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MODESTO CITY COUNCIL
www.modestogov.com
AGENDA
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, August 13, 2024 at 5:30 PM
Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Public Comment will only be in-person. Members of the public who wish to address the Council, by providing public comment, during the meeting must do so in-person in the Council Chambers.
As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation.
*Members of the public will be allowed to provide public comment through Zoom if a Councilmember is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Council meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link https://attend.wordly.ai/join/RJDY-6364.
"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.
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You may observe a livestream of the meeting at http://media.modestogov.com. You may also view or listen to the meeting as indicated below.
THE MEETING CAN BE VIEWED BY ZOOM VIDEO
CONFERENCING OR TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view Council meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
Enter the following link into an Internet Browser
https://us02web.zoom.us/j/86945970570,
Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID 869 4597 0570
Passcode 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Council meeting.
Joining the City Council meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can listen by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID 869 4597 0570 Passcode 84326
SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Councilmembers and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.
This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City’s Web site at www.modestogov.com.
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website https://www.modestogov.com/council-meetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, - 2 -
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programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Pledge of Allegiance to the Flag
Invocation: Pat Nagle, Redeemer
City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session
MISCELLANEOUS
Legislation, Appointments, Other
1. Consider accepting the resignation of Michelle Buer from the Landmark Preservation Commission. (Funding Source: Not Applicable)
Staff Recommendation:
Resolution accepting the resignation of Michelle Buer from the City of Modesto Landmark Preservation Commission.
CED; Jessica Hill, 209-577-5267, [email protected]
2. Consider appointing Angela Drew as the Poet Laureate of the City of Modesto for a two-year term retroactive to July 1, 2024 through June 30, 2026. (Funding Source: Not Applicable)
Staff Recommendation:
Resolution appointing Angela Drew as the Poet Laureate of the City of Modesto for a two-year term retroactive to July 1, 2024 through June 30, 2026.
PRN; Diane Sheatsley, 209-577-5418, [email protected]
PUBLIC COMMENT IN PERSON
Three-minute time limit per speaker.
Only interested persons in the audience may present these matters. Under State law, Councilmembers may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
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d. Request staff to report back at a subsequent meeting. e. Finally, a Councilmember or the Council itself may take action to direct staff to place a matter of business on a future agenda.
CONSENT ITEMS – ROLL CALL VOTE REQUIRED
Information concerning the consent items listed below has been forwarded to each Councilmember prior to this meeting for study. Unless some member of the audience or Councilmember has a question concerning an item and asks that it be withdrawn from the consent list, the Council approves the items at one time. The action taken by the Council in approving consent items is set forth in the explanation of this individual item.
CONSENT
An item may be removed from consent and discussed at the request of an audience member or Councilmember.
Consent
3. Consider approving the minutes for the July 9, 2024 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
Motion approving the minutes for the July 9, 2024 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] Consent
4. Consider approving the updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a). (Funding Source: Not Applicable)
Staff Recommendation:
Resolution approving the updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a).
CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] Consent
5. Consider accepting the City of Modesto’s Permanent Local Housing Allocation (PLHA) Program Year Four allocation. (Funding Source: Permanent Local Housing Allocation Funds)
Staff Recommendation:
Resolution accepting the City of Modesto’s Permanent Local Housing Allocation (PLHA) Program Year Four Award, authorizing the City Manager, or his designee, to execute any program Agreements required for implementation and acceptance of the Permanent Local Housing Allocation (PLHA) Program.
Resolution amending the Fiscal Year 2024-2025 Multi-Year Fund Budget to a project for the Fiscal Year 2024-2025 PLHA Program to be funded with the Permanent Local Housing Allocation Program Grant.
CED; Edgar Garcia, 209-577-5211, [email protected] - 4 -
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Consent
6. Consider amending the Section 6 Policy (Housing Rehabilitation Program) of the Housing and Urban Development (HUD) Policies & Procedures Manual. (Funding Source: HUD Funding)
Staff Recommendation:
Resolution amending Section 6 (Housing Rehabilitation Program) of the Housing and Urban Development Policies & Procedures Manual.
CED; Edgar Garcia, 209-577-5211, [email protected] Consent
7. Consider approving a Modesto Forward Grant Agreement with Community Housing and Shelter Services to administer a Homeless Prevention and Rapid Rehousing Program in the amount not to exceed $525,000 to support households experiencing homelessness or at imminent risk of experiencing homelessness in the City of Modesto. (Funding Source: American Rescue Plan Act Funding)
Staff Recommendation:
Resolution approving a Modesto Forward Grant Agreement with Community Housing and Shelter Services to administer a Homeless Prevention and Rapid Rehousing Program in the amount not to exceed $525,000 to support households experiencing homelessness or at imminent risk of experiencing homelessness in the City of Modesto and authorizing the City Manager, or his designee, to execute the Agreement.
CED; Edgar Garcia, 209-577-5211, [email protected] Consent
8. Consider approving amendments to the Capital Facilities Fees Policies and Procedures. (Funding Source: Capital Facilities Fees)
Staff Recommendation:
Resolution approving the amendments to the Capital Facilities Fees Policies and Procedures.
CED; Edgar Garcia, 209-577-5211, [email protected] Consent
9. Consider a Resolution of Intention to form City of Modesto Community Facilities District (CFD) No. 2024-1 (Tivoli), an area bounded by Claratina Avenue to the north, Oakdale Road to the west, Sylvan Avenue to the south, and Roselle Avenue, and a Resolution of Intention to incur debt for CFD No. 2024-1. (Funding Source: Developer Deposit)
Staff Recommendation:
Resolution of Intention to form City of Modesto Community Facilities District (CFD) No. 2024-1 (Tivoli) to establish Improvement Area No. 1, designate a future annexation area and Authorize the Levy of a Special Tax within said Community Facilities District.
Resolution of Intention of the City of Modesto to incur bonded indebtedness in the amount not to exceed $120,000,000 within the proposed City of Modesto - 5 -
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Community Facilities District No. 2024-1 (Tivoli).
CED; Edgar Garcia, 209-577-5211, [email protected] Consent
10. Consider approving an Agreement with LeSar Development Consultants to assist in the development of the 2025-2030 Consolidated Plan, including the Year One Annual Action Plan and the Affirmatively Furthering Fair Housing Plan, for a total amount not to exceed $200,000. (Funding Source: Community Development Block Grant and HOME Investment Partnership Funds)
Staff Recommendation:
Resolution approving an Agreement with LeSar Development Consultants to assist in the development of the 2025-2030 Consolidated Plan, including the Year One Annual Action Plan and Affirmatively Furthering Fair Housing Plan, for a total amount not to exceed $200,000 and authorizing the City Manager, or his designee, to execute the Agreement.
CED; Edgar Garcia, 209-577-5211, [email protected] Consent
11. Consider approving Agreements for Plan Review and Inspection Services with Wildan Engineering, Elk Grove, CA, and BPR Consulting Group, Madera, CA for a total combined amount not to exceed $2,500,000 over five years. (Funding Source: Building Permit Fees/Measure H)
Staff Recommendation:
Resolution approving the Award of Proposal and Agreements for Plan Review and Inspection Services to Wildan Engineering, Elk Grove, CA and BPR Consulting Group, Madera, CA, for a two-year Agreement with three one-year extension options, for an annual estimated amount of $500,000 and a total not to exceed $2,500,000 over five years; authorizing the Director of Finance to adjust agreement totals between consultant’s based on availability and department’s needs, ensuring the combined total amount does not change and authorizing the City Manager, or his designee, to execute the Agreements.
CED; Oscar Diaz, 209-571-5885, [email protected]
Consent
12. Consider approving a Change in Ownership request for Retail Cannabis Dispensary CR and D Inc. (Funding Source: Cannabis Annual Permit Fee) Staff Recommendation:
Resolution approving the Change in Ownership request for Retail Dispensary CR and D Inc. resulting in Carolina Fernandez acquiring eighty percent (80%) of CR and D Inc.
CED; Sean Rando, 209-577-5473, [email protected]
Consent
13. Consider accepting the Monthly Investment Report for May 2024. (Funding Source:
Various Funds)
Staff Recommendation:
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Motion accepting the Monthly Investment Report for May 2024.
FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
Consent
14. Consider accepting an informational report for the June 2024 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable) Staff Recommendation:
Motion accepting an informational report for the June 2024 Accounts Payable Payment Register and Void Report.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent
15. Consider approving an Agreement with Golden State Fire Apparatus for the purchase of one BME 4x4 Freightliner Wildland Pumper for a total amount not to exceed $530,831. (Funding Source: General Fund, Measure H Funds) Staff Recommendation:
Resolution approving an Agreement with Golden State Fire Apparatus for the purchase of one BME 4x4 Freightliner Wildland Pumper for a total amount not to exceed $530,831 and authorizing the City Manager, or his designee, to execute the Agreement.
Resolution amending the Fiscal Year 2024-25 Annual Operating Budget to appropriate $530,831 in the MFD – Measure H – Facilities & Fleet Cost Center (18611) in General Fund – Measure H Fund (0160) for one BME 4X4 Freightliner Wildland Pumper and authorizing the City Manager to take the necessary steps to implement the required Budget Adjustments.
FIRE DEPARTMENT; Jerardo Avila, 209-572-9590, [email protected] Consent
16. Consider approving a First Amendment to the Legal Services Agreement with Oppenheimer Investigations Group LLP, Oakland, CA to conduct Citywide Administrative Investigations increasing the Agreement amount by $40,000 to a new total amount not to exceed $140,000. (Funding Source: Various Funds) Staff Recommendation:
Resolution approving the First Amendment to the Agreement with Oppenheimer Investigations Group LLP, Oakland, CA to complete ongoing important specific matters, increasing the Agreement amount by $40,000 to a new total amount not to exceed $140,000 and authorizing the City Manager, or his designee to execute the Amendment.
HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] Consent
17. Consider approving the Legal Services Agreements with Renne Public Law Group, San Francisco, CA; Oppenheimer Investigations Group LLP, Oakland, CA; and Liebert Cassidy Whitmore, Fresno, CA and Consultant Services Agreements with Municipal - 7 -
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Resource Group, LLC, Wilton, CA and DigiStream, Sacramento, CA to conduct Citywide Administrative Investigations on an as needed basis, in an amount not to exceed $100,000 each for two years. (Funding Source: Various Funds) Staff Recommendation:
Resolution approving the Legal Services Agreements with Renne Public Law Group, San Francisco, CA; Oppenheimer Investigations Group LLP, Oakland, CA; and Liebert Cassidy Whitmore, Fresno, CA and Consultant Services Agreements with Municipal Resource Group, LLC, Wilton, CA and DigiStream, Sacramento, CA to conduct Citywide Administrative Investigations on an as needed basis, in an amount not to exceed $100,000 each for two years and authorizing the City Manager or his designee to execute the Agreements.
HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] Consent
18. Consider approving the price increase of Purchase Order 216609 for Tracy Ford, Tracy, CA by $96,302 for six Ford Interceptor Patrol Sport Utility Vehicles for a revised total amount not to exceed $337,727. (Funding Source: Fleet Replacement Fund)
Staff Recommendation:
Resolution approving the increase of Purchase Order 216609 with Tracy Ford, Tracy, CA for six Ford Interceptor Patrol Sport Utility Vehicles by $96,302 from $241,425 for a revised total amount not to exceed $337,727, and authorizing the Purchasing Manager, or her designee, to execute the Purchase Order price increase.
PUBLIC WORKS; Patrick Crowley, 209-342-2274, [email protected] Consent
19. Consider approving the First Amendment with HF&H Consultants, LLC., Walnut Creek, CA, for the Solid Waste Haulers Audit and Performance Review increasing the Agreement amount by $99,855, to a revised total amount not to exceed $249,855 over the term of the original agreement. (Funding Source: Solid Waste Fund) Staff Recommendation:
Resolution approving the First Amendment for Consultant Services with HF&H Consultants, LLC., Walnut Creek, CA for the Solid Waste Haulers Audit and Performance Review increasing the Agreement amount by $99,855 to a new total amount not to exceed $249,855 over the term of the original agreement; and authorizing the City Manager, or his designee to execute the Amendment.
PUBLIC WORKS; Rosene Nguyen, 209-577-5453, [email protected]
COUNCIL COMMENTS & REPORTS
CITY MANAGER COMMENTS & REPORTS
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HEARINGS
Published in the Modesto Bee on July 24, 2024
20. Hearing to consider an Ordinance amending Planned Development Zone P-D(470) to change the allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road, (APN 081-052-045) (Funding Source:
Developer Funded)
Staff Recommendation:
Motion introducing and waiving the first reading of an Ordinance amending Planned Development Zone P-D(470) to change the allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road. (APN 081-052-045).
CED; Michael Hren, 209-577-5273, [email protected]
Published in the Modesto Bee on August 2, 2024.
21. Hearing to consider the Annual Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the Solid Waste Haulers, to become effective September 1, 2024; approving a Fuel Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the haulers to become effective September 1, 2024; approving the update to the Schedule of Cash Security Deposits and Fees for Self-Haul Residents and Businesses; and approving the final report and recommendations of HF&H Consultants, LLC. regarding City of Modesto 2023 Solid Waste Financial Review and Rate Analysis. (Funding Source: General Fund, Solid Waste Fund, Geer Road Landfill Fund, Carpenter Road Landfill Fund, Green Waste Fund, Compost Facility Improvements Fund, Streets Fund) Staff Recommendation:
Resolution approving the Annual Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the Solid Waste Haulers, for a decrease of $1.08 per month for residential services, an increase of $6.61 per cubic yard for commercial services, and an increase of $24.87 per pull for industrial services, to become effective September 1, 2024 and rescinding Resolution No. 2023-312 for the August 1, 2023 annual rate adjustment.
Resolution approving a Fuel Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the haulers, for a reduction of $0.11 per month for residential services, and a reduction of $0.13 per cubic yard for commercial services, to become effective September 1, 2024. Resolution approving the update to the Schedule of Cash Security Deposits and Fees for Self-Haul Residents and Businesses in accordance with Assembly Bill 939, and rescinding Resolution No. 2022-471.
Resolution approving the final report and recommendations of HF&H Consultants, LLC., Walnut Creek, CA regarding City of Modesto 2023 Solid Waste Financial Review and Rate Analysis, which provide staff next steps for rate methodology development and haulers’ franchise agreement review.
PUBLIC WORKS; Myriah Hill, 209-577-5495, [email protected] - 9 -
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NEW BUSINESS
22. Consider Reviewing, Providing Comment and Accepting the Proposed FY24-25 Internal Audit Work Plan. (Funding Source: Not Applicable) Staff Recommendation:
Motion accepting the FY24-25 Internal Audit Work Plan.
CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected]
23. Consider approving an Agreement for Concrete Services with United Pavement Maintenance, Hughson, CA and Westside Landscape & Concrete, Newman, CA for a total amount not to exceed $17,250,000 for five years. (Funding Source: Measure H, Water Fund and General Fund)
Staff Recommendation:
Resolution approving the Award of Bid and Agreements for Concrete Services to United Pavement Maintenance, Hughson, CA. and Westside Landscape & Concrete, Newman, CA for a two-year Agreement with three one-year extension options, for an annual estimated amount of $3,450,000 and a total amount not to exceed $17,250,000 over five years; and authorizing the Director of Finance to adjust agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total amount does not change and authorizing the City Manager or his designee to execute the Agreements.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected]
MATTERS TOO LATE FOR THE AGENDA
These may be presented by members of the City Council and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that (1) there is a need to take immediate action, and (2) that the need for action came to the City’s attention after the agenda was posted.
ADJOURNMENT
CLOSED SESSION
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, AUGUST 13, 2024 AT 3:30 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.
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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 — ANTICIPATED LITIGATION
One Case (Pursuant to Section 54956.9(d)(2) of the Government Code) CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
One Case (Pursuant to Section 54956.9(d)(4) of the Government Code)
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Pursuant to Section 54957 of the Government Code)
Title: City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
(Pursuant to Section 54956.8 of the Government Code)
Property: 601 Neece Dr., Modesto, CA 95351; APN: 102-012-001 and 102-012- 004
Property Owners: City of Modesto
Negotiating Parties:
For City: Joseph P. Lopez, City Manager
For Lessee: The Baseball Club of Modesto, LLC
Under Negotiation: Price and Terms of Lease
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 17, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Community and Economic Development
SUBJECT: Landmark Preservation Commission Resignation
CONTACT: Jessica Hill, Director of Community and Economic Development [email protected], 209-577-5267
DESCRIPTION:
Consider accepting the resignation of Michelle Buer from the Landmark Preservation Commission. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
This action supports the City’s Strategic Plan Initiative: “Build Community trust in City Government through Responsive, Transparent and Efficient Service Delivery. Goal I. Promote Trust and Engagement between the Community and the City”.
BACKGROUND:
The Modesto Landmark Preservation Commission (LPC) serves as an advisory group to the City Council on matters related to City designated landmarks. Seven (7) members are appointed by the City Council for a 4-year term, starting January 1st and ending December 31st.
Section 11021 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee.
DISCUSSION:
On December 14, 2021, by Resolution No 2021- 482, Michelle Buer was appointed to the Landmark Preservation Commission with a term expiration date of December 31, 2025. On July 15, 2024, Michelle Buer formally resigned from the Landmark Preservation Commission.
FISCAL IMPACT:
There is no fiscal impact related to this action.
COMMITTEE RECOMMENDATION:
This item did not go to committee.
1 https://library.municode.com/ca/modesto/codes/code_of_ordinances?nodeId=CHTR_ARTXIAPBOCO_S1102APTE #1..
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City Council. August 13, 2024
Landmark Preservation Commission Resignation
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution accepting the resignation of Michelle Buer from the City of Modesto Landmark Preservation Commission.
Approved by:
Jessica Hill, Director of Community &
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
#1..
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1 2024- 20
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XXX
RESOLUTION ACCEPTING THE RESIGNATION OF MICHELLE BUER
FROM THE CITY OF MODESTO LANDMARK PRESERVATION
COMMISSION
WHEREAS, the Landmark Preservation Commission was established to advise City Council on matters related to historic structures and other resources in addition to policies and practices pertaining to preservation of Modesto'slandmarks, and
WHEREAS, on December 14, 2021, by Resolution No. 2021-482, Michelle Buer was appointed to serve as a member of the Landmark Preservation Commission, and
WHEREAS, Michelle Buer hastendered her resignation from the Landmark Preservation Commission effective July 15, 2024.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby accepts the resignation of Michelle Buer from the City of Modesto Landmark Preservation Commission with regret.
#1..
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2 2024- 20
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August 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
(SEAL)
APPROVED AS TO FORM:
BY:
JOSE M. SANCHEZ, City Attorney
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 22, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jeremy Rogers, CPRE, Director of Parks, Recreation and Neighborhoods SUBJECT: Appointment of Angela Drew as the City of Modesto’s Poet Laureate CONTACT: Diane Sheatsley, Administrative Analyst II, [email protected], 209-577-5418
DESCRIPTION:
Consider appointing Angela Drew as the Poet Laureate of the City of Modesto for a two-year term retroactive to July 1, 2024 through June 30, 2026. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This item is consistent with the 2020-2025 Strategic Plan to build and promote a recognizable identity for the City of Modesto.
BACKGROUND:
On July 13, 1993, by Resolution 93-412, Council established a non-salaried honorary position of Poet Laureate of the City of Modesto for the purpose of presenting original poems at various City functions and occasions. Since that time, Jeannette Gould Maino (1994-1995), Arlene Silva Mattos (1996-2000), Debee Loyd (2000-2004), Sam Pierstorff (2004-2008), Ed Bearden (2008-2012), Gillian Wegener (2012-2016), Stella Beratlis (2016-2020) and Sal Salerno (2020- 2024) have been appointed and served as Poet Laureate.
City Council Policy No. 6.020 dictates the procedure by which the Culture Commission follows when announcing Poet Laureate vacancies, soliciting nominations and applications, reviewing and screening nominations, and selecting two for further consideration by the Culture Commission. The Culture Commission is responsible for making the final recommendation to the City Council for formal appointment to the position. All nominees should have reputations within the community as creators and lovers of poetry; comfortable speaking in public and be published authors.
While acting in a formal capacity as Poet Laureate, poems created during their appointment are preserved in a book by the Poet’s Corner Committee as part of their Poets’ Bookshelf collection at the McHenry Museum. The Poet Laureate is expected to be an ambassador for the literary arts to the community. Throughout their term, they are commissioned to present poems written #2..
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City Council, August 13, 2024
Appointment of Angela Drew as the City of Modesto’s Poet Laureate
for a number of special occasions including the installation of new City Councilmembers or Mayor, Sister City receptions, dedications of new city buildings, openings of various cultural events, and other civic and community functions directly involving City government, as invited.
DISCUSSION:
At least three months prior to the ending of a term, the Culture Commission is charged with announcing the vacancy and declaring it open for nominations. On December 6, 2023, the Commission approved soliciting applications through March 1. 2024for the next Poet Laureate.
Prior to the March deadline, the application deadline was extended to May 1, 2024 to allow more time for others to apply. Notification of the vacancy and application process was posted on the City’s website with a link to the online application. The vacancy was also promoted via the Parks, Recreation & Neighborhoods’ social media pages, the Poets’ Corner Committee, the outgoing Poet Laureate, and the Commission itself.
The Culture Commission received three Poet Laureate nominations (applications) between January 1st and May 1st . Sub-Committee members conducted online interviews with each applicant through the month of June and presented their recommendations to the Culture Commission on July 3, 2024. It should be noted that all the nominees presented outstanding applications. The Culture Commission unanimously voted to recommend Ms. Angela Drew for consideration as the next Poet Laureate of the City of Modesto for the two-year term, retroactive to July 1, 2024 through June 30, 2026). Ms. Drew’s application includes four works: “Be the Dream”, “BWE: The Black Woman Experience”, and “Negritude del la Renaissance”.
Angela Drew is a mother, dancer, author, poet and self-proclaimed linguistic artist who has loved the rhythm of words for as long as she can remember. Born in Berkeley, CA, she began writing at age eight and has always understood that words have the power to soothe, stir, or solidify connection. She has played with the magic of storytelling ever since. Angela is a graduate of Holy Names College in Oakland, CA. Today Angela calls Modesto home.
Angela is the winner and first-place slam champion of Modesto’s 2021 ILL List 16 Poetry Slam.
She has performed her spoken word poetry at an array of venues including Yoshi’s Jazz Club, Oakland, CA, Gallo Center for the Arts and The State Theatre, Modesto, CA, Brickhouse Art Gallery, Sacramento, CA, and Apache Cafe, Atlanta, GA – a landmark poetry lounge that is home to some of ATL’s finest creatives. She is the author of “ElderBerry Wine”, a children’s book written in poetic verse, that celebrates the beauty and majesty of our elders and the richness they bring by simply being a part of our lives. Angela shares her poetic journey on all social media platforms and her book is available on Amazon, Barnes & Noble, and other bookseller outlets.
FISCAL IMPACT:
There is no fiscal impact.
COMMITTEE RECOMMENDATION:
This agenda item was recommended by the Modesto Culture Commission on July 3, 2024, which unanimously approved it be forwarded to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution appointing Angela Drew as the Poet Laureate of the City of Modesto for a two-year #2..
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City Council, August 13, 2024
Appointment of Angela Drew as the City of Modesto’s Poet Laureate
term retroactive to July 1, 2024 through June 30, 2026.
Approved by:
Jeremy Rogers, CPRE
Parks, Recreation & Neighborhoods Department
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-?
RESOLUTION APPOINTING ANGELA DREW AS THE POET LAUREATE OF
THE CITY OF MODESTO FOR A TWO-YEAR TERM RETROACTIVE TO
JULY 1, 2024 THROUGH JUNE 30, 2026
WHEREAS, on July 13, 1993, by Resolution 93-412, the City Council established a non-salaried honorary position of Poet Laureate of the City of Modesto, and WHEREAS, the purpose of a Poet Laureate is to present original poems at various City functions and occasions, and
WHEREAS, in compliance with City Council Policy No. 6.020, the Culture Commission completed the Poet Laureate application and review process, and WHEREAS, on July 3, 2024, the Culture Commission unanimously voted to recommend Angela Drew for consideration as the next Poet Laureate of the City of Modesto, and
WHEREAS, the Culture Commission recommends the appointment of Angela Drew as the next Poet Laureate of the City of Modesto for a two-year term retroactive to July 1, 2024 through December 31, 2026, and
WHEREAS, Angela Drew is qualified and willing to serve as Poet Laureate.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the appointment of Angela Drew as the Poet Laureate of the City of Modesto for a two-year term retroactive to July 1, 2024 through December 31, 2026. #2..
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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
APPROVED AS TO FORM:
BY: ___________________________
JOSE M. SANCHEZ, City Attorney
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MODESTO CITY COUNCIL
www.modestogov.com
MINUTES
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, July 09, 2024 at 5:30 PM
Roll Call – Present: Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
Absent: None
Pledge of Allegiance to the Flag
Invocation: Mark Hammond, Celebration Center
City Clerk’s Announcements
Declaration of Conflicts of Interest: Item 16 – Councilmember Bavaro recused due to a conflict.
Reports from Closed Session: City Attorney Sanchez reported there was No Reportable Action on the Closed Session item.
ACKNOWLEDGEMENTS AND PRESENTATIONS
1. Proclamation declaring July as National Parks and Recreation Month. (Funding Source: Not Applicable)
CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]
ACTION: Mayor Zwahlen presented a proclamation declaring July as National Parks and Recreation Month.
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2. Proclamation declaring July as Plastic Free July. (Funding Source: Not Applicable) CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]
ACTION: Mayor Zwahlen presented a proclamation declaring July as Plastic Free July.
3. Proclamation declaring August 4-10, 2024 as National Health Center Week. (Funding Source: Not Applicable)
CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]
ACTION: Mayor Zwahlen presented a proclamation declaring August 4-10, 2024 as National Health Center Week.
4. Proclamation declaring August 6th as National Night Out. (Funding Source: Not Applicable)
CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]
ACTION: Mayor Zwahlen presented a proclamation declaring August 6th as National Night Out.
MISCELLANEOUS
5. Consider accepting the resignation of David Seymour from the Landmark Preservation Commission (Funding Source: Not Applicable)
Staff Recommendation:
Resolution accepting the resignation of David Seymour from the City of Modesto Landmark Preservation Commission
CED; Jessica Hill, 209-577-5267, [email protected]
ACTION: (Alvarez/Wright; 7/0) Resolution 2024-247 accepting the resignation of David Seymour from the City of Modesto Landmark Preservation Commission
6. Consider appointing David Barber, Margie Johnson, and Gloria Edith Verdin to the City of Modesto Citizen’s Housing and Community Development Committee with terms expiring December 31, 2027 (Funding Source: Not Applicable) Staff Recommendation:
Resolution appointing David Barber, Margie Johnson and Gloria Edith Verdin to the City of Modesto Citizens’ Housing and Community Development Committee with terms expiring December 31, 2027.
CED; Jessica Hill, 209-577-5321, [email protected]
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ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-248 appointing David Barber, Margie Johnson and Gloria Edith Verdin to the City of Modesto Citizens’ Housing and Community Development Committee with terms expiring December 31, 2027.
7. Consider appointing Joan Clendenin to the City of Modesto Landmark Preservation Commission with term expiring December 31, 2027 (Funding Source: Not Applicable) Staff Recommendation:
Resolution appointing Joan Clendenin to the City of Modesto Landmark Preservation Commission with a term expiring December 31, 2027 CED; Jessica Hill, 209-577-5267, [email protected]
ACTION: (Ricci/Alvarez; 7/0) Resolution 2024-249 appointing Joan Clendenin to the City of Modesto Landmark Preservation Commission with a term expiring December 31, 2027
8. Consider approving the appointments of Evan Yoshino as a Member-At-Large for a four-year term from January 1, 2024, to December 31, 2027 and Martin Montez as a Youth Member-At-Large for a one-year term from July 1, 2024 to June 30, 2025, on the City of Modesto Golf Courses Advisory Committee. (Funding Source: Not Applicable)
Staff Recommendation:
Resolution approving the appointments of Evan Yoshino as a Member-AtLarge for a four-year term from January 1, 2024, to December 31, 2027 and Martin Montez as a Youth Member-At-Large for a one-year term from July 1, 2024 to June 30, 2025, on the City of Modesto Golf Courses Advisory Committee.
PRN; Jessica Franco, 209-577-5278, [email protected] ACTION: (Escutia-Braaton/Wright; 7/0) Resolution 2024-250 approving the appointments of Evan Yoshino as a Member-At-Large for a four-year term from January 1, 2024, to December 31, 2027 and Martin Montez as a Youth Member-AtLarge for a one-year term from July 1, 2024 to June 30, 2025, on the City of Modesto Golf Courses Advisory Committee.
PUBLIC COMMENT IN PERSON
Jerry, Betty, and Tina highlighted the upcoming one-year anniversary of lifting the cruising ban in their community. They acknowledged ongoing community efforts and thanked various individuals and groups, including the Graffiti Museum and local car clubs. They expressed confusion over their exclusion from recognition in a museum exhibit but remained appreciative and committed to supporting the community moving forward.
John Frailing addressed the Mayor and Councilmembers about a recent Supreme Court decision allowing communities to manage homelessness independently. He criticized #3..
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Modesto's current laws for potentially burdening law enforcement and the judicial system and advocated for proactive solutions like safe sleeping areas. John urged collaboration with local leaders to revise ordinances, aiming to support homeless citizens without criminalizing them, and enhance community welfare.
Patrick Worley emphasized low police accountability and numerous complaints of misconduct and discrimination, suggesting these issues are costly for the city. Patrick also referenced a specific case of Paul Chavez's killing and his widow's subsequent death, urging action and accountability from City officials.
Teresa Clutter addressed the Council regarding her son Paul Chavez's death at the hands of police officers. She criticized the lack of accountability and justice in the case. Teresa urged the Council to take action to ensure accountability and prevent similar incidents in the future.
Diane Kroeze addressed the Mayor and City Council regarding homelessness, citing extreme weather conditions and lack of effective support. She expressed concern about current policies and the Supreme Court's impact, lamenting the disregard for those suffering both outdoors and indoors. Diane concluded by urging the Council to take meaningful action and recognize the reality of homelessness. Manuela addressed the Council, raising concerns about the Modesto Police Department's conduct and accountability. She cited the case of Paul Chavez Jr.'s death and questioned the Council's lack of action on police reform and community support. Manuela criticized spending on police vehicles instead of addressing homelessness and community needs.
She called for repurposing vacant buildings for the unhoused and improving community resources like libraries. Manuela urged the Council to prioritize community welfare and take concrete steps to address systemic issues within the Police Department. Sebastian Jones addressed the Council, expressing dissatisfaction with being removed from the Board of Building Appeals after serving for many years. Sebastian emphasized his commitment to community service and his longstanding involvement on various boards. He urged the Council to address his grievances and ensure fair treatment. Sarah Johnson addressed the Council, acknowledging the heartfelt speech of the mother who lost her son. She commented on Sebastian's concerns about being removed from a board, noting his disappointment as a member of the public. Sarah expressed hesitation about seeking a board position herself due to her observations of the Council's treatment of citizens. She urged the Council to improve their approach to governance and concluded her remarks on a hopeful note for positive change. Kim Millentree addressed the Council, advocating on behalf of her brother, Sebastian Jones. She emphasized Sebastian's dedication and described him as a hardworking individual from a strong family background. Kim, as a pastor's wife and counselor, expressed concern over the council's handling of Sebastian's dismissal and urged them to provide transparency to the community.
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Juan Chavez addressed the City Council regarding organizing efforts at Kingspan in Modesto. He described starting to meet with SMART organizers to address unsafe working conditions, leading management to conduct anti-union meetings and offer wage increases to discourage union formation. Recently, Juan was terminated after nearly 25 years without a proper investigation, which he believes was intended to intimidate others.
He emphasized the need for a union to ensure worker rights and respect at Kingspan.
Juan thanked the Council and expressed readiness to meet further. Julian Posadas introduced himself to the City Council as an organizer with SMART, representing workers at Kingspan in Modesto. He discussed the challenges of organizing due to company retaliation and intimidation tactics. Julian highlighted unsafe working conditions and unfair labor practices, including the recent unjust termination of Juan Chavez. He emphasized workers' rights to organize under the National Labor Relations Act and requested the Council's support. Julian acknowledged supportive organizations and mentioned Assemblymember Liz Ortega's commitment to the cause. He concluded by seeking further engagement from the Council.
Will Kelly, representing the North High Labor Federation, expressed solidarity with Kingspan workers who are organizing for union representation. Will emphasized that workers have the right to organize without needing to justify their decision. He criticized Kingspan for using intimidation, misinformation, and retaliation tactics against workers, citing the unjust termination of Juan Chavez. Will underscored the importance of community leaders understanding and supporting workers' rights and encouraged City Council members to meet with the workers to discuss their concerns. Steve expressed concerns about inconsistencies in the City Council's actions, noting instances of behavior he finds inappropriate. He also expressed unease over instances of intimidation and concerns about the fairness and accountability in Council proceedings. Norma Hernandez expressed concerns about delays in addressing complaints filed against law enforcement related to an incident at Palladium Night Club. She called for justice for her son and criticized ongoing delays in resolving the situation. She requested financial support for legal representation and interpreting services. Norma emphasized the need for accountability and additional time to address her grievances. Kevin McClarty questioned the City Council's ability to respond to citizen comments under the Brown Act, seeking clarification on which specific clauses prohibit interaction.
He expressed a lack of transparency and urged for a way to provide timely responses to community concerns, suggesting that this absence contributes to public frustration. Loretta expressed support for the police in response to criticism during the meeting. She emphasized the importance of police in the community and criticized those who disparage law enforcement.
A member of the public expressed support for community members seeking justice for families affected by police actions. The speaker noted a disconnect between public #3..
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concerns and the council's demeanor. They critiqued the city's positive portrayal of police events without addressing community criticisms publicly.
CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS: 1-15, 17-24 (Wright/Escutia-Braaton; 7/0)
CONSENT
Consent
9. Consider approving the minutes for the June 25, 2024 Council Meeting. (Funding Source: Not Applicable)
Motion approving the minutes for the June 25, 2024 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Motion approving the minutes for the June 25, 2024 Council Meeting.
Consent
10. Consider accepting the 2024 Citywide Internal Controls Review Report. (Funding Source: Not Applicable)
Motion accepting the Internal Controls Review Report
CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Motion accepting the Internal Controls Review Report
Consent
11. Consider approving the purchase of a Public Safety Computer Aided Dispatch (CAD) system and associated public safety mobile and workstation licenses from Central Square Technologies for a total amount not to exceed $2,977,904. (Funding Source:
Measure H, Grant Funding)
Resolution approving the competitive bidding process from the City of Glendale with Central Square Technologies, Lake Mary, FL for the purchase of a Public Safety Computer Aided Dispatch (CAD) system and associated components with Central Square Technologies for a total amount not to exceed $2,977,904; authorizing the City Manager or his designee to negotiate and enter into an agreement with Central Square Technologies; to carry out any necessary budget adjustments to implement the approved funding for the purchase and negotiate and enter into agreements with the County of Stanislaus, Stanislaus Regional 9-1-1 (SR911) and those agencies dispatched by SR911, allowing the agencies to use the CAD system at their cost.
CITY MANAGER; Scotty Douglass, 209-577-9149, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-251 approving the competitive bidding process from the City of Glendale with Central Square Technologies, Lake Mary, FL for the purchase of a Public Safety Computer Aided #3..
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Dispatch (CAD) system and associated components with Central Square Technologies for a total amount not to exceed $2,977,904; authorizing the City Manager or his designee to negotiate and enter into an agreement with Central Square Technologies; to carry out any necessary budget adjustments to implement the approved funding for the purchase and negotiate and enter into agreements with the County of Stanislaus, Stanislaus Regional 9-1-1 (SR911) and those agencies dispatched by SR911, allowing the agencies to use the CAD system at their cost.
Consent
12. Consider approving the recommended Budget Adjustments to Fiscal Year 2023-24 Annual Operating and Capital Improvement Program Budgets. (Funding Source:
Various Funds)
Resolution amending Fiscal Year 2023-24 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager to take the necessary steps to implement the provisions of this Resolution.
BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-252 amending Fiscal Year 2023-24 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager to take the necessary steps to implement the provisions of this Resolution.
Consent
13. Consider approving a First Amendment to the Memorandum of Understanding (MOU) with the Stanislaus Council of Governments (StanCOG) for Regional Early Action Planning Grant Program Funds. (Funding Source: Regional Early Action Planning (REAP) Grant Funds)
Resolution approving a First Amendment to the Memorandum of Understanding with the Stanislaus Council of Governments for a suballocation of Regional Early Action Planning Grant Program Funds; and authorizing the City Manager, or his designee to sign the First Amendment to the Memorandum of Understanding.
Resolution amending Fiscal Year 2024-25 Multi-Year project budget for project 100838 – Modesto General Plan Update in the amount of $219,654.13 to recognize the additional allocation under the Regional Early Action Planning (REAP) Grant, and fund certain housing-related work associated with the comprehensive General Plan update; and authorizing the City Manager, or his designee, to implement the provisions of this resolution.
CED; Sean Rando, 209-577-5473, [email protected]
ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-253 approving a First Amendment to the Memorandum of Understanding with the Stanislaus Council of Governments for a suballocation of Regional Early Action Planning Grant Program Funds; and authorizing the City Manager, or his designee to sign the First Amendment to the Memorandum of Understanding.
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ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-254 amending Fiscal Year 2024-25 Multi-Year project budget for project 100838 – Modesto General Plan Update in the amount of $219,654.13 to recognize the additional allocation under the Regional Early Action Planning (REAP) Grant, and fund certain housing-related work associated with the comprehensive General Plan update; and authorizing the City Manager, or his designee, to implement the provisions of this resolution.
Consent
14. Consider a one-year extension of the Transient Occupancy Tax Funding Agreement and the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto for Tourism Marketing Services. (Funding Source: General Fund) Resolution approving a one-year extension of the Transient Occupancy Tax Funding Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.
Resolution approving a one-year extension of the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.
CED; Trevin Barber, 209-860-1251, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-255 approving a oneyear extension of the Transient Occupancy Tax Funding Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.
ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-256 approving a oneyear extension of the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.
Consent
15. Consider accepting the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA., and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Water Fund)
Resolution accepting the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA., and authorizing the City Clerk to file a Notice of Completion.
ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-257 accepting the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA., and authorizing the City Clerk to file a Notice of Completion. #3..
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Councilmember Bavaro recused due to conflict.
Consent
16. Consider approving Agreements with Burton Fire, Modesto, CA for the purchase of Fire Fleet Parts and Services for a total amount not to exceed $625,000 over five years. (Funding Source: General Fund and Outside Fire Contract Agencies) Resolution approving the Agreements with Burton Fire, Modesto, CA for the purchase of Fire Fleet Parts and Services for a two-year Agreement with three one-year extension options, for an annual estimated amount of $125,000 and a total amount not to exceed $625,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Ricci; 6/0; Bavaro Recused) Resolution 2024-258 approving the Agreements with Burton Fire, Modesto, CA for the purchase of Fire Fleet Parts and Services for a two-year Agreement with three one-year extension options, for an annual estimated amount of $125,000 and a total amount not to exceed $625,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
Consent
17. Consider approving the purchase of various Fleet Replacements for Public Safety Fleet Vehicles which include twenty-two Ford Interceptors and five Chevrolet Tahoes in an amount not to exceed $1,980,238. (Funding Source: Fleet Replacement Fund) Resolution approving the Competitive Bidding Process from the State of California, Department of General Services to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two Ford Police Interceptors for an amount not to exceed $1,374,633; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
Resolution approving the Competitive Bidding Process from the State of California, Department of General Services to Winner Chevrolet, Elk Grove, CA for the purchase of five Chevrolet Tahoes for an amount not to exceed $347,311 and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-259 approving the Competitive Bidding Process from the State of California, Department of General Services to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two Ford Police Interceptors for an amount not to exceed $1,374,633; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
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ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-260 approving the Competitive Bidding Process from the State of California, Department of General Services to Winner Chevrolet, Elk Grove, CA for the purchase of five Chevrolet Tahoes for an amount not to exceed $347,311 and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
Consent
18. Consider approving the Purchasing Agreements for the purchase of Equipment and Vehicle Parts and Services with Terex Services, Stockton, CA and Golden State Emergency Vehicle Services, Sacramento, CA for a total amount not to exceed $1,250,000 over five years. (Funding Source: Fleet Fund, Outside Service Agreements) Resolution approving the Purchasing Agreements for purchase of Equipment and Vehicle Parts and Services with Terex Services, Stockton, CA and Golden State Emergency Vehicle Services, Sacramento, CA for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $250,000 and a total amount not to exceed $1,250,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-261 approving the Purchasing Agreements for purchase of Equipment and Vehicle Parts and Services with Terex Services, Stockton, CA and Golden State Emergency Vehicle Services, Sacramento, CA for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $250,000 and a total amount not to exceed $1,250,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
Consent
19. Consider approving the Purchasing Agreements for the purchase of Equipment and Vehicle Parts and Services with CenCal Auto and Truck Parts, Modesto, CA and Rush Truck Center, Ceres, CA for a total amount not to exceed $1,000,000 over five years. (Funding Source: Fleet Fund, Outside Service Agreements) Resolution approving the Purchasing Agreements utilizing the Competitive Bidding Process from Sourcewell and OMNIA Partners for the purchase of Equipment and Vehicle Parts and Services with CenCal Auto and Truck Parts, Modesto, CA and Rush Truck Center, Ceres, CA for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $200,000 and a total amount not to exceed $1,000,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] #3..
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ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-262 approving the Purchasing Agreements utilizing the Competitive Bidding Process from Sourcewell and OMNIA Partners for the purchase of Equipment and Vehicle Parts and Services with CenCal Auto and Truck Parts, Modesto, CA and Rush Truck Center, Ceres, CA for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $200,000 and a total amount not to exceed $1,000,000 over five years; and authorizing the City Manager or his designee to execute the Agreements.
Consent
20. Consider approving the City of Modesto Pandemic Recovery Strategy – Modesto Forward Grant Agreements with Del Rio CC Foundation (First Tee – Central Valley) and the Boys and Girls Clubs of Stanislaus County, for $250,000 each and a total amount not to exceed $500,000 in American Rescue Plan Act Funding. (Funding Source: American Rescue Plan Act Funds)
Resolution approving the City of Modesto Pandemic Recovery Strategy – Modesto Forward Grant Agreement with Del Rio CC Foundation (First Tee – Central Valley), in an amount not to exceed $250,000 in American Rescue Plan Act Funding, and authorizing the City Manager, or designee, to execute the Agreement.
Resolution approving the City of Modesto Pandemic Recovery Strategy – Modesto Forward Grant Agreement between the City of Modesto and the Boys and Girls Clubs of Stanislaus County, in an amount not to exceed $250,000 in American Rescue Plan Act Funding, and authorizing the City Manager, or designee, to execute the Agreement.
Resolution amending the Fiscal Year 2023-24 Non-Capital Project Budget to fund Project #101345 (American Rescue Plan Act Project) in an amount not to exceed $500,000 in transfers, revenue, and to budget expenditures to fund the Project, and authorizing the City Manager, or his designee, to implement the provisions of this Resolution.
PRN; Diane Sheatsley, 209-577-5418, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-263 approving the City of Modesto Pandemic Recovery Strategy – Modesto Forward Grant Agreement with Del Rio CC Foundation (First Tee – Central Valley), in an amount not to exceed $250,000 in American Rescue Plan Act Funding, and authorizing the City Manager, or designee, to execute the Agreement.
ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-264 approving the City of Modesto Pandemic Recovery Strategy – Modesto Forward Grant Agreement between the City of Modesto and the Boys and Girls Clubs of Stanislaus County, in an amount not to exceed $250,000 in American Rescue Plan Act Funding, and authorizing the City Manager, or designee, to execute the Agreement.
ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-265 amending the Fiscal Year 2023-24 Non-Capital Project Budget to fund Project #101345 (American Rescue #3..
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Plan Act Project) in an amount not to exceed $500,000 in transfers, revenue, and to budget expenditures to fund the Project, and authorizing the City Manager, or his designee, to implement the provisions of this Resolution.
Consent
21. Consider approving the Culture Commission’s request to move forward in issuing its Request for Proposals calling for artists and muralists for Modesto’s 150th Anniversary Mural Project. (Funding Source: General Fund)
Resolution approving the Culture Commission’s request to move forward in issuing a Request for Proposals calling for artists and muralists for Modesto’s 150th Anniversary Mural Project.
PRN; Diane Sheatsley, 209-577-5418, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-266 approving the Culture Commission’s request to move forward in issuing a Request for Proposals calling for artists and muralists for Modesto’s 150th Anniversary Mural Project.
Consent
22. Consider approving a list of projects to be funded with Road Repair and Accountability Act tax proceeds for Fiscal Year 2024-2025. (Funding Source: Senate Bill 1 Funds) Resolution approving the list of projects to be funded with Road Repair and Accountability Act tax proceeds in Fiscal Year 2024-2025 in an amount up to $5,888,194, and authorizing the City Manager, or his designee, to approve the projects.
PUBLIC WORKS; John Sphar, 209-342-2235, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-267 approving the list of projects to be funded with Road Repair and Accountability Act tax proceeds in Fiscal Year 2024-2025 in an amount up to $5,888,194, and authorizing the City Manager, or his designee, to approve the projects.
Consent
23. Consider approving the Second Amendment with Champion Industrial Contractors Inc.
Modesto, CA for On-Call Plumbing Services increasing the Agreement amount by $120,000 for a new total amount of $552,370, within the term of the Agreement. (Funding Source: General Fund, Utility Funds, Centre Plaza, Golf Fund and Building Maintenance Fund)
Resolution approving the Second Amendment with Champion Industrial Contractors Inc. Modesto, CA for On-Call Plumbing Services and increase the Agreement amount by $120,000 within the term of the Agreement for a new total amount of $552,370, and authorizing the City Manager, or his designee, to execute the Amendment.
PUBLIC WORKS; Gabe DaSilva, 209-577-5319, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-268 approving the Second Amendment with Champion Industrial Contractors Inc. Modesto, CA for On- #3..
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Call Plumbing Services and increase the Agreement amount by $120,000 within the term of the Agreement for a new total amount of $552,370, and authorizing the City Manager, or his designee, to execute the Amendment.
Consent
24. Consider approving an Agreement with East Bay Municipal Utility District (EBMUD), Oakland, CA for the disposal of non-hazardous brine waste for a total amount not to exceed $352,450 over three years. (Funding Source: Water Fund) Resolution approving an Agreement with East Bay Municipal Utility District (EBMUD), Oakland, CA for the disposal of non-hazardous brine waste for a total amount not to exceed $352,450 over three years; and authorizing the City Manager, or his designee, to execute the Agreement.
UTILITIES; Manuel Martinez, 209-342-4599, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-269 approving an Agreement with East Bay Municipal Utility District (EBMUD), Oakland, CA for the disposal of non-hazardous brine waste for a total amount not to exceed $352,450 over three years; and authorizing the City Manager, or his designee, to execute the Agreement.
Recessed: 7:18 p.m.
Reconvened: 7:25 p.m.
COUNCIL COMMENTS & REPORTS
Councilmember Bavaro expressed gratitude to the Mayor and explained the Council's policy of not responding to public comments directly due to advice from the City Attorney. He praised Councilmember Williams as a close friend and defended his integrity against recent criticisms.
Bavaro also voiced strong support for the Modesto Police Department, citing their national and state recognition under Chief Gillespie's leadership. He highlighted their achievements, including pioneering a Police Review Board and certification for autistic individuals, and emphasized the department's professionalism and commitment to community safety. He addressed concerns raised by community members about communication among the Council and Mayor. He noted that several Councilmembers are active on Facebook, sharing their views on improving Modesto.
He praised the new community Public Relations Director, Sonya, for significantly enhancing communication within the community. He mentioned his own method of communication through neighborhood meetings in his district.
Councilmember Escutia-Braaton commended Councilmember Bavaro's remarks and expressed agreement with them. She reflected on the recent Fourth of July celebrations, noting the community's enthusiastic participation in events like the parade. She thanked Councilmember Williams for his leadership in organizing various community activities, including the Fourth of July Parade and the Stanislaus County Fair. She highlighted innovative celebrations like drone shows and emphasized the positive environmental impact of using drones instead of traditional fireworks, noting the reduction in air pollution and waste. She expressed gratitude for #3..
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7/9/2024 5:30:00 PM
participating in these events and celebrated their success in promoting community engagement while preserving air quality and resources in the Central Valley.
Councilmember Ricci echoed Councilmember Bavaro's support and addressed perceived misconceptions about the Modesto Police Department and City Council. He highlighted significant reforms over the past four years, including the establishment of a Civilian Police Review Board, an independent Police Auditor, and successful community programs like the CHAT team. He emphasized the City's commitment to continuous improvement and acknowledged achievements such as the Park Rangers' Community Connection program and autism certification efforts. He expressed excitement for the upcoming National Night Out and congratulated the Modesto Police Department on recent successes. He also underscored the importance of tourism for Modesto's economy, citing cultural attractions and positive media coverage.
Councilmember Wright began by thanking students from his district for attending the City Council meeting. He expressed concern over the majority of public comment participants leaving before hearing Council responses. He praised Councilmembers Ricci and Bavaro for their comments and supported their views. He discussed the new Go Modesto app, highlighting its utility in addressing constituent concerns. He commented on the Fourth of July festivities, appreciating the presence of Modesto Air1 monitoring fireworks. He also enjoyed the Fourth of July Parade and noted the community's enthusiastic participation despite the heat.
Councilmember Williams expressed gratitude to his colleagues, especially Councilmember Bavaro, highlighting their friendship and camaraderie within the Council. He discussed the successful Fourth of July Parade, noting its early start to ensure safety and a cooler environment for attendees. He emphasized the recognition of community contributors such as the Modesto Garden Club and hometown hero Jeffrey and Margaret Reed, underscoring their impact on Modesto. He praised Darren Morris for his dedication to local youth through music initiatives and acknowledged the community support during the Stanislaus County Fair, despite record heat.
He commended the Modesto Police Department's presence and performance, anticipating their success in upcoming events. He encouraged attendance at the fair's discounted times and emphasized the Council's commitment to listening to and caring for every resident, despite legal constraints on some topics. He affirmed his and the Council's dedication to the well-being of Modesto's citizens.
Vice Mayor Alvarez expressed gratitude to the Modesto Police Department, led by Chief Brandon Gillespie, for their efforts in enhancing safety in the city. He cited statistics from 2023 showing significant reductions in homicides, auto theft, property crime, and violent crime, highlighting the department's effective strategies. He also praised the Fourth of July drone show organized by SMBU and El Rematito, noting the vibrant community turnout and diverse cultural atmosphere. He addressed public comments regarding committee application processes. He clarified the Council's policy on responding to public comments during appropriate times. He reaffirmed the Council's commitment to governance and its limitations regarding ongoing legal matters.
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7/9/2024 5:30:00 PM
Mayor Zwahlen expressed pride in serving as Mayor of the city where she was born, raised her children, and now has grandchildren. She emphasized her dedication to meeting with residents personally to discuss any topic of concern. She noted significant events such as MoBand's George Gardner retiring after 60 years, and the successful Fourth of July Parade which drew enthusiastic crowds. She also mentioned the importance of transparency through initiatives like the Audit Committee, which reviews detailed information crucial for city improvements. She thanked the attendees, particularly the youth, for their support and reaffirmed her commitment to serving the community with honor.
CITY MANAGER COMMENTS & REPORTS
City Manager Lopez briefly thanked a member of City staff for handling a challenging situation with grace and professionalism.
HEARINGS
Published in the Modesto Bee on June 17, 2024 & June 24, 2024.
25. Hearing to consider approving the adoption of the Revised 2022 Modesto Sub-basin Groundwater Sustainability Plan and authorize the Stanislaus and Tuolumne Rivers Groundwater Basin Association Groundwater Sustainability Agency to submit the Revised 2022 Modesto Sub-basin Groundwater Sustainability Plan to the California Department of Water Resources. (Funding Source: Water Fund) Resolution adopting a revised Groundwater Sustainability Plan and documenting the commitment to develop and implement a Well Mitigation Program and Management Actions in the Modesto Groundwater Subbasin.
UTILITIES; Timothy Barahona, 209-577-5485, [email protected] ACTION: (Escutia-Braaton/Williams; 7/0) Resolution 2024-270 adopting a revised Groundwater Sustainability Plan and documenting the commitment to develop and implement a Well Mitigation Program and Management Actions in the Modesto Groundwater Subbasin.
MATTERS TOO LATE FOR THE AGENDA
None.
ADJOURNMENT
This meeting adjourned at 8:02 p.m.
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7/9/2024 5:30:00 PM
CLOSED SESSION
All Closed Session matters heard prior to the meeting.
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: Magda Abraham v. City of Modesto, et al.
Superior Court of California, County of Stanislaus
Case No.: CV-18-003342
Attest:____________________________
Diane Nayares-Perez, City Clerk
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: June 12, 2024
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
SUBJECT: Updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a) CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284, [email protected] DESCRIPTION:
Consider approving the updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a). (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
This item is related to the 2020-2025 Strategic Plan goal of promoting trust and engagement.
BACKGROUND:
On March 23, 2022, the Fairview Village No. 2 annexation was approved by the Stanislaus County Local Agency Formation Commission (“LAFCO”). This annexed property is located at the corner of Carpenter Road and Whitmore Avenue and added approximately 178 acres and 28 residents to the City of Modesto.
Like many cities throughout California, Modesto utilizes a district-based system of electing Council Members. After each decennial U.S. census, cities with district-based systems must “redistrict” to adjust the boundaries of the Council Members’ districts using the new census data.
What this means is that every ten years, Council Member Districts must be examined and potentially redrawn so that each district is substantially equal in population. Redistricting determines which neighborhoods and communities are grouped together into a district for the purpose of electing a Council Member.
In September 2021, following the completion of the 2020 U.S. Census, the City of Modesto began the redistricting process. Under Section 501(b)(2) of the City Charter (“Charter”), the City Council was required to appoint a Citizens’ Districting Commission (“Commission”) tasked with the function of recommending to the Council the districts from which Council Members shall be elected. Charter Section 501(b)(3) required the City Council to appoint a Commission consisting of nine qualified electors residing within the City, reflecting the demographic and #4..
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City Council, August 13, 2024
Updated Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a)
geographic diversity of the City. On September 28, 2021, by Resolution No. 2021-389, the Council appointed nine members to the Commission.
The Commission complied with the Charter, the FAIR MAPS Act1, and all legal requirements for public hearings and community outreach, including taking the steps necessary to encourage residents, including those in underrepresented communities and non-English speaking communities, to participate in the redistricting public review process. On March 8, 2022, by Resolution No. 2022-140, Council approved the Final Council District Maps recommended by the Citizens’ Districting Commission.
The Fairview Village No. 2 annexation took place after the City completed its redistricting. The City is required to adjust its approved Council District Map to include the newly annexed property.
DISCUSSION:
Pursuant to the California Election Code Section 21625(a)2, after redistricting, a city council shall not adopt new council district boundaries until after the next federal decennial census, except under the following circumstances:
1. A court orders the council to redistrict.
2. The council is settling a legal claim that its boundaries violate the U.S. Constitution, the federal Voting Rights Act of 1965, or the Elections Code.
3. The boundaries of the city change by the addition of territory due to annexation or by subtraction of territory.
4. The number of council members by districts is increased or decreased; or
5. An independent redistricting commission is established to adopt new council districts between federal decennial census.
The Fairview Village No. 2 annexation added approximately 178 acres and 28 residents to the City of Modesto, located at the corner of Carpenter Road and Whitmore Avenue. Since the annexation took place after the City completed its redistricting process, Section 21623(a) of the California Election Code allows the City Council to add the new territory to the nearest existing Council district without changing the boundaries of other Council districts.
As part of adding this new territory to District 2, City staff engaged the demographer who assisted with the redistricting process in 2022 to confirm that this annexation did not impact the City’s 2022 redistricting efforts. According to the analysis by the demographer, the annexed area increases the Latino Citizen Voting Age Population (“CVAP”) by 1%, which is a very minimal change from the 2022 demographic data for the City. This addition will not change the other five Council district boundaries.
Upon Council approval, the City Clerk will transmit the newly approved City Council Districts to the Stanislaus County Registrar of Voters (“ROV”) for their records. The new district map will be used in the 2026 election, showing the boundaries of District 2. Although this action will officially change the District 2 boundaries, the final certification of the Fairview Village No. 2 1 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB849 2 https://codes.findlaw.com/ca/elections-code/elec-sect-21625/ #4..
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City Council, August 13, 2024
Updated Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a)
annexation was sent to the ROV in May of 2022 by LAFCO; therefore, the annexed area was included in the City’s Municipal Elections in November 2022 and March 2024.
FISCAL IMPACT:
There is no fiscal impact resulting from this action.
COMMITTEE RECOMMENDATION:
This item was not presented to a Council Committee.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2 pursuant to California Election Code Section 21625(a).
Approved by:
Jose M. Sanchez, City Attorney
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Exhibit A-Revised District Map showing layover Annexation area to District 2
3. Final District Map- All Districts
#4..
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX
RESOLUTION APPROVING THE UPDATED CITY COUNCIL DISTRICT MAP TO INCLUDE ANNEXED TERRITORY KNOWN AS FAIRVIEW VILLAGE NO. 2 TO DISTRICT 2 PURSUANT TO CALIFORNIA ELECTION CODE SECTION 21625(A)
WHEREAS, on March 23, 2022, the Fairview Village No. 2 annexation was approved by the Stanislaus County Local Agency Formation Commission (“LAFCO”); and
WHEREAS, this annexed property is located at the corner of Carpenter Road and Whitmore Avenue and added approximately 178 acres and 28 residents to the City of Modesto; and
WHEREAS, like many cities throughout California, Modesto utilizes a districtbased system of electing Council Members. After each decennial U.S. census, cities with district-based systems must “redistrict” to adjust the boundaries of the Council Members’ districts using the new census data; and
WHEREAS, every ten years, Council Member Districts must be examined and potentially redrawn so that each district is substantially equal in population. Redistricting determines which neighborhoods and communities are grouped together into a district for the purpose of electing a Council Member; and
WHEREAS, in September 2021, following the completion of the 2020 U.S.
Census, the City of Modesto began the redistricting process. Under Section 501(b)(2) of the City Charter (“Charter”), the City Council was required to appoint a Citizens’ Districting Commission (“Commission”) tasked with the function of recommending to the Council the districts from which Council Members shall be elected; and #4..
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WHEREAS, Charter Section 501(b)(3) required the City Council to appoint a Commission consisting of nine qualified electors residing within the City, reflecting the demographic and geographic diversity of the City. On September 28, 2021, by Resolution No. 2021-389, the Council appointed nine members to the Commission; and WHEREAS, on March 8, 2022, by Resolution No. 2022-140, Council approved the Final Council District Maps recommended by the Citizens’ Districting Commission; and
WHEREAS, the Fairview Village No. 2 annexation took place after the City completed its redistricting. The City is required to adjust its approved Council District Map to include the newly annexed property; and
WHEREAS, Pursuant to the California Election Code Section 21625(a), after redistricting, a city council shall not adopt new council district boundaries until after the next federal decennial census, except under the following circumstances: a court orders the council to redistrict; the council is settling a legal claim that its boundaries violate the U.S. Constitution, the federal Voting Rights Act of 1965, or the Elections Code; the boundaries of the city change by the addition of territory due to annexation or by subtraction of territory; the number of council members by districts is increased or decreased; or an independent redistricting commission is established to adopt new council districts between federal decennial census; and WHEREAS, since the annexation took place after the City completed its redistricting process, Section 21623(a) of the California Election Code allows the City #4..
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Council to add the new territory to the nearest existing Council district without changing the boundaries of other Council districts; and
WHEREAS, as part of adding this new territory to District 2, City staff engaged the demographer who assisted with the redistricting process in 2022 to confirm that this annexation did not impact the City’s 2022 redistricting efforts; and WHEREAS, according to the analysis by the demographer, the annexed area increases the Latino Citizen Voting Age Population (“CVAP”) by 1%, which is a very minimal change from the 2022 demographic data for the City. This addition will not change the other five Council district boundaries; and
WHEREAS, although this action will officially change the District 2 boundaries, the final certification of the Fairview Village No. 2 annexation was sent to the ROV in May of 2022 by LAFCO; therefore, the annexed area was included in the City’s Municipal Elections in November 2022 and March 2024; and WHEREAS, upon Council approval, the City Clerk will transmit the newly approved City Council Districts to the Stanislaus County Registrar of Voters (“ROV”) for their records.
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Modesto hereby approves the updated City Council District Map to include annexed territory known as Fairview Village No. 2 to District 2, attached hereto as Exhibit A, pursuant to California Election Code Section 21625(a).
BE IT FURTHER RESOLVED, that the City Clerk, or her designee is hereby directed to provide a certified copy of this Resolution and the District Map to the Stanislaus County Register of Voters.
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The foregoing Resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 13th day of August 2024, by Council Member ________, who moved its adoption, which motion being duly seconded by Council Member ______, was upon roll call carried and the resolution adopted by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _________________________________
JOSE M. SANCHEZ, City Attorney
#4..
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City of Modesto
Final map with annex with pre-annexoverlay
#4..
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Woodland Ave
S Emerald Ave
S Washington St
Tenaya Dr
Veneman Ave
Chicago Ave
Coldwell Ave
Kiernan Ave
Sierra Dr
N Conejo Ave
Caswell Ave
Maze
Blv
Broadway Ave
N Riverside Dr
Snyder Ave
Grecian Ave
Eastridge Dr
B
eyer P
ark
Dr
Hillglen Ave
C
al remo
nt A
ve
Wylie Dr
Daly Ave
Keller St
Dallas St
Merle Ave
Central Ave
Houser Ln
S Riverside Dr
Millbrook Ave
Laramie Dr
Bridgewood Wy
13th St
E Orangeburg Ave
Dragoo Park Dr
Beverly Dr
Temescal Dr
Panama Dr
Norwegian Ave
Mechalys Wy N Mc Clure Rd
Poust Rd
Esta Ave
El Pasado Dr
Orchard Park Wy
C olonial Dr
Manor Oak Dr
Faith Home Rd
Palmwood Dr
Cheyenne Wy
E Morris Ave
Litt Rd
Belharbour Dr
Sylvan Meadows Dr
Sonoma Ave
6th
St
Moffett Rd
4th
St
Veneman Ave N
2nd
St
Rose Ave
Nightingale Dr
Tioga Dr
Empire Ave
California Ave
Clevenger Dr
Edgebrook Dr
T
al
Cre
e
k
wood
Dr
Boothe Rd
Mars
ala
Wy
W Morris Ave
E Rumble Rd
Lillian Dr
Hashem Dr
Celeste Dr
W Union Ave
Claus Rd
Lincoln Oak Dr
Surrey Ave
S
h
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Wood Sorrel Dr
Colum bin
e
Dr
Carver Rd
Mount Vernon Dr
E Union Ave
Rouse Ave
Aria Wy
Toomes Rd
Dry Creek Dr
Peppermint Dr
Poppypatch Dr
Mc
Reynolds
Ave
7th St
Encina Ave
Oaklawn Dr
Rosemore Ave
Middleboro Pl
Mable Ave
Nadine Ave
Vintage Dr
Ha
h
n
Dr
Fine Ave
Montana Dr
Fowler Rd
Beckwith Rd
Tucson Ave
Blue Bird Dr
Virginia Ave
Edward Ave
Penny Ln
E Fairmont Ave
Miller Ave
Sunrise Ave
Bodem St
Richland Ave
W Roseburg Ave E Roseburg Ave Neece Dr
La Force Dr
Evans Rd
Kodiak Dr
Conant Ave
Woodrow
Ave
Glenn Ave
S Madison St
Robertson Rd
Finney Rd
Bacon Rd
Wade
Ave
Sharon Ave
Carver Rd
Church St
10th St
11th St
12th St
S Santa Cruz Ave
Herndon Rd
17th St
Murphy Rd
Sisk Rd
Napier Dr
Bowen Ave
Lifescapes
Dr
Maid Mariane Ln
Roselle Ave
Held
Dr
Coffee Rd
Bangs Ave
Roselawn Ave
Founders
Point Dr
Claribel Rd
El Roya
A
ve
Nathan Ave
S Santa Fe Ave
River Rd
Dale Rd
Brighton Ave
BuenaVista
E Hatch Rd
Tully Rd
Norseman Dr
N Emerald Ave
Hoover Ave
Claratina Ave
S C o
n
ejo
A
ve
Oakdale Rd
Chapman Rd
Milnes Rd
Wieland Ave
Dakota Ave
E Whitmore Ave Codoni Ave
Salida Blv
S Mc Clure Rd
Spenker Ave
E Glenn Ave
Plaza Parkway
Doherty Ave
Kiernan Ct
Woodland Ave
Paradise Rd
Garner Rd
Leckron Rd
E Whitmore Ave
Hillglen
Ave
Sutter Ave
Dale Rd
Standiford Ave
Richla
n
d
A
ve
Prescott Rd
Finch Rd
Lakewood Ave
La Loma Ave
Tuolumne Blv
E Hatch Rd
S 7th St
Tully Rd
Floyd Ave
Scenic Dr
5th St
W Rumble Rd
Kansas Ave
E Orangeburg Ave
Cro
ws Landin
g
R
d
S Martin Luther King Dr
College Ave
Coffee Rd Morgan Rd
E Rumble Rd
W Whitmore Ave
W Orangeburg Ave
19th St
Yosemite Blv
Broadway Ave
Paradise Rd
I St
1st St
J St
Lincoln Ave
Blue Gum Ave
Kiernan Ave
G St
N 9th St
B St
9th St
6th St
14th St
E Briggsmore Ave
Roselle Ave
Sylvan Ave
Central Ave
Herndon
Ave
Sisk Rd
Herndon Rd
Mc Henry
Ave
PelandaleAve
Beck with Rd
S
Santa Fe
A
ve
Morse Rd
Mariposa Rd
Garner Rd
Needham Opas
MC HENRY AVE
PARADISE AVE
NEEDHAMST
OAKDALE RD
H ST
G ST
EL VISTA AVE
E WHITMORE AVE
MITCHELL RD
YOSEMITE BLV
N
CARPE
N
TE
R
RD
S 9TH ST
PARADISE RD
L ST
MAZE BLV
E BRIGGSMORE AVE
E HATCH RD
S
CA
RPE
N
TE
R
RD
D ST
W HATCH RD
K ST
W BRIGGSMORE AVE
1ST ST
9TH ST
PELANDALE AVE
CLAUS RD
SCENIC DR
1 2
3 4
5 6
City of Modesto
Council District Map
0 0.5 1 2
Miles
Date: 8/13/2024
2 Jennings Rd
West Main St
E Las Palmas Ave
Sycamore Ave
___________________________________
Sue Zwahlen, Major Date
Legend
Council District - Population
1 - 36,216
2 - 37,472
3 - 35,853
4 - 37,182
5 - 37,025
6 - 35,503
K:\Working\Districting\Redistricting2022ver1.mxd
City of Modesto 2024 Adopted Map with Fairview Village
No. 2 Annexation
I certify that this Map correctly represents the boundaries of the City of Modesto and approved district boundaries. Please note that district boundaries follow centerline of road, centerline of lateral, or edge of right of-way as indicated on drawing. #4..
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 2, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Permanent Local Housing Allocation (PLHA) Program Year Four Allocation CONTACT: Edgar Garcia, Community Development Manager,
[email protected], 209-577-5211
DESCRIPTION:
Consider accepting the City of Modesto’s Permanent Local Housing Allocation (PLHA) Program Year Four allocation. (Funding Source: Permanent Local Housing Allocation Funds) STRATEGIC PLAN ELEMENT:
The recommended action supports the City’s 2020-2025 Strategic Plan, Goal C: Develop a Homelessness and Housing Plan
BACKGROUND:
In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act),1 which established a $75 recording fee on real estate documents to increase the supply of affordable housing. The Act established the Permanent Local Housing Allocation (PLHA) Program2 administered by the California Department of Housing and Community Development (HCD). The PLHA Program provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units.
The PLHA Program funding is non-competitive and provides formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program3 over a five-year funding period, as well as through a competitive grant program to non-entitlement jurisdictions.
1 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB2 2 https://www.hcd.ca.gov/grants-and-funding/programs-active/permanent-local-housing-allocation 3 https://www.hud.gov/program_offices/comm_planning/cdbg #5..
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City Council, August 13, 2024
Permanent Local Housing Allocation (PLHA) Program Year 4 Allocation
HCD released its first Notice of Funding Availability (NOFA) for these funds on February 26, 2020, for which the City applied and received approval on July 14, 2020 for a five-year award amount not to exceed $5,818,482; under the first round of funding, the City was awarded $969,747.
On May 3, 2021, HCD released the second round of funding under the 2021 Formula NOFA. The City applied for and received $1,507,287 for a total amount of $2,477,034 of the $5,818,482 award.
On August 17, 2022, HCD released the third round of funding under the 2022 Formula NOFA.
The City applied and received $1,658,723 for a total amount of $4,135,757 of the $5,818,482 award.
On December 29, 2023, HCD released the fourth round of funding under the 2023 Formula NOFA.
The City intends to apply for the fourth round of funding, in the amount of $831,356 for a total amount of $4,967,113 of the $5,818,482 award.
DISCUSSION:
The City was estimated to receive $5,818,482 in PLHA Program funding for fiscal years 2020- 2025. It is important to note that this is an estimate, since annual PLHA amounts are subject to change. Funding for the PLHA is generated through a fee on real estate transactions, which may fluctuate from year to year. The State has determined that the City’s fourth year allocation is $831,356 for a combined four year total of $4,967,113.
The State encourages entitlement jurisdictions to use PLHA funds to increase the supply of affordable housing. In order to receive PLHA funds in 2020, the City was required to submit an application with a five-year PLHA Plan (The Plan) detailing the manner in which allocated funds will be used; a description of the way the local government will prioritize investments that increase the supply of housing for households at or below 60 percent (60%) of area median income (AMI); a description of how the Plan is consistent with the programs set forth in the City’s Housing Element, and a Reuse plan for any income generated by the program loan repayments.
Eligible Uses
The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low, very low, low, or moderate-income households, including necessary operating subsidies. The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120-percent of AMI, or 150-percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
Accessibility modifications in lower-income owner-occupied housing. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. Homeownership opportunities, including, but not limited to, down payment assistance. #5..
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City Council, August 13, 2024
Permanent Local Housing Allocation (PLHA) Program Year 4 Allocation
On May 12, 2020, the City adopted, by Resolution number 2020-224, the 2020-2025 Consolidated Plan which established community development and affordable housing priorities for the use of federal Housing and Urban Development program funds over the next five years. The 2020-2025 Consolidated Plan identified affordable housing and homelessness as the two highest priorities.
These plan priorities were established through citizen surveys, public community meetings, stakeholder and special interest group engagements, and more recently the Stanislaus Community Foundation stakeholder survey. The common theme through the community engagement process was the lack of affordable housing and rising number of individuals experiencing homelessness as the most pressing needs in the community. PLHA funding will assist in addressing the Consolidated Plan priority needs and in further expanding the construction of affordable housing within the City. In the same manner, PLHA funds will assist in developing additional affordable housing units that will count toward addressing the City’s Housing Element’s Regional Housing Needs Allocation (RHNA).
On July 14, 2020, by Resolution number 2020-318, the City of Modesto adopted the five-year PLHA Plan. Based on the approved plan the fourth-year allocation of $831,356 will be allocated as follows:
Funding
Amount
Program
$473,873 301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential livework, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary Operating subsidies.
$315,916 301(a)(6) - Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing
$41,567 Program Administration
$831,356 TOTAL
FISCAL IMPACT:
This funding source is from the State of California’s Department of Housing and Community Development, and all funding will reside in Fund 1120 – Grants – PLHA Program. There will be no impact on the General Fund.
COMMITTEE RECOMMENDATION:
This item was presented to the Citizen Housing and Community Development Committee on April 11, 2024, and the Committee recommended forwarding the item to Council for approval. #5..
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City Council, August 13, 2024
Permanent Local Housing Allocation (PLHA) Program Year 4 Allocation
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution accepting the City of Modesto’s Permanent Local Housing Allocation (PLHA) Program Year Four Award, authorizing the City Manager, or his designee, to execute any program Agreements required for implementation and acceptance of the Permanent Local Housing Allocation (PLHA) Program.
Resolution amending the Fiscal Year 2024-2025 Multi-Year Fund Budget to a project for the Fiscal Year 2024-2025 PLHA Program to be funded with the Permanent Local Housing Allocation Program Grant.
Approved by: ___________
Jessica Hill,
Director of Community and Economic Development
___________
Joseph P. Lopez, City Manager
Attachments:
1. Resolution - Year 4 (1)
2. Resolution – Budget (2)
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08/13/2023/C&ED/EGarcia 1 2024-
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION ACCEPTING THE CITY OF MODESTO’S PERMANENT
LOCAL HOUSING ALLOCATION (PLHA) PROGRAM YEAR FOUR AWARD,
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE
ANY PROGRAM AGREEMENTS REQUIRED FOR IMPLEMENTATION AND
ACCEPTANCE OF THE PERMANENT LOCAL HOUSING ALLOCATION
(PLHA) PROGRAM
WHEREAS, in September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing and the Act established the Permanent Local Housing Allocation (PLHA) Program administered by the California Department of Housing and Community Development (HCD), and
WHEREAS, the PLHA Program provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units, and
WHEREAS, on December 29, 2023, HCD released the fourth round of funding under the 2023 Formula NOFA, and
WHEREAS, the City was estimated to receive $5,818,482 of PLHA Program funding for fiscal years 2020-2025, and
WHEREAS, funding for the PLHA is generated through a fee on real estate transactions, which may fluctuate from year to year, and WHEREAS, according to HCD, the City’s fourth-year allocation is $831,356, and WHEREAS, on July 14, 2020, by Resolution number 2020-318, the City of Modesto adopted the five-year PLHA Plan, and
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08/13/2023/C&ED/EGarcia 2 2024-
WHEREAS, based on the approved plan the fourth-year allocation of $831,356 will be allocated in accordance with the approved plan.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby accepts the City of Modesto’s Permanent Local Housing Allocation (PLHA) Program Year Four Allocation.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute any program agreements required for implementation and acceptance of the Permanent Local Housing Allocation (PLHA) Program.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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:
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08/13/2023/C&ED/EGarcia 3 2024-
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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08/13/2024/C&ED/EGarcia 1 2024-
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION AMENDING THE FISCAL YEAR 2024-2025 MULTI-YEAR FUND BUDGET TO A PROJECT FOR THE FISCAL YEAR 2024-2025 PLHA
PROGRAM TO BE FUNDED WITH THE PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM GRANT
WHEREAS, the City of Modesto applied to receive entitlement funding from the State of California Housing and Community Development Department (HCD) based on its entitlement status of the U.S. Department of Housing and Urban Development Community Development Block Grant Program, and
WHEREAS, the fiscal year 2024-2025 Multi-Year budget must be amended as outlined in Exhibit A, and
WHEREAS, the Program was estimated to provide $5,818,482 over the prior five years to the City, including $831,356 for the current fiscal year for eligible PLHA Program Activities and Administration, and
WHEREAS, these funds are allocated through the 302(C)(4) Plan which has been approved by the City Council by Resolution 2020-318.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the fiscal year 2024-2025 multi-year fund budget is hereby amended to include a project for the fiscal year 2024-2025 PLHA Program to be funded with Permanent Local Housing Allocation Program Grant in the amount of $831,356.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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:
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08/13/2024/C&ED/EGarcia 2 2024-
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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08/13/2024/C&ED/EGarcia 3 2024-
Exhibit A
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 2, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Amend Section 6 of the Housing and Urban Development Policies & Procedures Manual (Homeowner Rehabilitation Program Policies)
CONTACT: Edgar Garcia, Community Development Manager,
[email protected], 209-577-5211
DESCRIPTION:
Consider amending the Section 6 Policy (Housing Rehabilitation Program) of the Housing and Urban Development (HUD) Policies & Procedures Manual. (Funding Source: HUD Funding) STRATEGIC PLAN ELEMENT:
The recommended action supports the City’s 2020-2025 Strategic Plan, Goal C: Develop a Homelessness and Housing Plan
BACKGROUND:
Each year, the City receives Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funding from the U.S.
Department of Housing and Urban Development (HUD).
The objective of the CDBG Program is to develop viable urban communities through decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons by supporting activities such as public facilities improvements, social services, affordable housing, fair housing, economic development and addressing homelessness. The HOME program supports a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. The ESG program provides funding for a variety of services including but not limited to engaging homeless individuals and families, emergency shelters, homeless prevention, and rapid rehousing activities.
Each funding source requires the City as a recipient to adhere to the regulatory requirements.
As such, in October 2016, the Council, by Resolution No. 2016-425, adopted a Housing & Urban Development Policies & Procedures Manual (HUD Manual). This document consolidated all HUD-related Policies & Procedures into one manual.
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City Council, August 13, 2024
Section 6 of the Housing and Urban Development Policies & Procedures Manual (Homeowner Rehabilitation Program Policies)
The Section 6 of the Housing & Urban Development Policies & Procedures Manual was last updated on December 13, 2022 to comply with updates in accordance with the corresponding regulations.
DISCUSSION:
On November 9, 2023, City Council authorized an Ordinance amending sections of Title 8, Chapter 3 of the Modesto Municipal Code to increase the City Manager’s authority for all contracts and purchase orders from $50,000 to $100,000 for goods/services; increasing the City Manager’s authority for all emergency projects, purchases and services; increasing the formal bidding authority from $50,000 to $100,000.
In order to align with this updated Purchasing Policy, the Section 6 policy (Homeowner Rehabilitation Program) has updated the following sections 5.0, 9.0, and 11.0, to include the authority of loan approvals up to $100,000 for the Housing Rehabilitation Loan Committee and to forward to City Council for approval all projects in excess of $100,000 to conform to current City Procurement Policy and amending language specific to cost of allowed rehabilitation amount for manufactured homes. The revision to the allowed rehabilitation amount for manufactured homes will help ensure that the City’s loan is secured against the property.
Additionally, as it relates to the City Manager’s authority within the $100,000 threshold, the approval of these policy changes will authorize City staff to begin moving forward with projects that do not exceed $100,000 immediately following the approval of the Housing Rehabilitation Loan Committee which encompasses a significant majority of the approved projects.
FISCAL IMPACT:
The HUD Policies & Procedures Manual is only applicable to those loans and grants funded through Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), Home Investment Partnerships Program American Rescue Plan (HOME ARP), Emergency Solutions Grants (ESG) or Neighborhood Stabilization Program (NSP) funds.
There is no impact to the General Fund.
COMMITTEE RECOMMENDATION:
This item was presented to the Citizen Housing and Community Development Committee on June 13, 2024, and the Committee recommended forwarding the item to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution amending Section 6 (Housing Rehabilitation Program) of the Housing and Urban Development Policies & Procedures Manual
Approved by: ___________
Jessica Hill,
Director of Community and Economic Development
___________
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City Council, August 13, 2024
Section 6 of the Housing and Urban Development Policies & Procedures Manual (Homeowner Rehabilitation Program Policies)
Joseph P. Lopez, City Manager
Attachments:
1. Resolution Section 6 Policy Update
2. Draft Section 6 Housing Rehabilitation Policy
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08/13/2024/C&ED/EGarcia 1 2024-
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION AMENDING SECTION 6 (HOUSING REHABILITATION
PROGRAM) OF THE HOUSING AND URBAN DEVELOPMENT POLICIES &
PROCEDURES MANUAL
WHEREAS, on November 9, 2023, City Council authorized an Ordinance amending sections of Title 8, Chapter 3 of the Modesto Municipal Code to increase the City Manager’s authority for all contracts and purchase orders from $50,000 to $100,000 for goods/services; increasing the City Manager’s authority for all emergency projects, purchases and services; increasing the formal bidding authority from $50,000 to $100,000, and
WHEREAS, in order to align with this updated Purchasing Policy, the Section 6 policy (Homeowner Rehabilitation Program) has updated the following sections 5.0, 9.0, and 11.0, to include increasing loan approvals up to $100,000 for Housing Rehabilitation Loan Committee and to forward to City Council for approval all projects in excess of $100,000 to conform to the current City Procurement Policy and amending language specific to cost of allowed rehabilitation amount for manufactured homes, and WHEREAS, the approval of these policy changes will authorize the City staff to begin moving forward with projects that do not exceed $100,000 immediately following the approval of the Housing Rehabilitation Loan Committee which encompasses a significant majority of the approved rehabilitation projects.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby amends Section 6 (Housing Rehabilitation Program) of the Housing and Urban Development Policies & Procedures Manual.
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08/13/2024/C&ED/EGarcia 2 2024-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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:
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08/13/2024/C&ED/EGarcia 3 2024-
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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1 Section 6
Homeowner Rehabilitation Program
Policies & Procedures
[email protected]
Citizens Housing and Community Development Committee (CH&CDC) Approved November 11, 2022 City of Modesto City Council Approved by Resolution 2022-481 on December 13, 2022 *These policies supersede any previously adopted policies and are subject to review and revision by the City of Modesto Housing Rehabilitation Loan Committee.
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2 Table of Contents
1.0 APPLICABLE LAWS AND REGULATIONS................................................................................................3
2.0 ELIGIBLE REPAIRS (in order of priority)......................................................................................................3
3.0 PROPERTY ELIGIBIILTY:.............................................................................................................................3
4.0 HOMEOWNER ELIGIBILITY:.......................................................................................................................4
5.0 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE (24 CFR 570.208 (a)(3);(b), and 24 CF570.202):.6
6.0 MAXIMUM AFTER REHABILITATION VALUE........................................................................................6
7.0 MAXIMUM COMBINED LOAN TO VALUE RATIO:.................................................................................7
8.0 RATES AND TERMS OF PROGRAM ASSISTANCE: .................................................................................7
9.0 MANUFACTURED HOMES:..........................................................................................................................8
10.0 BID SOLICITATION: ......................................................................................................................................8
11.0 PROCUREMENT .............................................................................................................................................9
12.0 EMERGENCY REPAIRS PROCEDURE......................................................................................................12
13.0 CONTRACTOR ELIGIBILITY .....................................................................................................................13
14.0 COST REASONABLENESS AND SCOPE OF WORK:..............................................................................14
15.0 ENVIRONMENTAL REVIEW:.....................................................................................................................15
16.0 HOUSING REHABILITATION LOAN COMMITTEE (HRLC) APPROVAL:......................................1615
17.0 WRITTEN AGREEMENTS:..........................................................................................................................16
18.0 PROJECT CONTINGENCIES .......................................................................................................................16
19.0 CONTRACTOR LIST ....................................................................................................................................17
20.0 CONTRACTOR DISQUALIFICATION/REMOVAL FROM CONTRACTOR LIST.............................1817
21.0 PROGRESS INSPECTIONS ..........................................................................................................................19
22.0 CONTRACTOR COMPENSATION..............................................................................................................19
23.0 NON-PROFIT SPONSORED HOUSING ACQUISITION AND/OR REHABILITATION ACTIVITIESError! B
24.0 MONITORING ...........................................................................................................................................2021
25.0 LEAD BASED PAINT OPERATING PROCEDURES FOR UNITS BUILT PRIOR TO 1978 ..............2021
26.0 LOAN MODIFICATIONS .............................................................................................................................23 #6..
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3 Homeowner Rehabilitation Program Policies & Procedures
1.0 APPLICABLE LAWS AND REGULATIONS
1.1 All Housing Rehabilitation Program activities shall be conducted in accordance with all applicable federal, state, and local program funding standards, building codes, and zoning ordinance requirements.
1.2 All work conducted in accordance with an approved Housing Rehabilitation Program activity shall be consistent with program funding requirements and any locally approved repair and replacement standards including, but not limited to: site improvements, windows and doors, roofing, ventilation, electrical, plumbing systems, HVAC, accessibility, and abatement of hazardous materials (i.e. mold, lead based paint, etc.).
1.3 All terms used within these policies shall be as defined by applicable funding source(s) or other locally approved Housing Rehabilitation Program policies and/or standards.
1.4 All program applications will be processed in accordance to the date of receipt of a complete application and are subject to available funding.
2.0 ELIGIBLE REPAIRS (in order of priority)
2.1 Health and Safety repairs as determined by utilization of the City of Modesto HUD Housing Quality Standards (HQS) inspection analysis.
2.2 Spot Rehabilitation Eligible non-health and safety related repairs (e.g. - required by State or local Building Code).
Accessibility Repairs to make the home accessible for disabled household members.
2.3 Energy Efficiency Improvements may be conducted along with any of the eligible repairs listed above. Energy efficiency improvements may include, but are not limited to:
2.3.1 Replacing single pane windows with double pane windows;
2.3.2 Replacing antiquated water heater;
2.3.3 Replacing antiquated HVAC system;
2.3.4 Weatherization improvements.
2.4 Applicant is Encouraged to Explore Other Available Funding Sources in order to comply with program funding requirements. The applicant is encouraged to explore other viable program alternatives/resources that may provide assistance to address any of the above eligible repairs.
The Housing Finance Specialist in coordination with the Housing Rehabilitation Specialist shall conduct a resource coordination analysis to ensure the applicant has taken advantage of any other resources that may be available prior to receiving assistance via the City of Modesto’s Housing Rehabilitation Program.
3.0 PROPERTY ELIGIBIILTY:
3.1 The assisted property shall be located within the city limits of the City of Modesto. #6..
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4 3.2 The assisted property shall contain a legal residential structure intended for continued residential occupancy and meet applicable rehabilitation standards and ordinances at the time of project completion.
3.3 A manufactured home (mobile home) in a mobile home park or on leased land that is not on a permanent foundation may only qualify for a grant as allowed under MANUFACTURED HOMES Section of these policies.
3.4 The assisted property shall be owner-occupied and shall be the principal place of residency of owner-occupants (hereafter “Borrowers”) and hold legal title to the property.
3.5 The assisted property shall be run through the City of Modesto Neighborhood Preservation Unit database to ensure no outstanding violations.
4.0 HOMEOWNER ELIGIBILITY:
4.1 All Borrower households shall have incomes at or below 80 percent (80%) of the Stanislaus County Area Median Income (AMI), adjusted for household size, as published annually by the California State Department of Housing and Community Development (HCD) or United States Department of Housing and Urban Development (HUD). The applicable AMI shall be as required by available funding source(s).
4.2 Borrowers without a mortgage shall demonstrate a debt-to-income ratio sufficient to allow for the on-going annual payments of property tax and any insurance required as a result of the Housing Rehabilitation Program assistance.
4.3 Borrowers with Reverse Mortgages will be considered on a case by case basis. Borrower is responsible for providing the creditor’s acceptance of subordination to the City of Modesto.
Borrower must comply with program loan to value requirements.
4.4 Borrowers with a mortgage shall show that all mortgage, property tax, and insurance payments are current, and meet both of the following debt-to-income ratios:
4.4.1 Front end (housing) debt-to-income ratio shall not exceed 35 percent (35%) and is the percentage of a Borrower’s gross monthly income that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any.
4.4.2 Back-end (total debt obligation) debt-to-income ratio shall not exceed 45 percent (45%), and is the percentage of the borrower’s gross monthly income that includes the cost of housing as described in the Front-End ratio above, plus any other monthly debt payments such as car loans, personal loans, credit card debt, or child support and alimony payments.
4.5 Credit Report and Liabilities
4.5.1 The Housing Financial Specialist (HFS) must obtain a signed “Authorization to Verify Information” and/or “Eligibility Release Form” from the applicant authorizing the City to pull a credit report and verify any information with a third party.
4.5.2 The HFS shall pull the applicant(s) credit report within three business days of determining income eligibility. The HFS shall order a credit report through the City of Modesto’s #6..
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5 secure account held with a major credit bureau (e.g. Equifax, Experian, or Transunion). A credit report shall be pulled for all program applicants.
4.5.3 If the applicant is eligible for a loan, the credit report should be reviewed to determine if any public liens will be in prior position to the City loan, or to compare the applicant’s actual credit liabilities with the liabilities listed on the application. The credit report should be used for verification of information. The credit score is not relevant for a deferred payment loan. Debt-to-income guidelines should be used to demonstrate the household’s ability to continue to live in the home.
4.5.4 If the applicant is eligible for an amortized loan, the credit report should be analyzed for a credit score, verification of debts, and ability and willingness to repay the loan. The HFS shall use debt-to-income ratios allowable under this policy as a guideline for payment affordability.
4.5.5 Special Note: Household income must be collected on all qualifying adult household members per HUD guidelines. However, only the credit liabilities of the applicant will be used in the credit liability calculation. Adult members of the household who are not on title are not a party to the loan transaction.
4.6 Borrowers shall meet the following credit worthiness criteria:
4.6.1 No outstanding judgments or liens at the time of loan approval or loan execution. As part of application for assistance, Borrower shall disclose any personal liens that may attach to the property. Failure to disclose any pertinent information that may affect eligibility may be grounds for denial of assistance and application withdrawal. To identify any personal liens, a Judgment and Tax Lien Guarantee search of Borrowers and Preliminary Title Report search on the property shall be conducted after Housing Rehabilitation Loan Committee (HRLC) approval.
4.6.2 Outstanding collections must be paid prior to HRLC approval, unless the HRLC determines, on a case by case basis, that the circumstances that led to collection were outside of the applicant’s control, and the payment of the outstanding collection(s) will not impact the applicant’s ability to financially retain ownership.
4.6.3 Late payments due to extenuating circumstances will be considered as part of the approval process. Factors leading to late payments will be reviewed and considered on a case by case basis.
4.6.4 Borrower shall not have filed bankruptcy, or received a bankruptcy discharge, in the last three (3) years prior to date of application.
4.6.5 Homeowner Eligibility – the Housing Rehabilitation Loan Committee (HRLC) will consider applications on a case by case basis. The HRLC will have the discretion to consider any extenuating circumstances for a homeowner who may not meet the Homeowner Eligibility Guidelines and may decide to approve the application based on such extenuating circumstances.
4.6.5.1 Applicants with Debt to Income ratios outside the limits established within these policies may be considered for assistance if the Debt to Income ratio is within 10% of the current Homeowner Rehabilitation Program Policies & Procedures guidelines.
4.6.5.2 Applicants who have defaulted on their property taxes may be considered for assistance if a payment plan has been established with the Stanislaus County Treasurer/Tax Collector’s Department and applicant is current on those payments. #6..
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6 4.7 If at any time the Borrowers filed bankruptcy that resulted in a discharge of any debt owed to City of Modesto, or the former City of Modesto Redevelopment Agency, for housing rehabilitation or down payment assistance, the HRLC shall evaluate the circumstances of the bankruptcy in order to determine if further assistance may be provided without further risk to funding investment.
4.8 Borrowers shall not be a person, or the immediate family of any person, who is in a decisionmaking position relative to the Housing Rehabilitation Program.
4.9 Process:
4.9.1 Housing Finance Specialist determines general program eligibility, including income limits and lending loan-to-value ratios along with a process to determine all other funding opportunities have been explored (technical assistance);
4.9.2 Housing Rehabilitation Specialist determines properties needs via Housing Quality Standards (HQS) inspection (pre-1978 visual Lead Based Paint Inspection conducted);
4.9.3 Housing Rehabilitation Specialist scope of work and budget to Housing Rehabilitation Supervisor;
4.9.4 HRLC reviews for consideration and approval of the overall project proposal;
4.9.5 Housing Rehabilitation Specialist processes approved projects through the bid process;
4.9.6 Application inquiry through program completion within approximately 90-days, unless there are extenuating circumstances beyond staff control (e.g. – rain delays);
4.9.7 Quarterly program updates provided to HRLC.
5.0 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE (24 CFR 570.208 (a)(3);(b), and 24 CFR 570.202):
5.1 Single Family Residence: An eligible Borrower may qualify for the full cost of rehabilitation/reconstruction work needed to address any Eligible Repairs outlined in ELIGIBLE REPAIRS Section, and/or comply with state and local codes and ordinances; however, the maximum assistance shall not exceed any maximum subsidy established by the funding source(s) utilized to fund the project.
5.1.1 Reconstruction shall only be authorized when the cost of rehabilitation will exceed 75 percent of the current estimated value of the property, as determined by the Housing Financial Specialist;
5.1.2 Loan amount is determined by the repairs/modifications that are required or eligible, as requested and approved by the owner, Community Development Manager or his/her designee.
5.1.3 Maximum amounts are as follows:
5.1.3.1 Grants up to $10,000 require HRLC acknowledgement in order for staff to proceed;
5.1.3.2 Loans up to $100,00049,999 require HRLC approval in order for staff to proceed;
5.1.3.3 Loans of $100,00150,000 or more require HRLC approval and subsequent City Council approval in order for staff to proceed.
5.1.4 Additional loans may be granted within applicants’ overall loan-to-value ratios;
5.1.5 Emergency repairs of up to $5,0005,000 may be authorized by the Director of Community and Economic Development if it poses an “extreme health and safety related emergency (e.g. – plumbing or electrical hazards).
6.0 MAXIMUM AFTER REHABILITATION VALUE
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7 The after-rehabilitation value of a home assisted under this program shall not exceed 100% of the current median sales price of a single-family home listed for the City of Modesto. This information may be obtained by collecting comparable sales data from sources including but not limited to Zillow, Trulia, Data Quick, Realty Trac, Real Quest, Epraisal.com, or FHA 203(b) loan limits. If necessary, the after-rehabilitation value may be determined by ordering a professional appraisal. An After-Rehabilitation Value Limit Worksheet must be completed and certified by the housing rehabilitation specialist and placed in the project file.
7.0 MAXIMUM COMBINED LOAN TO VALUE RATIO:
7.1 For CDBG funded loans, the total indebtedness against the assisted property shall not exceed 100% of the estimated after-rehabilitation value of the property as determined by “Estimates of Value” conducted by program staff using a Comparable Sales Approach, or an appraisal by a licensed appraiser if required by funding source.
7.2 As part of application for assistance, Borrower shall disclose any personal liens that may attach to the property (failure to disclose any pertinent information that may affect eligibility may be grounds for denial of assistance and application withdrawal). To determine the total indebtedness assigned against the property, a title search of the property and Borrowers (for the purpose of verifying any personal liens that may attach to the property) shall be conducted after HRLC project approval.
7.3 An “Estimates of Value” using a Comparable Sales Approach shall be based on the sale prices of at least three (3) comparable properties, sold within the last twelve months and located within a one-mile radius if available or reasonable radius of the subject property. Any alternative methodology for determining estimated value must be approved by the HRLC.
7.4 In the case of a reconstruction, as allowed under Section MAXIUM AMOUNT OF PROGRAM ASSISTANCE Section, the HRLC may consider approval of projects that exceed the CLTV limit.
Provided all other criteria for assistance is met and the City of Modesto will be in first lien position.
8.0 RATES AND TERMS OF PROGRAM ASSISTANCE:
8.1 Eligible homeowners may receive a deferred payment loan evidenced by a Promissory Note and secured by a Deed of Trust, with no payback required for 20 years unless the borrower sells or transfers title or discontinues residence in the dwelling.
8.1.1 Term of Grant Agreement: The following grant agreement term will apply to those projects with a grant and loan combination, 10 years. During the Grant Agreement term, the homeowner must comply with all Grant Agreement requirements.
8.1.1.1 Grant assistance will be 20% of total project cost or $10,000 whichever is less. 10% of the total Grant amount will be forgiven each year the home is owned and continuously occupied by the borrower.
8.2 The homeowner will be able to choose one of the following interest terms prior to contract and loan signing:
8.2.1 Loans will be due at a 20-year maturity date.
8.2.1.1 0% interest for borrowers making consistent monthly payments,
8.2.1.1.1 If in the case monthly payments are not made timely late fees will be incurred per agreement specifications.
8.2.1.2 3% interest for borrowers not making monthly payments. #6..
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8 8.3 City of Modesto may accept voluntary payments on deferred loans. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre-payment penalty. If it is determined by the City of Modesto that repayment of the loan at the maturity date causes a hardship to the homeowner, the City of Modesto may opt, with HRLC approval, the following:
8.3.1 Amend the Promissory Note and Deed of Trust to defer repayment of the amount due at maturity, that is the balance of the original principal plus the accrued interest, for up to an additional 20 years (at 0 percent additional interest). This may be offered one time; or,
8.3.2 Convert the debt to loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 20 years at 0 percent additional interest.
8.4 In the event that a homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan shall become due and payable.
8.5 Any other transfer of interest, due to homeowner death or other circumstances shall be subject to the requirements of the funding source(s) and shall be defined within the Promissory Note and/or Deed of Trust.
8.6 The HRLC may approve a request to subordinate a loan, in order for the owner to refinance the property. Refer to City of Modesto Subordination Policy for subordination approval criteria.
9.0 MANUFACTURED HOMES:
9.1 Assistance to manufactured homes on a non-permanent foundation will be provided as follows:
9.1.1 The total assistance provided to a manufactured home shall not exceed $25,000 (combined total of all grants, if multiples).
9.1.1.1 If additional Health and Safety repairs are discovered after the project commences that will exceed the $25,000- staff can bring a recommendation forward on a case-by-case basis to the Committee for an exception.
9.1.1.2 If approved, this funding would be considered a loan secured by a Loan Agreement. Funding would be amortized for a maximum of five years and bear zero percent interest.
9.1.2 Assistance to manufactured homes will be a one-time grant, with the exception of emergency health and safety repairs. This additional assistance will be determined on a case-by-case basis.
9.1.3 Replacement The project will not shall only be considered when the cost of rehabilitation will exceed 75 percent of the current estimated value of the property, as determined by the Housing Financial Specialist.
9.2 Assistance to manufactured homes will be reflected via the execution of a Grant Agreement.
9.3 Length of Grant Agreement: The grant agreement will be in effect for five (5) years from the date of execution; 20% of the total Grant amount will be forgiven each year the home is owned and continuously occupied by the borrower.
9.4 During the Grant Agreement term, the mobile homeowner must comply with all Grant Agreement requirements.
10.0 BID SOLICITATION:
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9 10.1 A detailed scope of work and project independent cost estimate developed by the Housing Rehabilitation Specialist (HRS) based on eligible repairs as listed in ELIGIBLE REPAIRS Section
2.0 shall be prepared prior to consideration for HRLC and bid submittal. The Scope of Work shall be approved by the Housing Rehabilitation Supervisor and Borrower.
10.1.1 The independent cost estimate shall be established utilizing local market data and published construction cost guidelines.
10.1.2 The Housing Rehabilitation Supervisor will review the independent cost estimate prepared by the HRS to ensure the cost estimate is reasonable based on local market data. See COST REASONABLENESS Section for further details on Cost Reasonableness.
10.2 To comply with HUD requirements, a minimum of three bids by California Licensed Contractors shall be obtained prior to bid approval consideration. The City of Modesto will make every attempt to obtain the highest number of bids possible for every project.
10.3 Bids in excess of 15% of the HRLC approved amount must be brought back to HRLC for approval consideration.
10.3.1 If determined appropriate by Housing Rehabilitation Specialist, bids solicitations may be requested from multiple contractors with different disciplines (i.e. general, electrical, roofing, and plumbing, etc.). This approach may be considered as a cost savings measure, if approved by the Housing Rehabilitation Supervisor.
11.0 PROCUREMENT
11.1 Procurement projects under this program will occur after Housing Rehabilitation Loan Committee project approval. The HRLC will approve each project based on Housing Rehabilitation Cost Estimates. Upon project approval, project procurement will occur in alignment with the 15% cost reasonableness rule identified in COST REASONABLENESS Section.
11.2 Projects procured under the Homeowner Rehabilitation Program will be conducted in a manner that promotes full and open competition and avoid arbitrary action in the procurement process.
The following procurement process will be followed by the City:
11.2.1 Procurement of contractors or other services related to the development of housing through either new construction or rehabilitation must be made on the basis of soliciting competitive bids. Advertisements for bids must include the following language: “This is a HUD funded project; Section 3 businesses and/or business that employ Section 3 residents are encouraged to respond.”
11.2.2 The projects will be publicly advertised through the City’s PlanetBid system, when timing permits. All contractors registered on the City’s PlanetBid system will receive notification of project availability.
11.2.2.1 The Community Development Division will notify prospective bidders, when feasible, to encourage as wide a response as possible.
11.2.3 The bid solicitation will include a scope of work, project address, date of mandatory walkthrough, and date bids are due.
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10 11.2.4 Contracts will be awarded to responsible contractors who possess the ability to perform successfully under the terms and conditions of the proposed procurement. Nonresponsible contractors will not be allowed to bid on City projects under this program for the duration of the program year.
11.2.5 Rehabilitation projects below $50,000100,000:
11.2.5.1 Contracts under $50,000100,000 are considered a “Small Purchase” under the City’s purchasing policies and HUD’s procurement guidelines.
11.2.5.2 The policy aligns with OMB Guidance Section 200.319 and 200.320
11.2.5.3 Projects under $50,000100,000 shall be purchased with three quotes, with public advertising through PlanetBid, if time permitted.
11.2.5.4 The mandatory walkthrough will take place eight (8) business days from the date of bid posting. Contractors will have the opportunity to view project items to be repaired and ask any questions for clarification of bid specifications.
11.2.5.5 Depending on the nature of questions addressed and clarification provided at the mandatory walkthrough, the Housing Rehab Specialist (HRS) may need to amend the project’s Scope of Work. If this occurs, the HRS will issue an amended Scope of Work and release to all contractors who attended the mandatory walkthrough.
11.2.5.6 Bid proposals from contractors will be due 8 calendar days from the mandatory walkthrough.
11.2.5.7 All bids from contractors must be sent via email to [email protected], or dropped off in person to 1010 10th Street, Suite 3100, Modesto CA 95354
11.2.5.8 All bids will be reviewed by a program supervisor (e.g. Housing Rehabilitation Supervisor or Senior Community Development Program Specialist) and recorded by a program specialist (e.g. Housing Financial Specialist or Housing Rehab Specialist).
11.2.5.9 The HRS will summarize the lowest responsible bid results on the “Work Specification” document
11.2.5.10 If less than three written quotes are obtained, an exception may be granted with justification documented and approved by the Purchasing Manager.
11.2.6 The applicant will be required to accept the lowest responsible bid with certain exceptions. Rejection of the low bidder without cause will result in cancellation of the project.
11.2.6.1 If on the basis of references, or the inability to start work within a reasonable timeframe, the property owner request to reject the low bidder, he/she must do so in writing. Upon confirmation of the reason for #6..
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11 rejection by City staff, the low bidder will be rejected, and the next lowest bidder will be considered.
11.2.7 Upon selection of lowest responsible bidder, the HRS will prepare the respective documents for contractor, homeowner signatures, and City signatures (e.g. Housing Rehabilitation Contract and Grant/Loan Documents).
11.2.8 Once contracts are executed, City Staff will record loan documents with the Stanislaus County Recorder’s Office.
11.2.9 Upon receipt of recorded documents, the Housing Rehabilitation Supervisor will:
11.2.9.1 Issue a Notice to Proceed to the contractor. The contractor will have seven (5) calendar days to begin work from the date of issuance.
11.2.9.2 Route contracts for encumbrance the City’s financial system.
11.3 Rehabilitation Projects over $50,000100,000:
11.3.1 In alignment with the City’s Procurement policy, all projects in excess of $100,00050,000 will require HRLC approval and subsequent City Council approval, and must follow the City’s Formal Bids/Proposals policy process as follows
11.3.1.1 Projects over $100,00050,000 shall be purchased through the sealed bid process with the requirement of obtaining three quotes, with public advertising through PlanetBid
11.3.1.2 Procurement of contractors or other services related to the development of housing through either new construction or rehabilitation must be made on the basis of soliciting competitive sealed bids. Advertisements for bid must include the following language: “This is a HUD funded project; Section 3 businesses and/or business that employ Section 3 residents are encouraged to respond.”
11.3.1.3 The projects will be publicly advertised through the City’s PlanetBid system. All contractors registered on the City’s PlanetBid system will receive notification of project availability.
11.3.1.3.1 The Community Development Division will notify prospective bidders, when feasible, to encourage as wide a response as possible.
11.3.1.3.2 11.3.1.4 The mandatory walkthrough will take place eight (8) business days from the date of bid posting. Contractors will have the opportunity to view project items to be repaired and ask any questions for clarification of bid specifications.
11.3.1.5 Depending on the nature of questions addressed and clarification provided at the mandatory walkthrough, the Housing Rehab Specialist (HRS) may need to amend the project’s Scope of Work. If this occurs, the HRS will issue an amended Scope of Work and release to all contractors who attended the mandatory walkthrough.
11.3.1.6 Sealed bids from contractors will be due sixteen (16) calendar days from the mandatory walkthrough at the following location: 1010 10th Street, Suite 3100, Modesto CA 95354
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12 11.3.1.7 The bid opening will be held in a public forum at a City location announced in the Bid solicitation.
11.3.1.8 All bids will be opened by a program supervisor (e.g. Housing Rehabilitation Supervisor or Senior Community Development Program Specialist) and recorded by a program specialist (e.g. Housing Financial Specialist or Housing Rehab Specialist).
11.3.1.9 The HRS will summarize the lowest responsible bid results on the “Work Specification” document provided to the homeowner.
11.3.2 The applicant will be required to accept the lowest responsible bid with certain exceptions. Rejection of the low bidder without cause will result in cancellation of the project.
11.3.2.1 If on the basis of references, or the inability to start work within a reasonable timeframe, the property owner request to reject the low bidder, he/she must do so in writing. Upon confirmation of the reason for rejection by City staff, the low bidder will be rejected, and the next lowest bidder will be considered.
11.3.3 Upon selection of lowest responsible bidder, the HRS will prepare the respective documents for contractor, homeowner signatures, and City signatures (e.g. Housing Rehabilitation Contract and Grant/Loan Documents).
11.3.4 Once contracts are executed, City Staff will record loan documents with the Stanislaus County Recorder’s Office.
11.3.5 Upon receipt of recorded documents, the HFS will:
11.3.5.1 Issue a Notice to Proceed to the contractor. The contractor will have seven (5) calendar days to begin work from the date of issuance.
11.3.5.2 Route contracts for encumbrance the City’s financial system.
12.0 EMERGENCY REPAIRS PROCEDURE
12.1.1 Per MAXIMUM AMOUNT OF PROGRAM ASSISTANCE Section, emergency repairs of up to $5,0005,000 may be authorized by the Director of Community and Economic Development if it poses an “extreme health and safety related emergency in line with Modesto Municipal Code 8-3.301.
12.1.2 From time to time, City of Modesto residents will contact the city with repair requests that constitute an immediate threat to their health and safety. Such cases will be treated as Emergency repairs; e.g. broken sewer line, broken water line, leaking roof (during rainy season), broken HVAC system (during summer/winter), and unsafe electrical and or plumbing conditions.
12.1.3 These cases will be given priority over other non-emergency projects.
12.1.4 Upon homeowner contact with the City’s Housing Division, the HFS will conduct a prescreening of the prospect applicant and collect pertinent emergency case facts. #6..
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13 12.1.5 After pre-screening, the HFS will collect the application and eligibility documentation from the homeowner; the HFS will inform the Housing Rehab Specialist immediately after collecting the pertinent facts.
12.1.6 The HFS shall determine program eligibility within three (3) business days of collecting a completed application packet.
12.1.7 Upon determining eligibility, the Housing Rehab Specialist shall communicate with the homeowner and will schedule and conduct a property inspection and determine/prepare a detailed scope of work and independent cost estimate within three (3) business days of eligibility determination, depending on the severity of the emergency.
12.1.8 Upon completion of the Emergency Repair Scope of Work, the HRS will submit an “Emergency Repair Request” packet which includes the Scope of Work and related case facts to the Housing Rehabilitation Supervisor for review and approval to proceed with procurement for the Emergency Project.
12.1.9 Upon approval by the Housing Rehabilitation Supervisor, HRS shall obtain a minimum of three (3) informal bids and shall be awarded to the lowest responsible bidder.
12.1.9.1 Bid documentation will be kept in the file record.
12.1.10 Upon contractor selection, the HRS shall prepare the Advanced Payment Agreement and all required loan documentation for homeowner, contractor, and Director of Community and Economic Development execution within three (3) business days of contractor selection. The Notice to Proceed will be issued upon contract execution by all parties. The rehabilitation contract shall specify the number of days for project completion.
12.1.10.1 A homeowner cannot enter into an Advanced Payment Agreement, unless the homeowner meets the homeowner eligibility guidelines as described in Section 4.0 – Homeowner Eligibility.
12.1.11 Routine Progress inspections shall be conducted as specified in PROGRESS INSPECTIONS Section; frequency of progress inspections may be increased as needed for emergency repairs.
12.1.12 All emergency rehabilitation projects will be presented to the Housing Rehabilitation Loan Committee (HRLC) at the next available HRLC meeting for formal approval.
13.0 CONTRACTOR ELIGIBILITY
13.1 All prospective Contractors must submit or must have submitted, within the past 3 years, a Contractor Application to the City which will allow the City to collect all pertinent information to determine contractor eligibility (i.e. DUNS number, Tax ID, etc.).
13.1.1 Contractor failure to submit a Contractor Application may result in a “non-responsive” bid and disqualify the contractor from consideration.
13.2 Upon Receipt of bids from prospective contractors, the Housing Rehabilitation Specialist shall determine contractor eligibility by conducting the following:
13.2.1 Verify that the City has a Contractor Application on file for each prospective contractor; #6..
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14 13.2.2 If the City does not have a Contractor Application on file for the prospective contractor, the Housing Financial Specialist will make arrangements to ensure the prospective Contractor completes and submits a Contractor Application in a timely manner.
13.3 Upon confirmation that the City has a complete Contractor Application on file, the Housing Rehabilitation Specialist shall conduct the following searches for each prospective contractor:
13.3.1 Debarred/Suspended Search
13.3.1.1 It is the City of Modesto’s policy not to conduct business with contractors who are excluded/debarred from conducting business with any federal agency.
13.3.1.2 The Housing Rehabilitation Specialist shall ensure that the prospective Contractor is not excluded/debarred from conducting business with any federal agency by conducting a search on the federal System for Award Management website at www.sam.gov.
13.3.1.3 To comply with this requirement, Contractors must provide their UEI number on the Contractor Application.
13.3.1.4 Prospective contractors who do not have a UEI number at time of bid submittal, must request one by accessing the following website:
http://fedgov.dnb.com/webform/displayHomePage.do
13.3.1.5 Upon conducting the Sam.gov search, the Housing Rehabilitation Specialist shall print the search results and place a copy in the project file.
13.3.2 California State License Board (CSLB) Search:
13.3.2.1 It is the City of Modesto’s policy not to conduct business with Contractors who do not hold an active CSLB license.
13.3.2.2 The Housing Rehabilitation Specialist shall verify a prospective Contractor holds an active CSLB license by conducting a search on the CSLB website at
https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.as px.
13.3.2.3 The CSLB license must be appropriate for the type of rehabilitation work to be conducted (i.e. General Contractor, Electrical, Carpenter, etc.)
13.3.2.4 Upon conducting the CSLB search, the Housing Financial Specialist shall print the search results and place a copy in the project file.
13.3.3 Better Business Bureau (BBB) Search
13.3.3.1 It is the City of Modesto’s policy not to conduct business with contractors who have negative letter rating score (D+ through F) with the BBB.
13.3.3.2 The Housing Financial Specialist shall verify a prospective Contractor has a positive letter rating score (A+ through C-) with the BBB.
13.3.3.3 Upon conducting the BBB search, the Housing Financial Specialist shall print the search results and place a copy in the project file.
14.0 COST REASONABLENESS AND SCOPE OF WORK:
14.1 As a CDBG recipient, the City of Modesto is held accountable for all funds, property and assets of the CDBG program. The City of Modesto must maintain a financial accounting system for grants that meets the CDBG regulations, 24 CFR Part 84 and OMB Circulars A-87 and A-133.
This includes requirements pertaining to financial management systems and records, allowable costs and audits.
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15 14.1.1 The City of Modesto is required to ensure that CDBG funds are spent only on reasonable and necessary costs associated with approved grant activities and must have a procedure for determining the reasonableness, allowability and allocability of costs.
14.1.1.1 For all assisted projects, the procedure for determining reasonableness will include the preparation of a detailed scope of work and an independent cost estimate.
14.1.1.1.1 A detailed Scope of Work will identify project milestones, reports, deliverables, and end products that are expected to be provided by the performing party. The Scope of Work will also include a timeline for all deliverables.
14.1.1.1.2 An independent cost estimate will be established utilizing local market data and published cost guidelines.
14.1.1.1.3 The project manager and supervisor will work with the appropriate parties to develop the independent cost estimate to ensure the cost estimate is reasonable based on local market data.
14.2 To comply with cost reasonableness requirements, the City of Modesto will review all requests for payments to ensure that costs are allowable under regulations, approved in the CDBG grant application, allocated to the correct program activity and are reasonable.
14.3 A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
14.3.1 In determining reasonableness of a given cost, consideration shall be given to whether the cost is of a type generally recognized as ordinary and necessary to address the housing condition being considered for repair.
14.3.2 A cost analysis of the scope of work items shall be made and documented in the project file. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability, and allowability.
14.3.3 Cost analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts.
14.3.4 All change orders will be subject to a cost reasonableness evaluation by the project manager and approval by the HUD Supervisor.
14.4 Cost reasonableness shall be determined by comparing the bids received with the cost estimate prepared by the Housing Rehabilitation Specialist.
14.5 Bids received must be not less than or greater than 15% of the Housing Rehabilitation Specialist’s cost estimate.
14.6 An explanation must be provided to the HRLC for any bid selected that exceeds 15% of the estimate.
14.7 Comparable estimates may also be considered, when optimal, for utilization of subcontractors instead of general contractors for work to be performed.
14.8 The Housing Rehabilitation Specialist will work to manage rehabilitation costs through the most efficient and economically feasible project contracting model.
15.0 ENVIRONMENTAL REVIEW:
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16 15.1 All assisted properties shall be subject to environmental review as required by the funding source(s). No funds shall be committed and/or released until all environmental reviews have been conducted to the satisfaction of City of Modesto. Refer to HUD Policies and Procedures Manual, Section 14 – Environmental Review Plan – for environmental review process.
16.0 HOUSING REHABILITATION LOAN COMMITTEE (HRLC) APPROVAL:
16.1 All Housing Rehabilitation Program activities shall be subject to majority vote approval by the City of Modesto Housing Rehabilitation Loan Committee (HRLC). The HRLC shall be comprised of the following voting members (all terms are four (4) years in length):
16.1.1One Councilmember (appointed by the Mayor)
16.1.2One financial institution representative.
16.1.3One service provider representative.
16.1.4One general contractor (active or retired).
16.1.5One Housing Authority of the County of Stanislaus (HACS) representative.
16.1.6One Citizen-at-Large.
16.1.7One Citizen’s Housing and Community Development Committee Representative.
16.2 The City of Modesto Community Development Manager may appoint a substitute voting member using alternative criteria if existing circumstances do not allow for a Committee make-up as specified above and time constraints warrant a substitution.
16.3 All actions of the HRLC shall be reflected in meeting minutes to be prepared by staff of the City of Modesto Community Development Division.
17.0 WRITTEN AGREEMENTS:
17.1 A written agreement must be entered into between the City and all homeowners receiving assistance under this program. The written agreement forms the basis for the contractual obligation between the parties to fund and implement the activity or program. The written agreement will identify responsibilities attributable to each party, and shall outline in exact measure the scope of services to be provided, methods of accountability, and a schedule for payment.
18.0 PROJECT CONTINGENCIES
18.1 All rehabilitation activities approved by the HRLC shall be contingent on meeting the following requirements:
18.1.1 Execution of a construction contract and Notice to Proceed;
18.1.2 Construction Schedule mutually agreed to by the Homeowner, Contractor, and Housing Rehabilitation Specialist;
18.1.3 On-site monitoring and inspections by the Housing Rehabilitation Specialist to verify scope of work, materials, and construction schedule conform to contract requirements;
18.1.4 Written final inspection and approval documentation by the Housing Rehabilitation Specialist;
18.1.5 Recorded Notice of Completion, signed by the homeowner, following final inspection and approval by the Housing Rehabilitation Specialist; .
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17 18.2 Written change orders, subject to the criteria listed below, shall be required for any changes in the work write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items:
18.2.1 Contractor must notify Housing Rehabilitation Specialist and homeowner if Contractor deems a change order for work is necessary; Contractor’s Change Order request shall be submitted in writing and list the change order items with dollar value for each change;
18.2.2 Housing Rehabilitation Specialist shall review and determine if Change Order requests and costs are reasonable and work with Contractor to modify Change Order items if necessary;
18.2.3 Upon reviewing and approving Change Order requests, Housing Rehabilitation Specialist must prepare a City of Modesto Change Order Request Approval form and submit to Housing Rehabilitation Supervisor for final approval signature;
18.2.4 Upon final approval by the Housing Rehabilitation Supervisor, Change Order shall be signed by Homeowner and Contractor;
18.2.5 The combined total of all approved Change Orders shall not exceed the approved financing and contingences;
18.2.6 Homeowners cannot request (non-health and safety) change orders in excess of the approved financing (not including contingency), unless HRLC approves the use of additional funds (Attachment A).
18.3 The homeowner shall maintain Homeowner’s insurance on the property for the duration of the program loan(s). This insurance must be adequate to cover all encumbrances on the property.
The insurer must identify City of Modesto as Additional Insured for the amount of the program loans. A copy of the homeowner’s insurance policy shall be provided to City of Modesto annually.
18.4 Homes located within a 100-year flood zone will be considered on a case-by-case basis. If approved for assistance, the Borrower is required to maintain flood insurance during the term of the assistance and in an amount adequate to secure the program loan and all other encumbrances. The insurer must identify City of Modesto as Loss Payee for the amount of the program loans. A copy of the homeowner’s flood insurance policy shall be provided to City of Modesto annually.
19.0 CONTRACTOR LIST
19.1 The Housing Rehabilitation Specialist shall maintain a Contractor List that includes contractors that have participated in the Homeowner Rehabilitation Program. These contractors must have been vetted through the City’s Contractor Eligibility Process as outlined in CONTRACOR ELIGIBILITY SECTION. The list shall contain the names, addresses, license numbers, CSLB license expiration dates, UEI Number, insurance information, and business license numbers, expiration dates, insurance information, and business license information for contractors who have been formally approved for participation in the housing rehabilitation programs.
19.1.1 Information on the Contractors List will be updated on an annual basis, or more frequently, if deemed necessary.
19.1.2 The Contractors List will be available to the public, upon request. If the public requests a copy of the Contractors List, a disclaimer must appear on the top of the list as referenced in the desk manual.
19.2 Any person, partnership, or corporation with a current California General Contractor’s License is eligible to have bids considered on a housing rehabilitation project. #6..
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18 19.2.1 In accordance with 24 CFR 85.36(c)(4) the City shall encourage qualified contractor participation to ensure that enough bids are received for a successful and adequate solicitation. Staff shall engage in continuous contractor outreach and engagement in order to provide for the maximum open and free competition that will not preclude other potential bidders from qualifying during the bid solicitation period.
20.0 CONTRACTOR DISQUALIFICATION/REMOVAL FROM CONTRACTOR LIST
20.1 Contractor failure to comply with program requirements and/or local, state, and federal laws may be grounds for disqualification from participation in this program.
20.1.1.1 Breach of the terms of a program contract by a willful or material failure to perform in accordance with the terms thereof.
20.1.1.2 Substandard performance on any public contract, including, without limitation:
20.1.1.2.1 A material breach thereof;
20.1.1.2.1.1 A failure to complete work required thereunder in a timely manner or within the contract price when such failure is attributable to the negligent or wrongful actions or inactions of such contractor or such contractor’s subcontractors or suppliers;
20.1.1.2.2 Substandard quality of work; or
20.1.1.2.2.1 Any negligent or wrongful failure to cooperate with the contracting agency during performance of the public contract.
20.1.2 Any other grounds that the Community Development Manager determines would impair the ability of the Contractor to perform a public contract or any part thereof.
20.1.3 In any case, the Community Development Manager may have the discretion to consider the facts and circumstances of a violation, and may impose a different disqualification period and/or condition(s) to satisfy the cure of the violation and allow participation in future bid processes.
20.2 Written Complaint Procedure:
20.2.1 In the case a written complaint is submitted to staff regarding a contractor who is on the contractor list; the contractor will be notified in writing of the complaint.
20.2.2 Housing Rehabilitation Supervisor and staff will make reasonable efforts to resolve the complaint;
20.2.3 Written complaint will be kept on file for the duration of the time the contractor remains on the contractor list and will be available as part of public record.
20.3 Scope of Disqualification: Disqualification of a contractor under this Section constitutes disqualification of that Contractor from submitting bids or proposals to the City for the purpose of entering into or in any manner participating in any City contract, or any part thereof, and shall apply to all individuals, divisions, subsidiaries, affiliates and parent corporations of that Contractor unless the decision to qualify is limited by its terms to one or more specifically identified individuals, divisions, subsidiaries, affiliates, parents or other organizational elements.
20.4 Disqualification Procedures: The following procedures will be taken by the City when disqualifying a Contractor from program participation:
20.4.1 City will send a written notice to the Contractor informing him/her that a disqualification is being considered;
20.4.2 The written notice will include the grounds for the proposed disqualification including the specific conduct or action(s) upon which the proposed disqualification is based; #6..
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19 20.4.3 The written notice will include the intended period of disqualification.
20.5 Hearing Request:
20.5.1 A Hearing Officer will be appointed by the Director of Community & Economic Development
20.5.2 Within fifteen (15) calendar days after mailing of the notice of the proposed disqualification, the Contractor may submit a written request for a hearing on the proposed disqualification.
20.5.2.1 Such written request shall specify the name and address of the person to which all subsequent notices and communications should be mailed.
20.5.2.2 Failure of the Contractor to submit a written request for a hearing within the time provided by this subsection, or failure of Contractor to appear at the requested hearing, shall be deemed to be a waiver by Contractor of Contractor’s right to request a hearing on the proposed disqualification and the Hearing Officer’s decision shall be final.
20.5.3 The hearing will be held within thirty 30 days of the request and the Hearing Officer’s decision shall be final.
21.0 PROGRESS INSPECTIONS
21.1 The Housing Rehabilitation Specialist shall conduct routine progress inspections on all housing rehabilitation projects to verify the Contractor is adhering to the agreed upon Contract Schedule.
21.1.1 Routine progress inspections shall mean onsite inspections once weekly, unless project timelines call for more frequent inspections.
21.2 The Housing Rehabilitation Specialist shall track each progress inspection by completing a Progress Inspection Report, documenting the results and date of the inspection, and place the completed Progress Inspection Report in the project file.
21.3 If applicable, the Housing Rehabilitation Specialist shall include the reasons for any project delays within the Progress Inspection Report and describe a revised project schedule agreed upon by the Contractor, Homeowner, and Housing Rehabilitation Specialist.
21.4 Revised project schedules shall be signed by the Contractor, Homeowner and Housing Rehabilitation Specialist.
21.5 Further unjustified project delays by the Contractor resulting in non-compliance with the agreed upon project schedule shall result in a credit to the Homeowner until the project has been substantially completed or terminated as defined within the section entitled “Time is of the Essence in the Performance of this Agreement” in the Rehabilitation Program Contract.
21.6 Contractor progress payment requests shall reflect the percentage of the project completed through the time period for which payment is requested. The project completion percentage may be indicated on the internal payment request form.
22.0 CONTRACTOR COMPENSATION
22.1 Contractor progress payments shall be subject to Housing Rehabilitation Specialist verification, acknowledgement and certification that the work being invoiced for is reflective of the work verified through the Housing Rehabilitation Specialist’s progress inspection(s) and through the time period indicated on the payment request.
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20 22.1.1 All contractor progress payments must be accompanied by the “Invoice Checklist” including all required items listed on the invoice checklist for an invoice to be processed by the City’s Finance Department.
22.1.2 Progress payment to contractors and reimbursement from HUD will occur only after the Housing Rehab Specialist has verified that the work for which reimbursement is being issued, has been completed.
22.1.2.1 Verification of work completion will take place by conducting onsite progress inspections and including an inspection report reflecting a “pass”.
22.2 Contractor payment requests will only be processed if signed by the Contractor, Homeowner, Housing Rehabilitation Specialist, and Housing Rehabilitation Specialist Supervisor. Invoices must be detailed enough to determine payment eligibility, along with accompanying documentation. All efforts will be made to reimburse qualified invoices within a 30-day time frame.
22.3 If the Homeowner is not satisfied with the completed work, or the Contractor has not completed the work in accordance with the Rehabilitation Program Contract, Community Development Division staff will meet with the Homeowner and Contractor to resolve the dispute.
22.4 If such informal resolution is unsuccessful, the Homeowner and the Contractor must follow the arbitration steps and tribunal procedures as outlined in the Rehabilitation Program Contract.
23.0 MONITORING
23.1 The Housing Rehabilitation Staff will mail out annual self-re-certification forms throughout the duration of the affordability term to verify the units remain owner occupied.
23.1.1 Participants will be sent two requests to return re-certification documentation prior to triggering repayment of grant/loan;
23.1.1.1 A pay-off demand will be sent out for any non-compliance.
24.0 LEAD BASED PAINT OPERATING PROCEDURES FOR UNITS BUILT PRIOR TO 1978
24.1 All program applicants shall receive notification of Lead-Based Painting hazards as follows:
24.1.1 The City will provide a Lead Hazard Information Pamphlet “Protect Your Family from Lead in Your Home” to all program applicants.
24.2 Homeowner Rehabilitation Federal Assistance Up to $5,000:
24.2.1 Lead Based Paint Presumption: Paint testing will not be conducted for housing rehabilitation projects not exceeding $5,000. The City will presume the presence of lead-based paint for all housing projects assisted with an amount not exceeding $5,000. If the rehabilitation project will disturb painted surfaces all lead based paint mitigation activities, other than the actual testing, will be implemented as prescribed by HUD.
24.2.2 If the housing unit is built prior to 1978, the homeowner will be provided a “Notice that Lead-Based Paint or Lead Based Paint Hazards Are Presumed to be Present” to occupants within 5 business days of making such presumption. #6..
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21 24.2.3 Visual Inspection: A visual inspection shall be made by the Rehabilitation Specialist or other staff assigned to make the inspection, to determine if the project will disturb any painted areas. If the project will not disturb any painted areas, the case file shall be so documented and the property owner or tenant advised in writing. No additional compliance steps with lead-based paint regulations are required.
24.2.4 Repair Work: If the project will disturb paint, then the City will require the rehabilitation contractor to be certified as a lead-based paint abatement supervisor or as a certified lead safe worker; or the rehabilitation contractor will secure a certified lead base paint abatement supervisor to monitor safe work practices in those areas where painted surfaces will be disturbed by the rehabilitation work. Safety precautions for occupant protection ((§35.1345), work site preparation and cleanup activities and prohibited methods of removal (§35.140) of lead base paint materials must be followed.
24.2.5 De Minimis Levels: Safe work practices are not required for projects which are determined to disturb surfaces below de minimis levels (§35.1350). The case file shall be documented and a Notice of Completion and Notice of Clearance is not required.
24.2.6 Notice of Completion and Notice of Clearance: A clearance examination of the work site (the area in which the rehabilitation construction was performed) is the responsibility of the rehabilitation contractor and must be performed by a certified lead-based paint inspector/assessor. Once work is completed, the City will provide the owner a report entitled “Summary Notice of Completion Lead Base Paint Hazard Reduction Activity” within fifteen (15) days of the completion date (the date on which clearance is achieved). A copy shall be placed in the project file as documentation.
24.3 Homeowner Rehabilitation Federal Assistance $5,001-$25,000
24.3.1 Information Pamphlet: The City shall provide the pamphlet “Protect Your Family from Lead in Your Home” to the applicant.
24.3.2 De Minimis Levels: Safe work practices are not required for projects which are determined to disturb surfaces below de minimis levels (§35.1350). The case file shall be documented and a Notice of Completion and Notice of Clearance is not required.
24.3.3 Paint Testing or Presumption: For projects of this funding level ($5,001-$25,000), presumption of the presence of lead base paint shall be made.
24.3.4 Noticing: The City shall provide the occupants with a “Summary Notice of Lead Based Paint Inspection” after such inspection is made by a certified lead base paint inspector/assessor in accordance with §35.1320(a).
24.3.5 Risk Assessment: The City shall order test samples of those painted surfaces to be disturbed by the rehabilitation construction or, upon visual inspection by the rehabilitation specialist, on any painted surfaces that are deteriorated. If lead is found in the test samples, a risk assessment shall be ordered by the City and conducted by a certified lead inspector/assessor in accordance with §35.1320(b) before #6..
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22 rehabilitation construction begins. The lead base paint inspector/assessor will provide a copy of the results to the City who will notify the owners of the property with the “Summary Notice of Lead-Based Risk Assessment.”
24.3.6 Interim Controls: If the risk assessment indicates the presence of lead base paint then lead hazard mitigation activities, including paint standards, interim controls and paint stabilization must be performed on all identified lead paint hazards in accordance with §35.1330. Safety precautions for occupant protection (§35.1345), work site preparation and cleanup activities and prohibited methods of removal (§35.140) of lead base paint materials must be followed.
24.3.6.1 A person performing paint standards, interim controls or stabilization must be trained in accordance with 29 CFR 1926.59 and be a certified lead base paint safe worker or certified lead base paint abatement supervisor.
24.3.7 Relocation: As stated in section §35.1345, temporary relocation is required unless: (1) the work will not disturb lead based paint or lead based paint hazards; (2) only exterior work is being conducted and openings to the interior are closed during the work and lead-hazard-free entry to the dwelling is provided; (3) the interior work will be completed in 8 hours, the work sites are contained to prevent dust release into other areas, and no other health or safety hazards are created; or (4) interior work will be completed in 5 consecutive days, work sites are contained, no other health or safety hazards are created, work sites and areas 10 feet from the containment are cleaned at the end of each work day, and occupants have safe access to sleeping, kitchen and bathroom facilities.
24.3.7.1 Safe access to sleeping, kitchen and bathroom facilities can be provided in another convenient location outside of the work site, thereby avoiding unnecessary relocation of residents.
24.3.8 Clearance: Clearance shall be the responsibility of the rehabilitation contractor who will order the clearance inspection from a certified lead base paint inspector/assessor and in accordance with §35.1340(b).
24.3.9 Notice of Completion and Notice of Clearance: Once work is completed and after a clearance examination of the work site is performed by a certified lead paint inspector/assessor, a copy shall be placed in the project file as documentation. The City will provide a “Summary Notice of Completion of Lead Based Paint Hazard Reduction Activity” to the owner within 5 business days from project completion date.
The lead base paint inspector/assessor will provide a “Lead Hazard Evaluation Report” (Form DHS 8552) to the City, the owner and to the Department of Health Services.
24.4 Homeowner Rehabilitation Federal Assistance greater than $25,000 (Identify and Eliminate lead hazards)
24.4.1 Information Pamphlet: The City shall provide the pamphlet “Protect Your Family From Lead In Your Home” to the applicant.
24.4.2 If the amount of assistance is more than $25,000, the following is required:
24.4.2.1 Paint testing as outlined in Paint testing or Presumption sub-section above;
24.4.2.2 Abatement of all lead-based paint hazards identified or produced;
24.4.2.3 Use of interim controls on exterior surfaces not disrupted by rehabilitation; and all applicable lead-based paint notices.
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23 24.4.3 A certified Inspector/Assessor shall perform all risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.
25.0 LOAN MODIFICATIONS
25.1 Loan Modification requests may be considered by the City of Modesto only under the following circumstances:
25.1.1 For projects claiming contractor work to be substandard, project completion must have been within the past 5 years;
25.1.2 If making payments on City Loan and Borrower is facing a financial hardship, modification may be considered to prevent borrower from defaulting on primary or City loan which may trigger foreclosure
25.2 The following information will be collected from the borrower to consider a modification:
25.2.1 Housing Quality Standards Inspection
25.2.2 Financial hardship documentation, if applicable
25.2.3 Borrower must meet current program requirements
25.2.3.1 Income eligibility guidelines (income must not exceed 80% of the Area Median Income);
25.2.3.2 Front and Back End debt to income requirements
25.2.4 Record of any payments made toward the loan
25.2.5 Letter from the borrower which outlines concerns and reason for modification
25.3 If Staff determines the borrower meets the requirements for a loan modification, the request will be presented to the Homeowner Rehabilitation Loan Committee for consideration.
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 11, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Homeless Prevention and Rapid Rehousing Program for Households Experiencing Homelessness or Imminent Risk of Homelessness CONTACT: Edgar Garcia, Community Development Manager,
[email protected], 209-577-5211
DESCRIPTION:
Consider approving a Modesto Forward Grant Agreement with Community Housing and Shelter Services to administer a Homeless Prevention and Rapid Rehousing Program in the amount not to exceed $525,000 to support households experiencing homelessness or at imminent risk of experiencing homelessness in the City of Modesto. (Funding Source: American Rescue Plan Act 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 Pandemic Recovery Strategy, Modesto Forward strategy, and the associated spending plan for the American Rescue Plan Act (ARPA) funds was approved by Resolution 2021-194 on May 25, 2021, and spending plan reallocated funds were approved by Resolution 2023-251 on June 6, 2023.
The key allocations from ARPA made available directly to the community from the federal government include, “Supporting Hardest Hit Communities and Families” to support investments in housing and neighborhoods. This can include services to address individuals experiencing homelessness, affordable housing, development, housing vouchers, and residential counseling and housing navigation assistance to facilitate moves to neighborhoods with high economic opportunity.
The 2024 Stanislaus Point In Time (PIT) count identified 2,052 individuals experiencing homelessness, of which 1,622 of those individuals reported experiencing homelessness within the City of Modesto. A total of 23% of those counted reported to have become homeless #7..
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City Council, August 13, 2024
Homeless Prevention and Rapid Rehousing Program for Households Experiencing Homelessness or at Imminent Risk of Homelessness
because they were unable to pay rent or mortgage. The rising number of individuals experiencing homelessness prompted the City to think critically about the needs of the homeless community and the gaps in the current systems. The lack of effective or restrictive programs can lead to increased rates of homelessness, housing instability, and impacts emergency shelters and services.
DISCUSSION:
Through the Camp2Home initiative the City has created a comprehensive response to homelessness that offers individuals a path from homelessness to self-sufficiency. The Camp2Home program aims at tackling homelessness on five key fronts: street outreach, shelter, job training, employment, and permanent housing.
To help mitigate the rising number of individuals who are falling into homelessness, provisions in helping individuals remain housed or quickly placing individuals into housing coupled with case management is critical. To address this need, City staff recommends a partnership with Community Housing and Shelter Services (CHSS) to administer a homeless prevention and rapid rehousing program utilizing ARPA funding to support the permanent housing component of Camp2Home. CHSS has been the community’s lead agency in providing rental and homeless prevention assistance to individuals experiencing homelessness or at risk of homelessness in the community for over forty years. The City has partnered with CHSS to provide rental assistance and homeless prevention services for over 20 years. CHSS has extensive experience in supportive services with a thorough understanding of eligibility and funding requirements.
This program administered through CHSS will have two eligible activities, homeless prevention, and rapid rehousing. Homeless prevention services will include interventions to assist individuals and families at imminent risk of experiencing homelessness with housing stabilization case management and short-term rental and utility assistance necessary to prevent the household from falling into homelessness. Rapid rehousing helps individuals and families experiencing homelessness to quickly exit homelessness by obtaining safe and secure permanent housing by providing short-term rental assistance.
Program Eligibility Criteria:
Household lacks financial resources and support networks to obtain or sustain permanent housing.
Households are homeless or will imminently lose their primary nighttime residence, without program assistance.
Households must provide a rental/lease agreement.
Households requesting rental arrears must provide a written notice of intent to terminate tenancy from a landlord. (Includes a 3-day notice to pay rent or quit). Household must provide written verifiable documentation of a financial hardship. Household must not exceed 80% of the median income as defined by HUD. Households are not receiving duplicative services from another provider for homelessness prevention.
Households will only be eligible for services once per funding cycle. The rental unit meets habitability standards as defined by HUD. The rental unit meets rent reasonableness and/or fair market rent as determined by HUD. The rental unit is within the city limits.
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City Council, August 13, 2024
Homeless Prevention and Rapid Rehousing Program for Households Experiencing Homelessness or at Imminent Risk of Homelessness
Program Eligible Activities:
Short-term rental/utility assistance up to $4,933 per household (not to exceed 3 months). Utility arrear assistance only in conjunction with rental assistance (not to exceed 3 months). Landlord engagement and mitigation to assist in housing stabilization. Housing stabilization case management throughout financial assistance. After care case management up to one month after financial assistance concludes.
The program will use the Homeless Management Information System (HMIS) to track key performance indicators such as numbers served and participant outcomes to measure the program’s effectiveness and impact.
Project Budget:
City Staff proposes to grant CHSS $525,000 in ARPA funds on a cost reimbursement basis.
The program proposes to serve 90 households during the grant term.
Estimated Expense Estimated Costs
Direct Services
Housing Stabilization Case Management $52,500
Short-Term Rental & Utility Assistance
(For Rapid Rehousing and Homeless Prevention) $443,970
Total Direct Assistance Costs $496,470
Administration
Administration and Operations
(Office Space, Supplies, Professional Fees) $28,530
Total Administration Costs $28,530
Total Estimated Project Budget $525,000
Addressing the lack of housing assistance programs as well as the restrictions of existing programs is crucial to promoting housing stability in the City. By taking proactive steps to expand the rapid rehousing and homeless prevention efforts, a meaningful impact can be achieved for individuals and families experiencing and at risk of homelessness. On April 11, 2024, the Citizens Housing and Community Development Committee met and approved a homeless prevention program in the amount not to exceed $360,000. However, after assessing the volume of clients who can be supported and what activities are needed, an increase of $165,000 was recommended to increase support to 90 households for a program budget total not to exceed $525,000 as well as adding the component of rapid rehousing to the scope.
FISCAL IMPACT:
This proposed agreement is part of the Pandemic Recovery Strategy for the use of American Rescue Plan funds and will not exceed the budget of $525,000. The funding expenditure deadline for this agreement will be December 31, 2025. There will be no impact on the General Fund.
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City Council, August 13, 2024
Homeless Prevention and Rapid Rehousing Program for Households Experiencing Homelessness or at Imminent Risk of Homelessness
COMMITTEE RECOMENDATION:
On April 11, 2024, the Citizens Housing and Community Development Committee met and approved to forward this item to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving a Modesto Forward Grant Agreement with Community Housing and Shelter Services to administer a Homeless Prevention and Rapid Rehousing Program in the amount not to exceed $525,000 to support households experiencing homelessness or at imminent risk of experiencing homelessness in the City of Modesto and authorizing the City Manager, or his designee, to execute the Agreement.
Approved by:
Jessica Hill, Director of Community
and Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Agreement with Community Housing and Shelter Services
3. Bid Waiver Approval Form
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08/13/2024/CED/EGarcia/Item X 1 2024-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION APPROVING A MODESTO FORWARD GRANT AGREEMENT
WITH COMMUNITY HOUSING AND SHELTER SERVICES TO ADMINISTER
A HOMELESS PREVENTION PROGRAM IN THE AMOUNT NOT TO
EXCEED $525,000 TO SUPPORT HOUSEHOLDS EXPERIENCING
HOMELESSNESS OR AT IMMINENT RISK OF EXPERIENCING
HOMELESSNESS IN THE CITY OF MODESTO AND AUTHORIZING THE
CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT WHEREAS, in April of 2021, President Biden signed into law the American Rescue Plan Act a $1.9 trillion emergency relief measure intended to provide relief to address the impact of COVID-19, and
WHEREAS, this legislation included $45,897,056 available to the City of Modesto to help address the local impact of COVID-19; and WHEREAS, the funding was made available by the United States Treasury directly to the City in two phases: 50 percent was made available in May 2021, and the remaining 50 percent was made available in May 2022, and WHERESAS, the deadline to obligate funds is December 31, 2024, with an expenditure deadline of December 31, 2025, and
WHEREAS, the Pandemic Recovery Strategy, Modesto Forward strategy, and the associated spending plan for the American Rescue Plan funds was approved by Resolution 2021-194 on May 25, 2021, and
WHEREAS, the Pandemic Recovery Strategy, Modesto Forward strategy, and the associated spending plan for the American Rescue Plan fund reallocation was approved by Resolution 2023-251 on June 6, 2023, and
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08/13/2024/CED/EGarcia/Item X 2 2024-XX
WHEREAS, the rising number of individuals experiencing homelessness prompted the City to think critically about the needs of the homeless community and the gaps in the current systems, and
WHEREAS, through the Camp2Home initiative the City created a comprehensive response to homelessness that offers individuals a path from homelessness to selfsufficiency, and WHEREAS, the Camp2Home program aims at tackling homelessness on five key fronts: street outreach, shelter, job training, employment, and permanent housing, and WHEREAS, City staff recommends a partnership with Community Housing and Shelter Services (CHSS) to administer a homeless prevention program utilizing American Rescue Plan Act funding to support the permanent housing component of Camp2Home, and
WHEREAS, the homeless prevention program will provide interventions to assist individuals experiencing homelessness or in imminent risk of experiencing homelessness including housing stabilization case management and short-term rental and utility assistance necessary to prevent an individual or family from moving into an emergency shelter or place not meant for human habitation, and
WHEREAS, CHSS will utilize ARPA funds to provide interventions to assist individuals experiencing homelessness or in imminent risk of experiencing homelessness including housing stabilization case management and short-term rental and utility assistance necessary to prevent an individual or family from moving into an emergency shelter or place not meant for human habitation, and
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08/13/2024/CED/EGarcia/Item X 3 2024-XX
WHEREAS, the cost of this agreement is not to exceed $525,000 using American Rescue Plan Act allocated to homeless support programs.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an agreement in an amount not to exceed $525,000 to Community Housing and Shelter Services to assist households who are experiencing homelessness or in imminent risk of becoming homeless.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute agreements in a form approved by the City Attorney.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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Funding Contribution Agreement – Community Housing and Shelter Services
CITY OF MODESTO PANDEMIC RECOVERY STRATEGY - MODESTO FORWARD
GRANT AGREEMENT
This Modesto Forward Grant Agreement (“Agreement”) is entered into in the City of Modesto, State of California, this ____ day of __________, 20____ (“Effective Date”) by and between the City of Modesto, a California municipal corporation (“City”), and Community Housing and Shelter Services, a California nonprofit organization (“Recipient”). The City and Community Housing and Shelter Services shall be collectively referred to hereinafter as the “Parties”.
This Agreement is made with regard to the following recitals:
WHEREAS, the City received an allotment of funds from the United States Department of Treasury through the Coronavirus Local Fiscal Recovery Fund established by the American Rescue Plan Act (“ARPA”); and
WHEREAS, on June 6, 2023, by Resolution No. 2023-251, Council approved the reallocation of Pandemic Recovery Strategy – Modesto Forward, hereinafter referred to as “Modesto Forward”, to support local recovery from the pandemic; and WHEREAS, in alignment with the City’s 5-Year Strategic Plan, Modesto Forward includes three post pandemic funding initiatives to help the community exit the pandemic period and focused on Economic Vitality, Governance and Service Delivery, and Quality of Life; and WHEREAS, Economic Vitality initiatives are intended to improve the economic vitality of the community; Governance and Service Delivery initiatives are intended to improve the organization and service delivery for residents; and Quality of Life initiatives are intended to improve the quality of life for residents; and
WHEREAS, Modesto Forward includes a comprehensive spending plan, which includes ARPA funding, to programs and services to unhoused persons; and WHEREAS, on ______________, the City Council adopted Resolution No. ___________, awarding a grant of Five Hundred Twenty-Five Thousand Dollars ($525,000) to Recipient for the purposes set out in Exhibit A, subject to the terms and conditions set out in this agreement.
NOW THEREFORE, the City and Recipient agree as follows:
1. Term
The term of this Agreement (the “Term”) shall commence upon the effective date and shall terminate upon the Recipient’s completion of all requirements of this Agreement or no later than December 31, 2025.
2. Grant Award
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Funding Contribution Agreement – Community Housing and Shelter Services A. The City shall provide Recipient with a grant of City of Five Hundred Twenty-Five Thousand ($525,000) (the “Grant”) for the purposes and activities further specified in Exhibit A, attached hereto and incorporated by referenced (the “Activities”).
Disbursement of the Grant is dependent upon Recipient providing all records and documentation reasonably required by the City.
B. Recipient shall expend the Grant solely on the Activities, as specified in Exhibit A.
Recipient shall not use the Grant for any other purpose or activity without the prior written consent of the City.
C. The Recipient shall operate within the territorial limits of the City of Modesto and the beneficiaries, if any, of the Activities shall be the residents of the City of Modesto.
D. Recipient shall expend the entirety of the Grant by no later than December 31, 2025.
Any portion of the Grant that has not been expended by December 31, 2025, shall be returned to the City no later than January 10, 2026.
3. Recipient’s Obligations
A. Throughout the Term of this Agreement, the Recipient shall obtain and maintain all licenses, permits, qualifications and approvals legally required to conduct business.
The Recipient warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to perform the Activities specified by this Agreement. Recipient shall perform the Activities requires pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Recipient is engaged.
B. The Recipient shall provide appropriate acknowledgement of the Grant by using the City’s logo or making a written acknowledgement in its publicity, promotional materials, information materials, press materials, at public occasions relating to the Activities, and on any website maintained by the Recipient.
4. QUARTERLY Reporting Requirements
Recipient shall submit quarterly reports to the City on the form attached hereto as Exhibit D, and incorporated herein by reference, or on such other form as required by the City.
5. Annual Reporting Requirements
Recipient shall submit an annual report, in accordance with the requirements set forth in Exhibit C, attached hereto and incorporated herein, to the City within 180 days of the end of the Recipient’s fiscal year in a form approved by the City. The annual report shall be in addition to the reporting required by Section 4, and shall include:
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Funding Contribution Agreement – Community Housing and Shelter Services A. Summary of activities and accomplishments, mandate and/or mission of the organization;
B. List of Board Directors with title, contact information and mandate term of each Director;
C. Organizational Chart;
D. Project/Program Expenditures-to-date (including receipts); E. Any other information reasonably requested by the City.
6. Audit Requirements
A. In addition to all other reports and records required by this Agreement, the Recipient shall keep and make available proper books of account and records of the financial management of the Grant provided under this agreement, in accordance with generally accepted business and accounting practices. Such records shall include, but not be limited to, records providing a full description and accounting of each activity undertaken.
B. Recipient agrees to keep all necessary books and records required by this Agreement for five (5) years following the end of this Agreement and shall document all transactions so that all expenditures may be properly audited.
C. Recipient agrees that City or any authorized representative has access to and the right to examine all records, books, papers, or documents related to the project.
Recipient shall allow the City or any authorized representative access to all records, books, papers, or documents related to the project within forty-eight (48) hours of a request to examine.
7. Preservation of Assets
Any assets purchased with the Grant, the cost of which exceed $5,000, shall be preserved by the Recipient and shall not be sold, leased, given away or otherwise disposed of prior to the end of the useful life of the asset without prior written consent of the City.
8. Termination, Suspension and/or Repayment of Grant
The City may terminate, suspend and/or require repayment of the Grant in the event of any of the following circumstances, after notice from the City and a reasonable opportunity to cure:
A. The Recipient fails to provide the Activities, or any portion of the Activities, described in Exhibit A of this Agreement or substandard performance of the Activities;
B. The Recipient suspends or fails to carry on and continuously conduct its operations, or there is a disruption on the performance of the Activities; C. The Recipient has a partisan political affiliation and/or participates in partisan political activities.
D. The Recipient uses the Grant for a purpose or activity other than those specified in Exhibit A.
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Funding Contribution Agreement – Community Housing and Shelter Services E. The Recipient becomes bankrupt or insolvent, goes into receivership or becomes subject to the provisions of any bankruptcy, insolvency, or any other Act for the benefit of creditors, or makes a general assignment for the benefit of its creditors or otherwise acknowledges its insolvency;
F. The Recipient fails to provide to the City with any report, record, or documentation required by this Agreement, or t fails to provide any documentation requested by the City in accordance with the terms of this agreement;
G. The Recipient has made any material misrepresentation to the City or its representatives with respect to any of the matters contained herein and/or in the Recipient’s funding submission/proposal/application for the Grant, or which have been made or may be made in the future surrounding these matters; H. The Recipient breaches any term of this Agreement, after notice from the City and a reasonable opportunity to cure the breach;
9. Compliance with Applicable Laws
Recipient shall carry out, and cause its contractors, consultants, employees and agents to carry out, the Activities, in compliance all applicable federal, state and local laws, rules, ordinances, orders, and regulations, including without limitation and to the extent applicable, the prevailing wage provisions of the federal Davis-Bacon Act and implementing rules and regulations and state prevailing wages pursuant to Labor Code Section 1770 et seq. Without limiting the foregoing, Recipient shall comply with ARPA, the regulations implements ARPA (31 CFR Part 35), any interpretative guidance issued by the United Stated Department of Treasury, and those Grant terms and conditions attached hereto as Exhibit B, and incorporated herein.
10. Non-Assignment
The Recipient shall not assign this Agreement, the Grant, or any part thereof, without the Prior written consent of the City. Any assignment in violation of this section shall require an immediate repayment of the Grant to City by the Recipient.
11. Indemnity and Liability
A. The Recipient shall indemnify , defend with counsel acceptable to City, and hold harmless the City, its officials, officers, employees, and agents (“Indemnitees”) from and against all liability, loss, cost, expense (including without limitation attorneys’ fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine, order, and damage (all of the foregoing collectively “Claims”) which, directly or indirectly, arises out of or relates to this Agreement or the performance of the Activities, except to the extent the Claims arise from the gross negligence or willful misconduct of City.
B. The City shall not be liable to the Recipient or any other party in relation to the Grant and/or the services provided by the Recipient pursuant to the terms of this agreement. The Recipient shall be solely responsible for the payment of any #7..
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Funding Contribution Agreement – Community Housing and Shelter Services individuals employed, engaged or retained by the Recipient for the purpose of assisting it in the fulfilment of its obligations under this agreement.
12. Insurance
The Recipient 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.
In the event the certificates of insurance required hereunder do not provide for notice of cancellation to the certificate holder and/or additional insureds, the Recipient shall provide, and shall require its subcontractors to provide, as an express condition precedent to payment hereunder, an endorsement from their insurers providing that the additional insureds identified herein shall be provided 30 days’ notice of the cancellation on the policies of insurance required hereunder (10 days’ notice if the policies are cancelled for non-payment of premium). In addition, the named insured on all such policies shall provide to the additional insureds identified herein any notices of cancellation of said insurance policies within 5 business days of receipt of such notice.
The Recipient shall, as a further express condition precedent to payment for work performed, affirm under penalty of perjury that the required insurance on the project remains in place and said insurance has not been cancelled. (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 $1,000,000.
(b) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 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 The Recipients and subcontractors; products and completed operations as applicable.
(c) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage . This insurance shall cover any automobile for bodily injury and property damage.
(d) Professional Liability insurance with a minimum limit of $1,000,000 per claim and policy aggregate. If coverage is on a claims made basis it shall #7..
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Funding Contribution Agreement – Community Housing and Shelter Services be maintained for at least three (3) years following completion of the work.
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 Recipient 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 Recipient to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the City, may be forthwith declared suspended or terminated. Failure of the Recipient to obtain and/or maintain any required insurance shall not relieve the Recipient from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the Recipient concerning indemnification. The City, its agents, 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 for losses arising from work performed by The Recipient for the City. The Recipient'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 Recipient must deliver certificates evidencing existence of the insurance listed above to the City prior to the time the contract is signed.
THE RECIPIENT 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, THE RECIPIENT shall provide CITY with a Workers Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.
For any claims related to this project, the RECIPIENT’S 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 RECIPIENT’S insurance and shall not contribute with it.
13. Non-Discrimination
Recipient shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Recipient under this Agreement. Recipient shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, #7..
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Funding Contribution Agreement – Community Housing and Shelter Services contracting, and the provision of any services that are the subject of this Recipient, including but not limited to the satisfaction of any positive obligations required of Recipient thereby.
14. NOTIFICATION
Any notice, communication, amendment, addition or deletion to this Agreement, including change of address of either Party during the term of this Agreement, which Recipient or City shall be required or may desire to make shall be in writing and may be personally served or, alternately, sent by prepaid first class mail to the respective Parties as follows:
To City:
City of Modesto
Attn: Edgar R. Garcia, Housing and Urban Development Supervisor 1010 10th Street
Modesto, CA 95353
To Recipient:
Community Housing and Shelter Services
Attn: Esther Rosas, Executive Director
708 H Street
Modesto, CA 95354
15. SEVERABILITY
If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or City statute, ordinance or regulation; the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.
16. DISPUTE RESOLUTION
All claims, controversies, or disputes arising out of, or relating to the formation of this Agreement, or the breach, termination execution, enforcement, interpretation, or validity of this Agreement, including the determination of the scope or applicability of this contract provision shall be determined by binding arbitration in Modesto, California by one arbitrator, except as otherwise specified in this Agreement. The American Arbitration Association shall administer the arbitration under its Arbitration Rules then in effect, subject to the modifications of those rules contained in this paragraph. This agreement to arbitrate shall be specifically enforceable under the prevailing law of any court having jurisdiction, and the award rendered by the arbitrator may be entered in any court having jurisdiction. The appropriate venue for any arbitration or court proceeding relating to or arising out of this provision shall be in Stanislaus County, California.
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Funding Contribution Agreement – Community Housing and Shelter Services This paragraph is not intended to and does not waive the claim filing requirements found in California Government Code section 900 et seq. In the event that a timely and legally sufficient, arbitrable claim is filed by the Recipient with City, and the claim is rejected in whole or in part by City, this paragraph shall result in the conclusive, final, and binding resolution of all the issues presented in the claim by The Recipient so long as any issues presented by the claim are arbitrable. Claims rejected by City or by operation of law, shall be submitted by the Recipient to arbitration pursuant to the Arbitration Rules of the American Arbitration Association within ninety (90) days after mailing of the written rejection by City to the Recipient. Otherwise, the claim or claims shall be deemed waived in their entirety.
The “fast track’ rules of the American Arbitration Association shall apply to any claim or counterclaim less than ONE HUNDRED FIFTY THOUSAND AND 00/100 ($150,000.00) DOLLARS. In arbitration not proceeding under the “fast track” rules, the arbitrator shall have the power to order that depositions be taken and other discovery be made. Both City and the Recipient shall have the right, upon written notice, to take no more than three (3) depositions of the other as a matter of right in an arbitration proceeding under the “fast track” rules.
Whether or not City and the Recipient may be engaged in interstate commerce, any controversy or dispute mentioned above shall be determined by, and the parties shall be bound by, the substantive law of the State of California, and not the Federal Arbitration Act at 9 USC Section 1 et seq.
The arbitrator may grant any remedy or relief deemed by the arbitrator just and equitable under the circumstances, whether or not such relief could be awarded in a court of law. The arbitrator shall be empowered to award monetary sanctions against a party for failure of cooperation in the arbitration. The arbitrator shall, in written award, allocate all the costs of the arbitration, including the fees of the arbitrator and the reasonable attorney fees of the prevailing party, against the party who did not prevail.
The prevailing party shall be the party in whose favor the majority of the central issues in the case are resolved.
Notwithstanding anything in this provision to the contrary, the arbitrator shall have no power to award punitive damages or other damages not measured by the party’s actual damages (excluding litigation costs and fees) against any party. This limitation of the arbitrator’s powers under this Agreement shall not operate as an exclusion of the issue of punitive damages from this Agreement to Arbitrate sufficient to vest jurisdiction in a court with respect to that issue.
The Recipient shall include in all subcontracts a specification whereby the subcontractor consents to being joined in an arbitration between City and The Recipient involving the work of the subcontractor to be joined. The Recipient’s failure to do so shall be a breach of this Agreement.
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Funding Contribution Agreement – Community Housing and Shelter Services The parties hereby waive any rights provided by Title 9.2 of the California Code of Civil Procedure, Section 1296. The arbitrator’s award shall be deemed final, conclusive and binding to the fullest extent allowed by California law.
17. INDEPENDENT PARTIES
Nothing in this Agreement is intended to or shall establish the Parties as partners, coventurers, or principal and agent with one another. At all times during the term of this Agreement, Recipient and City shall be independent parties, and Recipient shall not be an employee of the City. Except as Recipient may specify in writing, Recipient shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Recipient shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. At all times during the term of this Agreement, Recipient and
18. ENTIRE AGREEMENT
This Agreement, including the exhibits attached hereto, represents the entire and integrated agreement between City and Recipient ant and supersedes all prior negotiations, representations, or agreements, either written or oral. No amendment of any of the terms or provisions of the Agreement shall be deemed valid unless it is in writing and signed by both Parties.
19. GENERAL PROVISIONS
A. Binding Agreement. This agreement shall be binding on and inure to the benefit of the City, the Recipient and their respective successors and assigns. Nothing contained in this Agreement is intended to or shall be deemed to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies hereunder.
B. Severability. Any provision of this agreement, which is or becomes prohibited or unenforceable in any jurisdiction, shall not invalidate or impair the remaining provisions of this agreement which shall be deemed severable from the prohibited or unenforceable provision and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable that provision in any other jurisdiction.
C. Waiver. The fact that the City refrains from exercising a remedy it is entitled to exercise under this agreement shall not be considered to be a waiver of such right and, furthermore, partial or limited exercise of a right conferred upon the City shall not prevent the City in any way from later exercising any other right or remedy under this agreement or other applicable law. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing and executed by the waiving Party
D. Business License. Recipient will have a valid City of Modesto Business License.
E. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, excluding chose of law rules. #7..
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Funding Contribution Agreement – Community Housing and Shelter Services F. Construction of Agreement. The section headings and captions used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this Agreement is the product of negotiation and compromise on the part of both Parties, and the Parties agree, that since all of the Parties have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if all Parties had prepared it.
G. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which taken together shall constitute one instrument. The persons executing this Agreement on behalf of Parties have been duly authorized to do so.
Signatures to follow on next page.
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Funding Contribution Agreement – Community Housing and Shelter Services IN WITNESS WHEREOF, the Parties have executed this Agreement as of the effective date set forth above.
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Funding Contribution Agreement – Community Housing and Shelter Services
EXHIBIT A
SCOPE OF WORK
The homeless prevention and repaid rehousing program will provide targeted support and resources to individuals and families experiencing homelessness or at imminent risk of homelessness, with the goal of preventing housing instability and promoting long term housing sustainability and self-sufficiency.
1. Numerical Goal: 90 unduplicated Households for the proposed grant term over both approved activities.
2. Total Grant Award: $525,000
3. Program Budget
Estimated Expense Estimated Costs
Direct Services
Housing Stabilization Case Management $52,500
Short-Term Rental & Utility Assistance (For Households
Experiencing Homelessness or in Imminent Risk of
Experiencing Homelessness)
$443,970
Total Direct Assistance Costs $496,470
Administration
Administration and Operations
(Office Space, Supplies, Professional Fees) $28,530
Total Administration Costs $28,530
Total Estimated Project Budget $525,000
4. Approved Assistance Type: Homeless Prevention and Rapid Rehousing
5. Proposed Outcomes: Recipient will provide housing stabilization case management and short-term rental and utility assistance to households who are experiencing homelessness or in imminent risk of becoming homeless and can demonstrate a financial hardship, meet income requirements, and unit guidelines.
6. Grant Administration
I. Client Intake and Assessment
a. Recipient shall conduct initial assessments of needs, eligibility, and provide housing navigation services, and documentation requirements of the program. b. Recipient shall complete eligibility screenings for financial assistance after receipt of required program documentation (ie; Identification, rental lease agreement, income documents, hardship documentation, rental/utility arrear information) as applicable to determine program eligibility. #7..
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Funding Contribution Agreement – Community Housing and Shelter Services c. Recipient shall confirm program applicants/household is not receiving duplicative services from another provider for services rendered. d. Recipient shall schedule habitability inspections with the perspective City department to determine rental unit meets program requirements.
II. Direct Services
a. Recipient shall provide short -term rental/utility assistance to individuals and families who meet the program eligibility criteria as follows:
i. Household lacks financial resources and support networks to obtain or sustain permanent housing.
ii. Household will imminently lose their primary nighttime residence, without the program assistance.
iii. Households must provide a rental/lease agreement.
iv. Households requesting rental arrears must provide a written notice of intent to terminate tenancy from a landlord. (Includes a 3-day notice to pay rent or quit).
v. Household must provide written verifiable documentation of a financial hardship.
vi. Household must not exceed 80% of the median income as defined by HUD.
vii. Household is not receiving duplicative services from another provider for homelessness prevention.
viii. The rental unit meets habitability standards as defined by HUD. ix. The rental unit is not in default/foreclosure, meets rent reasonableness and or fair market rent as determined by HUD.
x. The rental unit is within the Modesto city limits.
b. Recipient shall provide program eligible activities individuals and families who meet program eligibility criteria as follows:
i. Recipient shall provide short-term rental/utility assistance up to $4,933 per household (not to exceed 3 months) to include current rent. ii. Recipient shall provide utility arrear assistance only in conjunction with rental assistance (not to exceed 3 months).
iii. Recipient shall provide landlord engagement and mitigation to assist in housing stabilization.
iv. Recipient shall provide housing stabilization case management throughout financial assistance.
v. Recipient shall provide after care case management up to one month after financial assistance concludes.
c. Recipient shall issue rental/utility assistance payments directly to landlord/property owner or utility vendor according to agreed payment schedule and obtain documentation to verify payment receipt.
III. Data and Reporting Requirements
a. Recipient shall participate in the local Continuum of Care’s Homeless Information Management Systems (HMIS) and shall comply with the HMIS Data Quality Standards as adopted by the local Continuum of Care. These standards include, #7..
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Funding Contribution Agreement – Community Housing and Shelter Services but are not limited to: timely inputting of client-level data, utilization of standardized forms, attending required trainings, adoption of specific workflows, etc.
b. Recipient shall utilize HMIS to collect data including program enrollments, services, and living situations, exit destinations, and financial assistance provided to each program participant.
c. Recipient shall gather, maintain, and submit racial, ethnic, gender, head of household and family, housing status and financial assistance received for each program participant documentation that describes the extent to which Program beneficiaries to the activity funded by this Agreement. Beneficiaries and prospective beneficiaries shall be expected to self-identify disability status. This requirement is intended to ensure meaningful access and participation for persons with disabilities. (Required by Section 504 implementing regulations at 24 CFR Part 8.55(b)
d. Recipient shall analyze, at least on a quarterly basis, the degree to which racial and ethnic minorities, female-headed households, persons with disabilities, as well as the categories covered in paragraph “4.b.” of this Exhibit, are participating in the activity funded by this Agreement. Where subrecipient identifies underrepresentation of any group (underrepresentation of 10% or more in participation compared to its representation in the Modesto general population is considered significant) based on race, color, national origin, gender, or disability, the subrecipient shall adjust the administration of this funded activity to promote greater equity in participation (e.g., affirmative marketing/outreach). (Required by Title VI and Section 109 implementing regulations at 24 CFR Parts 1.4 and 6.4; Section 504 implementing regulations at 24 CFR Part 8.4(b); Section 808(e)(5) of the Fair Housing Act which requires HUDfunded activities to affirmatively further fair housing; and HUD’s Civil RightsRelated Program Requirements at 24 CFR 570.601).
IV. Fund Management
a. Reimbursement Requests
i. Funds are released on a reimbursement basis. Requested reimbursement for costs must substantiate that the costs were incurred, and evidence of payment made. Payment by the City is not to be construed as final in the event it or the US Treasury Department disallows any reimbursement of costs.
ii. Recipient shall use the City of Modesto’s Neighborly invoicing system for invoice and supporting documentation submission.
iii. Recipient shall submit monthly invoicing/draw request with itemized cover letter no later than 10 days after the end of the month. iv. Invoice supporting documentation must include, at a minimum, the following information:
1. Supporting Documentation must be neatly organized and bundled by approved budget line-item categories (i.e., salaries, operations, etc). Each bundle must clearly identify which budget line item the #7..
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Funding Contribution Agreement – Community Housing and Shelter Services documentation applies to by placing an itemized summary sheet/cover page on each bundle listing each invoice with subtotals and/or totals.
2. Staffing Costs:
a. Timesheets for each staff member charging time to the funding source must be submitted for each pay period.
The City of Modesto will only reimburse time/salary for job positions/personnel identified and approved within the
application for funding. If at any time during the contract period there is a change in program personnel within the approved job position, Subrecipient must notify the City of Modesto of the change and request City approval to fund new personnel; Allowable time charged to the grant for
each CITY approved position will be limited to the number of hours allocated to the project as listed in the
application.
b. Timesheets must reflect the total time worked each day with the amount of grant hours specific to this agreement time being charged to this grant clearly identified. Only specific to this agreement Grant hours worked will be paid, based on the hourly rate approved at the time of
application; supporting documentation of pay increases
during the program year for staff covered by the grant
must be submitted (e.g., Human Resources pay rate
increase documentation and/or other equivalent
documentation that demonstrates a pay rate increase was processed and approved).
c. If the employee is hourly pay exempt, salary will be allocated based on the hours worked. If the total number of hours worked is not listed, then hourly rate will be based on an average 40-hour work week.
d. The cost of fringe benefits in the form of employer
contributions or expenses for social security; employee life, health, unemployment, and worker's compensation
insurance (except as indicated in §200.447); pension plan costs; and other similar benefits are allowable, provided such benefits are granted under established written
policies. Such benefits, must be allocated to Federal
awards and all other activities in a manner consistent with the pattern of benefits attributable to the individuals or group(s) of employees whose salaries and wages are
chargeable to such Federal awards and other activities, and charged as direct or indirect costs in accordance with the non-Federal entity’s accounting practices.
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Funding Contribution Agreement – Community Housing and Shelter Services e. The accounting basis (cash or accrual) selected for costing each type of leave is consistently followed by the nonFederal entity or specified grouping of employees. f. Bonuses are not allowable expenses. Subrecipient may pay for overtime, extra-pay shifts, and multi-shift work only with prior approval from the City of Modesto, except as follows: i) When necessary to cope with emergencies, such as those resulting from accidents, natural disasters,
breakdowns of equipment, or occasional operational
bottlenecks of a sporadic nature; ii) When employees are performing indirect functions, such as administration,
maintenance, or account; iii) In the performance of tests, laboratory procedures, or other similar operations which are continuous in nature and cannot reasonably be
interrupted or otherwise completed.; or iv) When lower
overall cost to the federal Government will result.
g. If there are more than 6 timesheets, timesheets must be summarized indicating calculation of time to the
reimbursement amount requested; and proof of payment,
such as a payroll register, or copies of paychecks must also be included.
v. City of Modesto may withhold reimbursement payment(s) in cases of non-compliance until non-compliance is cured.
V. Additional Requirements
a. Subrecipients that employ fifteen (15) or more persons shall designate at least one person to coordinate efforts to comply with Section 504 requirements.
Designated Section 504 (Accessibility) Coordinator shall coordinate efforts to comply with Section 504 program and physical requirements. Requirements include, but are not limited to: posting in a non-discrimination notice that includes the name and contact telephone number for the Section 504 Coordinator (notice must also be included in informational, advertising, and marketing materials); reasonable accommodation, removal of architectural barriers, policies and practices that promote access for persons with disabilities, grievance policies and procedures that incorporate appropriate due process standards and that provide for the prompt and equitable resolution of complaints alleging any action prohibited by Section 504, etc. b. Grievance procedures shall include: 1) overseeing the investigation and resolution of complaints by the designated Section 504 Coordinator and documenting the number, nature, and outcomes of grievances; 2) notifying an individual of the right to file a complaint with the state or federal government against the City of Modesto or subrecipient without filing first with the state office; 3: displaying the name(s) and phone number(s) of the Section 504 Coordinator(s); and 4) notifying applicants, participants, and beneficiaries of its grievance policy on all forms and documents used to communicate with them or #7..
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Funding Contribution Agreement – Community Housing and Shelter Services when the City of Modesto or subrecipient’s decision may have an adverse impact to a prospective applicant, participant, or beneficiary. Subrecipient shall post the grievance policy at its office to notify applicants, participants, and beneficiaries. (Required by Section 504 implementing regulations at 24 CFR Part
8.53(a).
c. City of Modesto may withhold reimbursement payment(s) in cases of noncompliance until non-compliance is cured.
VI. E. Definitions
a. Family is defined in the program as a group of persons residing together, and includes but is not limited to: a family with or without children, an elderly family; a near-elderly family; a disabled family; a displaced family; An individual living in a housing unit that contains no other person(s) related to him/her is considered to be a one-person family for this purpose. Adult children who continue to live at home with their parent(s) are considered to be part of the family for this purpose and their income must be counted in determining the total family income. A dependent child who is living outside of the home (for example, students living in a dormitory or other student housing) is considered for these purposes to be part of the family upon which he/she is dependent, even though he/she is living in another housing unit.
b. Household is defined in the program as all persons occupying the same housing unit, regardless of their relationship to each other. The occupants could consist of a single family, two or more families living together, or any other group of related or unrelated persons who share living arrangements. #7..
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Funding Contribution Agreement – Community Housing and Shelter Services
EXHIBIT B
U.S. DEPARTMENT OF THE TREASURY
CORONAVIRUS LOCAL FISCAL RECOVERY FUND
AWARD TERMS AND CONDITIONS
1. Use of Funds.
a. Recipient understands and agrees that the funds disbursed under this award may only be used in compliance with section 603(c) of the Social Security Act (the Act), U.S. Department of Treasury’s (“Treasury”) regulations implementing that section, and guidance issued by Treasury regarding the foregoing. b. Recipient will determine prior to engaging in any project using this assistance that it has the institutional, managerial, and financial capability to ensure proper planning, management, and completion of such project.
2. Period of Performance. The period of performance for this award begins on the date hereof and ends on December 31, 2025. As set forth in Treasury’s implementing regulations, Recipient may use award funds to cover eligible costs incurred during the period that begins on March 3, 2021, and ends on December 31, 2025.
3. Reporting. Recipient agrees to comply with any reporting obligations established by Treasury as they relate to this award.
4. Maintenance of and Access to Records
a. Recipient shall maintain records and financial documents sufficient to evidence compliance with section 603(c) of the Act, Treasury’s regulations implementing that section, and guidance issued by Treasury regarding the foregoing. b. The Treasury Office of Inspector General and the Government Accountability Office, or their authorized representatives, shall have the right of access to records (electronic and otherwise) of Recipient in order to conduct audits or other investigations.
c. Records shall be maintained by Recipient for a period of five (5) years after all funds have been expended or returned to Treasury, whichever is later.
5. Pre-award Costs. Pre-award costs, as defined in 2 C.F.R. § 200.458, may not be paid with funding from this award.
6. Administrative Costs. Recipient may use funds provided under this award to cover both direct and indirect costs.
7. Cost Sharing. Cost sharing or matching funds are not required to be provided by Recipient.
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Funding Contribution Agreement – Community Housing and Shelter Services
8. Conflicts of Interest. Recipient understands and agrees it must maintain a conflict of interest policy consistent with 2 C.F.R. § 200.318(c) and that such conflict of interest policy is applicable to each activity funded under this award. Recipient and subrecipients must disclose in writing to Treasury or the pass-through entity, as appropriate, any potential conflict of interest affecting the awarded funds in accordance with 2 C.F.R. § 200.112.
9. Compliance with Applicable Law and Regulations.
a. Recipient agrees to comply with the requirements of section 602 of the Act, regulations adopted by Treasury pursuant to section 602(f) of the Act, and guidance issued by Treasury regarding the foregoing. Recipient also agrees to comply with all other applicable federal statutes, regulations, and executive orders, and Recipient shall provide for such compliance by other parties in any agreements it enters into with other parties relating to this award. b. Federal regulations applicable to this award include, without limitation, the following:
i. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may determine are inapplicable to this Award and subject to such exceptions as may be otherwise provided by Treasury.
Subpart F – Audit Requirements of the Uniform Guidance, implementing the Single Audit Act, shall apply to this award.
ii. Universal Identifier and System for Award Management (SAM), 2 C.F.R.
Part 25, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 25 is hereby incorporated by reference.
iii. Reporting Subaward and Executive Compensation Information, 2 C.F.R.
Part 170, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference.
iv. OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury’s implementing regulation at 31 C.F.R. Part 19.
v. Recipient Integrity and Performance Matters, pursuant to which the award term set forth in 2 C.F.R. Part 200, Appendix XII to Part 200 is hereby incorporated by reference.
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Funding Contribution Agreement – Community Housing and Shelter Services vi. Governmentwide Requirements for Drug-Free Workplace, 31 C.F.R. Part
20. vii. New Restrictions on Lobbying, 31 C.F.R. Part 21. viii. Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§ 4601-4655) and implementing regulations.
ix. Generally applicable federal environmental laws and regulations. c. Statutes and regulations prohibiting discrimination applicable to this award include, without limitation, the following:
i. Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury’s implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance; ii. The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§ 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability; iii. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of disability under any program or activity receiving federal financial assistance; iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.), and Treasury’s implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and
v. Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto.
10. Remedial Actions. In the event of Recipient’s noncompliance with section 602 of the Act, other applicable laws, Treasury’s implementing regulations, guidance, or any reporting or other program requirements, Treasury may impose additional conditions on the receipt of a subsequent tranche of future award funds, if any, or take other available remedies as set forth in 2 C.F.R. § 200.339. In the case of a violation of section 602(c) of the Act regarding the use of funds, previous payments shall be subject to recoupment as provided in section 602(e) of the Act and any additional payments may be subject to withholding as provided in sections 602(b)(6)(A)(ii)(III) of the Act, as applicable. #7..
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Funding Contribution Agreement – Community Housing and Shelter Services
11. Hatch Act. Recipient agrees to comply, as applicable, with requirements of the Hatch Act (5 U.S.C. §§ 1501-1508 and 7324-7328), which limit certain political activities of State or local government employees whose principal employment is in connection with an activity financed in whole or in part by this federal assistance.
12. False Statements. Recipient understands that making false statements or claims in connection with this award is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.
13. Publications. Any publications produced with funds from this award must display the following language: “This project [is being] [was] supported, in whole or in part, by federal award number SLFRP2096 awarded to County of Stanislaus by the U.S.
Department of the Treasury.”
14. Debts Owed the Federal Government.
a. Any funds paid to Recipient (1) in excess of the amount to which Recipient is finally determined to be authorized to retain under the terms of this award; (2) that are determined by the Treasury Office of Inspector General to have been misused; or (3) that are determined by Treasury to be subject to a repayment obligation pursuant to sections 602(e) and 603(b)(2)(D) of the Act and have not been repaid by Recipient shall constitute a debt to the federal government. b. Any debts determined to be owed the federal government must be paid promptly by Recipient. A debt is delinquent if it has not been paid by the date specified in Treasury’s initial written demand for payment, unless other satisfactory arrangements have been made or if the Recipient knowingly or improperly retains funds that are a debt as defined in paragraph 14(a). Treasury will take any actions available to it to collect such a debt.
15. Disclaimer.
a. The United States expressly disclaims any and all responsibility or liability to Recipient or third persons for the actions of Recipient or third persons resulting in death, bodily injury, property damages, or any other losses resulting in any way from the performance of this award or any other losses resulting in any way from the performance of this award or any contract, or subcontract under this award.
b. The acceptance of this award by Recipient does not in any way establish an agency relationship between the United States and Recipient.
16. Protections for Whistleblowers.
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Funding Contribution Agreement – Community Housing and Shelter Services a. In accordance with 41 U.S.C. § 4712, Recipient may not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing to any of the list of persons or entities provided below, information that the employee reasonably believes is evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant. b. The list of persons and entities referenced in the paragraph above includes the following:
i. A member of Congress or a representative of a committee of Congress; ii. An Inspector General;
iii. The Government Accountability Office;
iv. A Treasury employee responsible for contract or grant oversight or management;
v. An authorized official of the Department of Justice or other law enforcement agency;
vi. A court or grand jury; or
vii. A management official or other employee of Recipient, contractor, or subcontractor who has the responsibility to investigate, discover, or address misconduct.
c. Recipient shall inform its employees in writing of the rights and remedies provided under this section, in the predominant native language of the workforce.
17. Increasing Seat Belt Use in the United States. Pursuant to Executive Order 13043, 62 FR 19217 (Apr. 18, 1997), Recipient should encourage its contractors to adopt and enforce on-the-job seat belt policies and programs for their employees when operating company-owned, rented or personally owned vehicles.
18. Reducing Text Messaging While Driving. Pursuant to Executive Order 13513, 74 FR 51225 (Oct. 6, 2009), Recipient should encourage its employees, subrecipients, and contractors to adopt and enforce policies that ban text messaging while driving, and Recipient should establish workplace safety policies to decrease accidents caused by distracted drivers.
ASSURANCES OF COMPLIANCE WITH CIVIL RIGHTS REQUIREMENTS ASSURANCES OF COMPLIANCE WITH TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 #7..
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Funding Contribution Agreement – Community Housing and Shelter Services As a condition of receipt of federal financial assistance from the Department of the Treasury, the recipient named below (hereinafter referred to as the “Recipient”) provides the assurances stated herein. The federal financial assistance may include federal grants, loans and contracts to provide assistance to the Recipient’s beneficiaries, the use or rent of Federal land or property at below market value, Federal training, a loan of Federal personnel, subsidies, and other arrangements with the intention of providing assistance. Federal financial assistance does not encompass contracts of guarantee or insurance, regulated programs, licenses, procurement contracts by the Federal government at market value, or programs that provide direct benefits.
The assurances apply to all federal financial assistance from or funds made available through the Department of the Treasury, including any assistance that the Recipient may request in the future.
The Civil Rights Restoration Act of 1987 provides that the provisions of the assurances apply to all of the operations of the Recipient’s program(s) and activity(ies), so long as any portion of the Recipient’s program(s) or activity(ies) is federally assisted in the manner prescribed above.
1. Recipient ensures its current and future compliance with Title VI of the Civil Rights Act of 1964, as amended, which prohibits exclusion from participation, denial of the benefits of, or subjection to discrimination under programs and activities receiving federal financial assistance, of any person in the United States on the ground of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury Title VI regulations at 31 CFR Part 22 and other pertinent executive orders such as Executive Order 13166, directives, circulars, policies, memoranda, and/or guidance documents.
2. Recipient acknowledges that Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency,” seeks to improve access to federally assisted programs and activities for individuals who, because of national origin, have Limited English proficiency (LEP). Recipient understands that denying a person access to its programs, services, and activities because of LEP is a form of national origin discrimination prohibited under Title VI of the Civil Rights Act of 1964 and the Department of the Treasury’s implementing regulations. Accordingly, Recipient shall initiate reasonable steps, or comply with the Department of the Treasury’s directives, to ensure that LEP persons have meaningful access to its programs, services, and activities. Recipient understands and agrees that meaningful access may entail providing language assistance services, including oral interpretation and written translation where necessary, to ensure effective communication in the Recipient’s programs, services, and activities.
3. Recipient agrees to consider the need for language services for LEP persons when Recipient develops applicable budgets and conducts programs, services, and activities. As a resource, the Department of the Treasury has published its LEP guidance at 70 FR 6067.
For more information on taking reasonable steps to provide meaningful access for LEP persons, please visit http://www.lep.gov.
4. Recipient acknowledges and agrees that compliance with the assurances constitutes a condition of continued receipt of federal financial assistance and is binding upon #7..
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Funding Contribution Agreement – Community Housing and Shelter Services Recipient and Recipient’s successors, transferees, and assignees for the period in which such assistance is provided.
5. Recipient acknowledges and agrees that it must require any sub-grantees, contractors, subcontractors, successors, transferees, and assignees to comply with assurances 1-4 above, and agrees to incorporate the following language in every contract or agreement subject to Title VI and its regulations between the Recipient and the Recipient’s subgrantees, contractors, subcontractors, successors, transferees, and assignees:
The sub-grantee, contractor, subcontractor, successor, transferee, and assignee shall comply with Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, which are herein incorporated by reference and made a part of this contract (or agreement). Title VI also includes protection to persons with “Limited English Proficiency” in any program or activity receiving federal financial assistance, 42 U.S.C. § 2000d et seq., as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, and herein incorporated by reference and made a part of this contract or agreement.
6. Recipient understands and agrees that if any real property or structure is provided or improved with the aid of federal financial assistance by the Department of the Treasury, this assurance obligates the Recipient, or in the case of a subsequent transfer, the transferee, for the period during which the real property or structure is used for a purpose for which the federal 6 6. 7. 8. 9. 10. financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is provided, this assurance obligates the Recipient for the period during which it retains ownership or possession of the property.
7. Recipient shall cooperate in any enforcement or compliance review activities by the Department of the Treasury of the aforementioned obligations. Enforcement may include investigation, arbitration, mediation, litigation, and monitoring of any settlement agreements that may result from these actions. The Recipient shall comply with information requests, on-site compliance reviews and reporting requirements.
8. Recipient shall maintain a complaint log and inform the Department of the Treasury of any complaints of discrimination on the grounds of race, color, or national origin, and limited English proficiency covered by Title VI of the Civil Rights Act of 1964 and implementing regulations and provide, upon request, a list of all such reviews or proceedings based on the complaint, pending or completed, including outcome. Recipient also must inform the Department of the Treasury if Recipient has received no complaints under Title VI.
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Funding Contribution Agreement – Community Housing and Shelter Services
9. Recipient must provide documentation of an administrative agency’s or court’s findings of non-compliance of Title VI and efforts to address the non-compliance, including any voluntary compliance or other agreements between the Recipient and the administrative agency that made the finding. If the Recipient settles a case or matter alleging such discrimination, the Recipient must provide documentation of the settlement. If Recipient has not been the subject of any court or administrative agency finding of discrimination, please so state.
10. If the Recipient makes sub-awards to other agencies or other entities, the Recipient is responsible for ensuring that sub-recipients also comply with Title VI and other applicable authorities covered in this document State agencies that make sub-awards must have in place standard grant assurances and review procedures to demonstrate that that they are effectively monitoring the civil rights compliance of subrecipients.
The United States of America has the right to seek judicial enforcement of the terms of this assurances document and nothing in this document alters or limits the federal enforcement measures that the United States may take in order to address violations of this document or applicable federal law.
Under penalty of perjury, the undersigned official(s) certifies that official(s) has read and understood the Recipient’s obligations as herein described, that any information submitted in conjunction with this assurances document is accurate and complete, and that the Recipient is in compliance with the aforementioned nondiscrimination requirements. #7..
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Funding Contribution Agreement – Community Housing and Shelter Services
EXHIBIT C
ANNUAL REPORTING REQUIREMENTS
Contractor shall use Exhibit C to provide an annual performance report.
The initial report will cover the period from the date the contract was executed to the following June 30, and will be due to the Recipient within 15 days after the end of the reporting period.
Thereafter, the report will cover a 12-month period and contractors will be required to submit the report to Recipient within 15 days after the end of the 12-month period (by July 15).
Notes on using this template
All contractors that are recipients of State and Local Fiscal Recovery Funds (SLFRF) awards are required to produce an Annual Report. The Annual Report provides information on the contractor’s project and how they plan to ensure program outcomes are achieved in an effective and equitable manner.
The initial Annual Report will cover the period from the date of award to the following June 30 and must be submitted to Recipient within 15 calendar days after the end of the reporting period.
Thereafter, the Annual Report will cover a 12-month period and contractors will be required to submit the report to Recipient within 15 calendar days after the end of the 12-month period (by July 15).
Annual Report Period Covered Due Date
1 July 1, 2024 – June 30, 2025 July 15, 2025
2 July 1, 2025 – June 30, 2026 July 15, 2026
3 July 1, 2026 – December 31, 2026 January 15, 2027
Instructions:
Contractors should consult the SLFRF Guidance on Recipient Compliance and Reporting Responsibilities (Reporting Guidance) located at
https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf for detailed guidance on the submission of this report or contact county staff for assistance with completing this exhibit.
Recipient recommends the use of infographics, tables, charts, pictures, case studies, and other explanatory elements in describing their programs.
Text in italics represents the requirements from the Reporting Guidance and is meant to serve as a reference as contractors prepare their Annual Report. This instructions page and the text in italics should be removed before the final transmitted report is published and submitted to Recipient.
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Funding Contribution Agreement – Community Housing and Shelter Services Community Housing and Shelter Services
202x Annual Report
GENERAL OVERVIEW
Uses of Funds
Describe in further detail contractor’s intended and actual uses of the funds, such as how contractor’s approach would help support individuals experiencing homelessness or at risk of homelessness. Describe any strategies employed to maximize programmatic impact and effective, efficient, and equitable outcomes. Given the broad eligible uses of funds and the specific needs of the jurisdiction, explain how the funds would support the communities, and target population. Address how you are promoting each of the following Expenditure Categories, to the extent they apply:
a. Services for Household Assistance: Rent, Mortgage, and Utility Aid #7..
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Funding Contribution Agreement – Community Housing and Shelter Services
EXHIBIT D
QUARTERLY PROJECT AND EXPENDITURE REPORT REQUIREMENTS
Contractor shall use Exhibit D to provide a quarterly project and expenditure report.
The initial report will cover the period from the date the contract was executed through the end of the quarter, and will be due to the Recipient within 15 days after the end of the reporting period. Thereafter, the report will cover one quarter and contractors will be required to submit the report to Recipient within 15 days after the end of the quarter.
ARPA QUARTERLY PROJECT AND EXPENDITURE REPORT
Reporting on State and Local Fiscal Recovery Funds (SLFRF) Name of Entity:
Project Name:
Reporting Period Start Date:
Reporting Period End Date:
Expenditure Category:
3.11 Housing Support: Services for Unhoused Persons* ^
Please provide a brief description of the activities conducted:
Category Cumulative
Expenditures
to date ($)
Cumulative
Obligations
to date ($)
Current
Period
Expenditures
Current
Period
Obligations
7 Administrative
2.2 Household Assistance:
Rent, Mortgage, and
Utility Aid
[PLEASE SELECT ONE]
5073279.1
PROJECT
EXPENDITURES
PROJECT STATUS
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Revised 1/19/2024
Bid Waiver Approval Form
Supplier Name: Amount of Bid Waiver Request:
Supplier Contact: Supplier Phone No:
Are Federal Funds being utilized for portion of purchase? A bid waiver is required for any procurement commitment greater than $ 3,500 where a minimum of three bids are not obtained.
Justification for waiving the competitive bid requirements is limited to the following (provide detailed information in the comments section of form):
Reason for Bid Waiver - Check Box:
Sole Source - The item/service is unique in its specifications such that only one vendor is qualified to provide the good or service (Formal bidding exception under MMC 8-3.204(b))
OEM - Original Equipment Manufacturer / Distributor
Inflexible time constraints preclude the bidding process - Exigent or mergency circumstances (Formal bidding exception under MMC 8-3.204 (c)) The incumbent's cost, delivery and quality can be compared to a previous quote/bid obtained within the last six months, for the same or similar item/service (Total purchase must be less than $100,000)
Professional Services defined under MMC 8-3.103 (Formal bidding exception under MMC 8-3.204 (a)) – staff should make effort to solicit at least three informal proposals.
Single Bid/Proposal – More than one supplier could provide the goods or service, but only one supplier provided bid/proposal for solicitation.
Amendment – Extending agreement for no more than one year to allow the City to complete formal bidding process for new agreement (MMC 8-3.204 (e)).
Amendment – Amending the goods or services under the existing agreement to include similar types of goods and services (MMC 8-3.204 (f)) Requisition No: Department:
Project Description:
The purchase of any item utilizing any Federal Funding must comply with current applicable Circular Yes No
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Revised 1/19/2024
Other (requires detailed comments)
NEW TECHNOLOGY PURCHASES
Does the new technology meet the criteria to be reviewed by the Technology Steering and Alignment Committee (TSAC)? Yes ____ No ____
If yes, was it approved by this committee? Yes ____ No ____ Approval Name Signature Date
Requestor
Division Manager
Department Director
Chief Information Officeri
Buyer
Purchasing Manager
Director of Finance
i Information technology (IT) purchases will require Chief Information Officer Signature Buyer Comments:
Comments:
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 1, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Capital Facilities Fees Policies and Procedures Update CONTACT: Edgar Garcia, Community Development Manager
[email protected], 209-577-5211
DESCRIPTION:
Consider approving amendments to the Capital Facilities Fees Policies and Procedures. (Funding Source: Capital Facilities Fees)
STRATEGIC PLAN ELEMENT:
The recommended action supports the City Council’s 2020-2025 Strategic Plan, Goal D:
Provide Safe, Efficient, and Reliable Infrastructure through proactive community investment, maintenance and sustainability efforts.
BACKGROUND:
In 1989, the City of Modesto established a Capital Facilities Fee (CFF) Program to mitigate the impacts of new development as outlined in the California Government Code1. The CFF collected may be used for the purchase, construction, expansion, rehabilitation or acquisition of public facilities. New development projects that are assessed a CFF include, but are not limited to, new building and construction projects, commercial building additions and changes of use to more intensive land use categories. Since that time, there have been several updates and amendments that have set policy direction on the amount and administration of fees collected for impacts associated with new development. The City’s Capital Facilities Fees Policies and Procedures (“CFF Policies and Procedures”) were last revised September 22, 2020, by Resolution 2020-407.
The CFF Policies and Procedures provide guidance on the administration of the City’s CFF Program. The CFF Policies and Procedures also streamline the ability for a project applicant to understand the rules that govern the implementation of the CFF Program.
DISCUSSION:
1 Government Code 66000- Fees for Development Projects
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City Council, August 13, 2024
Capital Facilities Fees Policies and Procedures Update
The key recommendations from staff include the following to ensure that the CFF policies align with the City’s 6th Cycle Housing Element – the following recommended modifications need to take place in the following areas: Junior Accessory Dwelling Units, Affordable Housing Exemptions, and Farmworker Housing Exemptions.
I. CFF Undefined Land Uses
CFF is based on specific land use categories. As a matter of policy, a broad range of uses have been generally categorized as being residential, commercial, office or industrial. Undefined uses, as outlined in Table 2 of the CFF policy, are charged at rates that are determined by the CFF Administrator using similar land use determinations. Currently the CFF Undefined Land Uses on Table 2 of the CFF Policies and Procedures do not include Junior Accessory Dwelling Units (JADUs). Staff recommends adding the Junior Accessory Dwelling Units to Table 2- Undefined Land Uses:
Junior Accessory Dwelling Unit
California law allows for the creation of junior accessory dwelling units (JADU) in singlefamily residential zones. The code limits the number of JADUs to one per residential lot zoned for single-family residents with a single-family residence built, proposed to be built, on the lot. Any JADU under 500 sq. ft. is exempt from impact fees.
California law allows for one Accessory Dwelling Unit (ADU) and one Junior Accessory Dwelling Unity (JADU) per lot with a proposed or existing single-family dwelling.
II. CFF Exemptions
Exemptions are provided to foster the development of residential units. Based on the 6th Cycle Housing element staff recommend expanding the types of affordable units exempt from the CFF. Currently, affordable units restricted to very-low-income households are exempt from the CFF. The proposed update would expand that exemption to include affordable units restricted to low-income households and adding exemptions for Farmworker Housing to align with the approved Housing Element. Staff recommends the following policy modifications:
Very Low-Income Housing
o Very Low-Income Housing will now be defined as Affordable Housing o Current Area Median Income (AMI) for Very Low-Income Housing: fifty percent (50%)
o Proposed AMI for Affordable Housing: eighty percent (80%) o Affordable Housing restricted to households under 80% AMI is proposed to be eligible for a CFF exemption.
Farmworker Housing
o Agricultural and/or Farmworker Housing is proposed to be eligible for a CFF exemption.
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City Council, August 13, 2024
Capital Facilities Fees Policies and Procedures Update
FISCAL IMPACT:
The recommended action is the adoption of the revised CFF Policies and Procedures for the City of Modesto’s Capital Facilities Fees Program (“CFF Program”) which will exempt future eligible projects from impact fees. There is no impact to the General Fund.
COMMITTEE RECOMMENDATION:
This item was presented at the Economic Development Committee on June 3, 2024 and was approved to forward to Council for consideration and approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the amendments to the Capital Facilities Fees Policies and Procedures.
Approved by:
Jessica Hill, Director of Community and
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. 2024 Capital Facilities Fees Policies and Procedures- Redline Updates & Exhibit. #8..
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8/13/2024/CEDD/EGarcia/Item # 1 2024-xxx
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX
RESOLUTION APPROVING THE AMENDMENTS TO THE CAPITAL FACILITIES
FEES POLICIES AND PROCEDURES
WHEREAS, Section 8-1.904 of the Modesto Municipal Code authorizes the City Council to establish a Capital Facilities Fees (“CFF”) program by resolution; and WHEREAS, the City of Modesto Capital Facilities Fees (“CFF”) Program was established in 1989 to mitigate the impacts of new development, and the City Council previously established CFF rates based on comprehensive nexus studies; and WHEREAS, the Owner has submitted a request to the City to form the Community Facilities District pursuant to the City’s Policies & Procedures for the Formation, Annexation, and Administration of Community Facilities Districts created pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the “City’s CFD Policies and Procedures”); and
WHEREAS, the petition submitted by the Owner complies with the requirements of Section 53319 of the Act and the City’s CFD Policies and Procedures; and WHEREAS, CFF collected may be used for the purchase, construction, expansion, rehabilitation or acquisition of public facilities; and WHEREAS, there have been several updates and amendments that have set policy direction on the amount and administration of fees collected for impacts associated with new development; and
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8/13/2024/CEDD/EGarcia/Item # 2 2024-xxx
WHEREAS, the City’s Capital Facilities Fees Policies and Procedures were last revised on September 22, 2020 by Resolution No. 2020-407; and WHEREAS, the key recommendations ensure that the CFF policies align with the City’s 6th Cycle Housing Element; and
WHEREAS, the recommended modifications need to take place in the following areas: Junior Accessory Dwelling Units, Affordable Housing Exemptions, and Farmworker Housing Exemptions; and
WHEREAS, California law allows for creation of junior accessory dwelling units (JADU) in single family residential zones. The code limits the number of JADUs to one per residential lot zoned for single family residential; and WHEREAS, any JADU under 500 sq. ft. is exempt from impact fees; and WHEREAS, affordable units restricted to very-low income households are exempt WHEREAS, Very Low-Income Housing will now be defined as Affordable Housing; and
WHEREAS, affordable housing will be restricted to households under 80% Area Median Income (AMI); and
WHEREAS, Agricultural and/or Farmworker Housing is proposed to be eligible for a CFF exemption.
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8/13/2024/CEDD/EGarcia/Item # 3 2024-xxx
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that is hereby approves the Amendments to the Capital Facilities Fees Policies and Procedures, attached hereto as Exhibit A.
BE IT FURTHER RESOLVED this resolution shall go into effect and be in full force and operation from and after sixty (60) days after passage and adoption. #8..
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8/13/2024/CEDD/EGarcia/Item # 4 2024-xxx
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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: Name, Name, Name, Name, Name, Name, Mayor Name
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST: _____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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City of Modesto Capital Facilities Fees
Policies and Procedures
Amended Policies and Procedures Adopted on September Month 22X, 202020XX
City Council Resolution 202020XX-407
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page i
TABLE OF CONTENTS
INTENT ..........................................................................................................................................................1 ADMINISTRATIVE ORGANIZATION & RESPONSIBILITY..................................................................................1 CFF Administrator .....................................................................................................................................1 ADMINISTRATIVE REQUIREMENTS ...............................................................................................................1 Factors Considered....................................................................................................................................1 Annual Report ...........................................................................................................................................1 Five-Year Report........................................................................................................................................2 Annual Inflationary Adjustments ..............................................................................................................3 CFF Program Updates................................................................................................................................3 Land Value Updates ..................................................................................................................................3 DETERMINATION OF CFF ..............................................................................................................................3 COLLECTION OF FEES ....................................................................................................................................4 Calculation and Collection of CFF..............................................................................................................4 Payments...................................................................................................................................................4 Refunds .....................................................................................................................................................4 Protests .....................................................................................................................................................4 Appeals......................................................................................................................................................4 EXEMPTIONS, DEFERRALS AND CREDITS ......................................................................................................4 Credits and Exemptions ............................................................................................................................5 Deferrals....................................................................................................................................................5 DEVELOPMENT DEDICATIONS ......................................................................................................................5 Residential Streets ....................................................................................................................................5 Expressways ..............................................................................................................................................5 Arterial & Major Collector Streets.............................................................................................................6 REIMBURSEMENT & OTHER RELATED AGREEMENTS ...................................................................................6 Initial Request for Reimbursement ...........................................................................................................7 Reimbursement Agreement......................................................................................................................7 Timing........................................................................................................................................................7 Notice to Proceed .....................................................................................................................................7 Reimbursement Payments........................................................................................................................7 CONSTRUCTION CONTRACTOR REQUIREMENTS..........................................................................................7 Three Competitive Bids .............................................................................................................................8 Licensing....................................................................................................................................................8 Payment of Prevailing Wages....................................................................................................................8 Indemnification .........................................................................................................................................8 Overtime & Change Orders.......................................................................................................................8 TABLE 1 - CFF LAND USE CATEGORIES ........................................................................................................10 #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page ii
TABLE 2 - CFF UNDEFINED LAND USES .......................................................................................................11 TABLE 3 - CFF CREDITS AND EXEMPTIONS..................................................................................................12 TABLE 4 - CFF DEFERRALS ...........................................................................................................................15 TABLE 5 - CFF FEE SCHEDULE ......................................................................................................................17 APPENDIX A - DEFINITIONS........................................................................................................................19 #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 1
INTENT
In 1987, the City of Modesto established a Capital Facilities Fee (CFF) Program to mitigate the impacts of new development as outlined in §6600 of the California Government Code. The CFF collected may be used for the purchase, construction, expansion, rehabilitation or acquisition of public facilities. New development projects that are assessed a CFF include, but are not limited to, new building and construction projects, commercial building additions and changes of use to more intensive land use categories.
The following policies and procedures (Policies and Procedures) shall guide in the administration of the City of Modesto CFF Program. This administrative manual elaborates upon the administrative directions contained in the Modesto’s Municipal Code, California State Code and City Council Resolutions.
ADMINISTRATIVE ORGANIZATION & RESPONSIBILITY
CFF Administrator
The Administrator of Infrastructure Financing Programs shall serve as the CFF Administrator and is charged with the overall administration and oversight of the CFF Program. The CFF Administrator has the responsibility of ensuring all issues relating to the CFF Program are managed in accordance with applicable rules and regulations.
ADMINISTRATIVE REQUIREMENTS
Factors Considered
The City Council has determined that the CFF adopted by the City of Modesto shall be based on the following two factors: (i) reflect full cost allocation to each category of new development of capital facilities necessary to serve growth; and (ii) be reviewed annually to consider an escalation to account for inflation.
Annual Report
Annual reporting of a local agency’s impact fee program is required by Government Code §66006. The impact fees collected must be segregated from general and other funds containing fees collected for other improvements. Interest on each impact fee fund or account must be credited to that fund or account and be used only for the purpose for which the impact fee was collected.
California Government Code §66006(b) requires that a local agency make the following information available to the public for each separate impact fee fund on an annual basis and that the local agency review that information at a public meeting. The law also requires the annual report include the following information for the prior fiscal year and be made available within 180 days after the last day of each fiscal year:
Description of the type of impact fee in the account or fund. #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 2
Identification of the amount of the impact fee.
The beginning and ending balance of the account or fund. The amount of impact fees collected and interest earned. Identification of each public improvement on which impact fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with the impact fee.
Identification of an approximate date by which the construction of the public improvements will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.
Description of each interfund transfer or loan made from the account or fund, including the public improvements on which the transferred or loaned impact fees were expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of impact funds made to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.
In addition to the requirements above, the City Council has determined that the annual report should also contain the following information:
The cumulative inventory of exempt residential units and the percent of anticipated total exempt units at build-out.
A comparison of cumulative exempt units to total units built since 1989. During recessions and other times of low production of market-rate housing, it is acknowledged that the cumulative, exempt units may exceed two percent (2%) of the total units built.
Five-Year Report
California Government Code §66001(d) also requires that the local agency make all of the following findings every fifth year with respect to that portion of the account remaining unexpended, whether committed or uncommitted:
Identify the purpose to which the impact fee is to be allocated. Demonstrate a reasonable relationship between the impact fee and the purpose for which is it charged.
Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements.
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
In any action imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 3
relationship between the amount of the impact fee and the cost of the public facility or portion of the public facility attributable to the development on which the impact fee is imposed.
Annual Inflationary Adjustments
In an effort to ensure that all fees collected are adequate, an annual inflationary adjustment is applied each year to the CFF Program. The annual inflationary adjustments are:
Administratively adjusted annually by the CFF Administrator or his/her designee for all land use categories to account for inflation or deflation. Based on the annual change in the San Francisco Bay Area Engineering News Record Construction Cost Index through the month of December the year preceding each inflationary adjustment.
Becomes effective on or about July 1st of each year.
The City will provide at least one (1) meeting with stakeholders and other interested parties at least sixty (60) days in advance of the effective date of the adjustment. While the annual adjustment is an administrative function, the item should be submitted to the City Council for their information.
CFF Program Updates
The imposition of development impact fees requires identification of the facilities to be provided and the fee amounts imposed must not exceed the cost of the necessary facilities.
To fulfill this requirement, the City shall undertake periodic studies to identify the facilities needed and their costs.
Land Value Updates
In an effort to keep pace with market conditions affecting the City’s ability to construct public facilities, the City shall annually update the land values of its CFF Program. The intent of the annual updates is to ensure that new development pays for its share of future infrastructure necessary to serve the needs of the City.
DETERMINATION OF CFF
CFF is based on specific land use categories. As a matter of policy, a broad range of uses have been generally categorized as being residential, commercial, office or industrial. Table 1 identifies the approved land use categories. Full definitions of approved land use categories can be found in Appendix A. Undefined uses, as outlined in Table 2, are charged at rates that are determined by the CFF Administrator using similar land use determinations.
An applicant may request a reduction in the CFF if it is determined that the project will generate a lower number of trips than the trip generation rates that were used as the basis for the current CFF. Any such fee reduction must be based on a trip generation study, using accepted methodology, as determined by the City. The fee reduction shall be no greater than #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 4
a proportionate reduction in trips demonstrated in the trip generation study. Any such reduction shall be approved by the City Manager.
COLLECTION OF FEES
Calculation and Collection of CFF
As codified in the Modesto Municipal Code, the CFF is collected at the time of building permit issuance. For fee assessments, the Director of the Community and Economic Development Department has the final authority on the determination of land use.
Payments
CFF is collected by the Building Safety Division prior to issuance of a building permit. In the event the payment subsequently proves to be invalid due to insufficient funds, improper execution or for any other reason, the Finance Department shall notify the fee payer, the contractor, and the property owner and a hold shall be placed on the permit and subsequent inspections until the required CFF is paid.
Refunds
If a building permit expires, is revoked, voluntarily surrendered or voided, and no construction or improvement of land has commenced, then the fee payer is entitled to a refund, without interest and less a two and one-half percent (2.5%) administrative fee.
Requests for refunds must be made in writing and addressed to the CFF Administrator.
Refunds shall be issued within four (4) weeks of the written request.
Protests
In the event a fee payer agrees to pay CFF in protest at the time of building permit issuance, a notification of the protested payment must be made in writing to the CFF Administrator at the time the fees are paid. The protest shall be scheduled for review by the CFF Review Committee and a written response shall be sent to the fee payer.
Appeals
Any individual calculation of the CFF made may be appealed in accordance with the Modesto Municipal Codes 1-4.01 – 1.4.05. Appeals shall be limited to disputes regarding the calculation of CFF due.
EXEMPTIONS, DEFERRALS AND CREDITS
The City of Modesto supports economic development through the growth of Modesto businesses. It also encourages the construction Very Low and Low Income Affordable Housing development projects within the City. CFF deferral, credit and exemption programs #8..
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benefit economic growth and development by allowing the deferral, credit and/or waiver of impact fees.
Credits and Exemptions
In some situations, credits are provided to acknowledge that the expansion, replacement or reconstruction of a building will have no additional impact on facilities needed as a result of new development. Exemptions are also provided to foster the development of residential units affordable to Very Low Income households, Affordable Housing for persons earning 80% of the Area Median Income (AMI), as well as certain qualifying residential units affordable to Low Income households. CFF Credit and Exemption descriptions, qualifications and requirements are provided in Table 3. With respect to Very Low and Low Income Affordable Housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. However, it is acknowledged that during recessions and other times of low production of market-rate housing, the cumulative, exempt units may exceed two percent (2%) of the total units built. Exemptions that meet the requirements of these Policies and Procedures, including the attached Tables, may be approved by the City Manager. The City Manager, in his or her discretion, may refer any exemption application to the City Council for action. However, any exemptions granted above the two (2%) threshold described above require the approval of the City Council.
Deferrals
The CFF Program allows for two types of deferrals. The first allows non-residential developers to pay a portion of the CFF at the time of building permit issuance and defer payment of the balance over a five (5) year period with interest. The second deferral allows developers of Low Income Housing units to defer payment of CFF for a period of time, not to exceed twenty (20) years, with interest. Table 4 identifies the CFF deferral program guidelines for Low Income Housing and non-residential development projects. All deferrals require an agreement with the City, along with a promissory note and deed of trust recorded on the property to secure payment of the CFF, prior to building permit issuance. CFF Deferrals that meet the requirements of these Policies and Procedures, including the attached Tables, may be approved by the City Manager. The City Manager, in his or her discretion, may refer any exemption application to the City Council for action.
DEVELOPMENT DEDICATIONS
Residential Streets
The collector and local streets required by new development shall be dedicated and improved by the abutting developer in accordance with City Standard Specifications.
Expressways
Expressway improvements shall be constructed as required by the conditions of approval. #8..
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The developer shall be reimbursed the cost of said improvements and right-ofway dedication pending the availability of CFF funds and provided funding for said improvements are included in the CFF Program.
All reimbursements shall be detailed in a CFF Reimbursement Agreement in advance of construction or dedication in accordance with the municipal code. When interim improvements are required to facilitate current development prior to future expressway improvements, the interim improvements shall be funded and provided by the abutting developer.
When extra facilities are required specifically for a particular development at hand (i.e.: deceleration/acceleration lanes, slip ramps, etc.), the extra facilities shall be funded and provided by the abutting developer without reimbursement.
Arterial & Major Collector Streets
Arterial and major collector streets shall be constructed per City Standard Specifications. A standard width of forty (40) feet shall be dedicated and improved to City Standard Specifications. In all cases described in this section, the forty (40) foot width shall be measured from the new property line on each side of the street towards the street centerline. This dedication is a requirement of development and not subject to reimbursement.
When a developer is required to dedicate and improve more than the required forty (40) feet, the cost of right-of-way and improvements in excess of forty (40) feet shall be reimbursed to the developer pending the availability of CFF funds and provided funding for said improvements are included in the CFF Program. All reimbursements shall be detailed in a CFF Reimbursement Agreement in advance of construction or dedication in accordance with the municipal code. When there is an existing street, where the forty (40) feet dedication and improvements have been previously made, any additional dedication and improvements shall be subject to appropriate reimbursement to the developer. When there is an existing street and if the streets have not been previously improved to City Standard Specifications, only the dedication or improvements in excess of forty (40) feet will be subject to the appropriate reimbursement. When extra facilities are required specifically for a particular development at hand (i.e.: deceleration/acceleration lanes, slip ramps, etc.), the extra facilities shall be funded and provided by the abutting developer without reimbursement.
The City’s Standard Specifications can be found online at www.modestogov.com. Appendix B details the City’s Street Exaction Policy.
REIMBURSEMENT & OTHER RELATED AGREEMENTS
The planning contained in the City’s Capital Improvement Program (CIP) and the CFF Program shall guide the amount and the schedule of reimbursements to be paid from CFF funds for reimbursement. Prior to commencement of any work that is eligible for reimbursement, a #8..
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Reimbursement Agreement between the developer and the City must be approved per Modesto Municipal Code §8-3.102. A Reimbursement Agreement will be required where the development occurs fronting a planned CFF fund project, or which required CFF funded work off-site. All such work shall be done by developer advances and will be subject to reimbursement pursuant to the terms of the Reimbursement Agreement.
Initial Request for Reimbursement
It is the obligation of the developer, landowner and/or the developer’s engineer to submit a request to the CFF Administrator for reimbursement. Requests will not be granted if the dedication or improvements have already been made or started prior to execution of a Reimbursement Agreement. Each request shall include:
An Engineer’s Estimate of the work to be performed that is eligible for reimbursement.
All exhibits relating to the improvements or right-of-way including the plat and, where applicable, closure calculations.
Design costs incurred prior to the execution of the Reimbursement Agreement for completed and accepted City-funded facilities as determined and approved by the CFF Administrator.
Reimbursement Agreement
Prior to the issuance of a construction permit and recording of a final map for dedication, the developer will be required to enter into all necessary agreements in a form provided by the City and consistent with these Policies and Procedures. All agreements will be reviewed and approved as to form by the CFF Administrator, City Attorney and others as the City deems appropriate. City Council approval shall be required for all reimbursements over $49,999.
Timing
The planning contained in the CFF Program and the City’s annual adopted Capital Improvement Program shall guide the amount and the schedule of reimbursements to be paid from CFF funds. Furthermore, the CFF Administrator shall determine the fiscal year(s) in which funds will become available and appropriate for reimbursement.
Notice to Proceed
Once the appropriate agreement(s) are executed, a Notice to Proceed shall be issued by the CFF Administrator to the developer to commence construction of reimbursable improvements.
Reimbursement Payments
Upon completion, verification of invoices and acceptance of improvements, reimbursements shall be issued from the applicable CFF fund in the manner set forth in the Reimbursement Agreement.
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CONSTRUCTION CONTRACTOR REQUIREMENTS
In retaining construction contractors for work which is reimbursable by the City of Modesto and where a Reimbursement Agreement (or other similar agreement) with the City is less than $300,000.00, the developer shall abide by the following bid process:
Three Competitive Bids
The developer shall provide three (3) competitive bids. If the developer desires to award to a contractor other than the low bidder, a written request must be submitted to the City. The City may allow this if the developer can provide adequate justification.
Licensing
The developer shall make sure that all contractors and subcontractors are licensed in accordance with §7000 through §7145 inclusive, of the California Business and Professions Code and maintain adequate insurance for any work or services performed. Developer, its contractors and subcontractors shall have and maintain a City business license during the term of any agreement.
Payment of Prevailing Wages
In accordance with California Labor Code §1770, developer shall require the payment of prevailing wages based on the rates determined by the California Director of Industrial Relations. Unless otherwise directed by the City, developer’s construction schedule shall provide adequate time for completion of the work such that no holiday or overtime labor shall be required. The City shall not reimburse developer for any labor costs which exceed the normal and customary straight time rates as described in the City of Modesto General Provisions, §4.19, for the work performed unless the City authorizes the use of overtime or legal holiday time, in advance and in writing.
The developer shall maintain certified payroll records for all labor costs incurred on all City reimbursable work for a minimum period of four (4) years from the issuance of the Notice of Completion. Said payroll records shall be made available to the City or any state regulatory agency for review, audit and inspection or copying upon request.
Indemnification
Developer shall indemnify and hold the City harmless for ensuring that the project is bid and constructed in accordance with City standards, and in compliance with all applicable local, state and federal laws. Developer shall also indemnify and hold the City harmless for any damages, claims or actions arising out of said construction activities in a form approved by the City Attorney and the Risk Manager.
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Overtime & Change Orders
The City shall retain the right to be in attendance to inspect all bids and change orders. Any extra work or charges during construction for which reimbursement is sought shall be justified and documented. Except in the case of an emergency, any such charges shall be approved by the City in advance and in writing. In the case of an emergency, any such charges may be authorized by the City if the developer provides adequate justification that an emergency existed and that the extra work or charges incurred were reasonable. Said justification shall be provided within a reasonable time after the emergency ends and prior to reimbursement for any such charges.
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Resolution No. 2020-407 Page 10
TABLE 1 - CFF LAND USE CATEGORIES
CATEGORY DESCRIPTION
RESIDENTIAL
Single-Family Single-family detached homes on individual lots. Density of development is typically ten (10) dwellings per acre or less.
Multiple-family dwelling units and multi-family residential planned unit developments greater than a density of ten (10) units per acre. Duplexes High & Low Rise Apartments
Triplexes High & Low Rise Condominiums
Multi-Family
Mobile Homes Medium-Density Developments
Senior Housing Retirement communities restricted to adults or senior citizens, congregate care facilities, and similar residential uses.
Hotel Hotel and motel rooms
COMMERCIAL
Retail Retail, including, but not limited to:
Convenience Markets General Merchandise Paint Stores < 49,999 SF Supermarkets Building Materials Hardware Stores 50,000 – 99,999 SF Drug Stores Lumber Stores Video Arcades Department Stores
New & Used Car Sales
Nursery Sales/Displays
Specialty Retail Stores
Racquetball Courts
Discount Stores
Health Club
Locker Rooms
and Showers
Restaurants, including, but not limited to:
Fast Food
Sit Down Restaurants
Bars
Cocktail Lounges
Drinking
Establishments
Covered and
Enclosed Patio
Dining
Banks:
Banks Savings & Loans Credit Unions
Other:
100,001 – 299,999 SF
> 300,000 SF
Storage facilities, also known as “mini” storage facilities for personal items and not associated with industrial use.
COMMERCIAL - OTHER
Church Structures primarily designed as a place for worship. Also includes church multi-purpose rooms.
Daycare & School An educational, vocational, daycare facility or gyms for private schools.
Hospital
Structures designed for healing services, both in-patient and out-patient, that includes surgical care of the sick, injured, or physically ill and/or therapeutic treatment for the mentally ill. Included as an integral part of a hospital are laboratories, out-patient departments, training facilities, central service facilities, and hospital staff offices on the same site. The preceding ancillary uses are considered “professional offices” if located off-site, unless a multi-site campus is covered by a P-D zone or hospital uses. Separate sets of offices on the same site for physicians are considered “professional offices”.
CATEGORY DESCRIPTION
COMMERCIAL - OTHER
Nursing Home
Structures designed for use as a convalescent hospital, retirement home, or a twenty-four (24) hour care center for seven (7) or more persons in addition to members of the family.
OFFICE
Medical Office
Offices and clinics devoted to the practice of medical professions or providing medical services, including pseudo-medical services, but excluding hospitals and nursing homes which are treated separately.
General Office All other types of general and professional offices.
INDUSTRIAL
Facilities in which the primary activity is the production of finished items through manufacture, fabrication, processing, packaging, or treatment of raw materials or parts, except heavy industrial uses. Uses which are considered include:
Electronics Assembly Food Processor, Brewery, or Bakery Paper Products Junk Handling, Processing, or Storage Metal Fabricator Septic Tank and Cesspool Storage
Bottling Plant Vehicle Salvaging and Wrecking
Cabinet Shop
Machine Shop
Burning Operations for Wood and Lumber
Products
Sheet-Metal Shop
Pulp/Paper Mill
Landfill, Waste Product Disposal, and
Transfer Stations
Welding Shop
Wholesale Shop
Reduction, Processing, Storage of Offal,
Dead Animals, Bones, or similar materials
Recycling Facility
Rock Crushing
Stockyard
Manufacture, Fabrication, Processing,
Treatment of Explosives, Great Products,
Chemicals, Chemical Products, and Oil
Tannery Material Testing, Labor Manufacturer
Equipment Rental
Yard
Manufacturing,
Light Industrial, &
Industrial Park
Note: When a development proposal contains more than an incidental mixture of mixed industrial uses, the general type of uses should be segregated and treated separately.
Facilities in which the primary activity is the storage, shipping or receiving of materials. Uses in this category include, but are not limited to:
Freight Moving and Storage Services
Warehousing Bulk Feed Storage
Warehousing,
Distribution,
& Heavy Industrial
Corporation Yard Greenhouses, Barns, and Silos
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Freight Yard
Lumberyard
Sand, Gravel, and Building Materials
Dealer
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TABLE 2 - CFF UNDEFINED LAND USES
BUILDING USE DESCRIPTION
Shell Buildings
Builders will often apply for a building permit to construct the “shell” of a building. The shell use shall be determined at the time of building permit issuance. The first tenant improvements to the shell building shall be charged according to land use.
Roof Structures When an open area exists and a roof structure is added, 100% of the total CFF shall be charged if the structure is supported by the addition of one (1) or more side walls. 50% of the total CFF shall be charged if the structure has no side walls.
Multiple Use Structures
With the exception of commercial uses, if there is more than one (1) primary land use within a building, and the applicant can document that a secondary land use accounts for more that fifteen percent (15%) of the gross floor area of the structure, then the CFF shall be calculated separately for each use and the results summed.
Canopy Construction
When an open area exists and a canopy structure is added, 100% of the total CFF shall be charged if the canopy is enclosed on three (3) or more sides and 50% of the total CFF shall be charged if the canopy is enclosed on one (1) or two (2) sides. Canopied business or storefront entryways and freestanding membrane canopies with no sides are exempt.
Mezzanines When a second floor open area or balcony exists, 100% of the total CFF shall be charged.
Change of Use for Existing Buildings
With the exception of shell buildings, any alteration or change of use to an existing building does not trigger the payment of CFF provided that no additional square footage is added. If additional square footage is added, the CFF shall be charged based on the additional square footage and land use. Should the change of use fall within a lower land use category, no refunds or credits for the previously paid CFF shall be made.
Ancillary Recreation Buildings The CFF paid on the dwelling unit or room basis is deemed adequate for ancillary recreation buildings such as mobile home clubhouses, cabanas, weight rooms, lounges, or activity buildings which are primarily oriented to the residential development.
Accessory Dwelling Unit
California law (Government Code §65852.2) exempts Accessory Dwelling Units (ADU) less than 750 sq. ft. from local impact fees and requires that fees for an ADU of 750 sq. ft. or greater must be charged proportionately in relation to the square footage of the primary dwelling unit. For example, if an ADU is 900 square feet and the primary dwelling unit is an 1,800 square foot single family home, the impact fees can’t be greater than 50% of the single-family CFF rate. Fee Calculation: (900 sq. ft./1,800 sq. ft.) * $15,016 = $7,508 (50% of the single-family CFF rate). However, in no event shall the impact fees for the ADU exceed the CFF rate for Multi-Family residential.
CFF ADU Impact Fee Example*
Primary dwelling gross floor area (sq. ft.) 100%
Proposed Accessory Dwelling Unit Size (sq. ft.) 50%
ADU Impact Fee Total $7,508.00
*$15,016 CFF Single Family Residential/Dwelling through June 30, 2020 #8..
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Junior Accessory Dwelling Unit
California law (Government Code 65852.22) allows for the creation of junior accessory dwelling units (JADU) in single-family residential zones. The codeState law limits the number of JADUs to one per residential lot zoned for single-family residecesnts with a single-family residence built, proposed to be built, on the lot. Similar to the ADU any JADU under 750 sq. ft. is exempt from impact fees.
California law (Government Code §66323 (a)) allows for one Accessory Dwelling Unit (ADU) and one Junior Accessory Dwelling Unity (JADU) per lot with a proposed or existing single-family dwelling.
TABLE 3 - CFF CREDITS AND EXEMPTIONS
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS
(Prior To Issuance of a
Building Permit)
RES
IDE
NTI
AL
Accessory Dwelling Unit Second dwelling unit located adjacent or connected a single-family dwelling unit. Units less than 750 sq. ft.
No Charge
Junior Accessory Dwelling Unit Second dwelling unit connected to a single-family dwelling unit. Units less than 75500 sq. ft.
No Charge
Very Low and Low Income Housing Any Very Low and Low Income housing units constructed or expanded by the Housing Authority of the County of Stanislaus or by any entity in which the Housing Authority is a major partner. Application
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
CHDO Housing Housing constructed or expanded by a CHDO Organization that will be made affordable to households earning sixty (60%) or less of the Area Median Income.
CDHO Organization must meet all CDHO Housing qualification for ten (10) year period and residential units must satisfy affordability requirements for 10 year period.
If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the CHDO Housing criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF, equal to the CFF in effect when building permits were issued, would become due, with no interest thereon. Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Very Low Income Housing Housing constructed or expanded that will be made affordable to households earning fifty (50%) or less of the Area Median Income. Residential units must be maintained as affordable to Very Low Income households for a period of 10 years. If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the Very Low Income criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF would become due, with no interest thereon.
Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Shelters Any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary or transitional shelter for the homeless in general or for special populations of the homeless. (Examples include emergency shelters, transitional housing and Safe Havens)
No Charge
Recreational Buildings For residential projects, the CFF on a dwelling unit or room basis are deemed adequate for ancillary recreation buildings that are oriented and primary to the residential development. No Charge
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Mobile home park club houses, cabanas, weight rooms, lounges, and activity buildings.
Alterations & Additions Any alteration or addition to a residential structure provided that no new dwelling units are created. No Charge Farmworker Housing Housing constructed or expanded that will be used exclusively to house members of the farmworker community Application Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Affordable Housing Housing constructed or expanded that will be made affordable to households earning eighty percent (80%) or less of the Area Median Income.
Residential units must be maintained as affordable to persons earning 80% of less AMI households for a period of 10 years. If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the 80% AMI criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF would become due, with no interest thereon.
Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Single-Family Replacement &
Reconstruction
Any replacement or reconstruction of a residential structure that has been destroyed or demolished provided that no new dwelling units are created.
Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous residential structure. Non-transferrable.
The residential structure is located on the same property of the demolished or abandoned residential structure. No Charge
Multi-Family Replacement &
Reconstruction
Any replacement or reconstruction of a multi-family residential structure that has been destroyed or demolished provided that the square footage of the new structure is equal to or less than that of the previous structure and the number of units in the new structure is equal to or less than that of the previous structure. Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous multi-family residential structure. Non-transferrable.
The new multi-family residential structure is located on the same property of the demolished or abandoned multi-family residential structure.
No Charge
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TABLE 3 - CFF CREDITS AND EXEMPTIONS (Con’t.)
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS
(Prior To Issuance of a
Building Permit)
RESIDENTIAL
Replacement due to Eminent
Domain
Any replacement of an existing building that has been or shall be vacated due to eminent domain proceedings, or the threat of such proceedings.
Building permit for replacement structure must be applied for within two (2) years after the transfer of title or within two (2) years after the property has been vacated.
No additional dwelling units are created and no additional square footage is added. Use is not devoted to a higher-density capacity and/or does not result in the generation of additional peak hour trip ends. Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous building and land use type. The new building is located on the same property of the demolished or abandoned building. Non-transferrable.
Exception: If the new building is CFF Land Use that is intensified from the CFF Land Use of the previous building, the incremental difference between the new building CFF Land Use and the previous building CFF Land Use shall be due at building permit issuance. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
Time Sensitive
Sales & Construction Trailers Maximum term use of two (2) years. No Charge All Other Trailers All other types of temporary trailers are charged the full CFF. The CFF is refundable (less 2.5% administrative fee) if requested, in writing, within six (6) years of payment of the CFF.
CFF Charged
Refundable
Truck Loading Bays Canopied and enclosed and not used as staging area for storage or protection or product. No Charge Parking Garages Public and private garages. No Charge Agricultural Shade structures, lath houses, and netted areas. No Charge Outdoor Dining Patio Uncovered and enclosed dining areas. No Charge Commercial Replacement &
Reconstruction
Any replacement or reconstruction of a non-residential structure that has been destroyed or demolished. New building is located on the same property as the destroyed or demolished building. Based on prior CFF Land Use and building square footage. Non-transferrable.
Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous building and land use type. The new building is located on the same property of the demolished or abandoned building. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
COMMERCIAL
Tenant Improvements
(excluding Shell Buildings) and
Changes of Use
Any alteration or change of use to an existing building, if no new square footage is added. No refunds for diminished use capacities or reduced square footage. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
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TABLE 3 - CFF CREDITS AND EXEMPTIONS (Con’t.)
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS (Prior
to Issuance of a Building
Permit)
Tenant Improvements
in Shell Buildings and
Changes of Use
Tenant improvements within a shell building if the improved use is (1) devoted to the same CFF Land Use that the Shell Building paid or (2) is devoted to a CFF Land Use with a lower impact.
No refunds for diminished use capacities or reduced square footage. Exception: If tenant improvements are for a CFF Land Use that is intensified from what was paid for the Shell Building, the incremental difference between the Shell Building CFF Land Use and the Tenant Improvement CFF Land Use shall be due at building permit issuance. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
Replacement due to Eminent
Domain
Any replacement of an existing building that has been or shall be vacated due to threat of/or eminent domain proceedings. Building permit for replacement structure must be applied for within two (2) years after the transfer of title or within two (2) years after the property has been vacated.
No additional dwelling units are created and no additional square footage is added. The use is not devoted to a higher-density capacity and does not result in the generation of additional peak hour trip ends. No Charge
Time Sensitive
COMMERCIAL
Commercial/Industrial Relocation
Credit
Transfer of CFF credit from existing building to a new building. Project involves commercial and/or industrial job retention of at least twenty-five (25) jobs or redevelopment of blighted area. Beneficiary of the relocation credit must be the owner of the existing building or the existing building was demolished and paid CFF when rebuilt.
No Charge
CC Approval
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TABLE 4 - CFF DEFERRALS
TYPE DESCRIPTION QUALIFICATIONS
REQUIREMENTS
(Prior to Issuance of a
Building Permit)
Low Income
Housing
Payment of CFF is deferred for twenty (20) years (“Deferral Period”). No payments are due during the first five (5) years. Annual payments of principal and simple interest begin in the sixth (6th) year. Interest will not accrue during the first five (5) years. In the sixth (6th) year, simple interest will be calculated at the rate of 5%.
Interest may be waived with approval of the City Council. A lien is placed on the property.
If the property is sold or refinanced within the Deferral Period, the new buyer will be allowed to assume the Deferral Payment Agreement if the buyer continues to satisfy the affordability requirements. If the property is sold or refinanced within the Deferral Period and the buyer does not qualify to assume the Deferral Payment Agreement, the full CFF deferral, including interest, would become due immediately. Interest penalties apply if fees are not paid within the Deferral Period. CFF fee and accrued interest become immediately due if housing unit no longer meets affordability requirements.
Any housing unit that is affordable to Low Income Housing unit constructed by any person or entity.
The housing unit me must be purchased by, or rented to, a homebuyer earning between fifty-one and eighty percent
(51 – 80%) of the Area Median Income who will use it as their principal place of residence for the duration of the deferral time period. The units must be sold or rented at an affordable price, such that tenant does not pay more than 30% of adjusted household income for housing costs.
The affordability restrictions must be in place for 30 years. Application
Deferred Payment
Agreement and Notice
of Lien
Promissory Note
City Deed of Trust
CH&CDC Approval
City Manager Approval
if project meets all
requirements,
otherwise CC approval.
Commercial,
Industrial and
Multi-Family
Twenty percent (20%) of total CFF paid at building permit issuance. Remaining eighty percent (80%), plus interest, paid annually over five (5) years.
Interest is equal to the five percent (5%) or the Wall Street Journal Prime Rate in effect at the time of Agreement execution, whichever is greater.
Interest may be waived with approval of the City Council A lien is placed on the property.
If the property is sold or transferred within the deferral period, payment of the full CFF deferral, including interest, would become due immediately.
Interest penalties apply if fees are not paid within the deferral period. Any commercial, industrial or multi-family development project in which CFF is being assessed.
For those projects where a mitigated negative declaration or an Environmental Impact Report (EIR) has been certified, no CFF deferral shall be allowed to the extent that one (1) or more of the mitigation measures consists of payment of CFF or construction or installation of a public improvement, the cost of which, subject to funding availability, may be eligible for reimbursement of CFF.
Application
Deferral of CFF, Water
Connection and/or
Wastewater Capacity
Agreement and Notice
of Lien
Promissory Note
Deed of Trust
$250 Administrative
Fee
$500 Title Report Fee
CH&CDC Approval
City Manager Approval
if project meets all
requirements,
otherwise CC approval.
Single-Family
Residential
Payment of CFF, as well as water connection and/or waste water capacity fees, may be deferred until final inspection.
A lien is placed on the property.
If the property is sold or transferred within the deferral period, payment of the full CFF deferral would become due immediately.
Any single-family residence may apply for deferral Application Deferral of CFF, Water
Connection and/or
Wastewater Capacity
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Interest penalties apply if fees are not paid within the deferral period. Agreement and Notice of Lien
City Manager Approval
if project meets all
requirements,
otherwise CC approval
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TABLE 5 - CFF FEE SCHEDULE
2020-2021 CFF PROGRAM - Development within City Limits
Fee
Category
Unit
Measure Per Streets PublicTransp.
Parks & Air
Quality Police Fire General Gov’t. Admin Total
Single-Family Residential Dwelling Unit $ 6,822 $ 99 $ 6,248 $ 634 $ 395 $ 522 $ 296 $ 15,016 Multi-Family Residential Dwelling Unit 4,726 69 4,299 382 182 320 159 10,138 Senior Housing Dwelling Unit 4,116 37 4,193 372 178 314 113 9,323 Hotel/Motel Room 3,548 62 144 69 121 89 4,034
Retail <50,000 SF 1,000 SF 10,256 204 172 83 145 277 11,137 Retail 50,000-100,000 SF 1,000 SF 8,514 168 172 82 144 231 9,310 Retail 100,000-300,000 SF 1,000 SF 7,186 142 173 83 145 196 7,924 Retail >300,000 SF 1,000 SF 6,704 130 172 82 145 183 7,416 Medical Office 1,000 SF 12,956 259 287 138 240 357 14,237 General Office 1,000 SF 6,269 111 287 138 241 161 7,208 Hospital 1,000 SF 9,085 160 287 138 241 226 10,137
Daycare 1,000 SF 5,017 88 287 138 241 130 5,902
Church 1,000 SF 1,069 19 291 139 245 37 1,800
Nursing Home 1,000 SF 1,565 27 290 139 244 49 2,313
Industrial (Manufacturing) 1,000 SF 2,431 42 123 59 103 62 2,821 Industrial (Warehousing) 1,000 SF 1,704 30 124 59 103 46 2,066 2020-2021 CFF PROGRAM - Development within City’s Sphere of Influence Fee
Category
Unit
Measure Per Streets PublicTransp.
Parks & Air
Quality Police Fire General Gov’t. Admin Total
Single-Family Residential Dwelling Unit $ 7,417 $ 79 $ 1,504 $ 191 $ 9,191 Multi-Family Residential Dwelling Unit 5,338 57 953 130 6,478 Senior Housing Dwelling Unit 3,123 34 1,043 103 4,304
Hotel/Motel Room 3,739 39 56 3,834
Retail <50,000 SF 1,000 SF 10,669 112 155 10,936
Retail 50,000-100,000 SF 1,000 SF 8,883 93 130 9,106
Retail 100,000-300,000 SF 1,000 SF 7,530 80 111 7,720
Retail >300,000 SF 1,000 SF 7,034 76 103 7,213
Medical Office 1,000 SF 13,564 144 199 13,907
General Office 1,000 SF 6,639 69 101 6,810
Hospital 1,000 SF 9,500 100 142 9,743
Daycare 1,000 SF 5,357 57 83 5,496
Church 1,000 SF 1,282 13 27 1,323
Nursing Home 1,000 SF 1,808 19 34 1,861
Industrial (Manufacturing) 1,000 SF 2,584 27 39 2,650
Industrial (Warehousing) 1,000 SF 1,844 20 29 1,893
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APPENDIX A - DEFINITIONS
The intent and meaning of the terms that are used shall be as defined in these CFF Policies & Procedures except as specifically noted, revised or added.
Definitions – A
Accessory Dwelling Unit. An accessory dwelling unit (ADU) is a smaller, independent residential dwelling unit located on the same lot as a stand-alone (i.e., detached) single-family home or multi-family structure. ADUs go by many different names including accessory apartments, secondary suites, and granny flats. ADUs can be converted portions of existing homes (i.e., internal ADUs), additions to new or existing homes (i.e., attached ADUs), or new stand-alone accessory structures or converted portions of existing stand-alone accessory structures (i.e., detached ADUs).
Affordable Housing. Affordable Housing is a Qualified Occupant(s) earning not more than eighty percent (80%) of the Area Median Income (AMI) Applicant. The applicant for a building permit for which an impact fee is due pursuant to the provisions of these CFF Policies and Procedures.
Area Median Income. Area Median Income also known as AMI is the household income for the median/ middle income for a household in a given region.
Arterial. A moderate or high-volume street with four (4) to six (6) travel lanes which carries large volumes of traffic between areas in urban centers, with flow usually consisting of large, signaled intersections with other arterials and many collector roads.
Definitions – B
Banks. Full service banking institutions with or without drive up windows. (CFF Rate = Retail)
Building Inspection. The Building Safety Division of the Community & Economic Development Department for the City of Modesto.
Building Safety Division. The Building Safety Division of the Community & Economic Development Department for the City of Modesto.
Definitions – C
Capital Facilities Fee. Impact fees established to mitigate the impacts of new development as outlined in §66000 of the California Government Code for the purchase, construction, expansion, rehabilitation, or acquisition of public facilities.
Certificate of Occupancy. Final sign off of a building permit. #8..
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CHDO Housing. Shall mean housing found to be affordable to households earning sixty percent (60%) or less of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
CHDO Organization. A specific type of nonprofit organization that has been certified by HOME Investment Partnership Program (HOME) as a Community Housing Development Organization.
CFF Administrator. The Administrator of the Infrastructure Financing Programs for the City of Modesto.
Church. Structures primarily designed or used as a place of public worship. (CFF Rate = Church)
City. The City of Modesto.
City Attorney. The City Attorney, or his or her designee, of the City of Modesto.
City Council. The City Council of the City of Modesto (CC).
City Engineer. The City Engineer, or his or her designee, of the City of Modesto.
Collector. A low or moderate-capacity road, usually consisting of a mixture of signaled intersections with arterial roads and signals, circles or stop signs with other collector and local roads.
Commercial. Commercial and retail uses. (CFF Rate = Retail) Community & Economic Development. The Community & Economic Development Department of the City of Modesto.
Convenience Markets. Convenience markets, with or without on-site pumps and open 24 hours or extended hours. (CFF Rate = Retail)
Definitions – D
Daycare/School. An educational, vocational or daycare facility. (CFF Rate = Daycare)
Development Project. Any project undertaken for the purpose of development.
Development projects include projects involving issuance of a permit for construction or reconstruction but not a permit to operate.
Developer. See Applicant.
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Director. Director of Community and Economic Development.
Definitions – E
Expressway. A high-volume, access-controlled roadway with three classes consisting of four (4) to six (6) lanes where spacing between interchanges with arterial roadways is limited to one mile.
Definitions – F
Facilities. See Public Facilities
Farmworker. Agricultural workers are defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor.
Farmworker Housing. Housing dedicated to affordable housing for farmworkers.
Fee. A monetary exaction other than a tax or special assessment whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad-hoc basis, that is charged by a local agency to the applicant in conjunction with approval of a development project for the purposes of defraying all or a portion of the cost of public facilities related to the development project. This does not include fees specified in §66477, fees for processing applications for governmental regulatory actions or approvals, fees collected under development agreements adopted pursuant to Article 2.5 (commencing with §65864) of Chapter 4, or fees collected pursuant to agreements with redevelopment agencies which provide for their development of property in furtherance or for the benefit or a development project for which a redevelopment plan has been adopted pursuant to the Community Redevelopment Law (Part 1 (commencing with §33000) of Division 24 of the Health and Safety Code).
Fee Payer. See Applicant.
Finance. The Finance Department of the City of Modesto.
Definitions – G (Reserved)
Definitions – H
Hospital. A structure designed for health services, both inpatient and outpatient; that includes surgical care of the sick, injured or the physically ill and/or therapeutic treatment for the mentally ill. Included as an integral part of a hospital are laboratories, outpatient departments, training facilities, central services facilities, and hospital staff offices on the same site. The preceding ancillary uses are considered #8..
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“professional offices” if located off-site unless a multi-site campus is covered by a PD Zone or hospital uses. A separate set of offices on the same site for physicians is considered “professional offices.” (CFF Rate = Hospital) Definitions – I
Improvements. See Public Facilities.
Industrial Land Use. (CFF Rate = Industrial(Manufacturing)) Manufacturing, Light Industrial & Industrial Parks Uses:
Electronic assembly, paper products
Metal fabricator
Bottling plant
Cabinet shop
Machine shop
Sheet-metal shop
Welding shop
Wholesale shop
Printing plant
Mini-warehouse
Materials testing labors manufacturer
Food processor, brewery, bakery
Recycling facility
Burning operations for lumber and wood products
Junk handling, processing and storage
Landfill and waste products disposal or transfer station Manufacture, fabrication, processing, packaging and treatment of explosives, oil, great products, chemicals, and chemical products. Rock crushing
Pulp and paper mill
Reduction, processing, and storage or offal, dead animals, bones or similar materials
Septic tank and cesspool services
Stockyard
Tannery
Vehicle salvaging and wrecking
Mixed Industrial Uses
When a development project contains more than an incidental mixture of uses, the general types of uses should be segregated and treated separately for the purposes of calculating development fees.
Definitions – J
Junior Accessory Dwelling Unit. A Secondary unit to be constructed within the walls of the proposed or existing single-family residence.
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Definitions – L
Low Income Housing. Housing found to be affordable to households earning fiftyone to eighty (51 - 80%) percent of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
Definitions – M
Medium Density Residential. Duplex or triplex buildings located on a single lot designated for occupancy by two (2) or three (3) families. (CFF Rate = Multi-Family Residential)
Multi-Family Residential. Multiple family dwelling units of several types, including high and low rise apartments, high and low rise condominiums, and multi-family residential planned unit developments greater than a density of ten (10) units per acre. The category also applies to mobile homes. (CFF Rate = Multi-Family Residential)
Definitions – N
Nursing Home. Structures designated for use as a convalescent hospital, retirement home, or a twenty-hour care center for seven (7)or more persons in addition to members of the family. (CFF Rate = Nursing Home)
Definitions – O
Office (General). General and professional offices excluding medical offices. (CFF Rate = General Office)
Office (Medical). Offices and clinics devoted to the practice of medical and dental professions or providing medical or dental services, including pseudo-medical services, but excluding hospitals and nursing homes which are treated separately. (CFF Rate = Medical Office)
Definitions – P
Parks, Recreation & Neighborhoods. The Parks, Recreation & Neighborhoods Department of the City of Modesto.
Public Facilities. Public buildings include the following:
Public buildings including park, recreation, police, fire and administration buildings.
Facilities for storage, treatment, and distribution of nonagricultural water. Facilities for the collection, treatment, reclamation and disposal of water. Facilities for the collection and disposal or storm waters and for flood control purposes.
Facilities for the generation of electricity and the distribution of gas and electricity.
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Facilities for the distribution of information, including radio and communication like towers and satellite dishes.
Transportation and transit facilities, including but not limited to streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, parkways and related facilities.
Parks and recreation facilities, including bike trails, public landscape areas and community centers.
Public Works. The Public Works Department of the City of Modesto.
Definitions – Q (Reserved)
Definitions – R
Recreational Buildings. Ancillary recreational buildings that are oriented primarily to a residential development.
Restaurants (Fast Food). Fast food restaurants with or without sit-down facilities and with or without drive up windows. Generally food is ordered and taken to be consumed outside the restaurant building, however some on-site seating is usually provided. (CFF Rate = Retail)
Restaurants (Sit-Down – high turnover). Sit-down restaurants where food is ordered and consumed in the restaurants and customers generally stay less than one (1) hour. Sit-down restaurants typically serve breakfast, lunch or dinner and also include drinking establishments such as bars and cocktail lounges. (CFF Rate = Retail)
Restaurants (Sit-Down – low turnover). Sit-down restaurants which generally have turnover rates of one (1) hour or longer and typically do not serve breakfast, and may or may not serve lunch. (CFF Rate = Retail) Retail. Includes a wide range of retail service uses, both freestanding and in shopping centers, including but not limited to supermarkets, drug stores, department stores, general merchandise, building materials or lumber stores, specialty retail stores, discount stores, hardware/paint stores, video arcades, and new and used car sales, auto repair shops, and car washes. (CFF Rate = Retail) Definitions – S
Savings & Loans. Includes thrift and credit unions, with or without drive-up windows and which typically offer fewer financial services than banks and are smaller in gross floor area than banks. If a given Savings & Loan is 5,000 gross feet or more, or provides full banking services, it should be treated as a bank. (CFF Rate = Retail)
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Senior Housing Residential. Retirement communities restricted to adults or senior citizens, congregate care facilities, and similar residential uses. (CFF Rate = Senior Housing Residential)
Shelter. Any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary or transitional shelter for the homeless in general or for special populations of the homeless.
Single-Family Residential. Single-family detached homes on individual lots, such as in residential subdivisions, but could also be in planned developments. Density of development may vary, but is typically ten (10) dwellings per acre or less. (CFF Rate = Single-Family Residential)
Square Foot (sf). As used for the calculation of impact fees is the same as the square footage for determination of the issuance of building permits.
Definitions – T (Reserved)
Definitions – U
Utility Planning & Projects. The Utility Planning & Projects Department of the City of Modesto.
Definitions – V (Reserved)
Very Low Income Housing. Shall mean housing found to be affordable to households earning fifty percent (50%) or less of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
Definitions – W
Warehouse Distribution & Heavy Land Use. Facilities in which the primary activity is the storage of materials or in which the primary activity is receiving and shipping of materials. Uses which are considered to be in this category include freight, warehousing, corporation yard, freight yard, equipment rental yard, moving and storage services, bulk feed storage and lumberyard. (CFF Rate = Industrial (Warehousing)
Definitions X,Y, & Z (Reserved)
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APPENDIX B - STREET EXACTIONS POLICY
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EXHIBIT A
City of Modesto Capital Facilities Fees
Policies and Procedures
Amended Policies and Procedures Adopted on September Month 22X, 202020XX
City Council Resolution 202020XX-407
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TABLE OF CONTENTS
INTENT ..........................................................................................................................................................1 ADMINISTRATIVE ORGANIZATION & RESPONSIBILITY..................................................................................1 CFF Administrator .....................................................................................................................................1 ADMINISTRATIVE REQUIREMENTS ...............................................................................................................1 Factors Considered....................................................................................................................................1 Annual Report ...........................................................................................................................................1 Five-Year Report........................................................................................................................................2 Annual Inflationary Adjustments ..............................................................................................................3 CFF Program Updates................................................................................................................................3 Land Value Updates ..................................................................................................................................3 DETERMINATION OF CFF ..............................................................................................................................3 COLLECTION OF FEES ....................................................................................................................................4 Calculation and Collection of CFF..............................................................................................................4 Payments...................................................................................................................................................4 Refunds .....................................................................................................................................................4 Protests .....................................................................................................................................................4 Appeals......................................................................................................................................................4 EXEMPTIONS, DEFERRALS AND CREDITS ......................................................................................................4 Credits and Exemptions ............................................................................................................................5 Deferrals....................................................................................................................................................5 DEVELOPMENT DEDICATIONS ......................................................................................................................5 Residential Streets ....................................................................................................................................5 Expressways ..............................................................................................................................................5 Arterial & Major Collector Streets.............................................................................................................6 REIMBURSEMENT & OTHER RELATED AGREEMENTS ...................................................................................6 Initial Request for Reimbursement ...........................................................................................................7 Reimbursement Agreement......................................................................................................................7 Timing........................................................................................................................................................7 Notice to Proceed .....................................................................................................................................7 Reimbursement Payments........................................................................................................................7 CONSTRUCTION CONTRACTOR REQUIREMENTS..........................................................................................7 Three Competitive Bids .............................................................................................................................8 Licensing....................................................................................................................................................8 Payment of Prevailing Wages....................................................................................................................8 Indemnification .........................................................................................................................................8 Overtime & Change Orders.......................................................................................................................8 TABLE 1 - CFF LAND USE CATEGORIES ........................................................................................................10 #8..
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TABLE 2 - CFF UNDEFINED LAND USES .......................................................................................................11 TABLE 3 - CFF CREDITS AND EXEMPTIONS..................................................................................................12 TABLE 4 - CFF DEFERRALS ...........................................................................................................................15 TABLE 5 - CFF FEE SCHEDULE ......................................................................................................................17 APPENDIX A - DEFINITIONS........................................................................................................................19 #8..
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INTENT
In 1987, the City of Modesto established a Capital Facilities Fee (CFF) Program to mitigate the impacts of new development as outlined in §6600 of the California Government Code. The CFF collected may be used for the purchase, construction, expansion, rehabilitation or acquisition of public facilities. New development projects that are assessed a CFF include, but are not limited to, new building and construction projects, commercial building additions and changes of use to more intensive land use categories.
The following policies and procedures (Policies and Procedures) shall guide in the administration of the City of Modesto CFF Program. This administrative manual elaborates upon the administrative directions contained in the Modesto’s Municipal Code, California State Code and City Council Resolutions.
ADMINISTRATIVE ORGANIZATION & RESPONSIBILITY
CFF Administrator
The Administrator of Infrastructure Financing Programs shall serve as the CFF Administrator and is charged with the overall administration and oversight of the CFF Program. The CFF Administrator has the responsibility of ensuring all issues relating to the CFF Program are managed in accordance with applicable rules and regulations.
ADMINISTRATIVE REQUIREMENTS
Factors Considered
The City Council has determined that the CFF adopted by the City of Modesto shall be based on the following two factors: (i) reflect full cost allocation to each category of new development of capital facilities necessary to serve growth; and (ii) be reviewed annually to consider an escalation to account for inflation.
Annual Report
Annual reporting of a local agency’s impact fee program is required by Government Code §66006. The impact fees collected must be segregated from general and other funds containing fees collected for other improvements. Interest on each impact fee fund or account must be credited to that fund or account and be used only for the purpose for which the impact fee was collected.
California Government Code §66006(b) requires that a local agency make the following information available to the public for each separate impact fee fund on an annual basis and that the local agency review that information at a public meeting. The law also requires the annual report include the following information for the prior fiscal year and be made available within 180 days after the last day of each fiscal year:
Description of the type of impact fee in the account or fund. #8..
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Identification of the amount of the impact fee.
The beginning and ending balance of the account or fund. The amount of impact fees collected and interest earned. Identification of each public improvement on which impact fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with the impact fee.
Identification of an approximate date by which the construction of the public improvements will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.
Description of each interfund transfer or loan made from the account or fund, including the public improvements on which the transferred or loaned impact fees were expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of impact funds made to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.
In addition to the requirements above, the City Council has determined that the annual report should also contain the following information:
The cumulative inventory of exempt residential units and the percent of anticipated total exempt units at build-out.
A comparison of cumulative exempt units to total units built since 1989. During recessions and other times of low production of market-rate housing, it is acknowledged that the cumulative, exempt units may exceed two percent (2%) of the total units built.
Five-Year Report
California Government Code §66001(d) also requires that the local agency make all of the following findings every fifth year with respect to that portion of the account remaining unexpended, whether committed or uncommitted:
Identify the purpose to which the impact fee is to be allocated. Demonstrate a reasonable relationship between the impact fee and the purpose for which is it charged.
Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements.
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
In any action imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable #8..
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relationship between the amount of the impact fee and the cost of the public facility or portion of the public facility attributable to the development on which the impact fee is imposed.
Annual Inflationary Adjustments
In an effort to ensure that all fees collected are adequate, an annual inflationary adjustment is applied each year to the CFF Program. The annual inflationary adjustments are:
Administratively adjusted annually by the CFF Administrator or his/her designee for all land use categories to account for inflation or deflation. Based on the annual change in the San Francisco Bay Area Engineering News Record Construction Cost Index through the month of December the year preceding each inflationary adjustment.
Becomes effective on or about July 1st of each year.
The City will provide at least one (1) meeting with stakeholders and other interested parties at least sixty (60) days in advance of the effective date of the adjustment. While the annual adjustment is an administrative function, the item should be submitted to the City Council for their information.
CFF Program Updates
The imposition of development impact fees requires identification of the facilities to be provided and the fee amounts imposed must not exceed the cost of the necessary facilities.
To fulfill this requirement, the City shall undertake periodic studies to identify the facilities needed and their costs.
Land Value Updates
In an effort to keep pace with market conditions affecting the City’s ability to construct public facilities, the City shall annually update the land values of its CFF Program. The intent of the annual updates is to ensure that new development pays for its share of future infrastructure necessary to serve the needs of the City.
DETERMINATION OF CFF
CFF is based on specific land use categories. As a matter of policy, a broad range of uses have been generally categorized as being residential, commercial, office or industrial. Table 1 identifies the approved land use categories. Full definitions of approved land use categories can be found in Appendix A. Undefined uses, as outlined in Table 2, are charged at rates that are determined by the CFF Administrator using similar land use determinations.
An applicant may request a reduction in the CFF if it is determined that the project will generate a lower number of trips than the trip generation rates that were used as the basis for the current CFF. Any such fee reduction must be based on a trip generation study, using accepted methodology, as determined by the City. The fee reduction shall be no greater than #8..
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a proportionate reduction in trips demonstrated in the trip generation study. Any such reduction shall be approved by the City Manager.
COLLECTION OF FEES
Calculation and Collection of CFF
As codified in the Modesto Municipal Code, the CFF is collected at the time of building permit issuance. For fee assessments, the Director of the Community and Economic Development Department has the final authority on the determination of land use.
Payments
CFF is collected by the Building Safety Division prior to issuance of a building permit. In the event the payment subsequently proves to be invalid due to insufficient funds, improper execution or for any other reason, the Finance Department shall notify the fee payer, the contractor, and the property owner and a hold shall be placed on the permit and subsequent inspections until the required CFF is paid.
Refunds
If a building permit expires, is revoked, voluntarily surrendered or voided, and no construction or improvement of land has commenced, then the fee payer is entitled to a refund, without interest and less a two and one-half percent (2.5%) administrative fee.
Requests for refunds must be made in writing and addressed to the CFF Administrator.
Refunds shall be issued within four (4) weeks of the written request.
Protests
In the event a fee payer agrees to pay CFF in protest at the time of building permit issuance, a notification of the protested payment must be made in writing to the CFF Administrator at the time the fees are paid. The protest shall be scheduled for review by the CFF Review Committee and a written response shall be sent to the fee payer.
Appeals
Any individual calculation of the CFF made may be appealed in accordance with the Modesto Municipal Codes 1-4.01 – 1.4.05. Appeals shall be limited to disputes regarding the calculation of CFF due.
EXEMPTIONS, DEFERRALS AND CREDITS
The City of Modesto supports economic development through the growth of Modesto businesses. It also encourages the construction Very Low and Low Income Affordable Housing development projects within the City. CFF deferral, credit and exemption programs #8..
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benefit economic growth and development by allowing the deferral, credit and/or waiver of impact fees.
Credits and Exemptions
In some situations, credits are provided to acknowledge that the expansion, replacement or reconstruction of a building will have no additional impact on facilities needed as a result of new development. Exemptions are also provided to foster the development of residential units affordable to Very Low Income households, Affordable Housing for persons earning 80% of the Area Median Income (AMI), as well as certain qualifying residential units affordable to Low Income households. CFF Credit and Exemption descriptions, qualifications and requirements are provided in Table 3. With respect to Very Low and Low Income Affordable Housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. However, it is acknowledged that during recessions and other times of low production of market-rate housing, the cumulative, exempt units may exceed two percent (2%) of the total units built. Exemptions that meet the requirements of these Policies and Procedures, including the attached Tables, may be approved by the City Manager. The City Manager, in his or her discretion, may refer any exemption application to the City Council for action. However, any exemptions granted above the two (2%) threshold described above require the approval of the City Council.
Deferrals
The CFF Program allows for two types of deferrals. The first allows non-residential developers to pay a portion of the CFF at the time of building permit issuance and defer payment of the balance over a five (5) year period with interest. The second deferral allows developers of Low Income Housing units to defer payment of CFF for a period of time, not to exceed twenty (20) years, with interest. Table 4 identifies the CFF deferral program guidelines for Low Income Housing and non-residential development projects. All deferrals require an agreement with the City, along with a promissory note and deed of trust recorded on the property to secure payment of the CFF, prior to building permit issuance. CFF Deferrals that meet the requirements of these Policies and Procedures, including the attached Tables, may be approved by the City Manager. The City Manager, in his or her discretion, may refer any exemption application to the City Council for action.
DEVELOPMENT DEDICATIONS
Residential Streets
The collector and local streets required by new development shall be dedicated and improved by the abutting developer in accordance with City Standard Specifications.
Expressways
Expressway improvements shall be constructed as required by the conditions of approval. #8..
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Resolution No. 2020-407 Page 6
The developer shall be reimbursed the cost of said improvements and right-ofway dedication pending the availability of CFF funds and provided funding for said improvements are included in the CFF Program.
All reimbursements shall be detailed in a CFF Reimbursement Agreement in advance of construction or dedication in accordance with the municipal code. When interim improvements are required to facilitate current development prior to future expressway improvements, the interim improvements shall be funded and provided by the abutting developer.
When extra facilities are required specifically for a particular development at hand (i.e.: deceleration/acceleration lanes, slip ramps, etc.), the extra facilities shall be funded and provided by the abutting developer without reimbursement.
Arterial & Major Collector Streets
Arterial and major collector streets shall be constructed per City Standard Specifications. A standard width of forty (40) feet shall be dedicated and improved to City Standard Specifications. In all cases described in this section, the forty (40) foot width shall be measured from the new property line on each side of the street towards the street centerline. This dedication is a requirement of development and not subject to reimbursement.
When a developer is required to dedicate and improve more than the required forty (40) feet, the cost of right-of-way and improvements in excess of forty (40) feet shall be reimbursed to the developer pending the availability of CFF funds and provided funding for said improvements are included in the CFF Program. All reimbursements shall be detailed in a CFF Reimbursement Agreement in advance of construction or dedication in accordance with the municipal code. When there is an existing street, where the forty (40) feet dedication and improvements have been previously made, any additional dedication and improvements shall be subject to appropriate reimbursement to the developer. When there is an existing street and if the streets have not been previously improved to City Standard Specifications, only the dedication or improvements in excess of forty (40) feet will be subject to the appropriate reimbursement. When extra facilities are required specifically for a particular development at hand (i.e.: deceleration/acceleration lanes, slip ramps, etc.), the extra facilities shall be funded and provided by the abutting developer without reimbursement.
The City’s Standard Specifications can be found online at www.modestogov.com. Appendix B details the City’s Street Exaction Policy.
REIMBURSEMENT & OTHER RELATED AGREEMENTS
The planning contained in the City’s Capital Improvement Program (CIP) and the CFF Program shall guide the amount and the schedule of reimbursements to be paid from CFF funds for reimbursement. Prior to commencement of any work that is eligible for reimbursement, a #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 7
Reimbursement Agreement between the developer and the City must be approved per Modesto Municipal Code §8-3.102. A Reimbursement Agreement will be required where the development occurs fronting a planned CFF fund project, or which required CFF funded work off-site. All such work shall be done by developer advances and will be subject to reimbursement pursuant to the terms of the Reimbursement Agreement.
Initial Request for Reimbursement
It is the obligation of the developer, landowner and/or the developer’s engineer to submit a request to the CFF Administrator for reimbursement. Requests will not be granted if the dedication or improvements have already been made or started prior to execution of a Reimbursement Agreement. Each request shall include:
An Engineer’s Estimate of the work to be performed that is eligible for reimbursement.
All exhibits relating to the improvements or right-of-way including the plat and, where applicable, closure calculations.
Design costs incurred prior to the execution of the Reimbursement Agreement for completed and accepted City-funded facilities as determined and approved by the CFF Administrator.
Reimbursement Agreement
Prior to the issuance of a construction permit and recording of a final map for dedication, the developer will be required to enter into all necessary agreements in a form provided by the City and consistent with these Policies and Procedures. All agreements will be reviewed and approved as to form by the CFF Administrator, City Attorney and others as the City deems appropriate. City Council approval shall be required for all reimbursements over $49,999.
Timing
The planning contained in the CFF Program and the City’s annual adopted Capital Improvement Program shall guide the amount and the schedule of reimbursements to be paid from CFF funds. Furthermore, the CFF Administrator shall determine the fiscal year(s) in which funds will become available and appropriate for reimbursement.
Notice to Proceed
Once the appropriate agreement(s) are executed, a Notice to Proceed shall be issued by the CFF Administrator to the developer to commence construction of reimbursable improvements.
Reimbursement Payments
Upon completion, verification of invoices and acceptance of improvements, reimbursements shall be issued from the applicable CFF fund in the manner set forth in the Reimbursement Agreement.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 8
CONSTRUCTION CONTRACTOR REQUIREMENTS
In retaining construction contractors for work which is reimbursable by the City of Modesto and where a Reimbursement Agreement (or other similar agreement) with the City is less than $300,000.00, the developer shall abide by the following bid process:
Three Competitive Bids
The developer shall provide three (3) competitive bids. If the developer desires to award to a contractor other than the low bidder, a written request must be submitted to the City. The City may allow this if the developer can provide adequate justification.
Licensing
The developer shall make sure that all contractors and subcontractors are licensed in accordance with §7000 through §7145 inclusive, of the California Business and Professions Code and maintain adequate insurance for any work or services performed. Developer, its contractors and subcontractors shall have and maintain a City business license during the term of any agreement.
Payment of Prevailing Wages
In accordance with California Labor Code §1770, developer shall require the payment of prevailing wages based on the rates determined by the California Director of Industrial Relations. Unless otherwise directed by the City, developer’s construction schedule shall provide adequate time for completion of the work such that no holiday or overtime labor shall be required. The City shall not reimburse developer for any labor costs which exceed the normal and customary straight time rates as described in the City of Modesto General Provisions, §4.19, for the work performed unless the City authorizes the use of overtime or legal holiday time, in advance and in writing.
The developer shall maintain certified payroll records for all labor costs incurred on all City reimbursable work for a minimum period of four (4) years from the issuance of the Notice of Completion. Said payroll records shall be made available to the City or any state regulatory agency for review, audit and inspection or copying upon request.
Indemnification
Developer shall indemnify and hold the City harmless for ensuring that the project is bid and constructed in accordance with City standards, and in compliance with all applicable local, state and federal laws. Developer shall also indemnify and hold the City harmless for any damages, claims or actions arising out of said construction activities in a form approved by the City Attorney and the Risk Manager.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 9
Overtime & Change Orders
The City shall retain the right to be in attendance to inspect all bids and change orders. Any extra work or charges during construction for which reimbursement is sought shall be justified and documented. Except in the case of an emergency, any such charges shall be approved by the City in advance and in writing. In the case of an emergency, any such charges may be authorized by the City if the developer provides adequate justification that an emergency existed and that the extra work or charges incurred were reasonable. Said justification shall be provided within a reasonable time after the emergency ends and prior to reimbursement for any such charges.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 10
TABLE 1 - CFF LAND USE CATEGORIES
CATEGORY DESCRIPTION
RESIDENTIAL
Single-Family Single-family detached homes on individual lots. Density of development is typically ten (10) dwellings per acre or less.
Multiple-family dwelling units and multi-family residential planned unit developments greater than a density of ten (10) units per acre. Duplexes High & Low Rise Apartments
Triplexes High & Low Rise Condominiums
Multi-Family
Mobile Homes Medium-Density Developments
Senior Housing Retirement communities restricted to adults or senior citizens, congregate care facilities, and similar residential uses.
Hotel Hotel and motel rooms
COMMERCIAL
Retail Retail, including, but not limited to:
Convenience Markets General Merchandise Paint Stores < 49,999 SF Supermarkets Building Materials Hardware Stores 50,000 – 99,999 SF Drug Stores Lumber Stores Video Arcades Department Stores
New & Used Car Sales
Nursery Sales/Displays
Specialty Retail Stores
Racquetball Courts
Discount Stores
Health Club
Locker Rooms
and Showers
Restaurants, including, but not limited to:
Fast Food
Sit Down Restaurants
Bars
Cocktail Lounges
Drinking
Establishments
Covered and
Enclosed Patio
Dining
Banks:
Banks Savings & Loans Credit Unions
Other:
100,001 – 299,999 SF
> 300,000 SF
Storage facilities, also known as “mini” storage facilities for personal items and not associated with industrial use.
COMMERCIAL - OTHER
Church Structures primarily designed as a place for worship. Also includes church multi-purpose rooms.
Daycare & School An educational, vocational, daycare facility or gyms for private schools.
Hospital
Structures designed for healing services, both in-patient and out-patient, that includes surgical care of the sick, injured, or physically ill and/or therapeutic treatment for the mentally ill. Included as an integral part of a hospital are laboratories, out-patient departments, training facilities, central service facilities, and hospital staff offices on the same site. The preceding ancillary uses are considered “professional offices” if located off-site, unless a multi-site campus is covered by a P-D zone or hospital uses. Separate sets of offices on the same site for physicians are considered “professional offices”.
CATEGORY DESCRIPTION
COMMERCIAL - OTHER
Nursing Home
Structures designed for use as a convalescent hospital, retirement home, or a twenty-four (24) hour care center for seven (7) or more persons in addition to members of the family.
OFFICE
Medical Office
Offices and clinics devoted to the practice of medical professions or providing medical services, including pseudo-medical services, but excluding hospitals and nursing homes which are treated separately.
General Office All other types of general and professional offices.
INDUSTRIAL
Facilities in which the primary activity is the production of finished items through manufacture, fabrication, processing, packaging, or treatment of raw materials or parts, except heavy industrial uses. Uses which are considered include:
Electronics Assembly Food Processor, Brewery, or Bakery Paper Products Junk Handling, Processing, or Storage Metal Fabricator Septic Tank and Cesspool Storage
Bottling Plant Vehicle Salvaging and Wrecking
Cabinet Shop
Machine Shop
Burning Operations for Wood and Lumber
Products
Sheet-Metal Shop
Pulp/Paper Mill
Landfill, Waste Product Disposal, and
Transfer Stations
Welding Shop
Wholesale Shop
Reduction, Processing, Storage of Offal,
Dead Animals, Bones, or similar materials
Recycling Facility
Rock Crushing
Stockyard
Manufacture, Fabrication, Processing,
Treatment of Explosives, Great Products,
Chemicals, Chemical Products, and Oil
Tannery Material Testing, Labor Manufacturer
Equipment Rental
Yard
Manufacturing,
Light Industrial, &
Industrial Park
Note: When a development proposal contains more than an incidental mixture of mixed industrial uses, the general type of uses should be segregated and treated separately.
Facilities in which the primary activity is the storage, shipping or receiving of materials. Uses in this category include, but are not limited to:
Freight Moving and Storage Services
Warehousing Bulk Feed Storage
Warehousing,
Distribution,
& Heavy Industrial
Corporation Yard Greenhouses, Barns, and Silos
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CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 11
Freight Yard
Lumberyard
Sand, Gravel, and Building Materials
Dealer
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 12
TABLE 2 - CFF UNDEFINED LAND USES
BUILDING USE DESCRIPTION
Shell Buildings
Builders will often apply for a building permit to construct the “shell” of a building. The shell use shall be determined at the time of building permit issuance. The first tenant improvements to the shell building shall be charged according to land use.
Roof Structures When an open area exists and a roof structure is added, 100% of the total CFF shall be charged if the structure is supported by the addition of one (1) or more side walls. 50% of the total CFF shall be charged if the structure has no side walls.
Multiple Use Structures
With the exception of commercial uses, if there is more than one (1) primary land use within a building, and the applicant can document that a secondary land use accounts for more that fifteen percent (15%) of the gross floor area of the structure, then the CFF shall be calculated separately for each use and the results summed.
Canopy Construction
When an open area exists and a canopy structure is added, 100% of the total CFF shall be charged if the canopy is enclosed on three (3) or more sides and 50% of the total CFF shall be charged if the canopy is enclosed on one (1) or two (2) sides. Canopied business or storefront entryways and freestanding membrane canopies with no sides are exempt.
Mezzanines When a second floor open area or balcony exists, 100% of the total CFF shall be charged.
Change of Use for Existing Buildings
With the exception of shell buildings, any alteration or change of use to an existing building does not trigger the payment of CFF provided that no additional square footage is added. If additional square footage is added, the CFF shall be charged based on the additional square footage and land use. Should the change of use fall within a lower land use category, no refunds or credits for the previously paid CFF shall be made.
Ancillary Recreation Buildings The CFF paid on the dwelling unit or room basis is deemed adequate for ancillary recreation buildings such as mobile home clubhouses, cabanas, weight rooms, lounges, or activity buildings which are primarily oriented to the residential development.
Accessory Dwelling Unit
California law (Government Code §65852.2) exempts Accessory Dwelling Units (ADU) less than 750 sq. ft. from local impact fees and requires that fees for an ADU of 750 sq. ft. or greater must be charged proportionately in relation to the square footage of the primary dwelling unit. For example, if an ADU is 900 square feet and the primary dwelling unit is an 1,800 square foot single family home, the impact fees can’t be greater than 50% of the single-family CFF rate. Fee Calculation: (900 sq. ft./1,800 sq. ft.) * $15,016 = $7,508 (50% of the single-family CFF rate). However, in no event shall the impact fees for the ADU exceed the CFF rate for Multi-Family residential.
CFF ADU Impact Fee Example*
Primary dwelling gross floor area (sq. ft.) 100%
Proposed Accessory Dwelling Unit Size (sq. ft.) 50%
ADU Impact Fee Total $7,508.00
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 13
Junior Accessory Dwelling Unit
California law (Government Code 65852.22) allows for the creation of junior accessory dwelling units (JADU) in single-family residential zones. The codeState law limits the number of JADUs to one per residential lot zoned for single-family residecesnts with a single-family residence built, proposed to be built, on the lot. Similar to the ADU any JADU under 750 sq. ft. is exempt from impact fees.
California law (Government Code §66323 (a)) allows for one Accessory Dwelling Unit (ADU) and one Junior Accessory Dwelling Unity (JADU) per lot with a proposed or existing single-family dwelling.
TABLE 3 - CFF CREDITS AND EXEMPTIONS
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS
(Prior To Issuance of a
Building Permit)
RES
IDE
NTI
AL
Accessory Dwelling Unit Second dwelling unit located adjacent or connected a single-family dwelling unit. Units less than 750 sq. ft.
No Charge
Junior Accessory Dwelling Unit Second dwelling unit connected to a single-family dwelling unit. Units less than 75500 sq. ft.
No Charge
Very Low and Low Income Housing Any Very Low and Low Income housing units constructed or expanded by the Housing Authority of the County of Stanislaus or by any entity in which the Housing Authority is a major partner. Application
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
CHDO Housing Housing constructed or expanded by a CHDO Organization that will be made affordable to households earning sixty (60%) or less of the Area Median Income.
CDHO Organization must meet all CDHO Housing qualification for ten (10) year period and residential units must satisfy affordability requirements for 10 year period.
If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the CHDO Housing criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF, equal to the CFF in effect when building permits were issued, would become due, with no interest thereon. Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Very Low Income Housing Housing constructed or expanded that will be made affordable to households earning fifty (50%) or less of the Area Median Income. Residential units must be maintained as affordable to Very Low Income households for a period of 10 years. If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the Very Low Income criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF would become due, with no interest thereon.
Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Shelters Any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary or transitional shelter for the homeless in general or for special populations of the homeless. (Examples include emergency shelters, transitional housing and Safe Havens)
No Charge
Recreational Buildings For residential projects, the CFF on a dwelling unit or room basis are deemed adequate for ancillary recreation buildings that are oriented and primary to the residential development. No Charge
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 14
Mobile home park club houses, cabanas, weight rooms, lounges, and activity buildings.
Alterations & Additions Any alteration or addition to a residential structure provided that no new dwelling units are created. No Charge Farmworker Housing Housing constructed or expanded that will be used exclusively to house members of the farmworker community Application Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Affordable Housing Housing constructed or expanded that will be made affordable to households earning eighty percent (80%) or less of the Area Median Income.
Residential units must be maintained as affordable to persons earning 80% of less AMI households for a period of 10 years. If a resale or refinance occurs within the ten (10) year period, the new buyer will be allowed to assume the remainder of the exemption if the buyer meets the 80% AMI criteria.
Staff reports for exemption request shall indicate the cumulative inventory of exempt units and the percent of anticipated total exempt units at build out. The staff report shall also provide a comparison of units to total units built since 1989. If a resale or refinance occurs within the ten (10) year period and the new buyer does not qualify for the exemption, full payment of CFF would become due, with no interest thereon.
Application
Agreement, Promissory
Note, Deed of Trust
CH & CDC Approval
City Manager Approval if
project meets all
requirements, otherwise CC
approval.
Single-Family Replacement &
Reconstruction
Any replacement or reconstruction of a residential structure that has been destroyed or demolished provided that no new dwelling units are created.
Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous residential structure. Non-transferrable.
The residential structure is located on the same property of the demolished or abandoned residential structure. No Charge
Multi-Family Replacement &
Reconstruction
Any replacement or reconstruction of a multi-family residential structure that has been destroyed or demolished provided that the square footage of the new structure is equal to or less than that of the previous structure and the number of units in the new structure is equal to or less than that of the previous structure. Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous multi-family residential structure. Non-transferrable.
The new multi-family residential structure is located on the same property of the demolished or abandoned multi-family residential structure.
No Charge
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 15
TABLE 3 - CFF CREDITS AND EXEMPTIONS (Con’t.)
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS
(Prior To Issuance of a
Building Permit)
RESIDENTIAL
Replacement due to Eminent
Domain
Any replacement of an existing building that has been or shall be vacated due to eminent domain proceedings, or the threat of such proceedings.
Building permit for replacement structure must be applied for within two (2) years after the transfer of title or within two (2) years after the property has been vacated.
No additional dwelling units are created and no additional square footage is added. Use is not devoted to a higher-density capacity and/or does not result in the generation of additional peak hour trip ends. Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous building and land use type. The new building is located on the same property of the demolished or abandoned building. Non-transferrable.
Exception: If the new building is CFF Land Use that is intensified from the CFF Land Use of the previous building, the incremental difference between the new building CFF Land Use and the previous building CFF Land Use shall be due at building permit issuance. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
Time Sensitive
Sales & Construction Trailers Maximum term use of two (2) years. No Charge All Other Trailers All other types of temporary trailers are charged the full CFF. The CFF is refundable (less 2.5% administrative fee) if requested, in writing, within six (6) years of payment of the CFF.
CFF Charged
Refundable
Truck Loading Bays Canopied and enclosed and not used as staging area for storage or protection or product. No Charge Parking Garages Public and private garages. No Charge Agricultural Shade structures, lath houses, and netted areas. No Charge Outdoor Dining Patio Uncovered and enclosed dining areas. No Charge Commercial Replacement &
Reconstruction
Any replacement or reconstruction of a non-residential structure that has been destroyed or demolished. New building is located on the same property as the destroyed or demolished building. Based on prior CFF Land Use and building square footage. Non-transferrable.
Satisfactory documentation must be presented to the CFF Administrator of the existence of the previous building and land use type. The new building is located on the same property of the demolished or abandoned building. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
COMMERCIAL
Tenant Improvements
(excluding Shell Buildings) and
Changes of Use
Any alteration or change of use to an existing building, if no new square footage is added. No refunds for diminished use capacities or reduced square footage. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 16
TABLE 3 - CFF CREDITS AND EXEMPTIONS (Con’t.)
TYPE DESCRIPTION & QUALIFICATIONS
REQUIREMENTS (Prior
to Issuance of a Building
Permit)
Tenant Improvements
in Shell Buildings and
Changes of Use
Tenant improvements within a shell building if the improved use is (1) devoted to the same CFF Land Use that the Shell Building paid or (2) is devoted to a CFF Land Use with a lower impact.
No refunds for diminished use capacities or reduced square footage. Exception: If tenant improvements are for a CFF Land Use that is intensified from what was paid for the Shell Building, the incremental difference between the Shell Building CFF Land Use and the Tenant Improvement CFF Land Use shall be due at building permit issuance. Exception: Additional square footage added shall be subject to payment of applicable CFF at building permit issuance. No Charge
Replacement due to Eminent
Domain
Any replacement of an existing building that has been or shall be vacated due to threat of/or eminent domain proceedings. Building permit for replacement structure must be applied for within two (2) years after the transfer of title or within two (2) years after the property has been vacated.
No additional dwelling units are created and no additional square footage is added. The use is not devoted to a higher-density capacity and does not result in the generation of additional peak hour trip ends. No Charge
Time Sensitive
COMMERCIAL
Commercial/Industrial Relocation
Credit
Transfer of CFF credit from existing building to a new building. Project involves commercial and/or industrial job retention of at least twenty-five (25) jobs or redevelopment of blighted area. Beneficiary of the relocation credit must be the owner of the existing building or the existing building was demolished and paid CFF when rebuilt.
No Charge
CC Approval
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 17
TABLE 4 - CFF DEFERRALS
TYPE DESCRIPTION QUALIFICATIONS
REQUIREMENTS
(Prior to Issuance of a
Building Permit)
Low Income
Housing
Payment of CFF is deferred for twenty (20) years (“Deferral Period”). No payments are due during the first five (5) years. Annual payments of principal and simple interest begin in the sixth (6th) year. Interest will not accrue during the first five (5) years. In the sixth (6th) year, simple interest will be calculated at the rate of 5%.
Interest may be waived with approval of the City Council. A lien is placed on the property.
If the property is sold or refinanced within the Deferral Period, the new buyer will be allowed to assume the Deferral Payment Agreement if the buyer continues to satisfy the affordability requirements. If the property is sold or refinanced within the Deferral Period and the buyer does not qualify to assume the Deferral Payment Agreement, the full CFF deferral, including interest, would become due immediately. Interest penalties apply if fees are not paid within the Deferral Period. CFF fee and accrued interest become immediately due if housing unit no longer meets affordability requirements.
Any housing unit that is affordable to Low Income Housing unit constructed by any person or entity.
The housing unit me must be purchased by, or rented to, a homebuyer earning between fifty-one and eighty percent
(51 – 80%) of the Area Median Income who will use it as their principal place of residence for the duration of the deferral time period. The units must be sold or rented at an affordable price, such that tenant does not pay more than 30% of adjusted household income for housing costs.
The affordability restrictions must be in place for 30 years. Application
Deferred Payment
Agreement and Notice
of Lien
Promissory Note
City Deed of Trust
CH&CDC Approval
City Manager Approval
if project meets all
requirements,
otherwise CC approval.
Commercial,
Industrial and
Multi-Family
Twenty percent (20%) of total CFF paid at building permit issuance. Remaining eighty percent (80%), plus interest, paid annually over five (5) years.
Interest is equal to the five percent (5%) or the Wall Street Journal Prime Rate in effect at the time of Agreement execution, whichever is greater.
Interest may be waived with approval of the City Council A lien is placed on the property.
If the property is sold or transferred within the deferral period, payment of the full CFF deferral, including interest, would become due immediately.
Interest penalties apply if fees are not paid within the deferral period. Any commercial, industrial or multi-family development project in which CFF is being assessed.
For those projects where a mitigated negative declaration or an Environmental Impact Report (EIR) has been certified, no CFF deferral shall be allowed to the extent that one (1) or more of the mitigation measures consists of payment of CFF or construction or installation of a public improvement, the cost of which, subject to funding availability, may be eligible for reimbursement of CFF.
Application
Deferral of CFF, Water
Connection and/or
Wastewater Capacity
Agreement and Notice
of Lien
Promissory Note
Deed of Trust
$250 Administrative
Fee
$500 Title Report Fee
CH&CDC Approval
City Manager Approval
if project meets all
requirements,
otherwise CC approval.
Single-Family
Residential
Payment of CFF, as well as water connection and/or waste water capacity fees, may be deferred until final inspection.
A lien is placed on the property.
If the property is sold or transferred within the deferral period, payment of the full CFF deferral would become due immediately.
Any single-family residence may apply for deferral Application Deferral of CFF, Water
Connection and/or
Wastewater Capacity
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 18
Interest penalties apply if fees are not paid within the deferral period. Agreement and Notice of Lien
City Manager Approval
if project meets all
requirements,
otherwise CC approval
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CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 19
TABLE 5 - CFF FEE SCHEDULE
2020-2021 CFF PROGRAM - Development within City Limits
Fee
Category
Unit
Measure Per Streets PublicTransp.
Parks & Air
Quality Police Fire General Gov’t. Admin Total
Single-Family Residential Dwelling Unit $ 6,822 $ 99 $ 6,248 $ 634 $ 395 $ 522 $ 296 $ 15,016 Multi-Family Residential Dwelling Unit 4,726 69 4,299 382 182 320 159 10,138 Senior Housing Dwelling Unit 4,116 37 4,193 372 178 314 113 9,323 Hotel/Motel Room 3,548 62 144 69 121 89 4,034
Retail <50,000 SF 1,000 SF 10,256 204 172 83 145 277 11,137 Retail 50,000-100,000 SF 1,000 SF 8,514 168 172 82 144 231 9,310 Retail 100,000-300,000 SF 1,000 SF 7,186 142 173 83 145 196 7,924 Retail >300,000 SF 1,000 SF 6,704 130 172 82 145 183 7,416 Medical Office 1,000 SF 12,956 259 287 138 240 357 14,237 General Office 1,000 SF 6,269 111 287 138 241 161 7,208 Hospital 1,000 SF 9,085 160 287 138 241 226 10,137
Daycare 1,000 SF 5,017 88 287 138 241 130 5,902
Church 1,000 SF 1,069 19 291 139 245 37 1,800
Nursing Home 1,000 SF 1,565 27 290 139 244 49 2,313
Industrial (Manufacturing) 1,000 SF 2,431 42 123 59 103 62 2,821 Industrial (Warehousing) 1,000 SF 1,704 30 124 59 103 46 2,066 2020-2021 CFF PROGRAM - Development within City’s Sphere of Influence Fee
Category
Unit
Measure Per Streets PublicTransp.
Parks & Air
Quality Police Fire General Gov’t. Admin Total
Single-Family Residential Dwelling Unit $ 7,417 $ 79 $ 1,504 $ 191 $ 9,191 Multi-Family Residential Dwelling Unit 5,338 57 953 130 6,478 Senior Housing Dwelling Unit 3,123 34 1,043 103 4,304
Hotel/Motel Room 3,739 39 56 3,834
Retail <50,000 SF 1,000 SF 10,669 112 155 10,936
Retail 50,000-100,000 SF 1,000 SF 8,883 93 130 9,106
Retail 100,000-300,000 SF 1,000 SF 7,530 80 111 7,720
Retail >300,000 SF 1,000 SF 7,034 76 103 7,213
Medical Office 1,000 SF 13,564 144 199 13,907
General Office 1,000 SF 6,639 69 101 6,810
Hospital 1,000 SF 9,500 100 142 9,743
Daycare 1,000 SF 5,357 57 83 5,496
Church 1,000 SF 1,282 13 27 1,323
Nursing Home 1,000 SF 1,808 19 34 1,861
Industrial (Manufacturing) 1,000 SF 2,584 27 39 2,650
Industrial (Warehousing) 1,000 SF 1,844 20 29 1,893
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 20
APPENDIX A - DEFINITIONS
The intent and meaning of the terms that are used shall be as defined in these CFF Policies & Procedures except as specifically noted, revised or added.
Definitions – A
Accessory Dwelling Unit. An accessory dwelling unit (ADU) is a smaller, independent residential dwelling unit located on the same lot as a stand-alone (i.e., detached) single-family home or multi-family structure. ADUs go by many different names including accessory apartments, secondary suites, and granny flats. ADUs can be converted portions of existing homes (i.e., internal ADUs), additions to new or existing homes (i.e., attached ADUs), or new stand-alone accessory structures or converted portions of existing stand-alone accessory structures (i.e., detached ADUs).
Affordable Housing. Affordable Housing is a Qualified Occupant(s) earning not more than eighty percent (80%) of the Area Median Income (AMI) Applicant. The applicant for a building permit for which an impact fee is due pursuant to the provisions of these CFF Policies and Procedures.
Area Median Income. Area Median Income also known as AMI is the household income for the median/ middle income for a household in a given region.
Arterial. A moderate or high-volume street with four (4) to six (6) travel lanes which carries large volumes of traffic between areas in urban centers, with flow usually consisting of large, signaled intersections with other arterials and many collector roads.
Definitions – B
Banks. Full service banking institutions with or without drive up windows. (CFF Rate = Retail)
Building Inspection. The Building Safety Division of the Community & Economic Development Department for the City of Modesto.
Building Safety Division. The Building Safety Division of the Community & Economic Development Department for the City of Modesto.
Definitions – C
Capital Facilities Fee. Impact fees established to mitigate the impacts of new development as outlined in §66000 of the California Government Code for the purchase, construction, expansion, rehabilitation, or acquisition of public facilities.
Certificate of Occupancy. Final sign off of a building permit. #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 21
CHDO Housing. Shall mean housing found to be affordable to households earning sixty percent (60%) or less of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
CHDO Organization. A specific type of nonprofit organization that has been certified by HOME Investment Partnership Program (HOME) as a Community Housing Development Organization.
CFF Administrator. The Administrator of the Infrastructure Financing Programs for the City of Modesto.
Church. Structures primarily designed or used as a place of public worship. (CFF Rate = Church)
City. The City of Modesto.
City Attorney. The City Attorney, or his or her designee, of the City of Modesto.
City Council. The City Council of the City of Modesto (CC).
City Engineer. The City Engineer, or his or her designee, of the City of Modesto.
Collector. A low or moderate-capacity road, usually consisting of a mixture of signaled intersections with arterial roads and signals, circles or stop signs with other collector and local roads.
Commercial. Commercial and retail uses. (CFF Rate = Retail) Community & Economic Development. The Community & Economic Development Department of the City of Modesto.
Convenience Markets. Convenience markets, with or without on-site pumps and open 24 hours or extended hours. (CFF Rate = Retail)
Definitions – D
Daycare/School. An educational, vocational or daycare facility. (CFF Rate = Daycare)
Development Project. Any project undertaken for the purpose of development.
Development projects include projects involving issuance of a permit for construction or reconstruction but not a permit to operate.
Developer. See Applicant.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 22
Director. Director of Community and Economic Development.
Definitions – E
Expressway. A high-volume, access-controlled roadway with three classes consisting of four (4) to six (6) lanes where spacing between interchanges with arterial roadways is limited to one mile.
Definitions – F
Facilities. See Public Facilities
Farmworker. Agricultural workers are defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor.
Farmworker Housing. Housing dedicated to affordable housing for farmworkers.
Fee. A monetary exaction other than a tax or special assessment whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad-hoc basis, that is charged by a local agency to the applicant in conjunction with approval of a development project for the purposes of defraying all or a portion of the cost of public facilities related to the development project. This does not include fees specified in §66477, fees for processing applications for governmental regulatory actions or approvals, fees collected under development agreements adopted pursuant to Article 2.5 (commencing with §65864) of Chapter 4, or fees collected pursuant to agreements with redevelopment agencies which provide for their development of property in furtherance or for the benefit or a development project for which a redevelopment plan has been adopted pursuant to the Community Redevelopment Law (Part 1 (commencing with §33000) of Division 24 of the Health and Safety Code).
Fee Payer. See Applicant.
Finance. The Finance Department of the City of Modesto.
Definitions – G (Reserved)
Definitions – H
Hospital. A structure designed for health services, both inpatient and outpatient; that includes surgical care of the sick, injured or the physically ill and/or therapeutic treatment for the mentally ill. Included as an integral part of a hospital are laboratories, outpatient departments, training facilities, central services facilities, and hospital staff offices on the same site. The preceding ancillary uses are considered #8..
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 23
“professional offices” if located off-site unless a multi-site campus is covered by a PD Zone or hospital uses. A separate set of offices on the same site for physicians is considered “professional offices.” (CFF Rate = Hospital) Definitions – I
Improvements. See Public Facilities.
Industrial Land Use. (CFF Rate = Industrial(Manufacturing)) Manufacturing, Light Industrial & Industrial Parks Uses:
Electronic assembly, paper products
Metal fabricator
Bottling plant
Cabinet shop
Machine shop
Sheet-metal shop
Welding shop
Wholesale shop
Printing plant
Mini-warehouse
Materials testing labors manufacturer
Food processor, brewery, bakery
Recycling facility
Burning operations for lumber and wood products
Junk handling, processing and storage
Landfill and waste products disposal or transfer station Manufacture, fabrication, processing, packaging and treatment of explosives, oil, great products, chemicals, and chemical products. Rock crushing
Pulp and paper mill
Reduction, processing, and storage or offal, dead animals, bones or similar materials
Septic tank and cesspool services
Stockyard
Tannery
Vehicle salvaging and wrecking
Mixed Industrial Uses
When a development project contains more than an incidental mixture of uses, the general types of uses should be segregated and treated separately for the purposes of calculating development fees.
Definitions – J
Junior Accessory Dwelling Unit. A Secondary unit to be constructed within the walls of the proposed or existing single-family residence.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 24
Definitions – L
Low Income Housing. Housing found to be affordable to households earning fiftyone to eighty (51 - 80%) percent of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
Definitions – M
Medium Density Residential. Duplex or triplex buildings located on a single lot designated for occupancy by two (2) or three (3) families. (CFF Rate = Multi-Family Residential)
Multi-Family Residential. Multiple family dwelling units of several types, including high and low rise apartments, high and low rise condominiums, and multi-family residential planned unit developments greater than a density of ten (10) units per acre. The category also applies to mobile homes. (CFF Rate = Multi-Family Residential)
Definitions – N
Nursing Home. Structures designated for use as a convalescent hospital, retirement home, or a twenty-hour care center for seven (7)or more persons in addition to members of the family. (CFF Rate = Nursing Home)
Definitions – O
Office (General). General and professional offices excluding medical offices. (CFF Rate = General Office)
Office (Medical). Offices and clinics devoted to the practice of medical and dental professions or providing medical or dental services, including pseudo-medical services, but excluding hospitals and nursing homes which are treated separately. (CFF Rate = Medical Office)
Definitions – P
Parks, Recreation & Neighborhoods. The Parks, Recreation & Neighborhoods Department of the City of Modesto.
Public Facilities. Public buildings include the following:
Public buildings including park, recreation, police, fire and administration buildings.
Facilities for storage, treatment, and distribution of nonagricultural water. Facilities for the collection, treatment, reclamation and disposal of water. Facilities for the collection and disposal or storm waters and for flood control purposes.
Facilities for the generation of electricity and the distribution of gas and electricity.
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 25
Facilities for the distribution of information, including radio and communication like towers and satellite dishes.
Transportation and transit facilities, including but not limited to streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, parkways and related facilities.
Parks and recreation facilities, including bike trails, public landscape areas and community centers.
Public Works. The Public Works Department of the City of Modesto.
Definitions – Q (Reserved)
Definitions – R
Recreational Buildings. Ancillary recreational buildings that are oriented primarily to a residential development.
Restaurants (Fast Food). Fast food restaurants with or without sit-down facilities and with or without drive up windows. Generally food is ordered and taken to be consumed outside the restaurant building, however some on-site seating is usually provided. (CFF Rate = Retail)
Restaurants (Sit-Down – high turnover). Sit-down restaurants where food is ordered and consumed in the restaurants and customers generally stay less than one (1) hour. Sit-down restaurants typically serve breakfast, lunch or dinner and also include drinking establishments such as bars and cocktail lounges. (CFF Rate = Retail)
Restaurants (Sit-Down – low turnover). Sit-down restaurants which generally have turnover rates of one (1) hour or longer and typically do not serve breakfast, and may or may not serve lunch. (CFF Rate = Retail) Retail. Includes a wide range of retail service uses, both freestanding and in shopping centers, including but not limited to supermarkets, drug stores, department stores, general merchandise, building materials or lumber stores, specialty retail stores, discount stores, hardware/paint stores, video arcades, and new and used car sales, auto repair shops, and car washes. (CFF Rate = Retail) Definitions – S
Savings & Loans. Includes thrift and credit unions, with or without drive-up windows and which typically offer fewer financial services than banks and are smaller in gross floor area than banks. If a given Savings & Loan is 5,000 gross feet or more, or provides full banking services, it should be treated as a bank. (CFF Rate = Retail)
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 26
Senior Housing Residential. Retirement communities restricted to adults or senior citizens, congregate care facilities, and similar residential uses. (CFF Rate = Senior Housing Residential)
Shelter. Any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary or transitional shelter for the homeless in general or for special populations of the homeless.
Single-Family Residential. Single-family detached homes on individual lots, such as in residential subdivisions, but could also be in planned developments. Density of development may vary, but is typically ten (10) dwellings per acre or less. (CFF Rate = Single-Family Residential)
Square Foot (sf). As used for the calculation of impact fees is the same as the square footage for determination of the issuance of building permits.
Definitions – T (Reserved)
Definitions – U
Utility Planning & Projects. The Utility Planning & Projects Department of the City of Modesto.
Definitions – V (Reserved)
Very Low Income Housing. Shall mean housing found to be affordable to households earning fifty percent (50%) or less of the Area Median Income as determined from time to time by the United States Department of Housing and Urban Development.
Definitions – W
Warehouse Distribution & Heavy Land Use. Facilities in which the primary activity is the storage of materials or in which the primary activity is receiving and shipping of materials. Uses which are considered to be in this category include freight, warehousing, corporation yard, freight yard, equipment rental yard, moving and storage services, bulk feed storage and lumberyard. (CFF Rate = Industrial (Warehousing)
Definitions X,Y, & Z (Reserved)
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 27
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City of Modesto
CFF Policies and Procedures
Adopted September 22, 2020
Resolution No. 2020-407 Page 28
APPENDIX B - STREET EXACTIONS POLICY
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
August 13, 2024
Date: July 11, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Formation of City of Modesto Community Facilities District No. 2024-1 (Tivoli) CONTACT: Edgar Garcia, Community Development Manager, [email protected] 209-577-5211
DESCRIPTION:
Consider a Resolution of Intention to form City of Modesto Community Facilities District (CFD) No. 2024-1 (Tivoli), an area bounded by Claratina Avenue to the north, Oakdale Road to the west, Sylvan Avenue to the south, and Roselle Avenue, and a Resolution of Intention to incur debt for CFD No. 2024-1. (Funding Source: Developer Deposit) STRATEGIC PLAN ELEMENT:
The recommended action supports the City Council’s 2020-2025 Strategic Plan, Goal D:
Provide Safe, Efficient, and Reliable Infrastructure through proactive community investment, maintenance and sustainability efforts.
BACKGROUND:
In 1982, the Mello-Roos Community Facilities Act of 1982 (Act)1 was adopted by the State of
California as a method for financing infrastructure improvements and services associated with new developments. The Act allows infrastructure improvements and services to be funded through a special tax paid by property owners.
The Tivoli Specific Plan approved by City Council in 2008 by Ordinance No. 3479-C.S., is a 454-acrea area located in an unincorporated area of Stanislaus County. The project is located within the City of Modesto’s Sphere of Influence. The site is bounded by the planned Claratina Avenue on the north, Oakdale Road on the west, Sylvan Avenue on the south, and Roselle Avenue on the east.
The Specific Plan provides for uses including commercial, school, parks, and residential development of a variety of densities as outlined by the land use diagram and development 1 Mello-Roos Community Facilities Act
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City Council, August 13, 2024
Formation of City of Modesto Community Facilities District No. 2024-1 (Tivoli)