrative Hearing Officer, as set forth in the Modesto Municipal Code. As part of the hearing, an Administrative Hearing Officer may reduce, waive, or conditionally reduce the penalties or late fees assessed by the citation. The administrative hearing officer may also impose conditions and deadlines to correct the violations or require payment of an outstanding penalty.

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any other legal remedy to collect the penalties and related costs including the recordation of a code enforcement lien pursuant to the Modesto Municipal Code.

Abandoned Shopping Carts
Abandoned shopping carts are a nuisance, create potential hazards to the health and safety of the public and they interfere with pedestrian and vehicular traffic throughout the city. Dismantled and/or abandoned shopping carts on public or private property create conditions that reduce property value, and compound the problem across
neighborhoods in the city.

When the Neighborhood Preservation Unit receives a
complaint of an abandoned shopping cart either from
GoModesto!, the abandoned shopping cart hotline, NPU
hotline or email, the case goes one of three ways.

1. If the reporting party provides the name of the
store that owns the cart, NPU checks the list and contact the registered shopping cart retrieval company for that store. (NPU sends a list to the various retrieval companies daily). After three (3) days NPU goes to the reported site and verify the cart has been removed. If the cart has not been removed we have several options. NPU can follow-up with the retrieval company, impound the cart, or return it to the store ourselves.

2. If the reporting party does not identify the store name, we must attempt to find and identify the cart and registered retrieval company. Upon identifying the store the cart belongs to and the registered retrieval company, we must notify the retrieval company and give them three (3) days to pick it up.

After the three (3) days, NPU goes back to the site to verify the cart has been removed. If the cart has not been removed we have several options. NPU can follow-up with the retrieval company, impound the cart, or return it to the store themselves.

3. If after verifying a cart does not have any identification or is badly damaged. NPU takes the cart to the corporation yard for disposal.

The City may impound a shopping cart when the following conditions exist:
• The cart is on the public right of way
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• In locations where the cart will impede emergency services, the city is authorized to immediately retrieve the cart from public or private property Any shopping cart that is not retrieved from the City within 30 days of receipt of a notice of violation by the owner of the shopping cart company may be sold or disposed of by the city. The city may also impose an administrative penalty on the owner not to exceed$50 for each occurrence in excess of three during a specified 6 month period for failure to retrieve shopping carts. An occurrence includes all shopping carts impounded in a 1 day period. The City is authorized to recover all actual costs incurred for impounding a shopping cart.

Tagging
In May 2015, the City Council approved additional staffing and resources to expand the City’s tagging abatement program. “Tag We’re On It” utilizes strong partnerships with public and private entities to accomplish its goal of eliminating tagging in the city of Modesto. None of the concepts of this program are new or revolutionary however the power of this program lies in its shared vision and internal and external relationships. There are five (5) components that all perform different functions but all remain focused on the goal of eliminating tagging.

The five components include:

COMPONENT DEPARTMENT
Abatement Public Works
Program Administration Community and Economic Development (Neighborhood Preservation Unit), IT
Volunteers/Outreach Parks and Recreation, Public Information Code Administration Community and Economic Development (Neighborhood Preservation Unit), City Attorney’s Office
Deterrence Modesto Police Department, Community and Economic Development (Neighborhood Preservation Unit), City
Attorney’s Office
Abatement
The Abatement component is comprised of two full time abatement crews that work 5-7 days a week. This crew primarily abates tagging on public or city owned property. However, there are privately owned fences, sound walls, etc. along highly travelled/ highly visible thoroughfares in which the City has sought permission from the owner via a waiver to remove tagging as it occurs. Each day this crew drives a “hot spot” route seeking out tagging and removing it. Highway 99 corridor is part of this “hot spot” route. Since City abatement crews are already in the area it makes sense for City crews to remove or paint over tagging in areas that are #30..
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technically in Stanislaus County but adjoin the City of Modesto. The City intends to enter into a Memorandum of Understanding with the County to memorialize the responsibilities of each party.

Program Administration
Neighborhood Preservation Unit (NPU) and their support staff provides needed coordination and data entry for this program. All complaints that come into the City regarding tagging are entered into a database for distribution. If the report is on public property the case is retrieved by the tagging removal crew and placed in their daily work routine. If the incident is on private property the case is queued for a Code Enforcement Officer in NPU to investigate the next day.

Volunteer/Outreach
The first step to provide awareness to the anti-tagging team was to develop a slogan for the campaign. With donated time from Never Boring, Inc. the slogan, “Tag. We’re On It!” was created to help the community know that the City is actively and aggressively combating tagging. Dual use of the word “Tag.” gives the visual of the child’s game “Tag, you’re it!” as well as describes what the team is actually removing. The use of the word “We’re” denotes that eliminating tagging in the City is not only the responsibility of City staff but also of the entire community. It takes City staff, volunteer groups, and every citizen of Modesto getting involved to make a difference.

Before the creation of “Tag We’re On It!,” the Partners in Paint volunteer program was very active in removing tagging in many pockets of the City. This group was formed by then Councilmember Dave Lopez because of the elimination of the City’s tagging abatement program. City staff administers this program by supplying removal kits and at times paint to sanctioned volunteer groups. The kits and paint are funded by donations to Partners in Paint. It was the goal of this program to remove and or paint over tagging in public and or City owned property. However, it was difficult for Partners in Paint to make headway with the massive amount of tagging occurring throughout the City. Due to the reinstitution of City removal and painting crew, the amount of tagging in public and or City owned property has drastically decreased and if tagging occurs City crews immediately take care of it. Currently Partners in Paint focused on distribution of removal kits and assists volunteer groups with identifying areas and or neighborhoods that may need assistance in removing or painting over tagging. In 2015, “Tag We’re On It” solicited the services of the Mayor’s Top Teens to help with outreach. This group helped the City organize a paint event along the Virginia Corridor trail. They also assisted in testing the new tagging reporting app and provided input in functionality. There are plans in the near future to utilize a similar group of teens to help present anti-tagging programs in high schools and junior highs to bring awareness to teens regarding how tagging hurts the city.

Code Administration
Tagging on private property must be handled differently since due process is required. The owner must be properly notified and given seventy two hours (72) to remove or paint over the tagging. If the owner does not comply with the City’s request, NPU can remove or paint over the tagging with the use of a private contractor or the City’s abatement crew, and invoice the owner for this cost. A confirmation of cost hearing is eventually required to verify the City followed due process in assessing this cost. If the owner does not pay the invoice, the City can lien the property. The majority of the time the owner removes or paints over the #30..
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tagging therefore this step is often not necessary. NPU staff works hard to partner with owners in removal.

Staff recognizes that it can be difficult for some owners to constantly remove tagging on private fences or buildings that are in high risk areas. In these cases we will ask the owner to sign a waiver and the property will be placed on the abatement crew’s hot spot route. In other cases NPU staff will work with the Volunteer component to find groups that may be able to help an owner that is finding it difficult to remove or paint over the tagging.

Deterrence
In order to administer an effective anti-tagging program, amendments to the Modesto Municipal Code (MMC) were needed. Given the increase of tagging within the City, more aggressive fines and penalties were needed to deter taggers. In addition, existing code language needed to be updated and clarified to give enforcement staff more tools to remove and or paint over tagging. Therefore, last spring amendments and additions to the City’s Municipal Code were approved. These changes to the MMC sends a message that the City is taking a more aggressive position on this type of vandalism, which not only impacts the City economically but also detracts from our citizens’ quality of life. The following were the changes in the MMC:

1. The term “tagging” was added to the definition of Graffiti in Section 4-12.401. Modesto is unique in that the term “Graffiti” has a special meaning to the community. Even though most communities use this term to describe vandalism, the City will not be using it in enforcement mechanisms. Therefore, the addition of the term “tagging” is needed in the code’s definitions. In addition to these amendments in this section, refinements are being proposed in the “Responsible Party” definition and two new definitions were added: “Property Owner” and “Abatement” to help clarify the City’s enforcement actions.

2. Section 4-12.405 Punishment Provisions includes proposed increases in the amount of administrative fines that can be imposed for tagging violations, as follows:
a. For first violation: two hundred dollars ($200)
b. Second violation: five hundred dollars ($500)
c. Third violation within one year: one thousand dollars ($1,000).

In addition to increased fines, the proposed language clarifies that the City may petition a sentencing court to impose additional penalties or conditions for individuals criminally charged with violating the City’s tagging regulations, including community service and suspension or delay of issuance of a driver’s license.

3. In Section 4-12.406, Removal of tagging, additional language is proposed to clarify that the City must follow Section 1-6.205 of the MMC to properly notice a property owner of a violation.

4. Section 4-12.407 is new and seeks to clarify that private property owners may provide consent in writing to the City for purposes of tagging removal.

5. Several modifications are proposed in Section 4-12.408 which help further explain the hearing process to appeal the City’s notice to abate the tagging, and the procedure for the City to recoup costs #30..
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associated with abating tagging when property owners fail to comply with the City’s notice to remove tagging.

6. Section 4-12.409 authorizes the City to summarily abate tagging that has been determined to be gangrelated on the basis of health and safety concerns.

7. Although some language currently exists in Title 10 of the MMC regarding prevention of tagging, additional language is proposed in Section 4-12.413 to further encourage anti-tagging building design.

In addition to these MMC changes and amendments, the Program Administration component has included a “moniker” field in the database to track taggers monikers. If the Police Department is able to apprehend a tagger staff will be able to search the database for all the incidents in which his/her moniker appeared. This will allow prosecution to add all the violations that have occurred for a substantial fine.

Results
Since the inception of the “Tag We’re On It” program in June 2015, NPU has completed over 2,000 cases involving tagging on private property while Public Works crews painted or removed over 2,000 incidents in public areas. This means the abatement crew completes 14-20 abatements per day. On average NPU is able to gain compliance within 72 hours 74% of the time. Generally once tagging is reported in a public area, the abatement crew can remove it or paint over it in 24 to 48 hours. #30..
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Blighted Properties
Yard Trash Piles, Inoperable Vehicles, Landscaping – Weeds, Trees, Lawns The Neighborhood Preservation Unit is responsible for ensuring that private properties are complying with City Codes and Ordinances that were implemented to ensure that all citizens have access to great, safe neighborhoods. Blight on private properties is defined as abandoned shopping carts, junk and debris in public view, tagging, tall grass and weeds, and unmaintained vacant properties. In instances where people illegally dump material on private property, the Neighborhood Preservation Unit follows the steps below:
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1. Complaint is received via GoModesto, NPU phone line, email or walk in

2. The assigned NPU officer makes the initial inspection within 72 hrs.

3. Upon verification of a Modesto Municipal Code violation, the assigned officer generates a Notice of violation which requires the property owner to make corrections within fourteen (14) calendar days of the date of the notice.

If the required corrections have not been made the NPU officer issues an Administrative Citation to the property owner of record as shown on the Stanislaus County Recorders Assessment Roll.

5. Ten (10) calendar days after the mailing of an Administrative Citation the assigned NPU officer makes an inspection to determine if the required corrections have been made. This may occur up to three (3) times with the Administrative Citation amount increasing each time from $100, to $200 and up to $500.00 for the 3rd Administrative Citation.
*At any time after the initial inspection, if the assigned NPU officer determines there is a lack of forward process, or that the conditions warrants a more aggressive approach to obtain compliance, he or she may choose to write a Notice and Order.

When issued, a Notice and Order requires the property owner to make the required corrections within twenty (20) calendar days of the date of notification. Unlike Administrative Citations, the Notice and Order has a set daily Civil Penalty assessment in amounts ranging from $100.00 to $1,000.00 per day. This document also allow the NPU officer to monitor the property and assess Civil Penalties for each day the property is found to be out of compliance during the following 12 month monitoring period. The Notice and Order also allows the Neighborhood Preservation staff to facilitate the abatement of violations and seek the recovery of City expenses related to staff time and the costs associated with the physical abatement of violation. The following chart outlines the NPU most frequent violation types across the past 5 years. #30..
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As noted, vegetation and tagging tend to be the key issues with private property across the city. Vegetation cases are typically cases for overgrown weeds, but also include cases for unmaintained trees, hedges, and shrubs. The tagging cases ebb and flow – the city experienced the most amount of tagging related cases in 2016 with smaller amounts following the robust implementation of the “Tag We’re On It” campaign to tackle tagging across the city.

The Neighborhood Preservation Unit aims to tackle blighted properties with 5 code enforcement staff, and 1 code enforcement supervisor. This Unit is funded by the General Fund.

Citation Value, Recovery and Outstanding Fees (5 year overview) 226 313 387 311 307
207 353 297 368 295 312
762 543 498 615 503
552 798 693 235 382
596 541
463 1198
229
296 360
378
365
0 500
1000
1500
2000
2500
3000
3500
2015 2016 2017 2018 2019

CART DEBRIS GRAF MISC VEGETATION VEHICLE
GoModesto
Implementation
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$104,527
$191,549
$59,098
$268,500
$47,024
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2015 2016 2017 2018 2019
NPU Citations Assessed
Citations
Recovered
$24,853
$116,941
$22,752
$240,131
$39,268
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2015 2016 2017 2018 2019
NPU Outstanding Fees
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Pre-Fine Procedure
• Education first: The current philosophy of NPU is to work with property owners to abate blight. Often, property owners are unaware of their property’s violations and how they affect their neighborhood.

For example, many property owners are unaware that overgrown vegetation such as private trees that hang too low can impede garbage trucks from accessing trash bins in alleys or interfere with the clear vision triangle.
• Case by case basis: Code Enforcement Officers are given the discretion to determine the best enforcement strategy depending on various factors such as visibility and hazard level. Many times, a phone call or site visit may be all that is required for a violation to be abated. • The first step in the Administrative Remedies process is to issue a Notice of Violation to the property owner. This serves the purpose of identifying the violation and providing a timeline for the owner to abate it. If the violation is not abated, the Code Enforcement Officer may issue an administrative citation. If the violation continues to exist or is of a severe enough nature, a Code Enforcement Officer may issue a Notice and Order which includes civil penalties. The amount of civil penalties assessed per violation per day are dependent on several factors including the severity of the violation. Once the time given for compliance has lapsed, City staff may abate the nuisance conditions or hire private contractors to abate the nuisance.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2015 2016 2017 2018 2019
NPU Citations Assessed
Other Cases
Big Case
Big Case
Big Case
Big Case
Big Case
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Post-Fine Procedure
• Appeal process: Any person served with an Administrative Citation may file an appeal within 20 days from the service of the document.5
• Confirmation of costs hearing: When the City directly or indirectly through a contractor, abates a nuisance condition san itemized accounting of the costs incurred are presented to a Hearing Officer at a confirmation of costs hearing. All administrative and actual costs may be recovered from the responsible party.
• Administrative penalty hearing: A hearing officer affirms whether the civil penalties assessed through a Notice and Order or administrative citation were appropriate and whether the responsible party caused or maintained the violation.
• Debris & Vegetation: On properties with dwellings or commercial buildings • Vacant Lot: Weeds or junk dumped on vacant lots
• Vehicle: Vehicles that are non-operable or parked on lawns or dirt

5 A Notice of Violation from the Neighborhood Preservation Unit cannot be appealed. 2015 2016 2017 2018 2019
DEBRIS 229 264 298 373 284
VEGETATION 263 598 541 465 1,131
VACANT LOT 53 17 65 37 84
VEHICLE 238 298 360 379 358
0 200
400
600
800
1000
1200
Cases
Other Code Enforcement Cases
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Opportunities for Enhancement of Existing Programs
Bulky Item Pick Up
The bulky item pick up program provides all residential customers with 2 pick-ups per calendar year, and they are afforded this through the Gilton and Bertolotti service providers. Several challenges with the program include the overabundance of material that residents place outside of their residence during the appointment, and the period of time that households are required to place the item outside of their home. The allowable amount of time is no more than 12 hours before the collection appointment, however residents often place items much sooner than this time which creates an eyesore for the neighborhood.

The options for improvements to this program to consider include:
• Bulky item pick up for multi-family housing complexes: Currently apartment complexes have limited ability for bulky item pick up
• Limited number of appointments: Evaluate the potential increase for the number of appointments available to residences
• Time elapsed between when items are placed outside of the residence and the appointment:

Households should not place items outside prior to the allowable 12 hour window, because of the potential for the items placed to grow because of neighbors noticing that they can leverage an extra pick-up
Neighborhood Environmental Action Team (NEAT)
Through a shared interdepartmental responsibility, the NEAT program is a unique opportunity to offer citizens the ability to take ownership over the parks and trails in their neighborhood. A natural expansion of the program would be through a partnership with the Public Works department to expand the adoption opportunities beyond parks and trails. The additional options for adoption may include the ability to “adopt a spot,” “adopt a street,” or other areas. Through additional resources staff can improve this program by increasing volunteerism, improving coordination, and ensuring each team has a sufficient amount of resources to promote a better Modesto.

The cost of the current program is minimal and there is no existing budget for this program, as it is absorbed within the Parks and Recreation Department budget. A few options to explore to expand the program include the following:
• Partner with Stanislaus County to allocate resources for NEAT teams for residents in county islands #30..
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• Share the cost between various departments that are working on blight abatement across the community
• Leverage donations from the community
• Establish a robust marketing campaign to increase volunteerism and donations Illegal Dumping Abatement (public right of ways)
One most frequent concerns that staff hears from residents is the frequency of illegal dumping across the city.

As mentioned above, the current protocol to abate illegal dumping is extensive considering the investigation that is intended to catch the perpetrator, and the limited availability of the haulers and the city’s abatement team. The available options to expand and improve the existing program include the following:
• Evaluation of solid waste fees associated with abatement programs • Redirect funding streams to expand the resources for illegal dumping abatement • Determine available resources for cameras to deter future illegal dumping in the city • Explore strategies to reduce the amount of time required to investigate illegal dumping by empowering additional public works or police department personnel with the ability and training to conduct investigations
• Explore potential to reduce the 72 hour window that the haulers have set to abate illegally dumped items
• Explore the amount of time (5 days) that residents are required to remove their own dumping Neighborhood Preservation (private property)
The Neighborhood Preservation Unit is responsible for ensuring compliance with the Modesto Municipal Code. NPU staff consists of code enforcement officers that work as a catalyst for positive change in troubled and at-risk neighborhoods. The growing amount of cases and steady resources have required that NPU staff creatively strategize how to address the rising number of cases. A few strategies to consider include the following:
• Data driven code enforcement that leverages additional reporting from residents in hot-spot locations • Explore ordinances, programs, and funding opportunities that can help eliminate unmaintained properties, while also considering social dynamics as reasons for unmaintained property • Evaluate fees for Notices of Violation and Administrative Citations associated with private property • Implement the Rental Housing Safety Program and that requires a self-certification process intended to ensure that landlords are complying with all municipal codes. #30..
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Shopping Cart Abatement
Beyond the traditional use for grocery stores, shopping carts are often stolen by individuals who do not have vehicles to transport their belongings. As identified above, the city receives approximately 300 shopping cart cases on an annual basis. Limited resources have hampered the ability of staff to adequately pursue and address shopping cart related issues across the city. To address the ongoing concern of shopping carts that impair the image of the community, several options for the city to explore to improve and enhance the shopping cart abatement procedure include the following:
• Notify business owners that the city reserves the right to issue fines in certain cases when they impound their shopping carts and to encourage them to install anti-theft devices on each of their shopping carts
• Request council consideration to set an impound fee between $100 and $500 to ensure that the City can recover the cost of impounding the shopping carts
• Based on the current ordinance (4-16.303) the City may issue a $50 for each violation in excess of 3 cases, and the City may require that these companies install disabling devices on all of their shopping carts, requiring the posting of a security guard to deter and stop customers who attempt to remove carts from the premises, installation of bollards, chains, or similar devices around the premises to prevent cart removal, etc.

Prevention and Enforcement Efforts
Over the last several years, the City has had limited prevention efforts because of limited resources. The efforts to prevent illegal dumping and other blight related issues have been primarily marketed through limited signage across the city and a limited public speaking circuit by the Public Works Department at neighborhood association meetings. In addition, enforcement has been exercised through traditional methods by code enforcement staff within Community and Economic Development and Public Works for public and private property. These traditional methods have primarily have been reactive as opposed to proactive. Reactive enforcement coupled with an extensive workload due to the amount of blight related issues across the city have created significant inefficiencies. To improve prevention and enforcement, the following options will be considered:
• Robust expansion of marketing related to blight abatement and the potential consequences for illegal dumping or allowing a private property to go into disrepair. • Leverage technology to enhance efficiency in handling blight abatement issues across the police, public works, and community/economic development departments. • Encourage residents and employees to “see something, say something” if they encounter blight related issues, and explore methods to enhance reporting #30..
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• Implement award/incentive program to incentivize residents to report illegal dumping when they see it
Public Education
Community awareness of the City’s role in preventing blight related issues through marketing across various platforms such as social media, city website, and other mediums has also been limited. City staff is currently working on door hangers, social media graphics, utility bill inserts, and other marketing material to improve awareness. In addition, to improve upon the existing work, additional options to consider include:
• Partnering with K-12 schools to educate students on the importance of reporting blight related issues and to encourage them to participate in litter abatement activities. • Develop an ongoing marketing strategy to ensure timely communication associated with different issues while leveraging partnerships, capitalizing on existing events, and engaging the community.

MOVING FORWARD
The strategy also includes a focus on short-term, intermediate, and long-term opportunities to collaborate with partners, leverage existing and seek future funding sources, initiate public education campaigns, creating more efficient and expedient bulky item and dumping pickups, prevention and enforcement efforts, and technical efficiencies through the use of camera technology and data collection.

Action Steps
Several of the key action steps that staff recommends with the approval of this strategy include the following:

Public Property
• Increase and enhance the digital detection and prevention methods through the use of video surveillance cameras
• Adjust budget to designate fees and fines to abatement of trash and illegal dumping • Work with haulers to evaluate methods of increased expediency of pickup through a fiscally sustainable program
• Research, evaluate, and consider Smart City technologies to provide more efficient and sustainable blight abatement activities while collecting data to guide future program initiatives Private Property
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• Enhance vacant commercial and residential property monitoring ordinance through registration and fee collection
• Initiate rental housing safety program which includes debris and overgrown vegetation enforcement
• Implement new permitting software system to automate the citation process and free up code enforcement officer time to increase productivity
Public and Private Property
• Conduct training in City departments regarding the processes to mitigate blight through the use of the GoModesto! Application
• Implement Key Performance Indicator (KPI) reporting that reflect program effectiveness • Council Resolution proclaiming a month that supports “Beautify Modesto” • Conduct a fiscal and fee study (residential and commercial) to seek solutions to support a sustainable blight abatement program: illegal dumping fees, bulky item pickups, enforcement/fines, donations, in-kind contributions from volunteers, and others • Quarterly progress updates to the Safety and Communities Committee from staff • Creation of the Beautify Modesto Committee comprised of public and private partners • Affiliation with the “Keep America Beautiful” non-profit organization for training and education materials
• Implement a formal prevention campaign and implement an annual schedule In the past, programs have been launched to abate the blight throughout the City of Modesto and have tapered off. This strategy aims to broaden the scope, awareness, training, participation and partnerships through enhanced and sustainable funding sources to ensure the program continues well into the future.

Through the assessment of past programs and commensurate city programs in other communities, collaboration through community and public partnerships, and evaluation of Smart City technologies and initiatives that can enhance our overall effectiveness, this strategy is intended to guide the City to an elevated level of beautification.
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Implementation Schedule
Short Term
Description Status Cost/Funding
Source
Start Date Completion
Date
Assoc. Depts.

Prevention
Community
Mapping and
Tracking
In progress General Fund
Solid Waste
Fund
January 2018 Ongoing Solid Waste/IT
Partnership with
Neighborhood
Security and MPD
In progress General Fund
Solid Waste
Fund
May 2019 Ongoing Solid Waste/
MPD
Improvements to
Street Lighting
In progress Electrical Fund Ongoing Ongoing Electrical
Software
Improvements
In progress General Fund
Grant Funds
January 2020 Ongoing CEDD
Public Partnerships and Education
Door hangers Pending Solid Waste
Fund
November
2019
Ongoing CMO / Solid
Waste
Social Media
Campaign
Pending Solid Waste
Fund
November
2019
Ongoing CMO / Solid
Waste
Public
Engagement
Pending Solid Waste
Fund
January 2020 Ongoing CMO / Solid
Waste / NPU
Creation of Blight
Abatement
Advisory
Committee
Pending General Fund
In-Kind Staff
Time
January 2020 Ongoing CMO / Solid
Waste / NPU
Proclaim Blight
Abatement Month
Pending General Fund
In-Kind Staff
Time
January 2020 Ongoing CMO / Solid
Waste/ NPU
Quarterly Progress
Updates
Pending General Fund
In-Kind Staff
Time
January 2020 Ongoing CMO / Solid
Waste/ NPU
Coordinated Abatement
Downtown Streets
Team
In progress Solid Waste
Fund
January 2019 Ongoing CMO / Solid
Waste
Operation Clean
Sweep
In progress Solid Waste
Fund
CalTrans
December
2019
Ongoing CMO / Solid
Waste
Haulers In progress Garbage Rates Early 2000s Ongoing Solid Waste #30..
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Downtown
Modesto
Partnership
In progress General Fund 2014 Ongoing CMO / Solid
Waste
Intermediate Term
Description Status Cost/
Funding
Source
Start Date Completion
Date
Assoc. Depts.

Expansion to Current Programs
Bulky Item
Collection for
Multi-Family
Housing
Pending Garbage Rates July, 2020 Ongoing Solid Waste
Additional Code
Enforcement staff
Pending Solid Waste
Fund
General Fund
July 2020 December,2020 Solid Waste /
NPU
Public Partnerships and Education
Promotional Items
– Magnets
Pending Solid Waste
Fund
April, 2020 Ongoing Solid Waste
Expand Public
Speaking Circuit
Pending Solid Waste
Fund
January 2021 Ongoing Solid Waste
Reinitiate “Adopt a
Street - NEAT”
program
Pending Solid Waste
Fund
July 2020 Ongoing Solid Waste /
PRN
Methods to Deter Blight / Illegal Dumping
Increase in
surveillance
cameras
Pending Solid Waste
Fund
General Fund
TBD TBD CMO / Solid
Waste
Incentive Program Pending Pending TBD TBD CMO / Solid
Waste
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REFERENCES
Case Studies
City of Oakland
This City of Oakland is looking at a variety of activities to combat illegal dumping, some of which are working well, and others are not. The City is providing information to the community about the scope of the problem and resources on the Office of Public Works (OPW) website31. The website provides detailed information including mapping of reported dumpsites, data on types of materials dumped as well as a link to an interactive map that allows you to click on time periods, slices of the pie chart, and more to view the number and type of service requests to which OPW responded.

The City of Oakland has spent $100,000 on a pilot surveillance camera program, with the purchase and use of four cameras and license plates readers that may be moved around the city to identify illegal dumpers.

However, the cameras don’t appear to be impacting the larger problem and the City is determining if the program should be continued.32 In 2017, the City of Oakland issued 45 citations in 2017 and only seven offenders paid their fines in full. During same period, the city received more than 25,000 calls for service to respond to reports of illegal dumping, and during the last half of 2017 was able to respond to 95% of the calls within one day. The calls for service have doubled in the last five years. According to the February 2018 media report, the City is focusing on eradication and education as the main tools to try to reduce the impacts of dumping.

The City’s bulky item pick-up program is still undersubscribed. As of July 2015, it added multi-family units (5 plus units) to the program and increase it by 56,000 units. It allows one free pick-up annually for each apartment or condominium with a total of 1.5 cubic yards of trash per unit, plus 1 large appliance, 2 TVs, 2 tires, and 2 mattresses. Units may self-schedule with a waiver from property manager. Much of the dumping is occurring in residential areas and repeat offenders represent approximately 10% of the dumping activity.

This information is based on a study completed in August 2017, which also provides data about the geographic origin of illegally dumped material, and types of materials dumped amongst other information. Additionally, during the survey the conditions of the infrastructure (e.g.., concrete, asphalt, fences, landscaping, tagging) were noted on a five point scale from well-maintained to severely neglected. Thirty-two percent of the piles were noted to be in moderately neglected to severely neglected surroundings, with another 27% on maintained landscape indicating that actions to help maintain surroundings could be helpful. The City promotes community improvement partnerships such as Keep Oakland Beautiful to improve the community appearance through stewardship.

The City promotes a reward program for reporting illegal dumping.34 Witnesses who report critical information to catch illegal dumpers can receive up to half of all penalties collected in successful enforcement #30..
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actions based on the witness’s reports. There are four ways in which a witness can provide information to the City including, telephone, email, online and through a mobile app. However, this program may not be utilized fully as there is a requirement for the witness to appear and testify if the reported illegal dumping incident proceeds to a hearing or judicial proceeding. However, anonymous illegal dumping reports are allowed through these channels without the possibility of getting a reward.

City of San Jose
The City of San Jose has a comprehensive initiative to reduce illegal dumping.35 It is comprised of four pillars:
removing; prevention, enforcement and community reporting: 1. The City established the Removing and Preventing Illegal Dumping (RAPID) Team in July 2016. This team is responsible for the following:
• Picking up illegally dumped items reported by the public • Monitoring illegal dumping hotspots citywide
• Removing on average 25 tons of dumped materials per week from city streets and public areas In addition to the RAPID team, Republic Services sweeps various routes within commercial areas for illegally dumped items on a weekly basis.

Residents are provided with free bulky item pickup services and a comprehensive list of items that are accepted and alternative collection programs is provided on the City Website. The City also promotes opportunities to volunteer in volunteer cleanup programs through the Beautify San Jose Portal as well as promoting various Adopt-A-Creek and Adopt a Spot Programs on their website.

The City has an enforcement program that allows for fines including: first violation $2,500, second Violation $5,000 and three or more violations $10,00. In November 2015, the City Council approved an ordinance (Ord. 29645) amending Chapter 9.10 of Title 9 of the San Jose Municipal Code to add the definition of illegal dumping and language prohibiting illegal dumping36; and adopted a resolution amending the Administrative Citation Schedule of Fines to add new fines for illegal dumping in section 9.10.545. The City Ordinance related to illegal dumping, is broad and states: that any person whose identifying information is found in illegally dumped solid waste or hazardous materials or who is otherwise responsible for illegal dumping of solid waste or hazardous materials on any public or private property within the city is subject to enforcement and that each act of illegal dumping on a separate area of a single location is a separate violation even if each occurs on the same general time and day as well as that any person who disposes of solid waste or hazardous materials through illegal dumping shall be responsible for cleaning up and properly disposing of the illegally dumped solid waste or hazardous materials in addition to any other authorized enforcement action.

The City encourages residents to report illegal dumping through an online system or mobile app but doesn’t have a reward system. Review of available information suggests that efforts are making an impact. In December 2015, the City launched an anti-dumping pilot program, then expanded the program during the 2016-2017 fiscal year. The City’s efforts to develop a comprehensive program have helped it gain national recognition. Environmental Services Division led a citywide task force and developed what Keep America Beautiful describes as a “comprehensive program focused on prevention, cleanup, education and community engagement to provide practical and convenient alternatives to reduce illegal dumping.” #30..
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It also included a coordinated effort to remove items such as abandoned mattresses, furniture and trash from streets and waterways. There is also a broad public education campaign, partnerships with neighborhood associations, CommUniverCity (a partnership between the city of San Jose, San Jose State University and downtown neighborhoods) and the Behavioral Insights Team through Bloomberg Philanthropies’ What Works Cities initiative.

As part of the BeautifySJ initiative, the illegal dumping program is designed to link community and government efforts. During the fiscal year 2014-2015, when the city charged residents for every trash pickup, only 844 tons were collected. Beginning July 2017, residents were entitled to as many free pickups as they need, and 892 tons of “junk” collected in just the first three months.

Free collections of bulky items, as well as “swap” events, are also offered to students in neighborhoods around San Jose State in an annual spring “Move Out Event.”
To discourage dumping, banners read “Don’t Trash San Jose” at the city’s known 160 “hot spots.” Cameras are used to detect license plates and so far, 18 citations have been written.

There is a streamlined reporting mechanism for those who spot garbage. Residents can call the city’s Environmental Services Department or snap a picture of the dump site on the new MySanJose mobile app.

MySanJose gets an average 56 service requests per business day and increase of 30 more per day than the department previously received.

Once a site is identified, a RAPID Team is deployed. The team has doubled in size since its inception in 2016.

The number of sites cleaned up in the city over the past two years has jumped 73 percent, from 2,537 in 2016 to 4,395 in 2017. In 2016, it took 11.2 days to respond to a complaint, now it takes, on average, 4.1 days for the team to respond.

The new services are being publicized by the city at neighborhood association meetings, online via Facebook and Nextdoor, and through educational materials in English, Spanish and Vietnamese.

The previous “visual trash assessment” in areas where the garbage could eventually end up in waterways was completed in the fiscal year that ended last June 2017, before unlimited free trash pickups were offered and the MySanJose mobile app was launched. It found that trash was down 8.2 percent over previous years, but the next assessment might show increased results.

Contra Costa County
To allow the staff to clean up and fence off private property/lots that are habitually dumped on and recover the costs, Contra Costa County has implemented a “Clean and Lien” program through an ordinance and updating Title 1, Section 14-6.343 of its municipal code. The assessment is applied as a special assessment to the property through the process and collected at the time of other property taxes are due.

Kern County
Kern County has an ordinance: Title Eight, Section 8.28.080 of the code establishes that perpetrators of illegal dumping may be charged with a misdemeanor. The presence of at least two pieces of addressed mail or other identifying information in the dumped material shall be deemed to create a rebuttable presumption that the #30..
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person so identified is responsible for the dumped material and is subject to the penalties and remedies provided for in this section.55 The punishment of a misdemeanor may be by a fine of not exceeding one thousand dollars ($1,000.00) or by imprisonment in the county jail for a period of time not exceeding six (6) months, or by both such fine and imprisonment. Kern County Waste Management works with the local nonprofit organizations, businesses and residents to organize cleanup events through its outreach program “Keep Kern Clean” and illegal dumping areas have been cleared by volunteer groups ranging in size from 10 to several hundred. An offshoot of the program is Keep Kern Roads Clean which specifically targets roadside litter and residents and businesses can adopt two-mile sections of the county roads. These programs work in coordination with Keep Bakersfield Beautiful.

City of Fort Worth, Texas
The City of Fort Worth has two sources of alternative funds to support activities including a special assessment rate that property owners in downtown property improvement district (PID) and the storm water utility fee based on impermeable cover charged to residential and commercial properties as well as a monthly environmental fund fee which is scaled for apartment customers and industrial customers. Prevention program being utilized is to provide three free and convenient drop off stations across the city for residents that accept such items as tires, yard trimmings, old furniture, appliances, electronics, extra household garbage, which are items that are commonly illegally dumped. The program’s success has led to a fourth location being opened and the underused swap shop sections of the drop off stations being repurposed to accept other types of illegally dumped items at a cost of about $1.36 million annually. Keep Fort Worth Beautiful partners with the City to provide multiple volunteer community improvement projects and even thought the costs are not included in the study were estimated at over $323,200 for direct costs incurred, value of volunteer labor, and in-kind contributions for 2015 City of Austin, Texas
In the City of Austin an alternative revenue stream is the “Clean Community Fee” that residents pay ($8.05) including single family homes and apartment and condo dwellers and a monthly fee (19.85) that commercial properties pay to help keep Austin clean. In 2016 $2,100,000 from the Clean Community Fee was collected and distributed across program in the Austin Resource Recovery Department and the Austin Code Department to pay for street sweeping litter and illegal dumping abatement and cameras for illegal dumping enforcement.

The Code Department has two “Code Officers” and has installed over 30 cameras in known illegal dumping areas to document the illegal activities and relies on 311 calls. If offenders are caught they are required to clean up the site and pay a fine of up to $2,000. Citations are issued, and cases are sent to administrative panel appointed by the City Council. Austin also partners heavily with Keep Austin Beautiful, which provides multiple volunteer cleanups, creek cleanups, Adopt-A-Creek and Adopt-A-Street Programs throughout the City.

Funding Scenario for Program Expansion
The following scenario considers additional equipment for staff and ongoing disposal/ miscellaneous costs to expand the City’s abatement team with 2 full time maintenance workers and 1 full time solid waste code enforcement officer. The scenario considers an increase to the Illegal Dumping Fee for residential accounts #30..
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by $.25, and an increase to the Commercial Litter Abatement Fee by $.59 to fund the program expansion.

The cost for Year 1 and subsequent years is projected to be $308,092, while the revenue is projected to be $308,800.

COST DESCRIPTION COST
Disposal Fees $25,000
Estimated Initial and Ongoing Costs for Equipment and Materials6 $75,000 1 Solid Waste Enforcement Officer $76,356
2 Maintenance Workers $131,736
Total $308,092
Illegal Dumping Fee Per HH
Residential
Accounts
Amount/ Annual
Basis
Difference Between Current
Amount
(current rate) .15 56,000 $100,800 0
.15 + .10 56,000 $168,000 $67,200
.15 + .15 56,000 $201,600 $100,800
.15 + .25 56,000 $268,800 $168,000
Cost and Funding of Existing Programs

6 Examples of equipment and materials include: vehicles, trailers, surveillance cameras, etc. 7 The Commercial Litter Abatement Fee funds the Downtown Streets Team ($50,000) and will fund the Operation Clean Sweep program ($50,000).
8 This amount is the remainder that is currently recovered through the Commercial Litter Abatement Fee Commercial Litter Abatement
Fee
Commercial
Accounts
Amount /
Annual Basis
Difference Between Current
Amount
(current rate) .59/cubic yard 11,000 $120,4007 0
.59 + .59 / cubic yard 11,000 $240,800 $120,400
Adjusted Amount: $288,400
Additional L.A. Funds:+ $20,4008
Recommended Amount: 308,800
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95,268.32
98,960.43
58,729.07
351,949.75
47,309.63
$130,512.76
$172,031.25
$119,561.59
$113,230.97
$229,889.73

0.00 50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
2015 2016 2017 2018 2019
Private Property: Revenue and Expenses
Expenses
Revenues
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440,700
121,440
12,666
2018 - 2019 Public Property Revenue
Hauler Revenue: Garbage Rates
Commercial Litter Abatement Fee
Solid Waste Citations
$102,010
$440,700
Blight Abatement Expenses: FY 2018-2019
Solid Waste: Citations /
Commercial Litter Abatement
Hauler: Bulky Item / Illegal
Dumping
Total: $574,806
Total: $542,910
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MAXIMUM CHARGES FOR GARBAGE SERVICE - JULY 1, 2019
STANDARD CONTAINERS - Maximum Monthly Rate
Standard container service includes the following:
• 1 container for garbage and 1 container for organics waste recycling picked up once a week
• 2 bulky item collections per year by appointment
• City tree maintenance; collection & composting of green waste and forestry materials • Removal of illegally dumped items in streets and alleys • Drop off program for household hazardous waste
Additional Garbage Container - $ 13.00 each per month picked up once a week Additional Organics Container - $8.00 each per month picked up once a week Base Rate $ 29.45
Recycling Fee $ 0.43
Green Waste Fee $ 5.03
Carpenter Rd Landfill Fee $ 0.46
Geer Rd Landfill Fee $ 0.15
MAXIMUM MONTHLY RATE $ 35.52
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*Containers must be placed in a location set forth in Section 5-5.111 of the MMC.

DETACHABLE CONTAINERS - Maximum Monthly Rate
Weekly rental for Detachable Containers shall not exceed the rate for 1 pick-up per week for each size container.

Regular Container Maximum Rates
Container NUMBER OF COLLECTIONS PER WEEK
Size 1 2 3 4 5 6
1 CY $48.83 $97.66 $146.49 $195.32 $244.15 $292.98
2 CY $97.66 $195.32 $292.98 $390.64 $488.30 $585.96
3 CY $146.49 $292.98 $439.47 $585.96 $732.45 $878.94
4 CY $195.32 $390.64 $585.96 $781.28 $976.60 $1,171.92
5 CY $244.15 $488.30 $732.45 $976.60 $1,220.75 $1,464.90 6 CY $292.98 $585.96 $878.94 $1,171.92 $1,464.90 $1,757.88 **Residential and Commercial Fuel Component adjustments - The fuel component is set annually as part of the base cost. It is reviewed quarterly and adjustments shall be made as Base Rate $ 36.85
Recycling Fee $ 0.69
Green Waste Fee $ 9.72
Litter Abatement $ 0.59
Carpenter Rd Landfill Fee $ 0.74
Geer Rd Landfill Fee $ 0.24
MAXIMUM RATE 1 CU YD $ 48.83
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needed. The adjustment shall be based on the average price of fuel for a preceding quarter as follows: July 1/January-March; October 1/April-June; January 1/July-September; April 1/October-December. Average prices shall be determined based on published prices for California from the Department of Energy, Energy Information Agency and a fuel factor based on the haulers’ audited financials at annual rate review each year.

DROP BOX CONTAINERS – Maximum Rate Per Pick-Up
Actual disposal charges are paid and negotiated directly between the customer and the garbage company. The garbage company will provide up to 40CY Drop Box containers for stated charges subject only to load limit of transfer vehicle. An AB 939 Green Waste Diversion Fee of $17.30 per ton is added to the disposal charges.

Base Rate $ 362.26
Recycling Fee $ 20.23
Carpenter Rd Landfill Fee $ 21.70
Geer Rd Landfill Fee $ 7.02
MAXIMUM RATE PER PICK-UP $ 411.21
Rental Fees
$0.85 per day up to 7-day maximum rental
$3.00 per day for boxes kept 7 or more days without servicing $10.00 per day for boxes kept 21 or more days without servicing

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COMPACTORS – Maximum Monthly Rate
Front Loader Compactors
Compactor Rates
Container NUMBER OF COLLECTIONS PER WEEK
Size 1 2 3 4 5 6
3 CY $439.47 $878.94 $1,318.41 $1,757.88 $2,197.35 $2,636.82 4 CY $585.96 $1,171.92 $1,757.88 $2,343.84 $2,929.80 $3,515.76 6 CY $878.94 $1,757.88 $2,636.82 $3,515.76 $4,394.70 $5,273.64 Roll-Off Compactors
• 6CY to 40CY $411.21 per pick-up
• Hospital waste compactors $265.00 per pick-up
• Washing compactor $30.00
• Disposal Charge Actual charge to be paid by customer
• AB939 Green Waste Diversion Fee $17.30 per ton

EXTRA PICKUPS
Standard containers or equivalent $3.50 plus $2.30/container Detachable containers $12.00 plus $4.15/cubic yard
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SPECIAL SERVICE CONDITIONS
In situations where none of the above maximum rates reasonably apply, the cost of service is to be negotiated between the garbage company and the customer.

DETACHABLE CONTAINER ONLY - REPLACEMENT AND CLEANING SERVICE 1 CY 1½ CY 2 CY 3 CY 4 CY 5 CY 6 CY
$10.12 $11.00 $12.10 $15.40 $20.24 $25.08 $29.92
NOTATION: Pursuant to Section 11-6.16(c)(2) of the Modesto Municipal Code, the garbage company may require a deposit equivalent to two months service charge from customers prior to beginning service. The deposit will be credited back to the customer after 18 months under specified conditions.
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 12, 2022
Date: June 10, 2022
TO: Mayor and Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
Allison Van Guilder, Deputy City Manager
SUBJECT: Modesto Forward Strategy – Year 2 Spending Plan CONTACT: Allison Van Guilder, Deputy City Manager, [email protected], 209- 577-5228
DESCRIPTION:

Consider approving the City’s Pandemic Recovery Strategy, Modesto Forward, for the use of the second allocation of American Rescue Plan funds and authorizing the City Manager, or his designee, to carry out the necessary steps to implement the programs and funding allocations.(Funding Source: American Rescue Plan Funding) STRATEGIC PLAN ELEMENT:

This item supports each of the initiatives in the City’s 2020-2025 Strategic Plan.

BACKGROUND:

Since the adoption of the local health emergency, the City has implemented a variety of measures and programs to help slow the spread of COVID-19 and mitigate the associated impact of the pandemic. The response has included safe transit opportunities available at no cost, open-air program for restaurants, business enforcement and monitoring programs, small business grants, adjustments/closures to city facilities, in-door shelter for at-risk homeless individuals, and telecommuting opportunities for employees. Additionally, the City also has directly supported the County with making testing centers and a vaccine clinic available that are directly managed and supported by City personnel. The applied interventions and mitigation strategies along with the City’s coordination with local, state and federal partners have been an essential component of the City’s successful response.

In April 2021, President Biden signed into law the American Rescue Plan Act a $1.9 trillion emergency relief measure intended to provide relief to address the impact of COVID-19. Key allocations from the American Rescue Plan that have been made available directly from the federal government for the community including direct support for businesses, homeowners, renters, and restaurant/bar owners.
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This legislation made a historic investment into local governments that includes $45,897,056 available to the City of Modesto to help address the local impact of COVID-19. The $45.89 million is being made available by the U.S Treasury directly to the City in two tranches: 50 percent was made available in May 2021, and the remaining 50 percent was received on June 6, 2022. The deadline to obligate funds is December 31, 2024 and the deadline to expend the funds is December 31, 2026.

The Treasury Department has periodically released guidance on the eligibility of funds and released their Final Rule for the use of ARPA funds in January 2022. A summary of the allowable uses is below:

1. Public Health Response
a. Coronavirus State and Local Fiscal Recovery Funds provide resources to support the public health and safety response required due to the pandemic.

Additionally, these funds also can support through services that address disparities in public health that have been exacerbated by the pandemic. The City is able to use this funding to address a broad range of public health needs across COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources.

2. Address Negative Economic Impacts
a. To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide range of assistance to individuals and households, small businesses, and impacted industries, in addition to enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
i. Supporting small businesses, helping them to address financial challenges caused by the pandemic and to make investments in COVID19 prevention and mitigation tactics, as well as to provide technical assistance. To achieve these goals, recipients may employ this funding to execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable small businesses to rebound from the downturn.
ii. Speeding the recovery of the tourism, travel, and hospitality sectors, supporting industries that were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend. Similarly impacted sectors within a local area are also eligible for support

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navigation assistance to facilitate moves to neighborhoods with high economic opportunity;
b. Addressing educational disparities through new or expanded early learning services, providing additional resources to high-poverty school districts, and offering educational services like tutoring or afterschool programs as well as services to address social, emotional, and mental health needs.

4. Replacing Lost Public Sector Revenue
a. Recipients may use these funds to replace lost revenue. The Treasury’s Final Rule establishes a methodology that each recipient can use to calculate its reduction in revenue. Alternatively, recipients may choose to take a standard allowance of $10 million in Revenue Replacement over the life of the program to be used on governmental services, rather than utilize the revenue loss formula for their amount of eligible funds. Because of the flexibility that using the standard allowance of $10 million offers the organization, the City of Modesto is opting to use the standard allowed rather than the revenue loss formula to help promote the ability of the organization to maximize the reach of the funds.

5. Investments in Water and Sewer Infrastructure
a. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to invest in necessary improvements to their water and sewer infrastructures, including projects that address the impacts of climate change. Recipients may use this funding to invest in an array of drinking water infrastructure projects, such as building or upgrading facilities and transmission, distribution, and storage systems, including the replacement of lead service lines.

6. Investments in Broadband Infrastructure
a. Recognizing the acute need in certain communities, Treasury’s Final Rule provides that investments in broadband be made in areas that are currently unserved or underserved—in other words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3 Mbps upload.

DISCUSSION:

The Modesto Forward strategy was approved by Resolution 2021-194 on May 25, 2021 and was later modified by Resolution 2022-104 on February 8, 2022. It included various allocations of funding approved by Council. To arrive at the Year 2 expenditure plan, staff solicited priorities from the public and the Council at the three standing City Council Committees: Economic Development, Safety and Communities, and Finance. Staff also released a 10-question survey intended to gauge the priority areas of the community and received approximately 700 responses to the survey. Key priorities identified in the survey and in the standing committees include the following: housing stability/ homeownership, neighborhood safety, and improvements to roads and sidewalks. The culmination of these efforts are included in this item identified as the Year 2 Spending Plan.
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Based on these priorities, staff reviewed whether they are eligible expenses based on the guidance that had been made available by the Treasury Department, and prepared the following recommendations:

Pilot Programs - $3 million
COVID Reserve Funding: - $8.1 million
 The Council and community expressed an interest in continuing many of the pilot initiatives that were launched as part of the 2021 spending plan and expressed a desire to extend the program periods with funds made available from the second allotment of ARPA funds. Further, the City also acknowledges that the pandemic is not over and the community may experience another surge in COVID-19 cases – evidenced by communities across the country. As such, the recommendation is to allocate half of the second allotment in the amount of approximately $11.1 million for these purposes.

FY 22-23 Budget Funding: - $4.5 million
 With the adoption of the FY 22-23 Operating budget, the City estimated an $8.1 million General Fund shortfall needed to balance the budget. Proposed reductions and increases in department revenues were in the amount of $3.69 million and the remaining amount will be used from American Rescue Plan.
911 Dispatch Services- $1 million
 The COVID-19 pandemic challenged services that are made available to the community, and further exacerbated existing gaps in service. In the area of dispatch, the City is currently exploring methods to improve services and this allocation will fund the necessary infrastructure to enhance dispatch services, and the overall response from public safety personnel.

Downtown Quiet Zone - $1 million
 The community and Council expressed an interest in investing funds to convert the downtown into a quiet zone alongside several private sector partners to help spur economic and housing development in downtown.

Park Improvements and Forestry Services - $2 million
 The community and Council noted that the parks and forestry services across the community require improvements. Staff will be returning to Council to identify the park improvements required by level of priority.

Homelessness: Downtown Streets Team - $1.8 million
 A key priority identified was the effort to address homelessness. The City has created a comprehensive strategy titled “Camp2Home” alongside the Downtown Streets Team which has helped dozens of previously homeless individuals secure housing and employment.

Other Service Areas - $1.5 million
 The City is also recommending critical investments to improve the development of affordable housing, spur tourism and economic recovery, and address gaps in service with investments like the creation of a pilot multi-family bulky item pick up program. #31..
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FISCAL IMPACT:

The approval of this item will provide relief to the General Fund. The detailed spending plan is below:
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ARPA Year 2 Initiatives Funding Amount Reserve Funding Strategic Plan Area of Focus
COVID-19 Payroll / Reserve for Pilot Programs $11,175,528 Mental Health Response (2 addtl. years) $850,000 Quality of Life Blight Abatement (2 addtl. years) $650,000 Quality of Life Park Ranger Extension (1.5 addtl. years) $624,000 Quality of Life Deferred Maintenance at Parks and Facilities $500,000
Governance and Service
Delivery
Community Health Assistance Team $400,000 Quality of Life Subtotal (Reserve Funding) $8,151,528
Governance and Service
Delivery
FY 22-23 Budget Funding $4,500,000
Governance and Service
Delivery
911 Dispatch Services $1,000,000
Governance and Service
Delivery
Downtown Quiet Zone $1,000,000 Economic Vitality
Park Improvements (including turf at Mary Grogan) &
Forestry Maintenance $2,000,000 Quality of Life
Downtown Streets Team $1,800,000 Quality of Life
Affordable Housing Trust $500,000 Economic Vitality
Parking Infrastructure $250,000 Economic Vitality
Convention and Visitors Bureau $250,000 Economic Vitality LED lighting $250,000
Governance and Service
Delivery
Multifamily Bulky Item Program $180,000 Quality of Life West Modesto Collaborative $43,000 Quality of Life
TOTAL $22,948,528
Modesto Forward Strategy – Year 2 Spending Plan
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Each of these expenditures vary in their scope and staff will continue to periodically return to Council for consideration of the items that require the creation of a new program, the development of a public-private partnership, or the approval of an agreement.

COMMITTEE RECOMMENDATION:

This item was considered by the Finance Committee on June 27, 2022 and was approved to be forwarded to Council for consideration.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the City’s Pandemic Recovery Strategy, Modesto Forward, for the use of the second allocation of American Rescue Plan funds and authorizing the City Manager, or his designee, to carry out the necessary steps to implement the programs and funding allocations.

Approved by: _________________________________________
DeAnna Christensen, Director of Finance
_________________________________________
Allison Van Guilder, Deputy City Manager
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Modesto Forward Strategy
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1 2022

MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE CITY’S PANDEMIC RECOVERY

STRATEGY, MODESTO FORWARD, FOR THE USE OF THE SECOND

ALLOCATION OF AMERICAN RESCUE PLAN FUNDS AND AUTHORIZING

THE CITY MANAGER, OR HIS DESIGNEE, TO CARRY OUT THE

NECESSARY STEPS TO IMPLEMENT THE PROGRAMS AND FUNDING

ALLOCATIONS
WHEREAS, since the adoption of the local health emergency, the City has implemented a variety of measures and programs to help slow the spread of COVID-19 and mitigate the associated impact of the pandemic, and WHEREAS, the response has included safe transit opportunities available at no cost, open-air program for restaurants, business enforcement and monitoring programs, small business grants, adjustments/closures to city facilities, in-door shelter for at-risk homeless individuals, and telecommuting opportunities for employees, and WHEREAS, the City also has directly supported the County with making testing centers and a vaccine clinic available that are directly managed and supported by City personnel, and
WHEREAS, the State and Federal government have also taken bold steps to support local governments with their response to the pandemic, including through the signing of the Coronavirus, Aid, Relief, and Economic Security (CARES) Act that made $30 million for the City for various programs, and
WHEREAS, in April 2021, President Biden signed into law the American Rescue Plan Act a $1.9 trillion emergency relief measure intended to provide relief to address the impact of COVID-19, and
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WHEREAS, the American Rescue Plan Act is making available $45,897,056 to the City of Modesto to help address the local impact of COVID-19, and WHEREAS, the Treasury Department has released interim guidance to-date and considers the following 6 categories as allowable uses: Public Health Response, Address Negative Economic Impact, Supporting Hardest-Hit Communities and Families, Replacing Lost Public Sector Revenue, Investments in Water and Sewer Infrastructure, and Investments in Broadband, and
WHEREAS, on May 25, 2021, by Resolution 2021-194, the City Council approved the original spending plan for the allocation made available in May 2021, and WHEREAS, the final rule outlining the restrictions of the funds was released by the Treasury Department in January 2022, and
WHEREAS, on February 8, 2022, by Resolution 2022-104, the City Council modified the original spending plan for the first allotment of funds, and WHEREAS, to arrive at the proposed expenditure plan for the second allotment of funds, staff solicited priorities from the public in the form of a survey and the Council at the three standing City Council Committees: Economic Development, Safety and Communities, and Finance, and
WHEREAS, with the information from the Council and community, staff reviewed the eligibility of expenses, and
WHEREAS, staff is recommending the following proposed programs:

Pilot Programs - $3 million
COVID Reserve Funding: - $8.1 million
 The Council and community expressed an interest in continuing many of the pilot initiatives that were launched as part of the 2021 spending plan and expressed a desire to extend the program periods with funds made available from the second allotment of ARPA funds. Further, the City also #31..
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acknowledges that the pandemic is not over and the community may experience another surge in COVID-19 cases – evidenced by communities across the country. As such, the recommendation is to allocate half of the second allotment in the amount of approximately $11.1 million for these purposes.

FY 22-23 Budget Funding: - $4.5 million
 With the adoption of the FY 22-23 Operating budget, the City estimated an $8.1 million General Fund shortfall needed to balance the budget. Proposed reductions and increases in department revenues were in the amount of $3.69 million and the remaining amount will be used from American Rescue Plan. 911 Dispatch Services- $1 million
 The COVID-19 pandemic challenged services that are made available to the community, and further exacerbated existing gaps in service. In the area of dispatch, the City is currently exploring methods to improve services and this allocation will fund the necessary infrastructure to enhance dispatch services, and the overall response from public safety personnel.

WHEREAS, the approval of this item will provide relief to the General Fund through the allocation of approximately $22.9 million toward Council and community priorities, and #31..
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WHEREAS, this item was previously considered by the Finance Committee on June 27, 2022 and was approved to be forwarded to Council for consideration.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the City’s Pandemic Recovery Strategy, Modesto Forward, for the use of the second allocation of American Rescue Plan funds and authorizing the City Manager, or his designee, to carry out the necessary steps to implement the programs and funding allocations.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of July, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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Modesto Forward
City of Modesto – Pandemic Recovery Strategy
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The City of Modesto is the 18th largest city in the State of California and is a diverse community dedicated to
preserving a great quality of life, improving economic vitality, and maintaining organizational excellence for 220,000
residents. This report is intended to provide an overview of the City’s spending plan for the first tranche in relief funding from the American Rescue Plan in the amount of $22.9
million.

The second allocation is expected to be received in 12
months (May 2022) and will be used for additional
programming during Fiscal Year 2022-2023.

The key areas of focus for the Year 1 allocation include critical investments in the following areas:
• Quality of Life
• Economic Vitality
• Governance and Service Delivery
I look forward to working with the Council and community to further these initiatives.

Sincerely,
Joseph P. Lopez
City Manager
City of Modesto
Joseph P. Lopez
City Manager
Message from the
City Manager
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Table of Contents
• Background
• Pandemic Response from the City
• American Rescue Plan Act
• Themes from Council Committees
• Post Pandemic Initiatives
• Tentative Spending Plan
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Background
On March 18, 2020, the Modesto City Council declared a local health emergency in response to the rapid spread of the novel coronavirus, COVID-19. While the City of Modesto is not directly responsible for containing, contact tracing, or addressing COVID19, the City has a critical role supporting the County of Stanislaus with public adherence to Public Health Orders, emergency planning and coordination, and the provision of essential services. This section provides an overview of the key events and response activities of the City of Modesto Emergency Operations Center that occurred between February 27, 2020 and March 2021.

On January 30, 2020, the World Health Organization declared the outbreak a “public health emergency of international concern” (PHEIC). First detected in the United States in January 2020, the COVID-19 virus quickly spread across the nation and was declared a global health emergency by the World Health Organization on January 30, 2020. Shortly after the first case in the United States was detected in the state of Washington, the first case in the state of California was confirmed. In early March 2020, the pandemic was declared a National Emergency and Stanislaus County recorded the first two positive cases of COVID-19. The COVID-19 pandemic in Modesto and Stanislaus County was exceptional in its scale, duration and response.

As of March 13, 2020, it has been reported that COVID-19 has spread to over 90 countries including many parts of the United States, including the city of Modesto. Based on the rapidly evolving information from the Stanislaus County Public Health Officer, the Governor of California, and the President of the United States, the City Manager declared a local emergency in response to this pandemic to help ensure the safety of residents and visitors.

The unprecedented nature of the pandemic challenged the City of Modesto to design and implement approaches to prevent the spread of the disease without the benefit of prior experience or use of traditional pandemic response plans. The City’s response was in coordination with the County of Stanislaus and was characterized by a concentrated focus on protecting residents through a multifaceted approach which included a reliance on local community partnerships, active engagement with the community through public information channels and innovative mitigation strategies tested for the first time. While the pandemic response efforts are ongoing, the City’s strategy and the lessons learned offer an opportunity to enhance future preparedness efforts which will serve as a local standard and act as a best-practice response model for the State of California.

Despite the County’s initial measures to prepare for and prevent the spread of the virus, COVID-19 cases continued to increase across the state and in Modesto throughout the duration of the incident period. Anticipating the need for an unprecedented response, the County Public Health Officer declared a local health emergency on March 11, 2020. #31..
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Shortly after, the Modesto City Council declared a local health emergency within the City of Modesto on March 18, 2020. As cases continued to mount, the Governor of the State of California proclaimed a State of Emergency on March 18, 2020 and issued a statewide Stay-at-Home Order.

This action supported the County of Stanislaus and other jurisdictions to take extreme mitigation measures toward preventing the spread of COVID-19 in the community.

Stanislaus County saw its first two COVID-19 cases on March 11, 2020 and the first death was recorded on April 10, 2020. While the virus continued to spread in the community, an isolated outbreak at a local skilled nursing facility caused a clear spike in positive cases and deaths to which the County rapidly responded.

On May 12, 2020, the Stanislaus County Public Health Officer and Board of Supervisors determined local health orders to be unnecessary based on the conditions in Stanislaus County and elected to defer to the order issued by the California Public Health Officer.

The decision was made to rescind the Stanislaus County Public Health Order with a few exceptions. The Board of Supervisors resolved that no county resources would be expended to enforce State issued orders in unincorporated areas of the county.

In early May, the Governor’s Office required cities and counties alike to follow the phased reopening plan in 4 stages, that include:
• Stage 1. Only essential businesses identified by the Federal government’s previously identified essential sectors are permitted to operate • Stage 2. Lower risk workplaces: Gradually reopen retail (curbside only), childcare, manufacturing, logistics
• Stage 2-1. Lower risk workplaces: Relax retail restrictions, adapt and reopen schools, offices, and limited hospitality and personal services. • Stage 3. Higher risk workplaces: Adaptation and reopening of movie theaters, religious services, and personal and hospitality services • Stage 4. End stay at home order: Reopen areas of highest risk such as concerts and conventions
On Friday, May 8, 2020, Governor Newsom announced that based on the progress with meeting the statewide metrics, the state moved into Stage 2. On May 20, 2020, the State approved Stanislaus County’s attestation for variance to the state orders to expedite the safe reopening of the community and allowing the County to move into the latter part of Stage 2. At that time, the County had 685 COVID-19 positive cases. Since reopening further into Stage 2 on May 20th and into Stage 3 on June 12th, 1,404 confirmed cases have been reported (105% increase), including 35 deaths.

About a month later on July 1, the Governor announced that Stanislaus County (and 18 other counties) were ordered to close indoor operations of restaurants, wineries, cardrooms and other industries and shutter bars for a 3-week period due to the surge in #31..
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COVID-19 positive cases. This order is intended to help alleviate the pressure of hospitals and reduce community transmission.

In July, the Governor’s Office modified the 4-stage reopening plan to a 4-Tier Color System titled the Blueprint for a Safer Economy. This color-coded system ranks counties by the average daily number of new Covid-19 cases and the percentage of positive cases out of the total number of tests administered, both averaged over seven days; the colors included Purple – Widespread, Red – Substantial, Orange – Moderate, and Yellow – Minimal. The principal impact that this system has on the community is when businesses can reopen. But it also had a major impact on the ability of schools to reopen for in-person instruction. Until recently, if a county was in the purple tier, schools in that county could not open for in-person instruction for regular classes.

The subsequent activity required a closure of key industries from July 2020 through February 2021 because of the Purple Tier assignment. However, the State allowed for a brief reopening from mid-October through mid-November 2020 for meeting the requirements to move into the Red Tier.

On January 12, 2021 the County Emergency Operations Center requested support from the City of Modesto in the operation of a vaccination clinic at the Modesto Centre Plaza due to parking and physical distance issues that the County was experiencing at the Scenic Hospital. City staff in coordination with the County opened the Modesto Centre Plaza Vaccination Clinic (POD) 3 days later on January 15, 2021.

The City, in partnership with the County, has initiated a robust effort to make vaccines available to all individuals over the age of 16 who live or work in Stanislaus County – and this work continues.

Overall, the City’s response to COVID-19 has been effective, offering free transit opportunities, small business grants, in-door shelter for at-risk homeless individuals, outdoor business operation program to promote physical distancing, education protocol for noncompliant businesses, and telecommuting opportunities for employees. The early detection, applied interventions, and mitigation strategies along with the City’s coordination with local, state and federal partners were all essential to the initial success of the response by the City of Modesto.
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American Rescue
Plan Act
This report presents the Proposed strategy to support the local recovery from the pandemic, which includes an overview of the federal stimulus funding the City anticipates receiving in the coming weeks, and the three major focus areas in which this funding will be targeted—Quality of Life, Economic Vitality, and Governance and Service Delivery.

On January 20, 2021, President Biden announced a two-phased approach to address the public health and economic crises caused by the COVID-19 pandemic. The first phase, the American Rescue Plan, totals $1.9 trillion in relief funding. The second phase, the American Jobs Plan, is focused on long-term economic recovery from the detrimental impacts of COVID-19 through infrastructure investments and job creation.

The American Rescue Plan Act of 2021 includes $360 billion in relief for state and local governments. The legislation signed by President Biden will allocate $219.8 billion to states, Washington, D.C., tribes, and territories; $10 billion for capital projects to support work, education, and health monitoring; and, the remaining $130.2 billion would be evenly divided between counties based on population ($65.1 billion) and cities using a modified Community Development Block Grant formula ($65.1 billion).

The City is slated to receive $45.89 million in relief funding for purposes identified below, with the State of California expected to receive $26.2 billion. Funding will be allocated directly from the federal government to the City in two tranches: 50 percent ($22.94m) would be made available within 60 days after enactment – expected to be received by in the month of May. The remaining 50 percent ($22.94m) would be distributed 12 months after the initial allocation. The deadline to encumber funds is December 31, 2024, and the deadline to expend funds is 2026. The legislation provides broad guidance related to eligible use of funds, and staff expect additional regulatory clarification from the U.S. Treasury, similar to the process for the CARES Act funding.

The allowable uses for the funding as identified by the guidance released to-date includes six broad categories:

1. Public Health Response
a. Coronavirus State and Local Fiscal Recovery Funds provide resources to support the public health and safety response required due to the pandemic. Additionally, these funds also can support through services that address disparities in public health that have been exacerbated by the #31..
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pandemic. The City is able to use this funding to address a broad range of public health needs across COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources.

2. Address Negative Economic Impacts
a. To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide range of assistance to individuals and households, small businesses, and impacted industries, in addition to enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
i. Supporting small businesses, helping them to address financial challenges caused by the pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to provide technical assistance. To achieve these goals, recipients may employ this funding to execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable small businesses to rebound from the downturn.
ii. Speeding the recovery of the tourism, travel, and hospitality sectors, supporting industries that were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend.

Similarly impacted sectors within a local area are also eligible for support

3. Supporting the Hardest-Hit Communities and Families
a. Support with investments in housing and neighborhoods, such as services to address individuals experiencing homelessness, affordable housing development, housing vouchers, and residential counseling and housing navigation assistance to facilitate moves to neighborhoods with high economic opportunity;
b. Addressing educational disparities through new or expanded early learning services, providing additional resources to high-poverty school districts, and offering educational services like tutoring or afterschool programs as well as services to address social, emotional, and mental health needs.

4. Replacing Lost Public Sector Revenue
a. Recipients may use these funds to replace lost revenue. The Treasury’s Interim Final Rule establishes a methodology that each recipient can use to calculate its reduction in revenue. Specifically, recipients will compute the extent of their reduction in revenue by comparing their actual revenue #31..
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to an alternative representing what could have been expected to occur in the absence of the pandemic.

6. Investments in Broadband Infrastructure
a. Recognizing the acute need in certain communities, Treasury’s Interim Final Rule provides that investments in broadband be made in areas that are currently unserved or underserved—in other words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3 Mbps upload.

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Themes from
Council Committees
To prepare this strategy and to ensure it adequately captured the recovery strategies to help the community exit this extraordinary pandemic period, the City Manager’s Office solicited priorities from the public and the City Council Standing Committees, including:

Safety and Communities, Finance, and Economic Development Committees.

The key themes from each of the committees fall under the three key focus areas of the City’s 5-year Strategic Plan:

Governance and Service
Delivery
Finance Committee
Economic Vitality
Economic Development
Committee
Quality of Life
Safety and Communities
These initiatives are intended to
improve the organization and
service delivery for residents.
• COVID-19 Expenses/Response
• Staffing levels for Critical Dept’s
• Deferred Maintenance
• Program Improvements
• Facility Upgrades
• Revenue Loss
These initiatives are intended to
improve the economic vitality of
the community.
• Downtown Housing
• Business support, retention,
attraction, and expansion
• Downtown Beautification
• Revitalization of Public Spaces
• Broadband Infrastructure
This portion of funding is intended
to improve the quality of life for
residents.
• Public health focus – mental
health, homelessness, poverty
• Police-community relations
• Mental health support program
• Homelessness
• Blight and Forestry Program
Enhancements
• Support for Community
Amenities
o The Awesome Spot
o Children’s Museum
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Pandemic
Recovery
Initiatives
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Economic Vitality
Program Goal Allocation
Support for Community Amenities including the
Children’s Museum, Car Museum, and Awesome Spot
Playground
$1,500,000
Implementation of a business expansion, and
retention program that directly supports Modestobased businesses – and encourages future investment in Modesto.
$1,000,000
Development of a Downtown Housing Program
intended to help spur development. $1,000,000
Revolving loan program designed to waive or defer
water, sewer and stormwater fees. $1,000,000
Tuolumne River – Economic Development Strategy
intended to help improve the vitality of the River.
$750,000
Relief Across Downtown Card investment to help
drive downtown foot traffic. $708,500
Job / Career Training in a local emerging industry for
residents whose employment was impacted by the
Coronavirus.
$500,000
Support for Convention and Visitor’s Bureau to aid
the tourism industry. $250,000
Expanded Wi-Fi downtown and available at
community facilities to help bridge the digital divide. $200,000
Funding to support the development of Enhanced
Infrastructure Financing District to create a
sustainable funding model for infrastructure needs
across the City.
$200,000
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Quality of Life
Program Goal Allocation
Labor expenses from the Coronavirus pandemic $4,750,000 Additional Support for affordable housing and
homeless programs
$1,000,000
Mental Health Clinician Program – Partnership with
Police Department and BHRS
$800,000
Support for Blight Abatement programs $750,000
Support for Downtown Beautification $700,000
Acquisition of Emergency Medical Service equipment to
support COVID response
$600,000
Grants to neighborhood associations to support safe regathering $120,000
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Governance and
Service Delivery
Program Goal Allocation
Fire Station 1 Deferred Maintenance $2,000,000
Forestry Program Enhancements to help address the
backlog of deceased trees, mistletoe, stumps, etc. $1,850,000 General Plan Update to help expedite the completion of
the plan $700,000
Discoverer Replacement to sustain the City’s primary
payroll record system $500,000
Cybersecurity Mitigation to ensure the City is secure $490,000 TSP Battery Back Up System Upgrade to support the
organization during a power outage $250,000
Address deferred maintenance at various parks and
public facilities including ways to reduce water use $1,270,028 Upgrade secure online service application software for
Utility billing $60,000
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Tentative
Spending
Plan
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Year 1 - Tentative Spending Plan
Dept. Description Allocation
Economic Vitality
CED Small biz support with expansion and retention $1,000,000 CED Revolving loan fund for attraction of downtown development $1,000,000 CED/ UTL Revolving loan fund for water/sewer connection fees $1,000,000 PRN/CED Tuolumne River – Economic Development $750,000
CED Relief Across Downtown Card $708,500
CED Implementation of a workforce development program $500,000 CMO Support for Children’s Museum $500,000
CMO Support for Awesome Spot Playground $500,000
CMO Support for Car Museum $500,000
CMO Support for Convention and Visitor’s Bureau* $250,000 IT Expanded Wi-Fi downtown and available at community facilities $200,000 CED Funding to support the development of Enhanced Infrastructure Financing District $200,000
Quality of Life
CMO COVID-19 labor expenses $4,750,000
CMO Homeless Support Program $1,000,000
CMO Mental Health Clinician Program – Partnership with BHRS $800,000 CMO Blight Abatement* $750,000
CED Downtown Beautification $700,000
Fire Emergency Medical Service equipment $600,000
CMO Grants to neighborhoods $120,000
Governance and Service Delivery
Fire Fire Station 1 Deferred Maintenance $2,000,000
PW Forestry Program Enhancements* $1,850,000
CED General Plan Update $700,000
IT Discoverer Replacement $500,000
IT Cybersecurity Mitigation $490,000
IT TSP Battery Back Up System Upgrade $250,000
PRN Address deferred maintenance at various parks and public facilities $1,270,028 UTL Upgrade secure online service application software for Utility billing $60,000 TOTAL $22,948,528
*Proposed funding for 2 years
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 12, 2022
Date: June 3, 2022
TO: Mayor and Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Community Development Manager
SUBJECT: 2021 Homelessness Strategic Plan and Implementation CONTACT: Jessica Hill, Community Development Manager
[email protected] 209-577-5321
DESCRIPTION:

Consider accepting an update on the 2021 Stanislaus Regional Strategic Plan to Address Homelessness and approving the direction of the implementation plan. (Funding: Not applicable)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto’s 2020-2025 Strategic Plan Goal C: Develop Homelessness and Housing Plan.

BACKGROUND:

The City of Modesto, alongside the County of Stanislaus, has worked tirelessly to address the challenge of homelessness. Since the Ninth Circuit Federal Court ruling on Martin v. City of Boise, the City embarked on various initiatives to address the need for shelter beds and programs to support individuals experiencing homelessness with their path to self-sufficiency.

For example, the City launched Beard Brook Park, the Modesto Outdoor Emergency Shelter, Access Center Emergency Shelter, Kansas House, and continues to make additional subsidized housing opportunities available. Further, to align efforts and initiatives between all stakeholders involved in addressing homelessness, the Stanislaus Homeless Alliance (SHA) and Stanislaus Community System of Care (CSOC) created a strategic plan workgroup that began meeting to discuss the creation of a communitywide plan to address homelessness. The result of this workgroup’s efforts is the 2021 Stanislaus Regional Homeless Strategic Plan (Plan) that includes regional initiatives and is intended to align efforts from the public, private, and faithbased communities.

The plan captures information on the region’s current state of homelessness, current community concerns, gaps in homeless resources and housing, barriers to effectively addressing homelessness, and priorities for homeless assistance funding. This information was collected through an extensive feedback and information collection process where existing data, reports, and community feedback—received from a diverse group of stakeholders regarding gaps in homeless services and housing in the community—was obtained and reviewed. #32..
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Broadly speaking, the community feedback collected demonstrated that the most significant issues identified by community members to addressing homelessness are a lack of mental health support, substance abuse support, and the lack of permanent affordable housing in the county. Further, community data as well as previous community research and reports support a lack of permanent housing availability and demonstrate that the cost of rent in the county has steadily risen over the last few years, outpacing wage growth and benefits to support the higher cost of living. Perhaps unsurprisingly, the number of people experiencing homelessness has also risen steadily over the last several years. Further, the data analyzed for this plan showed racial disparities in populations experiencing homelessness in the community, with rates of homelessness among Black or African American residents being four times higher than the percentage of Black or African American residents in the general population of the county.

In light of this data and feedback, the community has identified eight (8) goals targeted to address homelessness and respond to gaps in services and housing and they include the following:
 Goal 1: Increase availability of permanent housing for people experiencing homelessness
 Goal 2: Increase access to and availability of mental health, substance abuse treatment, and other supportive services to increase housing stability and well-being in the community
 Goal 3: Achieve equity in governance, outreach, provision of services, program participation, and outcomes while improving outreach, care, and culturally attuned services to vulnerable and historically underserved subpopulations  Goal 4: Increase coordination of services, access, and information to build capacity across the homeless system of care
 Goal 5: Increase pathways to essential community services that support self-sufficiency  Goal 6: Increase participation of people with lived experience of homelessness in decision-making and feedback processes across the system of care  Goal 7: Strategically support homelessness prevention, diversion, and rapid resolution  Goal 8: Improve coordination of homeless programs to further public health and safety in support of community standards
DISCUSSION:

Since the approval of the plan, a workgroup comprised of members from the SHA and the CSOC has met on a regular basis to develop an implementation plan and begin working on carrying out the initiatives outlined in the plan. The implementation plan has included the assignment of Ron Reid, Interim Animal Services Agency Director, to serve as incident command and implement the incident command structure for this plan. Since Ron’s assignment, the workgroup has identified Goal 1: Housing, Goal 3: Equity, and Goal 6: Participation from people with Lived Experience as the key priorities that the group will aim to address and are the objectives for the incident command structure. The initial steps have included presentations to each city council of the nine cities in Stanislaus County to provide an update on the selected priorities, and to assign individuals from the various communities in Stanislaus County to serve as a liaison for their community and help the workgroup achieve the priority goals that have been identified (organizational chart below).
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The next steps include: fully forming the workgroup, assigning individuals to the incident command structure, and eventually providing periodic status updates to the SHA, CSOC, and other respective governing bodies on the various initiatives.

FISCAL IMPACT:

There is no fiscal impact associated with the acceptance of this report, and the endorsement of the direction.

COMMITTEE RECOMMENDATION
This item was considered by the Citizens Housing and Community Development Committee on June 9, 2022 and was approved to be forwarded to Council.

RECOMMENDED COUNCIL ACTION:

Staff Recommendation:

Resolution accepting an update on the 2021 Stanislaus Regional Strategic Plan to address Homelessness and approving the direction of the implementation plan.

Approved by:

Jaylen French, Director of Community and Economic Development

Joseph P. Lopez, City Manager
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Modesto City CouncilJuly 12, 2022

Modesto City Council
July 12, 2022