Modesto City Council
May 7, 2024

Edits (additions underlined and deletions in strikethrough):
 Increased administrative fines (3-1.303):
o Manufacture and sale of dangerous fireworks increased from $1,000 to $10,000 o Possession, use, or discharge increased from $1,000 to escalating scale of $2,000, $3,000, and $4,000 for subsequent violations within a 36-month period. o Fines for all other offenses doubled to $500, $1,000, and $1,500 for subsequent violations within a 12-month period.
 Stated finding that dangerous and illegal fireworks are a public nuisance to help justify fine amount under Eighth Amendment prohibition on excessive fines (3-1.303).  New third-party administrative citation provision (3-1.304). Allows non-enforcement persons who witness a violation to sign an administrative citation to be issued to a violator. This eliminates the need of an enforcement officer to personally witness an offense. The process is similar to a citizen’s arrest in the criminal venue. Two witnesses would need to sign an affidavit documenting a violation.  New provision allowing the City to recover response costs for enforcement and related costs or damages (3-1.305). Damages would be recoverable as a personal debt.  Enhanced titling to highlight Social Host Liability included in existing code.  Qualifying schools sales expanded to private and charter schools located in Modesto (3-

1.218)
 Minor language clean-up throughout.

Article 1. Fire Code
3-1.101 Findings for Adoption of the California Fire Code, 2022 Edition.

The City Council of the City of Modesto hereby finds and determines: That the International Code Council is a private organization which has been in existence for at least three (3) years. That the California Fire Code, 2022 Edition, published by said organization, is a nationally recognized compilation of proposed rules, regulations, and standards of said organization. That said California Fire Code, 2022 Edition has been printed and published as a code in book form within the meaning of Section 50022.2 et seq. of the Government Code. That one (1) copy of the California Fire Code, 2022 Edition, certified by the City Clerk of the City of Modesto to be a true copy, has been filed for use and examination by the public in the office of the City Clerk of the City of Modesto. Sections of the California Fire Code, 2022 Edition may be #16..
- 802 -

referred to by the number used in said published compilation, preceded by the words "California Fire Code Section" or "Fire Code Section", and may also be referred to by additional reference to the Modesto Municipal Code and sections therein pertaining to said California Fire Code, 2022 Edition.

The additional requirements and standards established herein are needed to properly protect the health, safety, and welfare of the existing and future residents and workers of the City of Modesto. Said requirements and standards are reasonably necessary because of local climatic, geological, and topographical conditions, and comply with existing state laws and regulations.

Amendment of the California Fire Code, 2022 Edition, is necessary so as to provide more stringent standards for fire extinguishing systems; fire hazard and hazardous materials controls are necessary to serve the public interest by reducing the risk to life and property of the citizens of Modesto because of the following climatic and topographical local conditions:
(a) Summer weather conditions are very dry, hot and windy causing ordinary combustibles to be easily ignited and fires to be fast spreading;
(b) Very dense fog conditions occur in winter. Reduced visibility causes delays in fire response; (c) Fire response is delayed by railroad tracks which:
(1) Divide the City from northeast between Tully Road and McHenry Avenue to the west side of Ninth Street;
(2) Run parallel to Highway 99 through the City, restricting response at locations where overpasses are not provided;
(3) Run parallel to Yosemite Boulevard restricting access to the airport, Tuolumne Regional Park, and adjacent areas; and
(4) Restrict access at intersections and streets in the areas of Ninth, Tenth, D, and E Streets.
(d) Modesto Irrigation Canal #3 restricts access to the neighborhoods and developments to the north and east of Briggsmore Avenue from Oakdale Road to Claus Road; (e) Fire response is delayed by rivers and creeks which:
(1) Divide the southwest area of the City and City contract areas and restrict access to these areas; and
(2) Divide the City from east to southwest along Scenic Drive.

THEREFORE, for the above reasons taken individually and cumulatively and in accordance with the authority granted in Sections 17958.5 and 17958.7 of the California Health and Safety Code, the Council of the City of Modesto expressly finds there are local climatic and topographical conditions that make the increased fire protection requirements set forth in this chapter reasonably necessary.
#16..
- 803 -

(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.102 Adoption by Reference of the California Fire Code, 2022 Edition. (a) That certain document, one (1) copy of which is on file in the office of the City Clerk of the City of Modesto, being marked and designated as the California Fire Code, 2022 Edition, California Code of Regulations Title 24, Part 9, including Appendix Chapter 4, and Appendix B, BB, C CC, D, F, G, I, K, N, O and Division 1 California Administration and Division II Scope and Administration as published by the International Code Council, regulating and governing the safeguarding of life and property from fire and explosion hazards arising from the storage, handling, and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises as herein provided; providing for the issuance of permits and collection of fees therefor; and providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said California Fire Code, 2022 Edition, on file in the office of the City Clerk of the City of Modesto is hereby referred to, adopted, and made a part in accordance with, as if fully set out in this ordinance, with the additions, insertions, deletions and changes, if any, prescribed in this chapter and is hereby adopted as the Fire Code of the City of Modesto.
(b) These regulations shall be known as the Fire Code of the City of Modesto and may be cited as such or may be cited as the "California Fire Code, 2022 Edition," the "2022 California Fire Code", "the Fire Code", or "this Code."
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.103 Repeal of Conflicting Ordinances.

All former ordinances or parts thereof conflicting or inconsistent with the provisions of this ordinance or with the 2022 California Fire Code as adopted and amended are hereby repealed. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
Article 2. Amendments, Additions and Deletions to the 2022 California Fire Code 3-1.201 Combustible Waste Material.

Section 304.1.2 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Vegetation. When the Fire Code Official determines that total removal of growth is impractical due to the size or environmental factors, approved fuel breaks shall be established. Designated areas shall be cleared of combustible vegetation to establish the fuel breaks.
#16..
- 804 -

Abatement of a public nuisance shall be in accordance with Article 6 of Chapter 6 of Title 1 of the Modesto Municipal Code. The Fire Department may impose a nuisance abatement lien pursuant to Section 1-6.702 of the Modesto Municipal Code.

The Fire Department may recover, from a property owner, those costs associated with the suppression costs incurred in fighting a fire and for providing rescue or emergency medical services should a fire occur on said property after the owner has been notified to abate such public nuisance and has failed to do so.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.202 Vehicle Impact Protection.

Section 312.2 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Posts. Guard posts or other approved means shall be provided to protect storage tanks and connected piping, valves and fittings; dispensing areas; and use areas subject to vehicular damage. When guard posts are installed, the posts shall be:

1. Constructed of steel not less than six (6) inches in diameter and concrete filled,

2. Spaced not more than four (4) feet between posts on center,

3. Set not less than three (3) feet deep in a concrete footing of not less than a fifteen (15) inch diameter,

4. Set with the top of the posts not less than three (3) feet above ground, and

5. Located not less than five (5) feet from the tank.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.203 Fire Protection and Water Supplies.

Section 507.1 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Required Water Supply.
(a) An approved water supply capable of supplying the required fire flow for fire protection shall be provided to premises upon which facilities, building or portions of buildings are hereafter constructed or moved into or within the jurisdiction. See Appendix-B of the 2022 California Fire Code.
(b) Fire hydrants shall be located on the supply side of the fire suppression system check valve.
(c) Fire hydrants shall be accessible to the Fire Department apparatus by roads meeting the requirements of Section 503.1 of the 2022 California Fire Code. #16..
- 805 -

(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.204 Where Required.

Section 507 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Where required. Where a portion of a facility or building hereafter constructed or moved into or within the jurisdiction is more than 200 feet from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on-site fire hydrants and mains shall be provided where required by the fire code official.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.205 Incinerators.

Section 605.8 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Incinerators. The use of incinerators is prohibited inside the City limits of Modesto.

EXCEPTION: Incinerators used by state licensed facilities for the cremation of human or pet remains.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.206 Open burning, recreational fires, and portable outdoor fireplaces Section 307.1 of the 2022 California Fire Code is hereby adopted by reference:

A person shall not kindle, maintain, or authorize to be kindled or maintained any open burning unless conducted and approved in accordance with sections 307.1.1 through 307.5
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.207 Automatic Sprinkler Systems.

Section 903 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

New Construction.
(a) An approved automatic fire sprinkler system is required in all new buildings and structures constructed on or after the effective date of this ordinance, notwithstanding the use and occupancy thereof, when any fire area, as defined in the California Fire Code exceeds five thousand (5,000) square feet. #16..
- 806 -

(b) When automatic sprinkler systems are required by the Modesto Municipal Code or the 2022 California Fire Code for certain uses and/or occupancies, the requirements of Section 903.2 of the 2022 California Fire Code shall also apply. (c) An approved automatic residential fire sprinkler system shall be installed in all one and two-family dwellings and townhouses in accordance with NFPA 13D or Section R313.3 of the 2019 California Residential Code.

EXCEPTION:.

1. U Occupancies and gas station canopies

2. Fire areas that are 5,000 square feet or less, unless the specific building occupancy classification requires sprinklers.

Existing Buildings and Structures.

An approved automatic fire sprinkler system shall be installed in all existing buildings and structures when either of the following conditions are met:
(a) The value of additions, alterations or repairs that exceed fifty (50) percent of the current county assessed valuation for improvements only in the existing building or structure that exceeds five thousand (5,000) square feet. (b) Following any catastrophic event such as fire, flood, or natural disaster.

EXCEPTION:

1. U Occupancies and gas station canopies

2. Fire areas that are 5,000 square feet or less, unless the specific building occupancy classification requires sprinklers.

Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.208 Monitoring.

Section 903.4.1 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Alarm, supervisory and trouble signals shall be distinctly different and shall be automatically transmitted to a UL LISTED supervising station as defined in NFPA 72 or, when approved by the Fire Code Official, shall sound an audible signal at a constantly attended location.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
#16..
- 807 -
Created: 2024-02-16 17:27:13 [EST]
(Supp. No. 66)

3-1.209 Portable Fire Extinguishers.

Section 906.9.1 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Extinguishers Weighing 40 Pounds or Less. Portable fire extinguishers having a gross weight not exceeding forty (40) lbs. (18 kg) shall be installed so that their tops are not more than four (4) feet above the floor.

Existing Installations. Portable fire extinguishers shall only be required to be lowered during tenant improvements.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.210 Fire Alarm and Detection Systems.

Section 907.2 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Where required - New Buildings and Structures. An approved fire alarm system installed in accordance with the provisions of this code and NPFP 72 shall be provided in new buildings and structures in accordance with Sections 907.2.1 through 907.2.23 of the California Fire (2022 Edition) and provide occupant notification in accordance with Section 907.5, unless other requirements are provided by another section of this code. a. All fire alarm and detection systems shall require Central Station Services monitoring as defined by and in accordance with the 2016 Edition of NFPA 72, Chapter 26. A (UL) Underwriters Laboratories Certificate of (FM) Factory Mutual Placard, in accordance with the 2016 Edition of NFPA 72, Chapter 26, shall be issued by the UL listed or FM approved prime contractor for all newly installed fire alarm systems that are newly installed in commercial occupancies for which permits are required by the Modesto Fire Department, Division of Fire Prevention, on or after 1/1/2020. b. Any existing fire alarm system in a commercial occupancy wherein the fire alarm control panel and alarm system components require replacement, shall be considered newly installed for the purposes of this section and shall require Central Station Service in accordance with the 2016 Edition of NFPA 72 Chapter 26. c. Central Station Service in full compliance with the 2016 Edition of NFPA Chapter 26, shall be maintained at the protected property, so long as the requirement for the fire alarm system exist.

Exception. Supervisory service is not required for:
i) Automatic sprinkler systems in one and two-family dwellings. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
#16..
- 808 -

3-1.211 False Fire Alarms.

Section 907 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

False Fire Alarms. False fire alarms shall not be given, signaled or transmitted or caused or permitted to be given, signaled or transmitted. The City Council may adopt by resolution reasonable fees to recover the costs associated with responses to buildings or structures that have excessive false fire alarms.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.212 Hazardous Materials Occupancies.

Section 5001 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Key Box. When required by the Fire Code Official, an approved key box, sized to contain emergency information, (HMMP, HMIS and Safety Data Sheets) shall be provided. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.213 Deposits of Hazardous Materials; Cleanup, Abatement, or Mitigation Required; Liability for Costs.

Section 5003.3.1.4 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Responsibility for Cleanup. The person, firm or corporation responsible for an unauthorized discharge shall initiate and complete all actions necessary to remedy the effects of such unauthorized discharge, whether sudden or gradual, at no cost to the jurisdiction. When deemed necessary by the Fire Code Official, cleanup may be initiated by the Fire Department or by an authorized individual or firm. Costs associated with such cleanup shall be borne by the owner, operator or other person responsible for the unauthorized discharge. The remedy provided by this section shall be in addition to any other remedies provided by law.

For purposes of this section, costs incurred by the City shall include, but shall not necessarily be limited to, the following: actual labor costs of City personnel, including worker's compensation benefits, administrative overhead; cost of equipment operation; cost of materials obtained directly by the City; and cost of any contract labor and materials. The authority to recover costs under this section shall not include actual fire suppression services that are normally or usually provided by the Fire Department. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
#16..
- 809 -
Created: 2024-02-16 17:27:13 [EST]
(Supp. No. 66)

3-1.214 Stationary Containers.

Section 5504.3.1.1.3 of the 2022 California Fire Code is adopted by reference, in addition to the following:

Location. Storage of flammable cryogenic fluids in stationary containers outside of buildings is prohibited within the limits established by law. All R-1, R-2 and R-3 zoning designations as identified in Title 10 of the Modesto Municipal Code. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.215 Possession, Manufacture, Sale, Use or Discharge of Dangerous Fireworks.

Section 5604 of the 2022 California Fire Code is hereby adopted by reference in addition to the following:

Dangerous Fireworks (a) For purposes of this section, dangerous fireworks are those fireworks specified as such in the State Fireworks Law, Section 12505 of the California Health and Safety Code, and such other fireworks as may be determined to be dangerous by the State Fire Marshal.
(b) It shall be unlawful for any person to possess, manufacture, sell, use or discharge dangerous fireworks, or a dangerous firework kit, unless a permit authorizing such possession, sale, manufacture, use or discharge has been issued by the Fire Code Official to the person or responsible party, as is defined in Section 3-1.304 of the Modesto Municipal Code, using, selling, manufacturing, discharging or found in possession of said fireworks or kits, and unless such person is in possession of a valid pyrotechnic operator's license issued by the Office of the State Fire Marshal. The Fire Code Official may establish reasonable rules and regulations for governing issuance of a firework permit and may issue the same subject to payment of a fee as established by the City Council from time to time.
(c) The Fire Code Official, or designee, shall seize, take, remove or cause to be removed, at the expense of the owner, all stocks of dangerous fireworks offered or exposed for sale, stored, or held possessed in violation of this chapter. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.216 Explosive Materials Prohibited and Limited Acts.

Section 5605.1 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Manufacturing. Explosive materials shall not be manufactured within the city limits of Modesto.
#16..
- 810 -
Created: 2024-02-16 17:27:13 [EST]
(Supp. No. 66)

Limits Established by Law. The storage of explosives and blasting agents is restricted to those areas of the City zoned as Heavy Industrial Zone (M-2). (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.217 Manufacturing of Fireworks.

Section 5605 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Manufacturing. The manufacturing of fireworks is prohibited within the city limits of Modesto.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.218 Sales of Fireworks.

Section 5608 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Sales. It shall be unlawful to engage in the sale of "Safe and Sane" fireworks in the City of Modesto without first having secured a permit to do so. (1) Effective 2005, the total number of sales permits issued in any given year shall be limited to seventy (70).
(2) Sales permits for the sale of "Safe and Sane" fireworks in the City of Modesto shall be issued only to local nonprofit organizations and existing local for-profit organizations as defined herein.
(A) A "nonprofit organization" shall mean any nonprofit association, club, or corporation organized for veteran, patriotic, welfare, religious, civic betterment, youth or charitable purposes, as defined by Section 501(c) of the Internal Revenue Code of the United States, or affiliated with a public, private, or charter school located within the city limits of Modesto. Each new organization shall provide the City with a copy of their "Letters of Incorporation" as proof of their nonprofit status. Existing organizations shall submit verification of current corporation status from the State of California Secretary of State's Office. Those organizations that are an integral part of a recognized national organization having tax exempt status must provide IRS written verification of such status. All applications will be subject to additional verification with the State of California and IRS if nonprofit status comes into question. (B) Public school organizations shall provide current written verification of affiliation from the school each year.
(C) A "local nonprofit organization" must have its principal and permanent meeting place in the City of Modesto or within the City of Modesto sphere of influence. The #16..
- 811 -

organization must have obtained nonprofit status and have been organized and established in the City of Modesto for a minimum of one (1) continuous year preceding the filing of the application for permit. The organization must also have a bona fide membership. Applications shall be signed by two (2) bona fide officers of the eligible organization, wherein the officer, on behalf of the organization and its agents, agrees to abide by State laws, administrative regulations, and all stipulations of this Code and the permit if permission to operate a fireworks stand is granted to the organization.
(D) An "existing local for-profit organization" must have a permitted fixed business location in the City of Modesto, have been issued a fireworks sales permit the previous year, have remained under the same management and/or ownership continuously since 1999, and have paid all business license and mill tax fees due the City of Modesto by the close of the application period. In the event mill taxes and business license fees are not current the organization's application will be denied. (E) If any of the above items fail to be met at the time of application, the organization's application shall be denied.
(3) Sales permits for retail sales of California State Fire Marshall approved "Safe and Sane" fireworks in the City of Modesto issued pursuant to provision of this Code are not transferable by the holder of the permit. The sales permits may be used only by the organization to which they are issued. Violations will result in the immediate loss of the organization's sales permit.
(4) All applications for sales permits shall be in writing to the Fire Code Official on forms supplied by the City. Applications may only be filed during normal business hours from April 1st of each year up to and including April 30th of the same year, at which time the filing period for that year will close. A separate sales permit shall be required for each proposed location of a fireworks stand.

Each organization may file an application for one (1) sales permit for which there is only one (1) tax ID number.
(5) Applications shall set forth the proposed location of the fireworks stand including the nine (9) digit parcel number (APN) of the Stanislaus County Assessor, a site map, and other information as may be required by the Fire Code Official. (6) Applicants for sales permits shall be notified by June 15th of each year by the Fire Code Official of approval or disapproval of such application. Sales permits will be issued after final inspection of the stand reveals compliance with all state and local regulations. Organizations shall not open for sales prior to the final inspection of their stand. If an organization's stand fails to pass inspection there will be a re-inspection fee charged for the third (3rd) inspection, and each inspection thereafter until final inspection is approved, as established by Resolution No. 03-446. #16..
- 812 -

(7) Every application shall be accompanied by proof of insurance as specified in Section 3-

1.22(3). Other items required at the time of application will be the organization's verification of eligibility as stated in 2(A) above, list of bona fide members, and current written permission signed by the property owner of record (with respect to lessee permission, approval shall be in the sole discretion of the Fire Code Official to sell fireworks at that location. Organizations representing public schools, as stated in 2(B) above, require written verification from the school of their affiliation. (8) Every application shall be accompanied by a nonrefundable application fee as established by resolution of the City Council from time to time. This application fee shall be in addition to any fees or taxes imposed by Title 6 of the Modesto Municipal Code.
(9) Any local nonprofit organization as defined herein may make application for a sale permit but pre-approved (continuously permitted since 1999) organizations will have first option for a permit.
(A) When additional sales permits are authorized and all current pre-approved organizations have applied for such permits, a lottery will be held to fill any vacancies. (B) This lottery will be held fourteen (14) days after the last day of the filing period specified in paragraph 4 and will include the names of all new local nonprofit organizations that have filed a complete application within the said filing period. If the fourteenth (14th) day falls on a weekend the lottery will be held on the next business day.
(C) One (1) organization will be drawn for each available vacancy. If the organization whose name is drawn declines the permit, another name will be drawn until each vacancy is filled.
(D) Any organization having an approved application that fails to open their stand for that sales year will automatically forfeit their permit and a new organization will be chosen the following year provided a permit is available.
(10) A nonprofit organization may apply for a sales permit with regard to a stand located in an area annexed by the City of Modesto under the following conditions:
(A) Two (2) consecutive years prior to annexation, the applicant was issued a sales permit, by the City or County in which the property was formerly located, and applicant presents proof of the issuance of said permits; (B) The applicant has received a valid City of Modesto business license; and (C) The organization must either:
(1) Meet the criteria of set forth in Section 33-1.223(2) (A) or (2) Present documentary evidence establishing its primary meeting for a minimum of two (2) years preceding application to City of Modesto was at the location for which the sales permit is currently sought.
#16..
- 813 -

(D) Annexed property that was previously used for a temporary booth by an organization whose current primary meeting place is outside the city limits of Modesto is not eligible to make application for a sales permit.

Permits issued to these organizations will be issued without the necessity of being selected by lottery, even though such issuance may increase the number of permits to more than allowed herein. The addition of these organizations does not change the original intent to issue a total of seventy (70) sales permits per year. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.219 Sales, Storage, Use, and Handling of Fireworks.

Section 5608 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

General. Sales, storage, use, and handling of fireworks shall be in accordance with this chapter.

1. Sales. Retail sale or display with the intent to sell fireworks is limited to State of California Fire Marshal approved and labeled "Safe and Sane" fireworks within the City of Modesto, by State of California licensed retailers, provided a permit to sell those fireworks has been approved and obtained from the Fire Code Official.

Fireworks may be sold or offered for sale from 12:00 noon to 10:00 p.m. on June 28, 9:00 a.m. to 10:00 p.m. on June 29 through July 5, and 9:00 a.m. to 12:00 noon on July 6.

The storage of fireworks within the City of Modesto is limited to State of California Fire Marshal-approved and labeled "Safe and Sane" fireworks by State of California licensed wholesalers and retailers.
(A) Wholesale Storage. Wholesalers may store California State Fire Marshall approved "Safe and Sane" fireworks within the City of Modesto solely during the period of June 1 through July 31 of each year. Storage facilities shall comply with H3 occupancy classification requirements as defined by the 2022 California Building Code. (B) Retailers Storage. Retailers may store California State Fire Marshall approved "Safe and Sane" fireworks within the City of Modesto solely during the period of June 22 through July 15 of each year. "Safe and Sane" fireworks that are not being sold or displayed with the intent to sell, shall be stored solely in the following manner:
(1) Within the permitted fireworks stand with a responsible adult on the premises at all times.
(2) In a completely enclosed and locked utility type trailer constructed of one-fourth (1/4) inch plywood or other approved noncombustible material. (3) In a completely detached garage on residential property with a minimum ten (10) feet clearance from other structures or property lines. There shall be no open-flame or #16..
- 814 -

spark producing equipment, or Class 1 flammable liquids stored or used within the garage.
(4) Fireworks shall not be stored within forty (40) feet of any building classified or used as a public or private school, day care facility, residential care facility, hospital, place of detention, public oil/gas station, or public garage, or any place of public assembly that can accommodate fifty (50) or more persons.
(5) In an approved and permitted fireworks warehouse.

2. Operator Safety. Each year, one (1) or more representatives from each organization, that is granted a permit to sell fireworks, shall attend a stand operator safety seminar conducted by the City of Modesto Fire Department and the fireworks industry. Failure to attend the seminar shall result in the revocation of the organization's permit to sale fireworks for that calendar year.

3. Temporary Fireworks Stands.
(1) All retail sales of California State Fire Marshall approved "Safe and Sane" fireworks shall be permitted only from within a temporary fireworks stand and sales from any other building or structure is hereby prohibited.
(2) City Business License, Fire Department Permit and State License shall be displayed in the fireworks stand during hours of operation.
(3) Temporary fireworks stand shall not be set up before application for permit has been approved no earlier than June 14.
(4) The fireworks stands shall be located at least twenty (20) feet from other structures. (5) Zoning of property, in which the fireworks stand will be located, shall be in accordance with Section 10-2.2330 of the Modesto Municipal Code.
(6) Fireworks shall not be stored, sold, offered for sale, or discharged within one hundred (100) feet of a location where gasoline, LPG, other class 1 flammable liquids or flammable gasses are stored or dispensed.
(7) All unsold stock and accompanying litter shall be removed from the location by 5:00 p.m. on the 6th day of July.
(8) The fireworks stand shall be removed from the temporary location by 12:00 noon on the 12th day of July, and all accompanying litter shall be cleared from said location by said time and date.
(9) A penalty of one hundred dollars ($100.00) per day will be assessed to the permittee of any fireworks stand not removed by 12:00 noon on the 12th day of July.

4. Safety Precautions.
(1) No person under the age of eighteen (18) shall sell, or handle for sale, any classification of fireworks.
#16..
- 815 -

(2) No person under the age of eighteen (18) shall purchase or be allowed to purchase any classification of fireworks.
(3) Smoking, open-flame, and spark-producing equipment shall be prohibited for a distance of twenty (20) feet around any fireworks stand. (4) Dry grass, weeds, trash, and other combustible material shall be removed for a distance of twenty (20) feet around any fireworks stand. (5) Fireworks shall not be discharged within fifty (50) feet of a fireworks stand.

5. Stand Construction.
(1) Merchandise may be displayed in approved glass enclosed counters or showcases, or (2) Merchandise may be displayed in stands constructed in the following manner:
(A) Walls and roof shall be of plywood at least one-fourth (1/4) inches thick or of an approved noncombustible material.
(B) The stand shall be provided with a roof.
(C) Walls shall extend to a minimum height of six (6) feet eight (8) inches, on at least three (3) sides. These three (3) sides shall be without openings, except for an exit door. (D) An exit door with a minimum size of twenty-four (24) inches in width and six (6) feet in height shall be provided in each stand. Exits shall be maintained clear and unobstructed at all times.
(E) The front wall of the stand shall provide a physical barrier not less than eighteen (18) inches in height between the public and the merchandise on display. (F) Approved "NO SMOKING" signs shall be prominently displayed in and on the stand. (G) Approved "NO SALES TO PERSONS UNDER THE AGE OF 18" signs shall be prominently displayed in the stand.
(H) An approved fire extinguisher having a minimum classification of 2A10BC shall be located in the stand, near the exit and readily accessible. (I) Sellers of fireworks shall comply with all rules and regulations of Title 19 of the California Code of Regulations and with the rules and regulations of the Fire Code Official.
(J) Stands will be limited to twenty-four (24) feet by eight (8) feet or one hundred ninetytwo (192) square feet in size. Pre-existing stands as identified by the fireworks suppliers shall retain the right to operate their oversized stands, without change, until said stand or organization forfeits or loses their operating permit. A copy of said list shall remain on file with the Fire Code Official.

6. Operation of Fireworks Stand Only by Permittee.
#16..
- 816 -

(1) It is unlawful for the permittee organization to allow any person or entity other than the permittee organization to operate the fireworks stand for which the permit is issued, whether by agreement, assignment or otherwise, or to otherwise participate in the profits of the operation of such fireworks stand. Violations will result in the immediate loss of the organization's permit.
(2) It is unlawful for a non-profit organization to allow any person other than the individuals who are members of the permittee organization, their spouses or adult children, or volunteers to whom no compensation is paid, to sell or otherwise participate in the sale of fireworks at such fireworks stand. (3) It is unlawful for a non-profit organization to pay any consideration to any person for selling or otherwise participating in the sale of fireworks at such fireworks stand, except the hiring of a night watchman or security officer. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.220 Revocation of Permit and Seizure of Fireworks.

Section 5608 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Revocation of Fireworks Sales Permit. The Fire Code Official, or his/her designee, may revoke, immediately and without notice or hearing, the "Safe and Sane" fireworks sales permit of any location or organization when any of the provisions of Sections 3-1.220, 3-

1.221, or 3-1.223 are violated. The Fire Code Official shall inform the permittee that permittee may seek review of the Fire Code Official's decision, by the City Manager, on the next business day. At the earliest opportunity on the next business day after revocation, the Fire Code Official shall provide the City Manager with written notice that a fireworks sales permit has been revoked, including the name of the permittee and a brief statement of the grounds for revocation. If requested by the permittee, the City Manager, or his/her designee, shall meet with the permittee and the Fire Code Official, or his/her designee, that day to review the Fire Code Official's decision. The decision of the City Manager shall be final.

Revocation of any sales permit will be effective for that calendar year. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.221 Fireworks Displays Insurance Required.

Section 5608 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Insurance.
#16..
- 817 -

1. The permittee shall furnish a certificate of insurance for each policy required, executed by the company issuing such policy, and approved as to form by the Risk Manager.

Such policies shall contain a provision which holds the City as an additional insured and declaring said insurance to be primary and that no other insurance carried by an insured party shall be called upon for contribution. Notwithstanding any other provision of this section, the failure of the permittee to carry such insurance during the time covered by such permit shall automatically revoke the permit as of the date of expiration of such insurance policy or policies. A payment of one hundred and two dollars ($102.00) shall be made to the City before any such revoked permit may be reinstated.

2. The permittee/licensee shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the City as may be required by the Risk Manager of the City. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the City by certified mail, return receipt requested, for all of the following stated insurance policies.
(a) Worker's Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of five hundred thousand dollars ($500,000).
(b) General Liability insurance with a minimum limit of liability per occurrence of five million dollars ($5,000,000) for bodily injury and five hundred thousand ($500,000) for property damage. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent permittee/licensees and subcontractors; products and completed operations; and professional liability. (c) Automobile Liability insurance with a minimum limit of liability per occurrence of one million dollars ($1,000,000) for bodily injury and one hundred thousand ($100,000) for property damage or one million ($1,000,000) combined single limit. This insurance shall cover any automobile for bodily injury and property damage. If at any time any of said policies shall be unsatisfactory to the City, as to form or substance, or if a company issuing such policy shall be unsatisfactory to the City, the permittee/licensee shall promptly obtain a new policy, submit the same to the Risk Manager for approval and submit a certificate thereof as hereinabove provided. Upon failure of the permittee/licensee to furnish, deliver or maintain such insurance and certificates as above provided, the permit/license is automatically revoked. Failure of the permittee/licensee to obtain and/or maintain any required insurance shall not relieve the permittee/licensee from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the permittee/licensee concerning indemnification. The City, its agents, #16..
- 818 -

officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation and Professional Liability. The Workers' Compensation insurer shall agree to waive all rights of subrogation against the City, its agents, officers, employees, and volunteers. The permittee/licensee's insurance policy(ies) shall include a provision that the coverage is primary as respects the City; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A:VII or with approval of the Risk Manager. The permittee/licensee must deliver certificates evidencing existence of the insurance listed above to the Finance Director at the time the permit is granted.

Permittee/licensee shall provide City with separate endorsements evidencing proof of the City's additional insured status as to both the general liability and automobile liability insurance policies. In addition, permittee/licensee shall provide City with a Worker's Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.

For any claims related to a permit, the permittee/licensees insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers.

Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the permittee/licensee's insurance and shall not contribute with it.

3. The permittee/licensee shall agree to hold the City of Modesto, its agents, officers, employees, and volunteers harmless from and save, defend, and indemnify them against any and all claims, losses, liabilities, and from every cause, including but not limited to injury to person or property or wrongful death, with the indemnity to include reasonable attorney fees and all costs and expenses arising directly or indirectly out of any act or omission of permittee arising out of any activity authorized by the permit.

4. The permittee/licensee shall provide at its own expense and maintain at all times the specified insurance policies with insurance companies approved by the State of California and shall provide evidence of such insurance to the City as may be required by the Risk Manager of the City. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Finance Director of the City by registered mail, return receipt requested.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.222 Storage of Flammable and Combustible Liquids in Tanks.

Section 5704 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:
#16..
- 819 -

Location Where above Ground Tanks are Prohibited. Storage of Class I and II Liquids in aboveground tanks outside of buildings is prohibited, with the exception of protected tanks designed, installed and maintained in accordance with Chapter 57 of the 2022 California Fire Code. In addition, all above ground tanks shall be UL 2085 listed. The provisions of this section shall not apply to facilities for the production, generation, or transmission of electric energy that provide power to entities furnishing retail electrical services to the general public within the city of Modesto. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.223 Storage of Flammable and Combustible Liquids.

Section 5706 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following amended to read as follows:

Locations Where Above-Ground Tanks are Prohibited. The storage of Class I and II liquids in above-ground tanks is prohibited within the limits established by law as the limits of districts in which such storage is prohibited. All R-1, R-2 and R-3 zoning designations as identified in Title 10 of the Modesto Municipal Code.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.224 Bulk Plants Storage of Flammable and Combustible Liquids.

Section 5706.4 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Bulk Plants. Portions of properties where flammable and combustible liquids are received by tank vessels, pipelines, tank cars or tank vehicles and are stored or blended in bulk for the purpose of distributing such liquids by tank vessels, pipelines, tank cars, tank vehicles or containers shall be in accordance with Section 5706.4.1 through 5706.4.10.4 of the 2022 California Fire Code.

The construction of new bulk plants for storage of flammable or combustible liquids is restricted to areas of the city of Modesto zoned Heavy Industrial Zones (M-2). All existing nonconforming bulk plants for storage of flammable or combustible liquids which substantially comply with the requirements of this Code may be continued in use if a permit therefore shall be granted by the Fire Code Official. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.225 Bulk Transfer and Process Transfer Operations.

Section 5706.5 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Bulk Transfer and Process Transfer Operations. Bulk transfer and process transfer operations shall be in approved locations. Tank cars shall be unloaded only on private #16..
- 820 -

sidings or railroad siding facilities equipped for transferring flammable or combustible liquids. Tank vehicle and tank car transfer facilities shall be separated from buildings, aboveground tanks, combustible materials, property lines, streets, alleys or public ways by a distance of twenty (25) feet (7620 mm) for Class I liquids and fifteen (15) feet (4572 mm) for Class II and III liquids measured from the nearest position of any loading or unloading valve.

Tank vehicles and tank cars shall be unloaded as soon as possible after arrival at point of delivery and shall not be used as storage tanks. Unless otherwise approved, a tank car shall not be allowed to remain on a siding at the point of delivery for more than twenty-four (24) hours while connected for transfer operations.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.226 Permits for Liquified Petroleum Gases.

Section 6101.2 of the 2022 California Fire Code is hereby adopted by reference, in addition to the following:

Permit(s) shall be required as set forth in Sections 105.5 and 105.6.

EXCEPTION:

1. Residential occupancies. Containers shall not exceed ten (10) gallons water capacity with an aggregate total of twenty (20) gallons.

2. Approved containers not exceeding sixteen and four-tenths (16.4) ounces when displayed for sale in mercantile occupancies.

3. Factory installed containers for recreational vehicles not exceeding ten (10) gallon water capacity.

4. Factory installed tanks that are permanently attached to recreational vehicles.

Distributors shall not fill an LP-gas container for which a permit is required unless a permit for installation has been issued for that location by the Fire Code Official. (Ord. No. 3760-C.S., § 1, effective 5-4-23)
ARTICLE 3. ADMINISTRATION
3-1.301 Fees and Related Fees.
(a) Permit Fee. The Council of the City of Modesto may, by resolution adopted from time to time, fix a fee for any permit issued pursuant to the Fire Code. #16..
- 821 -

(b) Plan Check Fee. When the valuation of proposed construction exceeds one thousand dollars ($1,000.00), or a plan is required to be submitted, a plan checking fee shall be paid at the time of submitting plans and specifications for checking.

Where plans are incomplete or changed so as to require an additional plan check, an additional plan check fee shall be charged. The Council of the City of Modesto may, by resolution adopted from time to time, fix a fee for plan checking.

Sections 107.1 and 107.5 of the 2022 California Fire Code is hereby added:
107.1 Fees: A permit shall not be issued until the fees have been paid, nor shall an amendment to the permit be released until the additional fee, if any, has been paid. 107.5 Related fees: The payment of the fee for the construction, alteration, removal, or demolition of work done in connection to or concurrently with the work or activity authorized by a permit shall not relieve the applicant or holder of the permit from the payment of the other fees that are prescribed by law.
(Ord. No. 3760-C.S., § 1, effective 5-4-23)
3-1.302 Appeals.

Applicant may appeal the decision of the Fire Code Official to the City Council within thirty (30) days from the date of the decision being appealed whenever the Fire Code Official:

1. Disapproves an application for use of alternate materials, methods and/or types of construction,

2. Disapproves an application for permit or refuses to grant a permit applied for,

3. When it is claimed that the provisions of the code do not apply, or

4. When it is claimed that the true intent and meaning of the code have been misconstrued or wrongly interpreted.
3-1.303 Administrative Penalties and, Remedies, and Social Host Liability.

Illegal fireworks pose a danger to life and property and are offensive to the public peace and morals of the community. The City Council hereby declares the possession, manufacture, sale, use or discharge of dangerous and illegal fireworks to be a public nuisance. Such nuisance may be abated in the manner set forth in the Modesto Municipal Code and provided by law for the abatement of public nuisances.

In addition to any other remedies set forth in this chapter, administrative penalties may be imposed against any person, as defined in Section 1-6.207 of the Modesto Municipal Code, or any responsible party as defined herein for violating any of the requirements set forth in this chapter. Any administrative penalties assessed shall be as follows:
(a) For violations of Section 3-1.215 possession, manufacture, and sale, use or discharge of dangerous fireworks, the administrative penalty shall be one ten thousand dollars #16..
- 822 -

($10,000.00) for each specific act found to be in violation of that section. For violations of Section 3-1.215, possession, use, or discharge of dangerous fireworks, the administrative penalty shall be two thousand dollars ($2,000) for the first violation, three thousand dollars ($3,000) for a second violation within any thirty-six (36) month period, and four thousand dollars ($4,000) for any subsequent violations within any thirty-six (36) month period.
(b) For all violations of this chapter, other than Section 3-1.215 possession, manufacture, sale, use or discharge of dangerous fireworks, the amount of the administrative penalty shall be two five hundred fifty dollars ($250.00 500) for the first violation, five hundred one thousand ($500.00 1,000) for a second violation within any twelve (12) month period, and seven hundred fifty one thousand five hundred ($750.00 1,500) for any subsequent violations within any twelve (12) month period. (c) For the purposes of this chapter, the term "responsible party" means any person or persons with the right of possession of the residence or other private property at which dangerous fireworks are possessed, manufactured, sold, used or discharged, including but not limited to:
(1) Any owner of the residence or other private property who occupies the residence or private property (hereinafter "owner-occupant"), meaning the record owner of real property as listed in the most current equalized assessment roll as maintained by the Stanislaus County Assessor at the time of the possession, manufacture, sale, storage, use or discharge of dangerous fireworks;
(2) Any owner-occupant, lessee, licensee, or other person having control over a property, structure or parcel of land at the time of the possession, manufacture, sale, storage, use or discharge of dangerous fireworks;
(3) Any person(s) who organizes, supervises, officiates, conducts or controls the gathering or any other person(s) accepting responsibility for such a gathering where dangerous fireworks are possessed, manufactured, sold, used or discharged; (d) Responsibility for Proper Property Management. Every owner, occupant, lessee, tenant, or holder of any possessory interest of a residence or other private property within the City is required to maintain, manage and supervise property and all persons thereon in a manner so as not to violate the provisions of this chapter. A responsible party need not be present at the time dangerous fireworks are possessed, manufactured, sold, used or discharged in order for the City to issue an administrative citation under this section.
(e) Nothing in this section shall be intended to limit any of the penalties provided for under the California Health and Safety Code or Penal Code. 3-1.304 - Third-Party Administrative Citations.
(a) Whenever two or more private, adult persons observe a violation of section 3-1.215 of the Modesto Municipal Code pertaining to possession, manufacture, sale, use or #16..
- 823 -

discharge of dangerous fireworks, they may request that an administrative citation be issued to a responsible party by an enforcement officer. The private persons will be required to sign an affidavit under penalty of perjury verifying that they personally observed a violation of section 3-1.215, and may be required to testify at an administrative hearing as provided in the Modesto Municipal Code if the administrative citation is appealed. Failure of the private persons to testify at an administrative hearing if required by the department prosecuting the violation on behalf of the private persons may result in a dismissal of the administrative citation.

The enforcement officer shall have the discretionary authority to issue an administrative citation to a responsible party where, on the basis of an affidavit and any other available evidence, a violation of section 3-1.215 of the Modesto Municipal Code has occurred.
(b) Each third-party administrative citation shall contain:

1. The date of the violation;

2. The address or a definite description of the location where the violation occurred;

3. The section of this Code violated and a description of the violation;

4. The amount of the fine for the Code violation;

5. A description of the fine payment process, including a description of the time within which and the place to which the fine must be paid;

6. An order prohibiting the continuation or repeated occurrence of the Code violation described in the administrative citation;

7. A description of the administrative citation review process, including the time within which the administrative citation may be contested and the place from which a request for hearing form to contest the administrative citation may be obtained; and

8. The name, signature and department issuing the citation on behalf of the private persons.
(c) Each third-party administrative citation shall be accompanied by an affidavit from the private persons setting forth a description of the violation as observed by the private persons signed under penalty of perjury.
3-1.305 - Response Cost.
#16..
- 824 -

(a) In addition to any fines or penalties which may otherwise be levied by the City pursuant to this article, the City shall be entitled to recover from any person found to be in violation of any provision of this article, the City's full response costs. (b) For purposes of this article, the term "response costs" shall mean those reasonable and necessary costs directly incurred by the City for a response to a complaint of discharging illegal fireworks prohibited under this article and shall include the cost of providing police, code enforcement, fire, and/or other emergency response services at the scene to include, but not limited to:

1. Salaries and benefits of code and/or law enforcement and/or fire and/or emergency personnel for the full amount of time spent responding to, remaining at, or otherwise dealing with such illegal fireworks, and the administrative costs attributable to such responses;

2. The cost of any medical treatment to or for any code and/or law enforcement and/or fire and/or emergency personnel injured while responding to, remaining at, or leaving the scene; and

3. The cost of repaying for any City equipment or property damaged and the cost of the use of any such equipment used in responding to, remaining at or leaving the scene.
(c) The expense of a response cost shall be a charge against the responsible party liable for expenses under this article. The charge constitutes a debt of that person and is collectible by the City in the same manner as in the case of an obligation under a contract, expressed or implied, except that liability for the expenses provided for in this article shall not be insurable and no insurance policy shall provide or pay for the expenses.
#16..
- 825 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 07, 2024
Date: April 12, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Program Year 2024-2025 Annual Action Plan
CONTACT: Edgar Garcia, Community Development Manager,
[email protected], 209-577-5211
DESCRIPTION:

Hearing to accept and approve the 2024-2025 Annual Action Plan, 2024-2025 annual U.S Department of Housing and Urban Development allocation in the estimated amount of $2,861,451, and to submit the 2024-2025 Annual Action Plan including applicable documentation, as required by U.S. Department of Housing and Urban Development. (Funding Source: HUD Entitlement Funding)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan, Goal C: Develop a Homelessness and Housing Plan
BACKGROUND:

The City of Modesto is an entitlement grantee under the U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development (CPD) programs. HUD requires entitlement grantees adopt a comprehensive, long‐term plan for the use of its HUD funds known as the Five‐Year “Consolidated Plan” (Con Plan) which analyzes the City’s housing and community development needs, with a priority focus on low‐ and moderate‐ income individuals, households, and neighborhoods, and describes long‐term strategies for meeting those needs. The City’s current Consolidated Plan covers Program Years 2020 to 2025 (July 1, 2020 to June 30, 2025).

As a HUD entitlement community, the City is required to develop an Annual Action Plan that describes proposed projects to be funded with HUD’s CPD programs including Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds. The Annual Action Plan (AAP) must align and support the priorities in the City’s 2020-2025 Consolidated Plan.
#17..
- 826 -
City Council, May 7, 2024
Program Year 2024-2025 Annual Action Plan

DISCUSSION:

The City of Modesto’s Program Year (PY) 2024-2025 Annual Action Plan represents the fifth (5th) plan of the City of Modesto’s 2020-2025 Consolidated Plan. The PY 2024-2025 AAP identifies the expected resources to be available and the projects to be funded during the program year to address community priority needs as identified in the Consolidated Plan.

Program Allocations
Each year the City estimates the grant allocations based on prior year allocations. The following is the estimated breakdown of the upcoming Program Year 2024-2025 grant allocations:

CDBG $1,800,000
ESG $161,451
HOME $ 900,000
Total $ 2,861,451
Community Development Block Grant (CDBG)
CDBG funds support a range of eligible projects to benefit low- and moderate-income individuals, families, and neighborhoods. CDBG eligible project categories include, but are not limited to public services, affordable housing, acquisition of real property, construction and improvements of public facilities, special economic development activities, and program administration in support of the implementation the eligible activities and Annual Action Plan development process.

CDBG funds must be allocated to eligible activities within the allowable project categories to support the goals and objectives identified within the Consolidated Plan to address community needs. The following CDBG project categories have been proposed in the AAP:

CDBG Project Categories
 Program Planning and Administration: Program funds will pay for eligible planning and administration expenses incurred in the development and implementation of funded projects.
 Housing Rehabilitation Administration Activity Delivery: Activity delivery costs for the delivery and implementation of the City’s Housing Rehabilitation Program.  Section 108 Loan Repayment: Program funds will be used to pay the annual loan repayment of the City’s CDBG Section 108 Loan.
 Economic Development: Eligible economic development activities including but not limited to small business loans for job creation/retention and/or microenterprise assistance.
 Public Facilities: Support public facilities projects in low/moderate income neighborhoods including the following projects:
o Martin Luther King Jr. Splash Pad – Design and Development funding to match Parks grants for the renovations to the Martin Luther King Jr. Park.  Affordable Housing – Acquisition, Rehabilitation: Acquisition and/or rehabilitation of properties for conversion into affordable housing units. Projects may include:
o Acquisition and Rehabilitation of new affordable housing units  Housing Rehabilitation: Provide assistance to eligible homeowners for health and safety related home repairs.
#17..
- 827 -
City Council, May 7, 2024
Program Year 2024-2025 Annual Action Plan

 Public Services: Support local non-profit service providers by providing CDBG grants for the delivery of essential public services to low/moderate income individuals and families.

Revolving Loan Fund Activities
Affordable Housing – Owner Occupied Housing Rehabilitation. This program assists lowincome owner-occupied households with health and safety repairs in the form of loans and grants.

Public Services
Up to fifteen percent (15%) of the overall CDBG allocation may be used to fund CDBG public service grants awarded to eligible organizations that serve low- and moderateincome residents. For program year 2024-2025, the City is estimated to award $270,000 for public service activities including the City’s activity delivery costs, to eligible non-profit organizations. These are awarded through a competitive application process and will be awarded when we receive the allocation from HUD.

Emergency Solutions Grant (ESG)
ESG projects can support essential services to homeless individuals and families through street outreach, rapid re-housing assistance, homeless prevention, homeless management information system support, and operation of emergency shelters. The City competitively awards ESG grants to eligible organizations that aid individuals and families experiencing homelessness and those at risk of experiencing homelessness. For program year 2024-2025, the City is estimated to award $161,451, including the City’s activity delivery costs, to be available for ESG eligible activities.

HOME Investment Partnerships Program (HOME)
The HOME program supports projects that purchase, construct, and/or rehabilitate affordable housing for low-income individuals. The HOME program provides funding for the following types of projects:
 Program Planning and Administration
 413 Vine Street – Development of the King Kennedy Cottages and Helen White Court that consists of 34 rental housing units.
 Hotel Conversion 710 N 9th Street – Conversion of the Travelers Motel to 55 Permanent Supportive Housing Units
 7
th Street Village – Development of a 79-unit rental housing mixed-use building in Downtown.
 Other Potential Projects could include:
o Affordable Housing – Rehabilitation and Construction
o City Owned Properties -
o Community Housing Development Organization Set-Aside
o Community Housing Development Organization Set Operating Support Citizen Participation Process
In accordance with HUD Citizen Participation requirements, the public is afforded an opportunity to comment, for a minimum of 30 days, on the proposed Annual Action Plan. Any public comments received in writing or at public meetings will be considered by the City when preparing the Annual Action Plan. A summary of the comments, including a notation as to #17..
- 828 -
City Council, May 7, 2024
Program Year 2024-2025 Annual Action Plan

whether the comment was accepted and the reasoning behind the inclusion or exclusion, will be included within the Citizen Participation section of the Annual Action Plan.

A series of community meetings were held during the months of April and May 2024 to provide information about the City’s HUD programs and to discuss the PY 2024-2025 Annual Action Plan. The following is a list of the community meetings.

Date Time Location
April 11, 2024 12:00 pm Citizen Housing & Community Development Committee
April 18, 2024 2:30 pm Stanislaus Community System of Care April 24, 2024 6:00 pm West Modesto Collaborative
May 06, 2024 3:00 pm Airport Neighborhood Collaborative May 07, 2024 5:30 pm City Council Public Hearing
The public review period serves as an opportunity for the public to provide comments on the draft AAP document. This comment period opened on April 07, 2024 and closes with a public hearing at the Council meeting on May 07, 2024.

Any comments received during the public review period or during the Council public hearing will be incorporated into the final Program Year 2024-2025 Annual Action Plan that is submitted to HUD. A copy of the Draft Program Year 2024-2025 Annual Action Plan is provided as Attachment 3.

As per the City’s Administrative Directive 7.2 on Grant Management, grant applications over $1,000,000 with no match requirements must be approved by Council. This item satisfies the requirement for these annual grants.

FISCAL IMPACT:

There is no impact to the General Fund. The U.S. Department of Housing and Urban Development Department (HUD) requires all recipients that receive entitlement funding to prepare and submit an Annual Action Plan as its application for each year’s funding allocation.

Failure to comply will jeopardize the funds the City receives each year from the Community Development Block Grant program, the HOME Investment Partnerships program, and the Emergency Solutions Grant program. In Program Year 2024-2025, the City is estimating it will receive approximately $2,861,451 from the three federal programs. The Annual Action Plan will not be submitted to HUD until the actual allocations have been released and the allocations for each source are adjusted proportionally up or down based on the regulatory requirements for each funding source.

COMMITTEE RECOMENDATION:

On April 11, 2024 the Citizens Housing and Community Development Committee met and approved the 2024-2025 Annual Action Plan and Allocation in the amount of approximately $2,861,451 forwarding to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the 2024-2025 Annual Action Plan, 2024-2025 annual U.S Department of #17..
- 829 -
City Council, May 7, 2024
Program Year 2024-2025 Annual Action Plan

Housing and Urban Development allocation in the estimated amount of $2,861,451, authorizing the City Manager, or his designee, to negotiate and execute any related program agreements, contracts, amend allocations, incorporate comments received prior to the close of the public comment period, make any other technical alterations as required by U.S. Department of Housing and Urban Development, or other documentation required for implementation and acceptance of the Program Year 2024-2025 Annual Action Plan funding, and authorization to submit the 2024 Annual Action Plan including applicable documentation and to make the necessary steps to implement the provision of this resolution.

Resolution approving the actual allocation of funds outlined in the final Program Year 2024-2025 Annual Action Plan budget to reflect the proposal submitted to the U.S. Department of Housing and Urban Development and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of this resolution.

Approved by:

Jessica Hill, Director of Community
and Economic Development
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Resolution- Funding

3. Program Year 2024-2025 Annual Action Plan
#17..
- 830 -
5/07/2024/C&ED/EGarcia 1 2024-xxxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-xxxx
RESOLUTION APPROVING THE 2024-2025 ANNUAL ACTION PLAN, 2024- 2025 ANNUAL U.S DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT ALLOCATION IN THE ESTIMATED AMOUNT OF
$2,861,451, AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO

NEGOTIATE AND EXECUTE ANY RELATED PROGRAM AGREEMENTS,

CONTRACTS, AMEND ALLOCATIONS, INCORPORATE COMMENTS

RECEIVED PRIOR TO THE CLOSE OF THE PUBLIC COMMENT PERIOD, MAKE ANY OTHER TECHNICAL ALTERATIONS AS REQUIRED BY U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, OR OTHER

DOCUMENTATION REQUIRED FOR IMPLEMENTATION AND
ACCEPTANCE OF THE PROGRAM YEAR 2024-2025 ANNUAL ACTION PLAN FUNDING, AND AUTHORIZATION TO SUBMIT THE 2024 ANNUAL ACTION

PLAN INCLUDING APPLICABLE DOCUMENTATION AND TO MAKE THE

NECESSARY STEPS TO IMPLEMENT THE PROVISION OF THIS
RESOLUTION.

WHEREAS, as a U.S. Department of Housing and Urban Development (HUD) entitlement community, the City of Modesto is required to develop an Annual Action Plan that describes proposed activities funded with Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds; and
WHEREAS, the City of Modesto’s Program Year (PY) 2024-2025 Annual Action Plan represents the fifth (5th) plan of the City of Modesto’s 2020-2024 Consolidated Plan; and
WHEREAS, the PY 2024-2025 AAP identifies the expected resources to be available and the projects to be funded during the program year to address community priority needs as identified in the Consolidated Plan; and WHEREAS, CDBG funds support a range of eligible projects to benefit low- and moderate-income individuals, families, and neighborhoods, and #17..
- 831 -
5/07/2024/C&ED/EGarcia 2 2024-xxxx
WHEREAS, CDBG funds must be allocated to eligible activities within the allowable project categories to support the goals and objectives identified within the Consolidated Plan to address community needs; and
WHEREAS, up to fifteen percent (15%) of the overall CDBG allocation for public service activities may be used to fund CDBG Public Services grants awarded to eligible organizations that serve low- and moderate-income residents; and WHEREAS, the ESG program supports essential services to homeless individuals and families through street outreach and engagement, rapid re-housing assistance, homeless prevention, homeless management information system support, and provision of vital services in emergency shelters; and
WHERES, the HOME program supports projects that purchase, construct, and/or rehabilitate affordable housing for rent or homeownership to low-income individuals; and
WHEREAS, citizen participation is a key component of the Annual Action Plan process; and
WHEREAS, HUD regulations require the City provide ample opportunity and means for the populations served by the grants, as well as the general citizenry, to provide input on the goals and priorities and the specific type of activities to be funded in the City’s Program Year 2024-2025 Annual Action Plan; and WHEREAS, a series of community meetings were held during the month of April and May 2024 to provide information about the City’s HUD programs and discuss the PY 2024-2025 Annual Action Plan; and
#17..
- 832 -
5/07/2024/C&ED/EGarcia 3 2024-xxxx
WHEREAS, any comments obtained from the community meetings will be incorporated into the Program Year 2024-2025 Annual Action Plan; and WHEREAS, in compliance with the Citizen Participation Plan requirements, a 30-day public period to review and comment on the draft documents opened April 07, 2024 and will close with a public hearing at the City Council meeting on May 07, 2024; and
WHEREAS, in Program Year 2024-2025, the City is estimated to receive $2,861,451 million from the three federal programs; and WHEREAS, the Program Year 2024-2025 Annual Action Plan will not be submitted to HUD until the actual allocations have been released and the allocations are adjusted proportionally up or down based on the regulatory requirements for each funding source.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the 2024-2025 Annual Action Plan, 2024-2025 annual U.S Department of Housing and Urban Development allocation in the estimated amount of $2,861,451.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute any related program agreements, contracts, amend allocations up or down as needed to meet the regulatory requirements outlined within the Federal Regulations, incorporate comments received prior to the close of the public comment period, make any other technical alterations as required by U.S. Department of Housing and Urban Development, or other documentation required for implementation and acceptance of the program year 2024-2025 Annual Action Plan funding. #17..
- 833 -
5/07/2024/C&ED/EGarcia 4 2024-xxxx
BE IT FURTHER RESOLVED that the City Manager, or his designee, is submit the 2024 Annual Action Plan including applicable documentation and to make the necessary steps to implement the provision of this resolution.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of May, 2024, 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
#17..
- 834 -
5/07/2024/C&ED/EGarcia 1 2024-xxxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-xxxx

RESOLUTION APPROVING THE ACTUAL ALLOCATION OF FUNDS
OUTLINED IN THE FINAL PROGRAM YEAR 2024-2025 ANNUAL ACTION PLAN BUDGET TO REFLECT PROPOSAL SUBMITTED TO THE U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND

AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO TAKE THE

NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF THIS

RESOLUTION
WHEREAS, each year the City of Modesto receives Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME) and Emergency Solutions Grant (ESG) funds from the U.S. Department of Housing and Urban Development (HUD), and
WHEREAS, the CDBG and HOME grant programs also generate program income and revolving loan fund income which further fund the grant programs and are to be used under similar rules and regulations as grant funding, and WHEREAS, HUD requires these amounts to be presented to the City Council each year in an Annual Action Plan (AAP), and
WHEREAS, the Program Year 2024-25 Annual Action Plan proposed budget is an estimate based on prior year awards and will be update to reflect the actual award allocations that will be adjusted proportionally up or down based on the regulatory requirements for each funding source prior to being submitted to the U.S. Department of Housing and Urban Development, and
WHEREAS, funding availability and specific project and activity budgets consistent with the AAP are managed in HUD’s online Integrated Disbursement and #17..
- 835 -
5/07/2024/C&ED/EGarcia 2 2024-xxxx
Information Management (IDIS) system and the City’s financial system simultaneously, and
WHEREAS, according to HUD rules and regulations, substantial amendments to an AAP must be presented to the City Council for approval, while unsubstantial amendments, remaining consistent with the AAP, can be made in IDIS by City staff, and WHEREAS, funding availability and specific project and activity budgets consistent with the AAP are managed in HUD’s online Integrated Disbursement and Information Management (IDIS) system and the City’s financial system simultaneously, and
WHEREAS, synchronization of the City’s financial system and IDIS necessitates budget adjustments within the City’s financial system, and WHEREAS, budget adjustments are necessary to revise CDBG, HOME and ESG budgets included in the City of Modesto 2024-25 Annual Operating, Multi-Year and Capital Improvement Budgets, and
WHEREAS, budget amendments performed under the authority of this resolution will be presented to the Finance Committee and the Council as part of the existing Monthly Budget Adjustment Report process, and
WHEREAS, the authority of this resolution will not be used to satisfy any HUD rules or regulations requiring information to be presented to the City Council or the public.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approving the actual allocation of funds outlined in the final program year #17..
- 836 -
5/07/2024/C&ED/EGarcia 3 2024-xxxx
2024-2025 annual action plan budget to reflect proposal submitted to the U.S.

Department of Housing and Urban Development.

BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of May, 2024, 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
#17..
- 837 -
DRAFT Program Year 2024-2025
Annual Action Plan
Prepared by:

Community and Economic Development Department
City of Modesto Consolidated Plan 2020-2024 - Year 5
Approved by Resolution Number: Draft

#17..
- 838 -
Contents
Executive Summary............................................................................................................................................ 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ............................................................................. 3 Expected Resources.........................................................................................................................................30 AP-15 Expected Resources – 91.220(c)(1,2) ................................................................................................30 Annual Goals and Objectives...........................................................................................................................35 AP-20 Annual Goals and Objectives.............................................................................................................35 Projects ............................................................................................................................................................37 AP-35 Projects – 91.220(d) ..........................................................................................................................37 AP-38 Project Summary ...............................................................................................................................39 AP-50 Geographic Distribution – 91.220(f)..................................................................................................43 Affordable Housing ..........................................................................................................................................44 AP-55 Affordable Housing – 91.220(g) ........................................................................................................44 AP-60 Public Housing – 91.220(h)................................................................................................................46 AP-65 Homeless and Other Special Needs Activities – 91.220(i)................................................................. 50 AP-75 Barriers to affordable housing – 91.220(j) ........................................................................................60 AP-85 Other Actions – 91.220(k) .................................................................................................................64 Program Specific Requirements.......................................................................................................................68 AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ...........................................................................68 Executed HUD Certifications and SF-424.........................................................................................................74 City of Modesto Resolution 2022-246 .............................................................................................................75

#17..
- 839 -
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Modesto’s Program Year (PY) 2024-2025 Annual Action Plan (AAP) represents the fifth (5th) year plan of the City of Modesto’s 2020-2024 Consolidated Plan (the Consolidated Plan). The PY 2024-2025 AAP identifies activities to be undertaken during the program year to address community priority needs identified in the Consolidated Plan. Further, the PY 2024-2025 AAP identifies the expected resources to be available and the activities to be funded during the program year.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis, or the strategic plan.

The following priority needs were established based upon on data from the Consolidated Plan’s Needs Assessment, Market Analysis, public meetings, and community survey results.

1. Affordable Housing

2. Addressing and Preventing Homelessness

3. Enhance Infrastructure and Public Facilities

4. Public Services

5. Community and Economic Development
Activities carried out during Program Year 2024-2025 will serve to advance these priority needs with the end goal of improving the lives of low-and-moderate income families and individuals.

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

The City utilizes resources identified in the expected resources section of this Plan to carry out projects and activities. The City of Modesto identified several projects in the PY 2023-2024 Annual Action Plan in an attempt to address the community needs as identified in the Consolidated Plan. Through these activities, the City of Modesto continued to take an active role in promoting and producing affordable housing, addressing the social and economic needs of low- and moderate-income individuals, and serving the special needs populations within the City of Modesto.

The Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), the HOME Investment Partnership (HOME), provided operating funds for many local programs, allowing the City to make progress towards the goals outlined in the Consolidated Plan.

#17..
- 840 -
In addition to the traditional entitlement funding, the United States Congress passed the CARES Act – H.R. 748 (CARES Act) on March 27, 2020. The bill provided $5 billion for CDBG and $4 billion for ESG to rapidly respond to COVID-19 and the economic, housing, and homelessness impacts caused by it. The City was awarded a reallocation in the amount of $632,829. The City is actively implementing activities that will help the residents of the City respond to, prepare for, and/or prevent COVID-19 including advancing Consolidated Plan priorities and goals.

In 2021, the City was allocated $3,409,704 in HOME-ARP funding through the American Rescue Plan Act.

For jurisdictions to utilize this funding under modified HOME regulation, the City was required to develop a plan that was required to be reviewed and accepted by HUD. The City’s plan was successfully submitted and approved December 14, 2022.

The City is proud to highlight the following projects it took part on via partnerships with local service providers (note: these projects may be completed or currently underway):

1. The “Camp2Home” program designed to assist individuals experiencing homelessness by creating a path to self-sufficiency through outreach, shelter, job training, permanent employment, and permanent housing. To date through the Camp2Home initiative’s Street Outreach component and the outreach team has made 7,026 contacts and provided 6,000 services including case management, health services and met 4,000 basic needs for individuals experiencing homelessness. As the frontline effort Street Outreach’s is geared towards connection to shelter.

Once an individual is sheltered, they are further engaged in connections to job training programs which to date has served 287 individuals and successfully placed 79 individuals into employment.

Through the Camp2Home initiative 150 individuals have also reached the ultimate goal of permanent housing.

2. Homeless Engagement Street Outreach mapping through Camp2Home outreach has helped prioritize City resources for strategic engagement through determining gaps in services.

3. City partnered with a variety of agencies to assist low-income individuals through a variety of public service programs in PY 2023 2,160 low-income individuals were assisted with CDBG and 4,760 homeless or at risk for homelessness individuals were assisted through with ESG funds.

4. Provided loan/grant assistance to 10 eligible owner-occupied households for health and safety improvements in their homes

5. The city released a comprehensive affordable housing notice of funding availability making available all funds that can be used to develop affordable housing.

6. To help meet the needs of the rising number of individuals experiencing homelessness, the city released a bridge housing request for proposals for host sites, operator and service providers.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City offers a variety of engagement methods for both stakeholders and the public to participate in the Annual Action Plan process. The City makes all attempts to encourage communitywide participation, including low- and moderate-income neighborhoods. Meetings were held times and locations were identified to expand the reach to active community groups and accommodate the needs of low-income residents, particularly persons with Limited English Proficiency.

#17..
- 841 -
Spanish translation was provided at all meetings and Limited English Proficiency assistance information was provided, and translation services accommodated for other languages upon advance notice.

All community meetings were open to the public. A meeting notice listing all the meetings and the public hearings was distributed via email and published in the local newspaper, The Modesto Bee. A copy of the draft AAP was made available online at: https://www.modestogov.com/1850/Annual-Action-Plans and hard copies were made available for review at the City of Modesto Community and Economic Development Department at 1010 10th street, Suite 3100, Modesto CA. • The City takes an active role in gathering public feedback for the AAP. The details of the engagement process are outlined in the next section, Process, and are highlighted below: Public community meetings
• Stakeholder meetings and presentations
See section AP-12 for a summary of Citizen Participation community meetings held.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

See AP-12 Participation for a summary of comments received.

6. Summary of comments or views not accepted and the reasons for not accepting them See AP-12 Participation for a summary of comments received. No comments or views received were not accepted during the Annual Action Plan Process.

7. Summary
The City of Modesto’s Program Year (PY) 2024-2025 Annual Action Plan represents the fifth (5th) year plan of the City of Modesto’s 2020-2024 Consolidated Plan. The PY 2024-2025 AAP identifies activities to be undertaken during the program year to address community priority needs.

Meetings were held at different times and in collaboration with active community groups to accommodate the needs of low-income residents, particularly persons with Limited English Proficiency.

#17..
- 842 -
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Lead Agency Responsibility
Agency Role Name Department/Agency
Lead Agency MODESTO, CA Community & Economic
Development Department
CDBG Administrator MODESTO, CA Community & Economic
Development Department
HOME Administrator MODESTO, CA Community & Economic
Development Department
ESG Administrator MODESTO, CA Community & Economic
Development Department
Table 1 – Responsible Agencies
Narrative (optional)
The City of Modesto’s Community and Economic Development Department, Community Development Division is the lead agency responsible for preparation of the Consolidated Plan and administration of each grant program and its associated funding source(s). Primary oversight of the City’s HUD entitlement grant programs comes from the Citizens’ Housing and Community Development Committee (CH&CDC). This committee is appointed by the City Council and is comprised of representatives from the City Council, Planning Commission, Equity Commission, Housing Rehabilitation Loan Committee and several citizens-at-large. Generally, the citizens-atlarge represent low-income and racial minority groups. The CH&CDC makes funding recommendations to the City Council regarding HUD CDBG, HOME, ESG, and/or State funded programs related to housing and community development.

The CH&CDC meets approximately once a month. The meetings are publicly noticed, open to the public, and are generally held at Tenth Street Place, 1010 Tenth Street, Modesto, California. special accommodations may be made upon request and the meetings may be accessible virtually.

Public comments are both encouraged and welcomed.

To avoid a perceived conflict of interest, any CH&CDC member who is also a member of a board of directors or is employed by an agency that applies for or receives CDBG, ESG, HOME, or other HUD funding, is ineligible to vote on funding decisions involving their respective agencies.

Consolidated Plan Public Contact Information
The following are various ways in which an interested party can contact the City of Modesto Community Development staff with comments regarding the City’s Consolidated Plan:

#17..
- 843 -
• Telephone: (209) 577-5211
• Hearing Impaired dial, the California Relay Service Number: Dial 711, and then ask for 209- 577-5211
• Email: [email protected]
• In person: City of Modesto, Community & Economic Development Department 1010 Tenth Street, 3rd Floor, Modesto, California, 95354
• Mail: City of Modesto, Community & Economic Development Department Community Development Division, P.O. Box 642, Modesto, California 95353 • By web form: https://www.modestogov.com/FormCenter/Community-EconomicDevelopment-Departmen-5/Public-Comments-for-HUD-documents-98 AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City follows the City Council approved Citizen Participation Plan which serves as the guide for engaging with citizens and consultation with respective entities. The City of Modesto encourages citizen participation in the Annual Action Plan process and views itself as an active partner; directly engaging with the public and facilitating opportunities for citizens and stakeholders to engage with the process.

The City of Modesto consulted with various organizations, service providers, and other community stakeholders in drafting the Annual Action Plan. Consultation with service providers not only takes place during the development of the Annual Action plan but occurs throughout the year as part of the City’s engagement in the Community System of Care, Stanislaus Homeless Alliance, and other local community forums. The City values the consultation and collaboration with stakeholders and service providers as it is key in ensuring that meaningful dialogue takes place to implement successful strategies to address underserved community needs and optimize the utilization of HUD resources effectively.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City is an active member of several committees and working groups that represent organizations in housing and social services. For example, the City regularly attends the Stanislaus Community System of Care – CSOC (the local Continuum of Care) meetings (note: the CSOC and CoC may be referenced interchangeably throughout this document). The CSOC is comprised of service providers from multiple sectors including but not limited to affordable housing, private and governmental health, mental health, youth services, senior services, and lived experience. These meetings are held monthly and work to address potential issues and gaps in the service delivery system and create a transparent and collaborative service delivery systems for the entire County.

#17..
- 844 -
The City also has both inter/intradepartmental coordination through regular meetings and discussions. The Community Development Division (CDD) regularly meets with sub-recipients and partners of HUD funded programs. Similarly, the City also engages in Memorandums of Understanding (MOUs) to clearly dictate program goals and reporting requirements to ensure all governmental and non-governmental organizations involved in HUD-funded programs understand expectations.

The City works closely with the Stanislaus Regional Housing Authority (SRHA) as well as the Stanislaus County Affordable Housing Corporation (STANCO). This working relationship is evident through consistent productive partnerships on affordable housing projects, rehabilitation and maintenance of existing affordable/subsidized housing projects and shelters, and regular communication to address needs and shifting trends in the community.

The City works closely with the Stanislaus County Department of Behavioral Health and Recovery Services (BHRS) in the system delivery of housing services. BHRS provides a Housing Support Services Program which includes an array of support services for individuals facing barriers that include low income, severe mental illness, substance abuse, and other disabling conditions. The program offers a combination of affordable housing and support services designed to help individuals and families use housing as a platform for wellness and recovery following a period of homelessness, hospitalization, or incarceration. The goal of Housing Support Services is to assist individuals in obtaining employment, independent living skills, recovery and increased selfsufficiency, and housing stabilization. In addition, BHRS provides Employment Support Services to individuals with psychiatric disabilities who are working towards employment and housing goals.

The program provides an opportunity for individuals with severe mental health disabilities to work in the community. BHRS and the City work together to leverage HUD funding and other resources to partner with local affordable housing developers such as the SRHA and STANCO.

The City also coordinates with the Stanislaus County Community Services Agency (CSA) which is responsible for the administration of multiple housing and homeless programs associated with the administration of the General Assistance, CalWORKs, Welfare to Work, Child Welfare, and Adult Services programs. The housing and homeless programs include the Housing Assistance Program (HAP), the Transitional Housing Plus Program (THP+), the Housing Support Program (HSP), the Housing Disability Advocacy Program (HDAP), the Homeless Emergency Aid Program (HEAP), and Homeless Housing, Assistance, and Prevention Program. As with BHRS, the City partners with housing developers and CSA in the delivery of services and/or affordable housing projects to serve the target populations.

The City of Modesto is an active participant in the monthly Hospital Discharge Planning managed by the Hospital Council for Northern and Central California. The purpose of this group is to assist local healthcare providers and homeless service providers communicate to ensure that safe, equitable, and responsible discharge planning when someone who is homeless is discharges with

#17..
- 845 -
the appropriate level of care to the correct facility type. The meetings have identified several gaps in the local service delivery and coordination of services and the group continues to work collaboratively to identify long-term solutions.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The City is an active member of the Stanislaus County CoC as well as the Stanislaus Homeless Alliance (SHA). The CoC and the SHA support all service delivery mechanisms as they relate to working to end and address homelessness.

The City regularly coordinates with the CoC, the SHA, as well as individual stakeholders including during the development of this Annual Action Plan. Coordination with the CoC consists of:
• Meetings with the CoC at large as well as the CoC subcommittees such as the CoC Executive Committee, NOFO Review Committee, Homeless Management Information System (HMIS) Subcommittee and HMIS Governance Committee., Point-In-Time (PIT) and Housing Inventory Count (HIC) Committee, Coordinated Entry System Committee, Regional Coordinating Committee, Vulnerable Populations Committee, Funding and Resource Committee, and Housing Planning & Development Committee.
• The City of Modesto participates in weekly Coordinated Entry meetings in an effort to fill vacant housing units in the community.
• The City regularly coordinates with service providers including but not limited to Community Housing and Shelter Services, BHRS, CSA, SRHA, STANCO, Family Promise, HAVEN, Children’s Crisis Center, CASA, The Salvation Army, Center for Human Services, Downtown Streets Team, Turning Point, and County Veterans Services in efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. Coordination with these entities occurs via monitoring meetings, CoC meeting interactions, client service referrals, and or/program planning.
• The City participates in monthly meetings with hospital management representatives and homeless shelter providers in an effort to improve the discharge process of homeless individuals from hospitals and respective systems.
• The City participates in the monthly project development meetings to establish a regional Interim Care facility to help with homeless placement for individuals with higher level medical needs. • The City’s Community Development Division actively participated in the Modesto Housing Plan to address regulation and zoning for Affordable and other types of Housing. • The City regularly meets with Latino Emergency Council to increase awareness within the Latino community and service providers.
• The City consults regularly with the local community groups and neighborhood collaboratives when forming funding priorities.
• Through the Camp2Home program, the City continues to coordinate with law enforcement in the implementation of the Community Health and Assessment Team (CHAT) to conduct street outreach and connect homeless individuals to shelter and supportive services. • The Camp2Home program further developed collaboration with the City of Modesto, ACES Emergency Shelter, the Salvation Army, Family Promise, Modesto Gospel Mission, Downtown

#17..
- 846 -
Streets Team, Community Housing and Shelter Services (CSOC member providers), Opportunity Stanislaus, and Workforce Development for a comprehensive approach to breaking the cycle of homelessness through job training, placement, and housing while protecting those most vulnerable to the COVID-19 pandemic.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Modesto includes CoC members in the grant review process to assist with grant application review. Members review and score applicant applications based on past performances and outcomes, current proposals and assist with the determination of how to best allocate both CDBG and ESG program funding. Award recommendations are then vetted through the CoC and CH&CDC committees for endorsement and forwarded to City Council for review and approval.

The City of Modesto uses the System Performance Measures Report captured annually by HMIS to evaluate ESG assisted project outcomes. The performance measures help evaluate the performance to determine the most effective services and assist with future allocation of ESG funds.

The City collaborates with the CoC for continued management of the Homeless Management Information System (HMIS). HMIS collects client-level data and data on the provision of housing and services to homeless individuals, families, and persons at risk of homelessness. Analysis from the data is used to identify gaps in services and better deploy resources in the community. The CoC encourages greater participation from non-HUD funded organizations into HMS by providing assistance and ongoing training with HMIS data collection, data entry, and free licensing. The CoC’s HMIS provides ongoing support and training to both funded and non-funded organization to meet HUD’s requirements as outlined in the current HMIS Data Standards. Data collected includes length of homelessness, returns to homelessness, number of sheltered homes persons, employment and income growth for persons, services provided, homelessness start date, and exit destination information, and permanent housing retention.

The City participates in monthly HMIS Subcommittee meetings. These meetings serve to provide guidance, training, and information to end users with regards to system implementation according to HUD’s HMIS Data and Technical Standards. The subcommittee reviews system updates and changes, review and update policy and procedures, review data quality, system performance, and any HUD or related updates. In addition, ongoing training is provided with focus on User Policies and Responsibilities, federal reporting, data quality, coordinated entry, along with agency office hours and one on one support.

#17..
- 847 -

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

1. Agency/Group/Organization
Stanislaus Regional Housing Authority

2. Agency/Group/Organization Type
a. Housing
b. PHA
c. Services – Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs
c. Homeless Needs - Chronically homeless
d. Homeless Needs - Families with children
e. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Consulted via ongoing collaboration of housing projects that the City has well as coordination during CSOC (CoC) meetings. Anticipated outcomes include the identification of gaps and services and continued partnership in delivery of affordable housing projects and services with the end goal of serving low income and homeless households in the most effective an efficient manner.

1. Agency/Group/Organization
Healthy Alternatives to Violent Environments (HAVEN)

2. Agency/Group/Organization Type
Services-Victims of Domestic Violence

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Non-Homeless Special Needs
c. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

STANISLAUS COUNTY

2. Agency/Group/Organization Type
Other government - County

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Strategy
f. Non-Homeless Special Needs

#17..
- 848 -
g. Anti-poverty Strategy
h. COVID-19 Pandemic Services
i. Other: SRA for Earthquake, Landslide, Dam Failure, Wildfire, and Flooding.

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? City and County staff collaborate on an ongoing basis to address homeless needs in the community.

The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

THE SALVATION ARMY - MODESTO CA

2. Agency/Group/Organization Type
Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As one of the largest homeless services providers, located in and serving Modesto, this agency provides insight on the needs and issues the homeless population are facing. The anticipated outcome is that the City and County governments continue to work closely with this agency to increase its capacity with the goal of delivering effective and efficient services to the homeless population as well as improving program related requirements.

1. Agency/Group/Organization

THE DISABILITY RESOURCE AGENCY FOR INDEPENDENT LIVING (DRAIL)

2. Agency/Group/Organization Type
a. Services-Elderly Persons
b. Services-Persons with Disabilities

3. What section of the Plan was addressed by Consultation? a. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Stanislaus County Community Services Agency

2. Agency/Group/Organization Type

#17..
- 849 -
a. Health Agency
b. Child Welfare Agency
c. Publicly Funded Institution/System of Care
d. Other government - County

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Economic Development
i. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Turning Point Community Programs

2. Agency/Group/Organization Type
a. Services - Housing
b. Services-Persons with Disabilities
c. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Strategy
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As the operator of the Outreach and Engagement Center and Housing Assessment Team, the anticipated outcome is that the City and County governments continue to work closely with this agency to increase its capacity with the goal of delivering effective and efficient services to the homeless population as well as improving program related requirements.

1. Agency/Group/Organization
Community Impact Central Valley

2. Agency/Group/Organization Type
a. Housing
b. Services-Persons with Disabilities

#17..
- 850 -
c. Services-Persons with HIV/AIDS
d. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. HOPWA Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As a housing provider serving persons with HIV/AIDS, the CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
West Modesto King Kennedy Neighborhood Collaborative and People of Action Council

2. Agency/Group/Organization Type
a. Housing
b. Regional organization
c. Business and Civic Leaders
d. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The neighborhood collaborative was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
Airport Neighborhood Collaborative

2. Agency/Group/Organization Type
a. Services-Children
b. Services-Education
c. Regional organization
d. Business and Civic Leaders
e. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy

#17..
- 851 -
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The neighborhood collaborative was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
City of Turlock

2. Agency/Group/Organization Type
Other government - Local

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Market Analysis
i. Economic Development
j. Anti-poverty Strategy
k. COVID-19 Strategies

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As a member of the CSOC and an entitlement community of CDBG and HOME funds, the City seeks to improve the coordination of regional housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Parent Resource Center

2. Agency/Group/Organization Type
a. Services-Children
b. Services-Health
c. Services-Education

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Homelessness Strategy
c. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?

#17..
- 852 -
The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
United Way

2. Agency/Group/Organization Type
a. Services-Health
b. Services-Education
c. Services-Employment

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Economic Development
h. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
United Samaritans Foundation

2. Agency/Group/Organization Type
a. Services-homeless
b. Foundation

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

PROJECT SENTINEL

2. Agency/Group/Organization Type

#17..
- 853 -
Service-Fair Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As the fair housing provider in Stanislaus County, the anticipated outcome is to continue coordination with this agency to provide essential fair housing services to the community.

1. Agency/Group/Organization
Modesto Police Department/Law Enforcement

2. Agency/Group/Organization Type
a. Services - Victims
b. Other government - Local
c. Services - Law Enforcement

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Anti-poverty Strategy
i. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC as well as part of the implementation of the Camp2Home program and HEART and CHAT team engagement. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

CHILDREN'S CRISIS CENTER

2. Agency/Group/Organization Type
a. Services-Children
b. Services-homeless
c. Services-Education

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Unaccompanied youth
d. Homelessness Strategy
e. COVID-19 Pandemic Services

#17..
- 854 -

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Opportunity Stanislaus

2. Agency/Group/Organization Type
a. Services-Education
b. Services-Employment
c. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Economic Development
b. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. Anticipated outcomes are to continue to collaborate to continue to provide economic development opportunities for low-income persons and/or provide assistance to small businesses.

1. Agency/Group/Organization
Family Promise of Greater Modesto

2. Agency/Group/Organization Type
a. Housing
b. Services - Housing
c. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Center for Human Services

2. Agency/Group/Organization Type
a. Services-Children
b. Services-homeless

#17..
- 855 -

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Homelessness Needs - Unaccompanied youth
c. Homelessness Strategy
d. Non-Homeless Special Needs
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Stanislaus Homeless Alliance

2. Agency/Group/Organization Type
a. Other government - County
b. Other government - Local
c. Regional organization
d. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
Stanislaus County Hospital & Shelter Partners

2. Agency/Group/Organization Type
a. Health Agency
b. Regional organization
c. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth

#17..
- 856 -
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Homeless Needs - Discharge Planning

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? This is a group of partner agencies and hospitals that meet to discuss and coordinate hospital and medical facility discharge policies and issues for homeless individuals.

1. Agency/Group/Organization
Comcast

2. Agency/Group/Organization Type
Broadband Service Provider

3. What section of the Plan was addressed by Consultation? Other: Digital Access for disadvantaged Communities

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
San Joaquin Air Quality District

2. Agency/Group/Organization Type
Regional organization

3. What section of the Plan was addressed by Consultation? Other: Air Quality Mitigation SRA for Hazard Mitigation

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration prior to any project. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
State Historic Preservation Office

2. Agency/Group/Organization Type
Government – State of California

3. What section of the Plan was addressed by Consultation? Other SRA for Historic Preservation for Hazard Mitigation

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration prior to any project. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
Modesto City Schools

2. Agency/Group/Organization Type
Regional organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment

#17..
- 857 -
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Homeless Needs - Discharge Planning
h. Other Broadband Digital Divide

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region. This includes meeting the needs of the low-income community access to broadband.

1. Agency/Group/Organization
Federal Communications Commission

2. Agency/Group/Organization Type
Federal Government Agency

3. What section of the Plan was addressed by Consultation? Other Broadband Digital Divide

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region. This includes meeting the needs of the low-income community access to broadband.

1. Agency/Group/Organization
Stanislaus Equity Partners STEP

2. Agency/Group/Organization Type
a. Housing
b. PHA
c. Services – Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs
c. Homeless Needs - Chronically homeless
d. Homeless Needs - Families with children
e. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Consulted via ongoing collaboration of housing projects that the City. Anticipated outcomes include the identification of gaps and services and continued partnership in delivery of affordable housing projects and services with the end goal of serving low income and homeless households in the most effective an efficient manner.

1. Agency/Group/Organization
a. Faith in the Valley

2. Agency/Group/Organization Type

#17..
- 858 -
a. Housing
b. Regional organization
c. Business and Civic Leaders
d. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Faith in the Valley was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
Community Housing and Shelter Services

2. Agency/Group/Organization Type
a. Housing
b. Services - Housing
c. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Youth for Christ

2. Agency/Group/Organization Type
a. Services- Education
b. Services-Youth

3. What section of the Plan was addressed by Consultation? a. Homelessness Needs - Unaccompanied youth
b. Homelessness Strategy
c. Non-Homeless Special Needs

#17..
- 859 -

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

Identify any Agency Types not consulted and provide rationale for not consulting No agency or organization was specifically left out of the consultation process.

#17..
- 860 -
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
General Plan City of Modesto The plan outlines community growth strategies and the need to include housing and services among those strategies
Housing
Element
City of Modesto Goals of the City’s Housing Element of the General Plan were considered when preparing the Annual Action Plan. The goals of the Annual Action Plan address some of the housing needs identified in the Housing Element.
https://www.modestogov.com/2099/Housing-Element
Continuum of
Care
Consolidated
Application
Stanislaus County The goals of the CoC’s annual submissions to HUD are similar in that they address the coordination, needs and goals of housing service providers and participating jurisdictions.

Stanislaus
2021 Regional
Strategic Plan
to Address
Homelessness
Stanislaus Community
System of Care (CoC)
The City’s Strategic Plan addresses homelessness via various funded projects/activities including ESG, CDBG, or HOME funds.

Strategic Plan City of Modesto The City of Modesto’s Strategic Plan includes efforts on how to address homelessness and affordable housing.

Public Housing
Agency (PHA)
Plan
Stanislaus Regional
Housing Authority
Both include the need to increase affordable housing stock and integrate quality services
Permanent
Local Housing
Allocation Plan
City of Modesto Plan includes a five-year funding strategy in conjunction with our Consolidated Plan to increase permanent affordable
housing to the City of Modesto as part of the State of
California’s Building Homes and Jobs Act (SB2, 2017)
Action Plan for
Preventing
and Ending
Homelessness
in California
State of California –
Homeless
Coordinating and
Finance Council
This Action Plan orients the State’s efforts to drive purposeful, meaningful, and measurable progress toward preventing and ending homelessness in California, motivated by a vision of a future in which homelessness in California
Broadband
Infrastructure
Deployment
Public Utilities
Commission
Order Instituting Rulemaking Regarding Broadband
Infrastructure Deployment and to Support Service Providers in the State of California. Broadband Deployment, Affordability, and Digital Equity Programs (ca.gov)
2022-2027
Local Hazard
Mitigation
Plan
Stanislaus County –
Office of Emergency
Services
The Stanislaus County Office of Emergency Services in
collaboration with the cities of Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock, Waterford, and the County Office of Education is updating their 2017 Local Hazard Mitigation Plan (LHMP). The LHPM 2017 recognized earthquakes, floods, dam inundation, landslides and wildfire as the local natural hazards.
https://www.stanoes.com/pdf/lhmp/Annex-C-City-ofModesto.pdf Home ARP
Plan
City of Modesto The American Rescue Plan (ARP) provides $5 billion to assist individuals or households who are homeless, at risk of
homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and noncongregate shelter, to reduce homelessness and increase

#17..
- 861 -
housing stability across the country. These grant funds will be administered through HUD’s HOME Investment Partnerships Program (HOME).

Table 2 – Other local / regional / federal planning efforts Narrative (optional)
The City’s Strategic Plan and Annual Action Plans align with the overall vision and goals of each of the plans identified in Table 3. Collaboration with these plans and lead organizations ensure we continue on the path to improving living conditions.

Hazard Mitigation
Based on the Regional Hazard Mitigation Plan update adopted in 2022, the following hazards were assessed and reviewed based on their risks in conjunction with climate changes.

Earthquake Hazard
The City regularly updates its building codes to meet minimum standards in the California Building Code (CBC) last updated in 2019. Compliance with the 2019 CBC ensures construction standards are met and hazards risks related to earthquake, landslides, flood, severe weather, and wildfire are minimized. Within the City limits of Modesto, the risk is to the vulnerable populations is unknown.

Landslide Hazard
Landslides hazards were assessed for the City and based on the analysis and mapping neither hazard resulted in significant vulnerabilities or impacts. Within the City limits of Modesto, the risk is minimal to the vulnerable populations.

Dam Failure Hazard
The vulnerable populations within the City limits could be impacted by a Dam failure. Probability of this is considered very low, but in the event, it is noted that; vulnerable populations are downstream from a potential dam failure. Though there were no incidents this year, our Street Outreach teams are notified when water will be sent down river from the Dam, so that the vulnerable populations are notified in time to ensure safety and secure property.

Flood Hazard
The vulnerable populations within the city limits could be impacted by extreme flooding and the probability is considered high for recurrence as there is an incident recorded approximately every 14 years. Probability of this is considered high, emergency officials have received notice of potential flooding before the incident giving first responders time to notify and evacuate

#17..
- 862 -
residents. The more vulnerable populations are those who are not able to self-evacuate including the elderly, young and those with disabilities. The homeless population is vulnerable in a flood incident and may need expanded notification and relocation efforts. The homeless outreach teams managed by Law enforcement have coordinated and prioritized the notification of homeless. Based on the history of flooding in the County of Stanislaus, the City of Modesto and surrounding areas are considered likely to have the hazard potential for future flooding. The City also participates in the National Flood Insurance Program (NFIP); therefore, the flood hazards are addressed in this vulnerability assessment for public awareness and planning purposes.

Wildfire Hazard
Though the risk in our County is extremely high, these areas are located well west and east of the city limits of Modesto. The only current risk to the vulnerable residents of the City would be air quality should an event arise within the County’s State Responsibility Areas (SRA). Air Quality mitigation and emergency protocols are managed by the San Joaquin Air Quality District. Wildfire hazards were assessed for the City and based on the analysis and mapping neither hazard resulted in significant vulnerabilities or impacts.

Broadband Needs of Low-Moderate Income Housing
To increase local accessibility to free WIFI, the city has opened Free public WIFI access to the to the immediate areas surrounding the downtown Tenth Street Place building. This being open to the public, allows anyone including homeless and low-income households without access to WIFI, if they have a WIFI accessible device, they can easily access key online services.

On November 15, 2021, the Infrastructure Investment and Jobs Act (Infrastructure Act) provides $14.2 billion to modify and extend the Emergency Broadband Benefit Program (EBB Program) to a longer-term broadband affordability program called the Affordable Connectivity Program (ACP).

The Infrastructure Act directs the Federal Communications Commission (FCC) to undertake a proceeding to adopt final rules for the ACP.

This program has been enacted by locally through the following carriers Spectrum, Xfinity/Comcast, AT&T, and the FCC Emergency program. Each program offers their services under differing criteria, such as school enrollment, SNAPS or Medicaid enrollment, etc. with price range of $5.00-$10.00 per month. This program is actively promoted through the local school systems and homeless and housing service providers. According to data collected by the ., on behalf of the FCC, 15,311 Modesto low-moderate-income residents have taken advantage of this program. Not unsurprising the majority, or approximately 23,009 households as of February 8, 2024, are from the zip codes that make up Modesto’s most vulnerable areas.

#17..
- 863 -
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting In order to ensure maximum participation in the AAP process among all populations and special needs groups and to ensure that their issues and concerns are adequately addressed, the City of Modesto has a Citizen Participation Plan (CPP). The community outreach process included virtual and hybrid community meetings, CH&CDC public committee meetings, and a City Council Public Hearing.

All community meetings are open to the public, and in addition to newspaper publications, notices of the meetings were distributed via e-mail, and hard copy posting. Community meetings provide a forum for citizens to participate in matters related to the City’s HUD Programs as well as provide staff an opportunity to review policy issues and obtain public feedback.

In compliance with Citizen Participation requirements, the City encourages citizen participation among all community sectors including but not limited to low and moderate income persons, residents from blighted areas predominantly low and moderate income neighborhoods, areas where CDBG funds are proposed for use, minorities, non-English speaking persons, persons with disabilities, public housing residents, and local and regional institutions including the CoC, businesses, developers, and non-profit organizations, among others.

The public comment period was held from April 07, 2024, through May 07, 2024. During the Citizen Participation process, community meetings were held to inform community groups of the 2024-2025 Annual Action Plan (AAP) and the programs offered by the various funding sources covered under the AAP. Comments received at meetings were considered for goal setting. An AAP publication announcing the AAP citizen participation process was published in the Modesto Bee in both Spanish and English. Dates, times and locations of community meetings as well as public hearings were published through these mediums and are summarized in Table 4 below.

#17..
- 864 -
Citizen Participation Outreach
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
News Paper Ad –
Modesto Bee
• Nontargeted/broa
d community

N/A N/A
Email - CSOC Listserv • Homeless
• Homeless
Service
Providers

N/A N/A
Email - City of Modesto
Listserv
• Nontargeted/broa
d community

N/A N/A
Email - SHA Listserv • Nontargeted/broa
d community

N/A N/A
Stanislaus Community
System of Care
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
West Modesto
Collaborative
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting

#17..
- 865 -
Citizen Participation Outreach
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Virtual Community
Meeting - Airport
Neighborhood
Collaborative
• Minorities
• Non-English
Speaking –
Spanish
• Low to
Moderate
Income
residents
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
•
Hybrid Community
Meeting – CH&CDC
• Nontargeted/broa
d community
To be provided after the
meeting
To be provided after the meeting
Public hearing – Hybrid
City Council
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
Table 3 – Citizen Participation Outreach

#17..
- 866 -
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
During Program Year 2024-2025, the City of Modesto estimates it can allocate $1,8,000,000 of Community Development Block Grant (CDBG) program funds, $900,000 of HOME Investment Partnerships (HOME) Program funds, and $161,451 of Emergency Solutions Grant (ESG) funds.

The table below is a summary of draft expected resources in PY 2024-2025 this is subject to change based on actual allocations presented by HUD
Anticipated Entitlement Resources
Program Eligible Use
Annual
Allocation
Program
Income
Prior Year
Resources Total
Amount
remaining in
Con Plan Program Description
CDBG –
Public
Federal
Acquisition,
Admin and
Planning,
Economic
Development,
Housing, Public
Improvements,
Public Services
$ 1,800,000 $ 265,000 $ 1,603,336 $ 3,997,216 $ 0.00 Expected Uses:

Program
Administration; Public
Services; Housing
Programs; Fair
Housing Enforcement;
Public Facility
Improvements
Homeless Services
HOME –
Public
Federal
Acquisition,
Multifamily
rental new
construction,
Multifamily
rental rehab,
New
Construction
$ 900,000 $ 150,000 $ 6,825,365 $ 7,875,365 $0.00 Expected Uses: Rental Housing Rehabilitation
Rental Housing New
Construction
ESG –
Public
Federal
Shelter, HMIS,
Outreach, Rapid
Rehousing,
Homeless
Prevention.
$ 161,451 $ 0 $ 0 $ 161,451 $ 0 Expected Uses:

Homeless Services
Homeless Prevention
Rapid Re-Housing

#17..
- 867 -
Available One-Time Allocated Resources
Program Eligible Use One-Time
Allocation
Program
Income
Allocated
Resources
Total Program
Description
HOMEARP –
Public
Federal
American Rescue
Plan: Creation of
Affordable Housing,
Administration
$ 3,409,774 $ 0 $ 0 $ 3,409,774 Expected Uses:

Program
Administration;
Development of
Affordable
Housing
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Leveraging HUD resources allows the City to use local, state, and other funds to combine with federal resources to maximize reach and impact of the City’s HUD funded programs. Through the vetting of project applications for HUD funding, the City emphasizes the importance of leveraging to potential applicants. The City uses a project scoring system that places higher weight and rewards project applicants with higher level of leveraged funds. During the project planning phase and prior to project award, the City verifies that leverage funds pledged in the project application have been awarded/committed to the respective applicant/project. The City continues to search for other Federal and State funding to use a leverage. Among some of the City’s leverage resources, the City receives a Permanent Local Housing Allocation from the State as well as per project grants such as the State’s Homekey and Affordable Housing and Sustainable Communities grant programs that will further supplement Federal funding to assist with addressing the goals outlined in the 2020-2024 Consolidated Plan and this Annual Action Plan.

The following are the HUD matching requirements for the ESG and HOME programs:

ESG Match Requirements:

For the ESG program, the City requires that ESG sub-recipients provide a dollar-for-dollar match for PY 2024-2025 ESG funds received. Typically, the City is able to generate significantly more match than the amount required through its allocation of CDBG funds for ESG activities and primarily through the cash and non-cash contributions provided by ESG sub-recipients as a result of the generosity of their donors, supporters, and other funders.

Cash contributions mean cash expended for allowable ESG costs, while noncash contributions mean the value (using a method reasonably calculated to establish fair market value) of any real property, equipment, goods, and services contributed to an ESG activity, provided that if

#17..
- 868 -
these had to be paid with ESG funds, the costs would have been allowable.

Specific sources of cash contributions include: private individual donors, CDBG funds, local fundraising cash, state and local funds, foundation grants, and in-kind contributions (value of inkind contributions must be reasonable and the method used to establish value must be provided).

HOME Match Requirements:

The City requires a 25% HOME match requirement that are met through the contributions or layers of funds that the developers provide for each HOME -assisted project. The match includes private financing, waiver or deferral of development fees approved by the City Council, Tax Credit Allocations, and other eligible source.

State Housing and Community Development Sources
In addition to federal resources, the State of California provides funding for affordable housing development, homebuyer programs, transit-oriented development, special needs housing, and infrastructure. Most projects that the City supports are through partnerships with local organizations who leverage significant amounts of resources. The following is a list of sources that, through such partnerships, the City has either directly or indirectly accessed in the past or seeks to access in the future:
• Low-Income Housing Tax Credit Program: administers both federal and State programs that encourage private investment in affordable housing. • Permanent Local Housing Allocation (PLHA) Program: funding for new affordable housing units for those households between 30-120% AMI. • Affordable Housing and Sustainable Communities (AHSC) Program: funding for Green House Gas reducing-transit oriented affordable housing development and transportation-related infrastructure.
• No Place like Home (NPLH) - To acquire, design, construct, rehabilitate, or preserve permanent supportive housing for persons who are experiencing homelessness, chronic homelessness or who are at risk of chronic homelessness, and who need mental health services.
• HomeKey – HCD administered funding that provides opportunity for state, regional, and local public entities to develop a broad range of housing types, including but not limited to hotels, motels, hostels, single- family homes and multifamily apartments, adult

#17..
- 869 -
residential facilities, and manufactured housing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population. • Mental Health Services Act (MHSA): State funds administered at the county level to serve low-income mental health services clients.
• Homeless Emergency Aid Program (HEAP): a $500 million block grant program designed to provide direct assistance to cities and counties to address the homelessness crisis throughout California. HEAP funds are intended to provide funding to Continuums of Care (CoCs) and large cities with populations over 330,000, so they may provide immediate emergency assistance to people experiencing homelessness or those at imminent risk of homelessness.
• California Emergency Solutions and Housing (CESH) Program: provides funds for a variety of activities to assist persons experiencing or at risk of homelessness as authorized by SB 850.
• Homeless Housing, Assistance, and Prevention Program (HHAP): HHAP is a block grant program designed to provide jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges. • California Advancing and Innovating Medi-Cal (CalAIM): CalAIM is a 1.85 billion initiative to build up the capacity and infrastructure of on-the-ground partners such as community-based organizations (CBOs), public hospitals, county agencies, tribes, and others, to successfully participate in the Medi-Cal delivery system as California widely implements Enhanced Care Management and Community Supports and Justice Involved services under CalAIM.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Discussion
One of the challenges in building new affordable homes is acquiring land suitable for housing.

In 2019, the State of California took several actions to make state and local public lands available for affordable housing development including:
• An executive order to make excess state land available for affordable housing • Connecting affordable housing developers to local surplus land and strengthening enforcement of the Surplus Lands Act
• Requiring cities and counties to inventory and report surplus and excess local public lands to include in a statewide inventory and to report on all land suitable for suitable and available for housing development.

#17..
- 870 -
• Requires local agencies to have a centralized inventory and provide it to requesting parties without charge.
• State requires that land that can be zoned for emergency shelters can also be used for supportive housing
The City is currently working on the identification of appropriate City owned properties to meet this requirement with the intent to continue to add to the City’s affordable housing stock.

During this year, the City implemented a new asset management system to aid in the identification of property that can be utilized for affordable housing. The intent is to transfer eligible properties to non-profit organizations to utilize the properties for low-income households or rehabilitate the units and sell them to a low-income household.

To help meet the needs of the rising number of individuals experiencing homelessness, the City has released a request for qualifications (RFQ) for bridge housing. This includes request for qualifications for host sites, site operators and service providers. The City in partnership with the County is proposing the utilization of City owned cite for this alternative housing model.

#17..
- 871 -
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information – The table below estimates the expected resources that can be made available to each Consolidated Plan goal. Amounts within each goal may be adjusted up or down based on the actual HUD allocations. Adjustments within each goal will be in direct correlation to the regulatory percentage caps as defined by 24 CFR 570.201 and 24 CFR 576.100.

Goal Name Years Category Needs
Addressed
Funding* Goal Outcome
Indicator
Improve the
Condition and
Increase Supply
of Affordable
Housing
2020 -2024 Affordable
Housing
Non-Housing
Community
Development
Affordable
Housing
CDBG: $ 2,714,299
HOME: $ 7,105,809
ESG: $0
HOME-American
Rescue Plan:
$2,898,308
Rental units
constructed:
167 Household
Housing Unit
Homeowner
Housing
Rehabilitated:
20 Household
Housing Unit
Work Towards
Addressing and
Preventing
Homelessness
2020 -2024 Homeless Addressing
and
Preventing
Homelessness
CDBG: $134,000
ESG: $149,342
Public service
activities for
Low/Moderate
Income
Housing
Benefit: 45
Households
Assisted
Homelessness
Prevention: 60
Persons
Assisted
Enhance
Infrastructure
and Public
Facilities
2020 -2024 Non-Housing
Community
Development
Enhance
Infrastructure
and Public
Facilities
CDBG: $0.00
HOME: $0
ESG: $0
HOME-American
Rescue Plan: $0
Public Facility

#17..
- 872 -
Access to Jobs,
Education, and
Other Economic
Development
Services
2020 -2024 Non-Housing
Community
Development
Public
Services
Community
and Economic
Development
CDBG: $136,000 Public Service
Other: 513
Administration 2020 -2024 CDBG: $1,012,916
HOME: $769,556
ESG: $12,108
HOME-American
Rescue Plan: $511,466
NA
Table 4 – Goals Summary
Goal Descriptions
Goal Name Improve the Condition and Increase Supply of Affordable Housing Goal
Description
Through the Needs Assessment, the Market Analysis, public meetings, consultations with stakeholders, and survey results, the lack of affordable housing in the City consistently stood to be the number one issue. The activities tied to this goal will work to preserve and expand the supply of affordable housing.

Goal Name Work Towards Addressing and Preventing Homelessness Goal
Description
Homelessness has become an issue for the region, and because Modesto is the County Seat and the center for most supportive services, the goal of working towards ending homelessness is a goal for the HUD funding. The activities tied to this goal will support getting individuals and families out of homelessness as well as preventing from individuals and families from becoming homeless. The City is engaged in both supporting those agencies that provide services to those that are homeless as well as providing support in housing options across the spectrum: emergency shelters, transitional shelters, rapid re-housing, and permanent supportive housing.

Goal Name Enhance Infrastructure and Public Facilities
Goal
Description
The investment in publicly owned facilities and infrastructure improves the community and neighborhoods in which they serve. This investment directly impacts housing development and economic growth of communities. The activities tied to this goal will improve parks, streets, sidewalks, lighting, ADA accessibility, among other activities that serve residents.

Goal Name Access to Jobs, Education, and Other Economic Development Services Goal
Description
To stimulate the economic growth, the City proposes to address its economic goals through various programs. As the cost-of-living rises, there is a need to assist low- and moderate-income households increase their incomes. Job training and educational opportunities afford low- and moderate-income households an opportunity to increase their earning. The City will continue to explore new partnerships with businesses, developers, and service providers to address community and economic development goals.

Goal Name Administration
Goal
Description
Funding for the administration of the CDBG, ESG, and HOME programs; including section 108 pay-off, HMIS and Housing rehabilitation 14H activities.

#17..
- 873 -
Projects
AP-35 Projects – 91.220(d)
Introduction
Projects
Introduction
The projects to be undertaken in the 2024-25 program year (July 1, 2024 to June 30, 2025) are summarized below. The City will utilize funds available to address the goals outlined in this Consolidated Plan. The specific projects will target affordable housing opportunities through acquisition, rehabilitation, and construction of housing. In addition, the City will provide public services including homelessness services and economic development activities. The City will also provide enhancements to public facilities and infrastructure. The City will continue its efforts to prepare, prevent, and respond to the COVID-19 pandemic.

Projects
Project Number Project Name
1 PROGRAM PLANNING AND ADMINISTRATION
2 HOUSING REHABILITATION ADMINISTRATION ACTIVITY DELIVERY (14H) 3 SECTION 108 LOAN REPAYMENT
4 ECONOMIC DEVELOPMENT
5 PUBLIC FACILITIES
6 AFFORDABLE HOUSING - AQUISITION, REHABILITATION, HOMELESSNESS 7 PUBLIC SERVICES
8 HESG - ENTITLEMENT 2024
9 AFFORDABLE HOUSING - OWNER OCCUPIED REHABILITATION

#17..
- 874 -
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The priority needs described in the Strategic Plan are:
• Affordable housing
• Addressing and preventing homelessness
• Enhance infrastructure and public facilities
• Public services
• Community and Economic development
The funding allocation priorities remain closely connected to these identified needs. Those projects that demonstrate potential to create further progress in addressing these needs will be prioritized.

Beginning in 2020, COVID-19 challenged communities across the nation and required localities to respond to the immediate challenges for the response to COVID-19. In PY 2023, any activities related to the prevention, preparation, and response to COVID-19 will be funded through any of the identified projects in the AP-35 Projects table but will only utilize funding directly to the CARES Act grants.

In the funding of all projects, and in providing assistance to specific beneficiaries, the City will ensure:
• Documentation of the low- and moderate-income status of individuals/households, or • The area where a project benefit will be realized has a population where at least 51% of the residents are low-and moderate-income, or
• A slum and blight project meet the criteria for such projects. The availability of funding from both federal and State sources is a key determinant of the City’s ability to address identified needs. Budget problems at both the Federal and State levels make funding for housing programs uncertain. Partly to make the most of limited resources, the City has formed partnerships with a variety of governmental, non-profit, and service agencies to combine resources to implement programs related to housing and community development needs.

The primary obstacle in addressing underserved needs is the limited financial resources made available to address the needs. Prioritization of funding and associated needs requires that some needs expressed by communities may not be addressed in a given program year.

Other obstacles in addressing needs are:
• Limited services to support the diverse population
• High and increasing cost of land throughout the County present obstacles by further limiting the quantity of projects the City can take on given finite financial resources to acquire land that is becoming increasingly expensive
• Increasing rental rates across the City presents an obstacle in that fewer households may be able to be supported given the funding allocated. The money spent on rental assistance may not go as far given increasing rental costs.
• Coordination gaps between service providers and agencies providing housing • Coordination continues to improve as the CoC becomes more efficient • Prevailing wage requirements increase construction costs for housing, thus increasing the cost of affordable housing development, potentially limiting the number of affordable housing developments in the City

#17..
- 875 -
• Resident perceptions of various services may hinder them from accepting assistance • Current housing market and economic conditions
• Education and dissemination of information to low- and moderate-income residents is a potential obstacle. Although the City has excellent relationships with neighborhood associations and organizations within the different districts in the City, there remains an obstacle of reaching the right people to ensure knowledge of programs available to them.

AP-38 Project Summary - The table below estimates the expected resources that can be made available to each Project. Amounts within each project may be adjusted up or down based on the actual HUD allocations. Adjustments within each goal will be in direct correlation to the regulatory percentage caps as defined by 24 CFR 570.201, 24 CFR 576.100, and 24 CFR 92.

Project Name Project Utilization
Administration • Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding
• CDBG: $413,000
• HOME: $769,556
• HOME-American Rescue Plan: $511,466
• Description This project will fund administrative expenses related to the planning and administration of CDBG and HOME activities including but not limited to development of HUD plans, contract development, project monitoring, and enforcement of federal regulations.
• Target Date: N/A
• Estimate the number and type of families that will benefit from the proposed activities N/A
• Location Description: N/A
• Planned Activities: Activities under this project is for the general administration for CDBG HOME, and HOME-ARP activities.

HOUSING

REHABILITATION

ADMINISTRATION

ACTIVITY DELIVERY
(14H)
• Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding CDBG: $250,000
• Description Activity delivery costs related to carrying out housing rehabilitation activities (rental and owner occupied). Examples include appraisal, architectural, engineering, and other professional services; preparation of work specifications and work write-ups; loan processing; survey, site and utility plans; application processing; and other fees.
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities: N/A
• Location Description: N/A
• Planned Activities: Activity delivery costs related to carrying out

#17..
- 876 -
housing rehabilitation activities (rental and owner occupied).

Examples include appraisal, architectural, engineering, and other professional services; preparation of work specifications and work write-ups; loan processing; survey, site and utility plans; application processing; and other fees.

SECTION 108 LOAN

REPAYMENT
• Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding CDBG: $349,916
• Description: Planned repayment of Section 108 Loan
Principal/interest
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities:
• N/A
• Location Description: N/A
• Planned Activities: Planned repayment of Section 108 Loan Principal/interest

ECONOMIC

DEVELOPMENT
• Target Area: Citywide
• Goals Supported: Access to Jobs, Education, and Other Services • Needs Addressed: Community and Economic Development
• Funding: $0.00
• Description: Partnerships with businesses, developers and service providers to address community and economic development goals including but not limited to the creation and retention of full-time equivalent jobs through grant and loan programs.
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities: This project model is conceptual, so no proposed activities have been considered.
• Location Description: Citywide
• Planned Activities: Partnerships with businesses, developers and service providers to address community and economic development goals including but not limited to the creation and retention of fulltime equivalent jobs through grant and loan programs.

#17..
- 877 -
PUBLIC FACILITIES • Target Area: Citywide
• Goals Supported: Enhance Infrastructure and Public Facilities • Needs Addressed: Enhance Infrastructure and Public Facilities • Funding CDBG: $0
• Description: Improve the physical structures throughout the City in CDBG program eligible areas including but not limited to construction or rehabilitation of public facilities and/or improving infrastructure conditions in LMA neighborhoods. Matrix Code: 03A-04 Regulatory Citation: 570.201(c) National Objective: 570.208(a)(1)
• Target Date: 6/30/2025
• Location Description: LMA neighborhoods within Modesto • Planned Activities: Community Centers, park improvements, homeless facilities, and/or other eligible public facilities.

AFFORDABLE

HOUSING -

AQUISITION,

REHABILITATION,

HOMELESSNESS
• Target Area: Citywide
• Goals Supported: Improve Quality and Increase Affordable Housing • Needs Addressed: Affordable Housing
• Funding :
• CDBG: $2,171,420
• HOME: $7,105,809
• HOME-American Rescue Plan: $2,898,308
• Description: Use CDBG funds for acquisition and/or rehabilitation of property for affordable housing, disability access/improvements, first time homebuyers, lead based paint services, energy efficiency improvements and similar projects. Use HOME funds to leverage funding for the construction and/or rehabilitation of new affordable rental housing units through partnerships with the State, the housing authority, and using tools such as land banking, the revolving loan fund, and housing set-aside funds. Matrix Code: 01-02; 11-19E Regulatory Citation: 570201(a) or (c) National Objective: 570.208(a)(3) • Target Date: 6/30/2026
• Estimate the number and type of families that will benefit from the proposed activities: There is an estimated 91 units created by this activity
• Location Description: Citywide
• Planned Activities: Acquisition, Rehabilitation, Construction of affordable housing units

#17..
- 878 -
PUBLIC SERVICES • Target Area: Citywide
• Goals Supported
• Work Towards Ending Homelessness
• Access to Jobs, Education, and Other Services
• Needs Addressed: Public Services
• Funding
• CDBG: $ 270,000
• Description: Partner with local public service providers to provide essential public services to Modesto residents. Matrix Code: 03T - 05Z Regulatory Citation: 570201(e) National Objective: 570.208(a)(2) • Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities Assist over 742 individuals below 80% of AMI through public service activities
• Location Description: Citywide
• Planned Activities: General Public Service Activities HESG -
ENTITLEMENT 2023
• Target Area: Citywide
• Goals Supported: Work Towards Ending Homelessness
• Needs Addressed: Addressing and Preventing Homelessness • Funding: ESG: $ 161,451
• Description: General Administration and Partner with local nonprofits to provide essential services and outreach to individuals and households at risk for homelessness.
• Target Date: 6/30/2026
• Estimate the number and type of families that will benefit from the proposed activities: Assist over 1,003 individuals and families at risk for homelessness
• Location Description: Citywide
• Planned Activities: Administration, Street Outreach, HMIS, Rapid Rehousing, and Homeless Prevention.

AFFORDABLE

HOUSING - OWNER

OCCUPIED

REHABILITATION
• Target Area: Citywide
• Goals Supported: Improve Quality and Increase Affordable Housing • Needs Addressed: Affordable Housing
• Funding CDBG: $542,879
• Description: Provide direct financial assistance eligible households through the Homeowner Rehabilitation Program to address health and safety repairs. Matrix Code: 14A Regulatory Citation:
570.202(a)(1) National Objective: 570.208(a)(3) LMH
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities: This project is estimated to serve approximately 20 households
• Location Description: Citywide
• Planned Activities: Homeowner Rehabilitation

#17..
- 879 -
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HUD allows for the designation of priority areas that may be a primary focus of revitalization efforts. For the purpose of the Consolidated Plan, priority areas are loosely defined and are not strict and do not require any specific allocation of resources, matching, or partnerships. At this time, the City does not have nor plan to pursue any official HUD designated geographic based priority areas. The City funds program activities City-wide based on the low/mod block groups and/or on a limited clientele National Objective basis as defined by HUD on specific program eligibility (CDBG, HOME, and ESG) and in accordance with the priority needs listed in this section.

Rationale for the priorities for allocating investments geographically The City of Modesto will use a place-based strategy during the planning period. The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City’s intent to fund activities in the areas most directly affected by the needs of low-income residents and those with other special needs. The Annual Action Plan directs investment geographically to an area benefit neighborhood. The area benefit category is the most commonly used national objective for activities that benefit a residential neighborhood. An area benefit activity is one that benefits all residents in a particular area, where at least 51% of the residents are low- and moderate-income persons. Public infrastructure improvements are an area benefit activity when they are located in a predominately low- and moderate-income neighborhood. Where possible, the City of Modesto will distribute CDBG funds throughout the low- and moderate-income block groups located throughout the six city council districts.

Discussion
No additional discussion.

#17..
- 880 -
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City understands the importance of approaching affordable housing from multiple angles: both preserving and maintaining existing affordable housing stock as well as continually looking for opportunities to develop new affordable housing.

The City offers affordable housing programs to support and assist households in obtaining or maintaining their home. The following is a non-exhaustive list of ways that the City promotes affordable housing opportunities:
• The City utilizes affordability covenants on affordable housing units to ensure units remain affordable for a certain extended period of time.
• To mitigate the negative effects of public policies that may pose barriers to affordable housing, the City of Modesto has policies in its impact fee program for affordable housing. The current Capital Facility Fees (CFF) Policies and Procedures provide, with respect to very low- and lowincome housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. • The CFF Policies and Procedures also allow a Community Housing and Development Organization (CHDO) to submit an application and request CFF be waived on new affordable units for households earning sixty (60%) or less of the Area Median Income. • The City of Modesto is reviewing pro-housing policies as part of the Housing Plan to determine they have adopted many of these policies to promote housing in the community and be competitive in State funding sources.
• Whenever possible, the City uses HUD resources to partner with local affordable housing developers and/or other public agencies to build affordable housing projects. This Action Plan identifies any such projects to be planned or carried out this Program Year.

The following are the City’s One Year Goals for Affordable Housing activities to be supported by household:

Households by Population and Housing Production Type
Population Households
Homeless 86
Non-Homeless 20
Special-Needs 11
Total Households 117
Discussion
• Rental Assistance (households; homeless/ non-homeless): 9 Households  Community Housing and Shelter Services (CHSS) will assist a minimum of 7 homeless Types of Housing Production Households
Rental Assistance 9
The Production of New Units 34
Rehab of Existing Units 20
Acquisition of Existing Units 54
Total Households 117

#17..
- 881 -
households with Rapid Rehousing Rental Assistance.
 Turning Point will assist 2 households with Rapid Rehousing Rental Assistance. • Production of new Units (households): 34 Units
 Helen White Court – 413 Vine Street will provide 11 senior units  King Kennedy Veteran’s Cottages – 413 Vine Street will provide 23 permanent supportive housing units
• Rehab of Existing Units (households): 20 Units
 The City will assist 20 households via the City’s owner-occupied housing rehabilitation program.
• Acquisition of Existing Units
 H710 N. 9th Street – 54 homeless units

#17..
- 882 -
AP-60 Public Housing – 91.220(h)
Introduction
In Stanislaus County, public housing needs, housing choice vouchers, affordable housing and other specific Housing and Urban Development (HUD) funds and services are addressed by two housing authorities:
• The Stanislaus Regional Housing Authority, serving Alpine, Amador, Calaveras, Inyo, Mariposa, Mono, Stanislaus, and Tuolumne Counties.
• The City of Riverbank Housing Authority administered by the Stanislaus Regional Housing Authority.

The Housing Authorities are responsible for providing safe, decent, and high-quality affordable housing and services to eligible persons. The Housing Authorities provide the following City of Riverbank Housing Authority:

Owns and Operates 90 Public Housing Units
Stanislaus Regional Housing Authority:

Approximately 4900 HUD Vouchers through the Housing Choice Voucher (formerly Section 8), Continuum of Care (formerly Shelter Plus Care), Veterans Affairs Supportive Housing (VASH), Emergency Housing (EHV), and Mainstream Voucher Programs.

Owns and Operates 647 Public Housing Units
Family Self Sufficiency Programs
Resident Opportunity and Self Sufficiency Programs
In addition to the HUD supported units and vouchers, Stanislaus Regional Housing Authority owns/manages an additional 1150 affordable units.

Actions planned during the next year to address the needs of public housing Housing Authorities are subject to the same state and federal fair housing laws as other housing providers and cannot discriminate on the basis of state or federally protected classes. Housing Authorities must also follow any local fair housing ordinances and may have additional tenant protections added by HUD.

The Housing Authority has been designated as a “high performing” public housing authority by HUD since 2008. This designation is given to public housing authorities (PHAs) that score above a 90 out of 100 points. PHA projects are assessed based on a physical inspection (40 points), financial condition (25 points), management system (25 points), and timely use of capital funds (10 points). The total PHA score is then created out of the average score for all projects weighted by the number of units.

#17..
- 883 -
Like many public housing authorities across the country, the housing authorities in Stanislaus County lack an adequate supply of funding for units and/or vouchers to meet the affordable housing needs within their service areas. This is reflected by long or closed waiting lists for potential units. In Stanislaus County, the average waiting time for a public housing unit is 10 years. Waiting lists for housing choice vouchers are only open occasionally and, even then, sometimes only for select applicants.

PHAs complete both an annual plan and a 5-year plan to help prioritize projects, development, funding, and programs. For 2020-2024, the HACS listed the following goals and objectives (among others) that help affirmatively further fair housing and increase housing choice:

1. Depending on the availability of federal and state funding, increase the inventory of affordable rental housing within the jurisdiction of the Stanislaus Regional Housing Authority for extremely low to moderate income households.

Objectives:
• Housing Choice Voucher Program – Continue to expand upon existing marketing and outreach efforts to attract new landlord participants to the Housing Choice Voucher Program. • Development – Leverage private or other public funds to create additional housing opportunities. • Development – Subject to the availability of funding, develop or acquire 500 affordable housing units over the next five years.

2. Conserve and upgrade the Affordable Housing Inventory in Stanislaus County.

Objectives:
• Public Housing – Implement Asset-Based Community Development (ABCD) initiatives to engage and unite residents, associations and institutions from within each community for more sustainable communities and economic development.
• Administration – Partner with county and/or city staff in efforts to improve housing stock and create stable, viable neighborhoods.

3. Increase assisted housing choices.

Objectives:
• Housing Choice Voucher Program – Provide voucher mobility counseling at initial family briefings and during annual reexaminations.
• Housing Choice Voucher Program – Continue to maintain the 2‐tiered Benefit Payment Standard (BPS) to ensure families have the ability to locate affordable housing in less poverty concentrated neighborhoods.
• Housing Choice Voucher Program ‐ Continue to seek funding for the Individual Development & Empowerment Accounts (IDEA) and Workforce Initiative Subsidy for Homeownership (WISH) programs for graduating Family Self‐Sufficiency (FSS) Program Participants.

The City will continue to leverage opportunities and funding to address needs outlined in the City’s Consolidated Plan and remain cognizant of goal and objective overlaps with the Housing Authority.

#17..
- 884 -
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Housing Authority has a Resident Advisory Board (RAB) which represents the residents assisted by the Housing Authority. The RAB assists in the development of the Housing Authority five-year Plan. Resident involvement will continue to be supported in an effort to enhance the service delivery by taking into account input from those with lived experience.

Efforts to improve communications with residents and program participants include: on site resident training/informational meetings, regular newsletters and flyers. The Housing Authority has implemented a “curbside” appearance program. The focus of the program is the exterior of buildings, parking areas, play grounds and other areas of the complexes. Rodent and insect problems are addressed when residents report a problem and/or on Annual Inspections. In an effort to better education residents concerning these problems, information is regularly provided through the Housing Authority newsletter.

These actions have assisted the Housing Authority in creating an atmosphere which emphasizes customer satisfaction and communication.

The Housing Authority provides homeownership resources to participants in the Housing Choice Voucher Program. The Family Self-Sufficiency (FSS) Program has established partnerships with a variety of community resources to refer participants for services including pre- and post-secondary education, health care, childcare, employment development, supported employment, and small business development including micro-loans. The FSS Program also encourages families to participate in financial wellness programs including financial literacy and credit repair with an emphasis on long-term financial stability for the purposes of homeownership. Supportive services are provided through the Stanislaus County Assistance Project, the Stanislaus County Department of Mental Health, Stanislaus Community Services Agency or Stanislaus County Integrated Services Agency.

These actions have assisted the Housing Authority in creating an atmosphere which emphasizes customer satisfaction and communication.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The PHA is not designated as troubled; since 2008, the Housing Authority has been designated as a “high performing” public housing authority by HUD. This designation is given to public housing authorities (PHAs) that score above a 90 out of 100 points. PHA projects are assessed based on a physical inspection (40 points), financial condition (25 points), management system (25 points), and timely use of capital funds (10 points). The total PHA score is then created out of the average score for all projects weighted by the number of units.

In fact, in 2021, the Stanislaus Regional Housing Authority was recognized by the HUD San Francisco Field Office by the 2021 Innovation, Creativity, and Visionary Award for their current projects. Most recently the Stanislaus Regional Housing Authority was designated as Housing Authority of the Year by

#17..
- 885 -
HUD for Projects like the conversion of a local hotel into a new regional administrative office called “The 1612” which will also include the conversion of hotel units into 144 affordable workforce e studio apartments.

#17..
- 886 -
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City of Modesto participates in the County-wide CoC, or the Stanislaus Community System of Care (CSOC), to develop and implement regional goals and strategies to address and end homelessness. The CoC released its 2021 Regional Strategic Plan to Address Homelessness approved September 30, 2021.

Since the inception of the regional plan, the CoC has been working to further define the execution of this plan and its governing to ensure that it meets the needs of all the populations in the region. This City is an integral part of the implementation committee. A primary function and goal of the CoC is to increase housing stability and decrease incidents of homelessness in Stanislaus County by targeting services and funds to populations most in need, meeting both the immediate and long-term needs of households experiencing homelessness and avoiding the duplication of services by coordinating efforts with service providers and the CoC.

Along with this adopted plan, in recent years the CoC has strategized through working groups and with continued coordination with Stanislaus Homeless Alliance (SHA), a regional body of politically elected individuals that represent their various regions. This revamping of the CoC includes a continued partnership with Thurmond Consulting, resulting in a more efficient CoC Consolidated application and ESG NOFA process which aims to increase CoC funding with a goal to prevent and end homelessness.

The COVID-19 pandemic produced a unique set of public health challenges and intensified community crises that existed long before the coronavirus. These challenges became evident on homelessness and affordable housing, making it more difficult to continue delivering homeless and housing services in traditional ways with the rising health implications associated to these traditional ways.

In response to the COVID-19 pandemic, the US Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which provided several rounds of CDBG and ESG funding to address issues related to the onset of the COVID-19 pandemic. The American Rescue Plan of 2021, continued many of the programs of the CARES Act with the intent that communities do everything possible to prevent, prepare for and respond to coronavirus. As part of the American Rescue Plan, emergency rental assistance was available to help families keep up on their rent and remain in their homes, provide mortgage assistance for homeowners behind on their mortgage payments, and emergency housing vouchers among other assistance types.

The City continues to partner with the CoC, local service providers, businesses, and financial institutions to address lingering COVID-19 issues and concerns related to homelessness with the goal of reducing and ending homelessness via street outreach, homeless prevention, rapid rehousing, and permanent housing options while continuing to mitigate COVID-19 risks.

#17..
- 887 -
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Modesto has actively participated in CSOC's planning process to move individuals and families from experiencing homelessness to permanent housing and independent living through a network of housing linked to supportive services.

The City continues to work with the CoC’s continuum-wide Coordinated Entry System (CES) to assess the needs of individuals experiencing homelessness and match them right services given the unique circumstances which includes consideration for special needs in both housing and supportive services.

The CoC formed a CES Task Force that continues to meet regularly to assist with the continued evolution of the CES and address any issues that arise. The CoC will provide continued training for participating service providers as well as continue developing any necessary tools to effectively manage the system.

Coordinated entry provides assessments used to support collaborative decision-making processes across agencies to provide the appropriate assistance required to support individuals experiencing homelessness or at risk of homelessness with an end goal of minimizing bottlenecks in the service delivery system.

In the coming year, the City will continue to partner with the following organizations or programs which conduct street and assessment of the needs of individuals experiencing homelessness within the community.

1. Camp2Home: Through the Camp2Home initiative, Modesto created a unique set of partnerships and funding that creates a continued streamlined process that will bring individuals out of the cycle of homelessness. This program provides a path to self-sufficiency for people trying to rebuild their lives out of homelessness through five different initiatives: street outreach, shelter, robust job training, permanent employment, and permanent housing. These partnerships include: The Community Health and Assistance Team (CHAT) is a partnership program with the Modesto Police Department (MPD) designed to use trained Outreach Specialists to respond to qualifying 911 calls, received through the 911 communications center. The trained specialists can provide immediate de-escalation, assessment, and follow up services for mental health crises and similar non-criminal, non-violent incidents. The Team currently consists of full-time staff who work in close collaboration with Stanislaus County social services, non-profit organizations, and the MPD’s Homeless Engagement and Response Team (HEART). CHAT provides alternatives to traditional police responses and continues to expand in order to meet the needs of the community.

The Downtown Streets Team (DST) and a partnership with the local ACES and Berberian Shelters is a key component of the Camp2Home program in helping individuals to attain permanent housing through assisting them in obtaining job training and job placement. In this effort, the City of Modesto has partnered with the DST, a non-profit organization, to create a safe and engaging space to train individuals experiencing homelessness. DST’s goal is to end

#17..
- 888 -
homelessness by restoring the dignity and rebuilding the lives of unhoused men and women by helping team members (clients) activate skills and attributes that are necessary to move toward employment, housing, and overall, a better quality of living. This is attained through efforts such as maintaining a schedule, teamwork, accountability, and self-confidence. Through a Structured Daily Activity (SDA) model, DST team members rebuild their life as well as regain a sense of pride in, and stewardship of, their community, at the same time gain valuable experience.

These skills and experiences can help build their resume to overcome employment instability.

DST’s SDA projects are beautification projects within the City limits, which include basic tasks such as litter cleanup in the community. To date, the DST team has removed 1,705,108 pounds of trash in the community. In October 2023, the City also partnered with DTS to launch a Parks team, focusing on blight abatement within the City parks and recreation facilities. Thus, the model inherently provides a public service and a public benefit in the communities DST serves in. This model serves as an access point for job opportunities with business in the community.

The case management at this level of the program has created on-going partnerships with workforce development, for-profit and non-profit businesses to consider hiring Camp2Home graduates. Those successfully placed in employment will move on to housing placement.

DST also administers a rapid rehousing program that allows individuals experiencing homelessness who are placed in full time employment to be eligible to receive rapid rehousing opportunities with continued case management to ensure their housing and employment journeys are successful.

2. Center for Human Services (CHS): CHS conducts street outreach to unsheltered homeless youth.

CHS’ goal, through street outreach, is to engage with youths experiencing homelessness and connect them to resources including housing at CHS’ Hutton House, a runaway and homeless youth shelter (ages 13-17), or Pathways, a transitional living place for older youth (ages 18-21).

In 2021, CHS began operations of the Youth Navigation Center. This Youth Navigation Center has enhanced current outreach efforts and services for the youth population with everything being available at one location.

3. Community Assessment, Response, and Engagement (CARE) Multidisciplinary (MDT) personnel strategy: The CARE team is a joint strategy with the City of Modesto as well as Stanislaus County. The CARE team is made up of staff that are capable of engaging individuals and households in crisis and distressed in the moment for any number of reasons relating to mental or physical health. The CARE team conducts regular outreach and engagement with what are most often the “hard to reach” individuals and households. The CARE team activity is tracked in detail through their reporting requirements as well with the CoC. The City will continue to be a partner in the CARE team program in efforts to increase outreach and engagement to households and individuals experiencing homelessness.

4. Hospital Council’s Northern and Central California partners with Stanislaus County as well as the City of Modesto in their sheltering meetings. This collaborative partnership has a shared goal of streamlining hospital discharges to emergency shelters that are ready and equipped to handle the level of care needed for an individual client. This cooperation is to alleviate individuals

#17..
- 889 -
experiencing homelessness from being discharged to the street.

Addressing the emergency shelter and transitional housing needs of homeless persons Given Modesto is the county seat of Stanislaus County and the largest City within, Modesto is also the central point for many of the CoC’s related supportive services. The City funds shelter activities to the maximum extent possible through CDBG Public Services and ESG funds.

The City partners with shelter providers in Modesto such as the Salvation Army to provide emergency shelter and low barrier shelter services to individuals experiencing homelessness. The Access Center Emergency Shelter (ACES) is a low barrier (drug and alcohol testing are not required to enter) emergency shelter facility aimed at reducing barriers for individuals choosing to enter an emergency shelter. ACES is designed to allow participants to enter with pets, partners, and possessions, which are often-cited impediments for individuals experiencing homelessness when entering a homeless shelter.

With respect to housing, the City will partner with local service providers to serve the population as needed and to provide funding whenever possible for the operation of transitional living facilities and emergency shelters such as:
• Center for Human Services-Youth Navigation Center: Center for Human Services has been successfully serving transitional aged youth who are in crisis or experiencing homelessness through the following programs:
o Center for Human Services – Pathways Program: Pathways is a 15-bed transitional living program that addresses the need for shelter and support services for homeless youth 18 to 21 years of age. Shelter is provided up to 21 months. The Pathways Program provides basic life skills, interpersonal and jobs skills training, assistance with obtaining medial insurance and assistance related to advancing educational opportunities. o Hutton House is an emergency shelter for runaway, homeless, and youth in crisis who are ages 13-17.
o Low Barrier Shelter ages 18-24 is A 24-bed facility that provides emergency shelter for young adults ages 18-24 who are or may become homeless with Daily Check-In 6pm – 8pm. • Children’s Crisis Center of Stanislaus County (CCC) provides childcare and shelter services to abused, neglected, and at-risk children in the community. o Audrey’s, Guardian, Marsha’s, Sawyer, and Verda’s Houses provides shelter for children who may be involved in a family crisis or a conflict situation. • Homeless Prevention and Rapid Re-Housing Program (HPRP) provides rental assistance in conjunction with intensive case management.
• Community Housing and Shelter Services (CHSS) provides opportunities to households with and without children to obtain and maintain permanent housing. • Community Impact of Central Valley (CICV) provides services to individuals with HIV/AIDS through the Housing Opportunities for Persons with AIDS Program (HOPWA). • Family Promise of Greater Modesto provides shelter at church sites and case management support for finding permanent affordable housing.
• Healthy Alternatives to Violent Environments (HAVEN) provides shelter services and outreach to homeless women, men, and children in the South Stanislaus County area and within the City.

#17..
- 890 -
Services include those for victims of domestic violence. • The Stanislaus Regional Housing Authority administers 222 Shelter Plus Care Certificates and HUD-VASH vouchers which help provide permanent supportive housing to homeless veterans. • Miller Pointe is a 15-unit permanent rental housing project serving very low-income households.
• Meadow Glen is a 32-unit permanent rental supportive housing serving very low-income foster youth aged out of foster care.
• The Modesto Men’s Gospel Mission and Women’s Mission provides a limited stay of seven nights on the floor, and three nights out, and also serves two meals a day. • Mission Emergency Shelter provides beds for temporary shelter to house up to 100 unaccompanied adult men and women and up to 90 women and children for a maximum stay of fourteen days.
• New Life Program Residential is an on-site program, operated by the Modesto Gospel Mission, for up to 41 unaccompanied adult men and women who need specialized help to return to societal living. This program is operated by the Modesto Gospel Mission. • The Salvation Army Modesto Corps provides an array of services to the homeless. o The Access and Emergency Shelter - provides 182 low-barrier year-round beds to unaccompanied homeless adult men and women.
o The Berberian Emergency Shelter provides 164 cold weather beds to unaccompanied homeless adult men and women and up to 30 year-round beds to homeless persons with special medical needs.
o The Berberian Transitional Living Facility provides 20 beds for homeless male and female veterans and 20 beds for unaccompanied homeless males and females for up to 24 months.
• Stanislaus County Affordable Housing Corporation (STANCO): STANCO operates transitional housing facilities that provide housing opportunities for homeless persons with mental disabilities. The City of Modesto provided funding for STANCO in 2019 for transitional housing of five (5) beds. The City will continue to look for partnership opportunities with STANCO and other providers to meet emergency and transitional shelter needs of residents. • Stanislaus County Affordable Housing Corporation (STANCO) operates eight properties for permanent affordable housing and conducts outreach to place people in supportive housing.

STANCO also operates 33 transitional beds for homeless families with children and 37 beds for unaccompanied adult homeless males and females.
o STANCO Transitional Housing
 California – 36 beds and 4 units
 Garden Gate – 3 beds and 1 unit
 Ricardo – 3 beds and 1 unit
 Locust – 3 beds and 1 unit
 Garvey – 13 beds
 REST House - 5 beds
o STANCO Permanent Supportive Housing
 24 beds
• Bennett Place contains 18 units that are reserved for persons who have a serious mental illness (SMI) or serious emotional disturbance (SED) and are homeless or at risk for homelessness. • Turning Point Community Programs provides integrated, cost-effective mental health services, employment and housing for adults, children and their families that promote recovery,

#17..
- 891 -
independence, and self-sufficiency.
• Turning Point Respite Center at Garden Gate provides a safe home-like environment for up to 12 homeless mentally ill persons nightly.
• Salvation Army Veteran Emergency Shelter: provides shelter services to homeless individuals who are U.S. Veterans.
• Catholic Charities provides a variety of programs and services with a new office location as of 2019 in Modesto. Catholic Charities provides transportation services, housing and case management services, low-cost healthcare, and childcare as well as immigration and legal services.

There is a total of 795 emergency shelter/transitional housing beds in Modesto. The emergency shelter beds available in Modesto are from the following organizations:

Modesto Emergency Shelter Beds
Agency Number of Beds
Center for Human Services 47
Children’s Crisis Center 35
Community Housing and Shelter Services (CHSS) 180
Family Promise 15
Haven Women’s Shelter 10
Modesto Gospel Mission 135
Salvation Army – Berberian Shelter 180
Salvation Army – ACES Shelter 182
Turning Point 11
TOTAL 795
Source: 2023 Department of Housing and Urban Development and Coordinated Entry Bed Availability

#17..
- 892 -
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The CoC continues to refine system processes and address gaps in the service delivery system to ensure that specific vulnerable sub-populations do not fall through the cracks. This occurs through the CoC’s continued partnerships and growth with collaborating agencies, as well as the system yielding more effective results for those individuals and families that are experiencing homelessness. The Coordinated Entry System (CES) is an effective tool in minimizing the number of days an individual experiences homelessness. As stated in the Coordinated Entry System Policies and Procedures Manual, the CoC works to assess households for the individual needs and make matches to available housing interventions. The case conferencing teams meet every other week to work through the prioritization list of households that have completed the vulnerability assessments.

Each household experiencing homelessness or chronic homelessness is offered a standard assessment tool, or VI-SPDAT, as a pre-screening tool to determine risk and prioritization to ensure fairness and equitable access to available services and housing options across the continuum. The delivery of wraparound services is critical to the long-term success of those individuals and families that have experienced homelessness but are now housed. Through the CoC, there are housing supports made available such as but not limited too financial assistance, security deposits, legal services, credit repair, utility payments, and counseling. The CoC and its partners have a shared goal, to prevent and end homelessness through attaining and sustaining stable and secure housing. The City of Modesto’s Homelessness Prevention and Rapid Re-Housing (HPRP) activities include the allocation of ESG funds for all household types including but not limited to chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth so they may receive security deposit assistance. The City Camp2Home Program also assists with self-sufficiency and employment to ensure the individual has the means to live independently.

The City of Modesto, its ESG subrecipients, the CoC, and other partners have been especially strategic in creating opportunities that will stably house and promote the self-sufficiency of these subpopulations of persons experiencing homelessness. ESG subrecipients have also had to find strategic ways to assist clients find housing and retain their housing. The following are recent strategies that have been implemented locally in which the City will continue to be a partner in the planned efforts to help individuals experiencing homeless transition from homelessness to housing:

#17..
- 893 -
Empire Migrant Center:

CSA partners with the Housing Authority, STANCO, and CHSS to house families experiencing homelessness during the cold-weather months in vacant family units at the Empire Migrant Center. The Empire Migrant Center is used as a cold-weather shelter for families experiencing homelessness. The Empire Migrant center consists of 90 single family dwelling units used for farmworker housing during project from April to October each year. This project allowed CSA to use 22 of the 90 units to place families experiencing homelessness in these units during the months of December through March. This project will be a multi-year partnership allowing CSA to place families experiencing homelessness each winter in housing and provide case management services with a goal to permanently house these households.

Youth Navigation Center:

The Center for Human Services provides a wide range of services that strengthen and support youth and families. One of the biggest projects developed is a Youth Navigation Center. The Youth Navigation Center is located in Modesto and is a one stop service hub providing a continuum of services for young people (13-24 years old) who are experiencing crisis, housing instability, and/or homelessness. The Youth Navigation Center has created a space that moved all existing services to one building creating a clear pathway for youth/young adults to strengthen the chances of dealing with crisis and housing instability. Most importantly, this Center established a coordinated system of care for this vulnerable population and serve youth within the entire region of Stanislaus County. When this project opened in November 2021, it immediately started serving individuals with the following services:
• Street outreach and engagement services
• Homeless prevention & diversion services
• Coordinated entry and assessment
• Crisis/Drop-in and Shelter for 13-17-year-old individuals (8 beds) • Crisis/Drop-in and Low-Barrier Shelter for 18-24-year-old individuals (24 beds) • Pathways Program: Transitional Housing for 18-24-year-old individuals (15 beds) • Access to housing services including permanent housing slots designed for youth with diverse circumstances
• On-site education and employment services
Downtown Streets Team:

Another key effort led in Modesto aimed at reducing the number of people living in poverty and provide housing opportunities to individuals experiencing homelessness is the Downtown Streets Team (DST).

DST employs a volunteer Structured Daily Activity (SDA) model in which those experiencing or at risk of homelessness volunteer on beautification projects within Modesto and Stanislaus County. The DST organization supports individuals experiencing homelessness by providing daily meaningful activities, building camaraderie, and supporting members in the following areas: securing employment, increasing engagement in mental health treatment, removing barriers to housing and employment, and assisting with vital documents. The daily meaningful activity for members includes outreach and engagement of

#17..
- 894 -
individuals experiencing homelessness and litter abatement on public right of ways such as parks, sidewalks, and other city owned property. The team may also support with park bathroom cleaning and weed abatement. As these individuals move on to employment and self-sufficient living environments, shelter capacity and job placement opportunities are made available to the next individual that needs the assistance in breaking the cycle. Security Deposits, utility deposits, and rental subsidy assistance for up to one year will be provided to those clients who complete the program and meet rapid rehousing program criteria.

Homeless Employment Litter Program
Similar to the DST project, the City has a partnership with Ready to Work(RTW), a non-profit organization which creates opportunities where individuals who are either experiencing or at-risk of homelessness gain employment support while generating clean streets. This partnership also includes the California Department of Transportation (CalTrans) to initiate the Homeless Employment Litter Program (HELP). This partnership aims in the employment of individuals experiencing homelessness to pick up litter around our city streets and state highways. RTW has been very successful in transitioning individuals into full-time employment which aids in securing permanent housing. Along with market level compensation, employees will receive an employment plan to help secure graduation from the program, as well as assistance with resume building, filling out applications, and interviewing.

Complementary to a more beautiful city, the goal is to develop a platform that will give individuals all the tools needed to become self-sufficient.

Camp2Home Program: The Camp2Home strategy is a program adopted by the City in 2020. The goal of the Camp2Home program is to implement a homeless action plan that reduces encampments in public spaces, ensures the provision of supportive services and identifies strategies for permanent housing. CSOC member providers to implement a comprehensive approach to breaking the cycle of homelessness through street outreach and engagement, emergency shelter, job training, placement, and housing.

Turning Point Community Programs: Provides supportive services to people of all ages experiencing or at risk of homelessness. Additionally, The Turning Point Housing Assessment Team (HAT) serves as a point of entry for the homeless services delivery system. HAT provides services to civilian and veteran populations in Stanislaus County. The goal of the team is to link individuals to services and provide supportive resources to improve quality of life. HAT also provides rapid rehousing assistance to assist individuals in securing and stabilizing housing.

#17..
- 895 -
Helping low-income individuals and families avoid becoming homeless, especially extremely lowincome individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The Stanislaus 2021 Regional Strategic Plan to Address Homelessness outlines key strategies in the community to identify those most at risk, gaps in service, and proactive steps for jurisdictions and nonprofits to focus efforts to help individuals from entering homelessness. Discharge planning from institutions is an integral part of the strategy in addressing homelessness throughout the County moving forward. Acknowledging that further collaboration among public institutions and other system of care providers needs to occur, so that no individual or family is discharged into homelessness. The CoC continues to work on these issues through awareness campaigns and coordinated efforts to align services and resources among CoC partners. Furthermore, homeless prevention assistance, while scarce, is provided through an ESG sub-recipient (Community Housing and Shelter Services). Foster care youth and those exiting the foster care system will be served through the City partnership with the Housing Authority and the Youth Navigation Center (Center for Human Services).

The City of Modesto will continue collaborative efforts with the CoC to improve services to the homeless and those at risk of becoming homeless. The following are key highlights of the work that has been conducted and will continue to be implemented in our community to assist individuals and families avoid becoming homeless:

Homeless Discharge Coordination:

The City of Modesto is actively engaged in homeless discharge coordination from health care facilities.

Since April 2019, the Hospital Council of Northern California has coordinated monthly meetings with representatives from local hospitals, homeless shelters, public agencies, and stakeholder groups to plan for the discharge of homeless individuals from health care facilities to comply with SB 1152. The objective has been to create a community standard of care and greater connection and cooperation between discharging and receiving providers of services for the homeless.

Homeless Prevention and Rapid Rehousing:

The City will continue to partner with local service providers by providing ESG funds used to assist with homeless prevention assistance to persons or families at risk of losing their housing. ESG funds will also be provided to rapidly rehouse persons experiencing homelessness. Assistance will be provided with intensive case management services to reduce the risk of persons falling back into the cycle of homelessness.

Foster care/youth facilities
One of the biggest youth service providers in Stanislaus County is the Center for Human Services (CHS).

The City has an ongoing partnership with CHS in the planning and programing of services for youth terming out of foster care to prevent homelessness among this population. A prime example is the recent partnership with CHS on the first Youth Navigation Center, located in Modesto, which provides a

#17..
- 896 -
one-stop-shop service hub for youth experiencing or in danger of homelessness.

Corrections/Law Enforcement:

As part of the Coordinated Entry efforts, the City works with law enforcement agencies such as Modesto Police Department and Stanislaus County Sheriff and Probation Departments in discharge planning to avoid discharge of inmates into homelessness.

AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The City’s 2015-2023 Housing Element contains an analysis of the barriers that may exist in the development and/or preservation of affordable housing. The City has recently submitted the 2023-2031 updated Housing Element to the Department of Housing and Community Development (HCD) for review. Many factors may work independently to inhibit affordable housing, but more often there is an intersection of barriers that may impede affordable housing development and/or perseveration. Some of those barriers may include market mechanisms and circumstances, government codes and regulations, physical constraints, and environmental constraints.

Of those types of barriers, below is a summarized list of specific barriers:
• Market barriers
o Construction costs
o Land and labor costs
o Loan/Credit issues for households
• Governmental barriers
o Growth Management, Land use, and Zoning Regulations
o Permit fees, Property Taxes
o Residential development standards, Site Improvement Costs o Parking requirements
o Development permit procedures
o Building codes
• Environmental barriers
o Natural disasters
There are several codified policies in Modesto that may contribute to the current lack of affordable housing.

Development Fees:
• Zoning Change Fee
o Should a development or housing unit be proposed for a site where it is not consistent with the General Plan and/or should a project be proposed for a site it is not currently permitted by zoning, a fee of up to $3,988 is required depending on the zoning change needed.
o These costs could potentially stifle the development of housing in areas where it may otherwise be reasonable

#17..
- 897 -
 Given a low supply of housing affordable to low- and/or moderate-income households, these costs may inhibit housing choice for those households • Impact Fee, land dedications, site improvements
o The costs to integrate necessary infrastructure (streets, sidewalks, storm drains, etc.) are bore by the developer, but are ultimately passed on to the consumer o These costs contribute to pricing out low- and/or moderate-income households for affordability reasons
o The City may provide fee waivers in some cases and/or fee deferrals in others allowing construction to move forward with less up-front costs
• School district fees
o School fees are currently $4.79 per square foot. These add significant costs to larger developments, contributing to the pricing out of low- and/or moderate-income households
The City of Modesto regularly analyzes City building codes, market constraints, and housing/nonhousing development policies, be it through the Consolidated Plan process, the Analysis of Impediments update, or the Housing Element update. The City acknowledges that outdated building codes and land use policies inhibit the development of housing for all income levels and the City understands the importance of regularly analyzing how local policies and ordinances impact the housing market for those households earning less than 80% of the area median income.

This year the City has embarked on a comprehensive look at how the City’s codes can be adjusted to plan for the future. The City is doing this with the creation of a Housing Plan to establish a vision for the future of Modesto's residential neighborhoods, and for expanded housing opportunities throughout Modesto. This plan was developed by community guided feedback throughout the process, the Housing Plan will inform the City’s long-term planning and policy decisions and promote greater housing, diversity and opportunities. The planning process will occur using an innovative and engaging approach as outlined below.
• Analyze Land Characteristics and Identify Future Housing Sites: This process helps to identify appropriate candidate locations for new residential development. “Testing” of various housing product types on sites with different shapes and sizes will help assess the viability and practicality of potential development. It includes creation of three-dimensional visualizations, offering examples of what the community would like to see built. Financial feasibility analysis and zoning recommendations will also be explored and evaluated. • Community Engagement to Better Plan and Design Future Housing Sites: City of Modesto staff want to hear from all interested parties, stakeholders and underrepresented communities to ensure their needs and desires are heard. Staff has developed a list of key local housing advocates and community members who will have an opportunity to make their views known early in the process. These people and organizations will be encouraged to spread the word about the Housing Plan to help engage the broadest range of people possible. • South and West Modesto Plan: On March 8, 2022, the Planning Division, in coordination with the Purchasing Division, issued a formal Request for Proposals (RFP) to prepare a comprehensive analysis for the development of additional housing units, barriers to economic development, street project design and infrastructure needs focusing on the neighborhoods of Southwest

#17..
- 898 -
Modesto (RFP No. 2122-04). The purpose of the Plan is to establish a vision for the future of Southwest Modesto with a focus on enhancing redevelopment conditions and opportunities, and to identify ways to realize that vision. The Plan will be delivered in the form of a report that will present a comprehensive analysis of the needs and opportunities and identify a strategy to arrive at the actual development of additional housing units and address barriers to further economic development for the City’s highest areas of disadvantaged households. • General Plan: Beginning in March 2022, the City began preparing a comprehensive update to the Urban Area General Plan, which guides City decisions about growth, development, transportation, jobs, housing, parks, shopping, services, and more. The last time Modesto’s General Plan was updated comprehensively was in 1995. This update process will look toward the City’s long-term future to reflect the issues, ideas, and aspirations of today, and plan toward the year 2050.
• Housing Element: This is an independently governed chapter of the General Plan. This element is required to ensure that the City has programs and zoning in place that allows for the development of housing that can be available at every level of income without marginalizing any protected group. The City is currently drafting its 6th Cycle element that will be in place between 2023-2031 which has been submitted for review to the California Department of Housing and Community Development (HCD) for review. .

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City works to remove barriers to the development and/or preservation of affordable housing through the following efforts:
• Providing funding for land acquisition, secondary financing, and infrastructure costs; • Assisting qualified households to purchase homes utilizing the Homebuyer Assistance Program:
• Exemption or deferral of Capital Facilities Fees for projects providing low-income housing; • Using the adopted streamlining process for environmental review; HEROS • Continuing to work with non-profit housing agencies in the provision of supportive services and programs; and
• Using streamlined application review and permit processing.

To mitigate the negative effects of public policies that serve as barriers to affordable housing, the City of Modesto has policies in its impact fee program for affordable housing. The current Capital Facility Fees (CFF) Policies and Procedures provide, with respect to very low- and low-income housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. The CFF Policies and Procedures also allow a Community Housing and Development Organization (CHDO) to submit an application and request CFF be waived on new affordable units for households earning sixty (60%) or less of the Area Median Income.

In 2017, the State of California passed a15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, SB 2, which is part of the 15-bill housing package,

#17..
- 899 -
established a permanent source of revenue intended to increase the affordable housing stock in California.

In 2019, the State of California released a Notice of Funding Availability (NOFA) to all local governments in California for the SB2 Planning Grants Program (PGP). The PGP program is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production.

In 2023, the City adopted a comprehensive housing plan with extensive feedback from the community that accomplished two primary objectives

1. The first is identification of opportunity sites for affordable housing, along with an analysis of potential barriers and/or constraints related thereto. This is intended to maximize residential development potential on sites that have meaningful capacity for residential development.

Existing barriers to new residential development will be identified and examined. Strategies to reduce or eliminate these barriers will be documented.

2. The second primary component of this AHP will consist of a series of zoning code amendments intended to facilitate housing development at new locations / sites / zoning districts where residential land uses may not be allowed under the current code. Zoning code amendments, in addition to other available remedies, will also be prepared to reduce / eliminate the barriers identified as described above.

These objectives are driving the implementation of change within the City to ensure that the policies and zoning is in place to encourage development that will benefit the low-moderate income households of Modesto. This data driven document is supporting the other initiatives within the General Plan and Housing Element.

In 2020, the State of California released a non-competitive Notice of Funding Availability (NOFA) to all local entitlement communities California for the SB2 Permanent Local Housing Allocation (PLHA). The PLHA program is intended to assist local government to fund workforce affordable housing.

In response to the NOFA, the City of Modesto awarded $949,747 in 2020 and in 2021 the City was successfully awarded through the annual NOFA an additional $1,507,287. In 2022, the City was awarded its 3rd year allocation of $1,658,723. The City intends to apply for the 4th year funding in the amount of $831,356. According to the City’s PLHA allocation plan, the City will use this funding for the development of both affordable rental housing and permanent supportive housing.

All of the goals from the City’s 2015-2023 Housing Element are relevant to the Consolidated Plan, and several goals are explicitly aimed at removing barriers to the development of housing within the City.

Goal Number 4 of the Housing Element is “Ensure land use and zoning procedures accommodate housing,” stating that the City will work to track changes in Housing Law as to be consistent with supportive of State and Federal laws. The goal also aims to review local regulations periodically for the ability to accommodate projected housing demands. Goal number 5 is “Reduce government

#17..
- 900 -
constraints,” with the aim of continuing to identify any development fees, impact fees, and other municipal costs that may unduly constrain housing production.

The City is also a partner in the development of the Regional Analysis of Impediments to Fair Housing Choice (AI) for Stanislaus County. The AI will analyze public policies, strategies, and housing market practices that could potentially create barriers to affordable housing for households within the City. The AI will also identify actions to be taken to alleviate any barriers identified.

AP-85 Other Actions – 91.220(k)
Introduction:

Actions planned to address obstacles to meeting underserved needs In alignment with local efforts and initiatives, the City's primary focus in 2024-2025 will be to use HUD resources to address the Consolidated Plan goals, all of which are high priority:
• Improve the Condition and Increase Supply of Affordable Housing • Work Towards Addressing and Preventing Homelessness
• Enhance Infrastructure and Public Facilities
• Access to Jobs, Education, and Other Economic Development Services This action plan identifies projects the City will undertake in pursuit of progress towards those goals outlined above.

Actions planned to foster and maintain affordable housing One of the City’s main strategies to address the housing shortage in Modesto is to use HUD funds to assist with property acquisition for new construction and/or conversion into affordable housing.

Another strategy is acquisition of single-family dwelling units located on large lots. There is potential here for future development utilizing the access space for accessory dwelling units (ADUs). This concept assists with the affordable housing need, while maximizing space. This is a creative solution for an area where land and housing stock availability are low.

In December of 2022, the City released a comprehensive NOFA to provide resources to develop affordable housing that included all available funding resources that could be utilized to support the development of affordable housing. The City will use projects identified via the NOFA proposals and/or over the counter project proposals to maximize the use of HUD funds with the end goal of adding affordable housing units to the maximum extent possible.

Actions planned to reduce lead-based paint hazards
The Market Analysis section of the 2020-2024 Consolidated Plan estimates that 8,820 owner-occupied low-income households and 8,400 renter-occupied low-income households are living in units built before 1980. Because lead-based building materials was banned in 1979, this is the best available

#17..
- 901 -
estimate of the number of households that may have lead-based materials to abate.

The City of Modesto has adopted policies which will continue to be implemented in its housing programs. The City’s lead-based paint policy complies with HUD requirements relating to lead-based paint hazards. In alignment with HUD’s requirements, lead-based paint remediation actions will depend on the level of subsidy provided on a project-by-project basis.

City staff provides the HUD approved “Protect Your Family from Lead in Your Home” pamphlet to homeowners when lead-based paint is found or presumed to be present. Homeowner Rehabilitation Program Policies & Procedures adhere to 24 CFR 35.100 Subpart J 35.930(b), 24 CFR 35.100 subpart J

35.930(c), and 24 CFR 35.100 subpart J 35.930(d). Contractors who are working in homes where leadbased paint is found or presumed to be present provides to the homeowners EPA pamphlet “The LeadSafe Certified Guide to Renovate Right” prior to construction activities.

Housing rehabilitation projects will be subject to federal regulations for Lead-Based Paint and contractors must be certified in safe work practices when completing the rehabilitation work. Costs related to lead-based paint inspections, clearance and abatement will be included in the City’s housing rehabilitation loan program which is paid from entitlement funds.

The following is the City’s lead-based policy for reduction of lead paint hazards:

Hazard Mitigation Amounts
Hazard Mitigation Subsidy Amount <$5,000 Subsidy Amount $5,000-$25,000
Subsidy Amount
>$25,000
Approach to Lead
Hazard Evaluation
and Reduction
“Do No Harm”: Use lead
safe work practices
Identify and control
Lead hazards
Identify and Abate Lead Hazards
Homeowner
Notification
Yes Yes Yes
Lead Hazard
Evaluation
Presume Presence of LBP
(alternative: Paint testing
of surfaces to be
disturbed by
rehabilitation)
Paint testing of surfaces
to be disturbed by
rehabilitation AND Risk
assessment
Paint testing of surfaces to be
disturbed by rehabilitation AND
Risk assessment
Lead Hazard
Reduction
Repair surfaces disturbed
during rehabilitation, use
lead-safe work practices,
clearance test of work site
upon completion.

Interim controls, leadsafe work practices,
clearance test of unit
upon completion.

Complete abatement, lead- safe
work practices, clearance test of
unit upon completion.

Actions planned to reduce the number of poverty-level families Affordable housing is identified as the highest need in the City’s 2020-2024 Strategic Plan. To address the need for additional affordable housing the City of Modesto works with local affordable housing

#17..
- 902 -
developers in efforts to identify new projects and/or ways to enhance the supply of affordable housing.

Section AP-55 of this Action Plan outlines the City’s 2024-2025 affordable housing goals for this year.

The City will enter community partnerships that provide economic development opportunities for lowincome households. Partnerships such as those with Opportunity Stanislaus, Digital Nest, the local economic development, and workforce agency, will seek to leverage any funds available to the city (federal and/or state) for the economic advancement of low-income families with the end goal to get improve income levels for low-income individuals.

Actions planned to develop institutional structure
The City of Modesto, through its engagement in local initiatives, is engaged in the Coordinated Entry system. Coordinated Entry (also known as coordinated assessment system) is a consistent, community wide process to match people experiencing homelessness or at-risk of homelessness to community resources that are the best fit for their situation. In a community using Coordinated Entry, homeless individuals and families complete a standard triage assessment survey that identifies the best type of services for that household. Participating programs accept referrals from the system, reducing the need for people to traverse the county seeking assistance at every provider separately. The process helps prioritize housing and homeless assistance based on vulnerability and severity of service needs to ensure that people who need assistance the most can receive it in a timely manner. The process also provides information about service needs and gaps to help plan assistance and identify needed resources in our community.

The intent of Coordinated Entry is to engage the entire geographic area through Access Points. Access Points are places–either virtual or physical–where an individual or family in need of assistance withthe coordinated entry process. People experiencing homelessness can complete the assessment survey to participate in Coordinated Entry and are matched with community resources that best fit their situation.

All locations and methods offer the same assessment approach and referrals using uniform decisionmaking processes. The Access Points in Stanislaus County include: 1) A centralized physical location (Access Center) in Stanislaus County where housing and support services, among others are provided, 2) 211 hotline system that screens and directly connects people to services, 3) Continuum of Care partners that provide assessments using the same tool county-wide, 4) A specialized Multi-disciplinary Outreach and Engagement Team that scouts the geographic area to provide access to those who might not want to engage at a physical access point.

The City works closely with the Stanislaus County Department of Behavioral Health and Recovery Services (BHRS) in the system delivery of housing services. BHRS provides Housing Support Services Program provides an array of support services for individuals facing barriers that include low income, severe mental illness, substance abuse, and other disabling conditions. The program offers a combination of affordable housing and support services designed to help individuals and families use housing as a platform for wellness and recovery following a period of homelessness, hospitalization, or incarceration. The goal of Housing Support Services is to assist individuals in obtaining employment,

#17..
- 903 -
independent living skills, recovery, and increased self-sufficiency. In addition, BHRS provides Employment Support Services to individuals with psychiatric disabilities who are working towards Employment and Housing goals. The program provides an opportunity for individuals with severe mental health disabilities to work in the community. Often, BHRS and City HUD funding resources are leveraged together when partnering with local affordable housing developers such as the SRHA and STANCO.

Actions planned to enhance coordination between public and private housing and social service agencies
City of Modesto relies primarily on its (A) close consultation with the CSOC, which is made up of representative stakeholders and (B) monthly meetings with its public and private housing development partners, which include local private CHDOs (e.g., Habitat for Humanity, Stanislaus County and Stanislaus Affordable Housing Corporation, and Great Valley Housing Development Corporation (GVHDC), the Stanislaus Regional Housing Authority, and BHRS to enhance coordination in the areas of community housing and social services.

The City relies on non-profit organizations and for-profit developers to build and acquire, develop, and rehabilitate affordable units. The City will continue to work closely with these entities to ensure that each year as many new affordable units are developed or made available.

The City also relies on the non-profit service sector to provide emergency shelter and transitional and special needs housing. The City of Modesto will continue to support eligible organizations and their activities with local, state and federal funding as it’s made available and upon their governing entity’s approval.

Discussion:

No additional discussion.

#17..
- 904 -
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

CDBG Program Components
Program Components Amount

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $ 0.00

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
$ 0.00

3. The amount of surplus funds from urban renewal settlements $0.00

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0.00

5. The amount of income from float-funded activities $0.00 Total Program Income $0.00
Other CDBG Requirements
Program Components Amounts

1. The amount of urgent need activities $0.00

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income
100%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City of Modesto does not use form of investment within the local HOME program other than those identified in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used

#17..
- 905 -
for homebuyer activities as required in 92.254, is as follows:

When HOME funds are used for homebuyer activities, the City will follow the following guidelines:

Pursuant to 24 CFR 92.254(a)(5)(ii), the City requires that HOME funds be recaptured if the property does not continue to be the principal residence of the buyer for the duration of the Affordability Period secured by an Affordable Housing Covenant. The Recapture Provision shall apply to a HOME assisted property only when a Direct HOME Subsidy is provided to a homebuyer.

The Recapture provision will ensure that the City of Modesto recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period.

Per, 24 CFR 92.254(a)(5)(ii)(A), In establishing recapture requirements, the City of Modesto is subject to the limitation that when the recapture requirement is triggered by a sale (voluntarily or involuntarily) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City of Modesto will only recapture the net proceeds, if any.

The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs.

Of the recapture options described in 92.254(a)(5)(ii)(A), the City of Modesto will use a the “Shared Net Proceeds” option as outlined in 24 CFR 92.254(a)(5)(ii)(A)(3). With this option, if the net proceeds are not sufficient to recapture the entire HOME investment, the City and original homebuyer will share the net proceeds.

To calculate the amount of net proceeds (or shared appreciation) to be returned to the City the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured HOME Investment + Homeowner Investment
To calculate the amount of net proceeds (or shared appreciation) to available to the homebuyer the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured Direct HOME Subsidy + Homeowner Investment
Since the HOME rule limits recapture to available net proceeds, the City will only recapture what is available from net proceeds. In this case, the City is not required to repay the difference between the total direct HOME subsidy and the amount the City is able to recapture from available net proceeds.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows:

When HOME funds are used for resale or recapture, the City will follow the following guidelines:

Pursuant to 24 CFR 92.254(a)(5)(ii), the City requires that HOME funds be recaptured if the property does not continue to be the principal residence of the buyer for the duration of the Affordability Period secured by an Affordable Housing Covenant. The Recapture Provision shall apply to a HOME assisted property only when a Direct HOME Subsidy is provided to a homebuyer.

The Recapture provision will ensure that the City of Modesto recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period.

Per, 24 CFR 92.254(a)(5)(ii)(A), In establishing recapture requirements, the City of Modesto is subject to the limitation that when the recapture requirement is triggered by a sale (voluntarily or involuntarily) of the housing unit, and there are no net proceeds or the net proceeds are insufficient

#17..
- 906 -
to repay the HOME investment due, the City of Modesto will only recapture the net proceeds, if any.

The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs.

Of the recapture options described in 92.254(a)(5)(ii)(A), the City of Modesto will use a the “Shared Net Proceeds” option as outlined in 24 CFR 92.254(a)(5)(ii)(A)(3). With this option, if the net proceeds are not sufficient to recapture the entire HOME investment, the City and original homebuyer will share the net proceeds.

To calculate the amount of net proceeds (or shared appreciation) to be returned to the City the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured HOME Investment + Homeowner Investment
To calculate the amount of net proceeds (or shared appreciation) to available to the homebuyer the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured Direct HOME Subsidy + Homeowner Investment
Since the HOME rule limits recapture to available net proceeds, the City will only recapture what is available from net proceeds. In this case, the City is not required to repay the difference between the total direct HOME subsidy and the amount the City is able to recapture from available net proceeds.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not intend to use HOME funds for refinancing activities.

Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment) In accordance with HUD regulations and in consultation with Continuum of Care stakeholders the City developed written standards for the provision and prioritization of the Emergency Solutions Grant.

The standards include both general statutory and regulatory standards and guidance applicable to all ESG-funded program components as well as component-specific standards. The City’s ESG policies may be accessed at the following website:
https://www.modestogov.com/DocumentCenter/View/6198/Section-5---Emergency-SolutionsGrants

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

The CoC continues to work with partners and stakeholders in the implementation of the Coordinated Entry System (CES) process. Coordinated Entry (CE) is the foundation of the City’s homeless response system and serves as the point of entry to connect households experiencing homelessness to resources need to address their housing crisis. Households experiencing

#17..
- 907 -
homelessness complete a standard assessment tool that considers the household’s situation and identifies the best type of housing intervention to address their situation. A community queue of eligible households is generated from the standard assessment and is used to fill spaces in the permanent housing programs, including permanent supportive housing and rapid rehousing. This coordinated process reduces the need for people to have to seek assistance at every service provider separately. The process helps prioritize housing and homeless assistance based on vulnerability and severity of service needs to ensure that people who need assistance the most can receive it in a timely manner. The process also provides information about service needs and gaps to help plan assistance and identify needed resources in our community. The community has worked hard to improve on this process and ensure that we are assisting poverty-level families not only with prioritizing them for their housing needs but assessing all other needs. Now that these needs are assessed case managers will continue reaching out to the members to connect to applicable services until housing becomes available.

The intent is to provide coordinated entry to the entire geographic area through Access Points.

Access Points are places–either virtual or physical–where an individual or family in need of assistance accesses the coordinated entry process. People experiencing homelessness can complete the assessment survey to participate in coordinated entry and are matched with community resources that best fit their situation. All locations and methods offer the same assessment approach and referrals using uniform decision-making processes. The Access Points in Stanislaus County include: 1) A centralized physical location (Access Center) in Stanislaus County where housing and support services, among others are provided, 2) 211 hotline system that screens and directly connects people to services, 3) Continuum of Care partners that provide assessments using the same tool county-wide, 4) A specialized Multi-disciplinary Outreach and Engagement Team that scouts the geographic area to provide access to those who might not want to engage at a physical access point.

Currently, the CoC holds meetings every other week for Coordinated Entry meetings/conference calls with housing/service providers where the list of homeless individuals who have been vetted through the CES process is reviewed for gauging individual housing readiness. Each individual is assessed as to housing readiness and is placed in any housing available within the community.

The Coordinated Entry System Policies and Procedures Manual was updated in August 2021. The manual outlines a process that consists of four (4) phases:

1. Assessment
a. During this phase all community members experiencing homelessness or chronic homelessness are to be assessed by a Housing Assessor and their Standardized Assessment (uniform community assessment forms) score is placed a community queue for housing.

2. Housing Match and Prioritization
a. The Case Conferencing Team will meet to review the community housing queue and begin to match eligible participants with housing opportunities. These Case Conferencing Teams meet weekly or more frequently based on need.

3. Documentation and Housing Navigation
a. In this phase, official eligibility documentation, as standardized by the CoC, are gathered to prepare a household for an available housing intervention. The Housing navigator works with Housing Providers to guide a household through the referral and move-in

#17..
- 908 -
process.

4. Housing Placement
a. This phase includes ensuring that the households is ready for move-in and documenting client acceptance and move-in date in HMIS.

3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

The City of Modesto competitively awards ESG funding through an RFP process. This RFP process conforms to the City of Modesto’s rigorous procurement policies, including public noticing and utilizing its Neighborly online based grant management system. The funding priorities as it relates to ESG are funding emergency shelter to the maximum extent possible and prioritizing rapid re-housing and homelessness prevention.

The RFP Process is undertaken through the following steps:

1. The City publishes a Notice of Funding Availability (NOFA)

2. The City holds are technical workshop for those organizations planning to apply for funds

3. The City conducts a technical review on all applications received

4. The City submits technical review notifications

5. Following technical review notifications, the City allows organizations to appeal their technical review determination

6. Grant presentations are made to the Modesto Grant Review Committee that is made up of representative from the CH&CDC Committee and the CSOC.

7. Award notifications are announced at the CH&CDC committee that approves the Annual Action Plan after which letters are sent to the applicants regarding their award status.

8. Associated projects and planned activities are included in the Annual Action Plan that is presented to City Council

9. Sub-recipient grant agreements are finalized

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

The City of Modesto works very closely with the CoC which is made up of a representative group of diverse stakeholders, including persons experiencing homelessness and those who at one time in their lives had experienced homelessness. The CoC bylaws, amended on December 16, 2021, identify the CoC Council Members. Those bylaws state that “2 people who are or have experienced homelessness” are to be members of the CSOC council, elected/appointed by the general membership of the CSOC.

Alongside working with the CSOC, the City regularly participates in Stanislaus Homeless Alliance (SHA) discussions when developing policies and funding recommendations regarding facilities and services funded under ESG.

5. Describe performance standards for evaluating ESG.

General performance measures have been established by the City for each program component.

Performance measures are based on applicable system and project-level goals established by HUD for the ESG program and City strategic priorities. The City may establish specific performance targets

#17..
- 909 -
for certain measures. However, nothing prohibits a local CoC or subrecipient from establishing additional performance measures or higher performance expectations.

The performance measures will help evaluate the performance to determine the most effective services and assist with future allocation of ESG funds. These include length of homelessness, returns to homelessness, number of sheltered homes persons, employment, and income growth for persons, homeless for the first time, and exit and retention to permanent housing.

For the full Stanislaus Community System of Care Collaborative Homeless Management Information System (HMIS) Policies and Procedures Manual, please find it at the following link:
https://www.csa-stanislaus.com/hmis/pdf/Policies_Procedures_SCOC.pdf Discussion
The City of Modesto consults closely and regularly with the CoC and its HMIS, ESG/HPRP, and Supportive Housing Program (SHP) subcommittees, which develop policies and procedures for these programs and has played an active role in building the service infrastructure to sustain and improve the coordinated entry system. This consultation includes but is not limited to reports and presentations that are placed on the CoC monthly meeting agendas, weekly coordinated entry meetings to place individuals in housing, and ongoing coordination amongst service providers related to housing placement of homeless individuals.

For the full Coordinated Entry Policies and Procedures Manual, please find it at this link -> https://csocstan.com/coordinated-entry-system-ces-policies-and-procedures-manual/

#17..
- 910 -
Executed HUD Certifications and SF-424
This section is to be added once this plan is adopted.

#17..
- 911 -
City of Modesto Resolution 2023-XXX
This section is to be added once this plan is adopted.

#17..
- 912 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 7, 2024
Date: April 16, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jeremy Rogers, Director of Parks, Recreation and Neighborhoods SUBJECT: Modesto Park Equity Resolution
CONTACT: Nathan Houx, Parks Planning and Development Manager, [email protected], 209-571-5526
DESCRIPTION:

Consider approving a Resolution setting forth Modesto’s commitment to creating equitable parks, and protective and healthy environments. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

This recommended action supports the City’s 2020-2025 Strategic Plan focus on quality of life under B. Invest in Beautification Efforts.

BACKGROUND:

The Park Youth Committee (PYC) is a group of high school students from Modesto, with a collective sense of dedication aiming to achieve park equity in the City of Modesto. The PYC is funded by the All Children Thrive (ACT) initiative, dedicated to improving the well-being of children across California, and supported by the 501(c)(3) nonprofit organization, Tuolumne River Trust. The PYC was formed to work on the Modesto Park Equity project which is a youthled initiative, with an overall mission to increase safe park access and recreation for all Modesto residents, by working with community members, local agencies, and Modesto City Council to champion equitable practices to meet these needs.

Through these equitable practices, the PYC wishes to create protective environments; settings that do not harm but rather help and enhance communities. These are environments that are inclusive, safe, accessible and reduce mental stress which is critical in healthy child development and building strong community foundations. The PYC believes that parks are essential protective environments for the health and betterment of the City of Modesto.

A 10-year study of over 3,000 children in southern California found that those living near parks and recreational programs had lower rates of obesity at age 18 compared with children who #18..
- 913 -
City Council, May 7, 2024
Modesto Park Equity Resolution

lived further away1. As demonstrated by medical research, these benefits include improvements in physical health, by building stronger bones and muscles, improving cardiorespiratory fitness, and reducing the risk of developing chronic cardiovascular disease2; mental health by reducing stress and fatigue and improving brain and cognitive functions; social health by building confidence, leadership skills, and fostering new experiences; and academic performance3. This is especially true for children in impacted communities, who face disproportionate levels of environmental, health, and socioeconomic burdens such as exposure to lead paint, increased levels of cardiovascular disease, low-income, high housing burdens, and linguistic isolation when compared to other areas in the City of Modesto.

Access to local open spaces with equitable amenities, infrastructure and programs are crucial for youth and community health and well-being. Having access to green open spaces provides benefits to both physical and mental health, safe opportunities for the exploration of nature, and strengthens communities by providing a space for all to come together.

DISCUSSION:

For the foundation of the Modesto Park Equity project, the PYC reviewed the City of Modesto’s Park amenities map, criteria between regional, community and neighborhood parks, published socioeconomic and demographic information, and Prop 68 funding results. After analyzing the data, the PYC selected James Marshall Park and Robertson Road Park as the project’s priority parks. They then gathered in person observational data and survey responses for James Marshall, Robertson Road, Freedom and Graceada Park to better understand the current use and functionality of these parks and build the base criteria for each to be examined. The purpose of including Freedom and Graceada park was to have a point of reference and comparison data for James Marshall and Robertson Road, on what active and thriving park spaces look like.

As a community park, Graceada can provide more attractions and amenities than a neighborhood park but highlights how a park can be fully activated as a thriving community space. James Marshall, Robertson Road, and Freedom Park are all classified as Neighborhood parks and provide clear examples of the condition of park infrastructure and amenities between these two areas of Modesto. Freedom Park is a part of the Village One No.2 Community Facilities District (CFD) and receives additional funding for maintenance and upkeep through additional property taxes, unlike James Marshall and Robertson Road Park, which are not part of a CFD.

Once a baseline for the current conditions of these parks was established (via ArcGIS QuickCapture tool) the PYC developed surveys to gain community insight on how James Marshall, Robertson Road, Freedom and Graceada parks are used by visitors, providing comparative data on the residents’ knowledge of and recreational use of the four parks. An additional survey was created to capture more detailed information on residents’ current use of 1 Wolch J, et al. Childhood Obesity and Proximity to Urban Parks and Recreational Resources: A Longitudinal Cohort Study. Health and Place 2010;16(3):137-57
2 Maas, J., et el. (2009). “Morbidity is related to a green living environment.” Journal of Epidemiology and Community Health.

Volume 63 (12).
3 Eime, R. et al. 2013. “A systematic review of the psychological and social benefits of participation in sport for children and adolescents: informing development of a conceptual model of health through sport.” International Journal of Behavioral Nutrition and Physical Activity. Volume 10 (98).
#18..
- 914 -
City Council, May 7, 2024
Modesto Park Equity Resolution

Robertson Road and James Marshall parks, as well as how they used, or why they did not use, these parks.

Surveys were created and distributed to the public through outreach events, emails, and community canvassing. During community outreach events, PYC members were able to collect in-person responses to our survey from both youth and adults and further educate them on the Modesto Park Equity project. The analyzed responses are available through the Data Dashboard. Currently, the PYC has received 222 responses to their surveys.

According to the survey data, in their current state, 53% of youth and families residing in our impacted communities do not feel safe recreating in their neighborhood parks, specifically in James Marshall and Robertson Road parks. The goal of the PYC is that all Modesto residents feel safe while visiting parks across the city. The PYC supports the efforts of the Modesto Police Department’s Park Ranger Program to address and improve current societal issues and decrease activities at parks that prevent residents from safely accessing their neighborhood park. The PYC believes that the Park Ranger program should receive continued support to ensure beneficial results for all Modesto residents.

One identified barrier is that some portions of the James Marshall and Robertson Road Park neighborhoods are in the County and lack fully developed streets and transportation infrastructure, which inhibits safe access to green spaces and prevents residents from using these spaces the way they were intended. Other significant barriers of park use identified by the surveys were inadequate overhead lighting, stray dogs, illegal activities, and blight.

To sustain equitable practices a Park Equity Resolution was prepared with the goal that Modesto’s parks are safe, attractive, and well-maintained facilities that will reflect the public’s needs and interests and will welcome residents of all ages, cultural backgrounds, and physical capabilities to recreate in Modesto’s parks and open spaces. The Resolution envisions Modesto’s Park System providing accessible recreational, physical, and cultural opportunities for all Modesto residents, with affordable and inclusive programming focused on community development and connections. One of the main tenants of the proposed Resolution is that all Modesto residents deserve safe, healthy, accessible parks and open spaces.

By championing these equitable practices in the decision-making process of parks and open space, the City of Modesto will close the gap between safe accessible parks and our impacted communities, achieving the goal of Park Equity for all Modesto residents.

Over the past four years Parks Planning and Development staff have been able to obtain $17 million in state grant funding for the renovation of Cesar E. Chavez and Dr. Martin Luther King, Jr. Parks. Both parks are in impacted neighborhoods and these park renovations will significantly increase park equity in West Modesto.

In addition, last year Parks Planning and Development staff identified the following park improvement projects which are currently funded by Measure H in James Marshall and Robertson Road Parks:

James Marshall Park:
 The parking lot at the Neighborhood Center at Marshall Park was restriped in summer 2023.
#18..
- 915 -
City Council, May 7, 2024
Modesto Park Equity Resolution

 Concrete repairs of approximately 1,600 SF were completed in January 2024 to address multiple accessibility issues and tripping hazards.
 Tree trimming throughout the park was completed in January 2024.  Park security lighting upgrades are scheduled for summer 2024 completion.

Robertson Road Park:
 Concrete repairs were completed in January 2024 to address multiple accessibility issues and tripping hazards.
 Basketball court resurfacing is scheduled for spring 2024 completion.  Restroom replacement is scheduled for fall 2024 completion.  Park security lighting upgrades are scheduled for summer 2024 completion.

Parks Planning and Development staff will continue to evaluate the parks system for deferred and preventative maintenance needs that further the goal of park equity throughout the city and will bring priority park improvement projects to Council for consideration.

In addition, Recreation and Park Operations staff will continue to evaluate the parks system and the recreational programming needs that further the goal of park equity throughout the city and will bring priority maintenance needs and program needs to Council for consideration.

In accepting this resolution, the City Council recognizes that systems, structures, and funding streams related to city parks play a pivotal role in shaping the growth, education, living conditions, and thriving opportunities for children and families in Modesto and are committed to enhancing these protective environments to better serve all residents. Furthermore, the City of Modesto will take a holistic approach to addressing the economic, societal, and environmental barriers preventing residents from utilizing their public parks, while continuing to support safe, accessible, functional, and healthy parks and recreational programs across the City of Modesto for all residents.

FISCAL IMPACT:

Any future projects that result from the implementation of this Resolution will be brought to Council for approval and associated costs will be determined at that time.

COMMITTEE RECOMMENDATION:

This item was reviewed by the Safety and Communities Committee on April 15, 2024, and the Committee recommended forwarding the item to Council for approval.

CEQA/NEPA REQUIREMENTS:

The approval of this Resolution is exempt from CEQA/NEPA because it is an administrative action. Any project resulting from this Resolution will be reviewed for CEQA and/or NEPA compliance as required.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution setting forth Modesto’s commitment to creating equitable parks, and protective and healthy environments.
#18..
- 916 -
City Council, May 7, 2024
Modesto Park Equity Resolution

Approved by:

Jeremy Rogers, Director of Parks, Recreation and
Neighborhoods Department
Joseph P. Lopez, City Manager
Attachments:
1) Resolution
#18..
- 917 -
05/07/24/PRN/NHoux/Item X 1 2024-XXX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION SETTING FORTH MODESTO’S COMMITMENT TO

CREATING EQUITABLE PARKS, AND PROTECTIVE AND HEALTHY

ENVIRONMENTS
WHEREAS, the Park Youth Committee (PYC) was formed by the Tuolumne River Trust (TRT) in cooperation with the All Children Thrive (ACT) initiative to work on the Modesto Park Equity project which is a youth-led initiative, with an overall mission to increase safe park access and recreation for all Modesto residents; and
WHEREAS, increasing opportunities for physical activity, building a connection with nature and outdoor experiences directly benefits cognitive development for people of all ages; and
WHEREAS, access to local open spaces with equitable amenities, infrastructure and programs are crucial for youth and community health and well-being; and WHEREAS, having access to green open spaces provides benefits to both physical and mental health, safe opportunities for the exploration of nature, and strengthens communities by providing a space for all to come together; and
WHEREAS, the PYC supports the efforts of the Modesto Police Department’s Park Ranger Program to address and improve current societal issues and decrease activities at parks that prevent residents from safely accessing their neighborhood park; and WHEREAS, multiple barriers, such as lack of fully developed streets or transportation infrastructure on County streets, inadequate overhead lighting, stray dogs, illegal activities and blight, were identified at James Marshall and Robertson Road Park neighborhoods which prevent residents from safely accessing or using these parks; and #18..
- 918 -
05/07/24/PRN/NHoux/Item X 2 2024-XXX
WHEREAS, community participatory data is collected and implemented in the decision making process for park improvement prioritization and selection; and WHEREAS, in an effort to sustain equitable practices this Park Equity Resolution was prepared with the goal that Modesto’s parks are safe, attractive, and well-maintained facilities that will reflect the public’s needs and interests and will welcome residents of all ages, cultural backgrounds, and physical capabilities to recreate in Modesto’s parks and open spaces; and WHEREAS, this Resolution envisions Modesto’s park system providing accessible recreational, physical and cultural opportunities for all Modesto residents, with affordable and inclusive programming focused on community development and connections; and WHEREAS, one of the main tenants of the proposed Resolution is that all Modesto residents deserve safe, healthy, accessible parks and open spaces; and WHEREAS, Parks Planning and Development staff will continue to evaluate the parks system for deferred and preventative maintenance needs that further the goal of park equity throughout the city and will bring priority park improvement projects to Council for consideration; and
WHEREAS, Recreation and Park Operations staff will continue to evaluate the parks system and the recreational programming needs that further the goal of park equity throughout the city and will bring priority maintenance needs and program needs to Council for consideration; and
WHEREAS, the City of Modesto will continue current efforts to collaborate with Stanislaus County to address infrastructure in county islands to improve streets, sidewalks, and walkability to city parks; and
#18..
- 919 -
05/07/24/PRN/NHoux/Item X 3 2024-XXX
WHEREAS, the City of Modesto shall continue to support the Modesto Park Ranger program to address and improve current societal issues and activities at parks; and WHEREAS, the City of Modesto has prioritized investment in parks and shall continue to prioritize park improvements; and
WHEREAS, during the Annual Budget Process, staff will continue updating the Council regarding the City’s commitment to creating equitable parks and protective and healthy environments.

NOW, THEREFORE, BE IT RESOLVED that the City Council recognizes that systems, structures, and funding streams related to city parks play a pivotal role in shaping the growth, education, living conditions, and thriving opportunities for children and families in Modesto and are committed to enhancing these protective environments to better serve all residents.

BE IT FURTHER RESOLVED, the City of Modesto will take a holistic approach to addressing the economic, societal, and environmental barriers preventing residents from utilizing their public parks, while continuing to support safe, accessible, functional, and healthy parks and recreational programs across the City of Modesto for all residents. #18..
- 920 -
05/07/24/PRN/NHoux/Item X 4 2024-XXX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of May, 2024, 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,
CMC, City Clerk
APPROVED AS TO FORM:

BY: ___________________________
JOSE M. SANCHEZ, City Attorney
#18..
- 921 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 07, 2024
Date: April 16, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: An Ordinance to Renew the Modesto Tourism Marketing District CONTACT: Trevin Barber, Economic Development Manager,
[email protected], 209-860-1251
DESCRIPTION:

Consider an Ordinance to renew the Modesto Tourism Marketing District pursuant to the Property and Business Improvement District Law of 1994 for the renewal of a special benefit assessment district for tourism marketing services with a ten-year term. (Funding Source:

Modesto Tourism Marketing District)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s Strategic Plan Area of Focus for Economic Vitality:
 Goal E: Drive the success of a vibrant and economically sustainable business climate.  Goal F: Build and promote a recognizable and desirable identify for the City of Modesto BACKGROUND:

In June 2003, by Resolution No. 2003-316, Council approved an Agreement with the Modesto Convention and Visitors Bureau, Inc., a non-profit corporation (Bureau), to promote and market Modesto for meetings, conventions, tour groups and visitor activities. On August 2005, by Resolution No. 2005-382, Council approved a new agreement with the Bureau which was extended on July 6, 2010 by Resolution No. 2010-285 and provided the CVB with 13.33% of the annual Transient Occupancy Tax (TOT or Tax) receipts up to $2,475,613 and an additional 5% of receipts greater than $2,475,613.

In June 2015, the agreement with the Bureau expired and by Resolution Nos. 2015-224 through 2015-227, the duties, functions, and staff of the Bureau were transferred to the Community and Economic Development Department while the Destination Modesto Task Force convened and made recommendations regarding the City’s destination assets and facilities.

In March 2018, by Resolution No. 2018-107, the Council accepted an informational report on the Destination Modesto Task Force’s accomplishments as well as plans to restore the Bureau as an independent agency. This included hiring a consultant, StoryPowered, to oversee the Bureau transition, entering into a new agreement with the Bureau to provide Transient #19..
- 922 -
City Council, May 07, 2024
Ordinance to Renew the Modesto Tourism Marketing District

Occupancy Tax funding, and appointing the City Council as the Bureau’s Interim Board of Directors. To begin the transition, a Tourism Business Plan was completed and presented to the Economic Development Committee on August 8, 2018. Staff then negotiated an agreement with Civitas to establish the Modesto Tourism and Marketing District in 2019. The Modesto Convention & Visitors Bureau (now Visit Modesto) was officially re-established as an independent agency.

The Modesto Tourism Marketing District
The Modesto Tourism Marketing District (District) is a benefit assessment district proposed to continue a revenue source to help fund marketing and sales promotion efforts for certain Modesto lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed District includes all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Modesto.

Lodging business owners decided to pursue renewal of the District in order to continue a revenue source devoted to marketing Modesto as a tourist, meeting and event destination. If renewed, the District would generate approximately $430,540 on an annual basis for promotion of travel and tourism specific to Modesto.

Tourism Marketing Districts (TMDs or districts) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within a district fund the district, and those funds are used to provide services that are desired by and benefit the lodging businesses within the district.

Tourism Marketing Districts benefits:
 Funds cannot be diverted for other government programs.  They are customized to fit the needs of each destination.  They allow for a wide range of services, including destination marketing, tourism promotion, and sales lead generation.
 They are designed, created and governed by those who will pay the assessment; and  They provide a stable funding source for tourism promotion.

In California, Tourism Marketing Districts are primarily formed pursuant to the Property and Business Improvement District Law of 1994 1(‘94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between Tourism Marketing Districts and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the Tourism Marketing Districts.

Each Tourism Marketing District is governed by an owners’ association, which has a contract with the local jurisdiction to administer the assessment and carry out the activities in the 1 Cal. SHC Code § 36600 - 36600. “Property and Business Improvement District Law of 1994” Added by Stats. 1994, Ch. 897, Sec. 1.
#19..
- 923 -
City Council, May 07, 2024
Ordinance to Renew the Modesto Tourism Marketing District

Tourism Marketing District’s management district plan. In the past, Visit Modesto has served as the owners’ association.

The Modesto Tourism Marketing District Fee Rebate
The Modesto Tourism Marketing District (District) is an organization that plays a crucial role in promoting tourism and enhancing the visitor experience in Modesto, California. The District governance structure includes a Committee consisting of individuals who contribute to its mission. In fiscal year 2022 the District’s Committee adopted the Modesto Tourism District Fee Rebate Program, which aims to support hotels that accept Community Housing and Shelter Services (CHSS) vouchers. Community Housing and Shelter Services (CHSS) is the primary agency in Stanislaus County, which provides emergency shelter to families through motel voucher programs. These vouchers are intended to transition families and individuals from temporary emergency shelter or motel stays into permanent rental housing. CHSS also assists low-income households in obtaining permanent, affordable housing and helps those at risk of homelessness. By participating, hotels contribute to the community by providing emergency shelter to vulnerable populations. Hotels can apply to receive a limited rebate on certain fees or taxes related to tourism and lodging. The goal is to encourage hotels to continue supporting CHSS and contribute to the well-being of the community. To date the District has two hotels that request the rebate: Modesto Hotel requested a rebate once and was reimbursed, and Apex Inn applies monthly and receives a reimbursement.

DISCUSSION:

The Management District Plan (Attachment 2) includes the proposed boundary of the Modesto Tourism Marketing District (District), a service plan and budget and a proposed means of governance. The District will include all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Modesto.

The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than twenty-seven (27) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays by any officer or employee of the United States Government, or of a federal credit union, or of a state, county, city or other domestic public entity who pays rent in the discharge of official government business; and stays by any officer or employee of a bank or insurance company who pays rent in the discharge of official bank or insurance company business.

During the District’s ten (10) year term, upon the recommendation of the District Committee and approval by the Modesto City Council, the assessment rate may be increased by the Owners’ Association to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed businesses as described in the Management District Plan. The increase in any year shall not exceed one-half of one percent (0.50%) of gross short-term sleeping room rental revenue as detailed in the Management District Plan and must be approved by Council prior to implementing.

The renewed District will have a ten (10) year life, beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. Once per year, beginning on the anniversary of District formation, there is a thirty (30) day period in which owners paying fifty #19..
- 924 -
City Council, May 07, 2024
Ordinance to Renew the Modesto Tourism Marketing District

percent (50%) or more of the assessment may protest and initiate a City Council hearing on District termination.

The City of Modesto will be responsible for collecting the assessment on a quarterly basis and is subject to change as determined by the City of Modesto from each assessed lodging business located in the District boundaries. Staff anticipates the City entering a contract with Visit Modesto. That contract will be brought to the Finance Committee for recommendation at the May 14 meeting. Under the terms of the contract, the City of Modesto will forward the assessments to Visit Modesto, Inc., which will have the responsibility of managing District programs as provided in this Management District Plan. The City of Modesto shall be paid based upon the actual costs it incurs in administering the assessment, subject to audit, but such amount shall not exceed three percent (3%) of the amount collected to cover the costs of collecting the assessment.

The Modesto Tourism Marketing District Renewal Process
March 12, 2024 RESOLUTION OF INTENTION HEARING - CITY COUNCIL (COMPLETED)
Upon the submission of a written petition, signed by the business owners in the renewed District who will pay more than fifty percent (50%) of the assessments proposed to be levied, the City Council may initiate proceedings to renew the District by the adoption of a resolution expressing its intention to renew the District.

Petition Status: Petitions in favor of District renewal were submitted by 6 lodging businesses, which represent 60.49% of the total District assessment. This majority petition allows the City Council to initiate proceedings for the District renewal at the March 12, 2024 meeting.

No later than
March 30, 2024 NOTICE (COMPLETED)
The 94 Law requires the City to mail written notice to the owners of all lodging businesses proposed to be assessed within the District. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest District renewal.

May 7, 2024 PUBLIC MEETING AND INTRODUCTION/FIRST READING OF

ORDINANCE
Allow public testimony on the renewal of the District and levy of assessments.

At the public meeting, the City Council shall introduce and conduct the first reading of the ordinance renewing the District and levying the assessment.

May 14, 2024 FINAL PUBLIC HEARING AND SECOND READING/ADOPTION OF

THE ORDINANCE
If written protests are received from the owners of lodging businesses in the renewed District which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as #19..
- 925 -
City Council, May 07, 2024
Ordinance to Renew the Modesto Tourism Marketing District

to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council.

Following a successful public hearing, the City Council shall hold a second reading of the ordinance forming the District for a renewed ten year term and levying the assessment. Upon successful passage of the ordinance, the District shall be renewed, and the ordinance shall go into effect thirty (30) days after successful passage of the ordinance.

FISCAL IMPACT:

If the District is renewed, the annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue for ten years. The City will receive a fee of up to three percent (3%) of the amount collected to cover its actual costs of administration. The Modesto Tourism Marketing District is projected to contribute 45% (or $384,982) of Visit Modesto’s ongoing revenue in Fiscal Year 2024.

RECOMMENDED COMMITTEE ACTION:

A Resolution of Intention to renew the Modesto Tourism Marketing District was presented to the Economic Development Committee on March 4, 2024 and was recommended to forward to Council for future adoption.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Motion introducing and waiving the first reading of an Ordinance declaring formation of the Modesto Tourism Marketing District pursuant to the Property and Business Improvement District Law of 1994 for a renewed ten-year term.

Approved by:

Jessica Hill, Director of Community and Economic
Development
Joseph P. Lopez, City Manager
Attachments:

1. Ordinance Declaring Formation

2. Management District Plan
#19..
- 926 -
05/14/2024/CED/TBarber/Item X 1 2024-XX
ORDINANCE NO. ____________-C.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MODESTO DECLARING FORMATION OF THE MODESTO TOURISM

MARKETING DISTRICT PURSUANT TO THE PROPERTY AND
BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 FOR A

RENEWED TEN-YEAR TERM
WHEREAS, the City of Modesto (City) created the MTMD on May 7, 2019 by Resolution No. 2019-213; and
WHEREAS, the MTMD was created for a four (4) year and eleven (11) month term which ends on June 30, 2024; and
WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.) authorizes the City to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the MTMD have petitioned the City Council to renew the MTMD; and
WHEREAS, the renewed MTMD will include all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Modesto; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on certain lodging businesses, existing and in the future, available for public occupancy within the MTMD to pay for marketing and sales promotions, and other improvements and activities set forth in the Plan; and
WHEREAS, the Plan establishes that the assessment is imposed for a specific benefit received by the businesses paying the assessment is no more than necessary to cover the costs to the City in providing the specific benefit, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor; and WHEREAS, the assessed lodging businesses within the MTMD will receive a specific benefit from the activities and improvements set forth in the Plan; and #19..
- 927 -
05/14/2024/CED/TBarber/Item X 2 2024-XX
WHEREAS, on March 12, 2024 at 5:30 PM at the City Council Chambers located at 1010 10th Street, Lower Level, Modesto, CA 95354, the City Council adopted a Resolution of Intention, Resolution No. 2024-087; and
WHEREAS, the public meeting and public hearing to consider the renewal of the MTMD have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on May 7, 2024 at 5:30 PM at the City Council Chambers located at 1010 10th Street, Lower Level, Modesto, CA 95354, the City Council held a public meeting regarding the renewal of the MTMD, introduced and conducted a first reading of the Ordinance regarding the renewal of the MTMD, and the City Council heard comments from the public and interested partiesregarding the renewal of the MTMD and the levy of the proposed assessment; and
WHEREAS, on May 14, 2024 at 5:30 PM at the City Council Chambers located at 1010 10th Street, Lower Level, Modesto, CA 95354, the City Council held a public hearing regarding the renewal of the MTMD, and the City Council heard and received all objections and protests, if any, to the renewal of the MTMD and the levy of the proposed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed MTMD which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and
WHEREAS, Streets and Highways Code sections 36625 and 36660 specify that the MTMD may be renewed through adoption of a Resolution of Formation; and WHEREAS, any action that is authorized or required to be taken by a resolution of the City Council may also be taken by an ordinance of the City Council; and WHEREAS, the City Council desires to adopt this Ordinance to renew the MTMD for a ten year term.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MODESTO DOES HEREBY ORDAIN AS FOLLOWS :

SECTION 1. ADOPTION OF UNCODIFIED ORDINANCE.

1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct.

2. The MTMD is hereby renewed for a ten (10) year term, beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. #19..
- 928 -
05/14/2024/CED/TBarber/Item X 3 2024-XX

3. The Plan dated January 10, 2024, and included as an attachment to the City Council staff report dated May 14, 2024, is hereby adopted and approved.

4. The activities to be provided to benefit businesses in the MTMD will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the MTMD; to provide activities or improvements outside the MTMD; or for any purpose other than the purposes specified in this Ordinance, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the MTMD boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the MTMD.

5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the MTMD that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.
d) Assessments imposed pursuant to the MTMD are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “MTMD Assessment” or “Tourism Assessment”.

6. The assessments levied for the MTMD shall be applied towards marketing and sales promotions to market MTMD lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.

7. Assessments levied on lodging businesses pursuant to this ordinance shall be levied on the basis of benefit. Because the services provided are intended to increase sleeping room rentals, an assessment based on gross short-term sleeping room rental revenue is the best measure of benefit.
#19..
- 929 -
05/14/2024/CED/TBarber/Item X 4 2024-XX

8. The assessments for the entire MTMD will total approximately $430,540 in year one (1).

9. Bonds shall not be issued to fund the MTMD.

10. The MTMD shall include all lodging business with twenty (20) rooms or more, existing and in the future, located within the boundaries of the City of Modesto. A boundary map as shown in Exhibit A is attached hereto and incorporated herein by reference.

11. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the MTMD assessment is levied as long as they are used consistent with the requirements set forth herein.

12. The assessments to fund the activities and improvements for the MTMD will be collected by the City on a quarterly basis and is subject to change as determined by the City, and in accordance with Streets and Highways Code §36631.

13. The City Council, through adoption of this Ordinance and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MTMD as defined in Streets and Highways Code §36612. The City Council has determined that Visit Modesto, Inc. shall be the MTMD Owners’ Association. The City Council may, from time to time, identify an alternative qualified entity to serve as Owner’s Association of the MTMD.

14. Visit Modesto, Inc., pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the MTMD.

15. The MTMD renewed pursuant to this Ordinance will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

16. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the renewal of the MTMD and to levy the assessments.

17. Adoption of this Ordinance shall constitute the levy of an assessment in each fiscal year referred to in the Plan.

SECTION 2. ENVIRONMENTAL REVIEW. The proposed Ordinance is exempt from CEQA under the general rule in CEQA Guidelines section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the #19..
- 930 -
05/14/2024/CED/TBarber/Item X 5 2024-XX
environment. The Ordinance adopts an assessment that will be used for tourism marketing activities. It does not authorize or finance any development, improvements or any other project with the potneital to have a significant effect on the environment.

SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council of the City of Modesto declares that it would have passed and adopted this Ordinance and each and all provisions irrespective of the fact that any one or more of said provisions may be declared invalid or unconstitutional without regard to any such decision or preemptive legislation.

SECTION 4. EFFECTIVE DATE. This ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

SECTION 5. PUBLICATION. At least two (2) days prior to its final adoption, copies of this ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction and the places where this ordinance is posted.
#19..
- 931 -
05/14/2024/CED/TBarber/Item X 6 2024-XX
The foregoing ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of May, 2024, by Council Member _________, who moved its introduction and passage to print, which motion being duly seconded by Council Member_____, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers:

NAYS: Councilmembers:

Absent: Councilmembers:

APPROVED:_________________________
SUE ZWAHLEN, Mayor
ATTEST:

BY: __________________________________
DIANE NAYARES-PEREZ City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: __________________________________
JOSE M. SANCHEZ, City Attorney
#19..
- 932 -
05/14/2024/CED/TBarber/Item X 7 2024-XX

FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the ____day of May , 2024, Councilmember ______________moved its final adoption, which motion being duly seconded by Councilmember ________________, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:________________________

SUE ZWAHLEN, MAYOR
ATTEST: ____________________________
DIANE NAYARES-PEREZ City Clerk
Effective Date: _________________, 2024
#19..
- 933 -
05/14/2024/CED/TBarber/Item X 8 2024-XX
Exhibit A
#19..
- 934 -
05/14/2024/CED/TBarber/Item X 9 2024-XX
#19..
- 935 -
April 11, 2019
R

MODESTO TOURISM MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
2024-2034
January 10, 2024
#19..
- 936 -

CONTENTS
I. OVERVIEW.......................................................................................................................................... 3 II. BACKGROUND................................................................................................................................. 5 III. ACCOMPLISHMENTS ..................................................................................................................... 6 IV. BOUNDARY........................................................................................................................................ 8 V. ASSESSMENT BUDGET AND SERVICES..............................................................................10 A. Annual Service Plan.......................................................................................................... 10 B. Annual Budget .................................................................................................................. 11 C. California Constitutional Compliance .............................................................................. 13 D. Assessment........................................................................................................................ 15 E. Interest and Penalties ........................................................................................................ 16 F. Time and Manner for Collecting Assessments................................................................. 16 VI. GOVERNANCE ...............................................................................................................................17 A. Owners’ Association......................................................................................................... 17 B. Brown Act and California Public Records Act Compliance ............................................ 17 C. Annual Report................................................................................................................... 17 APPENDIX 1 – LAW ....................................................................................................................................18 APPENDIX 2 – ASSESSED BUSINESSES..............................................................................................31 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
#19..
- 937 -
MTMD Management District Plan 3
January 10, 2024
I. OVERVIEW
Developed by Visit Modesto, Inc. (VM) and Modesto lodging businesses, the Modesto Tourism Marketing District (MTMD) is an assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The MTMD was created in 2019 for a four (4) year and eleven (11) month term. VM, Modesto lodging businesses, now wish to renew the MTMD for an additional ten (10) year term.

Location: The renewed MTMD includes all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Modesto (referred to herein as “assessed businesses”), as shown on the map in Section IV.

Services: The MTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing and sales promotions will increase demand for overnight tourism and market payors as tourist, meeting, and event destinations, thereby increasing demand for room night sales.

Budget: The total MTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $430,540. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, as businesses open and close, and if assessment rates are increased as detailed in Section V.

Cost: The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on:
stays of more than twenty-seven (27) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays by any officer or employee of the United States Government, or of a federal credit union, or of a state, county, city or other domestic public entity who pays rent in the discharge of official government business; and stays by any officer or employee of a bank or insurance company who pays rent in the discharge of official bank or insurance company business.

During the MTMD’s ten (10) year term, upon the recommendation of the TMD Committee and approval by the Modesto City Council, the assessment rate may be increased by the Owners’ Association to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed businesses as described in Section V. The increase in any year shall not exceed one-half of one percent (0.50%) of gross short-term sleeping room rental revenue as detailed in Section V. #19..
- 938 -
MTMD Management District Plan 4
January 10, 2024
……………………………………………………..

Collection: The City of Modesto (City) will be responsible for collecting the assessment (including any delinquencies, interest, and penalties) from each assessed business located in the boundaries of the MTMD. As the tax administrator, the City shall have the flexibility to determine and set the assessment collection schedule (monthly/quarterly). The City shall take all reasonable efforts to collect the assessments from each assessed business.

Duration: The renewed MTMD will have a ten (10) year life, beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the MTMD may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if business owners support continuing the MTMD programs. Once per year, beginning on the anniversary of MTMD formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on MTMD termination.

Management: With the approval of the Modesto City Council, Visit Modesto, Inc. (VM) shall continue to serve as the MTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council. VM shall create a TMD Management Committee comprised of lodging business owners paying the assessment. The TMD Management Committee shall be tasked with determining how MTMD funds are spent within the designated programs in this Plan, subject to final approval by VM’s Board.
#19..
- 939 -
MTMD Management District Plan 5
January 10, 2024
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas, and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $500 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important
that Modesto lodging
businesses continue to invest
in stable, commerce-specific
marketing programs.

TMDs utilize the efficiencies
of private sector operation in the market-based promotion of tourism districts. TMDs allow lodging business owners to organize their efforts to increase commerce. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase commerce.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created, and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. #19..
- 940 -
MTMD Management District Plan 6
January 10, 2024
III. ACCOMPLISHMENTS

1. TOT Revenue
• Since the 2018/19 Fiscal Year, total TOT (Transient Occupancy Tax) revenue has increased by over 21%
• In marketing spending on tour and travel related business has increased by over 24% (DRA reports)

2. Pandemic Revenue
Throughout the pandemic, the Modesto Hospitality market achieved the best results in the Central Valley. In the fiscal year 2021-22, the market performance for Modesto far exceeded all cities of the Central Valley in Occupancy and RevPAR resulting in a record year for TOT at $3.6M. More importantly, in the fiscal year ending June 30, 2020, after 90 days of a global standstill, the TOT performance in Modesto exceeded the best year in collection history (2018-19). All these achievements occurred while the global travel industry was in constant flux.

More importantly, compared to the Central Valley’s largest cities while experiencing the reduced room count, Modesto outperformed every city in pre-pandemic v post-pandemic performance for 2022-23 in both Occupancy and RevPAR. Note that while all cities experienced a loss in occupancy, Modesto had the lowest variance and was the only city to GROW in RevPAR.

3. February/March Growth
Upon inception, the Visit Modesto team committed to the MTMD that ‘shoulder periods’ would be the primary focus of efforts to grow occupancy & RevPAR. The first initiative was launched in February 2020, the Almond Blossom Cruise, for the February/March season with a unique Agricultural Tourism and a long-drive market-stay-overnight angle. The results have been incredible, though a global pandemic almost brought tourism to a grinding halt starting in February of 2020.

The results for RevPAR performance are below compared to pre-pandemic levels; REVPAR 2019 2020 2021. 2022. 2023.

February $64.27 $66.44 $66.80 $77.53 $83.17
March $71.28 $49.91* $77.84 $82.80 $79.60
*Global quarantines began in March 2020
The end result is incredible with a 29.5% increase for February and a 11.7% increase for March.

These types of results exemplify the reason the MTMD was formed and the potential that the team at Visit Modesto has to impact tourism when the market conditions and travel trends are aligned for new initiatives.

4. Destination Programs
During the pandemic, Visit Modesto had several successful initiatives that brought significant visitor impact during traditionally low occupancy, low visitation periods; • Almond Blossom Cruise; increased occupancy and revenues for February/March. In 2022, in the heart of the Pandemic when the weather was good (2023 had 40 out of 45 days with rain) the Almond Blossom Cruise generated over 100K Visitor Trips alone! • MoCheer impacts December visitor traffic.
• MoFresh is creating more opportunities for visitors to stay for more than gas fill-ups May through August
#19..
- 941 -
MTMD Management District Plan 7
January 10, 2024
• MoPink has created both local and regional reasons to spend more in Modesto and have an impact on charities that keep money local in support of local programs

5. Global Perception of Modesto
With a change in focus from a one-dimensional value proposition of Modesto, Graffiti Summer, there has been an incredible public relations impact for the community. Modesto’s restaurants, agricultural attractions and murals have all received national press attention.

Awards & Accolades – Modesto is no longer on all the ‘naughty’ lists! - 2021; ESTO Award Finalist (1 of 3 in the US) US Travel Excellence Award - 2021; Poppy Award Finalist (1 of 3 in California) Visit CA Excellence Award - 2022; Top Cities for Cyclists
- 2022; Best Places to Live US News & World Report
- 2023; #8 Best Places to Live in CA Forbes2023
- 2023; #87 Best Cities in America (made the top 100 list!!!) - 2023; #1 Hidden Gem Live Music City in the US
Public Relations/Influencers & Major Media
- Key Highlights
o 2021; Good Day Sacramento (7 times), ABC 10 & Fox 40 Sacramento o 2022; HiTravel Tales, Forbes, Travel Pulse, SF Gate September o 2023; NBC Los Angeles, Thrillist, Secret San Francisco, Washington Post, Tasting Table, KNBC Los Angeles, KSND San Diego, KOVR Sacramento, SF Gate, HelloRubyDoodle, Momtastic, Travel Tweeks, Tennessee Tribune, Yahoo Canada #19..
- 942 -
MTMD Management District Plan 8
January 10, 2024
IV. BOUNDARY
The MTMD will include all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Modesto (referred to herein as “assessed businesses”), as shown in the map on the following page.

Lodging business means: any structure, or any portion of any structure within the City, which is intended or designed for lodging or sleeping purposes wherein the owner or operator thereof offers occupancy, defined as the use or possession, or the right to use or possession granted by the owner or operator thereof for compensation of any room or rooms or portion thereof for lodging or sleeping purposes. Lodging business does not include any vacational rental, vacation rental unit, short-term vacation rental, nor any hospital, medical clinic, convalescent home or other temporary or permanent domicile equipped primarily for the care of aged or infirm people.

A complete listing of assessed businesses within the renewed MTMD, can be found in Appendix 2. #19..
- 943 -
MTMD Management District Plan 9
January 10, 2024
#19..
- 944 -
MTMD Management District Plan 10
January 10, 2024
V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the MTMD funds are sales and marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by VM. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $430,540.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and VM’s Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the MTMD, any and all assessment funds may be used for the costs of defending the MTMD.

Each budget category includes all costs related to providing that service in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.

The costs of an individual staff member may be allocated to multiple budget categories, as appropriate Administration &
Collection, $64,581
, 15%
Contingency /
Reserve / Renewal,
$21,527 , 5%
Sales &
Marketing,
$344,432 , 80%
Initial Annual Assessment Budget - $430,540
#19..
- 945 -
MTMD Management District Plan 11
January 10, 2024
in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by VM on an as- needed basis.

Sales and Marketing
A sales and marketing program promotes assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Modesto as a desirable place to visit. The program has the goal of increasing overnight visitation and room night sales at assessed businesses, and may include, but not limited to, the following activities:
• Multi-media marketing efforts including digital, print, and other diversified media strategies curated to target prospective visitors and maximize online presence and visibility; • Television ads targeted at potential visitors;
• Radio ads targeted at potential visitors;
• Attendance of trade shows;
• Special events highlighting unique aspects of Modesto; • Preparation and production of collateral promotional materials such as brochures, flyers, and maps;
• Data and industry analytics used for marketing;
• Participation fees and attendance of professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists and group events to Modesto; and • Any agency fees and commissions related to the execution of programs and activities authorized by this Plan.

Administration and Collection
The administration portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees. The collection portion of the budget shall be utilized for paying the City of Modesto for the costs of collecting the assessment. The City of Modesto shall be paid based upon the actual costs it incurs in administering the assessment, subject to audit, but such amount shall not exceed three percent (3%) of the amount collected to cover the costs of collecting the assessment.

Contingency/Reserve/Renewal
A portion of the budget will be allocated to a contingency fund to account for lower than anticipated collections. If collected contingency funds remain in the budget near the expiration of the MTMD’s term, and business owners wish to renew the District, the contingency funds may be used for renewal costs.

B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $430,540 annually, or $4,305,400 through FY 2033 – 34 if assessment rates are not increased. If the maximum assessment rate increases are adopted, the estimated total assessment budget through FY 2033 – 34 is $10,736,500 This amount may fluctuate as sales and revenue increase at assessed businesses, and as businesses open and close, but is not expected to change significantly over the term. #19..
- 946 -
MTMD Management District Plan 12
January 10, 2024
The initial annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. Upon the recommendation of the TMD Committee, the assessment rate may be increased by VM’s Board and subject to Modesto City Council approval, up to a maximum of one-half of one percent (0.50%) per year to a maximum rate of three percent (3%). However, the assessment rate increase in any given year may be an amount less than one-half of one percent (0.50%). For example, the assessment rate in FY 2025-26 could be increased by one-quarter of one percent (0.25%) and in FY 2026-27 the assessment rate could be increased by another one-quarter of one percent (0.25%), etc. up to a maximum assessment rate of three percent (3%).

The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Management District Plan.

Estimated Annual Budget If Maximum Assessment Rates Are Adopted Fiscal
Year Sales & Marketing Administration & Collection
Contingency /
Reserve / Renewal Total
2024-25 $344,432 $64,581 $21,527 $430,540
2025-26 $516,648 $96,872 $32,291 $645,810
2026-27 $688,864 $129,162 $43,054 $861,080
2027-28 $861,080 $161,453 $53,818 $1,076,350
2028-29 $1,033,296 $193,743 $64,581 $1,291,620
2029-30 $1,033,296 $193,743 $64,581 $1,291,620
2030-31 $1,033,296 $193,743 $64,581 $1,291,620
2031-32 $1,033,296 $193,743 $64,581 $1,291,620
2032-33 $1,033,296 $193,743 $64,581 $1,291,620
2033-34 $1,033,296 $193,743 $64,581 $1,291,620
Total $8,610,800 $1,614,525 $538,175 $10,763,500
The table below demonstrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the MTMD’s term. #19..
- 947 -
MTMD Management District Plan 13
January 10, 2024
Estimated Annual Budget if Assessment Rates Are Not Increased Fiscal
Year Sales & Marketing Administration & Collection
Contingency /
Reserve / Renewal Total
2024-25 $322,905 $64,581 $21,527 $430,540
2025-26 $344,432 $64,581 $21,527 $430,540
2026-27 $344,432 $64,581 $21,527 $430,540
2027-28 $344,432 $64,581 $21,527 $430,540
2028-29 $344,432 $64,581 $21,527 $430,540
2029-30 $344,432 $64,581 $21,527 $430,540
2030-31 $344,432 $64,581 $21,527 $430,540
2031-32 $344,432 $64,581 $21,527 $430,540
2032-33 $344,432 $64,581 $21,527 $430,540
2033-34 $344,432 $64,581 $21,527 $430,540
Total $3,422,793 $645,810 $215,270 $4,305,400
C. California Constitutional Compliance
The MTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the MTMD assessment is a business-based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the MTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the MTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed businesses within the boundaries of the MTMD, and are narrowly tailored. MTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees.

Assessment funds shall not be used to feature non-assessed businesses in MTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) #19..
- 948 -
MTMD Management District Plan 14
January 10, 2024
are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with nonassessed businesses for the provision of services to those businesses.

The assessment imposed by this MTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed businesses will be provided only to businesses paying the district assessment, with marketing and sales programs promoting businesses paying the MTMD assessment. The marketing and sales programs will be designed to increase demand for room night sales at each assessed business. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed businesses.

Although the MTMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayer occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the MTMD are government services within the meaning of Proposition 265 . Further, the legislature has determined
that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayer occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
MTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by VM, and reports submitted on an annual basis to the City. Only assessed businesses will be featured in marketing materials, receive sales leads generated from MTMD-funded activities, be featured in advertising campaigns, and benefit from other MTMD-funded services. Nonassessed businesses will not receive these, nor any other, MTMD-funded services and benefits. 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
#19..
- 949 -
MTMD Management District Plan 15
January 10, 2024
The MTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-MTMD funds. MTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue on all lodging businesses with twenty (20) rooms or more, existing and in future, available for public occupancy, located within the boundaries of the City of Modesto. Based on the benefit received, assessments will not be collected on: stays of more than twenty-seven (27) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays by any officer or employee of the United States Government, or of a federal credit union, or of a state, county, city or other domestic public entity who pays rent in the discharge of official government business; and stays by any officer or employee of a bank or insurance company who pays rent in the discharge of official bank or insurance company business.

During the ten (10) year term, the assessment rate may be increased by VM’s Board and Modesto City Council approval up to a total of three percent (3%) of gross short-term sleeping room rental revenue.

The initial annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. The maximum increase in any year shall not exceed one-half of one percent (0.50%). Any assessment rate increase approved by VM’s Board shall be included in the annual report.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the assessed businesses within the MTMD, with costs allocated based on the proportional benefit conferred to each assessed business. Activities funded by the MTMD, are specifically targeted to increase demand for room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced room nights.

The term “gross short-term sleeping room rental revenue” as used herein means the consideration charged, whether or not received, for the occupancy of space in an assessed business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross short-term sleeping room rental revenue does not include compensation for services or products.

Gross short-term sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state, or local taxes collected, including but not limited to transient occupancy taxes.
#19..
- 950 -
MTMD Management District Plan 16
January 10, 2024
The assessment is levied upon and a direct obligation of the assessed business. However, the assessed business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the MTMD assessment is identified separately it shall be disclosed as the “MTMD Assessment.” As an alternative, the disclosure may include the amount of the MTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Interest and Penalty Charges
The MTMD shall reimburse the City of Modesto for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent MTMD assessment are sought to be recovered in the same collection action by the City, the MTMD shall bear its pro rata share of such collection costs.

Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Delinquency
Any assessed business that fails to remit any assessment imposed by this Plan within the time required shall, in addition to the amount of the assessment, pay a penalty of five percent (5%) of the amount of the assessment per month or fraction thereof until paid; the maximum penalty imposed on any one delinquency shall not exceed twenty-five percent (25%) of the amount of the assessment.

2. Fraud
If the City determines that the non-payment of any assessment due from any transient or assessed business under this Plan is due to intentional non-payment or fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated above.

3. Penalties
Every penalty imposed and collected under the provisions of this section by the City, shall be required to be paid and shall be retained by the City to cover the cost of collection of the delinquency.

F. Time and Manner for Collecting Assessments
The MTMD assessment will be implemented beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the assessment on a quarterly basis and is subject to change as determined by the City (including any delinquencies, interest and penalties) from each assessed business located in the City of Modesto. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City shall forward the assessments collected to the Owners’ Association.
#19..
- 951 -
MTMD Management District Plan 17
January 10, 2024
VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MTMD as defined in Streets and Highways Code §36612. The City Council has determined that Visit Modesto, Inc. (VM) will continue to serve as the Owners’ Association for the MTMD.

TMD Management Committee
VM will create a TMD Management Committee charged with managing funds and implementing programs in accordance with this Plan. The TMD Management Committee will be required to provide an annual report on activities and expenditures to the City of Modesto, which will also be available to assessed business owners. The TMD Management Committee must also hold open meetings and make records available pursuant to the Brown Act and Public Records Act.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of VM board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
VM shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
#19..
- 952 -
MTMD Management District Plan 18
January 10, 2024
APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2023 SUPPLEMENT *** (ALL 2022 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businessesin a business district are not taxesfor the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, #19..
- 953 -
MTMD Management District Plan 19
January 10, 2024
and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessmentsthey may levy and the proper determination ofspecial benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
#19..
- 954 -
MTMD Management District Plan 20
January 10, 2024
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters, and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
#19..
- 955 -
MTMD Management District Plan 21
January 10, 2024
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
#19..
- 956 -
MTMD Management District Plan 22
January 10, 2024
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. #19..
- 957 -
MTMD Management District Plan 23
January 10, 2024
(3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
#19..
- 958 -
MTMD Management District Plan 24
January 10, 2024
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that #19..
- 959 -
MTMD Management District Plan 25
January 10, 2024
the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the #19..
- 960 -
MTMD Management District Plan 26
January 10, 2024
district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments #19..
- 961 -
MTMD Management District Plan 27
January 10, 2024
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
#19..
- 962 -
MTMD Management District Plan 28
January 10, 2024
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. #19..
- 963 -
MTMD Management District Plan 29
January 10, 2024
(2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall #19..
- 964 -
MTMD Management District Plan 30
January 10, 2024
begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
#19..
- 965 -
MTMD Management District Plan 31
January 10, 2024
APPENDIX 2 – ASSESSED BUSINESSES
Hotel Address City, State, Zip
Apex Inn 2225 Yosemite Blvd Modesto, CA 95354-3003
Baymont Inn & Suites 4100 Salida Blvd Modesto, CA 95358-8840 Best Western Palm Court Inn 2001 W Orangeburg Ave Modesto, CA 95350-3741 Comfort Inn Modesto 2025 W Orangeburg Ave Modesto, CA 95350-3741 Discovery Inn 115 Downey Ave Modesto, CA 95354-1201
Doubletree Hotel Modesto 1150 9th St Modesto, CA 95354-0823 Economy Inn 602 Mchenry Ave Modesto, CA 95350-5412
El Capitan Motel 1121 Needham St Modesto, CA 95354-0731 Modesto Days Inn 1312 Mchenry Ave Modesto, CA 95350-5377 Modesto Hotel 1720 Sisk Rd Modesto, CA 95350-2500
Modesto Marriott Residence Inn 2901 HealthCare Way Modesto, CA 95356 Motel 6 807 Needham St Modesto, CA 95354-0736
Motel 6 Modesto 1920 W Orangeburg Ave Modesto, CA 95350-3740 Quality Inn 500 Kansas Ave Modesto, CA 95351-1605
Ramada By Wyndham 1525 Mchenry Ave Modesto, CA 95350-4576 Rodeway Inn 912 Mchenry Ave Modesto, CA 95350-5417
Springhill Suites Modesto 1901 W Orangeburg Ave Modesto, CA 95350-3838 Tiki Lodge 936 Mchenry Ave Modesto, CA 95350-5417
Townhouse Lodge 909 16th St Modesto, CA 95354-1117
Travelers Motel 710 N 9th St Modesto, CA 95350-5795
Yosemite Inn 500 Kansas Ave Modesto, CA 95351-1605
#19..
- 966 -
- 1 -
4/23/2024 5:00:00 PM

OFFICE OF THE CITY CLERK

NOTICE OF SPECIAL MEETING
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, MAY 7, 2024 AT 4:15 PM
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.

Any and all of the following agenda items are subject to action being taken by the Modesto City Council.

The business to be considered at said City Council meeting shall consist of a Closed Session concerning the following:

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: City of Modesto v. Kimberly Soranno
Superior Court of California, County of Stanislaus
Case No.: CV-22-002099
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCEA Negotiator: Christina Alger
Employee Organization: Modesto City Employees Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCMA Negotiator: Christina Alger
Employee Organization: Modesto Confidential & Management Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MPOA Negotiator: Christina Alger
Employee Organization: Modesto Police Officers’ Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MPNSA Negotiator: Christina Alger
Employee Organization: Modesto Police Non-Sworn Association #20..
- 967 -
- 2 -
4/23/2024 5:00:00 PM
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) –MPMA Negotiator: Christina Alger
Employee Organization: Modesto Police Management Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCFFA Negotiator: Christina Alger
Employee Organization: Modesto City Firefighters Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Negotiator: Christina Alger
Employee Organization: Unrepresented Management and Confidential Employees

BY ORDER OF THE CHAIR
/S
Diane Nayares-Perez, City Clerk
Posted pursuant to Government Code Section 54956 on the bulletin board at Tenth Street Place on at by
date time signature
#20..
- 968 -