Item 11.1 – CC/LRA 09/12/2023
RIVERBANK CITY COUNCIL/ LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.1
SECTION 11: NEW BUSINESS
Meeting Date: September 12, 2023
Subject: Cheese & Wine Festival Discussion
From: Marisela H. Garcia, City Manager
Submitted by: Sue Fitzpatrick, Director of Parks and Recreation
RECOMMENDATION
It is recommended that the City Council receive additional information and provide direction to staff on the boundary map and other concerns regarding the 2023 Cheese & Wine Festival.
SUMMARY
Based on feedback received from the City Council at the August 22nd meeting, the City Manager will present boundary map options with pros and cons for the 2023 Cheese & Wine Festival, the Security Plan, Revised Marketing Plan and address any other concerns for the operations of this year’s Festival.
BACKGROUND
In February, 2023 staff provided an update to the proposals received for the coordination of the Cheese & Wine Festival. Staff had received two proposals and Council provided feedback and authorized staff to proceed with a contract with the preferred vendor. In March 2023 this contract was approved with SMA Entertainment to plan and execute the 2023 Cheese & Wine Festival. As the City Council had some concerns with the financial outcome of last year’s festival and the lack of marketing that occurred, it was requested that the contractor present a marketing plan prior to the festival.
On August 22, 2023, SMA Entertainment presented a marketing plan that was not acceptable to city staff or the City Council. During that presentation, other concerns were discussed such as the boundary map, security plan, and overall marketing of the event.
The City Council requested these concerns to be discussed more in depth at the next City Council meeting.
Item 11.1 – CC/LRA 09/12/2023
BOUNDARY MAP
Option 1: Attached as Exhibit A is the boundary map that the contractor, staff, and Police Services have been planning to execute based on the number of anticipated vendors.
This map encompasses 4th Street to 7th Street and uses the Community Center building as the Cheese and Wine Tasting venue.
Pros:
1) This map fully incorporates the Community Center as part of the overall event based on the feedback provided by the City Council at the February 14th meeting.
A stage and the kids’ corner have been relocated to the Community Center park/area in order to fill the space.
2) We eliminate the gap that is created when there are not enough vendors, stages, or activities to fill the space from downtown to the Community Center. The Antigua Event Center was not available for us to be able to explore the option of relocating the Tasting event. Even in the days when this event was thriving, the Rotary Club had this challenge and was part of the reason they stopped administering the event.
3) This option reduces the competition for beer and alcohol sales which affected our financial outcome last year. The Beer Booths in the past have been a large revenue source that helps support the festival. Last year there were more businesses selling alcohol near our beer booths. In 2021, staff had to continuously remove signs that advertised “Beer $1” that were placed in front of our vendors. While the goal was to incorporate our downtown in order to highlight our businesses, we received mixed reviews and feedback as there are those who were pleased to have the event downtown while others expressed concerns about the lack of access to their business by patrons.
4) The cost of fencing has risen over the past several years and has become extremely expensive. Reducing the footprint would be cost-effective for this year.
Cons:
1) The City and the downtown businesses have made a significant investment to help our downtown thrive. We have been able to highlight our downtown with a variety of events throughout the year, including the Downtown Market and Dia de los Muertos.
2) In past Cheese & Wine events, the Downtown Plaza has been a focal point for musicians and other entertainment. Excluding this area would not allow us to highlight the downtown and its features.
Option 2: Attached as Exhibit B is the boundary map that extends the event to 3rd street and encompasses the downtown businesses and the plaza.
Pros of this map: This map includes the downtown businesses and plaza.
Cons of this map:
Item 11.1 – CC/LRA 09/12/2023
1) This will increase costs to the event for the additional fencing. 2) Lack of vendors available to fill the additional space will leave a gap in the venue. 3) Competition from businesses selling alcohol may decrease our beer booth sales.
SECURITY PLAN
The security plan is a plan that is determined by the Chief of Police and the contractor.
This plan is in place and attached as Exhibit C. The development of the plan was done in collaboration with Sheriff Department, Fire Department, Public Works, Parks & Facilities, and Gilton, to ensure the event runs smoothly logistically.
MARKETING PLAN
The new and improved marketing plan is attached as Exhibit D. City staff have met with the contractor and reviewed the plan so it is clear and concise for City Council review.
FINAL DISCUSSION
Anytime a contractor is hired for a project or event, a certain amount of trust to produce a high-quality event or project is expected from the contractor. At times, this does not occur.
At this time, staff is requesting City Council direction on the preferred boundary map in order to be able to finalize the fencing and security plan for the City.
STRATEGIC PLAN
This item is relevant to the City Strategic Plan by Enhancing the Quality of Life through Recreation and Community Events.
FINANCIAL IMPACT
The budget that has been submitted by the contractor is assuming revenue will be sufficient to cover the expenses. With this type of event, at times it is difficult to project how the finances unfold until the event is complete and it is unknown how all our revenue sources do during the event. These revenue sources are as follows:
A. Beer Booths
B. Wine Tasting Tickets
C. Vendor Booths
D. Sponsorships
Our contract with SMA Entertainment is $13,500 plus 50% of revenue over expenses.
All expenses have increased over the past several years and it is becoming increasingly difficult to keep this event self-sustaining. Other long-standing festivals in the area are no longer occurring for these reasons.
Item 11.1 – CC/LRA 09/12/2023
ATTACHMENTS
1. Exhibit A: Map including 4th-7
th street
2. Exhibit B: Map including the Downtown & Plaza
3. Exhibit C: Security Plan
4. Exhibit D: Marketing Plan
Main
Entrance
Entrance
Cheese and Wine Boundary Map 2023
Exhibit A
Vendors
Stage
Vendors
Vendors
Car
Show
Car Show
Stage
Kids
Zone
Seating
4 t
h
S
t
r
e
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t
7 t
h
S
t
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e
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t
Stanislaus Street
Previous boundary
Proposed expansion
Approximately 660 ft of additional fencing
Main
Entrance
Car show
Stage
Vendors Vendors
Kids
Zone
Stage
Seating
Entrance
Cheese and Wine Boundary Map 2023
Exhibit B
Car Show
Car
Show
3 r
d
S
t
r
e
e
t
7 t
h
S
t
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e
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t
Riverbank Police Services
Cheese and Wine
Security Plan and Festival Requirements
EVENT DETAILS
The Cheese and Wine is an annual event in the city of Riverbank. There are art and craft displays, multiple stages for musicians, along with food vending. Beer and wine will be sold at multiple locations within the event and maybe consumed on the street within the fenced boundary of the event.
It is the mission of Riverbank Police Services to provide professional police presence. We will enforce law violations in a fair and impartial manner, while respecting the rights of persons to assemble and enjoy the event. We will provide a safe environment for festival goers and event participants.
STAFFING PLAN
• Chief Ridenour will be the Incident Commander
• Sgt. Hickman will be the Operations Supervisor
• Two 2-man teams will patrol the festival interior.
• One 2-man bicycle team will patrol the exterior and interior of the festival. • Two traffic deputies will work the exterior of the festival to assist with traffic control. • One 2-man equestrian unit will be stationed at Veterans Park. A WP will assist with manure pickup.
• Explorers will be deployed inside the event to assist with any lost tots.
SECURITY MEASURES
• Soft barricades (Road Closed Signs) will be placed at each closed roadway around the festival boundary.
• Beyond the soft barricades, City staff will place concrete barricades at each closed roadway and any alley that may allow vehicle access. The only exception will be at the East and West festival boundary along Santa Fe St to allow for emergency vehicle access. • Existing City cameras around downtown and Veterans Park will be used to monitor the event.
• A portable camera trailer will be stationed at the event to provide additional remote monitoring.
• Kiwi's Firearms has agreed not to release firearms during the Saturday and Sunday of the festival.
EXHIBIT C
SECURITY REOUIRMENTS OF CHEESE AND WINE PROMOTER
• The entire festival perimeter will be protected by chain link fencing and/or by the use of existing buildings and fences.
• The promoter will provide signage at each entrance outlining the prohibited items to the event. Sample at the end of this document.
• Two security guards will be stationed at each entrance/Exit equipped with metal detector wands. We suggest a table and pop-up shade to help with security screening. • Security will need to be provided during the evening hours while the festival is closed to the public.
• On each end of Sante Fe St. at the festival boundary, a security guard will need to block the roadway with their security vehicle to restrict vehicle access into the festival. Security will need to man these vehicles for the duration of the event to allow for emergency vehicle access.
• Two security guards will need to be stationed at the Community Center for the Wine, Cheese, and Beer tasting.
• If an alternate entrance will be utilized for vendors or entertainment, a security guard will need to man this gate.
• A security radio will need to be provided to Riverbank Police Services during the event to ensure communication between security and our command post. • The event promoter will need to have staff or security available to provide a quick response to any location where the perimeter fence may become open or unsecure. • Colored wrist bands will need to be provided to patrons who are going to consume alcohol after they have had age verification. Different colors will need to be used for each day.
• No vendors that sell or offer any type of weapon (guns, knives, pepper spray, etc.) will be allowed operate within the festival.
• Alcohol sells will stop one hour prior to event closure each day. • There should be some type of crowd control mechanism in place for the dancing horses' event to prevent any festivals goers from being accidentally stepped on by a horse. • Consider a First Aid Station inside the event.
EVENT TIMELINE FOR SECURITY
• City will start street closures around noon on the Friday before the event, so they can allow Gilton in the area to setup tents. They will work around the neighboring school schedule as not to impact student dismissal.
• City staff will place soft barricades and concrete barricades starting Friday afternoon and completing throughout the evening.
• After the soft barricades and concrete barricades are in place, the fencing will need to be installed overnight (Coordination will be through Ron Werner).
• The festival perimeter fencing will need to be in place by 8am on the Saturday morning of the event. The promoter will need to walk the perimeter with RPS staff at 8am on Saturday morning to ensure the fence is secure and to identify any areas of concern. • Evening security will need to be onsite for patrol of the closed event on Friday and Saturday evening.
• All vendor vehicles will need to be out of the fenced area of the festival 30 minutes prior to the festival opening.
• Security should be onsite at least 45 minutes prior to the event start to brief with RPS staff.
• Security and their metal detectors will need to be stationed at each entrance and at their respective posts at least 30 minutes prior to the event opening. This will ensure the event is secure and ready to accept visitors.
• Security will stay at their posts until the event is over, has been cleared out by RPS staff, and after consulting with the RPS Incident Commander.
ALL PERSONS AND PROPERTY
ARE SUBJECT TO SEARCH
PROHIBITED
ITEMS
& NO WEAPONS OR FIREARMS
& NO PEPPER SPRAY OR MACE
& NO KNIVES OR SHARP OBJECTS
& NO OBSCENE OR CANC AFFILIATED
CLOTHINC
& NO BICYCLES, HOVERBOARDS,
SKATEBOARDS OR ROLLER SKATES
& NO COOLERS OR LARCE BACS
& NO VAPE PENS OF ANY KIND
& NO TUMBLERS/CONTAINERS OF
ANY KIND
& NO DRUCS OR ALCOHOL OF ANY KIND
& NO OUTSIDE FOOD OR DRINK
Banners : 3’ x 8’
LocaƟons: Total Cost - $2,280.00
1. 3rd Street & PaƩerson-On the dirt beside the train tracks. Near stop sign.
2. Grass area in front of Jacob Myers Park- Sign should face north towards the City of Escalon.
3. Dirt area at former U-Gas/Aqua blast car wash. 3702 Atchison St.
4. Vacant lot fence across from Esperanza’s. 2907 PaƩerson Rd. – Need to Request Permission
5. Grass area in front of Crossroads sign on Oakdale and Claribel or across in dirt area of future Costco. – Need to Request Permission
6. Downtown Riverbank in rose bush planters by admin office. 6707 3rd st, suite A.
7. Community Center Pool Fence
8. Tennis Court Fence at 7th & Hwy 108
RIVERBANK CHEESE & WINE
MARKETING PLAN
EXHIBIT D
Radio AdverƟsing - StarƟng Week of 10/2
KRVR – The River 105.5
o 30 sec Spots – Total Cost: $2,000
Weeks On Daypart Rate Mon Tue Wed Thr Fri Sat Sun
10/2 6a-7p $20 8 8 8 8 8 8 8
10/9 6a-7p $20 8 8 8 8 8
9A-1P $20 4
Weekly
Totals 16 16 16 16 16 12 8
Cumulus Media – KATM Kat Country 103, KHKK The Hawk 104.1, KHOP 95.1, KWNN 98.3 o 15 sec Spots – Total Cost: $3,000
iHeart Media - $2,500
Flyers
Handed out to Downtown Businesses for posƟng.
Handed to summer program/aquaƟcs parƟcipants.
Located at the Library
Handed out at other fesƟvals.
Social Media
Weekly posƟngs on Riverbank RecreaƟon and City of Riverbank Instagram & Facebook pages
Item 11.2– CC/LRA 09/12/2023
RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.2
SECTION 11: NEW BUSINESS
Meeting Date: September 12, 2023
Subject: American Rescue Plan Act Spending Plan Update
From: Marisela H. Garcia, City Manager
RECOMMENDATION
It is recommended that the City Council receive an update regarding the ARPA Spending Plan Projects and provide direction to staff on possible amendments.
SUMMARY
On August 23, 2022 the City Council held a workshop to provide feedback on the allocation of funds received from the American Rescue Plan. On September 13, 2022 the City Council adopted Resolution No. 2022-112 (Attachment A) adopting a formal spending plan. Since then staff has been working diligently on implementing the spending plan but requires feedback from the City Council as various projects have come in significantly over budget thus decreasing the amount of funds available to finance them.
BACKGROUND
On March 11, 2021 President Joe Biden signed into law the American Rescue Plan Act of 2021 (also called the COVID-19 Stimulus Package/American Rescue Plan). The intent of the legislation is to speed up the recovery of the Country as the United States recovers (and continues to struggle) from the effects of the COVID-19 pandemic. The funding package includes approximately $1.9 trillion in anticipated funding. Of that amount, $65 billion is allocated as direct aid to every City, Town, or Village across the country. The City’s are split into two categories, entitlement cities (metropolitan – City’s over 50,000 in population) and non-entitlement units of local government (the City of Riverbank fits into this category). For non-entitlement jurisdictions American Rescue Plan funds were distributed by the state governments in which the City is located. Riverbank has been allocated $5,952,064.00 in funding under the legislation. Half of that funding was made available in July 2021 with the other half available as of July 2022.
Item 11.2– CC/LRA 09/12/2023
Over the course of several months, the Department of the Treasury worked closely with the National League of Cities to ensure that the funds could be used by local jurisdictions in areas that were the most affected by COVID-19 including:
• Support the COVID-19 Public Health and Economic Response • Replace Lost Public Sector Revenue
• Provide Premium Pay for Eligible Workers Performing Essential Work • Invest in Water, Sewer, and Broadband Infrastructure
• Affordable Housing (recently added)
Within each category there is broad discretion for local communities to determine the best use of the funds to improve and recover from the impacts of the COVID19 pandemic.
With that said, the Department of Treasury has stated there are five specific categories of ineligible uses which are:
• Federal Matching Requirements
• Premium Pay
• Pensions (or pension liabilities)
• Infrastructure not directly related to the American Rescue Plan/Act • Rainy Day Funds, Financial Reserves, and Outstanding Debt
INITIAL SPENDING PLAN
Over the course of several months, the City Council strategically allocated funds to a variety of projects, including the large energy efficiency project currently being performed by SitelogIQ. Changes to the Final Rule from the Treasury allows cities to dictate that the funds fall under the “replace lost public sector revenue” which allows for a greater flexibility in the use of the funds other than those that were specifically listed.
Based on the feedback received from the City Council, staff prepared the American Rescue Plan Act Spending Plan (Attachment A) adopted on September 13, 2022 which included projects such as:
1. Park Improvements: Jacob Myer Park, and new parks
2. Infrastructure Improvements: RPS Fencing, 7
th Street Storm Drain
3. Property Purchase: Downtown Parking Lot
4. Grant Programs: Downtown Façade, Non-Profit Grants, VOLT Grants
5. Other: Social Media Branding
Several of the highlighted projects in the spending plan were awaiting updated engineer’s estimate and allocations were tentative. These amounts were updated as bids were received, and contracts were awarded.
After the adoption of the Spending Plan, the City had an unallocated balance of $775,276 in ARPA funds.
Item 11.2– CC/LRA 09/12/2023
SPENDING PLAN UPDATE
Over the course of the past year, staff implemented the Spending Plan as approved. As mentioned previously, several of the construction related projects were budgeted under tentative amounts based on the Engineer’s Estimate. As these projects have gone through the bidding process several have come in over budget due to the significant increase in material costs.
Park/Public Space Improvements
0 Original Budget Updated Budget Difference
Jacob Myers Parking Lot $214,000.00 $214,000.00 $0.00
JMP Trail Expansion $51,500.00 $101,500.00 -$50,000.00
Jackson/Stanislaus Park Site $200,000.00 $200,000.00 $0.00 Plaza Del Rio Audio Projects $18,000.00 $22,649.82 -$4,649.82 Downtown Lighting Impr. $0.00 $0.00 $0.00
Zerillo Park Pickleball $0.00 $10,000.00 -$10,000.00
Subtotal $483,500.00 $548,149.82 -$64,649.82
Infrastructure
0 Original Budget Updated Budget Difference
Energy Efficiency Project $2,000,000.00 $2,000,000.00 $0.00 Well/Lift Station Security $16,050.00 $16,050.00 $0.00
Fencing - RPS $250,000.00 $344,923.00 -$94,923.00
7th Street Storm Drain $400,000.00 $776,801.00 -$376,801.00
Item 11.2– CC/LRA 09/12/2023
EV Charging Stations
(Infrastructure Only) $40,000.00 $40,000.00 $0.00
Subtotal $2,706,050.00 $3,177,774.00 -$471,724.00
Property Purchase/Improvements
0 Original Budget Updated Budget Difference
Sierra House $321,884.87 $321,954.87 -$70.00
Jackson/Stanislaus Property $551,416.25 $555,151.25 -$3,735.00 Downtown Parking Lot $425,000.00 $644,895.30 -$219,895.30 Subtotal $1,298,301.12 $1,522,001.42 -$223,700.30
COVID-19 Mitigation
0 Original Budget Updated Budget Difference
Staff Time - COVID Mitigation $2,457.33 $2,457.33 $0.00 PPE/Mitigation Improvements $17,882.56 $17,882.56 $0.00 Hazard Pay $197,597.48 $361,322.52 -$163,725.04
Subtotal $217,937.37 $381,662.41 -$163,725.04
Grant Programs
0 Original Budget Updated Budget Difference
Downtown Façade Program $210,000.00 $210,000.00 $0.00
Item 11.2– CC/LRA 09/12/2023
Non-Profit Grants $140,000.00 $120,000.00 $20,000.00
VOLT Program Grants $121,000.00 $121,000.00 $0.00
Turf Replacement Program $0.00 $0.00 $0.00
Subtotal $471,000.00 $451,000.00 $20,000.00
Other
0 Original Budget Updated Budget Difference
Social Media/PI Branding $0.00 $0.00 $0.00
Translation Services $0.00 $0.00 $0.00
Subtotal $0.00 $0.00 $0.00
Grand Totals
0 Original Budget Updated Budget Difference
Total $5,952,064.00 $6,080,587.65 ($128,523.65)
OPTIONS
As noted earlier, there are several projects that were significantly over the Engineer’s Estimate including the fencing project for Police Services, the 3rd Street Parking Lot, which is currently under construction, and the 7th Street Outfall Project, which has not yet been officially awarded. With the additional funds allocated to these projects, this has exceeded the amount available from the ARPA revenues. Therefore, staff is requesting feedback from Council as to how to proceed with the remaining projects. Several options that we can explore include:
1. Explore alternative funding for remaining projects,
2. Review projects that have not yet started or awarded and reallocate funding,
3. Remove projects that have not yet been awarded and prioritize remaining projects.
Item 11.2– CC/LRA 09/12/2023
ATTACHMENTS:
1. Attachment A: Spending Plan
CITY OF RIVERBANK
RESOLUTION 2022-112
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF RIVERBANK, CALIFORNIA
ADOPTING THE AMERICAN RESCUE PLAN ACT SPENDING PLAN
THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE "CITY COUNCIL") DOES HEREBY RESOLVE THAT:
WHEREAS, on March 11, 2021 President Joe Biden signed into law the American Rescue Plan Act of 2021 ; and
WHEREAS, the intent of the legislation was to speed up the recovery of the Country as the United States recovered from the economic effects of the COVID-19 pandemic; and
WHEREAS, the City, as a non-entitlement unit, received $5,952,064 in American Rescue Plan Act funds which were disbursed by the State of California; and WHEREAS, since July 2021 the City Council has been making strategic allocations for the use of the funds including an energy efficiency project; and WHEREAS, after discussion and feedback from the City Council at its August 23, 2022 Council meeting an official Spending Plan, incorporated here as Exhibit A, was developed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank does hereby adopt the American Rescue Plan Act Spending Plan.
PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 13th day of September, 2022; motioned by Councilmember Uribe, seconded by Councilmember Barber-Martinez, and upon roll call was carried by the following City Council vote of 5/0:
AYES: Councilmember, District 1 Luis Uribe
Councilmember, District 2 Rachel Hernandez
Councilmember, District 4 Darlene Barber-Martinez
Vice Mayor, (CM-DJ) Cal Campbell
Mayor, Richard D. O'Brien
NAYS: None
CC/LRA - 09/13/2022
CC Resolution 2022-112
ATTACHMENT 1
ABSENT: None
ABSTAINED: None
ATTEST:
G��J����
City Clerk
Richard D. O'Brien
Mayor
Attachment(s): Exhibit A: American Rescue Plan Act Spending Plan
CC/LRA - 09/13/2022
CC Resolution 2022-112
EXHIBIT A
� �.-::·
AMERICAN RESCUE PLAN
ACTOF2021
CilY ol Riverbank Spending Plan
Ill\ J,WjJ
Funding Received
1 ;, .l!>,.ot,� 1.10
Allocation 1 -July 2021 $2 97G.D32 DD
Allocation 2 -July 2022 $2,976,032 OD
_Current Spending Plan AflocatioQs %.llli,788.49
Total Funding $5,952,064.00
Unallocated Balance $775,275.51
Park/Public Space Improvements Infrastructure
Projected Actual Difference Projected
Cost Cost Cost
Jacob Myers Pa1k1ng Lut $214,Dbo qo $0 00 $214,DOO DO En�rgy Efficiency Pruject $2,0D0,000 00 JMP T1a1I hpans1on $51,500 00 so 00 $51,500 00 Well/Lift Station Security $16,0SD 00 Ji.Jcl:son/SLanislau� Park Site $200,DDU 00 $0 Oll $20D,OOO 00 Fencing - RPS ·s2s□,DOD □D Pla.:a Del R1u Audio P1 OJects $18,00D 00 $0 OU $18,000 00 7th Stree-t Sturm Drain S4DO;OOD.OO Dov.;ntow11 Lighl1ng, lmµr so 00 so 00 EV Chargit1g Stations $40,000 00 (lnf1 astructure Only)
SO DO
$0 00
so 00
so 00
Subtotal $483,500.00 $0.00 $483,500.00 Subtotal $2,706,050.00 Property Purchase/Improvements COVID-19 Mitigation
Projected Actual Difference Projected
Cost Cost Cost
S1�rra House Sl1elte1 $321.884 87 $321,884 3/ so 00 Staff Time $2.457 33 Jc1cl<son/Stan1slaus Prope1 ty $551,416 25 $551.41G 25 So oo PPF/M1rie.-1t1nn lrnprr_,v,-.rnen .$17,881 SG Downtown Pai king Lot S425.000 oo so 00 $425,000 00 P1em1um Pay $197,597 48 $0 00 so 00
$0 00 so 00
Subtotal $1,298,301.12 $873,301.12 $425,000.00 Subtotal $217,937.37 Grant Programs Other
Projected Actual Difference Projected
Cost Cost Cost
DoWr"ltown Fa�ade Program $210,000 00 $0 00 $210,000 00 Social Media/Pl Bri:rnding Non-P1of1t Gtant!. $140,000 00 $0 00 $140,000 00 Translauon Service� VOLT P1og1am Grants 5121,000 00 so 00 $121,000 00
Turf Replc.1cernent Program $0 00 $0 00
Subtotal $471,000.00 $0.00 $471,000.00 Subtotal $0.00
Actual Difference
Cost
$569,9ll 7l $1,430,086 27
$16,050 00 50 OD
so 00 $250,DOD 00
so 00 $400,000 00
$0 00 $40,00D OD
$0 00 so 00
so 00 $0 00
$0 00 $0 00
$0 00 $0 00
$585,963.73 $2,120,081i27
Actual Difference
Cost
$2,457 33 so 00
$17,882 56 $0 OU
$197,597 48 $0 00
$0 00 $0 00
so 00 $0 00
$217,937.37 $0.00
Actual Difference
Cost
$0 00 $0 00
$0 00 so 00
so 00 $0 00
$0 OD so 00
$0.00 $0.00
Item 11.3- CC/LRA 09/12/2023
RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.3
SECTION 11: NEW BUSINESS
Meeting Date: September 12, 2023
Subject: Resolution to Approve the McRoy Wilbur Communities Reimbursement of PLHA Grant and Former Redevelopment
Low-Moderate Income Housing Funds for the River Terrace Subdivision
From: Marisela H. Garcia, City Manager
RECOMMENDATION
It is recommended that the City Council consider adopting a Resolution approving the reimbursement of PLHA Grant and Former Redevelopment Low-Moderate Income Housing Funds by McRoy-Wilbur Communities for the River Terrace (formerly Ward Villas) subdivision to be collected via escrow at property closing.
SUMMARY
Previously, Mcroy-Wilbur had requested that Council consider the possibility of allowing for the repayment of the PLHA grant that was provided to the development but subsequently asked that the City disregard the request at that time. This past week, Mcroy Wilbur asked that we once again consider this item. This item is being brought forth to Council as they have requested repaying this per lot upon closing rather than providing full payment to the City upfront.
BACKGROUND
In June 2020, the Department of Housing and Community Development (HCD) issued a Notice of Funding Availability for the Permanent Local Housing Allocation (PLHA) program. The program allocated these funds to cities via a formula component which would entitle the City to receive approximately $110,000 per year. The goal of the program was to provide financial assistance to local governments for eligible housing related programs and projects to assist in addressing the unmet housing needs of the local community.
Item 11.3- CC/LRA 09/12/2023
During this same local real estate broker Cary Pope had approached City staff with a proposal for an affordable housing project at the previously approved Ward Villas site.
Mr. Pope was interested in developing the lots as affordable homes for sale. Mr. Pope submitted a formal request to the City asking for financial assistance, in the form of grants, that would allow him to keep the sales price low so lower income residents would be provided with priority access to purchase these homes. The funds were used to offset the cost of the offsite development costs.
Through an evaluation of the PLHA grant guidelines, it was determined that funding is allowed to be used for predevelopment, development, acquisition rehabilitation, and preservation of Affordable rental and ownership housing for workforce earning up to 120 percent of Area Median Income. As such, in July 2020 the City Council approved the PLHA Grant Plan for the allocation of the first three years of funding for this project and in October 2020 the City Council approved the Memorandum of Understanding between the City and Ammo Plant Management Inc. for the allocation of funding from PLHA and the remaining balance of the Redevelopment funds from the Low-Moderate Income Housing Fund.
Unfortunately, over the course of the past three years supply & material costs continued to skyrocket, lack of housing supply caused increased prices, and the interest rate is at an all-time high at over 7% for a 30-year mortgage thus continuing to make homes unaffordable to our lower income residents. The initial MOU with Ammo Plant Management required that the homes be sold to residents at or below 80% AMI but due to the increase in housing values residents at that AMI level could not afford to purchase these homes. In February 2023, the City Council authorized the amendment to the MOU that would allow for the homes to be purchased by residents at or below 120% AMI as allowed by the PLHA grant. Despite the increase in allowable income, the developer was not able to make the program work for residents at that income level.
REQUEST
Mcroy Wilber Communities, who has officially taken over the development of Ward Villas (now known as River Terrace), has requested to repay the grant funds provided for the offsite improvements via the MOU with Ammo Plant Management. This item is being brought forth to Council as they have requested the ability to repay the amount due as a fee per lot to be paid upon close of escrow. The developer would be providing repayment of all fees due over the 28 lots as follows:
Total Grant Funds Provided $541,422.02
Total Lots 28
Grant Reimbursement Per Lot Lots 1 – 27 = $19,336.50
Lot 28 = $19,336.52
Item 11.3- CC/LRA 09/12/2023
FUTURE USE OF FUNDING
At a future date, City staff will return to the City Council to consider options for the use of the reimbursed funding. Funding must still comply with the guidelines set forth as part of the PLHA Program.
FINANCIAL IMPACT
There is no financial impact associated with this request.
STRATEGIC PLAN
While not directly related to the City Council’s Strategic Plan, the reimbursement of these funds will allow for further opportunities to assist in the development of affordable housing, or for the development of programs to allow for lower income residents to purchase a home (i.e. down payment assistance program).
ATTACHMENT
1. Request
2. Resolution
3. Draft Lien
Aug 4, 2023
Donna Kenney:
Please consider this letter as a formal request to the Riverbank City Council for a fee deferral of the city’s impact fees for our River Terrace project. As we have previously discussed, fee deferral has become customary in most cities. This practice, to the best of our knowledge, has had a positive result for both the builder and the municipality. Fee costs have risen to a point where they compose thirty-five to forty percent of the total construction costs. By allowing fees to be paid through title at closing it drastically helps make financing of the project easier. It also helps create a faster build-out of the project, thus generating more tax revenue for the city. The city of Riverbank has been generous enough to grant us deferred fees with previous projects, and under the current model initial payment would include permit fees, plan check fees, and state fees while all impact fees would be deferred.
Also, for this particular project, the city provided funds to the original developer for improvements through the PLHA grant from the state. This would restrict buyers to certain income limits. Although we have worked to keep costs down as much as possible, we have come to the conclusion that with high building costs and high interest rates, affordability for those within the required income bracket is near impossible. We would like to repay the funds that were granted in the same manner that we would pay the impact fees, through title at each closing.
We appreciate your time and consideration, along with your willingness to work together to achieve the best results for the city of Riverbank and its current and future residents.
Sincerely,
Ian Wilbur
209-596-1278
[email protected]
ATTACHMENT 1
CC/LRA- 09/12/2023
CC Resolution 2023-
CITY OF RIVERBANK
RESOLUTION 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK
APPROVING THE REIMBURSEMENT OF PLHA GRANT AND FORMER
REDEVELOPMENT LOW-MODERATE INCOME HOUSING FUNDS
FOR MCROY WILBUR COMMUNITIES AND RIVER TERRACE
THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED
TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:
WHEREAS, in 2017 the State of California authorized the issuance of bonds under the voter approved SB 2 initiative to provide financial assistance to local governments for eligible housing-related programs and projects to assist in addressing the unmet housing needs of the local community; and
WHEREAS, in June 2020 the State of California Housing and Community Development Department issued a Notice of Funding Availability for the Permanent Local Housing Allocation Program (PLHA) which entitled the City to funding for affordable housing projects; and
WHEREAS, in October 2020 the City Council approved Resolution 2020-080 authorizing a Memorandum of Understanding with Ammo Plant Management Inc. for financial assistance from the PLHA Program and Redevelopment Funds to the Ward Villas housing development; and
WHEREAS, the current housing market, increasing costs of materials and supplies, and the rising interest rates has caused this project to no longer be feasible as an affordable housing project, and
WHEREAS, on August 4, 2023 Mcroy-Wilbur Communities submitted a formal request to reimburse the grant funds and has requested the City allow them to repay them per lot through title at closing.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby approves the reimbursement of grant funds for the Ward Villas (River Terrace) Project as follows:
Total Grant Funds Provided $541,422.02
Total Lots 28
Grant Reimbursement Per Lot Lots 1 – 27 = $19,336.50
Lot 28 = $19,336.52
ATTACHMENT 2
CC/LRA- 09/12/2023
CC Resolution 2023-
PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 12th day of September, 2023; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
________________________ ________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Grant Reimbursement Certificate and Agreement of Lien
GRANT REPAYMENT LIEN AGREEMENT
City of Riverbank & McRoy Wilbur Communities – River Terrace
Recording Requested by
City of Riverbank
When Recorded Return To:
Housing Division
City of Riverbank
6707 Third Street, Riverbank CA 95367
GRANT REIMBURSEMENT CERTIFICATE AND AGREEMENT OF LIEN
THIS AGREEMENT OF LIEN (“Agreement”) is made as of the 12th of September 2023, between the City of Riverbank (“City”), a California municipal corporation, and Ian Wilbur / McRoy Wilbur Communities Inc., a California Corporation (“Builder”).
1. In accordance with City of Riverbank, Resolution No. 2023-XXX, the City hereby agrees to grant approval to defer repayment of the PLHA and Redevelopment Grant funds for McRoy-Wilbur Community for the River Terrace Subdivision. $541,422.02 in grant funds are to be repaid at through Title via close of escrow per Lot.
2. Property Description – Being a subdivision of 28 Lots and Lots A & B as shown on the map entitled “Amended Map of Ward Villas (45-M-30) ”Being a Subdivision of the East half of Lot 96 of Riverbank Acreage Tract, as per map filed March 23, 1912, in volume 6 of maps, at page 33, Stanislaus County Records, Lying in Section 26, Township 2 South, Range 9 East, Mount Diablo Meridian, City of Riverbank, County of Stanislaus, State of California August, 2023.
ADDRESSES: APN’s:
6260 Chavez Court – Lot 1 132-066-001
6256 Chavez Court – Lot 2 132-066-002
6252 Chavez Court – Lot 3 132-066-003
6248 Chavez Court – Lot 4 132-066-004
6244 Chavez Court – Lot 5 132-066-005
6240 Chavez Court – Lot 6 132-066-006
6236 Chavez Court – Lot 7 132-066-007
6232 Chavez Court – Lot 8 132-066-008
6228 Chavez Court – Lot 9 132-066-009
6224 Chavez Court – Lot 10 132-066-010
6220 Chavez Court – Lot 11 132-066-011
6216 Chavez Court – Lot 12 132-066-012
6212 Chavez Court – Lot 13 132-066-013
6208 Chavez Court – Lot 14 132-066-014
ATTACHMENT 3
GRANT REPAYMENT LIEN AGREEMENT
City of Riverbank & McRoy Wilbur Communities – River Terrace
6204 Chavez Court – Lot 15 132-066-015
6200 Chavez Court – Lot 16 132-066-016
6201 Chavez Court – Lot 17 132-066-017
6205 Chavez Court – Lot 18 132-066-018
6209 Chavez Court – Lot 19 132-066-019
6213 Chavez Court – Lot 20 132-066-020
6233 Chavez Court – Lot 21 132-066-021
6237 Chavez Court – Lot 22 132-066-022
6241 Chavez Court – Lot 23 132-066-023
6245 Chavez Court – Lot 24 132-066-024
6249 Chavez Court – Lot 25 132-066-025
6253 Chavez Court – Lot 26 132-066-026
6257 Chavez Court – Lot 27 132-066-027
6261 Chavez Court – Lot 28 132-066-028
RIVERBANK, CA 95367
1. When accepted and recorded by the City, this Agreement shall constitute a lien on the Property, in the amount indicated below. The lien shall be due and must be cleared at close of escrow.
2. The total lien amount for lots 1-27 is $19,336.50, and lot 28 is $19,336.52.
3. Upon receiving full payment of the above plus a County lien removal fee of $17.00, the City will record a release of lien against the Property.
4. This repayment applies only to the grant funds received as part of the Memorandum of Understanding approved via Resolution 2020-080. This repayment does not include any fees imposed by other public agencies, including but not limited to: Stanislaus Consolidated Fire Protection District, Riverbank Unified School District or Stanislaus County.
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written.
GRANT REPAYMENT LIEN AGREEMENT
City of Riverbank & McRoy Wilbur Communities – River Terrace
Ian Wilbur Date
Secretary-Treasurer, McRoy Wilbur Communities, Inc.
STATE OF CALIFORNIA
COUNTY OF SAN JOAQUIN
On _________________before me, _____________________, Notary Public, personally appeared ___________________who proved to me on the basis of satisfactory evidence to be the person (s) whose names (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (ies), and that by his/her/their signature (s) on the instrument the person (s), or the entity upon behalf of which the person (s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
__________________________________
Notary Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that.
GRANT REPAYMENT LIEN AGREEMENT
City of Riverbank & McRoy Wilbur Communities – River Terrace
Marisela H. Garcia Date
City of Riverbank, City Manager
STATE OF CALIFORNIA
COUNTY OF STANISLAUS
On _________________before me, _____________________, Notary Public, personally appeared ___________________who proved to me on the basis of satisfactory evidence to be the person (s) whose names (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (ies), and that by his/her/their signature (s) on the instrument the person (s), or the entity upon behalf of which the person (s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
__________________________________
Notary Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that.