Agenda packet — City Council and Authorities Concurrent, April 19, 2022 (part 1 of 8)

City of Santa Clara
Joint Meeting Agenda
Council and Authorities Concurrent Meeting
Call and Notice of Special Meeting
Santa Clara Stadium Authority
Planning Commission
Hybrid Meeting
Council Chambers/Virtually
1500 Warburton Avenue
Santa Clara, CA 95050
Tuesday, April 19, 2022 4:00 PM
Closed Session - 4:00 PM | Study Session - 7:30 PM | Regular Meeting - 8:30 PM The City of Santa Clara will be conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution 22-9067, Councilmembers may teleconference from remote locations and the City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment (now available during the meeting) • Via email to [email protected]
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of California Government Code §54956 (“The Brown Act”) and Section 708 of the Santa Clara City Charter, the Chair/Mayor calls for a Special Meeting of the Governing Board of the Stadium Authority and Planning Commission to commence and convene on April 19, 2022 at 4:00 pm for a Special Meeting in the City Hall Council Chambers located in the East Wing of City Hall at 1500 Warburton Avenue, Santa Clara, California and by teleconference, to consider the following matter(s) and to potentially take action with respect to them.
4:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Roll Call
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Meeting Agenda April 19, 2022

1.A Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of
Electrical Workers)
Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees
Association)
22-534

1.B Conference with Legal Counsel-Existing Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(1)
Arturo Arranga Ballesteros v. Stephen Stek, et al., United States District Court, Northern District of California, Case No. 3:20-cv-06207
22-461

1.C Conference with Legal Counsel-Existing Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(1)
Gloria Zamora & Antonio Zamora v. City of Santa Clara, et al., United States District Court, Northern District of California, Case No. 5:21-cv-05610
22-462

1.D Conference with Legal Counsel-Existing Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(1)
Marcus Dean Diaz v. City of Santa Clara, et al., United States District Court, Northern District of California, Case No. 5:20-cv-03506
22-491
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1.E Conference with Legal Counsel-Anticipated Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(2) - Exposure to litigation Number of potential cases: 1
Facts and Circumstances: Pursuant to Gov. Code § 54956.9(e) (1) - Not disclosed on agenda
22-506

1.F Public Employee Appointment (Gov. Code §§ 54957, 54954.5, subd. (e).)
Title: City Attorney
22-538
Public Comment
The public may provide comments regarding the Closed Session item(s) just prior to the Council beginning the Closed Session. Closed Sessions are not open to the public.

Convene to Closed Session (Council Conference Room)
7:30 PM JOINT COUNCIL AND PLANNING COMMISSION STUDY SESSION *Study Session to begin at 7:30 PM or shortly thereafter Call to Order in the Council Chambers
Roll Call

2. Joint City Council and Planning Commission Study Session on Housing Element Update
22-260
Note and file the report on the Housing Element
Update.

Recommendation:
8:30 PM COUNCIL AND SPECIAL STADIUM AUTHORITY MEETING
Call to Order
Call to Order in the Council Chambers (Open to the Public) Pledge of Allegiance and Statement of Values

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS

SPECIAL ORDER OF BUSINESS

3. 22-507 Proclamation of Earth Day/Arbor Day
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CONSENT CALENDAR
[Items listed on the CONSENT CALENDAR are considered routine and will be adopted by one motion. There will be no separate discussion of the items on the CONSENT CALENDAR unless discussion is requested by a member of the Council, staff, or public. If so requested, that item will be removed from the CONSENT CALENDAR and considered under CONSENT ITEMS PULLED FOR DISCUSSION.]

4.A Action on February 1, 2022 City Council Special Meeting Minutes
22-450
Approve the February 1, 2022 City Council Special
Meeting Minutes.

Recommendation:

4.B 22-17 Board, Commissions and Committee Minutes
Note and file the Minutes of:

Cultural Commission - March 7, 2022
Board of Library Trustees - March 7, 2022
Youth Commission - March 8, 2022
Recommendation:

4.C Action on Monthly Financial Status and Investment Report for January 2022 and Approve the Related Budget Amendments
22-410
Note and file the Monthly Financial Status and
Investment Reports for January 2022 as presented
and Approve Related Budget Amendments in various
funds requiring five affirmative votes and consistent
with City Charter Section 1305, “At any meeting
after the adoption of the budget, the City Council
may amend or supplement the budget by motion
adopted by the affirmative votes of at least five
members so as to authorize the transfer of unused
balances appropriated for one purpose to another
purpose, or to appropriate available revenue not
included in the budget,” as noted for each individual
item in Attachment 3.

Recommendation:

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4.D Action on an Agreement with Revel Environmental
Manufacturing, Inc. for the Purchase and Installation of Full Trash Capture Catch Basin Inserts
22-113

1. Authorize the City Manager’s Office to execute an
Agreement with Revel Environmental
Manufacturing, Inc. for the purchase and installation
of 470 full trash capture catch basin inserts for a
one-year term, with maximum compensation
not-to-exceed $301,000 (including a 10 percent
contingency); and

2. Authorize the City Manager’s Office to execute up
to four one-year options to extend the term of the
Agreement, subject to the appropriation of funds.

Recommendation:

4.E Action on an Agreement Between the Santa Clara Unified School District and the City of Santa Clara Pertaining to the Operation, Maintenance and Improvement for Public
Recreational Purposes of Buildings and Open Space Areas at Cabrillo Middle School
22-225
Authorize the City Manager to negotiate and execute
an Agreement Between the Santa Clara Unified
School District (SCUSD) and the City of Santa Clara
Pertaining to the Operation, Maintenance and
Improvement for Public Recreational Purposes of
Buildings and Open Space Areas located at Cabrillo
Middle School and to make minor amendments as
needed.

Recommendation:

4.F Action on a Vesting Tentative Parcel Map for 2302 Calle Del Mundo
22-238
Adopt a resolution to approve the Vesting Tentative
Parcel Map to create a single lot subdivision for one
residential condominium unit and three commercial
condominium units at the property located at 2302
Calle Del Mundo.

Recommendation:

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4.G Action on a Resolution Approving an Amendment to the Restated Water Supply Agreement (WSA) between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County to Allow a Minimum Purchase Transfer Among Wholesale Customers and a Transfer from the City of Mountain View to the City of East Palo Alto
22-34

1. Approve the attached Resolution Approving an
Amendment to the Restated Water Supply
Agreement (WSA) between the City and County of
San Francisco and Wholesale Customers in
Alameda County, San Mateo County and Santa
Clara County to Allow a Minimum Purchase
Transfer; and

2. Approve the attached Resolution Approving a
Minimum Purchase Transfer from the City of
Mountain View to the City of East Palo Alto.

Recommendation:

4.H Action on Amendment No. 1 to the Agreement with Gates and Associates Landscape Architecture, Inc. for Design Professional Services for the Westwood Oaks Playground Rehabilitation Project
22-442

1. Approve and authorize the Office of the City
Manager or designee to execute Amendment No. 1
to the Agreement for Design Professional Services
with Gates and Associates Landscape
Architecture, Inc. for the Westwood Oaks
Playground Rehabilitation Project in the amount
not-to-exceed $275,472; and

2. Authorize the Office of the City Manager or
designee to make minor modifications to the
agreement if needed.

Recommendation:

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4.I Adoption of a Resolution of Intention for Santa Clara Convention Center Complex - Maintenance District No. 183
22-226

1. Adopt a Resolution of Intention to order that the
alternative method for the levy of benefit
assessment be made applicable to the Santa Clara
Convention Center Complex Maintenance District
No. 183;

2. Set a hearing date of June 7, 2022 to approve the
Director’s Report FY 2022/23; and

3. Authorize the publication, mailing, and posting of
the Notice of Public Hearing as stated in the
Resolution of Intention.

Recommendation:

4.J Adoption of a Resolution of Intention for Parking Maintenance District No. 122 - Franklin Square
22-223

1. Adopt a Resolution of Intention to order that the \
alternative method for the levy of benefit
assessment be made applicable to the City of
Santa Clara Parking Maintenance District No. 122;

2. Set a hearing date of June 7, 2022 to approve the
Director’s Report FY 2022/23; and

3. Authorize the publication, mailing, and posting of
the Notice of Public Hearing as stated in the
Resolution of Intention.

Recommendation:

4.K Action on a Resolution Authorizing the Use of City Electric Forces at Various Locations
22-498
Adopt a Resolution authorizing the use of City Electric Forces at 2233 Calle Del Mundo, 3401 Victor Street,
3580 La Rambla Place, Ryder Street east of
Lawrence Expressway, 2300 Calle De Luna, 3350
Scott Boulevard, 3740 El Camino Real, 3201 Scott
Boulevard, 2175 Martin Avenue, 2305 Mission
College, 1313 Memorex Drive, 4200 Great America
Parkway, and 1111 Comstock Avenue.

Recommendation:

4.L Action on a Resolution Authorizing the Use of City Electric Forces Along Magellan Avenue
22-424
Adopt a Resolution authorizing the use of City Electric Forces at various pole locations along Magellan
Avenue.

Recommendation:

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4.M Action to amend Resolution 21-8989, “Proclamation of a Local Emergency Due to Extreme Drought Conditions in the City of Santa Clara” to Restrict Outdoor Watering to a Maximum of Two (2) Days per Week to Address the Severe Drought Emergency. 22-435
Alternative 1: Amend Resolution 21-8989
“Proclamation of a Local Emergency Due to Extreme
Drought Conditions in the City of Santa Clara” to
Restrict Outdoor Watering to a Maximum of Two (2)
Days per Week to Address the Severe Drought
Emergency.

Recommendation:

4.N 22-346 Action on Final Map for Tract 10566 at 3035 El Camino Real

1. Approve Final Map for Tract 10566;

2. Authorize the Office of the City Manager and/or
Designee to make minor modifications, if
necessary, prior to recordation; and

3. Authorize the recordation of Final Map for Tract
10566, located at 3035 El Camino Real [APN
220-32-059 (2021-22)].

Recommendation:

4.O Action on Resolution Establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limits for the November 8, 2022 Municipal Election
22-80
Adopt a Resolution establishing the Political
Campaign Voluntary Expenditure Limit and Campaign
Contribution Limit for the November 8, 2022 General
Municipal Election with:
the voluntary expenditure limit set to $47,580 based
on CPI adjustments for city-wide contests and sets a
separate voluntary expenditure limit for district-based contests not to exceed $25,730 (with future
adjustments based on CPI). City Council sets the
individual campaign contributions based on CPI
adjustments as:
· $650 for candidates who accept the
voluntary expenditure limit
· $320 for candidates who do not accept the
voluntary expenditure limit
Recommendation:

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4.P Action on the Waiver of the First Reading and Introduction of an Ordinance Approving the Westwood Oaks Park Master Plan
Update and Preferred Playground Schematic Design, in
Accordance with City Charter Section 714.1
22-179
Waive first reading and introduce an ordinance
approving the Westwood Oaks Park Master Plan
Update and the preferred Playground Schematic
Design in accordance with City Charter Section 714.

Recommendation:

4.Q 22-65 Action on 2022 Legislative Advocacy Positions Alternative 1: Adopt the 2022 Legislative Advocacy
Positions on Broadband, Cable Services, and
Wireless Telecommunications Facilities; COVID-19
Legislation; Energy Legislation, Regulations and
Issues; Housing; Human Resources and Public Sector
Employment; Public Safety; Regional Issues and
Collaboration; Sustainability and Environmental
Protection; Transportation Issues; and Water Supply
and Conservation.

Recommendation:

4.R Action to Approve Various Revisions to the As-Needed Salary Plan
22-537
Adopt a Resolution to approve revisions to the
As-Needed Salary Plan for various classifications to
satisfy the requirements of California Code of
Regulations Section 570.5 effective May 1, 2022.

Recommendation:

SANTA CLARA STADIUM AUTHORITY CONSENT CALENDAR

5.A Action on Stadium Authority Bills and Claims for the Month of January 2022
22-364
Approve the list of Stadium Authority Bills and Claims
for January 2022.

Recommendation:

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5.B Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending December 31, 2021 and Related Budget Amendment
22-271

1. Note and file the Santa Clara Stadium Authority
Financial Status Report for the Quarter Ending
December 31, 2021;

2. Approve a budget amendment to include the Rope
Rescue Gear Project in the Stadium Authority FY
2021/22 CapEx Budget in the amount of $27,054
from Stadium Authority Capital Expense Reserve;

3. Approve a budget amendment to include the
Stadium Personal Protective Equipment Project in
the Stadium Authority FY 2021/22 CapEx Budget in
the amount of $14,886 from Stadium Authority
Capital Expense Reserve; and

4. Approve a budget amendment to include the Public
Safety Command Post Dispatch System Project in
the Stadium Authority FY 2021/22 CapEx Budget in
the amount of $85,000 from Stadium Authority
Capital Expense Reserve.

Recommendation:

5.C Action on Request Submitted by Stadium Manager to Execute Agreements Execute Second Amendment to Agreement with Bear Electrical Solutions Inc., for Levi’s Naming Rights Existing Signage Lighting and Driver Repair CapEx Project and Agreements with HY Floor and Gameline Painting, Inc. for Club Space Flooring CapEx Project and Bear Insulation, Inc. for Stadium Insulation CapEx Project and Approve Related Budget Amendment.

1. Request from Stadium Manager to Execute Agreements Execute Second Amendment to Agreement with Bear Electrical Solutions Inc., for Levi’s Naming Rights Existing Signage Lighting and Driver Repair CapEx Project and Agreements with HY Floor and Gameline Painting, Inc. for Club Space Flooring CapEx Project and Bear Insulation, Inc. for Stadium Insulation CapEx Project and Approve Related Budget Amendment
22-484
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2. Report from the Stadium Authority for Action Regarding Stadium Manager’s Request to Execute Second Amendment to
Agreement with Bear Electrical Solutions, Inc. for Levi’s Naming Rights Existing Signage Lighting and Driver Repair CapEx Project and Agreements with HY Floor and Gameline Painting, Inc. for Club Space Flooring CapEx Project and Bear Insulation, Inc. for Stadium Insulation CapEx Project and Approve Related Budget Amendment
22-485

1. Approve the Stadium Manager’s request to execute
an Amendment No. 2 to the agreement with Bear
Electrical Solutions, Inc. to increase the not to
exceed amount from $250,000 to $670,000 for the
second year of the agreement term to cover the
cost of the interim repairs (for a total not to exceed
amount of $1.42 million over the initial three-year
term), subject to budget appropriations for every
contract year, and authorize the Executive Director
to approve and process the reimbursement of such
costs upon receiving final invoices and supporting
documentation from the Stadium Manager;

2. Approve the Stadium Manager’s request to execute
a one-time agreement with HY Floor and Gameline
Painting, Inc. for refinishing engineered hardwood
flooring surfaces in both BNY Mellon East Club and
BNY West Club at Levi’s Stadium (Club Space
Flooring CapEx Project) in the amount of $48,300;
authorize the Executive Director to approve the
execution of any and all documents associated
with, and necessary for the award, completion, and
acceptance of the project; authorize the Executive
Director to approve the execution of change orders
up to approximately 10% of the contract cost, or
$4,830, for a total not to exceed amount of
$53,130; and authorize the Executive Director to
approve and process the reimbursement of such
costs upon receiving final invoices and supporting
documentation from the Stadium Manager;

3. Approve a budget amendment to include the
Stadium Insulation CapEx Project in the Stadium
Authority FY 2022/23 CapEx Budget in the amount
of $517,500 from Stadium Authority Capital
Expense Reserve; and
Recommendation:

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4. Approve the Stadium Manager’s request to execute
a one-time agreement with Bear Insulation, Inc. to
furnish and install new insulation sheeting at Levi’s
Stadium (Stadium Insulation CapEx Project) in the
amount of $505,023; authorize the Executive
Director to approve the execution of any and all
documents associated with, and necessary for the
award, completion, and acceptance of the project;
authorize the Executive Director to approve the
execution of change orders up to $12,477, for a
total not to exceed amount of $517,500; and
authorize the Executive Director to approve and
process the reimbursement of such costs upon
receiving final invoices and supporting
documentation from the Stadium Manager.

5.D Action on Request Submitted by the Stadium Manager to Incur Charges for the June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN and Travel for the May 28-29 Grupo Firme Concerts at SoFi Stadium in Inglewood, CA

1. Request from the Stadium Manager to Incur Charges for the June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN and Travel for the May 28-29 Grupo Firme Concerts at SoFi Stadium in Inglewood, CA
22-509

2. Report from the Stadium Authority for Action on Request from the Stadium Manager to Incur Charges for the June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN and Travel for the May 28-29, 2022 Grupo Firme Concerts at SoFi Stadium in Inglewood, CA
22-510

1. Approve the Stadium Manager’s request to incur
charges up to $4,800 for the June 15-18, 2022
Event and Arena Marketing Conference in
Minneapolis, MN to cover registration fees, travel
expenses, and potential client entertainment for one
Stadium Manager employee; and

2. Approve the Stadium Manager’s request to incur
charges up to $2,900 to cover travel expenses and
potential client entertainment, for two Stadium
Manager employees to travel between May 28-30,
2022 for the May 28-29 Grupo Firme concerts at
SoFi Stadium in Inglewood, CA.

Recommendation:

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PUBLIC PRESENTATIONS
[This item is reserved for persons to address the Council or authorities on any matter not on the agenda that is within the subject matter jurisdiction of the City or Authorities. The law does not permit action on, or extended discussion of, any item not on the agenda except under special circumstances. The governing body, or staff, may briefly respond to statements made or questions posed, and appropriate body may request staff to report back at a subsequent meeting. Although not required, please submit to the City Clerk your name and subject matter on the speaker card available in the Council Chambers.]

CONSENT ITEMS PULLED FOR DISCUSSION

PUBLIC HEARING/GENERAL BUSINESS

6. Action on a Resolution Establishing the Average Per-Acre Land Values in order to set the Parkland In-Lieu Fees for FY2022/23 for New Residential Development
22-302
Adopt a Resolution to establish the Average Per-Acre
Land Values in order to set the Parkland In-Lieu Fees
for FY2022/23 for New Residential Development in
accordance with Title 17 (“Development”) Chapter 35
(“Park and Recreational Land”) of the City Code using
the December 31, 2021 land valuation report.

Recommendation:

7. Public Hearing: Action on the Adoption of the Proposed FY 2022/23 Municipal Fee Schedule and Parks & Recreation Cost Recovery Policy
22-99
Alternative 1 and 2:

1. Adopt a resolution for the “City of Santa Clara
2022/23 Municipal Fee Schedule” which (1) sets
new fees, rates and charges (collectively “fees”); (2)
amends existing fees; (3) deletes certain fees;
and (4) retains unchanged fees for various City
departments effective on July 1, 2022; and

2. Adopt a resolution approving the Parks & Recreation
Cost Recovery Policy used to set fees for the Parks
and Recreation Department.

Recommendation:

8. Action on a Response to a Written Request to Cover the Costs of City Services in Support of the Santa Clara Parade of Champions and the Cost of Facilitron Parking Fees
22-480
Recommendation: Staff makes no recommendation
WRITTEN PETITION (COUNCIL POLICY 030) REQUESTS SUBMITTED BY THE PUBLIC/COUNCIL City of Santa Clara Page 13 of 15 Printed on 4/14/2022
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9. Action on a Written Petition (Council Policy 030) Submitted by Nick Valencia Requesting to Place an Agenda Item at a Future Council Meeting to Discuss the future of the BMX track located on city property at 5451 Lafayette Street
22-531
Recommendation: Staff makes no recommendation.

10. Action on a Written Petition (Council Policy 030) Submitted by Mary Grizzle on behalf of the Members of Reclaiming our Downtown are Requesting to Place an Agenda Item at a Future Council Meeting to Discuss and Vote on the Current Downtown Urban Planning Firm WRT to Study the following 4 Financial Benefits of Moving City Hall to a Location within the 8 Blocks of the Original Downtown (Lafayette Benton Monroe Homestead):

1. The financial benefits and construction savings of moving city hall to an 8+ story mixed-use (offices) building;

2. An updated and complete analysis of the advantages of selling the acreage used by city hall on its current location on Warburton;

3. The substantial increase in private investment after a city hall has been brought back to Downtown as evidenced by several other American cities studied by Reclaiming our Downtown;

4. Financial benefit of a “completed Downtown” to the tax revenue of Santa Clara
22-532
Recommendation: Staff makes no recommendation

REPORTS OF MEMBERS AND SPECIAL COMMITTEES

CITY MANAGER/EXECUTIVE DIRECTOR REPORT

ADJOURNMENT
The next regular scheduled meeting is on Tuesday, May 10, 2022 in the City Hall Council Chambers.

City of Santa Clara Page 14 of 15 Printed on 4/14/2022
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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC) Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker." In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format. Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Individuals who require an auxiliary aid or service for effective communication, or any other disability-related modification of policies or procedures, or other accommodation, in order to participate in a program, service, or activity of the City of Santa Clara, should contact the City’s ADA Coordinator at 408-615-3000 as soon as possible but no later than 48 hours before the scheduled event.

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MEETING DISCLOSURES
City of Santa Clara
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22-534 Agenda Date: 4/19/2022

SUBJECT
Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees) Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association) City of Santa Clara Page 1 of 1 Printed on 4/14/2022
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22-461 Agenda Date: 4/19/2022

SUBJECT
Conference with Legal Counsel-Existing Litigation (CC)
Pursuant to Gov. Code § 54956.9(d)(1)
Arturo Arranga Ballesteros v. Stephen Stek, et al., United States District Court, Northern District of California, Case No. 3:20-cv-06207
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City of Santa Clara
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1500 Warburton Avenue
Santa Clara, CA 95050
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22-462 Agenda Date: 4/19/2022

SUBJECT
Conference with Legal Counsel-Existing Litigation (CC)
Pursuant to Gov. Code § 54956.9(d)(1)
Gloria Zamora & Antonio Zamora v. City of Santa Clara, et al., United States District Court, Northern District of California, Case No. 5:21-cv-05610
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-491 Agenda Date: 4/19/2022

SUBJECT
Conference with Legal Counsel-Existing Litigation (CC)
Pursuant to Gov. Code § 54956.9(d)(1)
Marcus Dean Diaz v. City of Santa Clara, et al., United States District Court, Northern District of California, Case No. 5:20-cv-03506
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-506 Agenda Date: 4/19/2022

SUBJECT
Conference with Legal Counsel-Anticipated Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(2) - Exposure to litigation Number of potential cases: 1
Facts and Circumstances: Pursuant to Gov. Code § 54956.9(e)(1) - Not disclosed on agenda City of Santa Clara Page 1 of 1 Printed on 4/14/2022
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-538 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Public Employee Appointment (Gov. Code §§ 54957, 54954.5, subd. (e).) Title: City Attorney
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-260 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Joint City Council and Planning Commission Study Session on Housing Element Update

COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development

BACKGROUND
Santa Clara, like all other Bay Area towns, cities, and counties, will be required to submit an adopted Housing Element to the State Department of Housing and Community Development (HCD) by January 2023. The Housing Element must identify sites planned for new housing and support prohousing policies and strategies to demonstrate that Santa Clara can address the City’s housing needs for all income levels and achieve the development of the City’s Regional Housing Needs Allocation (RHNA) by the end of the 6th Housing Element Cycle in January 2031. The City’s RHNA is 11,632 units, with those units distributed into four levels of affordability. Santa Clara, with help from the City’s planning consultant, MIG, Inc., is currently preparing a comprehensive update of the City’s General Plan Housing Element to fulfill this State requirement.

DISCUSSION
The purpose of this study session is to:

1. Review and provide an update on the following background information that was provided at earlier study sessions with the City Council (April 6, 2021) and Planning Commission (September 22, 2021).
a. City’s Regional Housing Needs Allocation
b. Strategies for Meeting the City’s RHNA
c. New State Housing laws

2. Provide a more detailed overview of the State’s new affirmatively furthering fair housing (AFFH) requirements and Assessment of Fair Housing (AFH) component of the Housing Element Update.

A copy of the April 6, 2021 City Council study session staff report and presentation are attached for reference.

Santa Clara Regional Housing Needs Allocation
The RHNA process for the 9-County Bay Area region began with HCD determining the total number of new homes that would need to be built, and how affordable those homes would need to be, in order to meet the housing needs of people at all income levels. The Bay Area’s RHNA for the 8-year period covering 2023-2031 is 441,176 housing units, an almost 135% increase from the current 2015 -2023 RHNA, which was 187,990 units.

The Association of Bay Area Governments (ABAG) then conducted a public process to develop a City of Santa Clara Page 1 of 5 Printed on 4/14/2022
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22-260 Agenda Date: 4/19/2022
RHNA Plan for distributing a share of the region’s housing need to each of the Bay Area’s towns, cities, and counties.

Following that process and subsequent to the City’s previous study sessions, on January 12, 2022, the HCD approved the ABAG adopted 6th Cycle (2023-2031) RHNA Plan.

The final allocations for the City of Santa Clara, and how that relates to allocations for Santa Clara County and the Bay Area, are as follows:
· Bay Area: 441,176 units
· Santa Clara County: 129,579 units
· City of Santa Clara: 11,632 units
The RHNA numbers are also assigned to different rent/cost levels that correspond to what is affordable for different households based on their income levels as a percentage of the Area Median Income (AMI). This is a breakdown of the City of Santa Clara final allocations by income category:
· Very Low (0-50% AMI): 2,872 units
· Low (50-80% AMI): 1,653 units
· Moderate (80-120% AMI): 1,981 units
· Above Moderate (120%+ AMI): 5,126 units
Based on this distribution, a majority of the City’s RHNA is intended to fall within the affordable categories with approximately one-third affordable to Very Low and Low- Income categories.

Conventional residential development, including development subject to the City’s 15% Inclusionary requirement and supplemented by 100% affordable housing projects, would not normally be expected to generate the same percentage of affordable units. As planned residential lands within the City are developed, the City must demonstrate on an annual basis that it maintains the capability to produce the full amount of affordable units in the City’s RHNA on the remaining residential land.

Therefore, to comply with the State’s No Net Loss Law, jurisdictions are required to ensure that sufficient capacity exists in housing elements to accommodate their RHNA throughout the entire eight -year planning period, especially in the affordable income categories. HCD recommends jurisdictions create an adequate buffer in their sites inventory of between 15 and 30 percent more capacity than required. HCD carefully reviews the Housing Element submitted by each jurisdiction and may not approve a Housing Element that they consider unlikely to achieve the RHNA.

For Santa Clara, a buffer between 15 and 30 percent would mean establishing capacity for between approximately 13,377 and 15,122 units at the start of the 6th Housing Element Cycle. Santa Clara will also track development of the sites in the inventory annually to ensure that the remaining sites are sufficient to meet the City’s unmet RHNA.

Strategies for Meeting Santa Clara’s Housing Needs
As described in the previous study sessions, demonstrating that the City has the ability to meet the City’s 6th Cycle RHNA (11,632 units) will be a challenge. In the seven years of the current 5th Cycle, where the City has a much smaller RHNA of 4,093 units, a total of 5,266 units have been created (building permits issued), which is an average of approximately 750 units per year. In order to achieve the City’s 6th Cycle RHNA (11,632 units), the City would have to almost double previous housing production, building an average of approximately 1,450 units each year for the next eight City of Santa Clara Page 2 of 5 Printed on 4/14/2022
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22-260 Agenda Date: 4/19/2022
years. With the number of units anticipated from the City’s current and ongoing long-range planning efforts (El Camino Real, Patrick Henry Drive, and Tasman East Specific Plans, Downtown Precise Plan, and Freedom Circle Focus Area) and other pending and anticipated housing projects, Santa Clara should be able to demonstrate sufficient capacity, including an adequate buffer, to meet the 6th Cycle RHNA Housing Element requirement.

The City’s recently adopted affordable housing ordinance, pending Zoning Code Update, and programs and policies being brought forward in the Housing Element update will facilitate the production of housing at all levels of affordability and help to fulfill the supporting policy requirements for the Housing Element.

Attached for reference is the Housing Plan from the current Housing Element, which includes the City’s goals, policies, and implementing actions for housing production, as well as for the conservation (i.e., maintenance) and preservation (i.e., protection against conversion to market rate) of existing affordable housing stock, and housing support and services.

New State Housing Laws
AB 215 (2021). This legislation was approved on September 28, 2021, after the previous study sessions. Among other changes, this law requires local jurisdictions to make the first draft of revisions to housing elements available for public comment for at least 30 days and for jurisdictions to take at least 10 business days to consider and incorporate any public comments before submitting the draft to HCD. The law also increases HCD’s review of draft housing elements from 60 days to 90 days.

HCD has 60 days to review subsequent drafts and/or the adopted Housing Element. This results in a significant change to the City’s schedule for preparation of the Housing Element, effectively shortening the time available by 70 or more days from what was previously discussed with the Council. Staff has worked with the consultant to incorporate these new requirements into the schedule below.

The following are key milestones for the City’s Housing Element Update:
· 2022
o April - Housing Stakeholders Meeting(s)
o April 19 - Joint City Council / Planning Commission Study Session o Early June to early July - Public Review Draft Housing Element o Mid-June - Housing Stakeholders Meeting(s)
o Mid-July - Joint City Council / Planning Commission Study Session o Late July - Submit Final Draft Housing Element to HCD o Late October - Receive comments on Final Draft Housing Element o Early November - City Council Study Session
o Mid-November - Planning Commission Hearing
o December - City Council Adoption Hearing
· 2023
o By January 31 - Submit Adopted Housing Element to HCD o By May 31 - within 120 days of January 31, 2023, the City must have an adopted and HCD certified Housing Element
AB 686 (2018). Another new State requirement, AB 686, was highlighted in the previous study City of Santa Clara Page 3 of 5 Printed on 4/14/2022
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22-260 Agenda Date: 4/19/2022
sessions. This law added a new provision to ensure all laws, programs, and activities, including housing elements, affirmatively further fair housing. All housing elements must now include a program that promotes and affirmatively furthers fair housing opportunities throughout the community for all persons and all housing elements must contain a detailed AFH.

Attached for reference is an AFFH guidance memo that HCD released last spring. The introduction provides the background and history of AFFH. Part 1 describes the obligation for all public agencies in California to affirmatively further fair housing. Part 2 includes an overview of how AB 686 amended Housing Element law.

AB 686 added to or expanded on the following housing element requirements:
o Public outreach - jurisdictions must make a diligent effort to include public participation from all economic segments of the community and key stakeholders in meaningful, frequent, and ongoing participation.
o Assessment of Fair Housing - jurisdictions must identify and analyze local and regional trends related to:
o Fair housing enforcement and outreach
o Integration and segregation
o Racially or ethnically concentrated areas of poverty
o Disparities in access to opportunity
o Disproportionate housing needs, including displacement risk o Site Inventory - analysis should:
o Address segregation and integration, how sites are identified in a manner that better integrates them with the community and how sites impact existing patterns of segregation
o Evaluate whether RHNA income groups are concentrated in a certain area(s) of the city o Identification and prioritization of contributing factors - evaluation must:
o Identify fair housing issues and significant contributing factors o Prioritize contributing factors (giving highest priority to factors that most limit or deny fair housing choice or access to opportunity)
o Discuss strategic approaches to inform and strongly connect goals, policies, and actions
o Goals, Policies, and Actions - must have specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, date, or benchmarks for implementation. Programs to “explore” or “consider” on an “ongoing” basis are inadequate to demonstrate a beneficial impact in the planning period.

The City of Santa Clara is a participant in the Santa Clara County Assessment of Fair Housing, a collaborative examination of structural barriers to fair housing choice and access to opportunity for members of historically marginalized groups protected from discrimination by the federal Fair Housing Act . This assessment, which will outline potential fair housing priorities and goals to overcome fair housing issues from a cross-jurisdictional and regional perspective, should provide a good basis for identifying fair housing policies and programs that could be incorporated into the City’s Housing Element.

The study session will provide an opportunity to review and discuss AB 686 and what other City of Santa Clara Page 4 of 5 Printed on 4/14/2022
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jurisdictions with recently adopted and certified housing elements are doing to take meaningful actions that combat housing discrimination and address significant disparities in housing needs and access to opportunity.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5) in that it is a governmental organization or administrative activity that will not result in direct or indirect changes in the environment.

FISCAL IMPACT
There is no fiscal impact associated with this status report. On January 25, 2022 the City Council approved a consultant agreement with MIG, Inc. to update the City’s Housing Element and accepted $499,150 in reimbursable grant funding from the State’s Local Early Action Planning (LEAP) grant program. Of this grant funding, $199,968 will be used to fund MIG’s work and the remaining $299,182 will be used to fund City staff expenses. All grant funds must be expended on or before December 31, 2023.

COORDINATION
This report was coordinated with the City Attorney’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION
Note and file the report on the Housing Element Update.

Reviewed by: Andrew Crabtree, Director, Community Development Department Approved by: Office of the City Manager

ATTACHMENTS

1. April 6, 2021 City Council Study Session Staff Report

2. April 6, 2021 City Council Study Session Presentation Slides

3. Current Housing Element Housing Plan

4. April 2021 HCD Affirmatively Further Fair Housing Guidance Memo City of Santa Clara Page 5 of 5 Printed on 4/14/2022
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
21-918 Agenda Date: 4/6/2021

REPORT TO COUNCIL

SUBJECT
Study Session: Housing Element Update

COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development

BACKGROUND
California state law mandates that all local governments adequately plan to meet the housing needs of their communities at all income levels. Under the law, the State Department of Housing and Community Development (HCD) first determines each region’s housing need for an upcoming eightyear planning period. The regional council of governments, which in the Bay Area is the Association of Bay Area Governments (ABAG), then allocates a “fair share” of the unit total to each jurisdiction.

These first two parts of the process are known as the Regional Housing Needs Allocation (RHNA).

Finally, local governments update their housing elements (a required element of the General Plan) to show how they will accommodate their share of the RHNA. Because the State assigned an overall housing need for the Bay Area that is approximately 2.5 times the need for the prior housing element cycle, jurisdictions throughout the ABAG region will receive significantly larger RHNA targets than they did in prior RHNA cycles.

The RHNA planning process for the Bay Area’s sixth housing element cycle, which will last from 2023 to 2031, began in 2019 by ABAG with a series of Housing Methodology Committee stakeholder meetings, and culminated in January 2021 with the adoption by the ABAG Executive Board of a RHNA distribution methodology for the allocation of housing needs to each city, town, and county in the region. The State HCD is currently reviewing the ABAG methodology for consistency with State criteria. The RHNA process will continue through 2021 with the release of draft allocations for each ABAG jurisdiction, an appeal process, and final allocations at the end of the calendar year. A preliminary allocation has been identified for each ABAG jurisdiction by utilizing the recently adopted methodology.

Santa Clara, like all other Bay Area towns, cities, and counties, will be required to submit an adopted Housing Element to HCD by January 2023. The Housing Element must include identified sites for planned housing and pro-housing policies and strategies for how Santa Clara can achieve the development of the units allocated by the end of the sixth housing element cycle in January 2031.

HCD will audit the Housing Element and if compliant, will certify it later in 2023. The Housing Element will include identified inventory sites that must have appropriate General Plan and zoning designations to enable housing development at indicated densities. These sites must also have received environmental clearance through the California Environmental Quality Act (CEQA) to allow housing at the densities called for. After adoption of the Housing Element, Santa Clara will also be responsible for submitting General Plan annual progress reports to HCD and the Governor’s Office of City of Santa Clara Page 1 of 7 Printed on 2/15/2022
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Planning and Research (OPR) to document that the City is on course with the issuance of entitlements and building permits for new housing units. In order to meet this timeline, City of Santa Clara staff have begun working on preparation of the City’s next housing element, utilizing the City’s preliminary RHNA targets provided by AGAB upon adoption of the RHNA distribution methodology.

DISCUSSION
Staff will provide an overview of the State’s requirements for preparation of the City’s 2023-2031 Housing Element at a City Council study session on March 23, 2021. The following is provided as background information in advance of the study session.

Santa Clara RHNA Allocation
The RHNA sets a citywide target for housing production over the 8-year housing element timeframe for units affordable to households based on four different income levels. A key component of the City’s Housing Element will be an inventory of housing development sites with demonstrated capacity to support new residential development that could fulfill the RHNA targets. The four income categories are Very Low Income (affordable to households with 0-50% of the Area Median Income (AMI)), Low Income (50-80% AMI), Moderate Income (80-120% AMI) and Above Moderate or Market Rate units (above 120% AMI). For reference, the San Jose-Sunnyvale-Santa Clara HUD Metro Fair Market Rate Area <https://www.huduser.gov/portal/datasets/il/il2020/2020MedCalc.odn? inputname=METRO41940M41940*San+Jose-Sunnyvale-Santa+Clara% 2C+CA+HUD+Metro+FMR+Area&selection_type=hmfa&year=2020&wherefrom=mfi&incpath=% 24incpath%24> AMI for a family of four is $141,600 for 2020. Very Low Income housing is thus defined as housing affordable to households with an income of $70,800 or less.

Based upon the RHNA methodology adopted by the ABAG Board, the City of Santa Clara has been given the following preliminary RHNA distribution for the sixth housing element cycle:
· Very Low Income Units: 2,872
· Low Income Units: 1,653
· Moderate Income Units: 1,981
· Above Moderate (Market Rate) Units: 5,126
· Total RHNA: 11,632
The City will need to base its Housing Element on the City’s final RHNA distribution. Accordingly, the Housing Element under preparation will need to demonstrate capacity for the development of a minimum of 11,632 housing units. More than half of the identified capacity will need to meet the State’s criteria to qualify as affordable housing capacity. For reference, 4,093 units were assigned to the City of Santa Clara in the current fifth housing element cycle (2015 to 2023).

Affordable Housing Sites
Housing Element law allows sites to be considered potentially affordable within a jurisdiction’s Housing Element if the sites support densities of at least 30DU/AC. Therefore, many of the City’s lands designated for medium or high residential densities could qualify as part of the City’s affordable housing lands inventory. However, jurisdictions must demonstrate, on an annual basis, that sites remain available to fulfill the City’s unmet RHNA allocation. If sites designated as affordable in the Housing Element do not get entitled at the planned affordability levels, the City will need to demonstrate through the “no net loss” provision discussed below how the City may still have capacity or will create additional capacity to achieve RHNA affordable units elsewhere in the city.

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21-918 Agenda Date: 4/6/2021
New State Requirements
In addition to the challenge of planning for almost three times the RHNA number of units between the current fifth and the upcoming sixth cycle, recent changes to State Housing Element Law add complexities for Santa Clara as it prepares the upcoming Housing Element. · SB 166 (2017): adds a “no net loss” provision for housing element site inventories. If an approved project on a housing element site has fewer units by income category than what was identified in the Housing Element, the remaining sites in the Housing Element must be adequate to meet the unmet RHNA requirements, or the City is required to identify and rezone additional sites to fully accommodate the unmet need within 180 days. · AB 1397 (2017): increases eligibility requirements for housing element inventory sites. Sites in the inventory must now be both suitable and available. Sites smaller than a halfacre or larger than 10 acres are not considered adequate for lower income housing unless the jurisdiction provides examples of sites of equivalent size that were successfully developed during the prior planning period for an equivalent number of lower income housing units or other supporting evidence. Vacant sites cannot be used for more than two consecutive planning periods, and non-vacant sites for consecutive planning periods, unless the site is rezoned to allow at least 30 units per acre and by-right development if at least 20% of the units are affordable to lower income households. In addition, non-vacant sites must have realistic and demonstrated potential for redevelopment. If the City uses non-vacant sites to accommodate most of its lower income housing need, existing uses are presumed impediments absent substantial findings that the use is likely to be discontinued during the planning period. Finally, non-vacant sites with rent-controlled units, deed-restricted units, or units with lower income residents within the past five years must be replaced at the same or a lower income level.
· AB 686 (2018): adds a new provision to ensure all laws, programs, and activities, including Housing Elements, affirmatively further fair housing. Beginning January 1, 2019, all housing elements must now include a program that promotes and affirmatively furthers fair housing opportunities throughout the community for all persons. All housing elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH). · AB 725 (2020): imposes a new minimum density of 4 dwelling units per acre (du/ac) for at least 25% of the sites designated as moderate-income or above-moderate in the next Housing Element, and imposes a maximum density of 100 dwelling units per acre for at least 25% of the sites designated as moderate-income. Currently, most housing development in California comprises either single-family dwellings (which can be an inefficient use of land) or mid- or high-rise construction (which is expensive to build). This bill is intended to help encourage the development of “missing-middle” housing types that accommodate more units per acre, but are not inherently expensive to build.

Strategies
While Santa Clara’s RHNA allocation is high and will be challenging to address, the City has been working in the last few year on significant long-range planning efforts to support growth in several strategic areas throughout the City. Completing the long-range planning processes and facilitating City of Santa Clara Page 3 of 7 Printed on 2/15/2022
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21-918 Agenda Date: 4/6/2021
entitlements within those plan areas will be a key strategy for the City’s Housing Element.

Additionally, updating the citywide affordable housing ordinance, creating objective development standards, and continuing to facilitate Accessory Dwelling Units will also be key pro-housing strategies for Santa Clara to include in its Housing Element update to achieve its RHNA requirements.

Long Range Planning Efforts
The City is currently working on focused redevelopment within areas of the city through the development of the El Camino Real Specific Plan, Patrick Henry Drive Specific Plan, Downtown Precise Plan, and Freedom Circle Focus Area. The Tasman East Specific Plan is also proposed to be Amended to potentially increase capacity beyond the 4,500 units which were originally adopted with the original plan in 2018. While the land use plan is still being developed for the Downtown Precise Plan and thus the residential capacity in the Precise Plan is still undetermined, the efforts of the other listed long- range planning efforts could culminate in a total of 16,030 new units that may be constructed in the sixth RHNA cycle and thus could be identified in Santa Clara’s Housing Element.

The El Camino Real Specific Plan, Patrick Henry Drive Specific Plan, and Freedom Circle Focus Area Plan are anticipated to be ready for City Council adoption in 2021.

These efforts could collectively address the City’s RHNA obligation regarding the total number of units to be produced and they present a timely opportunity to address the need to achieve more units of deeper affordability per RHNA requirements. For instance, the draft El Camino Real Specific Plan proposes a greater depth of affordability than the current Citywide affordable housing ordinance, as it proposes 15% of units to be affordable to households at 80% AMI. The affordability criteria included in the draft El Camino Real Specific Plan was proposed prior to Santa Clara receiving the RHNA requirements, which are higher than anticipated. Given that these long-range planning areas are where Santa Clara will see most new growth in the upcoming RHNA cycle, it will be critical to determine the right affordability requirements prior to the adoption of these plans.

Citywide Affordable Housing Ordinance
The City also has a citywide affordable housing ordinance, which was adopted by the City Council in 2018. Santa Clara was one of the first cities in Santa Clara County to adopt such an ordinance and includes a commercial linkage fee so that most types of new development contribute to the creation of affordable housing. The current ordinance requires that all rental or ownership residential projects with 10 or more units provide 15% of the units at rents or sales prices that are affordable to households at a Moderate Income level of 100% AMI. Project developers can also propose an to deliver affordable units in an alternate form provided that they provide units at deeper levels of affordability to better align with the City’s RHNA targets and the value of the proposal to the City is equal or greater than what is specified in the citywide affordable housing ordinance.

To further meet the City’s RHNA requirements, staff has begun evaluating the possible modification of the City’s Affordable Housing Ordinance to produce more affordable units. Staff has contracted with a consulting firm, Economic & Planning Systems (EPS), to evaluate the financial feasibility for developers to meet increased affordability requirements. While early in the process, EPS has developed several proformas corresponding to different types of residential development and with different affordability requirements, and tested their assumptions for those proformas with a sample group of local residential developers. Preliminary results show there may be some, but limited opportunities to require either more units or deeper affordability on certain residential project typologies without making development infeasible. Expanding opportunities for use of and/or City of Santa Clara Page 4 of 7 Printed on 2/15/2022
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21-918 Agenda Date: 4/6/2021
increasing in-lieu fees will also be evaluated. There is a fine balance to increase the effective production of affordable housing through updates to the citywide ordinance, especially to produce more low and very low income units required through RHNA, while also ensuring that projects are still profitable so that the City’s affordability requirements do not become a barrier overall to housing production.

An initial residential developer stakeholder meeting was held on March 12, 2021 to broadly inform the development community that this study is in progress. Participants included approximately 30 residential developers as well as representatives of SV@Home and the Building Industry Associates.

Staff facilitated multiple break-out rooms so that participants could provide extensive input regarding the types of housing development addressed in the study, current market conditions, and measures that could help maintain feasibility for development while also producing more affordable units. A summary of input from the meeting is attached (Attachment 2).

Additional stakeholder outreach will be conducted to receive feedback as policy alternatives are developed for potential modification of the ordinance.

Objective Development Standards
Recent State legislation enables housing projects to have streamlined processes if they build in conformance to the City’s General Plan and limit the City’s review process to objective development standards. Such standards are most typically established within the Zoning Ordinance so that their application is non-discretionary. While Santa Clara, like many cities, has relied heavily on the Planned Development Zoning process to entitle new higher density and mixed-use residential projects, in the future projects will increasingly be able to bypass such a process and utilize existing zoning standards.

The City has made steps to address this need by implementing new zoning districts with the recent adoption of the Lawrence Station and Tasman East Specific Plans, and is also including new, modernized zoning districts with objective standards in the Zoning Code update in process. The latter effort is particularly important as the current Zoning Code, originally adopted in 1969, does not set forth standards that relate well to modern development typologies. The City has been working on a comprehensive update to the Zoning Code, and a public review draft is expected in the Summer 2021 timeframe. The new Zoning Code proposes new mixed use and multifamily development standards that are more reflective of contemporary projects. These activities will both streamline housing projects and create more tools to achieve design standards.

Accessory Dwelling Units
State law has facilitated the production of affordable housing by reducing the ability of local jurisdictions to apply restrictive standards or a discretionary process for the review of accessory dwelling units (ADUs). Like most cities, Santa Clara has seen an increase in the development of ADUs and has issued building permits for 129 ADUs since 2019. The City is working with the other Santa Clara County agencies through a Planning Collaborative, which utilizes State grant funds to collaborate on work associated with Housing Elements, to analyze the production of ADUs in terms of the level of affordability. This data can be used to show how the City will in part meet its future RHNA requirements through new ADU construction.

Through outreach conducted with the Zoning Code update, feedback received from many members of community includes establishing a size for ADUs in a manner more proportionate to the size of the City of Santa Clara Page 5 of 7 Printed on 2/15/2022
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existing single-family lot. Currently Santa Clara allows all ADUs to be up to 1,200 square feet whereas the State requires only a minimum of 800 square feet for ADUs. 1,200 square foot ADUs are larger than many detached single-family residences in the City. Right sizing ADUs may also be a strategy that increases their affordability as larger units command higher rents. Santa Clara will continue to investigate how to further facilitate the development of ADUs in general to support homeowners through the process.

Housing Element Update Work Program
The Housing Element update is a high priority work item for the next two years.

Santa Clara has been awarded $499,150 through the State’s 2020 Local Early Action Planning (LEAP) Grants Program Award, which is a reimbursable grant to the City to fund consultant work to develop the Housing Element as well as to fund a staff person focused on facilitating housing projects and developing pro-housing policies. Staff will be working through a consultant selection process to bring on board a consultant by July 2021. Staff will provide periodic updates with the City Council through the Housing Element’s development and the final draft will be provided to City Council in Fall of 2022 for adoption.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.

FISCAL IMPACT
There is no fiscal impact associated with this status report. It is anticipated that the City will utilize consultants to assist in the preparation of the Housing Element. The City has been awarded $499,150 through the State’s 2020 Local Early Action Planning (LEAP) Grants Program Award, which is a reimbursable grant to the City to fund consultant work to develop the Housing Element. The contract and corresponding budget approval to utilize the reimbursable grant will be brought forward for City Council for consideration by July 2021.

COORDINATION
This report was coordinated with the City Attorney’s Office.

RECOMMENDATION
Note and file the report on the Housing Element Update.

Reviewed by: Andrew Crabtree, Director, Community Development Department Approved by: Deanna J. Santana, City Manager
City of Santa Clara Page 6 of 7 Printed on 2/15/2022
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ATTACHMENTS

1. Santa Clara Long-Range Planning Activity Map

2. Summary of Stakeholder Input from March 12, 2021 Outreach Meeting City of Santa Clara Page 7 of 7 Printed on 2/15/2022
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City Council
Item #3
RTC 21-918
Study Session
Housing Element
April 6, 2021
Housing Element
Study Session Goals • Overview of State Requirements
for Housing Element Update
• Share information on RHNA
allocation process
• Provide input on potential
strategies including an update
to the Affordable Housing
Ordinance
• Review next steps
2 Housing Element
State Requirements
• General Plan – Required Elements: 7 (+ 1 or 2*)
• Housing Element must be reviewed / approved
by California State Housing and Community
Development (HCD)
• Jurisdictions must update their housing
elements every eight (8) years:
• Cycle 5 Housing Element certified 2/13/2015
• Cycle 6 Housing Element due 1/31/2023
3 Celebrating Our
Past, Present and
Future
Housing Element
Status of Required General Plan Amendments
Amendments to be made during the next Housing Element Update, or by 2022, as required by State Law:
• An Environmental Justice element, to identify objectives and policies to reduce the unique or compounded health risks in disadvantaged communities
• Climate Adaptation and Resilience Policies, to be included as a part of the 2021 Climate Action Plan Update
• An update of the Safety Element for Fire Hazards and Climate Change 4 Housing Element
Components
• Review of previous Housing Element
• Goals, Programs, and Policies
• Housing Needs
• Governmental and Non-Governmental
Constraints
• Sites Inventory and Analysis
– Availability per State criteria
– RHNA capacity per State criteria 5
Apperldix Twelve: HOUSING ELEMENT
FIGURE 8.12-6-4: EL CAMINO REAL FOCUS AREA (WESTERN PORTION) I PageS.12-105
Housing Element
Regional Housing Needs Allocation (RHNA)
• State Department of Housing and Community Development (HCD) determines regional housing needs by affordability levels for 8-year planning cycles
• Association of Bay Area Governments (ABAG) allocates share of region’s housing needs by affordability level to every jurisdiction • Local jurisdictions update their housing elements every 8 years to demonstrate available capacity to accommodate their allocation 6 Housing Element
Regional Housing Needs Allocation (RHNA)
• Housing Element must demonstrate capacity for full development of RHNA within the 8-year time period & provide annual progress reports • RHNA Allocation is divided up by income level
– Very Low Income (0-60% AMI)
– Low Income (60-80% AMI)
– Moderate Income (80-120% AMI)
– Above Moderate / Market Rate (>120% AMI)
7 Housing Element
Housing Production 2015-2022 (Building Permits)
8 Income
Level
RHNA
Target 2015 2016 2017 2018 2019 2020 Total
Very Low 1,050 1 130 37 168
Low 695 1 15 158 174
Moderate 755 19 16 6 5 8 3 57
Above 1,593 212 399 1,609 1,162 626 415 4,423
Total 4,093 231 417 1,615 1,167 779 613 4,822
Housing Element
Cycle 6 (2023 – 2031) RHNA Allocation Process
• State allocation to Bay Area (ABAG) Region
• ABAG Board adopted Draft RHNA Methodology (1/21/2021) • HCD reviews Draft RHNA Methodology
• ABAG Final RHNA Methodology/DRAFT RHNA (spring 2021)
• Appeal Period (summer 2021)
• Final RHNA (end 2021)
• (Adopted Housing Element due January 2023)
9 Housing Element
Cycle 6 (2023 – 2031) RHNA (Illustrative Allocations)
• Bay Area: 441,176 units (~2.5 x Cycle 5)
• Santa Clara County: 129,579 units (29.4% of Bay Area) 10 City of Santa Clara (Illustrative Allocations)
Very Low Income (0-60% AMI) 2,872 units
Low Income (60-80% AMI) 1,653 units
Income (80-120% AMI) 1,981 units
Above Moderate/Market Rate (>120% AMI) 5,126 units
Total 11,632 units (2.6% of County)
Housing Element
City of Santa Clara Cycle 5 and 6 Comparison
11 Income Category Cycle 5 (2015-2023) Cycle 6 (2023-2031) Very Low 1,050 2,872
Low 695 1,653
Moderate 755 1,981
Above Moderate 1,593 5,126
Total 4,093 11,632
Housing Element
Cycle 6 (2023 – 2031) Strategies
• General Plan Growth Capacity
• Long Range Plans (Specific Plans, Precise Plans, Focus Areas) • Accessory Dwelling Units (ADUs)
• Zoning Code Update
• Affordable Housing Ordinance
12 Housing Element
Strategies – Long Range Plans
13 El Camino Real SP
Downtown Precise Plan
Patrick Henry Dr. SP
Freedom Circle Focus Area
Tasman East SP
Planned Capacity: ~16,000 Units
Housing Element
Accessory Dwelling Units
• 71 Building Permits Issued (2020)
• Zoning Code Update
• Affordable by design
• Housing Collaborative providing
support
14 Housing Element
Zoning Code Update
• Codify objective design standards
• Create development standards
that reflect modern development
(reduce need for PD Zonings)
• Rezone sites to be consistent with
General Plan
15 Smaller Scale
Building Types
1 Varied
J ~ Roof Forms
Tree + Landscape
Screening
Tree + Landscape
Screening
Varied
Building~ t Setback
45 degree
Daylight Plane
Building Mass
Step Down
~ Upper Floor
Setback
Building~ t Setback
45 degree
Daylight Plane
Housing Element
Affordable Housing Ordinance
• Tasman East Specific Plan (10% Phase 1, 15% Phase 2)
• Citywide Affordable Housing Requirements (adopted January 2018) – Projects of 10+ units provide at least 15% of units affordable at average income <= 100% AMI
– Projects <10 units can pay In-Lieu Fee or provide 1 inclusionary unit – Option for alternative fulfillment that benefits the City – Commercial linkage fees
• Feasibility Study (2021) 16
Housing Element
Affordable Housing Ordinance – Feasibility Study
• Initiated to provide information
• No specific proposal
• Meet legal requirements
• Independent verification of market feasibility
17 Housing Element
Neighboring Cities Affordable Housing, Citywide Rental
18 0%
5%
10%
15%
20%
25%

VLI LOW MOD
I I
Housing Element
Neighboring Cities Affordable Housing, Citywide For-Sale 19 5%
0%
25%
20%
15%
10%

VLI LOW MOD
,Iv.
0~
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~~ -,y
'tt-vv.
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~ 0,1~
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. "'-->~ S' J' 'J
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0 '9J... :i,_ ~/ '9J... ~~ •
~ /. ~~ <Y •. <Y V'/A
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0 ~~
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■
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Housing Element
Affordable Housing Feasibility Prototypes
20 Product Density &
Construction Type
Mid rise Condo 50 DU/Ac, Type V
Mid rise Rental 65 DU/Ac, Type V
Intermediate
Rise Rental
100 DU/Ac, Type III
High Rise Rental 200 DU/Ac, Type I
Townhome 20 DU/Ac, Type V
Townhouse Mid rise Type III
Mid rise Type V High rise Type I
Housing Element
Affordable Housing Feasibility Prototypes
21 FEBRUARY 2021 Prototyping And Initial Pro Formas
Developer Input
March
12 City Council Study Session
APRIL 2021+ Next Steps TBD
April 6
Housing Element
Affordable Housing Ordinance Considerations
• Other cities have similar or greater requirements
• Some Prototypes (e.g., Type I) already face feasibility challenges • Some Prototypes (e.g., Type III) currently at feasibility limit • Townhouse development most able to bear increased requirements • Some projects become feasible if they can use a density bonus • Increased inclusionary requirement could cause project to qualify for density bonuses, resulting in more units that offset increased costs • Density bonus not helpful if it requires a change in construction type 22 Housing Element
Possible Options
• Maintain Status Quo
• Proceed with focused changes based on feasibility study • Re-evaluate commercial linkage fees
• Explore incentives or changes to other requirements that can offset financial impact of added affordability requirements
23 Housing Element
Process
24 Spring /
Summer 2021
Research/ Data
Gathering/Sites
Analysis
Fall 2021 /
Winter 2022
Draft Element
Prep &
Stakeholder
Outreach
Winter /
Spring 2022
Public Review of
Draft Housing
Element
Summer 2022
Planning
Commission
Hearing
Fall 2022
City Council
adoption
Winter 2022
HCD Review &
City Revisions
Fall 2021
CEQA Compliance
HCD
Certification
City Council
Item #3
RTC 21-918
Study Session
Housing Element
April 6, 2021

Page 8 ends

8.12 Appendix Twelve: HOUSING ELEMENT

8.12-7 HOUSING PLAN
The goals, policies, and actions delineated in this chapter serve to support the City’s vision of providing decent housing and a suitable living environment for every resident.

8.12-7.1 Goals and Policies
The Housing Plan identifies the City’s goals for neighborhood conservation, housing production, housing support, and housing opportunities. The goals are supported by policies which are implemented through a series of actions.

Goal A Create and maintain high-quality, livable, and unique residential neighborhoods and preserve established single-family
neighborhoods.

Policy AȬ1: Maintain and improve the quality of residential neighborhoods, eliminate housing deficiencies and prevent future blight through the encouragement of ongoing maintenance, rehabilitation and conservation of existing housing stock.

Policy AȬ2: Provide code enforcement support for residential neighborhoods in conformance with City Code and Zoning Ordinance regulations.

Policy AȬ3: Promote compatibility between neighborhoods while respecting differences in neighborhood character.

Policy AȬ4: Promote consensus with City Design Guidelines.

Goal B Manage growth in the City by designating suitable vacant or underutilized sites for new residential development and ensuring compatibility with community goals and existing neighborhoods.

Policy BȬ1: Disperse affordable housing units throughout the City to avoid a concentration in any one neighborhood.

Policy BȬ2: Encourage the building of higher density housing on appropriate vacant or underutilized sites.

Policy BȬ3: Encourage the annual construction of the number of housing units necessary to meet the City’s regional housing needs determination through housing finance and reducing development constraints.

Policy BȬ4: Promote compatibility between neighborhoods while respecting differences in neighborhood character.

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GENERAL PLAN
Policy BȬ5: Work towards the mitigation of jobs/housing ratio impacts created by developments with significant employment.

Policy BȬ6: Encourage higher density residential development in transitȬ oriented and mixed use areas where appropriate.

Policy BȬ7: Encourage a mix of unit types and sizes in new housing development.

Goal C Provide housing within the community for persons of all economic levels, regardless of religion, gender, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or mental or physical disability.

Policy CȬ1: Construct and preserve affordable housing for lower and moderate income households through the use of public subsidies, regulatory incentives and flexible development standards.

Policy CȬ2: Participate in local, regional, State and federal programs that support affordable, transitional, supportive and permanent housing.

Policy CȬ3: Create opportunities for affordable housing and housing to support special needs populations and extremely low income households.

Policy CȬ4: Ensure equitable housing opportunities for all residents.

Goal D Provide an adequate variety of individual choices of housing tenure, type and location, including higher density where possible, especially for low and moderate income and special needs households.

Policy DȬ1: Promote a variety of housing types, in different locations to maintain social and economic diversity in the City.

Policy DȬ2: Participate in programs that provide support services to residents in need.

Policy DȬ3: Increase public outreach efforts to inform residents and potential developers of available City housing programs.

Policy DȬ4: Encourage early participation from residents and other stakeholders in development of long range plans and review of new development proposals.

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8.12 Appendix Twelve: HOUSING ELEMENT
Policy DȬ5: Ensure compliance with all State and federal regulations relating to housing opportunities and the prevention of discrimination.

8.12-7.2 Implementing Actions
Each Goal outlined in the Housing Plan is supported by one or more policies, which are often implemented by specific actions. On the one hand, many of the identified actions below will implement multiple policies and goals. On the other hand, some policies offer direction to Staff and appointed/elected officials in making decisions related to the provision of housing, but are not implemented by specific housing programs.

Action 1: Neighborhood Conservation Improvement Program (NCIP) Under the direction of the City of Santa Clara Housing and Community Services Division, NCIP is a multiȬpurposed program offering technical and financial assistance to qualified residents. The program is designed for citywide households with gross incomes at or below 80 percent of County median income. Various types of repairs may be addressed through NCIP: reȬroofing, plumbing, heating/cooling, electrical, termite damage, foundation and weatherization are examples. The costs for home repairs are covered under the loan program. Financial assistance can come in the form of a loan, grant or combination of both. For each project, the financial terms are reached at the time of determining eligibility and scopeȬofȬwork to be performed. Loan interest rates can be as low as 3 percent and increase according to the household income. Length of time of the loan is typically up to 20 years on either a deferred payment or monthly installment payment basis. Essentially, terms are flexible and below market, based on the applicantȇs particular income situation. Since 1976, the City of Santa Clara has assisted more than 1,000 homeowners to rehabilitate and increase the value of their homes through the Neighborhood Conservation and Improvement Program (NCIP).

Funding Source: CDBG, HOME
Responsible Agency: Housing & Community Services Division Objectives: Ȭ Assist approximately 424 homeowners with rehabilitation assistance, including approximately 160 extremely low income households.ȱȱ
Ȭ Continue to conduct inspections of homes on a request and complaint basis, providing referrals to the NCIP and
assistance where possible to correct identified issues and problems.

Timeframe: Ongoing
Relevant Policies: Policy AȬ1
I

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Action 2: Preservation of Assisted Rental Housing
To meet the housing needs of persons of all economic groups, the City is committed to guarding against the loss of housing units reserved for lower income households. One assisted rental project in Santa Clara – Chateau ApartmentsȱȬȱis identified to be at potential low risk of conversion to market rate use in 2023.ȱȱ
Funding Source: Departmental Budget
Responsible Agency: Housing & Community Services Division Objectives: Ȭ Continue to assist property owners of assisted housing by providing funding to make periodic improvements to the
property, if available. Such assistance helps the project maintain its affordability.

Ȭ Continue to monitor atȬrisk project by maintaining contact with the property owner annually regarding longȬterm plans for the project.

Ȭ Establish contact with public and nonprofit agencies interested in purchasing and/or managing units atȬrisk. As necessary and feasible, the City will provide financial and technical assistance to these organizations.

Ȭ Provide tenant education on Section 8 rental subsidies and other available assistance through City and County agencies as well as nonprofit organizations. Notify tenants at least one year in advance of potential conversion to market rate
housing. Provide information regarding tenant rights and conversion procedures.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy DȬ1 Action 3: Acquisition of Multi-Family Housing
As a strategy to expand the City’s affordable housing inventory, Santa Clara will continue to explore opportunities the acquisition/rehabilitation of multiȬfamily housing. As funding permits, the City will work with nonprofit organizations to acquire and rehabilitate deteriorating and distressed properties and convert them into affordable rental housing for lower income households, including those with special needs.

Funding Source: CDBG; HOME
Responsible Agency: Housing & Community Services Division Objectives: Ȭ Annually explore funding sources available at the regional, State, and federal levels to support acquisition/rehabilitation opportunities.

Ȭ Work with nonprofit entities to acquire and rehabilitate I

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8.12 Appendix Twelve: HOUSING ELEMENT
existing multiȬfamily structures to be maintained as
affordable rental housing.

Ȭ Seek opportunities to identify and purchase deteriorated residential properties during depressed rental markets, rehabilitate units, and convert from market rate to affordable levels.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy DȬ1 Action 4: Code Enforcement Program
Code enforcement is essential to ensuring housing conservation and rehabilitation. The City maintains a strong housing inspection and code enforcement program to ensure adequate maintenance of the housing stock and quality of the residential neighborhoods.

In an average year, the City receives several thousand complaints related to possible code enforcement violations. For all types of code complaints, the first step in the followȬup procedure is personal contact by a City Staff member to ascertain if a code violation exists, and to request remediation. In many cases, the individual responsible for the code violation is given the opportunity to voluntarily correct the situation and comply with current codes without a penalty.

Funding Source: CDBG, General Fund
Responsible Agency: Planning Division, Building Inspection, Police Department Objectives: Ȭ Continue the multiȬfamily residential housing inspection and educational programs.

Ȭ Aggressively respond to violations of housing codes.

Ȭ Provide special attention to maintaining the stability of residential neighborhoods through development and
enforcement of minimum standards of allowed use of the
City’s streets, as well as maintenance of front and other yard areas visible from the public rightȬofȬway.

Timeframe: Ongoing
Relevant Policies: Policy AȬ1, Policy AȬ2, Policy AȬ3, Policy AȬ4 Action 5: Neighborhood Relations Program
Since 1990, the NeighborhoodȬUniversity Relations Committee (NURC) (formerly Student Housing Committee) has been responsible for reviewing student housing issues. NURC meets regularly to facilitate onȬgoing communication and problem solving among City officials, neighborhoods, property owners and Santa Clara University officials and students.

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GENERAL PLAN
Funding Source: Departmental Budget
Responsible Agency: Planning Division, Police Department Objectives: Ȭ Improve the maintenance of studentȬoccupied homes and behavior of the occupants to minimize impacts on the
neighborhood surrounding SCU.ȱȱ
Ȭ Enhance code enforcement and special Police patrols to address the problems in the area.

Ȭ Continue to hold meetings three times per year with student tenants, landlords, SCU, residents and the City to allow opportunities for stakeholders to discuss neighborhood
issues and concerns.

Ȭ Continue to work with neighbors (residents, businesses, and institutions such as Santa Clara University) to ensure that development is compatible with existing neighborhoods and that neighbors are satisfied with the design, density, and parking requirements of projects.

Timeframe: Ongoing
Relevant Policies: Policy AȬ1, Policy AȬ2, Policy AȬ3, Policy AȬ4 Action 6: Zoning Ordinance
The City is currently undertaking a comprehensive update to its Zoning Ordinance to reflect the current goals and policies of the 2010Ȭ2035 General Plan. As part of this update, the City will reconsider, and revise, if appropriate, its provisions for parking, mixed use developments, residential care facilities, employee housing, and SRO housing. The Zoning Ordinance update is expected to be completed in midȬ2016.ȱȱ The comprehensive Zoning update is intended to bring consistency between the Zoning Ordinance and the General Plan, implementing the General Plan goals by facilitating mixed use development and higher density residential development, protecting existing neighborhoods, and incentivizing redevelopment by appropriate development standards and streamlined procedures.ȱȱȱ
In addition, the City completed a number of amendments to the Zoning Ordinance that were adopted in conjunction with the adoption of the 2015Ȭ2023 Housing Element on December 9, 2014. These amendments include provisions for reasonable accommodations, emergency shelters, transitional housing, and supportive housing, as well as an update of the City’s Density Bonus Ordinance. The City will continue to monitor the Zoning Ordinance for any additional constraints to the development of housing and process amendments as necessary.ȱȱ
Funding Source: Departmental Budget
I

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8.12 Appendix Twelve: HOUSING ELEMENT
Responsible Agency: Planning Division
Objectives: Ȭ Complete the comprehensive update to the Zoning Ordinance by midȬ2016.

Ȭ Continue to monitor the Zoning Ordinance for any potential constraints to the development of housing, particularly housing for persons with special needs (including those with developmental disabilities), and amend the Zoning
Ordinance as necessary.

Timeframe: Zoning Ordinance update to be completed by midȬ2016; remaining objectives to be completed on an ongoing basis.

Relevant Policies: Policy AȬ3, Policy AȬ4, Policy BȬ2, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy CȬ4, Policy DȬ1, Policy DȬ5
Action 7: Adequate Sites Inventory
The City is committed to ensuring that adequate sites at appropriate densities remain available during the planning period, as required by law. The residential sites analysis completed for the 2015Ȭ2023 Housing Element indicates the City can accommodate its RHNA of 4,093 units, including 1,050 very low income units, 695 low income units, 755 moderate incomes, and 1,593 above moderate income units.

The City is updating its Land Use Element to implement Phase II of the 2010Ȭ2035 General Plan, providing additional housing opportunities in Tasman East and Lawrence Station Focus Areas, as discussed in detail in the Housing Opportunities section. The Land Use Element update to implement Phase II of the General Plan is scheduled to be adopted concurrent with the Housing Element adoption.

Funding Source: Departmental Budget
Responsible Agency: Planning Division
Objectives: Ȭ Maintain an inventory of housing sites appropriate for a range of income levels and housing types, including
supportive housing for persons with disabilities and
developmental disabilities.ȱȱ
Ȭ Provide information and technical assistance on Federal and State funding sources or referrals to appropriate agencies.ȱȱ Ȭ Disperse and monitor the location of affordable units in various areas of the City.

Ȭ Review housing sites inventory at time of development proposal to determine consistency with proposed density and assumed density in Housing Element.

Ȭ Maintain a zero net loss of units identified in the opportunity sites inventory of this Housing Element. If the assumed I

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SANTA CLARA

GENERAL PLAN
density is not entitled, a finding must be made that the displaced units can be redistributed to other opportunity sites.

Ȭ Encourage developments that are transitȬbased or in close proximity to transit when determining City affordable
housing funding decision priorities.

Ȭ Encourage Mixed Use development where appropriate to
provide increased opportunities for housing development.

Ȭ Notify owners of mixed use designated sites through an outreach/ marketing program.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy BȬ2, Policy BȬ3, Policy BȬ5, Policy BȬ6, Policy BȬ7, Policy CȬ1, Policy CȬ3, Policy DȬ1, Policy DȬ3, Policy DȬ4 Action 8: Lot Consolidation
While lot consolidation has not been heavily utilized in Santa Clara in the past, a number of small lots (less than 0.5 acres) along El Camino Real with multiple property owners have been identified in the Sites Inventory for the 2015Ȭ2023 Housing Element. The City will take a number of steps to facilitate the lot consolidation process for prospective developers.

Funding Source: Departmental Budget
Responsible Agency: Planning Division
Objectives: Ȭ Provide technical assistance regarding the lot consolidation process to interested parties.

Ȭ Provide the sites inventory to interested developers and assist in identifying sites with lot consolidation potential.

Ȭ Process lot consolidation applications concurrently with other applications for development.

Timeframe: Ongoing
Relevant Policies: Policy BȬ2, Policy BȬ3, Policy CȬ1, Policy DȬ1 Action 9: Impact Fees
The City charges various impact fees to provide essential services and facilities to serve new development.ȱȱThe City will conduct an impact fee study to compare the City’s fees (including the recently adopted park fees) with surrounding and similar jurisdictions.ȱȱȱ I

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8.12 Appendix Twelve: HOUSING ELEMENT
Funding Source: Departmental Budget
Responsible Agency: Planning Division
Objectives: Ȭ Assess if impact fees are constraining development or providing a competitive edge for the City.ȱȱ If City fees deviate significantly from those charged by comparable
communities, take actions to adjust fees as appropriate.

Timeframe:

Conduct impact fee study/analysis in 2016/17 and monitor fees on an ongoing basis
Relevant Policies: Policy BȬ2, Policy BȬ3, BȬ5, BȬ6, BȬ7, Policy CȬ3, Policy DȬ1 Action 10: Provision of a Variety of Housing Types
The City of Santa Clara supports and encourages the development of a variety of housing types to rent and to own in a variety of locations to maintain social and economic diversity in the community. During 2015Ȭ2023 Housing Element planning period, the City will promote the development of accessory units, affordable oneȬȱand twoȬstory additions to singleȬfamily homes, and other low income housing alternatives.

Funding Source: Departmental Budget
Responsible Agency: Planning Division
Objectives: Ȭ Promote the construction of accessory units to increase the type and size of the City’s housing stock, with an objective of 25 units per year or 200 units over eight years.

Ȭ As part of the comprehensive Zoning Ordinance update (to be completed by midȬ2016), reconsider, and revise if
appropriate, requirements for accessory units.ȱȱ
Ȭ Conduct an ongoing promotional program, including
mailings to owners of singleȬfamily properties with adequate size for accessory living units.

Ȭ Support development of low income housing alternatives, such as singleȬroom occupancy (SRO) units, senior housing, family housing, housing for persons with disabilities
(including developmental disabilities) etc.

Ȭ Encourage affordable, compatible oneȬȱ and twoȬstory
additions for upgrading singleȬfamily homes.

Ȭ Provide increased flexibility for houses built prior to the current zoning requirements.

Ȭ Continue to require the Residential Green Checklist as part of the permit submittals for residential construction.

Timeframe: Ongoing
Relevant Policies: Policy AȬ3, Policy BȬ1, Policy BȬ3, Policy CȬ1, Policy CȬ3, Policy CȬ4, Policy DȬ1, Policy DȬ3
I

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SANTA CLARA

GENERAL PLAN
Action 11: Inclusionary Housing Policy
The City’s Inclusionary Housing Policy requires developers of residential developments of 10 or more units to provide at least 10 percent of their units at rents or prices affordable to very low, low and moderate income households. The Inclusionary Housing Policy has two components: Below Market Rental (BMR) program and Below Market Purchase (BMP) program. The City works with Neighborhood Housing Services Silicon Valley (NHSSV) to offer the BMP units to incomeȬqualified households.

Funding Source: Inclusionary Housing
Responsible Agency: Planning Division
Objectives: Ȭ Continue to implement the Inclusionary Housing BMP and BMR programs.

Ȭ Annually monitor the effectiveness of the Inclusionary Housing Policy in expanding the housing supply and
diversity in the community.ȱȱ
Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy BȬ2, Policy BȬ3, Policy BȬ7, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy CȬ4, Policy DȬ1
Action 12: Affordable Housing Incentives
ForȬprofit and nonprofit developers play a significant role in providing affordable housing in Santa Clara. The City will proactively encourage and facilitate the development efforts of developers and organizations for the construction of affordable housing for lower income households, particularly those with special needs including seniors, large households, extremely low income households, and households with persons who have disabilities (including developmental disabilities).

Funding Source: CDBG; HOME
Responsible Agency: Planning Division
Objectives: Ȭ Encourage and assist in efforts to combine public and private funds in joint housing ventures.

Ȭ As appropriate, support and/or partner with housing
developers in the application for affordable housing funding, such as providing technical data, assistance in identifying available and appropriate sites, expediting review and
processing of affordable housing, and providing local match as funding is available.

Ȭ Annually explore funding available at the regional, state, and I

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8.12 Appendix Twelve: HOUSING ELEMENT
federal levels for affordable housing development and
programs.ȱȱ
Ȭ Continue to work with the Housing Authority of Santa Clara County to expand the Authority’s ability to create low and moderate income housing.

Ȭ Participate with other local jurisdictions to provide affordable housing. Collaborate with neighboring
jurisdictions to pursue funding opportunities for affordable housing programs.ȱȱCDBG and HOME funds will continue to be used in conjunction with other cities’ funds to construct shelters and to provide housing services.

Ȭ Continue to provide density bonuses or equivalent financial incentives for housing projects which include affordable and/or senior housing units, consistent with State law
requirements.

Ȭ Encourage housing developers to use the City’s Density Bonus Ordinance and the Planned Development Zone
District, which allow for flexibility in the zoning regulations.

Ȭ Continue to pursue opportunities to acquire and rehabilitate existing multiȬfamily structures to be maintained as
affordable rental housing.

Ȭ Encourage the provision of specialized housing to meet the needs of those with disabilities (including developmental disabilities); or for group care, emergency housing and foster homes, where appropriate.

Ȭ Identify situations of overcrowding and educate families of local housing programs.ȱȱ
Ȭ Incentivize nonprofit developers to develop units for very low and extremely low households by identifying
appropriate housing sites or rehabilitation projects and matching developers with funding sources.

Ȭ Continue to require the Residential Green Checklist as part of the permit submittals for residential construction.

Ȭ Consider, in 2015Ȭ2016, other feasible incentives to foster affordable housing development in the City.ȱȱ These may include fee deferral, reduction, or waivers.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy BȬ2, Policy BȬ3, Policy BȬ7, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy CȬ4, Policy DȬ1
Action 13: Housing Mitigation Fee
With the dissolution of redevelopment and diminishing funding at the State and federal levels, the City will explore alternative funding mechanisms for affordable housing.ȱȱ I

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SANTA CLARA

GENERAL PLAN
Specifically, the City will continue its current practices of requiring housing impact studies for largeȬscale projects with the potential of generating a significant number of jobs. In addition, the City will consider establishing a housing mitigation fee program.

Funding Source: Departmental Budget
Responsible Agency: Housing and Community Services Division Objectives: Ȭ Continue to require housing impact studies as part of projectȬ related environmental reviews for new developments or
businesses that generate a high number of jobs.

Ȭ Continue to require Housing Impact Studies through
development agreements with new projects, to address the impact on the affordable housing supply.

Ȭ Consider, in 2015Ȭ2016, establishing an affordable housing mitigation fee for office and industrial developments that propose a significant square footage of area where persons are to be employed.

Timeframe: Ongoing
Relevant Policies: Policy BȬ2, Policy BȬ3, Policy CȬ1, Policy DȬ1 Action 14: Affordable Housing Funding
Within 12Ȭ18 months of the Housing Element adoption, conduct study session or series of study sessions as needed with the City Council to explore additional sources that would provide a steady funding stream for affordable housing.ȱȱThese may include local sources such as commercial linkage and setting aside a portion of general fund property tax revenues formerly collected from former Redevelopment Areas to be retained for affordable housing (also referred to as “boomerang funds”).ȱȱȱ Annually, staff will evaluate Notices of Funding Availability (NOFAs) from State, federal, and regional programs and pursue funding applications as appropriate.

Funding Source: Departmental Budget
Responsible Agency: Planning Division and Housing and Community Services Division
Objectives: Ȭ Identify a steady source of affordable housing funds.

Ȭ Pursue funding available from State, federal, and regional housing programs.

Timeframe:

Conduct a series of study sessions, within 12Ȭ18 months of Housing Element adoption, with City Council on steady source of local affordable housing funds.ȱȱAnnually evaluate NOFAs for affordable housing and pursue as appropriate.

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8.12 Appendix Twelve: HOUSING ELEMENT
Relevant Policies: Policy BȬ1, Policy BȬ2, Policy BȬ3, Policy BȬ7, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy CȬ4, Policy DȬ1
Action 15: Economic Displacement
Development in the City has primarily occurred as the recycling of existing marginal commercial and industrial uses into higher density multiȬfamily housing.ȱȱAs such, the City has not yet experienced any displacement of lower income households due to new development.ȱȱ As redevelopment of existing uses continues, the City will evaluate potential displacement, and develop and adopt measures, as appropriate, to address the risk of direct or indirect displacement of existing residents.ȱȱ The City will implement measures, as appropriate, to address displacement.ȱȱThe City will monitor such measures biȬannually for effectiveness and make necessary adjustments.

Funding Source: Departmental Budget
Responsible Agency: Planning Division
Objectives: Ȭ Evaluate programs and policies, and provide recommendations to City Council within one years of
Housing Element adoption.ȱȱAs necessary and appropriate, adopt programs and policies to address displacement within two years of Housing Element adoption.ȱȱMonitor programs and policies biȬannually for effectiveness.

Timeframe: Ongoing
Relevant Policies: Policy BȬ4, Policy BȬ5, Policy CȬ1
Action 16: Shared Housing
Shared housing is an affordable housing alternative for seniors and other lower income residents. The City provides funding assistance to the Shared Housing Program administered by Catholic Charities. This program arranges for households to share an existing housing unit. In addition to contributing to the operating expenses of such programs, the City has provided singleȬfamily homes for shared housing arrangements.

The homes were originally purchased for rightȬofȬway needs and subsequently became available for shared housing.

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SANTA CLARA

GENERAL PLAN
Funding Source: Departmental Budget, CDBG
Responsible Agency: Planning Division
Objectives: Ȭ Continue to support programs designed to create shared housing arrangements for seniors, families and persons with disabilities (including developmental disabilities).

Ȭ Annually evaluate the need for shared housing services as part of the CDBG annual plan process.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ2, Policy CȬ3, Policy CȬ4, Policy DȬ1, Policy DȬ2
Action 17: Housing Choice Voucher Program
The Section 8 Housing Choice Voucher Program extends rental subsidies to very low income households, as well as elderly and disabled persons. The subsidy represents the difference between 30 percent of the monthly income and the allowable rent determined by the Section 8 program. Vouchers permit tenants to locate their own housing and rent units beyond the federally determined fair market rent in an area. As of August 30, 2012, the Housing Authority had 839 Section 8 vouchers under contract within the City, an increase of 10 vouchers from the previous year.ȱȱ
Funding Source: Section 8
Responsible Agency: Housing Authority of the County of Santa Clara Objectives:

Ȭ Continue to participate in and promote the Housing Choice Voucher Program.

Ȭ Encourage apartment owners to list properties with the Housing Authority for individual Housing Choice Vouchers.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ1, Policy CȬ2, Policy CȬ3, Policy DȬ1 Action 18: Homeownership for First-Time Buyers
The City continues to create affordable ownership units through its Inclusionary Housing Policy. Neighborhood Housing Services Silicon Valley (NHSSV) partners with Santa Clara to offer the units created through the Inclusionary HousingȱȬȱBelow Market Purchase (BMP) program to incomeȬqualified households. These units are purchased with downpayment assistance and remain affordable 20 to 45 years for working and middle income buyers. The intent of the BMP program is to offer homebuyers an opportunity to purchase a home they would not ordinarily be able to afford. As part of this program, Santa Clara BMP owners participate in an equity share program. During the first five years, the equity increase is I

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8.12 Appendix Twelve: HOUSING ELEMENT
capped at the amount of percentage change in the Santa Clara County Median Income (AMI) level from the year that the unit was purchased until the year that the unit is sold.

Owners will earn five percent equity per year during the 20Ȭyear restriction.ȱȱ Other resources for affordable homeownership are also available to Santa Clara residents.ȱȱ These include the Housing Trust Silicon Valley and Mortgage Credit Certificates. The Housing Trust Silicon Valley provides loans to low and moderate income homebuyers in Silicon Valley in the form of lowȬinterest, second mortgages and downpayment assistance.ȱȱ Santa Clara residents are eligible for two types of assistance offered by the Housing Trust:
x Mortgage Assistance: Up to 17 percent of the purchase price, not exceeding $85,000 x Gap Assistance: Up to 20 percent of the purchase price, not exceeding $50,000ȱȱ The Mortgage Credit Certificate Program (MCC), administered by the County of Santa Clara Office of Affordable Housing, provides financial assistance to firstȬtime homebuyers. The Santa Clara County MCC tax credit reduces the federal income taxes of qualified borrowers purchasing qualified homes, thus having the effect of a mortgage subsidy. The current tax credit rate is up to 15 percent of the interest paid to the lender on the first loan.

Funding Source: Inclusionary Housingȱȱ
Responsible Agency: Neighborhood Housing Services Silicon Valley (NHSSV) Objectives: Ȭ Continue to collaborate with NHSSV to implement the BMP program and provide assistance to approximately 10 to 15 lower, moderate, and middle income households during the 2015Ȭ2023 Housing Element planning period.

Ȭ Promote homeownership, particularly for first time buyers, through singleȬfamily, townhouse and condominium
construction as well as conversion of rental to condominium ownership, where appropriate.

Ȭ Encourage program participation among moderate income households, as well as low income households, while interest rates are low.

Ȭ Continue to promote homebuyer assistance programs
through the Housing Trust Silicon Valley and the County of Santa Clara. Include links to these housing resources on City website by 2015.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ2, Policy DȬ1
I

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SANTA CLARA

GENERAL PLAN
Action 19: Fair Housing Program
The City contracts with a qualified fair housing services provider to provide fair housing services to its residents. Currently, the City utilizes Project Sentinel, a nonprofit agency that provides information and dispute resolution services to tenants, landlords, and roommates. Since 2009, Project Sentinel has assisted 732 Santa Clara households and landlords with resolving disputes through counseling, conciliation and mediation.

Funding Source: CDBG
Responsible Agency: Housing and Community Services Division Objectives: Ȭ Continue to refer tenantȬlandlord complaints to an agency offering meditation.

Ȭ Provide referral services and promotional support to link those experiencing discrimination in housing with public or private groups who handle complaints against
discrimination.

Ȭ Seek state and federal enforcement of fair housing laws and continue to cooperate with local agencies investigating claims of discrimination in lending practices and predatory lending.

Ȭ Provide outreach and education materials about fair housing services, nonprofit partners (e.g. Project Sentinel).

Ȭ Continue to hold open house events and meetings to
distribute fair housing information and resources to tenants and homeowners in need of assistance.

Ȭ Refer disputes between property owners to the County
Human Relations Commission’s Dispute Officer.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ2, Policy DȬ1
Action 20: Homeless Services
The City provides assistance to a number of local agencies that operate programs that serve the homeless. The following agencies have received funding from the City:ȱȱ x Next Door Solutions to Domestic Violence
x Emergency Housing Consortium
x St. Justin Community Ministry
x Bill Wilson Center
x Community Technology Alliance
x Innvision
I

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8.12 Appendix Twelve: HOUSING ELEMENT
Funding Source: CDBG
Responsible Agency: Housing and Community Services Division Objectives: Ȭ Assist in funding locally administered programs that provide shelter, food and clothing for those with transitional and supportive housing needs.

Ȭ Continue to support housing for atȬrisk youth.

Timeframe: Ongoing
Relevant Policies: Policy BȬ1, Policy CȬ2, Policy DȬ1

8.12-7.3 Quantified Objectives
Table 8.12Ȭ7Ȭ1 below summarizes the City of Santa Clara’s quantified housing objectives for the 2015Ȭ2023 Housing Element planning period.ȱȱ
TABLE 8.12-7-1: QUANTIFIED OBJECTIVES
Units to be
Constructed
(RHNA)
Units to Be
Rehabilitated
Units to Be
Conserved
Extremely Low Income 525 160 12
Very Low Income 525 168 13
Low Income 695 96 0
Moderate Income 755 0 0
Above Moderate Income 1,593 0 0
Total 4,093 424 25
I
California Department of Housing
and Community Development
Affirmatively Furthering Fair Housing
Guidance for All Public Entities and for Housing Elements (April 2021 Update)
Definition of Affirmatively Furthering Fair Housing
Meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development.

Additional definitions can be found on Pg. 64.

Purpose and Uses of Ongoing Guidance and AFFH Data Viewer:
(Sample text for now – actual text to follow)
This guidance memo is a more comprehensive update to the AB 686 summary of requirements in housing element law that the Department of Housing and Community Development (HCD) released April 23, 2020, which can be found at hcd.ca.gov. This guidance is meant to assist public agencies and local governments meet AB 686 requirements. The guidance will be updated periodically in collaboration with practitioners and stakeholders to provide additional samples and best practices.

This guidance is advisory and is adopted pursuant to HCD’s general authority to provide technical assistance on the preparation of housing elements. HCD is also cognizant of its own duty to affirmatively further fair housing (AFFH) in adopting this guidance. Nevertheless, where the document says “shall” or “must,” there is no intent to create a mandatory duty that does not independently exist in statute, and the use of these terms is merely a repetition of that mandatory duty. This document offers guidance and should not be construed as legal advice.

HCD has also developed a statewide AFFH Data Viewer that assembles various data sources and provides options for addressing each of the components within the full scope of the assessment of fair housing. The AFFH Data Viewer may be utilized to address the data components of new requirements to affirmatively furthering fair housing but must be used in combination with other data such as local or regionally available data. The AFFH Data Viewer consists of map data layers organized by:
1) Fair Housing Enforcement and Outreach Capacity, 2) Segregation and Integration, 3) Disparities in Access to Opportunity, 4) Disproportionate Housing Needs, including Displacement Risks, 5) Racially and Ethnically Concentrated Areas of Poverty and Affluence and 6) Supplemental Data. The AFFH Data Viewer is intended to be useful to a broad audience, such as local and regional governments, and organizations involved in the housing element process. For more information, visit the HCD’s website at www.hcd.ca.gov/community-development/affh/.

HCD Mission, Vision,
and Core Values
Mission
Promote safe, affordable homes and vibrant, inclusive, sustainable communities for all Californians.

Vision
Every California resident can live, work, and play in healthy communities of opportunity.

Core Values
INNOVATION: Empowered to apply creative solutions
PROFESSIONALISM: Demonstrate a willing attitude, open-mindedness, competence, and respect at all levels
ACCOUNTABILITY: Responsible, thoughtful ownership and
acknowledgement of actions and performance
MISSION-DRIVEN: Determined and focused on achieving HCD’s purpose INTEGRITY: Direct, honest, transparent, and ethical in every action DIVERSITY: Support, strengthen, and foster diversity and inclusive teams, programs, and partnerships
HCD Mission, Vision,
and Core Values
Homekey: A Journey Home | 4
California Department of Housing and Community Development 1 Affirmatively Furthering Fair Housing
Forward By Director Velasquez
2 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
April is fair housing month, and April 2021 marks a momentous time in the recent history of fair housing in America. Racial and economic inequity have been catapulted to the forefront of public discourse through the lenses of a deadly pandemic and ongoing structural racism, clearly capturing which of our neighbors are affected most, and why. For the well-being of our state, it is vital that we maintain a sharp focus on addressing the challenges we face in achieving racial equity and opportunity for all Californians.

President Joe Biden is following through with his early commitment to make racial equity and fair housing advancement a cornerstone of his administration’s policy and has committed to reinstate the 2015 Affirmatively Furthering Fair Housing rule and the 2013 Disparate Impact rule. California also recognizes and fully commits to addressing the role that public policy – at all levels of government – played in creating the patterns of segregation and racially concentrated areas of poverty that we see in our state today.

In 2018, California passed AB 686 as the statewide framework to affirmatively further fair housing; to promote inclusive communities, further housing choice, and address racial and economic disparities through government programs, policies, and operations. AB 686 is one of the most important tools that our local jurisdictions and partners can use to address systemic racism in housing and achieve positive impact for all Californians through public policies. AB 686 applies to all public agencies in all activities related to housing and community development. The duty to affirmatively further fair housing must be taken with the utmost diligence and cannot be ignored by any of us if it is to be successful.

Together, we must ameliorate past actions that led to inequity. As decision-makers we must create land-use and funding policies to increase affordable housing in high-resource neighborhoods that have often been exclusionary and bring additional resources to traditionally under-resourced neighborhoods.

Affirmatively furthering fair housing in California is about achieving better outcomes for all Californians regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, disability, and all other protected characteristics. These principles and requirements are necessary in addressing the racial wealth and homeownership gap, income disparities, and unequal access to opportunities. When everyone has better housing, health, and economic outcomes, we all do better as a whole.

Please join HCD and the many devoted partners in promoting stronger and more inclusive, sustainable communities. We know that our shared struggle for racial equity is centuries in the making and that there is more work to be done. We are honored to be part of a legacy of stepping up and making things better, for all of us.

California Department of Housing and Community
Development
Director Gustavo Velasquez
Message Re:

AB 686 Affirmatively Furthering Fair Housing
Purpose and Acknowledgements
Purpose
This guidance memo is a more comprehensive update to the AB 686 summary of requirements in housing element law that the Department of Housing and Community Development (HCD) released April 23, 2020, which can be found at hcd.ca.gov. This guidance is meant to assist public agencies and local governments meet AB 686 requirements. The guidance will be updated periodically in collaboration with practitioners and stakeholders to provide additional samples and best practices.

This guidance is adopted pursuant to Department of Housing and Community Development’s (HCD’s) general authority to provide technical assistance on the preparation of housing elements.

Local jurisdictions’ use of this guidance will support their legal obligation to comply with the duty to affirmatively further fair housing. HCD is also cognizant of its own duty to affirmatively further fair housing in this guidance.

Acknowledgements
The Department appreciates the contributions of the many individuals and organizations and sincerely thanks the guidance, expertise and partnership of:
» Governor’s Office of Planning and Research
» Strategic Growth Council
» University of California, Berkeley – Center for Community Innovation, Othering and Belonging Institute and Terner Center
» Furthering Fair Housing MIT Research Consortium
» University of Minnesota Center for Urban and Regional Affairs » National Housing Law Project
» Western Center on Law and Poverty
» PolicyLink
» Public Advocates
» Public Interest Law Project
» California Rural Legal Assistance
» Disability Rights
» Leadership Counsel for Justice and Accountability
» Poverty and Race Research Action Council
» Housing Rights Center
» The Law Foundation of Silicon Valley
» Public Law Center
» Public Interest Advocacy
» California Housing Partnership Corporation
California Department of Housing and Community Development 3 Affirmatively Furthering Fair Housing
HCD Mission, Vision, and Core Values 1
Forward By Director Velasquez 2
Purpose and Acknowledgements 3
Background and History of Affirmatively Furthering Fair Housing 5 Chart 1: Summary of AB 686 Requirements 8
Overview of AB 686 Changes to Law 9
Part 1: Duty of All Public Agencies to Affirmatively
Further Fair Housing 14
All Public Agencies 16
Programs and Activities 17
Tips for Implementation 18
Part 2: Affirmatively Furthering Fair Housing Changes to Housing Element Law 21
Outreach 21
Assessment of Fair Housing 22
Data Sources and Using the Statewide AFFH Data Viewer 25 Barriers to AFFH 26
Site Inventory 45
Identification and Prioritization of Contributing Factors 49 Chart 2: Contributing Factors Relationship Between Assessment of Fair Housing and Goals and Actions 50
Goals, Policies, and Actions 51
Part 3: Resources 57
Statute (strikeout/underline) 57
AB 686 Housing Element Compliance Checklist 62
Definitions 64
Dissimilarity and Isolation Index Formulas 67
Examples of Contributing Factors to Fair Housing Issues by Area 68 Sample Contributing Factors & Actions Matrix 71
Examples of Affirmatively Furthering Fair Housing Actions 72 Sample Tables 75
List of Fair Housing Assistance Organizations 79
Bibliography 83
AFFH Rule and Assessments 83
Federal Guidance 84
Data & Maps 85
Videos 87
Books 87
Research Articles & Reports 88
Table of Contents
4 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Background and History of
Affirmatively Furthering Fair Housing
Where we call home has far-reaching impacts on our lives and futures. Home can provide us with the building blocks to success: a sense of belonging, safety, and access to economic and social opportunities. Housing is a key determinant in whether or not people have the resources to live healthy lives and achieve their full potential. Land use policies and planning often translate into the ability of families to access neighborhoods of opportunity, with high-performing schools, greater availability of jobs that afford entry to the middle class, and convenient access to transit and services. The limits on housing choice and access experienced by people within protected classes, such as race, sexual orientation, or disability, have far-reaching impacts on access to job opportunity, quality education, and mental and physical health.

Residential segregation and exclusion, whether by race, ethnicity, disability, or income, is a result of numerous housing policies, practices, and procedures—both public and private—that have had enduring and pervasive negative impacts. Overt and covert housing discrimination through land use policy, shifting housing markets, and patterns of investment and disinvestment, have restricted meaningful fair housing choice and equitable access to opportunity, particularly for communities of color. Historic patterns of segregation persist in California despite the long-standing federal mandate, established by the Fair Housing Act of 1968 (FHA), that federal agencies and federal grantees affirmatively further the purposes of the FHA.

In the decades preceding and since the passage of the FHA, government and non-governmental policies and practices have disproportionately and unfairly impacted people and communities. Rampant exclusionary tactics and disparate treatment such as redlining, racially restrictive covenants, and biased mortgage lending practices were a few of the methods in the housing system that federal, state, and local lawmakers developed or explicitly supported to encourage spatial inequality based on race. State-sponsored, racially explicit practices fostered economic inequality and created a systematic wealth gap, as some groups were excluded from accessing homeownership and thereby denied the ability to create intergenerational wealth through investments in real estate.

In 1968, the FHA was enacted to remedy significant and long-standing inequities borne by protected classes, particularly Black and Hispanic people. As amended in subsequent years, the FHA mandates broad protections, prohibiting housing discrimination based upon race, color, religion, sex, disability, familial status, or national origin. Importantly, it advances the need to go beyond prohibiting housing discrimination and create opportunities for real housing choice through affirmatively furthering fair housing.1
1 The Fair Housing Act of 1968 originally only protected against discrimination based on race, color, religion, and national origin. The FHA was later amended in 1974 to include sex and then again in 1988 to include discrimination based on disability and familial status.

California Department of Housing and Community Development 5 Affirmatively Furthering Fair Housing
Although federal mandates prohibit overt forms of discrimination in housing, forces driving residential segregation have persisted, sometimes taking on new forms to achieve the same discriminatory ends. Racially explicit practices were subtly replaced by race-neutral methods to exclude people of color from predominantly white neighborhoods. Over time, single-family zoning emerged and replaced race-based zoning as a tool for segregating communities by restricting more affordable housing options, such as apartments or condominiums. Exclusionary zoning policies have made it difficult for lower-income residents to access certain communities and in turn has had a discriminatory effect on protected characteristics such as race, disability, and familial status. Furthermore, federal, state, and local subsidized programs failed to construct affordable housing in high-resource neighborhoods, which are disproportionately white, thereby reinforcing the spatial segregation of low-income communities of color.2
Past and present discriminatory policies and practices, including long-term disinvestment, have resulted in neighborhoods with concentrated poverty and poor housing stock, limited access to opportunity, unsafe environmental conditions, underfunded schools, dilapidated infrastructure, and other disproportionately experienced problems. In addition, governmental policies have subsidized the development of segregated, high-resourced suburbs in metropolitan areas by constructing new highway systems—often through lower income communities of color— to ensure access to job opportunities in urban centers. This physical and policy infrastructure supports patterns of discrimination and high levels of segregation that continue to persist in California and across the country.

All of these conditions persist despite the over 50-year-old obligation to prohibit discrimination and affirmatively further fair housing.
2 As of 2017, the State of California had 391 racially and ethnically concentrated areas of poverty (R/ECAP) areas, which represents a notable 40 percent increase from the 278 R/ECAP areas documented in 2010. Between 2000, when the state had 182 R/ECAP areas, and 2017, California has seen a 115 percent increase in R/ECAP areas (Final 2020 Analysis of Impediments (AI), p. 165).

Housing policy, program guidelines, and regulations were essential in creating current inequities, and they are equally important in both preventing further segregation and concentration of poverty, as well as increasing access to opportunity. In order to ameliorate past actions that led to inequity, decision-makers must create land-use and funding policies to increase affordable housing in high resource neighborhoods that have often been exclusionary (explicitly or in effect of costs and zoning policies) and bring additional resources to traditionally under-resourced neighborhoods. 6 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
To address these conditions, Assembly Bill 686 (AB 686), signed in 2018, establishes an independent state mandate that expands the duty of all California’s public agencies to affirmatively further fair housing (AFFH). AB 686 added to existing protections in California. The Fair Employment and Housing Act (FEHA) provides broad protections to California residents, prohibiting housing discrimination through public or private land-use practices, decisions, and authorizations based upon “race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, or genetic information.”3 Also, Government Code section 65008 prohibits discrimination against affordable housing based on financing or occupancy by low- and moderate-income households. With the passage of AB 686, state and local public agencies are required to affirmatively further fair housing through deliberate action to explicitly address, combat, and relieve disparities resulting from past and current patterns of segregation to foster more inclusive communities. Importantly, AB 686 also creates new housing element requirements applying to all housing elements due to be revised on or after January 1, 2021.

These requirements include an assessment of fair housing practices, an analysis of the relationship between available sites and areas of high or low resources, and concrete actions in the form of programs to affirmatively further fair housing. The purpose of this assessment and analysis is to replace segregated living patterns with truly integrated and balanced living patterns and to transform racially and ethnically concentrated areas of poverty (R/ECAP) into areas of opportunity. The purpose of this memo is to assist in that assessment and analysis.
3 Gov. Code, §§ 12900-12996.

California Department of Housing and Community Development 7 Affirmatively Furthering Fair Housing
Chart 1: Summary of AB 686 Requirements
8 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
1 ~ AB686 - Expands and protects duty to affirmatively
further fair housing (AFFH) in CA
• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • •
•
All public agencies required to
administer programs and activities
relating to housing and community
development in a manner to AFFH
and take no action that is materially
inconsistent with this obligation.

Outreach
A diligent effort must be made to
equitably include all community
stakeholders in the housing
element public participation
process.
2 •
•
•
New Housing
Element Requirements
*Applies to housing elements due to
be revised on or after January 7, 2027
•
• . . . . . . . . . . . . . . . . . •
•
Assessment of
Fair Housing
All housing elements must include
an assessment of fair housing
within the housing needs section. This
assessment should include an analysis of fair
housing issues in the jurisdiction including
existing segregation and inclusion trends and
current fair housing practices.
•
Sites Analysis
Local jurisdictions must evaluate
and address how particular sites
available for development of
housing will meet the needs of households at
Priorities, Goals,
and Actions
Based on findings from the needs
assessment and the site
all income levels and will AFFH by replacing
segregated living patterns with truly integrated
and balanced living patterns, transforming
racially and ethnically concentrated areas of
poverty into areas of opportunity.
inventory analysis with respect to AFFH, local
jurisdictions will assess contributing factors to
fair housing barriers and adopt policies with
programs that remediate identified fair housing
issues and/or further promote fair housing.

California Department of Housing and Community Development 9 Affirmatively Furthering Fair Housing
Overview of AB 686 Changes to Law
AB 686 (Chapter 958, Statutes of 2018) makes changes to laws in two broad areas:

1. Duty of All Public Agencies to Affirmatively Further Fair Housing

2. Affirmatively Furthering Fair Housing Changes to Housing Element Law Duty of All Public Agencies to Affirmatively Further Fair Housing
Existing federal law requires departments and agencies to administer programs relating to housing in a way that affirmatively furthers fair housing.4 These obligations extend to state and local governments that receive funds or contract with the federal government. For example, a local government receiving Community Development Block Grant (CDBG) dollars directly from the federal government is obligated to affirmatively further fair housing; under federal law this included completing an assessment of fair housing to inform the consolidated plan. However, federal planning requirements are subject to shifting promulgation of laws through various mechanisms such as regulations, rules, and program guidelines.5
As of January 1, 2019, AB 686 extends the obligation to affirmatively further fair housing to all public agencies in the State of California. This affirmative duty is not limited to those agencies with relationships with the federal government and is to be broadly applied throughout agencies at the state and local level.6 Now, all public agencies must both (1) administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing, and (2) take no action inconsistent with this obligation. Affirmatively furthering fair housing means “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities.” 7 These new statutory obligations charge all public agencies with broadly examining their existing and future policies, plans, programs, rules, practices, and related activities and make proactive changes to promote more inclusive communities. 8 Affirmatively Furthering Fair Housing Changes to
Housing Element Law
Even prior to the passage of AB 686, Housing Element Law inherently promoted more inclusive communities, such as by addressing the disproportionate housing needs of lower income households, and households with special needs (e.g., persons with disabilities, elderly, large households, single 4 See Executive Order 12892 – Leadership and Coordination of Fair Housing in Federal Programs: Affirmatively Furthering Fair Housing.

January 17, 1994.
5 Effective September 8, 2020, HUD replaced the final AFFH rule with the Preserving Community and Neighborhood Choice rule [federalregister.gov]. Under the new rule entities are not required to complete a fair housing assessment (AFH or AI). They must AFFH, which has been redefined to read as, “means to take any action rationally related to promoting any attribute or attributes of fair housing as defined in the preceding subsection” (24 C.F.R. §5.150 (2020)). 6 Gov. Code, § 8899.50, subd. (a)(2).
7 Id., subd. (a)(1).
8 Id., subds. (a)(1), (a)(2), (b), (c), and (d).
10 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
parent households, farmworkers, and people experiencing homelessness).9 For example, Housing Element Law requires local governments to make diligent efforts to include all segments of the community in public participation. Housing Element Law requires specific analysis of persons and households with special needs and commensurate development of policies and programs.10 Housing Element Law, among many other things, also requires zoning for a variety of housing choices, the identification of sites to accommodate the housing needs of all incomes, and specific programs to promote fair housing.11
AB 686 makes changes to Housing Element Law to ensure the long-standing duty to affirmatively further fair housing is part of the housing element of the general plan,12 which is the fundamental guiding document for community development for all local governments.13 Major changes include:

Outreach and Capacity
The preparation, adoption, and implementation of a housing element requires a diligent effort to include all economic segments of the community.14 AB 686 reinforces and builds on this requirement.

Under AB 686 and changes to Housing Element Law, the housing element must also include a summary of fair housing outreach and capacity.15 The element must describe meaningful, frequent, and ongoing community participation, consultation, and coordination that is integrated with the broader stakeholder outreach and community participation process for the overall housing element.16 Outreach plans should consider geographic barriers to participation, especially in geographically extensive jurisdictions and rural areas, and should plan to hold in-person meetings in various locations to ensure residents from across the jurisdiction have the opportunity to participate. Jurisdictions should seek sites that are transit-accessible and/or consider options to assist residents without vehicle access with transportation.17 Meetings should be held outside of work hours, including on evenings and weekends, to facilitate participation.18 Drafts of the housing element should be made available to the public for review and comment with ample time before submission to the Department of Housing and Community Development (HCD) for review. In-person and electronic options for participation should also be made available. Also, housing element outreach should be aligned with the SB 1000 (2016) 9 See, e.g., Gov. Code, § 65583, subds. (a)(1), (a)(7); HCD, Building Blocks, at https://www.hcd.ca.gov/community-development/buildingblocks/index.shtml. 10 Gov. Code, § 65583, subds. (a)(7), (c).
11 See, e.g., Gov. Code, § 65583, subd. (a)(4), (c)(1). 12 See, e.g., Gov. Code, § 65583, subd. (c)(5).
13 DeVita v. County of Napa (1995) 9 Cal.4th 763, 772–773 (“general plan … remains, a ‘constitution’ for future development”); Lesher Communications, Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 540 (general plan is located at the top of “the hierarchy of local government law regulating land use”).
14 Gov. Code, § 65583, subd. (c)(9).
15 See, e.g., Gov. Code, § 65583, subd. (c)(10)(A)(i).
16 Gov. Code, §§ 65583, subds. (c)(9), (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42292-42302, 42353-42360, esp. 42354-42356 (July 16, 2015). 17 Gov. Code, § 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353-42360, esp. 42354-42356 (July 16, 2015); HCD, Building Blocks, Public Participation at https://www.hcd.ca.gov/community-development/buildingblocks/getting-started/public-participation.shtml. 18 Gov. Code, § 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42292-42302, 42353- 42360, esp. 42354-42356 (July 16, 2015); HCD, Building Blocks, Public Participation at https://www.hcd.ca.gov/community-development/ building-blocks/getting-started/public-participation.shtml.

California Department of Housing and Community Development 11 Affirmatively Furthering Fair Housing
(Environmental Justice Element)19 outreach to the extent possible, given the overlapping topic areas.

Examples of key stakeholders:
● Community-based and other organizations (CBOs) that represent protected class members ● Public housing authorities
● Housing and community development providers
● Lower income community members and households that include persons in protected classes ● Fair housing agencies
● Independent living centers
● Regional centers
● Homeless services agencies
● Churches and community service organizations that serve ethnic/linguistic minorities Important components of meaningful engagement:
● Translation of materials and making translation available at meetings ● Working with CBOs and other community stakeholders to develop effective outreach and engagement plans ● Making accessible information materials that avoid use of overly technical language ● Offering mini-grants to CBOs and other stakeholders to assist with engagement of low-income households and protected classes
Assessment of Fair Housing: Summary of Issues and Analysis of Patterns, Trends, and Disproportionate Housing Needs
The housing element now incorporates planning and analysis which is collectively referred to as an assessment of fair housing (AFH),20 which generally includes:
● A summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and outreach capacity; and
● An analysis and summary of fair housing issues utilizing available federal, state, and local data and knowledge. The analysis must include a variety of factors, such as trends and patterns within the locality and in comparison to the broader region, and the analysis must address:
» Integration and segregation;
» Racially or ethnically concentrated areas of poverty; » Disparities in access to opportunity, including for persons with disabilities; and » Disproportionate housing needs (this may include things like overpayment, overcrowding, housing conditions disproportionately affecting protected classes), including displacement risk.
19 Gov. Code, § 65302, subd. (h).
20 Gov. Code, §§ 65583, subds. (c)(9), (c)(10), 8899.50, subds. (a), (b), (c); AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42292-42302, 42343-42344, 42353-42360 (July 16, 2015).
12 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Site Inventory
Prior to AB 686, Housing Element Law required jurisdictions to inventory and identify adequate sites appropriately zoned and available to accommodate its Regional Housing Need Allocation (RHNA).21 The housing element must demonstrate that there are adequate sites zoned for the development of housing for households at each income level sufficient to accommodate the number of new housing units needed at each income level as identified in the RHNA.22 AB 686 now requires that a jurisdiction identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing (AFFH) and the findings of its assessment of fair housing, pursuant to Government Code section 65583, subdivision (c)(10)(A).23 In the context of AFFH, the site identification requirement involves not only an analysis of site capacity to accommodate the RHNA, but also whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity.24 Identification and Prioritization of Contributing Factors Existing Housing Element Law requires various analyses, such as a housing needs assessment, housing needs of persons with special needs, housing conditions, potential governmental and non-governmental constraints, site inventory to accommodate the projected housing need (i.e., regional housing need allocation), and identification of units at risk of converting to market-rate uses.25 Each of these analyses inform the goals, policies and schedule of actions to address the existing and projected housing needs over the planning period.26 AB 686 advances this same framework and requires linking analysis with policy and action formulation. AB 686 requires an identification and prioritization of contributing factors to fair housing issues based on all the previously required analysis (outreach, fair housing assessment, site inventory).27 This identification and prioritization must give highest priority to factors that limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights. 28
Goals and Actions
Existing Housing Element Law requires programs with a schedule of actions with timelines and specific commitment to have a “beneficial impact” within the planning period to achieve the goals and objectives of the housing element. Programs must address various statutorily mandated areas, such as identification of adequate sites, zoning for a variety of types, assisting development for lower and moderate income households, addressing governmental and non-governmental constraints, 21 See, e.g., Gov. Code, § 65583, subds. (a)(3); HCD, Building Blocks, at https://www.hcd.ca.gov/community-development/building-blocks/ index.shtml.
22 Ibid.
23 Gov. Code, § 65583.2, subd. (a).
24 Gov. Code, § 8890.50. subd. (b).
25 See, e.g., Gov. Code, § 65583, subd. (a); HCD, Building Blocks, at https://www.hcd.ca.gov/community-development/building-blocks/index. shtml.
26 See, e.g., Gov. Code, § 65583, subds. (b), (c); HCD, Building Blocks, at https://www.hcd.ca.gov/community-development/building-blocks/ index.shtml.
27 See, e.g., Gov. Code, § 65583, subd. (c)(10)(A)(iii); Gov. Code, § 8899.50, subds. (a)(1), (b). 28 See, e.g., Gov. Code, § 65583, subd. (c)(10)(A)(iv).

California Department of Housing and Community Development 13 Affirmatively Furthering Fair Housing
conserving the existing housing stock, preserving at-risk units, and promoting housing opportunities for all people.29 AB 686 builds upon these program requirements, including modifying the existing program requirement to promote fair housing opportunities to now include actions that promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons. As part of this requirement, the housing element now requires an identification of priorities and goals based on identified contributing factors that limit or deny fair housing choice or access to opportunity, or that negatively impact fair housing or civil rights compliance.30 Similar to the existing Housing Element Law, AB 686 also requires identification of metrics or quantified objectives and milestones for determining what fair housing results will be achieved.31 Strategies and actions to implement priorities and goals may include, but are not limited to:
● Enhancing mobility strategies and promoting inclusion for protected classes ● Encouraging development of new affordable housing in high-resource areas ● Implementing place-based strategies to encourage community revitalization, including preservation of existing affordable housing ● Protecting existing residents from displacement
These actions, taken together, must significantly address disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, fostering and maintaining compliance with civil rights; and must affirmatively further fair housing.

Consistency with the Affirmatively Furthering Fair Housing Rule The passage of AB 686 in 2018 enshrined the duty to affirmatively further fair housing within California state law, regardless of future federal actions. California’s law essentially preserves the U.S.

Department of Housing and Urban Development’s (HUD) 2015 Affirmatively Furthering Fair Housing Final Rule as published in the Federal Register in 2015.32 This was done to ensure the 2015 AFFH Final Rule remained the law in California, despite the potential federal rollback of the rule and tool. (The 2015 rule was suspended in 2018 and ultimately terminated in 2020.) State law is clear, California’s AFFH duty remains regardless of subsequent amendment, suspension, or revocation of the 2015 AFFH Final Rule.
29 Gov. Code, § 65583, subd. (c).
30 Gov. Code, §§ 65583, subds. (c)(10), 8899.50, subds. (a), (b), (c); AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353- 42360, esp. 42358 (July 16, 2015).
31 Gov. Code, § 65583, subds. (c)(10)(A)(iv).
32 Per Government Code section 8899.50, subdivision (c), the section shall be interpreted consistent with the AFFH Final Rule and accompanying commentary as published by HUD in volume 80 of the Federal Register, Number 136, pages 42272 to 42371, inclusive, dated July 16, 2015. Note that, at times, this document cites to the 2016 the Code of Federal Regulations; this is because the rule adopted in July 2015 was too late to be codified in the 2015 Code and was codified in the regulations for the first time in the 2016. 14 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Part 1:

Duty of All Public Agencies
to Affirmatively Further Fair
Housing
AB 686 strengthens existing California fair housing and civil rights laws. California’s Fair Employment and Housing Act (FEHA) provides broad protections to California residents, prohibiting housing discrimination based upon “race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information.”33 California’s Government Code section 65008 prohibits discrimination in housing based on occupation, age, or protected characteristic; method of financing; or the intended occupancy by lower or moderate income people. While state law prohibited discrimination through public or private land use practices, decisions, and authorizations based on any of these characteristics, it had not included a state requirement to affirmatively further fair housing. As of January 1, 2019, AB 686 creates a state mandate requiring public agencies and jurisdictions to go beyond combating discrimination to affirmatively further fair housing. “Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.

Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. - (Gov. Code, § 8899.50, subd. (a)(1).) Beyond the housing element requirements, AB 686 requires all public agencies (including, but not limited to, all cities and counties, and housing authorities) to ensure that their housing and community development programs and activities—taken together—affirmatively further fair housing, and that they take no action materially inconsistent with this obligation.34 Affirmatively furthering fair housing includes taking proactive and meaningful actions that have a 33 Gov. Code, §§ 12900-12996.
34 Gov. Code, § 8890.50, subds. (a)(1), (b), (d).

California Department of Housing and Community Development 15 Affirmatively Furthering Fair Housing
significant impact in integrating living patterns and socio-economic concentrations—well beyond combating discrimination or mitigating disparities. Meaningful actions must be taken in concert with each other and address all of the following: 35

1. Significant Disparities in Housing Needs and in Access to Opportunity: Examples include incentivizing new residential development to include below-market rate housing; conserving affordability of existing housing, such as limitations on rents or conversion of such housing to higher rent or higher priced housing; encouraging systematic code enforcement activities that maintain housing stock while ensuring such enforcement does not cause displacement; and promoting housing mobility strategies and displacement mitigation strategies to ensure equitable access to opportunity.

Housing mobility strategies may include providing affordable and accessible transportation options to enhance access to education and economic development opportunities. Displacement mitigation strategies may include tenant protections, conservation of existing stock, preservation of units at-risk of conversion to market-rate uses, acquisition and rehabilitation of existing stock, including naturally occurring affordable housing, and removing barriers to building affordable housing.

2. Replacing Segregated Living Patterns with Truly Integrated and Balanced Living Patterns: Examples include community benefits agreements that balance development proposals with tangible, local benefits to residents in the area ( e.g., creating affordable housing, funding renter assistance programs for nearby residents, or other investments that meet community-identified needs, such as infrastructure and community amenities). Other examples include inclusionary zoning requirements and land-value recapture mechanisms, zoning for a variety of housing types, particularly those that may be lacking from the community or neighborhood, including: multifamily housing, low-barrier navigation centers, group homes, supportive housing, and accessible units. Promote education on how restrictions on multifamily housing, such as limited multifamily zoning and height and density limitations, impact inclusive communities. Seek local input on housing proposals while recognizing that “local vetoes” of affordable and mixed-income housing in racially segregated concentrated areas of affluence create fair housing issues.36

3. Transforming Racially and Ethnically Concentrated Areas of Poverty (R/ECAP) into Areas of Opportunity: Examples include community-led, place-based strategies to revitalize communities, such as economic development strategies and prioritizing investment in R/ECAPs that meet the needs of existing low-income residents, such as safe routes to school, transit, parks, schools, bike and pedestrian infrastructure, urban forestry, other neighborhood improvements; preserving naturally occurring affordable housing, such as mobilehome parks; and preservation as affordable housing of market-rate units where low-income households live; and promoting mixed-income development coupled with strong anti-displacement protections. Conduct outreach and advertise city program to persons with limited English proficiency. Other examples include community engagement in planning processes, including targeted outreach, technical assistance to help apply for grants, economic development strategies, workforce development, youth engagement and educational programs, healthy food access, affordable energy, and transportation access. 35 Gov. Code, §§ 8890.50, subds. (a)(1), (b), (d), 65583, subds. (c)(5), (c)(10); AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353-42360 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154 (2016). 36 The Internal Revenue Service Revenue Ruling 2016-29 states that the Internal Revenue Code neither forces nor encourages local approval in decisions allocating Low Income Housing Credits, based on the concern that this practice perpetuates racial segregation. State housing agencies are not required or encouraged to honor local vetoes. 16 California Department of Housing and Community Development Affirmatively Furthering Fair Housing

4. Fostering and Maintaining Compliance with Civil Rights and Fair Housing Laws: Agencies must diligently comply with civil rights and fair housing laws, including the California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with section 12900) of Division 3 of Title 2), Government Code sections 8899.50, 65008, 65583, subdivisions (c)5) and (c)(10), and11135, Civil Code section 51 (the Unruh Civil Rights Act), and FEHA regulations in California Code of Regulations, title 2, sections 12005-12271.

In addition to taking meaningful action, public agencies must not take any action materially inconsistent with the obligation to affirmatively further fair housing. Examples of materially inconsistent actions include those that:
● Hinder any of the affirmative actions public agencies take to further fair housing (e.g., lack of enforcement of rules intended to promote fair housing choices, diminishing fair housing principles from program guidelines, and inequitable implementation or enforcement of programs and activities)
● Perpetuate discrimination, segregation, R/ECAPs, and barriers that restrict access to opportunity based on protected characteristics (e.g., lack of affirmative marketing in funded housing developments, excluding accessibility modifications from eligible uses in funding, absence of community revitalization strategies in programs and policies)
● Are inconsistent with the housing element or the No-Net-Loss Law37 (e.g., downzoning without upzoning, zoning barriers to housing choices, removing tenant protections) ● Have a disparate impact on protected classes (e.g., zoning or siting toxic or polluting land uses or projects near a disadvantaged community, lack of investment in concentrated areas of poverty, lack of multifamily housing or affordable housing options in high-resource areas, investment without ant-displacement strategies in areas of disproportionate housing need) Public agencies must ensure housing and community development programs and activities are designed and can be reasonably expected to achieve a significant and tangible positive change that affirmatively furthers fair housing by, for example, increasing fair housing choice or decreasing disparities in access to opportunity.

All Public Agencies
Existing federal law requires departments and agencies to administer programs relating to housing in a way that affirmatively furthers fair housing. These obligations apply to state and local governments that receive funds or contract with the federal government and are often limited to housing programs. However, California Government Code section 8899.50 extends well beyond those agencies with federal funds or contracts and includes virtually all public agencies in California.

Public agencies include all subdivisions of the state, such as officers, offices, agencies, commissions, bureaus, boards, departments and divisions. Examples include the Department of Housing and Community Development (HCD), California Housing Finance Agency, Department of Developmental Services, Department of Health Services, Department of Social Services, Tax Credit Allocation Com37 Gov. Code, § 65863.

Programs and Activities Related to Housing and Community Development
All public agencies are required to administer programs and activities relating to housing and community development in a manner to affirmatively further fair housing. Housing and community development should be broadly construed and should not be interpreted in a limited manner. For example, an agency’s name does not need to explicitly bear the words “housing” or “community” or “development” to have activities or programs related to housing and community development. Any program or activities that impact housing and community development should address the obligation to affirmatively further fair housing.

Community development should be considered broadly as any processes or issues related to community members or social and physical surroundings. Housing and community development are not limited to housing programs and activities. For example, public agencies with programs and activities in any way related to land use or access to opportunity based on where a person lives pertains to community development, which in turn involves housing.

In this way, programs and activities that involve transportation, land conservation, hazard planning, infrastructure, economic issues, public facilities, social services, coastal resources, other environmental resources, and more should be affirmatively furthering fair housing. The same applies to local agencies. This obligation is not limited to investment, planning, and outreach related to housing, but also broader community development, such as infrastructure, public schools, parks and recreation, and other capital improvements.

California Department of Housing and Community Development 17 Affirmatively Furthering Fair Housing
mittee, Governor’s Office of Planning and Research, including the Strategic Growth Council, California Department of Transportation, California Transportation Commission, California Department of Education, Department of Conservation, California Coastal Commission, Natural Resources Agency, California Environmental Protection Agency, State Water Resources Control Board, Department of Water Resources, and many more. Public agencies also include all public housing authorities, redevelopment successor agencies, cities, counties, cities and counties, and charter cities and counties.38 Programs and Activities
The obligation to AFFH for public agencies applies to all housing and community development programs and activities. Programs and activities should be considered expansively and not in a manner to limit affirmatively furthering fair housing. For example, most state agencies are involved in some combination of planning, financial investment, regulatory function, or technical assistance, outreach and education. All of these broad categories should be considered programs and activities. This expansive application of programs and activities also applies to local governments. For example, capital improvement plans, code enforcement and other regulatory functions, housing assistance programs, and planning and zoning documents should all affirmatively further fair housing. 38 Gov. Code, § 8899.50, subd. (a)(2).
18 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Tips for Implementation
To affirmatively further fair housing through programs and activities, public agencies should consider a variety of factors and consult with other agencies. Agencies should also consider a process to incorporate affirmatively furthering fair housing in programs and activities.

For example:

1. Gather and Analyze Data: To better understand affirmatively furthering fair housing, agencies should explore available data related to the topic area to identify spatial patterns and trends and evaluate the impacts of programs and activities. For data options, see “Part 3 Resources” or visit HCD’s website at www.hcd.ca.gov/community-development/affh/.

2. Engage the Community: Proactively reach out to individuals and organizations that represent lower income households, people in protected classes, and households with special needs to develop open and mutual communication. Solicit input and communicate on a regular and ongoing basis, not just during formal public comment periods.

3. Assess Programs and Activities: Inventory programs and activities and explore opportunities to affirmatively further fair housing.

4. Develop a Plan with Clear Timelines: Identify goals and actions and establish a schedule. Proactively seek the public’s input on the plan and make it available prior to finalizing.

5. Implement the Plan and Monitor Progress: Assign a lead and prioritize the plan to carry out the actions and achieve the goals. Regularly monitor (e.g., biannually) progress and make adjustments.

Engagement: Early, Often, Ongoing and More
Outreach early in the development and throughout the completion of programs and activities is foundational to affirmatively furthering fair housing. Public agencies should seek a variety of methods to gather input from key stakeholders, such as community-based and other organizations that include and represent protected class members, lower income households and households with special needs (e.g., elderly, persons with disabilities, large households, farmworkers, female-headed households and persons experiencing homelessness), public housing authorities, community members that are lower income, and members of protected classes.
● Early: Public agencies should involve stakeholders well before releasing drafts of programs and in the early stages of development of other activities. This early engagement often yields better program results and at a nimbler stage in the development of a program. Early engagement is also key to building stronger working relationships and products that are more inclusive by design.
● Often: Many times, the development of programs and activities at a state and local level can take months and even years. An effective and inclusive outreach process will have multiple contact points throughout the development.

California Department of Housing and Community Development 19 Affirmatively Furthering Fair Housing
● Ongoing: Outreach should not stop after a program or activity is developed. An inclusive process will continue outreach through marketing, technical assistance, implementation, and evaluation of a program or activity.
● More: Outreach should employ a variety of strategies and methods to promote access (e.g., effective communication and reasonable accommodations for persons with disabilities, and meaningful access for persons with limited English proficiency) and consider feedback loops to keep stakeholders and individuals informed whenever possible.

Inventory and Amend Existing Programs and Activities
Public agencies should review all programs and activities for opportunities to affirmatively further fair housing. For state programs, example areas include planning documents, eligibility and scoring criteria and other provisions for funding programs, geographic distribution criteria, outreach, marketing and technical assistance, regulatory enforcement, and lack of exception processes. For local programs, example areas include assessing land use and zoning policies against patterns of racial segregation, marketing and outreach, prioritization of areas of concentrated poverty or lack of access to opportunity, funding, capital improvements such as infrastructure investment, anti-displacement policies, workforce development training, and economic development strategies.

Public agencies should also incorporate racial and equity inclusion into regulatory and technical assistance functions by prioritizing assistance to combat racial segregation, foster inclusion, and benefit areas of concentrated poverty, eliminate disparities in access to opportunity, and address disproportionate housing need, including displacement and housing and transportation cost burden.

For example, a local government could adopt zoning and incentives for more housing choices and affordability in higher resource areas; target resources for rehabilitation and maintenance of existing housing and anti-displacement policies in lower resource areas; develop pathways to homeownership for people in lower resource areas; seek to creatively engage communities; and create decision-making opportunities for communities in low resource areas regarding outcomes for health, economic development, planning, housing, and transportation.

Make a Schedule and Regularly Evaluate and Modify Programs All public agencies should immediately evaluate all programs and activities for opportunities to affirmatively further fair housing. A comprehensive evaluation and modification of programs and activities may be time-consuming for larger agencies, especially when regulation and legal changes are required. To address these challenges, make a schedule and allocate adequate staff time and resources to make affirmatively furthering fair housing a deliberate and consistent effort. Also, whenever updates occur, ensure that equity and inclusion are considered and addressed. This will require a thorough analysis of potential intended and unintended impacts of policy decisions on protected class members, lower income households, households with special needs, areas of concentrated poverty, lower resource areas, and areas of disproportionate housing need. Examples include updates to regulations, guidelines, notices of funding availability, scoring rubrics, and planning document updates such as general plans, community plans, zoning codes and capital improvement plans. Engaging residents and representative organizations into policy decisions is the best way to understand the full breadth of impacts of policy change.
20 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Cultivate Values of Inclusion
Fostering inclusion in an agency’s values can have a huge impact in program and activity design.

Agencies could consider implementing a variety of diversity, equity, and inclusion initiatives, such as racial equity trainings, incorporating racial equity into hiring practices and promotional opportunities, and committing to creating an organizational culture of inclusion and open communication. Making sure that staff and leadership are better trained and consistently practicing inclusion will have an ongoing impact throughout the processes.

A Public Agency AFFH Success: In partnership with Race Forward, the Public Health Institute, and the California Endowment, the California Strategic Growth Council (SGC) is leading a variety of activities to affirmatively further fair housing in the agency. Specifically, SGC supports the Capitol Collaborative on Race & Equity (CCORE)—a racial equity capacity-building program for State of California employees. CCORE builds on the success of a 2018-2019 Government Alliance for Race and Equity Capitol Cohort pilot initiative, and offers two cohorts for participants to receive training to learn about, plan for, and implement activities that embed racial equity approaches into institutional culture, policies, and practices. In 2020, SGC adopted a Racial Equity Action Plan, which outlines concrete actions that SGC is taking to achieve racial equity in the organization’s operations, programs and policies in order to achieve its vision that all people in California live in healthy, thriving and resilient communities regardless of race.

California Department of Housing and Community Development 21 Affirmatively Furthering Fair Housing
Part 2:

Affirmatively Furthering Fair
Housing Changes to Housing
Element Law
As discussed in Part 1, AB 686 requires virtually all state and local agencies (including, but not limited to, all cities, counties, cities and counties, and housing authorities) to ensure that their laws, programs and activities affirmatively further fair housing, and that they take no action inconsistent with this obligation.39 In addition, AB 686 amends Housing Element Law40 to better affirmatively further fair housing by adding several new requirements related to:
● Outreach
● Assessment of Fair Housing
● Site Inventory
● Identification and Prioritization of Contributing Factors ● Goals and Actions
Outreach
The preparation, adoption, and implementation of a housing element includes a diligent effort to include public participation from all economic segments of the community.41 A diligent effort means going beyond simply giving the public an opportunity to provide input and should be proactively and broadly conducted through a variety of methods to assure access and participation.42 AB 686 also requires jurisdictions to include a summary of their fair housing outreach capacity.43 To address these requirements, the housing element must describe meaningful, frequent, and ongoing public participation with key stakeholders.44 Among others, examples of key stakeholders must include public housing authorities, housing and community development providers, advocacy groups (local, regional, and state level), community members who are lower income, persons and households with special needs, members of protected classes, representative advocacy organizations and other similarly interested parties, fair housing agencies, independent living centers, regional centers, and 39 Gov. Code, § 8899.50, subd. (a)(2).
40 Gov. Code, § 65583, subds. (c)(5), (c)(10).
41 Gov. Code, §§ 65583, subds. (c)(9).
42 Gov. Code, §§ 65583, subds. (c)(9), (c)(10)(A)(i), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed.

Reg. 42271, 42353-42360 (esp. 42354-42356), 42363-42364 (July 16, 2015). 43 Gov. Code, §§ 65583, subds. (c)(9), (c)(10)(A)(i).
44 Gov. Code, §§ 65583, subds. (c)(9), (10)(A)(i), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed.

Reg. 42271, 42353-42360 (July 16, 2015). See details in, for instance, 24 C.F.R. § 5.158 (2016). 22 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
homeless service agencies. The element must describe: 45 ● Outreach activities intended to reach a broad audience, such as utilizing a variety of methods, broad and proactive marketing, including targeted areas and needs, promoting language access and accessibility for persons with disabilities (which can include effective communication, reasonable accommodations, and remote participation opportunities), and consulting with relevant organizations;
● List of organizations contacted and consulted in the process and for what purpose; ● Summary of comments and how the comments are considered and incorporated (including comments that were not incorporated), particularly with changes to the housing element; and ● Summary of issues that contributed to lack of participation in the housing element process by all economic segments, particularly people with protected characteristics, if that proves to be the case.

While localities must undertake diligent outreach efforts throughout the entire housing element preparation, some key areas to seek input include:
● Review of Past Actions: The housing element requires a review of the previous housing element for progress in implementation, effectiveness of programs in meeting goals, and appropriateness of modifying programs for the current planning period. Localities should make a specific effort to gather input from all segments of the community on the effectiveness of these programs and how to make adjustments moving forward.
● Assessment of Fair Housing: The assessment of fair housing requires various analyses such as segregation, integration, disparities in access to opportunity, and disproportionate housing needs.

Localities should reach out to fair housing organizations for any available data to complement readily available state or federal data.
● Potential Constraints on Housing for Persons with Disabilities: Localities should seek individuals and advocates for persons with disabilities to better identify barriers and promote access to fair housing choices. Examples of agencies to reach include independent living centers, regional centers for developmental services, information from institutions including jails and prisons, state hospitals, etc. Disability outreach should include place-based/neighborhood-based groups and senior groups, like area associations on aging and others, including those that serve distinct ethnic or linguistic communities.
● Policies and Actions: Specific outreach to all segments of the community will assist and strengthen policy formulation to result in meaningful actions that have a significant positive impact.

Assessment of Fair Housing
The housing element includes a housing needs assessment, which includes various requirements such as analysis of household characteristics (e.g., overpayment, overcrowding), housing conditions, and persons with special needs.46 These analyses, in turn, guide policy and action formulation. As part of the housing needs assessment, the element is now required to include an assessment of fair 45 Gov. Code, §§ 65583, subds. (c)(9), (10)(A)(i), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed.

Reg. 42271, 42292-42297, 42353-42360 (July 16, 2015). See details in, for instance, 24 C.F.R. §§ 5.514(d)(6), 5.158 (2016). 46 Gov. Code, §§ 65583, subd. (c)(10)(A), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42348-42351, 42353-42360, esp. 42353-42354 (July 16, 2015).

California Department of Housing and Community Development 23 Affirmatively Furthering Fair Housing
housing, including a summary of fair housing issues. A summary of fair housing issues is an essential step to informing and prioritizing contributing factors and, eventually, goals and actions.

A fair housing issue is a condition in a geographic area of analysis that restricts fair housing choice or access to opportunity, and includes such conditions as ongoing local or regional segregation or lack of integration, racially or ethnically concentrated areas of poverty and affluence, significant disparities in access to opportunity, disproportionate housing needs, and evidence of discrimination or violations of civil rights law or regulations related to housing.

Fair housing choice means that individuals and families have the information, opportunity, and options to live where they choose without unlawful discrimination and other barriers related to race, color, religion, sex, familial status, national origin, disability, or other protected characteristics. Fair housing choice encompasses: (1) Actual choice, which means the existence of realistic housing options; (2) Protected choice, which means housing that can be accessed without discrimination; and (3) Enabled choice, which means realistic access to sufficient information regarding options so that any choice is informed. For persons with disabilities, fair housing choice and access to opportunity include access to accessible housing and housing in the most integrated setting appropriate to an individual’s needs as required under federal civil rights law, including equitably provided disability-related services that an individual needs to live in such housing.

Examples:
● People with mobility impairments have actual choice when realistic housing options (e.g., units with accessible features) exist in their housing market area at an affordable cost. Persons with disabilities who are unable to use stairs or need a zero-step shower may not have actual housing choice without the presence of housing units with these accessibility features. ● People with lower incomes have actual choice when units that are affordable and well maintained exist in all parts of a jurisdiction and region.
● In order for families to have protected choice they need to access housing options without discrimination. In a 2016 housing discrimination study, researchers found that compared to households without children, households with children were shown slightly fewer units and were commonly told about units that were slightly larger, and as a result, slightly more expensive to rent. This differential treatment is considered discrimination and a type of steering, which occurs on a racial basis as well.47
● Households participating in the Housing Voucher Program have enabled choice when they are provided with sufficient information regarding their housing options so that any choice is informed.

For example, researchers found that, “if given the appropriate information and opportunities, more voucher families would move to better schools when their children reach school age.”48 47 For additional information see HUD’s December 2016 study, “Discrimination Against Families with Children in Rental Housing Markets:

Findings of the Pilot Study” available at: https://www.huduser.gov/portal/sites/default/files/pdf/HDSFamiliesFinalReport.pdf. 48 NYU Furman Center, “Why Don’t Housing Choice Voucher Recipients Live Near Better Schools? Insights from Big Data” published in June 2016 available at: https://furmancenter.org/research/publication/why-don8217t-housing-voucher-recipients-live-near-better-schoolsinsights-f. 24 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Analysis Requirements
An assessment of fair housing must consider the elements and factors that cause, increase, contribute to, maintain, or perpetuate segregation, racially or ethnically concentrated areas of poverty, significant disparities in access to opportunity, and disproportionate housing needs.49 Such an assessment would at least include all of the following components:50 ● Identification and Analysis of Patterns and Trends: First, the assessment should identify the conditions using either narration, data tables, maps or a combination of all three. See “Part 3: Resources” for sample data tables. The identification of conditions should spatially describe concentrations of all the assessment of fair housing components (e.g., fair housing enforcement and outreach, integration and segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs including displacement risk). Using the data tables and maps, the housing element must analyze differences in geographies. The analysis must address patterns at a regional and local level and trends in patterns over time.51 Patterns at a regional level must compare conditions at the local level to the rest of the region. This analysis should compare the locality at a county level or even broader regional level such as a Council of Government, where appropriate, for the purposes of promoting more inclusive communities. For localities near county borders, trends and patterns across county boundaries should be addressed. Patterns at a local level must address whether certain areas strongly differ from other areas and should utilize a data level (i.e., census tract or block group) that is most meaningful for this analysis. At minimum, the analysis should compare patterns from the most recent 5-Year American Community Survey and the prior 10-year census and could address trends over longer periods of time. The analysis should also examine differences in housing tenure (ownership vs. rental) among members of protected classes. ● Local Data and Knowledge: In addition to using federal or state level data sources, local jurisdictions are also expected to use local data and knowledge to analyze local fair housing issues, including information obtained through community participation or consultation, such as narrative descriptions of people’s lived experiences. Federal and state level data identify fair housing issues that exist within a community, but local data and knowledge can be especially important to developing an understanding of why the problems exist and why they persist. Using point-in-time federal and state level data sets alone to identify areas may misrepresent areas that are experiencing more current and rapid changes or may be primed to do so in the near future.

Also, federal and state data sets might not be available or could be less accurate at a smaller geography. For these reasons, an additional screen of local data and knowledge is necessary and should complement available federal and state data sources. There may be rare circumstances in which a jurisdiction has no local data or local knowledge for a particular topic and should include a statement that it has no local data or local knowledge it can use to address that particular assessment component.
49 Gov. Code, §§ 65583, subds. (c)(10)(A), (c)(10)(B), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed.

Reg. 42271 (July 16, 2015). See also 24 C.F.R. §§ 5.150, 5.152, 5.154(a), (d)(2) (2016). 50 Gov. Code, §§ 65583, subds. (c)(10)(A), (c)(10)(B), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42274, 42282-42283, 42322, 42323, 42336, 42339, 42353-42360, esp. 42355-42356 (July 16, 2015). See also 24 C.F.R. §§

5.150, 5.154(b)(2) (2016).
51 Gov. Code, §§ 65583, subds. (c)(9), (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271; 24 C.F.R. §§ 5.150, 5.514(d)(6), 5.158 (2016).

California Department of Housing and Community Development 25 Affirmatively Furthering Fair Housing
● Other Relevant Factors: A discussion of other relevant factors is an important piece of evaluating patterns and trends, policies and practices, and other factors that lead to fair housing conditions. Other relevant factors should consider information beyond data that identifies and compares concentrations of groups with protected characteristics. Examples of other relevant factors include changes and barriers in zoning and land use rules, information about past redlining/greenlining, patterns of institutionalization, restrictive covenants and other discriminatory practices, presence and history of place-based investment, mobility option patterns, and outreach and community engagement. Demographic trends can include population growth, age, housing tenure by protected characteristics, race, educational attainment, rates of homelessness, construction, and rent and sales prices. Policies and practices should include governmental barriers or lack of action, preservation of housing and development of new affordable housing, and addressing the needs of renters and unhoused or unstably housed people. This discussion should also incorporate the public participation process. Localities could engage the community around these patterns and trends to better identify policies and practices that led, or could lead, to less fair housing choice. This discussion should also include topics and information that complement the data at a regional and local level and sub-geographies within a locality. Other useful information could be the location and type of publicly assisted housing, such as housing financed with federal, state, and local financing. Trends related to housing choice vouchers can show patterns of concentration and integration to inform needed actions. Outcomes and policies related to inclusionary ordinances, general plans or specific plans can also be a good source of past practices to promote integration.
● Conclusions and Summary of Issues: A complete assessment must identify and summarize key issues to better identify and prioritize contributing factors to fair housing issues. An analysis will point to the clearest fair housing issue trends and patterns both within the jurisdiction and in comparison to the region, and will highlight the primary practices and other factors that have led to current conditions. In addition to utilizing the data and mapping resources, the jurisdiction must draw upon relevant and easily obtainable local data and knowledge when describing fair housing issues and trends. Local data may be more up-to-date and available at a more granular level. The summary of issues must be detailed and comprehensive enough so that later in the Assessment of Fair Housing it is clear what it would take for an action or program to not only address, but overcome and undo, the identified fair housing issues.

Data Sources and Using the Statewide AFFH
Data Viewer
The assessment of fair housing should use a variety of data, such as the U.S. Census, American Community Survey, local data and knowledge, and issues identified in the community participation process. Local data and knowledge refer to any locally gathered and available information, such as a survey with a reasonable statistical validity or usefulness for identifying contributing factors, policies, and actions. Localities must also collaborate with regional agencies to collect the appropriate data for the assessment of fair housing. For additional information on data sources see “Part 3: Resources.” 26 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Examples of Common Zoning and Land Use Barriers Include:
● Lack of zoning for a variety of housing types throughout a jurisdiction such as multifamily, duplexes to fourplexes, group housing, transitional and supportive housing at a variety of need levels, shelters, single room occupancy, residential motels, mobilehomes, and accessory dwelling units ● Predominance of single family uses and larger lot sizes in racially concentrated areas of affluence ● Voter initiatives that restrict multifamily developments, rezoning to higher density, height limits or similar measures that limit housing choices
● Multifamily height requirements
● Minimum unit sizes
● Parking requirements
● Lack of new affordable housing choices in high resource areas ● Lack of anti-displacement policies, including nonet loss of units in the case of demolitions and replacement housing, and relocation ordinances
● Lack of incentives and other land use mechanisms to promote affordable housing throughout the community
● Excluding group homes or residential care (greater than six persons) from single family zones or excessive spacing/concentration requirements
● Family definitions or other occupancy requirements
● Nuisance or crime free ordinances or programs
● Ordinances prohibiting excessive use of city services ● Restrictive historic preservation districts
● Zoning that does not allow for residential uses in commercial zones ● Failure to allow supportive housing by right
● Failure to allow emergency shelters by right
● Lack of zoning on land appropriate for accessible development Examples of Common Investment Barriers Include:
● Lack of infrastructure investment, including community infrastructure such as parks, community amenities in lower resource areas, disadvantaged communities, and areas of concentrated poverty ● Lack of targeted housing preservation/conservation and tenant protection programs in areas at risk of displacement
● Lack of public (local, state, or federal) funds invested in the development of affordable housing ● Absence of housing choice vouchers
● Limited housing stock affordable to lower income households or households with special needs ● Lack of proactive outreach with developers of affordable housing and non-profit service providers ● Lack of proactive measures to assist maintenance and rehabilitation of existing housing ● Lack of multilingual tenant counseling or foreclosure assistance Barriers to AFFH
California Department of Housing and Community Development 27 Affirmatively Furthering Fair Housing
AFFH Data Viewer: In addition to various data sources, HCD has developed a statewide AFFH Data Viewer. The AFFH Data Viewer assembles various data sources and provides options for addressing each of the components within the full scope of the assessment of fair housing. The AFFH Data Viewer may be utilized to address the data components of new requirements to affirmatively furthering fair housing but must be used in combination with other data such as local or regionally available data. The AFFH Data Viewer consists of map data layers organized by: 1) Fair Housing Enforcement and Outreach Capacity, 2) Segregation and Integration, 3) Disparities in Access to Opportunity, 4) Disproportionate Housing Needs, including Displacement Risks, 5) Racially and Ethnically Concentrated Areas of Poverty and Affluence and 6) Supplemental Data. The AFFH Data Viewer is intended to be useful to a broad audience, such as local and regional governments, and organizations involved in the housing element process. For more information, visit the HCD’s website at www.hcd.ca.gov/ community-development/affh/.

Incorporate HUD Assessment of Fair Housing into Housing Elements Generally, local jurisdictions that complete or revise an assessment of fair housing (AFH) or an analysis of impediments to fair housing choice (AI) pursuant to past federal requirements (prior to August 17, 2015) may incorporate relevant portions into the AFH portion of their housing element. This may include localities participating in a regional AI. For example, the housing element AFH may include various data points from their HUD AFH or AI, such as fair housing issues, analysis of patterns and trends, and identification of priorities that can be incorporated in concert with other data collection and analysis required in the housing element. Identification and prioritization of contributing factors to fair housing issues may also be useful as part of the housing element. However, incorporating these documents, particularly the analysis of impediments, may not meet all requirements or might include less relevant information than required for the housing element. For example, a regional HUD AI might not have relevant local data or contributing factors tailored to fair housing issues.

Information in a HUD AFH or AI may also be outdated or incomplete depending on how recently that information was prepared. Also, a HUD AI likely will not have the specific actions and programs that will be required in the housing element. The housing element must have programs with specific timelines, milestones, and metrics to ensure a meaningful impact. Local governments should seek to incorporate only the relevant portions in a manner that complements the analysis, identification of contributing factors and strategies and action. Jurisdictions may not simply add the HUD AFH or AI as an appendix, or place sections into the housing element without context or purpose, in lieu of engaging in the requisite analysis.52
Components of the Housing Element Assessment of Fair Housing53 An assessment of fair housing must identify and analyze patterns, trends, conditions, and practices that result in less fair housing choice and must address all of the following assessment components.

This section addresses each of the required components:

1. Summary of fair housing enforcement and outreach capacity;

2. Integration and segregation patterns, and trends related to people with protected characteristics;

3. Racially or ethnically concentrated areas of poverty; 52 Gov. Code, § 65583, subd. (c)(10)(B).
53 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353-42360 (esp. 42354-42356), 42361-42362 (July 16, 2015); 24 C.F.R. §§ 5.150, 5.152, 5.154(a), (b)(2), (d) (2016). 28 California Department of Housing and Community Development Affirmatively Furthering Fair Housing

4. Disparities in access to opportunity for people with protected characteristics, including persons with disabilities; and

5. Disproportionate housing needs within the jurisdiction, including displacement risk.

1. Fair Housing Enforcement and Outreach Capacity
Fair housing enforcement and outreach capacity relates to the ability of a locality and fair housing entities to disseminate information related to fair housing and provide outreach and education to assure community members are well aware of fair housing laws and rights. In addition, enforcement and outreach capacity includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing. The summary should include (1) a listing of local, regional and state agencies and organizations active in the locality, (2) description of primary activities and capacity for each entity, including actions taken by the locality, such as provision of dedicated resources, (3) evaluation of impacts on protected characteristics and geographic trends, and (4) any additional relevant information about fair housing enforcement, outreach capacity, and resources in the jurisdiction and region affecting groups with other protected characteristics.54
This summary will provide valuable information for local jurisdictions to evaluate fair housing issues that exist within the community, highlighting needs for remediation of existing fair housing concerns.

Wherever possible, the summary should include a discussion of fair housing enforcement and outreach at a geographic level appropriate to better determine any locational trends—simply reporting information at a city-wide level will not fully display patterns and impacts on protected characteristics. Examples of appropriate geographic levels include census tracts, block groups, neighborhoods, housing development, or any other sub-section of a locality. Additionally, fair housing organizations and other non-profits that receive funding through the Fair Housing Initiatives Program are a valuable resource for information, trends, and patterns to tailor and complete an adequate summary of fair housing enforcement and outreach capacity. An adequate discussion of fair housing enforcement and outreach will provide the necessary background information that can be analyzed with other components of the assessment of fair housing and site inventory to better inform contributing factors, priorities, and meaningful actions.

This summary must address: 55
● Findings, lawsuits, enforcement actions, settlements, or judgments related to fair housing or civil rights;
● Compliance with existing fair housing laws and regulations; ● Fair housing enforcement and housing outreach capacity; and ● Conclusion and findings: Summary of fair housing issues related to enforcement and outreach capacity and relationship to other fair housing issue areas (e.g., segregation and integration, racially and ethnically concentrated areas of poverty, etc.). 54 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353-42360 (esp. 42354-42356), 42361-42362 (July 16, 2015). 55 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42353- 42360 (July 16, 2015); 24 CFR § 5.154 (2016).

California Department of Housing and Community Development 29 Affirmatively Furthering Fair Housing
Findings, Lawsuits, Enforcement Actions, Settlements or Judgments Related to Fair Housing and Civil Rights
This section lists and summarizes legal actions that have or have not been resolved, including a charge or letter of finding from HUD concerning a violation of a civil rights-related law, a cause determination from the Department of Fair Employment and Housing (DFEH) or local fair housing agency concerning a violation of a state or local fair housing law, a letter of findings or notice of violation issued by HCD, or a letter of findings issued by or lawsuit filed or joined by the U.S. Department of Justice or the State of California Department of Justice, Office of the Attorney General, alleging a pattern or practice or systemic violation of a state and/or federal fair housing or civil rights law, or a claim under the False Claims Act related to fair housing, nondiscrimination, or civil rights generally, including an alleged failure to affirmatively further fair housing.

Compliance with Existing Fair Housing Laws and Regulations The element should include a description of state and local fair housing laws and how the locality complies with those laws.

Examples of state fair housing laws include:
● California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2)
● FEHA Regulations (California Code of Regulations (CCR), title 2, sections 12005-12271) ● Government Code section 65008 covers actions of a city, county, city and county, or other local government agency, and makes those actions null and void if the action denies an individual or group of individuals the enjoyment of residence, landownership, tenancy, or other land use in the state because of membership in a protected class, the method of financing, and/or the intended occupancy.
» For example, a violation under Government Code section 65008 may occur if a jurisdiction applied more scrutiny to reviewing and approving an affordable development as compared to market-rate developments, or multifamily housing as compared to single family homes. » Government Code section 65008, subdivision (e), authorizes preferential treatment of affordable housing ● Government Code section 8899.50 requires all public agencies to administer programs and activities relating to housing and community development in a manner to affirmatively further fair housing and avoid any action that is materially inconsistent with its obligation to affirmatively further fair housing.
● Government Code section 11135 et seq. requires full and equal access to all programs and activities operated, administered, or funded with financial assistance from the state, regardless of one’s membership or perceived membership in a protected class. ● Density Bonus Law (Gov. Code, § 65915.)
● Housing Accountability Act (Gov. Code, § 65589.5.)
● No-Net-Loss Law (Gov. Code, § 65863)
30 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Least Cost Zoning Law (Gov. Code, § 65913.1)
● Excessive subdivision standards (Gov. Code, § 65913.2.) ● Limits on growth controls (Gov. Code, § 65302.8.)
● Housing Element Law (Gov. Code, § 65583, esp. subds. (c)(5), (c)(10).) Examples of local fair housing laws include:
● San Francisco’s “No Eviction without Representation Act” which provides eligible tenants who have received an eviction notice, or been served with an unlawful detainer (eviction) lawsuit, free legal representation.
● Local rent control or rent freezes
● Voter initiatives to fund affordable and/or supportive housing ● Local ordinances that limit rent increases and limit late fees ● Ordinances facilitating community land trusts and tenant opportunities to purchase their multifamily housing ● Local ordinances designed to prevent displacement of mobilehome residents ● Local relocation ordinances
● Local ordinances that prohibit unlawful harassment of tenants including things such as illegal lockouts, utility shutoffs, and removing tenants’ belongings from the unit. ● The City of Oakland’s tenant protection ordinance which makes it illegal for landlords to misrepresent or conceal material facts related to a tenant vacating ● Inclusionary ordinances
● Laws/regulations or agreements related to the use of local housing funds ● Eviction protection ordinances enacted to protect renters during the COVID-19 pandemic and rental relief programs to protect tenancies that accumulated rental debt during the pandemic

2. Integration and Segregation Patterns and
Trends Related to People with Protected Characteristics and Lower Incomes
To inform priorities, policies, and actions, the housing element must include an analysis of integration and segregation, including patterns and trends, related to people with protected characteristics.56 Importantly, the analysis must address both integration and segregation to holistically evaluate the patterns and practices and better identify and prioritize contributing factors to fair housing issues.57 A strong analysis would also address segregation and integration of households with lower incomes.58 56 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42336, 42353-42360 (July 16, 2015); 24 C.F.R. § 5.152 (2016). 57 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42336, 42353-42360 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154 (2016). 58 Gov. Code, §§ 65008, 65583 [“shall make adequate provision for the existing and projected needs for all economic segments of the community] and subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42336, 42353-42360 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154 (2016).

California Department of Housing and Community Development 31 Affirmatively Furthering Fair Housing
Defining Integration and Segregation
Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.

Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.

The analysis must address areas of ongoing and concentrated segregation and integration and compare concentrations of protected characteristics and incomes at both a regional and local level.59 The analysis should consist of comparisons using data tables or maps. To compare, the analysis should discuss the degrees of segregation and integration for protected characteristics and incomes.

At minimum, the analysis must discuss levels of segregation and integration for race and ethnicity, income, familial status, persons with disabilities, and identify the groups that experience the highest levels of segregation. 60
Data Considerations
Two quantitative metrics can be used to analyze the relative extent of racial and ethnic segregation in entitlement jurisdictions for federal housing programs.61 These are known as the dissimilarity index and the isolation index. The dissimilarity index is a primary quantitative metric used for identifying patterns of geographic segregation. The isolation index, another quantitative metric for identifying patterns of geographic segregation, compares a group’s share of the overall population to the average share within a given sub-area (such as block group). Data to calculate dissimilarity index and isolation index are available at the Census Tract or block group level from the American Community Survey:
https://www.census.gov/programs-surveys/acs/data.html. Smaller jurisdictions may wish to utilize block group level data to better capture trends and patterns. Additional sources and approaches include the Entropy Index, the Divergency Index and the Exposure Index. For more information on formulas, see “Part 3: Resources.”
Identifying Dissimilarity at a Regional Level: To determine dissimilarity at a regional level, data tables or maps should be utilized to compare the locality to the broader region. See “Part 3: Resources” for sample data tables.

Identifying Dissimilarity at a Local Level: To determine dissimilarity or isolation at a local level, the housing element should identify and compare indices across census tracts, block group or some 59 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42336, 42353-42360 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154 (2016). 60 Gov. Code, § 8899.50; 24 C.F.R. 51.154(d) (2016); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42284-42285 (July 16, 2015).
61 HUD. (2013). AFFH Data Documentation. Available at: http://www.huduser.org/portal/publications/pdf/FR-5173-P-01_AFFH_data_ documentation.pdf; Glaeser, E. and Vigdor, J. (2001). Racial Segregation in the 2000 Census: Promising News. Washington, DC: The Brookings Institution, Center on Urban and Metropolitan Policy. Available at: https://www.brookings.edu/wp-content/uploads/2016/06/ glaeser.pdf
32 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
other geography at a level that best highlights patterns of segregation and integration. Data tables or maps may be utilized.

Identifying Dissimilarity for Lower Income Households: Using readily available data, local jurisdictions should map concentrations of low- and moderate-income (LMI) households within the community. Particularly for smaller jurisdictions with relatively few Census Tracts, this tool can enhance understanding of where there are pockets of concentrated low and moderate-income households within the community, because data are available at the block group level.

Data for this analysis are available in the form of HUD Low and Moderate Income Summary Data (LMISD), based on the American Community Survey (2011-2015). The data are available at the block group level from the following website: https://www.hudexchange.info/programs/acs-low-mod-summary-data/acs-low-mod-summary-data-block-groups-places/ The data file includes records for each block group with a calculation of the percentage of households that are LMI.

The LMISD data for the local jurisdiction can be thematically mapped to show the block groups where there are high concentrations of LMI households. Local jurisdictions should use this tool as part of the needs assessment to understand where there are concentrations of lower-income households within the community and identify the need for housing element policies and programs that can help to better distribute households of all income levels across the community. This can also highlight the need for housing element policies and programs that can help to provide better access to opportunity for households that live in areas where there are high concentrations of lower-income households.

This map can be overlaid with R/ECAP maps to identify areas where there are concentrations of LMI households as well as higher levels of segregation. Because the block group data available for this tool enables a more fine-grained geographic analysis of patterns low-income concentration and racial/ethnic segregation, this approach may be particularly useful in jurisdictions with relatively low populations spread across small numbers of census tracts where tools that rely on data only available at the census tract level may not provide sufficient resolution for meaningful analysis (e.g., see R/ ECAP tool, below).

3. Racially & Ethnically Concentrated Areas of Poverty (R/ECAP) The housing element must include an analysis of racially and ethnically concentrated areas of poverty.62 A strong analysis will separately evaluate significant concentrations of poverty and concentrations of Black, Indigenous and people of color (BIPOC) populations. The analysis must be conducted at a regional and a local level where the incidence of concentrated areas of poverty is discussed relative to the region and within the locality. 63 Importantly, this regional comparison should discuss the incidence of racial concentrations in areas of affluence. For example, a jurisdiction might not have areas of concentrated poverty, but have areas of affluence or vice versa, which might be unique when compared to the rest of the region. Identifying this difference between the locality and the region 62 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42336, 42353-42360 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154(c) (2016). 63 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42771, 42273, 42275, 42338-42342 (July 16, 2015); 24 C.F.R. §§ 5.152, 5.154(d), 5.156(d) (2016).

California Department of Housing and Community Development 33 Affirmatively Furthering Fair Housing
is an essential part of evaluating policies, practices and investments to better identify and prioritize contributing factors to fair housing issues. The analysis should evaluate the patterns and changes over time and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends.

Data Considerations
R/ECAP: To assist communities in identifying racially and ethnically concentrated areas of poverty (also known as R/ECAPs), HUD developed a definition that relies on a racial and ethnic concentration threshold, as well as a poverty test. For an area to be identified as having a racial and ethnic concentration, the threshold is that a RCAP or ECAP have a non-White population of 50 percent or more, within metropolitan or micropolitan areas. In locations outside these areas, where the non-White populations are likely to be much smaller than 50 percent, the threshold is set at 20 percent. The poverty test defines areas of “extreme poverty” as those where 40 percent or more of the population lives at or below the federal poverty line, or those where the poverty rate is three times the average poverty rate in the metropolitan area, whichever is less. An area that meets either the racial or ethnic concentration and also meets the poverty test would be considered a RCAP or ECAP; broadly referred to as R/ECAPs.

The R/ECAP database is available online at:
https://hudgis-hud.opendata.arcgis.com/datasets/56de4edea8264fe5a344da9811ef5d6e_0.

TCAC/HCD Opportunity Map: The High Segregation & Poverty category in the TCAC/HCD Opportunity Area Map may also be used in identifying R/ECAPS and is available online at:
https://www.treasurer.ca.gov/ctcac/opportunity.asp
Much like the R/ECAP, the High Segregation and Poverty category uses an absolute threshold for poverty. However, instead of a threshold for race, the TCAC/HCD approach uses a location quotient for racial segregation. The poverty threshold is 30 percent of the population living below the poverty line and the location quotient is essentially a measure of the concentration of race in a small area compared to a county level.

Local jurisdictions can use the HUD data to map or the TCAC/HCD Opportunity Area Map for High Segregation and Poverty to identify and analyze the presence of R/ECAPS in their community.

Racially Concentrated Areas of Affluence: In addition to identifying and analyzing racially and ethnically concentrated areas of poverty, an analysis should also consider concentrated areas of affluence to better evaluate trends, patterns, policies, and practices and to guide meaningful goals and actions to address fair housing issues. In response to the R/ECAPs utilized by HUD in its 2015 AFFH rule, scholars at the University of Minnesota Humphrey School of Public Affairs have created the Racially Concentrated Areas of Affluence (RCAAs) metric to more fully tell the story of segregation in the United States.64 Based on their research, RCAAs are defined as census tracts where 1) 80 percent or more of the population is white, and 2) the median household income is $125,000 or greater (slightly more than double the national the median household income in 2016). While this is a useful measure nationwide, HCD has adjusted the RCAA methodology to better reflect California’s relative diversity. 64 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124. 34 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
HCD’s version of the RCAA map and accompanying data can be accessed using the AFFH Data Viewer, and HCD encourages jurisdictions to use this metric as they prepare their R/ECAP analysis.

When analyzing patterns and trends of segregation and proposing policy approaches, localities should not only focus on communities of color. Segregation is a continuum, with polarity between race, poverty, and affluence, which can be a direct product of the same policies and practices. To better evaluate these conditions, both sides of the continuum should be considered and compare patterns within the community and across the region. This more holistic approach will better unveil deeply rooted policies and practices and improve identification and prioritization of contributing factors to inform more meaningful actions.

Local jurisdictions should use this information to understand where there are racial/ethnic concentrations of poverty and affluence as a starting point. A complete analysis will then address the trends, patterns, policies, practices, and conditions in combination with other relevant factors to summarize issues and better inform goals and actions.

4. Disparities in Access to Opportunity65
The housing element must identify and analyze significant disparities in access to opportunity. While the analysis can consider indices of various access to opportunity variables, it must also independently address access to opportunity variables. For example, the analysis may evaluate total access to opportunity (e.g., high, moderate, low), but must also individually address access to opportunity for education, transportation, economic development, and environment. This more complete understanding of what types of disparities in access to opportunity exist for what populations and in what geographies is necessary to identify and prioritize contributing factors to fair housing issues and formulation of goals and actions. This analysis must be conducted at a regional and local level and should address substantial differences in access to education, transportation, economic, environment and other important opportunities based on socio-economic characteristics (e.g., race, income, familial status, disability, income, poverty). Patterns over time should be discussed as well as policies, practices, and investments that affect access to opportunity. Local data and knowledge and other relevant factors must be considered, including incorporating public outreach and targeted community engagement. This analysis is a key opportunity to engage residents to learn what they want/need, but lack access to, as well as essential community assets to preserve.

What is Access to Opportunity?
Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions). 65 Gov. Code, §§ 65583, subd. (c)(10), 8899.50, subds. (a), (b), (c); see also AFFH Final Rule and Commentary (AFFH Rule), 80 Fed. Reg. 42271, 42305, 42338, 42336, 42353-42360 (July 16, 2015).

California Department of Housing and Community Development 35 Affirmatively Furthering Fair Housing
Housing Element Access to Opportunity Analysis
Through maps, data tables and discussion, the access to opportunity analysis must address the following opportunity variables: education, transportation, economic, environment, and other factors.

For educational opportunities, the analysis should, at minimum:
● Describe any differences amongst schools within a jurisdiction and whether access to more proficient schools has any patterns across protected characteristics (e.g., race and ethnicity, familial status, persons with disabilities);
● Analyze the proximity of proficient and less proficient schools to areas of segregation and racial and ethnic concentrated areas of poverty; and
● Evaluate the presence or lack of policies, practices, and investment to promote access to more proficient schools or that contribute to a disparity in access to opportunity.

For employment opportunities, the analysis should, at minimum:
● Describe any disparities in access to jobs by protected groups; ● Address where protected groups live and how that affects their ability to obtain a job; and ● Evaluate employment trends by protected groups.

For transportation opportunities, the analysis should, at minimum:
● Compare concentrations of protected groups with access to transportation options; ● Assess any disproportionate transportation needs for members of protected classes; and ● Analyze combined housing and transportation cost impacts on protected groups.

For access to a healthy environment, the analysis should, at a minimum:
● Describe any disparities in access to environmentally healthy neighborhoods by protected class groups;
● Consider available statewide data such as CalEnviroScreen at https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30; ● Evaluate consistency with the environmental justice element; and ● Discuss policies, practices and investments that impact access to environmentally healthy neighborhoods.

Additional factors to consider in the analysis should, at minimum:
● Patterns in Disparities in Access to Opportunity
» Identify and discuss any overarching patterns of access to opportunity for members of protected classes, including trends over time; » Identify areas that experience an aggregate of poor access to opportunity; and » Include how these patterns compare to patterns of segregation and R/ECAPs. 36 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Additional Information
» Provide additional relevant information, including local data and knowledge and community input, about disparities in access to opportunity in the locality and relative to the region.

Data Considerations
In collaboration, the California Tax Credit Allocation Committee (TCAC) and HCD developed the TCAC/HCD Opportunity Maps, a mapping tool that identifies areas of higher and lower resources to evaluate access to opportunity. The tool maps areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty.

Note: The moderate resource (rapidly changing) designation is still being evaluated to understand its efficacy at predicting future trends. The tool may be utilized to identify areas of high and low resources to address this analysis and is available at:
https://www.treasurer.ca.gov/ctcac/opportunity.asp
The TCAC/HCD Opportunity Maps can help to identify areas within the community that provide good access to opportunity for residents or, conversely, provide low access to opportunity. They can also help to highlight areas that are rapidly changing (potentially creating risk of displacement for lower-income households) and areas where there are high levels of segregation and poverty.

The information from the opportunity mapping can help to highlight the need for housing element policies and programs that would help to remediate conditions in low resource areas and areas of high segregation and poverty and to encourage better access for LMI and BIPOC households to housing in high resource areas.

Disparities in Access to Opportunity for Persons with Disabilities An analysis of disparities in access to opportunity must specifically address the housing and community development needs of persons with disabilities. According to the U.S. Census Bureau, over four million Californians have a disability. Health and safety are directly linked to housing, and yet, many people with disabilities face enormous barriers in finding suitable housing to accommodate their needs. Additionally, because people with disabilities have faced a history of institutionalization–in state hospitals, developmental centers, jails and prisons, etc. – ensuring that appropriate community-based housing with appropriate supports exists is critical. People with disabilities are also overrepresented in the unhoused population and any solutions related to homelessness must address appropriate accommodations and accessibility. Critically, there are significant disparities by race within the population with disabilities, so jurisdictions should engage in an intersectional analysis of needs. The assessment should consider the unique needs and barriers faced by persons with disabilities and whether persons with disabilities are able to access housing choices and services in an integrated community-based setting. Examples include accessibility features for housing, transportation, education, jobs and other types of community elements to enable fair housing choices.

Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty.

Data and factors to consider in an analysis of access to opportunity for persons with disabilities could include:

California Department of Housing and Community Development 37 Affirmatively Furthering Fair Housing
● Prevalence of Disability by Type (e.g., vision, hearing, cognitive, ambulatory, self-care and independent living) ● Disability by Age Group
● Disability by Race/Ethnicity/National Origin
● Assessment of Supportive Housing Stock and Other Housing Stock Including Group Homes, Homes for People with Intellectual or Developmental Disabilities and Mental Health Disabilities ● Assessment of Accessibility of Homelessness Programs and Coordinated Entry System ● General or Estimated Number of “Covered Multifamily Dwellings” – Adaptable Units under the Fair Housing Act66
» Federal law triggers specific accessibility requirements in fourplex and larger developments with covered multifamily dwellings.
● Estimated Number of Units with Mobility and Communication Accessibility Features under California Building Code Ch. 11B for public housing projects67 – housing provided by, for, or on behalf of a public entity, or as part of a public entity’s program to provide housing » 5 percent of these units are required to have mobility features, 2 percent of the units are required to have communication features regardless of first occupancy date or number of units in a building, including multistory dwellings and single-family dwellings. Note: Jurisdictions should consider higher requirements commensurate with identified need. ● Estimated Number of Multifamily Units pursuant to Government Code section 12955.1(b) » 10 percent of units in multifamily buildings without elevators consisting of three or more rental units or four or more condominium units are subject to accessibility building standards.

To address the housing needs of persons with disabilities and better inform the formulation of policies and actions, the analysis should include, where available: (1) data tables to evaluate trends, magnitude of needs relative to disability at a local, regional and state level (see Resources section for sample tables), (2) maps to analyze spatial patterns relative to accessibility features and services, in comparison to racial and ethnically concentrated areas of poverty, (3) housing accessibility, such as the dispersion of housing choices and zoning to encourage a variety of housing types, (4) efforts to integrate persons with disabilities into community based settings, and (5) a discussion of disproportionate housing needs, including policies and practices such as zoning barriers and gaps, disparities in access to accessibility features, services, resources and strategies, including geographically. Examples of data sources include U.S Census and American Community Survey. When evaluating spatial patterns, an analysis should address whether persons with disabilities are concentrated or integrated throughout the jurisdiction and region and if there are any geographic patterns for persons with disabilities by age.
66 The Fair Housing Act requires all "covered multifamily dwellings" designed and constructed for first occupancy after March 13, 1991 to be accessible to and usable by people with disabilities. Covered multifamily dwellings are all dwelling units in buildings containing four or more units with one or more elevators, and all ground floor units in buildings containing four or more units, without an elevator. Federal regulations adopted by the Department of Housing and Urban Development at 24 C.F.R. § 100.201 define covered multi-family dwellings. 67 California Building Code Chapter 11B covers public housing and generally meets 2010 Americans with Disabilities Act Standards, Fair Housing Act requirements when applicable by requiring adaptability features of FHA to other covered multifamily dwelling units if built for first occupancy as housing on or after March 13, 1991.
38 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
This disparities analysis for people with disabilities may be included in the disparities in access to opportunity section, segregation and integration section, as part of the section of the housing element that addresses the housing needs of persons with special needs, or in the specific analysis required on potential constraints on housing for persons with disabilities. Additionally, the analysis must go beyond simply identifying and removing barriers and constraints. The analysis should discuss resources and strategies to encourage housing options and access to opportunity to better inform meaningful and proactive goals and actions to address the housing and community development needs of persons with disabilities.

Common Zoning Barriers for Persons with Disabilities
● Reasonable Accommodation Procedure: The lack of a procedure to address disability issues is one of the most prominent zoning barriers because a strong process can be utilized to provide exception to zoning and land use policies that impact housing choices and livability for persons with disabilities. Other common issues with reasonable accommodation procedures include excessive findings of approval, burden on applicants to prove the need for exception, application costs, and discretionary approvals.
● Family Definition: Family definitions in zoning or other land use related documents can directly impact housing choices for persons with disabilities, particularly group home situations. Examples of common elements in family definitions that have an exclusionary effect include regulating the number of people, or requiring occupants to be related or under one lease agreement. ● Excluding Group Homes: Excluding group homes, community or residential care homes for seven or more persons, or subjecting these homes to a conditional use permit in single family zones acts as a barrier to housing choice for persons with disabilities. ● Spacing Requirements: Excessive spacing requirements, such 500 feet or more, between group homes or community or residential care facilities can have a direct impact on the supply of housing choices. ● Unit Types and Sizes: The lack of multifamily housing or zoned capacity for multifamily and a variety of sizes from efficiency to four or more bedrooms can constrain the ability of persons with disabilities to live in a more integrated community setting. ● Lack of Accessible Accessory Dwelling Units (ADUs): ADUs can provide an important housing choice for persons with disabilities or care providers, including independent and integrated living patterns.
● Nuisance and Crime Free Ordinances: Ordinances that can be used or have the effect of disproportionately targeting persons with disabilities. ● Lack of By Right Zoning for Supportive Housing: By right zoning for supportive housing can result in more objective processes that are less likely to discriminate or have the effect of discriminating against persons with disabilities.

California Department of Housing and Community Development 39 Affirmatively Furthering Fair Housing

5. Disproportionate Housing Needs, Including Displacement The housing element must include an assessment of disproportionate housing needs, including displacement risk, on people with protected characteristics and households with low incomes. This analysis is important to understand how some groups of persons experience severe housing needs when compared to other populations within a local level and when compared to a region. Particularly important to this analysis is local data and knowledge, since some areas could be impacted by market conditions that put households at risk of displacement, or pending or upcoming planning decisions may exacerbate displacement risk.

Disproportionate Housing Needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.

At minimum, the analysis must address:
● Cost Burden and Severe Cost Burden: Cost burden is the fraction of a household’s total gross income spent on housing costs. There are two levels of cost burden: (1) “Cost Burden” refers to the number of households for which housing cost burden is greater than 30 percent of their income; and (2) “Severe Cost Burden” refers to the number of households paying 50 percent or more of their income for housing. This analysis must address the burdens on both owners and renters (tenure).
● Overcrowding: Households having more than 1.01 to 1.5 persons per room are considered overcrowded and those having more than 1.51 persons per room are considered severely overcrowded. The person per room analysis excludes bathrooms, porches, foyers, halls, or half-rooms. This analysis must address the overcrowding on both owners and renters. ● Substandard Housing: As defined by the U.S. Census, there are two types of substandard housing problems: (1) Households without hot and cold piped water, a flush toilet and a bathtub or shower; and (2) Households with kitchen facilities that lack a sink with piped water, a range or stove, or a refrigerator. Given the limits of this measure, the analysis must incorporate local data and knowledge, such as housing conditions surveys or code enforcement activities. ● Homelessness: Includes individuals or families who lack or are perceived to lack a fixed, regular, and adequate nighttime residence, or who have a primary nighttime residence in a shelter, on the street, in a vehicle, or in an enclosure or structure that is not authorized or fit for human habitation. People experiencing homelessness are vulnerable to violence and criminalization due to their unhoused status.
40 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
The analysis should address these factors for protected characteristics and at least race and ethnicity, familial status, persons with disabilities and incomes. The analysis may use data tables or maps and at least must compare the locality to the broader region and the sub-geographies within the locality.

Other considerations for the analysis include:
● Identifying the protected groups (e.g., race/ethnicity, familial status, persons with disabilities and income) that experience higher rates of housing cost burden, overcrowding, homelessness, or substandard housing when compared to other groups);
● Discussing the areas of a locality that experience the greatest disproportionate housing needs and any coincidence with protected groups;
● Comparing the needs of families with the availability of housing stock with two and three or more bedrooms; and,
● Evaluating significant disparities relative to other factors such as renter and owner rates.

Displacement
Shifts in neighborhood composition are often framed and perpetuated by established patterns of racial inequity and segregation. Neighborhood change is influenced by three processes: movement of people, public policies and investments, such as capital improvements and planned transit stops, and flows of private capital (Zuk et al 2015)68. These processes can disproportionally impact people of color, as well as lower income households, persons with disabilities, large households, and persons at-risk or experiencing homelessness. These processes can also displace people to the extent of homelessness. An assessment of displacement within a city should address these three processes and their mutual dependencies, particularly as mediated by race and scale. For the purposes of this guidance, displacement is used to describe any involuntary household move caused by landlord action or market changes. Displacement is fueled by a combination of rising housing costs, rising income inequality, stagnant wages, and insufficient market-rate housing production (Been, Ellen, & O’Regan 2018)69. Decades of disinvestment in low-income communities, coupled with investor speculation, can result in a rent gap or a disparity between current rental income of the land, and potentially achievable rental income if the property is converted to its most profitable use.

Displacement can broadly be understood to be caused by disinvestment, investment-fueled gentrification, or a process combining the two. Low-income neighborhoods experience displacement due to disinvestment resulting from both public and private sector decisions. Similarly, both public and private investments fuel displacement by attracting residents with higher incomes and higher educational attainments into low-income communities (Chapple 2020).70 These forces can cause both physical displacement, preventing low-income communities of color from benefiting from the new economic growth; cultural displacement, as cultural resources disappear and communities are disrupted; and/or exclusionary displacement, with increasing housing prices preventing the entrance of low-income households (Cash et al. 2020).71
68 Zuk, M., et al. (2015). Gentrification, Displacement, and the Role of Public Investment. Federal Reserve Bank of San Francisco, 32. 69 Been, V., Ingrid, E., & O’Regan, K. (2019). Supply Skepticism: Housing Supply and Affordability. Housing Policy Debate, 29(1), 25-40. 70 Chapple, K. (2020). “On the Brink of Homelessness: How the Affordable Housing Crisis and the Gentrification of America Is Leaving Families Vulnerable.” Written statement for the record before the House Financial Services Committee, Washington DC: January 14, 2020. https:// docs.house.gov/meetings/BA/BA00/20200114/110362/HHRG-116-BA00-Wstate-ChappleK-20200114.pdfDesmon 71 Cash, Anna et al. (2019). Building a National Narrative of Anti-Displacement Strategies: Key Takeaways From SPARCCC Regions. Urban Displacement Project, University of California, Berkeley.

California Department of Housing and Community Development 41 Affirmatively Furthering Fair Housing
Disinvestment-driven Displacement: Historically, low-income communities in California with large populations of people of color have received fewer public sector investments in infrastructure, impacting everything from parks and schools to streets and sewers. Racially exclusionary housing policies and limited access to credit have limited and shaped private-sector investments in the same communities with lasting impact on homeownership and intergenerational wealth building (Trounstine 2018).72 Together, these forms of neighborhood disinvestment can lead to displacement of lowand moderate-income communities and communities of color. Disinvestment-fueled displacement can occur when the value of a property does not justify investing in its maintenance, often resulting in abandonment and decay (Zuk et al 2015).73 These displaced residents can often endure “hypermobility” when forced moves to substandard housing compel them to rapidly move again, creating a destructive cycle of housing instability (Desmond et al. 2015).74 Investment-driven Displacement: Displacement can take place as a neighborhood undergoes a process of gentrification, particularly within the context of the increasing desirability of housing in urban cores. Often following decades of disinvestment, a flood of public and private sector investments can lead to real estate speculation, improvements in transit access, and changes in land use.

While these investments and changes can be positive, they are also associated with displacement, as historic residents cannot afford to stay and benefit from investments in housing, transit infrastructure, and access to healthy foods. Studies of gentrification and investment-driven displacement consistently describe a pattern of whiter, wealthier, and more educated residents moving into historically disinvested neighborhoods, matching an outflow of poorer renters of color displaced by rising residential rents (Zuk et al. 2015).75 The foreclosure crisis contributed to making low-income communities vulnerable to gentrification and displacement. In these communities, disproportionate levels of predatory subprime lending resulted in waves of foreclosures, leaving the neighborhoods vulnerable to investors looking to purchase and flip homes. This displacement has been financed by banks, private equity, and Wall Street firms.

Capital providers often work with real estate speculators and serial evictor corporate landlords who purchase properties with the intention of evicting tenants and small businesses.

Gentrification: A process of neighborhood change that includes economic change in a historically disinvested neighborhood —by means of real estate investment and new higher-income residents moving in - as well as demographic change - not only in terms of income level, but also in terms of changes in the education level or racial make-up of residents.76 72 Jessica Trounstine, Segregation By Design: Local Politics and Inequality in American Cities. (Cambridge University Press, 2018). 73 Zuk, M., et al. (2015). Gentrification, Displacement, and the Role of Public Investment. Federal Reserve Bank of San Francisco, 32. 74 Desmond, M., Gershenson, C., & Kiviat, B. (2015). Forced Relocation and Residential Instability among Urban Renters. Social Science Review 89(2). 237-262.
75 Zuk, M., et al. (2015). Gentrification, Displacement, and the Role of Public Investment. Federal Reserve Bank of San Francisco, 32. 76 Gentrification Explained | Urban Displacement Project 42 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Disaster-driven Displacement: The geologic and climate forces that have helped shape California’s natural beauty also make the state susceptible to environmental disasters and their ensuing potential for displacement. California’s recent history has shown that environmental disasters such as wildfires, earthquakes and floods can be significant causes of displacement, and that climate change is accelerating the risk from such disaster events. The risk of climate disaster can also put pressure on lower income communities as wealthy people seek to relocate to safer locations. An analysis should address the potential displacement from local environmental hazards. Jurisdictions should make reference to their Local Hazard Mitigation Plan, Safety Element, Environmental Justice Element, and any recent locally available hazard data in detailing the types of environmental hazards present in the community, the location of high hazard risk areas in the community, and what type of populations live in those areas of heightened hazard risk. FEMA flood maps are a good starting point for assessing flood risk, but jurisdictions are encouraged to utilize any more recent local flood risk data available, as FEMA flood maps can oftentimes be outdated and fail to account for climate change.77 Addressing disaster risk is not a justification for furthering segregation, and policies that seek to address this risk should include strategies that mitigate the risk of displacement and exclusion.

In this analysis, jurisdictions should make note of potential impacts of disasters on protected classes and low-income residents, particularly low-income renter populations. Research has shown that low-income renter populations are disproportionately exposed to environmental hazards and that housing tenure is a telling determinant of social vulnerability to disasters.78 Renters bear the brunt of the existing affordable housing shortage, and their adaptive capacity to cope and recover from the impacts of environmental hazards may be reduced due to systemic inequities and limited resources.

Furthermore, renters also face the added physical challenges because they do not control the housing units they live in, and are more likely to be displaced post-disaster because of the following forces:
● Lack of control of when or if their housing unit will be rebuilt ● Lack of control of the maintenance or possible addition of resilience investments to the property ● Fewer financial resources to rebuild rental housing than for homeowners ● Rental price increases as rental housing supply decreases ● Evictions
● More likely to live in housing typologies such as apartments or duplexes, which can take longer to rebuild post-disaster
Any analysis of disaster-driven displacement risk should call out how those risks impact low-income renters in the community, and any programs or resources in place meant to increase resiliency and address those hazard risks. Disaster risk is not a justification for the perpetuation of patterns of segregation. Jurisdictions should creatively utilize both land use planning and public investments in mitigation measures to solve for the issues of environmental hazard risk, climate change adaptation, fair housing, and housing affordability simultaneously. 77 Homeland Security Inspector General – FEMA Needs to Improve Management of its Flood Mapping Programs, 2017, https://www. documentcloud.org/documents/4066233-OIG-17-110-Sep17.html 78 Lee & Van Zandt, 2018, Social Vulnerability to Disasters: A Review of the Evidence California Department of Housing and Community Development 43 Affirmatively Furthering Fair Housing
Data Considerations: Through maps, data tables, and discussion, the analysis must address the concentrations of risk of displacement. The analysis might consider the following variables that are associated with risk of displacement and neighborhood change.

Other Considerations:
● Public Infrastructure Investments: Government investments in physical infrastructure, such as rail transit, schools, parks, and highways can be associated with increasing home values and subsequent displacing forces (Zuk et al. 2015).
● Historically Disinvested Areas: Today’s displacement is built upon a history of dispossession and exclusion, fueled by racism, and perpetuated by the logic of capitalism. Historical exclusionary housing policies such as redlining, racially restrictive covenants, implicitly racial zoning, racialized public housing policies, and urban renewal continue to shape wealth accumulation and access to resources like high-quality schools and job centers. ● At-risk Affordable Units: The conversion of federally-and -state-subsidized affordable rental developments to market-rate units can constitute a substantial loss of housing opportunity for low-income residents. There are approximately 149,000 units of privately owned, federally assisted, multifamily rental housing, as well as tax-credit and mortgage revenue bond properties, often with project-based rental assistance. As the subsidy contracts or regulatory agreements expire, a large percentage of these units may convert to market-rate. These at-risk units are home to seniors and families with low incomes who are at risk of displacement if the developments convert.
44 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Income Variables
Variable Data Source Association
Income Diversity
U.S. Census Table P007
ACS % Year Estimates Table B03002
Higher income diversity is associated with
higher risk of neighborhood change
% of renters paying >35%
of income ACS 5 Year Estimates, DP04 Higher share of rent-burdened tenants is associated with higher risk of displacement % of owners paying >35%
of income ACS 5 Year Estimates, DP04 Higher share of over-burdened owners associated with higher risk of displacement Demographic Variables
Variable Data Source Association
% non-family households ACS 5 Year Estimates, DP02, B09029 Larger share of non-family households associated with higher risk of displacement % non-Hispanic whites ACS 5 Year Estimates, DP05 Larger share of non-Hispanic whites associated with lower risk of displacement
Educational Attainment ACS 5 Year Estimates, S21501 Increasing share of high educational attainment associated with active displacement Housing Variables
Variable Data Source Association
% of dwellings units in
buildings with 3+ units ACS 5 Year Estimates, DP04 Higher share of multi-unit buildings is associated with higher risk of displacement % renter-occupied housing ACS 5 Year Estimates, DP04 Higher share of renter-occupied housing is associated with higher risk of displacement
Median gross rent ACS 5 Year Estimates, DP04
Lower median gross rent compared to nearby
higher rents is associated with higher risk of
displacement
Overcrowding ACS 5 Year Estimates, DP04 Higher rates of overcrowding are associated with higher risk of displacement
California Department of Housing and Community Development 45 Affirmatively Furthering Fair Housing
Site Inventory
The purpose of the housing element’s site inventory is to identify and analyze specific land (site) that is available and suitable to accommodate the regional housing need by income group. The site inventory enables the jurisdiction to determine whether there are sufficient and adequate sites to accommodate the RHNA by income category. A site inventory and analysis will determine whether program actions must be adopted to “make sites available” with appropriate zoning, development standards, and infrastructure capacity to accommodate the new development need.

AB 686 requires a jurisdiction’s site inventory “…shall be used to identify sites throughout the community, consistent with…” its duty to affirmatively further fair housing.79 Sites must be identified and evaluated relative to the full scope of the assessment of fair housing (e.g., segregation and integration, racially and ethnically concentrated areas of poverty and affluence, access to opportunity, etc.). The site inventory and accompanying analysis must identify and analyze selected sites, map the location of the sites, indicate the number of projected units for each site and represent the assumed affordability (i.e., lower, moderate and above moderate) for each site, and evaluate relative to socio-economic patterns. Importantly, the analysis ought not be limited to the identification of sites for lower income households. Rather, it should incorporate the jurisdiction's projected housing development at all income levels and assess the extent to which that development will either further entrench or help to ameliorate existing patterns of segregation and/or exclusion of members of protected categories.

Where the analysis of the inventory indicates that the community has insufficient sites appropriately zoned and located to accommodate its lower income RHNA in a manner that affirmatively furthers fair housing, the housing element must include a program to address this inconsistency, such as making additional sites available to accommodate its lower income RHNA in a manner that affirmatively furthers fair housing. To evaluate the site inventory’s consistency with the obligation to affirmatively furthering fair housing, the site inventory analysis should address:
● Improved Conditions: A discussion of how the sites are identified in a manner that better integrates the community with a consideration for the historical patterns and trends, number of existing households, the magnitude (e.g., number of units) of the RHNA by income group and impacts on patterns of socio-economic and racial concentrations. ● Exacerbated Conditions: Similar to above, an explanation of identified sites relative to the impact on existing patterns of segregation and number of households relative to the magnitude (e.g., number of units) of the RHNA by income group.
● Isolation of the RHNA: An evaluation of whether the RHNA by income group is concentrated in areas of the community.
● Local Data and Knowledge: A consideration of current, planned and past developments, investment, policies, practices, demographic trends, public comment and other factors. 79 Gov. Code, §§ 65583.2, 65583, subd. (c)(10)(A), 8899.50; see also HCD, Building Blocks, at https://www.hcd.ca.gov/communitydevelopment/building-blocks/index.shtml; 24 C.F.R. § 5.154 (2016). 46 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Other Relevant Factors: Any other factors that influence the impacts of the identification of sites to accommodate the regional housing need on socio-economic patterns and segregation. This requirement should address any pending or approved plans, other elements of the general plan and relevant portions of the housing element and site inventory analysis requirements including, but not limited to, effectiveness of past programs in achieving the goals of the housing element, suitability of sites, existing uses and impacts of additional development potential, including potential for displacement of residents, businesses and other community amenities and infrastructure capacity.

Summary of Conclusions and Approach to Policies and Programs: Based on the outcomes of the analysis, the element must summarize conclusions and directly identify policies and programs needed to address identifying and making available adequate sites to accommodate the RHNA in a manner that affirmatively furthers fair housing. Policies and programs must include “meaningful actions” beyond combating discrimination to overcome patterns of segregation and foster inclusive, affordable and stable communities.

Specifically, the analysis must include each of the fair housing issue areas: (1) segregation and integration, (2) racially and ethnically concentrated areas of poverty (R/ECAPs), (3) access to opportunity, and (4) disproportionate housing needs, including displacement. The analysis should not be limited to the jurisdiction itself, but should include the surrounding region and an understanding of the role the jurisdiction plays in current and historical trends of segregation at a regional level.

Segregation and Integration
The analysis must address identified sites relative to segregation and integration of protected classes.

This analysis may focus on households by income but must address segregation and integration of other protected classes as well, including population by race, disability and familial status; the analysis must address the effects of economic segregation on members of protected classes. The analysis must show how the site inventory decreases the segregation index scores for protected classes and along income within the jurisdiction, as well as the segregation indices at the regional scale. It should provide an estimate of how much the sites identified are expected to decrease the dissimilarity and isolation index scores. Furthermore, the analysis should include an evaluation of current and historical spatial patterns of subsidized housing within and surrounding the jurisdiction, including emergency shelters, subsidized affordable housing, supportive housing, and usage of housing choice vouchers, and how the site inventory decreases patterns of segregation given these trends. This analysis of subsidized housing can provide insights into patterns of segregation and integration at a more granular scale that may prove helpful when U.S. Census data is only available at large geographies like tracts and block groups.

California Department of Housing and Community Development 47 Affirmatively Furthering Fair Housing
Data Considerations: Sample Methodology for Analysis by Income Group (should also be applied to race, disability and familial status)

1. Identify the percentage of the total local households that are lower, moderate and above moderate income.

2. A. Calculate the percentage of households in each census tract or block group that are lower, moderate and above moderate income.

B. As a secondary indicator, identify those tracts or block groups where the percentage of households at the appropriate income level is significantly higher than the community-wide average.

The actual level chosen should be sensitive to the local context. For example, if a community has a very low existing percentage of lower income households, an appropriate measure might be block groups where the percentage of lower income households is double the community-wide average.

In communities where the percentage of existing lower income households is relatively high, then a standard of 25 or 50 percent higher than the community-wide average may be appropriate. When tracts or block groups contain relatively small numbers of households, the percentage calculations will have relatively high margins of error (MOE). MOEs are also included in each record in the LMISD data. The MOEs should be considered when interpreting the results of this analysis.

3. Identify the existing percentage of LMI households in each block group where there is a residential capacity targeted to accommodate the RHNA for LMI households.

4. A. Calculate the total percentage of housing units counted towards satisfaction of the RHNA for lower income households where the existing block group percentage of LMI households exceeds the overall average for the jurisdiction.

B. Calculate the total percentage of housing units counted towards satisfaction of the RHNA for LMI households where the existing block group percentage of LMI households exceeds the secondary standard for concentration of LMI households that is significantly higher than the overall jurisdiction average.

5. If the percentage of housing units from #4 A. is significantly higher than the percentage from #2 A., and/or if the percentage of housing units from #4 B. is significantly higher than the percentage from #2 B., then this is an indicator that the site inventory for development of housing for lower income households is overly concentrated in areas that the housing sites would tend to encourage over-concentration of lower income households and sites targeted for lower income housing development should be better located among tracts or block groups where the percentage of lower income households is below the exiting citywide average.

6. Analyze local and regional data and knowledge, policies, practices and investments, demographic trends and other factors.
48 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Racially and Ethnically Concentrated Areas of Poverty and Affluence The analysis must evaluate both the location of identified sites and the location of capacity (number of units) by income group relative to racially and ethnically concentrated areas of poverty and affluence. The analysis should address whether sites are located in or near areas of concentrated poverty and race and affluence, and whether the identified sites significantly concentrate capacity (number of units) to accommodate lower income households in or near racially and ethnically concentrated areas of poverty. The analysis should also evaluate the relationship between the location where the capacity for the lower-income housing need is accommodated in comparison to the housing need for above moderate income households. For example, whether sites to accommodate above moderate income households are significantly concentrated in areas of affluence. This analysis of R/ECAPs and RCAAs should include looking at neighborhoods of the jurisdiction where there are no identified sites in the site inventory and evaluating if the absence of sites in those neighborhoods perpetuates patterns of R/ECAPs or RCAAs.

Disparities in Access to Opportunity
The analysis must address the location of identified sites and the location of capacity (number of units) by income group relative to overall access to opportunity and various categories of access to opportunity (e.g., education, transportation, employment, environment). The analysis should not only address an overall score value of access to opportunity, but must also individually address access to education, transportation, economic prosperity, areas with low rates of violent crime, parks and recreation areas, environmentally healthy neighborhoods and other important opportunities. This is an important place to include local data, such as school performance and enrollment boundaries, local bicycle and pedestrian data, and access to critical local and cultural institutions if available, although the analysis should extend beyond the jurisdiction’s boundaries when considering access to opportunity. This analysis should be quantitative where possible and qualitative at least to guide appropriate goals and actions resulting from the analysis. Even where information about these indicators of opportunity is more qualitative or anecdotal than quantitative, it is a valuable and necessary component of developing appropriate actions.

Local jurisdictions using the TCAC/HCD Opportunity Maps should note that rural areas are scored relative to other rural areas in the same county, meaning they are not scored on the same scale as non-rural areas. This is important to note in jurisdictions that include a mix of rural and non-rural areas. While the TCAC/HCD Opportunity Maps provide data at a block group level in rural areas, data tools for rural areas and lower population areas sometimes do not fully capture the nuance of the socio-economic patterns, which highlights the importance of using local data and knowledge as a complement.

California Department of Housing and Community Development 49 Affirmatively Furthering Fair Housing
Disproportionate Housing Needs, including Displacement Risk The identification of sites should be informed by the findings of the disproportionate housing needs section of the assessment of fair housing. To analyze sites relative to disproportionate housing needs, including displacement risk, a locality must identify and evaluate sites according to cost burdens, overcrowding and substandard housing. This analysis must also address displacement risks as well as any other disproportionate housing needs addressed in the assessment of fair housing based on local data and knowledge. Factors of disproportionate housing need (e.g., overpayment, overcrowding, displacement, etc.) may be considered together to the extent there is a significant coincidence. The analysis must also address ways in which development of the identified sites will impact displacement risk. Where development of the identified sites is likely to increase displacement risk, then the element must include programs to mitigate the risks and impacts of displacement.

Identification and Prioritization of Contributing
Factors
The housing element must include an identification and prioritization of significant contributing factors to segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs. Fair housing contributing factor (or contributing factor) means a factor that creates, contributes to, perpetuates, or increases the severity of one or more fair housing issues. See “Part 3: Resources” for examples of contributing factors by fair housing issue area. Contributing factors should be based on all the prior efforts and analyses: outreach, assessment of fair housing, and site inventory. Contributing factors must also be prioritized in terms of needed impact on fair housing choice and strongly connect to goals and actions.

The identification and evaluation of contributing factors must:
● Identify fair housing issues and significant contributing factors; ● Prioritize contributing factors, including any local information and knowledge, giving highest priority to those factors that most limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights compliance; and ● Discuss strategic approaches to inform and strongly connect to goals and actions.

For more information, see “Part 3: Resources” (Sample Contributing Factors and Action Matrix) 50 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Chart 2: Contributing Factors Relationship Between Assessment of Fair Housing and Goals and Actions

AFFIRMATIVELY

FURTHERING

FAIR HOUSING
Analyze patterns and trends of disparate housing
needs and disproportionate access to opportunities
Outreach
Efforts
+
Assessment of
Fair Housing
I
+ p
Sites
Inventory
Identify and Prioritize significant
contributing factors to fair housing choice
Establish strategic policies,
goals, and actions to AFFH based
on analysis contributing factors
California Department of Housing and Community Development 51 Affirmatively Furthering Fair Housing
The Importance of Prioritization
In any given community, there will be several contributing factors. However, listing contributing factors without analysis will not result in meaningful actions. For example, a list of 50 contributing factors that are not analyzed will likely result in less guided and impactful goals and actions.

Instead, the housing element must prioritize contributing factors and should consider a manageable list (e.g., 4-6) to strongly connect to goals and actions, focus resources and maximize impact in the planning period. Further, the element should consider regular evaluation of the effectiveness of goals and actions and adjust and re-prioritize contributing factors and goals and actions as necessary.

Contributing factors are not limited to public actions. Private actions can also contribute to patterns of segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs. While public agencies do not directly control private actions or contributing factors beyond a locality’s boundaries, the actions of public agencies can influence private action and have impacts beyond local boundaries. As a result, regardless of whether contributing factors are public or private or local, region, state or federal, the housing element must recognize a broader social and legal obligation to affirmatively further fair housing and still identify and prioritize those contributing factors to commit to commensurate goals and actions.

Using Other Consolidated Plan Documents
Localities may utilize an assessment of fair housing or analysis of impediments created pursuant to past federal requirements to identify and prioritize contributing factors to fair housing issues. Also, the statewide analysis of impediments and, if available, a regional analysis of impediments may be useful. While these documents may be a sufficient starting point, in all cases, contributing factors must be tailored to local conditions or must be re-evaluated and prioritized based on the assessment of fair housing in the housing element. Note that information in an AFH or AI may also be outdated or incomplete depending on how recently that information was prepared and may need to be updated.

Goals, Policies, and Actions
The housing element must include goals, policies and most specifically, a schedule of actions during the planning period. Actions must be specific with timelines, discrete steps and measurable outcomes to have a “beneficial impact” during the planning period. The schedule of actions must reflect the results of analyses and is intended to be adequate to address the housing needs of all economic segments of the community. The schedule of actions must address the following statutory areas:
● Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level; ● Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households;
52 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Address and, where possible, remove governmental and non-governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities and providing reasonable accommodation; ● Conserve and improve the condition of the existing affordable housing stock; ● Preserve assisted housing developments at risk of conversion to market rate; ● Promote housing opportunities throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics; and
● Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at an affordable rent.

What is “Beneficial Impact”
Programs in the element must have specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Deliverables should occur early in the planning period to ensure actual housing outcomes. For example, programs to “explore” or “consider” on an “ongoing” basis are inadequate to demonstrate a beneficial impact in the planning period. Conversely, a program with clear and specific commitment and numerical objectives such as “rezone 50 acres to high density by June 2022” is adequate to demonstrate a beneficial impact. This specific and clear commitment combined with numerical objectives and timelines is called “beneficial impact.” Similarly, programs to affirmatively furthering fair housing must have specific and clear commitment, milestones, and metrics or numerical and anticipated outcomes.

Goals and Policies
Goals and policies typically are utilized to determine a direction in the implementation of a schedule of actions. Through this direction, actions can be interpreted, prioritized, adjusted and carried out to best achieve the necessary outcomes to address the identified needs without re-evaluating over-arching principles or re-starting legislative or complex policy-making processes. To affirmatively further fair housing, goals and policies must have a specific connection to outreach, the assessment of fair housing, the analysis of the site inventory and most importantly, the prioritization of contributing factors to fair housing issues. Goals, policies and actions must be aggressively set to overcome those contributing factors to meet the “meaningful impact” requirement in statute and to avoid actions that are materially inconsistent with the obligation to affirmatively further fair housing. Goals and policies must be created with the intention to have a significant impact, well beyond a continuation of past actions, and to provide direction and guidance for meaningful action.

California Department of Housing and Community Development 53 Affirmatively Furthering Fair Housing
What If Goals Are Outside of Local Control?
Goals should be set regardless of whether a locality directly controls all the factors involved in achieving that goal. A locality’s ability to influence may be a consideration in development of actions but should not limit setting goals. Instead, recognizing the ability or inability to influence a goal should be a starting point for forming appropriate policies and actions. For example, a locality might have limited financial and staff resources. Instead of setting goals and actions at an inadequate level due to limited resources, localities should recognize this constraint and form policies and actions accordingly, such as building partnerships with non-profits to explore all private and public funding available, creating coalitions, working with legislators, exploring all private and public funding available, collaborating with nearby localities and seeking technical assistance.

Goals and policies to affirmatively further fair housing do not need to be independent or isolated on a contributing factor. Instead, goals and policies can be integrated with other goals and policies required by the housing element. For example, a housing element could have a program to “Improve housing supply.” On the other hand, an integrated program could “Improve and integrate housing supply, choices and affordability throughout the community.” Goals and policies intended to affirmatively further fair housing should be described as such. By integrating goals and policies, a locality can leverage efforts for a broader and more significant impact while better reflecting more inclusive values.

Actions
Actions implement goals and consist of concrete steps, timelines and measurable outcomes. Actions should be considered a part of the schedule of actions or programs required by Housing Element Law and must affirmatively further fair housing pursuant to Government Code section 8899.50. Specifically, Government Code section 8899.50 requires “meaningful actions” well beyond combating discrimination to overcome patterns of segregation and foster inclusive communities. These actions, as a whole, must:
● Address significant disparities in housing needs and in access to opportunity; ● Replace segregated living patterns with truly integrated and balanced living patterns; ● Transform racially and ethnically concentrated areas of poverty into areas of opportunity; and ● Foster and maintain compliance with civil rights and fair housing laws.

Further, local agencies shall not take any action materially inconsistent with the obligation to affirmatively further fair housing. This requirement should apply to all actions in the housing element and the rest of the general plan as well as any actions, policies or practices outside of the general plan. 54 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Action Areas
Actions to affirmatively further fair housing may include, but are not limited to:
● Enhancing housing mobility strategies;
● Encouraging development of new affordable housing in high resource areas; ● Improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing; and ● Protecting existing residents from displacement.

While the goals, policies and actions may select from the above areas (e.g., mobility, housing in high resource areas, place-based, protection from displacement), actions must be formulated in a manner to address the full scope of outreach, assessment of fair housing, analysis of site inventory and overcome contributing factors to fair housing. As a result, a schedule of actions generally must address all four categories.

For examples of affirmatively furthering fair housing actions by each of the action areas, see “Part 3:

Resources.”
Using a Variety of Actions
To address the full scope of outreach, complete the assessment of fair housing, and overcome contributing factors to fair housing and affirmatively further fair housing, actions must consider a wide range of actions across all action areas (e.g., mobility, housing in high resource areas, place-based and protection from displacement). The number and scale of actions will depend on the severity of the needs but regardless of need, a cohesive and effective program will consider multiple action areas. For example, a place-based approach might improve infrastructure or invest in active transportation, but those efforts would be ineffective in addressing needs without complementary anti-displacement measures.

Further, a balanced and effective approach will consider different types of actions utilizing: (1) human resources: outreach, education, marketing, collaboration, (2) land use resources: planning documents such as general plans, zoning, specific plans, ordinances and procedures, and (3) financial resources.

A balanced and effective approach will consider and combine each of these areas. For example, an approach could include marketing and collaboration as part of increasing mobility, zoning to increase housing choices in high resource areas, and investing financial resources in place-based and displacement action areas. An effective approach will also seek to combine these types within an action area.

For example, a locality might take a zoning and financial resources approach to displacement risks or creating new housing choices in high resource areas. By combining these action areas, a program will be more balanced and more effective in achieving the goals to affirmatively further fair housing.

California Department of Housing and Community Development 55 Affirmatively Furthering Fair Housing
Milestones, Objectives, Monitoring and Making Adjustments Specific actions with timelines and measurable or numerical objectives are essential to an effective approach. Successful outcomes will not be achievable and discernable without specificity. For example, a program to “explore feasibility on an ongoing basis” does little to achieve tangible results but a commitment to “rezone 50 acres to the high density district by October 2021” has a far more likelihood of producing results. In addition, measurable or numerical objectives clarify goals and serve as a reference point for monitoring the effectiveness of programs. As part of the annual progress report (Gov. Code, § 65400), localities, through a community process, should evaluate actions for progress toward goals and objectives and effectiveness to make regular adjustments as necessary.

Integrating Affirmatively Furthering Fair Housing into Existing Housing Element Programs
Housing elements must include actions to address statutory areas, such as identifying adequate sites to accommodate the regional housing need, assisting in the development of housing for lower income households and households with special needs, and conserving and improving the existing housing stock. 80 These statutory program areas can be modified to complement the statutorily required affirmatively furthering fair housing programs. 81 Examples include:
● Adequate Sites: In some cases, housing elements will include programs to rezone to address a shortfall of sites to accommodate the regional housing need. These types of programs should be carried out where possible to promote more inclusive communities. In addition, in some cases, a locality might find circumstances warranting rezoning above and beyond the regional housing need to promote more housing choices and affordability. Examples include long held patterns of isolation in higher income areas, or other factors, or when identifying sites to accommodate the housing need for lower income households exacerbates segregation. ● Assist in Development of Housing for Lower Income Households and Households with Special Needs: Housing elements will include programs to encourage affordable development, such as utilizing, seeking or supporting funding, building partnerships with non-profit developers and incentives for affordability. These programs can be targeted to high resource areas or other similar areas to promote inclusive communities.
● Addressing Governmental and Non-governmental Constraints: Land use and zoning can be a key barrier to inclusive communities. Zoning, permit processing, fees and other land use reforms can be targeted geographically to promote more inclusive communities. Non-governmental constraints can include factors such as local opposition to affordable housing. Education and other programs can be geographically targeted to build campaigns for more integrated land use patterns.
80 Gov. Code, §§ 65583, subd. (a)(3) , 65583.2; see also HCD, Building Blocks at https://www.hcd.ca.gov/community-development/buildingblocks/index.shtml. 81 Gov. Code, §§ 8899.50, 65583, subd. (c).
56 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Conserve and Improve the Existing Affordable Housing Stock: Elements must have actions to conserve and improve the existing affordable housing stock. Typical actions include programs for rehabilitation (renter, owner), acquisition and rehabilitation, infrastructure investment, conservation of mobilehome parks, housing choice vouchers, and administrative actions like zoning or displacement policies. These types of programs can be geographically targeted as place-based strategies to revitalize and improve communities or as new opportunities in high opportunity areas.
● Incentivize Accessory Dwelling Units (ADUs): Programs to incentivize ADUs can be targeted as new opportunities in high resource areas or as place-based revitalization strategies.

Integrating Goals, Policies and Actions across Multiple Planning Objectives
Various policy topics can be integrated where more than one objective is considered at a time to promote more balanced approaches and multiple benefits. The intent is to align objectives and set clearer direction to avoid future conflict. Various policy topics can be considered within the housing element and also across the general plan. For example, a goal or policy could be set to both identify adequate sites to accommodate the regional housing need and affirmatively furthering fair housing.

Also, a housing issue could be considered at the same time as a circulation or safety issue. Through more integrated approaches, the general plan becomes a more cohesive, internally consistent and implementable plan. For examples of integrated concepts in the general plan, please review resources developed by the Governor’s Office of Planning and Research. In addition, See “Part 3: Resources” for a matrix of policy topics and integrated planning approaches.

California Department of Housing and Community Development 57 Affirmatively Furthering Fair Housing
Part 3:

Resources
Statute (strikeout/underline)
Division 1 of Title 2 of the Government Code, Chapter 15 Government Code Section 8899.50 (Additions and Deletions in Strikeout/Underline) Section 8899.50. (a) For purposes of this section, the following terms have the following meanings:
(1) “Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (2) “Public agency” means all of the following:
(A) The state, including every state office, officer, department, division, bureau, board, and commission, including the California State University. (B) A city, including a charter city, county, including a charter county, city and county, and a redevelopment successor agency. (C) A public housing authority created pursuant to the Housing Authorities Law (Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code). (D) A public housing agency, as defined in the United States Housing Act of 1937 (codified at 42 U.S.C. Sec. 1437 et seq.), as amended.
(E) Any other political subdivision of the state that is a grantee or subgrantee receiving funds provided by the United States Department of Housing and Urban Development under the Community Development Block Grant program, the Emergency Solutions Grants program, the HOME Investment Partnerships program, or the Housing Opportunities for Persons With AIDS program. (b) A public agency shall administer its programs and activities relating to housing and community development in a manner to affirmatively further fair housing, and take no action that is materially inconsistent with its obligation to affirmatively further fair housing. 58 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
(c) This section shall be interpreted consistent with the Affirmatively Furthering Fair Housing Final Rule and accompanying commentary published by the United States Department of Housing and Urban Development contained in Volume 80 of the Federal Register, Number 136, pages 42272 to 42371, inclusive, dated July 16, 2015. Subsequent amendment, suspension, or revocation of this Final Rule or its accompanying commentary by the federal government shall not impact the interpretation of this section.
(d) In selecting meaningful actions to fulfill the obligation to affirmatively further fair housing, this section does not require a public agency to take, or prohibit a public agency from taking, any one particular action.

Division 1 of Title 7 of the Government Code, Chapter 3 Government Code Section 65583 (Additions and Deletions in Strikeout/Underline) Section 65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following:
(a) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1) through (9) Omitted – No substantive changes.
(b) (1) through (2) Omitted – No substantive changes.
(c) A program which that sets forth a schedule of actions during the planning period, each with a timeline for implementation, which that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level California Department of Housing and Community Development 59 Affirmatively Furthering Fair Housing
that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (A) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant to Section 65588, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f). Notwithstanding the foregoing, for a local government that fails to adopt a housing element within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards, shall be completed no later than three years and 120 days from the statutory deadline in Section 65588 for adoption of the housing element. (B) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2.
(C) Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households. (2) Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.
(3) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. disability, and 60 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.
(6) Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (7) Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(8) Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.
(9) (A) Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include all of the following components:
(i) A summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity. (ii) An analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs within the jurisdiction, including displacement risk.
(iii) An assessment of the contributing factors for the fair housing issues identified under clause (ii). (iv) An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved. (v) Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement.
(B) A jurisdiction that completes or revises an assessment of fair housing pursuant to Subpart A (commencing with Section 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal Regulations, as published in Volume 80 of the Federal Register, Number 136, page 42272, dated July 16, 2015, or an analysis of impediments to fair housing choice in accordance with the requirements of California Department of Housing and Community Development 61 Affirmatively Furthering Fair Housing
Section 91.225 of Title 24 of the Code of Federal Regulations in effect prior to August 17, 2015, may incorporate relevant portions of that assessment or revised assessment of fair housing or analysis or revised analysis of impediments to fair housing into its housing element. (C) The requirements of this paragraph shall apply to housing elements due to be revised pursuant to Section 65588 on or after January 1, 2021.
(d) through (f) omitted – No substantive changes.

Division 1 of Title 7 of the Government Code, Chapter 3 Government Code Section 65583.2 (Additions and Deletions in Strikeout/Underline) 65583.2. (a) A city’s or county’s inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites throughout the community, consistent with paragraph (9) of subdivision (c) of Section 65583, that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels pursuant to Section 65584. As used in this section, “land suitable for residential development” includes all of the sites that meet the standards set forth in subdivisions (c) and (g):
(1) Vacant sites zoned for residential use.
(2) Vacant sites zoned for nonresidential use that allows residential development. (3) Residentially zoned sites that are capable of being developed at a higher density, including the airspace above sites owned or leased by a city, county, or city and county. (4) Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, rezoned for, to permit residential use, including sites owned or leased by a city, county, or city and county. (b) Through (l) omitted – No substantive changes.
62 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
AB 686 Housing Element Compliance Checklist
Part 1 Outreach:

Does the element describe and incorporate meaningful engagement that represents all segments of the community into the development of the housing element, including goals and actions (e.g., language access, accessibility for persons with disabilities, resident engagement, including low income residents and residents in subsidized housing programs, description of comments and whether incorporated, and outreach to fair housing agencies, legal services and public housing agencies)?
Part 2 Assessment of Fair Housing:

Does the element include a summary of fair housing enforcement and capacity in the jurisdiction? Does the element include an analysis of these five areas: Fair housing and enforcement capacity? Integration and segregation patterns and trends? Racially or ethnically concentrated areas of poverty? Disparities in access to opportunity? And disproportionate housing needs within the jurisdiction, including displacement risk? Each of these four areas must have its own analysis.

Each analysis on the four fair
housing issue areas should include
the following:

Fair Housing
Enforcement
and Capacity
Segregation and
Integration R/ECAP Access to
opportunity
Disp. Housing
needs
+displacement
risk
Patterns and trends – local and
regional
Local data and knowledge
Other relevant factors
Conclusions and summary of issues
□
□
□
California Department of Housing and Community Development 63 Affirmatively Furthering Fair Housing
Part 3 Site Inventory:

Did the element identify and evaluate (e.g., maps) the number of units, location and assumed affordability of identified sites throughout the community (i.e., lower, moderate, and above moderate income RHNA) relative to all components of the assessment of fair housing? Did the element analyze identified sites related to improving or exacerbating conditions for each of the fair housing areas (integration and segregation, racially and ethnically concentrated areas of poverty, areas of opportunity, disproportionate housing needs, including displacement)? Part 4 Identification of Contributing Factors
Did the element identify, evaluate and prioritize the contributing factors to fair housing issues? Did the element prioritize those factors that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance? Part 5 Goals and Actions
Did the element identify goals and actions based on the identified and prioritized contributing factors?
Do goals and actions address mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for preservation and revitalization, displacement protection, and other program areas?
Are actions significant, meaningful and sufficient to overcome identified patterns of segregation and affirmatively further fair housing?
Did the element include metrics and milestones for evaluating progress on programs/actions and fair housing results, including concrete timelines?
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□
□
□
□
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64 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Definitions
Affirmatively Furthering Fair Housing
Meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development.82
Assessment of Fair Housing (AFH)
An analysis undertaken pursuant to 24 CFR § 5.154 that includes an analysis of fair housing data, an assessment of fair housing issues and contributing factors, and an identification of fair housing priorities and goals, and is conducted and submitted to HUD using the Assessment Tool. The AFH may be conducted and submitted by an individual program participant (individual AFH), or may be a single AFH conducted and submitted by two or more program participants (joint AFH), or two or more program participants, where at least two of which are consolidated plan program participants (regional AFH).83
Community Participation
As required in 24 CFR § 5.158, means a solicitation of views and recommendations from members of the community and other interested parties, a consideration of the views and recommendations received, and a process for incorporating such views and recommendations into decisions and outcomes. For HUD regulations implementing the Housing and Community Development Act of 1974, the statutory term for ‘‘community participation’’ is ‘‘citizen participation.’’84 Contributing Factor
A factor that creates, contributes to, perpetuates, or increases the severity of one or more fair housing issues. Goals in an AFH are designed to overcome one or more contributing factors and related fair housing issues as provided in 24 CFR § 5.154.85
Disparities in Access to Opportunity
Defined by the AFFH Final Rule as “substantial and measurable differences in access to educational, transportation, economic, and other opportunities in a community based on protected class related to housing.”86
82 Gov. Code, § 8899.50, subd. (a)(1).
83 24 C.F.R. §5.152 (2016).
84 bid.
85 Ibid.
86 Ibid.

California Department of Housing and Community Development 65 Affirmatively Furthering Fair Housing
Disproportionate Housing Needs
Generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden, severe cost burden, overcrowding, tenure (own vs. rent), homelessness, and substandard housing conditions.

Fair Housing Choice
Under the AFFH Final Rule, fair housing choice means that individuals and families have the information, opportunity, and options to live where they choose without unlawful discrimination and other barriers related to race, color, religion, sex, familial status, national origin, or disability. Fair housing choice encompasses:
● Actual choice, which means the existence of realistic housing options; ● Protected choice, which means housing that can be accessed without discrimination; ● Enabled choice, which means realistic access to sufficient information regarding options so that any choice is informed. For persons with disabilities, fair housing choice and access to opportunity include access to accessible housing and housing in the most integrated setting appropriate to an individual’s needs, as required under Federal civil rights law, including disability-related services that an individual needs to live in such housing.

Fair Housing Issue
A condition in a program participants geographic area of analysis that restricts fair housing choice or access to opportunity, and includes such conditions as ongoing local or regional segregation or lack of integration, racially or ethnically concentrated areas of poverty, significant disparities in access to opportunity, disproportionate housing needs, and evidence of discrimination or violations of civil rights law or regulations related to housing.87
Integration
A condition within the program participants geographic areas of analysis, as guided by the AFFH Data Viewer, in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” 88
Land Value Recapture
A policy approach by which communities can recover and reinvest land value increases that result from public investment and other government actions, including re-zoning. This can include things such as requiring community benefits from landowners and developers whose land has increased in value due to government actions, public benefit zoning, incentive zoning, density bonuses, housing overlay zoning, tax increment financing, community benefits agreements, special assessment districts, transferable development rights, linkage or impact fees, and others. 87 Ibid.
88 Ibid.
66 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Meaningful Action
Significant actions that are designed and can be reasonably expected to achieve a material positive change that affirmatively furthers fair housing by, for example, increasing fair housing choice or decreasing disparities in access to opportunity.89 Public Agency
Means all of the following:

A. The state, including every state office, officer, department, division, bureau, board, and commission, including the California State University.

B. A city, including a charter city, county, including a charter county, city and county, and a redevelopment successor agency.

C. A public housing authority created pursuant to the Housing Authorities Law (Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code).

D.A public housing agency, as defined in the United States Housing Act of 1937 (codified at 42 U.S.C.

Sec. 1437 et seq.), as amended.

E. Any other political subdivision of the state that is a grantee or subgrantee receiving funds provided by the United States Department of Housing and Urban Development under the Community Development Block Grant program, the Emergency Solutions Grants program, the HOME Investment Partnerships program, or the Housing Opportunities for Persons With AIDS program.90 Segregation
A condition within the program participant’s geographic area of analysis....in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.91
89 Ibid.
90 Gov. Code, § 8899.50, subd. (a)(2).
91 24 C.F.R. §5.152 (2016).

California Department of Housing and Community Development 67 Affirmatively Furthering Fair Housing
Dissimilarity and Isolation Index Formulas
Dissimilarity Index: This index measures the evenness with which two groups (frequently defined on racial or ethnic characteristics) are distributed across the geographic units, such as block groups within a community. The index ranges from 0 to 100, with 0 meaning no segregation and 100 indicating complete segregation between the two groups. The index score can be understood as the percentage of one of the two groups that would need to move to produce an even distribution of racial/ethnic groups within the specified area. An index score above 60 is considered high (i.e.:
60 percent of people would need to move to eliminate segregation), while 30 to 60 is considered moderate, and below 30 is considered low.92
The formula for calculating the dissimilarity index, by Census block group, is as follows:
● Pig is the population of group g in Census block group i ● Pih is the population of group h in Census block group i ● Pg is the total population of group g in the City
● Ph is the total population of group h in the City
Isolation Index: Ranging from 0 to 100, the isolation index represents the percentage of residents of a given race or ethnicity in a block group where the average resident of that group lives, correcting for the fact that this number increases mechanically with that group’s share of the overall citywide population. Using Hispanic or Latino residents as an example, an aggregate isolation index of 40 indicates that the average Hispanic or Latino resident lives in a block group where the Hispanic share of the population exceeds the overall citywide average by roughly 40 percent. Isolation index values that equal close to zero indicate that members of that BIPOC group live in relatively integrated neighborhoods.93 94
The formula for calculating the isolation index, by Census block group, is as follows:
● Pig is the population of group g in Census block group i ● Pit is the total population in Census block group i
● Pg is the total population of group g in the City
● Pt is the total population in the City
92 Massey, D.S. and N.A. Denton. (1993). American Apartheid: Segregation and the Making of the Underclass. Cambridge, MA: Harvard University Press.
93 HUD. (2013). AFFH Data Documentation. Available at: http://www.huduser.org/portal/publications/pdf/FR-5173-P-01_AFFH_data_ documentation.pdf
94 Glaeser, E. and Vigdor, J. (2001). Racial Segregation in the 2000 Census: Promising News. Washington, DC: The Brookings Institution, Center on Urban and Metropolitan Policy. Available at: https://www.brookings.edu/wp-content/uploads/2016/06/glaeser.pdf Pig Pih ---
Pg Ph
68 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Local jurisdictions should use the dissimilarity index and/or isolation index tools as part of the needs assessment to help to understand where there are areas of segregation in the community and highlight needs for housing element policies and programs to help reduce segregation. Dissimilarity index and Isolation index values for census tracts within the jurisdiction can be mapped thematically to highlight areas with high levels of segregation. This will highlight locations within the community where there are needs for housing element policies and programs to promote better racial and ethnic integration and reduce segregation.

Examples of Contributing Factors to Fair
Housing Issues by Area
Outreach
● Lack of a variety of media (e.g., meetings, surveys, stakeholder interviews) ● Lack of marketing community meetings
● Lack of meetings at various times
● Lack of accessibility to draft documents
● Lack of language access
● Lack of accessible forums (e.g., webcast, effective communication, reasonable accommodation procedures)
Fair Housing Enforcement and Outreach Capacity
● Lack of local private fair housing outreach and enforcement ● Lack of local public fair housing enforcement
● Lack of resources for fair housing agencies and organizations ● Lack of state or local fair housing laws to support strong enforcement ● Unresolved violations of fair housing or civil rights law (including challenges to protect the constitutional and statutory rights of unhoused people) Segregation and Integration
● Community opposition
● Displacement of residents due to economic pressures
● Lack of community revitalization strategies
● Lack of private investments in specific neighborhoods ● Lack of public investments in specific neighborhoods, including services or amenities ● Lack of regional cooperation
● Land use and zoning laws
● Lending discrimination
● Location and type of affordable housing
● Occupancy codes and restrictions
● Private discrimination
● Source of income discrimination
● Lack of tenant protections
● Harassment
● Lack of supportive housing in community-based settings ● Policing and criminalization
California Department of Housing and Community Development 69 Affirmatively Furthering Fair Housing
Racially and Ethnically Concentrated Areas of Poverty
● Community opposition
● Deteriorated and abandoned properties
● Displacement of residents due to economic pressures
● Lack of community revitalization strategies
● Lack of private investments in specific neighborhoods ● Lack of public investments in specific neighborhoods, including services or amenities ● Lack of regional cooperation
● Land use and zoning laws
● Location and type of affordable housing
● Occupancy codes and restrictions
● Private discrimination
● Lending discrimination
● Policing and criminalization
Disparities in Access to Opportunity
● Access to financial services
● The availability, type, frequency, and reliability of public transportation ● Lack of private investments in specific neighborhoods ● Lack of public investments in specific neighborhoods, including services or amenities ● Lack of regional cooperation
● Land use and zoning laws
● Lending discrimination
● Location of employers
● Location of environmental health hazards
● Location of proficient schools and school assignment policies ● Location and type of affordable housing
● Occupancy codes and restrictions
● Private discrimination
● Policing and criminalization
Disparities in Access to Opportunity for Persons with Disabilities ● Access to proficient schools for persons with disabilities ● Access to publicly supported housing for persons with disabilities ● Access to transportation for persons with disabilities ● Inaccessible government facilities or services
● Inaccessible sidewalks, pedestrian crossings, or other infrastructure ● Lack of affordable in-home or community-based supportive services ● Lack of affordable, accessible housing in range of unit sizes ● Lack of affordable, integrated housing for individuals who need supportive services ● Lack of assistance for housing accessibility modifications ● Lack of assistance for transitioning from institutional settings to integrated housing ● Land use and zoning laws
● Lending discrimination
● Location of accessible housing
70 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● Occupancy codes and restrictions
● Lack of effective accommodations for unhoused people with disabilities ● Regulatory barriers to providing housing and supportive services for persons with disabilities ● State or local laws, policies, or practices that discourage individuals with disabilities from being placed in or living in apartments, family homes, and other integrated settings ● Policing and criminalization (especially people with mental disabilities or neurodivergent individuals) Disproportionate Housing Needs, Including Displacement Risks ● The availability of affordable units in a range of sizes ● Displacement of residents due to economic pressures
● Lack of private investments in specific neighborhoods ● Lack of public investments in specific neighborhoods, including services or amenities ● Lack of renter protections
● Lack of protections for mobilehome park residents
● Land use and zoning laws
● Lending discrimination
● Lack of rental relief programs for people at risk of homelessness Site Inventory
● Community opposition
● Lack of community revitalization strategies
● Lack of private investments in specific neighborhoods ● Lack of public investments in specific neighborhoods, including services or amenities ● Lack of regional cooperation
● Land use and zoning laws
● Local policies or practices (e.g., councilmember veto) ● Location and type of affordable housing
● Private discrimination
California Department of Housing and Community Development 71 Affirmatively Furthering Fair Housing
Sample Contributing Factors & Actions Matrix
Identified Fair
Housing Issue
Contributing
Factor
Priority
(high, medium, low) Meaningful Action
72 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Examples of Affirmatively Furthering Fair
Housing Actions
Housing Mobility Strategies consist of removing barriers to housing in areas of opportunity and strategically enhancing access. Examples include:
● Voucher mobility
● Housing mobility counseling
● City-wide affordable rental registries
● Landlord outreach to expand the location of participating voucher properties ● Landlord education and outreach on source of income discrimination and voucher programs ● Assistance with security deposits and moving expenses for voucher holders and other low-income tenants ● Extend search times for particular groups with housing choice vouchers, such as larger families with children or persons with disabilities
● Regional cooperation and administration of vouchers (such as through portability and shared waiting lists);
● Affirmative marketing can be targeted at promoting equal access to government-assisted housing or to promote housing outside the immediate neighborhood to increase awareness and the diversity of individuals in the neighborhood
● Collaborate with high performing school districts to promote a diversity of students and staff to serve lower income students
● Developing multifamily housing opportunities95
● Encouraging the development of four or more units in a building ● Encouraging collaboration between local governments and community land trusts as a mechanism to develop affordable housing in higher-opportunity areas.96 ● Accessibility programs focus on improving access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses New Housing Choices and Affordability in Areas of Opportunity means promoting housing supply, choices and affordability in areas of high opportunity and outside of areas of concentrated poverty. Examples include:
● Zoning, permit streamlining, fees, incentives and other approaches to increase housing choices and affordability (e.g., duplex, triplex, multifamily, accessory dwelling units, transitional and supportive housing, group homes) in high opportunity areas ● Target housing creation or mixed income strategies (e.g., funding, incentives, policies and programs, density bonuses, land banks, housing trust funds) ● Inclusionary requirements
95 The federal FHA includes design and construction requirements for all residential buildings with four or more attached units. In buildings with stairs, all ground floor units must be accessible, and in buildings with elevator access, all units must have minimum access. There is no federally mandated standard for accessibility in single family homes. Government Code section 12955.1, subdivision (b), requires 10 percent of units in multifamily buildings without elevators consisting of 3 or more rental units or 4 or more condominium units are subject to accessibility building standards.
96 See Community Land Trusts and Stable Affordable Housing, available at https://www.huduser.gov/portal/pdredge/pdr-edge-featdarticle-110419.html, last visited on March 19, 2021.

California Department of Housing and Community Development 73 Affirmatively Furthering Fair Housing
● Scattered site affordable development
● Targeted investment and programs, including sweat equity, down payment assistance, new rental construction
● Accessibility modification programs and other measures that proactively enhance accessibility ● Increase accessible number of units above state law through incentives, policies, funding and other similar measures
● Developing waiting lists for persons with disabilities, such as coordination with regional centers for developmental services and targeting those lists to property owners or homeowners making units (e.g., ADUs) available
● Leveraging in-home or community based supportive services ● Develop a campaign to combat local opposition
● Increase number of ADUs allowed per site
● Increasing opportunities for community ownership of housing Place-based Strategies to Encourage Community Conservation and Revitalization Involves approaches that are focused on conserving and improving assets in areas of lower opportunity and concentrated poverty such as targeted investment in neighborhood revitalization, preserving or rehabilitating existing affordable housing, improving infrastructure, schools, employment, parks, transportation and other community amenities. Examples include:
● Targeted investment in areas of most need focused on improving community assets such as schools, recreational facilities and programs, social service programs, parks, streets, active transportation and infrastructure ● Develop a proactive code enforcement program that targets areas of concentrated rehabilitation needs, results in repairs and mitigates potential cost, displacement and relocation impacts on residents
● Dedicate or seek funding to prioritize basic infrastructure improvements (e.g., water, sewer) in disadvantaged communities
● Address negative environmental, neighborhood, housing and health impacts associated with siting and operation of land uses such as industrial, agricultural, waste storage, freeways, energy production, etc. in disadvantaged communities
● Address negative impacts from climate change through investments in adaptation measures such as urban forestry, flood prevention measures, etc. in disadvantaged communities ● Target acquisition and rehabilitation to vacant and blighted properties in neighborhoods of concentrated poverty
● Inter-governmental coordination on areas of high need ● Prioritized capital improvement programs
● Develop new financing
● Recruit residents from areas of concentrated poverty to serve on boards, committees, task forces and other local government decision-making bodies
● Catalyze leadership and future community wide decision-makers, including affirmative recruitment in hiring practices ● Leverage private investment for community revitalization, including philanthropic ● Expand access to community meetings, including addressing language barriers, meeting times 74 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Protecting Existing Residents from Displacement comprises strategies that protects residents in areas of lower or moderate opportunity and concentrated poverty and preserves housing choices and affordability. Examples include:
● First right of return to existing residents and policies that include moving expenses ● Multi-lingual tenant legal counseling
● Affirmative marketing strategies or plans targeting nearby neighborhoods, a Disadvantaged Community or a Low-Income Community
● Replacement requirements in targeted growth areas such as transit stations, transit corridors, job and housing rich areas, downtowns and revitalization areas or policies on sites identified to accommodate the housing needs of lower income households ● Rent stabilization programs beyond what is required by California Civil Code 1946.2 ● Just cause eviction or other efforts improving tenant stability beyond what is required by California Civil Code 1946.2 ● Policies to preserve Single Room Occupancy (SRO) housing or mobilehome parks ● Condominium conversion restrictions
● Land banking programs actively receiving funding
● Community benefit zoning and/or other land value recapture strategy ● Rent review board and/or mediation, foreclosure assistance, or multilingual tenant legal counseling services ● Density bonus ordinances that expand on state replacement requirements ● Implementation of an overlay zone to protect and assist small businesses ● Establishment of a small business advocate office and single point of contact for every small business owner;
● Creation and maintenance of a small business alliance; ● Increased visibility of the jurisdiction’s small business assistance programs; ● Formal program to ensure that some fraction of a jurisdiction’s purchases of goods and services come from local businesses
● Prioritization of Minority and Women Business Enterprises (MWBE) for public contracting ● Environmental contamination mitigation and hazard mitigation measures such as seismic retrofits, flood adaptation measures, etc. to prevent displacement from disasters ● Eliminating crime-free or nuisance ordinances or programs that result in penalties to landlords and evictions of tenants
California Department of Housing and Community Development 75 Affirmatively Furthering Fair Housing
Sample Tables
Regional Comparisons
Population by Race/Ethnicity
City County Region/State
2010 2018 2010 2018 2010 2018
White (Non-Hispanic)
Hispanic/Latino
Black or African American
Native American
Asian
Native Hawaiian and Other Pacific Islander
Other
Two or More Races
Population by Disability Type
City County Region/State
2010 2018 2010 2018 2010 2018
Total with a Disability
» Hearing Difficulty
» Vision Difficulty
» Cognitive Difficulty
» Ambulatory Difficulty
» Self-care Difficulty
» Independent Living
Source: XXXXXXXXX
76 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Housing Units by Type
City County Region/State
2010 2018 2010 2018 2010 2018
Single Family-Detached
Single Family-Attached
2-4 Units
5+ Units
Mobilehomes
Other
Source: XXXXXXXXX
Population by Familial Status
City County Region/State
2010 2018 2010 2018 2010 2018
Family Households
» Married-Couple Family Households
• With Children
• Without Children
» Other Family Households
• With Children
• Without Children
Non-family Households
Source: XXXXXXXXX
California Department of Housing and Community Development 77 Affirmatively Furthering Fair Housing
Households by Income
City County Region/State
2010 2018 2010 2018 2010 2018
Less than $10,000
$10,000-$14,999
$15,000-$24,999
$25,000-$34,999
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000-$149,999
$150,000-$199,999
$200,000 or More
Median Income
Source: XXXXXXXXX
Households by Overpayment
City County Region/State
2010 2018 2010 2018 2010 2018
Owner Households (All Low Income
Levels 0-80% AMI)
Paying >30%
Paying >50%
Renter Households (All Low Income
Levels 0-80% AMI)
Paying >30%
Paying >50%
Owner Households (Extremely Low
Income Levels 0-30% AMI)
Paying >30%
Paying >50%
Renter Households (Extremely Low
Income Levels 0-30% AMI)
Paying >30%
Paying >50%
Source: XXXXXXXXX
78 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Households by Tenure
City County Region/State
2010 2018 2010 2018 2010 2018
Owner Households
Renter Households
Total Households
Source: XXXXXXXXX
Households by Overcrowding
City County Region/State
2010 2018 2010 2018 2010 2018
Owner Households
» 1.01 to 1.50 occupants per room
» 1.51 to 2.00 occupants per room
» 2.01 or more occupants per room
Renter Households
» 1.01 to 1.50 occupants per room
» 1.51 to 2.00 occupants per room
» 2.01 or more occupants per room
Total Households
Source: XXXXXXXXX
California Department of Housing and Community Development 79 Affirmatively Furthering Fair Housing
List of Fair Housing Assistance Organizations
Name Service Area Address Phone Website
California
Department of Fair
Employment and
Housing
California 2218 Kausen Dr. Ste. 100
Elk Grove, CA 95758
916-478-7251 https://www.dfeh.
ca.gov/
Greater Bakersfield
Legal Assistance, Inc.

Kern County, CA 615 California Ave.

Bakersfield, CA 93304
661-325-5943 http://www.gbla.org/
Fair Housing Council of
Central California
Alpine, Amador, Butte, Calaveras,
Colusa, El Dorado, Fresno, Glenn,
Inyo, Kern, Kings, Lassen, Madera,
Mariposa, Merced, Modoc, Mono,
Nevada, Placer, Plumas, Sacramento,
San Joaquin, San Luis Obispo,
Shasta, Siskiyou, Solano, Stanislaus,
Sutter, Tehama, Trinity, Tulare,
Tuolumne, Yolo, Yuba
333 W. Shaw Ave. Ste. 14
Fresno, CA 93704
559-244-2950 http://www.fhc-cc.org/
index.html
Mental Health
Advocacy
Services, Inc.

Los Angeles area 3255 Wilshire Blvd. Ste. 902
Los Angeles, CA 90010
213-389-2077 http://mhas-la.org/
Southern California
Housing Rights Center
The City of Los Angeles, Los
Angeles County, Antelope Valley, &
Ventura County
3255 Wilshire Blvd. 1150 Los
Angeles, CA 90010
213-387-8400 http://www.hrc-la.org/
default.asp?id=6
Housing and Economic
Rights Advocates
State of California 1814 Franklin St. Ste. 1040
Oakland, CA 94612
510-271-8443 http://www.heraca.org/
Bay Area Legal Aid San Rafael, Napa, Richmond,
Oakland, San Francisco, Redwood
City, & San Jose
1735 Telegraph Ave.

Oakland, CA 94612 510-663-4755 https://baylegal.org/
1025 Macdonald Ave,
Richmond, CA 94801 510-233-9954
575 Lincoln Ave., Ste. 210,
Napa, CA 94558 707-259-0579
1800 Market St., 3rd Floor,
San Francisco, CA 94102 415-982-1300
1038 El Camino Real, Ste. A,
Redwood City, CA 94063 650-358-0745
4 N. Second St., Ste. 600,
San Jose, CA 95113 408-283-3700
80 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Name Service Area Address Phone Website
California Rural Legal
Assistance
California 1430 Franklin St., Ste. 103
Oakland, CA 94612 1-800-337-0690 https://www.crla.org/
141 A Street, Suite D. Arvin,
CA 93203 661-854-3839
1460 6th Street, P.O. Box
35Coachella, CA 92236 760-398-7261
601 High St., Ste. C Delano,
CA 93215 661-725-4350
449 Broadway St. El Centro,
CA 92243 760-353-0220
3747 E. Shields Ave. Fresno,
CA 93726 559-441-8721
126 North "B" St. Madera,
CA 93638 559-674-5671
511 "D" St. Marysville, CA
95901 530-742-5191
1020 15th St, Ste. 20,
Modesto, CA 95354 209-577-38811
338 "A" St. Oxnard, CA
93030 805-486-1068
3 Williams Rd. Salinas, CA
93905 831-757-5211
175 Santa Rosa St. San Luis
Obispo, CA 93405 805-544-7994
2050 South Broadway Ste. G
Santa Maria, CA 93454 805-922-4564
1160 N. Dutton Ave., Ste. 105
Santa Rosa, CA 95401 707-528-9941
145 E. Weber Ave. Stockton,
CA 95202 209-946-0605
640 Civic Ctr. Dr. #108, Vista,
CA 92084 760-966-0511
21 Carr St. Watsonville, CA
95076 831-724-2253
CSA San Diego County San Diego County, CA 131 Avocado Ave. El Cajon, CA 92020
619-444-5700 https://www.c4sa.org/
Eden Council of Hope
& Opportunity
Alameda, Contra Costa, and
Monterey Counties, and the Cities
of Alameda, Antioch, Concord,
Hayward, Livermore, Monterey,
Oakland, Pleasanton, Richmond,
Salinas, San Leandro, Seaside, Union
City, and Walnut Creek
770 A Street, Ste. 204,
Hayward, CA 94541 510-581-9380 www.echofairhousing.
org
301 W. 10th St. Antioch, CA
94509 925-732-3919
141 N. Livermore Ave.

Livermore, CA 94550 925-583-5992
1305 Franklin St. #305
Oakland, CA 94612 510-496-0496
570 Pacific St. Monterey, CA
93940 831-566-0824
168 W. Alisal St. Salinas, CA
93901 831-566-0824
California Department of Housing and Community Development 81 Affirmatively Furthering Fair Housing
Name Service Area Address Phone Website
Fair Housing
Advocates of Northern
California
Marin County and Sonoma Counties;
cities of Fairfield and Vallejo
1314 Lincoln Ave. Ste. A San
Rafael, CA 94901
415-457-5025 http://www.
fairhousingnorcal.org/
Fair Housing Council of
Orange County
Orange County, CA 1516 Brookhollw Dr., Ste. A
Santa Ana, CA 92705
714-569-0823 https://www.
fairhousingoc.org/
Fair Housing Council of
Riverside County
Riverside County (all jurisdictions),
Moreno Valley, Corona, Temecula,
Palm Springs, Palm Desert, Perris,
Jurupa Valley, Hemet, Menifee
4164 Brockton Ave. Riverside,
CA 92501
951-682-6581 https://fairhousing.net/
23890 Alessandro Blvd.,
Suite A1 Moreno Valley, Ca
92553
190 W. Amado Rd. Palm
Springs, CA 92262
650 Main St. Corona, CA
92882
Fair Housing Council of
San Diego
San Diego Region 9845 Erma Rd., Ste. 300 San
Diego, CA 92131
619-699-5888 https://fhcsd.com/
Fair Housing Council of
the San Fernando Valley
Los Angeles County, primarily in the
San Fernando Valley
14621 Titus St., Ste. 100
Panorama City, CA 91402
818-373-1185 http://www.fhcsfv.com/
Fair Housing
Foundation
Aliso Viejo, Bellflower, Buena Park,
Compton, Costa Mesa, Downey,
Fullerton, Garden Grove, Garden,
Huntington Beach, Huntington
Park, Irvine, La Habra, Long
Beach, Lynwood, Mission Viejo,
Newport Beach, Norwalk, Orange,
Paramount, San Clemente, South
Gate, Tustin, Westminster
3605 Long Beach Blvd.,
Ste 302 Long Beach, CA
90807
(800) 446 - FAIR
(3247) Deaf or
hard of Hearing
TTY (800)
855-7100
https://fhfca.org/
2300 E Katella Ave., Ste 405
Anaheim, CA 92806
Fair housing Napa
Valley
Napa County, CA 1804 Soscol Avenue, Ste.
203, Napa, CA 94559
707-224-9720 https://napafairhousing.
org/
Fair Housing of Sonoma
County at Petaluma
Petaluma 1500 Petaluma Blvd., South
Ste A Petaluma, CA 94952
707-765-8488 https://petalumapeople.
org/housing/
82 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Name Service Area Address Phone Website
Housing Equity Law
Project
Northern California 180 S. Spruce Ave., Ste. 250
San Francisco, CA 94080
415-434-9400 http://www.
housingequality.org/
Housing Rights Center Los Angeles County, Antelope
Valley, & Ventura County
3255 Wilshire Blvd. 1150 Los
Angeles, CA 90010
213-387-8400 https://www.
housingrightscenter.org/
6320 Van Nuys Blvd., Ste. 311
Van Nuys, CA 91402
Jackie Robinson Center 1020
N. Fair Oaks Ave. Pasadena,
CA 91103
1015 N. Lake Ave., Ste. 100
Pasadena, CA 91104
Inland Fair Housing and
Mediation Board
San Bernardino, Riverside, and
Imperial Counties
1500 S. Haven Ave., Ste. 100
Ontario, CA 91761
800-321-0911 https://www.ifhmb.com/
225 W. Hospitality Ln.,
Ste. #207 San Bernardino, CA
92408
15248 Civic Dr., Ste. #225
Victorville, CA 92392
82921 Indo Blvd. Indio, CA
92201
444 S. 8th St., Ste. #C-1A El
Centro, CA 92243
Legal Aid Society of
San Diego
San Diego County, CA 110 S. Euclid Ave. San Diego,
CA 92114
1-844-449-3500 https://www.lassd.org/
1764 San Diego Ave., Ste.
100 San Diego, CA 92110
216 S. Tremont St.

Oceanside, CA 92054
Project Sentinel Northern California 1490 El Camino Real, Santa Clara, CA 95050
408-470-3739 https://www.housing.
org/
California Department of Housing and Community Development 83 Affirmatively Furthering Fair Housing
Bibliography
AFFH Rule and Assessments
Assembly Bill 686
California State Legislature. September 30, 2018 Bill text for California’s Affirmatively Furthering Fair Housing law. HCD AB 686 Summary of Requirements in Housing Element Law Memorandum (April 2020)
Affirmatively Furthering Fair Housing: California’s New Law (PDF) National Housing Law Project. 2019. 2 pp.

Summarizes Assembly Bill 686, California’s Affirmatively Furthering Fair Housing Law.

Affirmatively Furthering Fair Housing Final Rule (PDF)
Federal Register. 2015. 101 pp.

AFFH Rule Guidebook (PDF)
U.S. Dept of Housing and Urban Development (HUD). 2015. 222 pp.

California Department of Housing and Community Development Final 2020 Analysis of Impediments to Fair Housing Choice (PDF)
Executive Summary. June 2020. 10 pp.

California Department of Housing and Community Development Final 2020 Analysis of Impediments to Fair Housing Choice – Final AI 425 Chapter 13: Impediments to Fair Housing Choice (PDF)
June 2020. 9 pp.

Furthering Fair Housing
National Fair Housing Alliance
Summarizes the Obama administration’s AFFH Rule and provides update on the rule change.

Furthering Fair Housing
Massachusetts Institute of Technology, Department of Urban Studies and Planning. This website provides a clearinghouse of assessments of fair housing completed during the implementation of the HUD AFFH Rule, sample goals, and articles detailing research on implementation of the HUD AFFH Rule and related topics.

Policy Objective: Affirmatively Furthering Fair Housing Local Housing Solutions.

This web article provides suggestions for improving access to opportunity through place-based strategies, mobility strategies (including inclusionary zoning), and specific policies detailed in a housing policy toolkit.

National Housing Law Project (NHLP)
These resources provide context regarding the Obama administration’s implementation of the 2015 federal AFFH rule.
84 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
● AFFH Implementation: An Update for Advocates (PDF) 2016. ● AFFH Glossary (PDF) 2016.
● Assessment of Fair Housing Advocate Participation Checklist (PDF) 2016.

Assessment of Fair Housing Plan (PDF)
City of Los Angeles & The Housing Authority of the City of Los Angeles.

Prepared by Enterprise Community Partners and the Lawyers Committee. Nov. 6, 2017. 434 pp.

NLIHC: Assessment Tools
National Low-Income Housing Coalition.

NLIHC makes available assessment tools from the Obama administration’s AFFH rule. Included are Assessment Tools for Localities and PHAs as well as a Proposed Assessment Tool for States.

PRRAC: Affirmatively Furthering Fair Housing
Poverty & Race Research Action Council (PRRAC) provides multiple samples and tools for conducting an Analysis of Impediments/Assessment to Fair Housing Choice. Also includes background information on AFFH plus comment letters and news stories regarding the termination of the rule.

Preserving Community and Neighborhood Choice (PDF)
HUD. 2020. 57 pp.

This presents HUD’s new rule, which replaces the 2015 Affirmatively Furthering Fair Housing rule, terminated by HUD in 2020.

Federal Guidance
Joint Statement of HUD and DOJ on State and Local Land Use Laws and Practices and the Application of the Fair Housing Act (PDF)
U.S. Dept. of Justice (DOJ). November 10, 2016. 20pp.

Office of General Counsel Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions (PDF) HUD. April 4, 2016. 10 pp.

Joint Statement of HUD and DOJ on Reasonable Accommodations Under the Fair Housing Act (PDF)
HUD. May 17, 2004. 15 pp.

Fair Housing Enforcement – Occupancy Standards; Notice of Statement of Policy (PDF) Federal Register. December 22, 1998. 7 pp.

Office of General Counsel Guidance on Fair Housing Act Protections for Persons with Limited English Proficiency (PDF)
HUD. September 15, 2016. 9 pp.

The guidance clarifies that discrimination against people in housing transactions based on the language they speak can be considered discrimination under the Fair Housing Act.

California Department of Housing and Community Development 85 Affirmatively Furthering Fair Housing
Equal Access in Accordance with an Individual’s Gender Identity in Community Planning and Development Programs; Final Rule
Federal Register. September 21, 2016.

Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity; Final Rule
Federal Register. February 3, 2012.

Olmstead: Community Integration for Everyone
DOJ, Civil Rights Division. Information and Technical Assistance on the Americans with Disabilities Act
This is an overview of the 1999 Supreme Court decision regarding Title II of the Americans with Disabilities Act. The decision requires states to place qualified people with mental disabilities in community settings rather than institutional ones.

Joint Statement of HUD and DOJ on Reasonable Modifications Under the Fair Housing Act (PDF)
HUD. March 5, 2008. 18 pp.

Joint Letter to Local Colleagues (PDF)
U.S. Departments of Education; Transportation; and Housing and Urban Development. June 3, 2016. 3 pp.

This joint letter calls on “local education, transportation, and housing leaders to work together on issues at the intersection of our respective missions in helping to guarantee full access to opportunity across the country.” It lays out the original vision of the AFFH rule as being one of coordination among agencies that provide access to opportunity.

Data & Maps
CalEnviroScreen
California Office of Environmental Health Hazard Assessment.

This mapping tool helps identify California communities that are most affected by several sources of pollution.

California Health Interview Survey
University of California, Los Angeles, Center for Health Policy Research. “The California Health Interview Survey (CHIS) is the nation's largest state health survey and a critical source of data on Californians as well as on the state's various racial and ethnic groups.” California Healthy Places Index
This site maps by zip code the following conditions: economic, education, housing, healthcare access, neighborhood, and clean environment.
86 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
California Neighborhood Change Maps
Urban Displacement Project. Text, data, and color-coded maps. ● Mapping Displacement, Gentrification, and Exclusion in the San Francisco Bay Area Updated in 2018.
● Mapping Neighborhood Change in Southern California: Los Angeles, Orange, and San Diego Counties Updated in 2020 with new layers reflecting COVID-19 vulnerabilities.

Data and Tools for Fair Housing Planning
Urban Institute. July 2020.

Provides downloadable files of Affirmatively Furthering Fair Housing data and guidelines pertaining to the 2015 rule, thus offering assistance for states still pursuing these goals.

Mapping Inequality: Redlining in New Deal America
University of Richmond Digital Scholarship Lab.

Provides historic Home Owners Loan Corporation (HOLC) maps that were color coded to reflect the mortgage security potential of various neighborhoods. These maps and their coding provided a tool for redlining that made it difficult or impossible for people in certain areas to access mortgage financing to become homeowners. The maps “allow and encourage you to grapple with this history of government policies contributing to inequality.”
National Equity Atlas
“America's most detailed report card on racial and economic equity. We equip movement leaders and policymakers with actionable data and strategies to advance racial equity and shared prosperity.” Opportunity Insights: The Economic Tracker
Harvard University.

Data, research, and policy recommendations. “Our mission is to identify barriers to economic opportunity and develop scalable solutions that will empower people throughout the United States to rise out of poverty and achieve better life outcomes.” This data is currently focused on the economic impacts of the COVID-19 pandemic.

TCAC/HCD Opportunity Maps - California
HCD, Treasurer of the State of California | California Tax Credit Allocation Committee, and The Institute of Othering and Belonging, U.C. Berkeley.

PolicyMap
PolicyLink. 2017.

Uses 2010 Census to map a variety of measurements, including demographics, income, and housing.

Race Counts
Race Counts measures the overall performance, amount of racial disparity, and impact by population size of counties and cities in California.

Urban Displacement Project
Articles, reports, and policy briefs; gentrification and displacement maps of several metropolitan areas; UCLA and UC Berkeley case studies of Los Angeles and San Francisco Bay Area neighborhoods.

California Department of Housing and Community Development 87 Affirmatively Furthering Fair Housing
Using Data to Assess Fair Housing and Improve Access to Opportunity: A Guidebook for Community Organizations (PDF)
L. Hendey & M. Cohen. Urban Institute. 2017. 64 pp.

Videos
Affirmatively Furthering Fair Housing in California: Prioritizing Fair Housing Goals in Planning for the State’s Housing Needs
(Opens to page with embedded recording of Webinar. Run time: 1 hour 27 min.) Terner Center for Housing Innovation, U.C. Berkeley. 2020.

Webinar panel discussion featuring Gillian Adams, Arthur Gailes, and Annelise Osterberg, moderated by Terner Center Managing Director Ben Metcalf, with opening remarks by HCD’s Director, Gustavo Velasquez.

Segregated by Design
M. Lopez, Director. Silkwood Studios. 2019. Run time: 17 min. 42 sec.

This animated video, narrated by Richard Rothstein, “examines the forgotten history of how our federal, state and local governments unconstitutionally segregated every major metropolitan area in America through law and policy.”
Books
The Color of Law: A Forgotten History of How Our Government Segregated America R. Rothstein. New York: Liveright Publishing Corp., 2017. 345 pp.

Examines the historical segregation of housing due to governmental policies and real estate and mortgage industry practices. Analyzes the impact this has on neighborhoods today regarding environmental justice and access to quality schools, public transportation, jobs, parks, and other opportunities.

The One-way Street of Integration: Fair Housing and the Pursuit of Racial Justice in American Cities.

E.G. Goetz. Ithaca, NY: Cornell University Press, 2018. 228 pp.

From the bookseller’s website: “Goetz traces the tensions involved in housing integration and policy to show why he doesn't see the solution to racial injustice as the government moving poor and nonwhite people out of their communities.”
Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership Keeanga-Yamahtta Taylor. Chapel Hill: University of North Carolina Press, 2019. 368 pp.

From the publisher’s website: “Race for Profit uncovers how exploitative real estate practices continued well after housing discrimination was banned. The same racist structures and individuals remained intact after redlining’s end, and close relationships between regulators and the industry created incentives to ignore improprieties.”
88 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Segregation by Design: Local Politics and Inequality in American Cities J. Trounstine. Cambridge: Cambridge University Press, 2018. 277 pp.

From the publisher’s website: “Segregation by Design draws on more than 100 years of quantitative and qualitative data from thousands of American cities to explore how local governments generate race and class segregation.”
Research Articles & Reports
Affirmatively Furthering Fair Housing: A Reckoning with Government-Sponsored Segregation in the 21st Century
(Links to page with free PDF download.)
S. Menendian. National Civic Review 106(3): 20-27. 2017.

Affirmatively Furthering Fair Housing for People with Disabilities: Recommendations and Best Practices for Municipalities (PDF)
A. Ballard. Access Living of Metropolitan Chicago. n.d.

This 18-slide presentation defines barriers to housing for people with disabilities and provides solutions.
“Affirmatively Further Fair Housing: California’s Response to a Changing Federal Landscape” R. Williams. Journal of Affordable Housing & Community Development Law 28(3): 387-396. 2019.

America’s Formerly Redlined Neighborhoods Have Changed, and So Must Solutions to Rectify Them
(Links to page with button for free PDF download.)
A.M. Perry & D. Harshbarger. Brookings. 2019. 20 pp.

The population currently living in what were once HOLC “redlined” neighborhoods is majority-BIPOC but not majority-Black, and, contrary to conventional perceptions, Black residents also do not form a plurality in these areas overall.

Antisubordination Planning
(Links to page with full-text download.)
J. Steil. Journal of Planning Education and Research. 2018. “Beyond People Versus Place: A Place-Conscious Framework for Investing in Housing and Neighborhoods”
M.A. Turner. Housing Policy Debate 27(2), 306-314. 2017.

This paper offers five principles for ongoing experimentation and knowledge building: (a) develop citywide strategies that promote both inclusion and redevelopment; (b) anticipate and plan for residential mobility and neighborhood change; (c) connect residents of poor neighborhoods to city and regional opportunities; (d) capitalize on the coming rental housing boom; and (e) use data for continuous learning and accountability.

California Department of Housing and Community Development 89 Affirmatively Furthering Fair Housing
Building a National Narrative of Anti-Displacement Strategies: Key Takeaways From SPARCCC Regions Cash, Anna, et al. Urban Displacement Project. University of California, Berkeley.

This article reviews recent gentrification and displacement literature, outlines the need for a broader neighborhood change narrative that acknowledges the role of cultural and political displacement as well as neighborhood decline in perpetuating diverse impacts in vulnerable communities. The article presents cross-site themes that emerged during site visits in dialogue with recent literature and policy initiatives focused on investment and disinvestment driven displacement, race and displacement, access to resources in communities receiving displaced residents, and the impact of climate change on neighborhoods. Finally, the article draws upon lessons from the sites to offer a national narrative of anti-displacement approaches for action across local, regional, state, and national levels.

Creating Moves to Opportunity: Experimental Evidence on Barriers to Neighborhood Choice (PDF)
P. Bergman, R. Chetty, S. DeLuca, N. Hendren, L. F. Katz, & C. Palmer. 2020. 97 pp.

The authors conclude that redesigning affordable housing policies to provide customized assistance in a housing search could reduce residential segregation and increase upward mobility substantially.

Developing Opportunity: Innovative Models for Strategic Housing Acquisition (PDF) P. Kye, M. Mouton & M. Haberle. Poverty & Race Research Action Council. 2018. 26 pp.

New initiatives provide pathways to mobility and create affordable housing by acquiring existing market-rate housing in areas of high opportunity. Authors detail programs and provide examples from Baltimore, Dallas, Chicago, and King County, Washington.

Disparate Impact and an Antisubordination Approach to Civil Rights and Urban Policy (PDF) J. Steil. Poverty & Race 28(2). 2019.

The Effects of the 1930s HOLC "Redlining" Maps
D. Aaronson, D. Hartley & B. Mazumder. Federal Reserve Bank of Chicago. 2020. 100 pp.

This working paper, begun in 2017 and revised in 2020, examines “the effects of the 1930s-era HOLC ‘redlining’ maps on the long-run trajectories of neighborhoods.” Fair Housing in Jeopardy: Trump Administration Undermines Critical Tools for Achieving Racial Equity (PDF)
National Fair Housing Alliance. 2020. 87 pp.

Annual Fair Housing Trends report.

Forced Relocation and Residential Instability Among Urban Renters.

Desmond, M., Gershenson, C., & B. Kiviat. Social Science Review 89(2). 237-262. 2015.

From the abstract: This article reveals mechanisms of residential mobility among low-income renters, identifies previously undocumented consequences of forced displacement, and develops a more comprehensive model of residential instability and urban inequality. 90 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
The Geography of Inequality: How Land Use Regulation Produces Segregation (PDF) J. Trounstine. American Political Science Review 114(2): 443-455. 2020.

From the abstract: “I provide evidence that more stringent land use regulations are supported by whiter communities and that they preserve racial homogeneity.” Home Equity: A Vision of Housing Security, Health and Opportunity (PDF) Colorado Health Institute. 2019. 56 pp.

This paper explores the interdependence of health outcomes; healthful, quality housing; and access to better schools, jobs, and other opportunities. It offers multiple strategies for change.

HUD’s Affirmatively Furthering Fair Housing Rule: A Contribution and Challenge to Equity Planning for Mixed Income Communities (PDF)
K.M. O’Regan & K. Zimmerman. Case Western Reserve University. 2020. 23 pp.

From the abstract: “This essay explains the framework and theory behind the rule, and how a rule aimed at overcoming racial segregation can support the creation and preservation of mixed-income communities. …We conclude with a discussion of implications for action (or at least attention) with respect to the rule, particularly with respect to mixed-income strategies.” Making Every Neighborhood a Place of Opportunity: 2018 Fair Housing Trends Report (PDF) Shanti Abdein et al. National Fair Housing Alliance. 2018. 100 pp.

From the abstract: “If everyone had access to affordable housing, fair credit, a good school, healthy food, a decent job, green space, and quality health care, how would our nation and our economy look then? How do we ensure that future generations of all backgrounds live in neighborhoods rich with opportunity? Fair housing.”
Neighborhoods for All: Expanding Housing Opportunity in Seattle’s Single-Family Zones (PDF)
City of Seattle, Planning Commission. 2018. 52 pp.

This white paper presents Seattle’s strategies for increasing access to affordable housing, transportation, and jobs for those living outside of the urban core.

A Place-Conscious Approach Can Strengthen Integrated Strategies in Poor Neighborhoods M.A. Turner. Brookings. 2015. 7 pp.

This short article is the forerunner of Turner’s Housing Policy Debate piece, above.

Place and Opportunity: Using Federal Fair Housing Data to Examine Opportunity across US Regions and Populations (PDF)
R. Gourevitch, S. Greene, and R. Pendall. Urban Institute. 2018. 24 pp.

This research brief highlights new connections between place and access to opportunity across regions and populations. The authors analyze data on neighborhood-level exposure to opportunity that the U.S. Department of Housing and Urban Development originally released in 2015 to help local communities reduce segregation and comply with the Fair Housing Act.

Pricing Roads, Advancing Equity (PDF)
TransForm. 2019. 64 pp.

Fair housing and access to opportunity are advanced when efficient, affordable transportation is available.

California Department of Housing and Community Development 91 Affirmatively Furthering Fair Housing
Promoting Opportunity through Equitable Transit-Oriented Development (eTOD): Navigating Federal Transportation Policy (PDF)
A. Abu-Khalaf. Enterprise Community Partners. 2018. 28 pp.

This report provides stakeholders involved in achieving eTOD guidance on understanding and benefitting from federal transportation policies and programs.

Promoting Opportunity through Equitable Transit-Oriented Development (eTOD): Barriers to Success and Best Practices for Implementation
(Links to page where full-text article is available via the Open Resource button.) M. Spotts. Enterprise Community Partners. 2015. 74 pp.

This report demonstrates that numerous barriers inhibit low- and moderate-income families’ ability to find housing in communities with access to robust, multi-modal transportation options. The report also makes recommendations for overcoming those barriers and highlights numerous best practices from regions across the U.S.

Promoting Opportunity through Equitable Transit-Oriented Development (eTOD): Making the Case
(Links to page where full-text article is available via the Open Resource button.) J. Hersey & M. Spotts. Enterprise Community Partners. 2015. 21 pp.

Equitable transit-oriented development (eTOD) is one tool to ensure that high-opportunity neighborhoods are inclusive despite the property value increases that often result from such investments.

Racial Disparities in Home Appreciation: Implications of the Racially Segmented Housing Market for African Americans’ Equity Building and the Enforcement of Fair Housing Policies M. Zonta. Center for American Progress. 2019. 39 pp.
“Segregation and racial disparities in home appreciation put African Americans at a disadvantage in their ability to build equity and accumulate wealth.”
Removing Barriers to Accessing High-Productivity Places (PDF) D. Shoag. The Hamilton Project: Policy Proposal 2019-02. 2019. 30 pp.

Workers without a college education are moving away from the places that offer them the highest wages and their children the best later-life outcomes. The author offers strategies that policymakers at various levels of government can use to combat this relatively new problem, including case studies of cities that have successfully expanded access at the local level.

Segregation and Neighborhood Health
J. Richardson et al. NCRC. 2020. 50 pp.
“This report examined [historically] redlined areas and how they are associated with adverse public health outcomes for a range of diseases and conditions that make people particularly susceptible to the worst effects of COVID-19.”
92 California Department of Housing and Community Development Affirmatively Furthering Fair Housing
Supply Skepticism: Housing Supply and Affordability
Been, V., Ingrid, E., & K. O’Regan. Housing Policy Debate 29(1), 25-40. 2019.

From the abstract: “Growing numbers of affordable housing advocates and community members are questioning the premise that increasing the supply of market-rate housing will result in housing that is more affordable. This article is meant to bridge the divide, addressing each of the key arguments supply skeptics make and reviewing what research has shown about housing supply and its effect on affordability.”
“Survival of the Fairest: Examining HUD Reviews of Assessments of Fair Housing” J.P. Steil & N. Kelly. Housing Policy Debate 29(5), 736-751. 2019.

From the abstract: “Our analysis shows that HUD engaged in detailed reviews of municipalities’ Assessments of Fair Housing and provided constructive feedback. The most common issues with which municipalities struggled were setting realistic goals that would actually advance fair housing and creating measurable metrics and milestones to gauge progress.” What Would It Take to Ensure Quality, Affordable Housing for All in Communities of Opportunity? (PDF) M.A. Turner, S. Greene, C. P. Scally, K. Reynolds & J. Choi. Urban Institute. 2019. 40 pp.

If everyone could afford quality housing, and every neighborhood offered a diversity of housing options, people up and down the income ladder could enjoy housing security and build wealth through homeownership. Achieving this calls for bold action at all levels of government and in the private and nonprofit sectors.

Housing & Community Development
2020 W. El Camino Avenue | Sacramento, CA 95833
Phone: 916-743-2244
State Housing and Community Development Department | Housing Policy Division City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-507 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Proclamation of Earth Day/Arbor Day

COUNCIL PILLAR
Promote Sustainability and Environmental Protection

BACKGROUND
The Arbor Day Foundation is a nonprofit conservation and education organization with a mission to inspire people to plant, celebrate and nurture trees. It was founded in 1972 to celebrate the 100th anniversary of the first Arbor Day. Through its Tree City USA program, 3,600 cities and towns are honored as Tree City USA communities for their commitment to planting and nurturing trees. For those communities that demonstrate higher levels of tree care and environmental stewardship, the Growth Award was created. This award recognizes innovative programs and projects as well as increased commitment of resources for urban forestry.

DISCUSSION
Each year on Earth Day and Arbor Day, people across the country demonstrate support for environmental protection and reflect on the important role that trees play in our world. Trees help clean our air, reduce the effects of climate change, provide habitat for wildlife, and help save energy.

Towns and cities that have received their Tree City USA recognition take pride in this distinction and the people who live there enjoy the valuable benefits of having a greener, healthier community. Since the inception of the Municipal Tree Program in 1960, Santa Clara has maintained a commitment to manage, expand, and preserve trees in our urban forest. 2022 marks the 35th year that the City of Santa Clara has been designated a Tree City USA community! In addition, through various annual activities aimed at supporting our sustainable municipal forestry program, Santa Clara has received the Growth Award 21 times.

This April marks the 52nd annual Earth Day and 150th anniversary of Arbor Day. Throughout the month of April, the City has a variety of virtual events, workshops and youth activities aimed at increasing environmental awareness efforts and celebrating our earth and our community’s commitment to protecting it. Residents can participate in the virtual Earth Day and Arbor Day activities by visiting SantaClaraCA.gov/EarthAndArborDay. <https://www.santaclaraca.gov/recreationcommunity/events/seasonal-events/arbor-day-earth-day-celebration> In honor of Earth Day and Arbor Day, the Mayor has signed a City Proclamation, proclaiming April 28, 2022, as Earth Day/Arbor Day in Santa Clara.

ENVIRONMENTAL REVIEW
This is an informational report only and no action is being taken by the City Council and no City of Santa Clara Page 1 of 2 Printed on 4/14/2022
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22-507 Agenda Date: 4/19/2022
environmental review under the California Environmental Quality Act (“CEQA”) is required.

FISCAL IMPACT
There is no fiscal impact other than staff time for preparing this report.

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-450 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Action on February 1, 2022 City Council Special Meeting Minutes

COUNCIL PILLAR
Enhance Community Engagement and Promote Transparency

RECOMMENDATION
Approve the February 1, 2022 City Council Special Meeting Minutes.

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City of Santa Clara
Meeting Minutes
City Council Special Meeting
Draft
02/01/2022 4:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9042, the City Council meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment (now available during the meeting) • Via email to [email protected]
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of California Government Code §54956 (“The Brown Act”) and Section 708 of the Santa Clara City Charter, the Mayor calls for a Special Meeting of the Santa Clara City Council to commence and convene on February 1, 2022 at 4:00 p.m. for a Special Meeting to be held virtually, to consider the following matter(s) and to potentially take action with respect to them.
4:00 PM CLOSED SESSION
Call to Order
Mayor Gillmor called the meeting to order at 4:03 PM.

City of Santa Clara Page 1 Printed on 03/27/2022
City Council Special Meeting Meeting Minutes 02/01/2022 Pledge of Allegiance and Statement of Values
Council recited the Pledge of Allegiance.

Councilmember Chahal recited the Statement of Values.

Assistant City Clerk Pimentel recited the Statement of Behavioral Standards.

Roll Call
Councilmember Kathy Watanabe, Councilmember Raj Chahal, Councilmember Karen Hardy, Councilmember Kevin Park, Vice Mayor Suds Jain, Councilmember Anthony Becker, and Mayor Lisa M.

Gillmor

Present: 7 -
Public Comment
None.

1.A 22-200 Conference with Legal Counsel-Existing Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(1)
Forty Niners SC Stadium Company LLC v. City of Santa Clara Santa Clara County Superior Court Case No. 18CV326430

1.B 22-196 Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: Deanna J. Santana, City Manager (or designee) Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association) City of Santa Clara Page 2 Printed on 03/27/2022
City Council Special Meeting Meeting Minutes 02/01/2022 Convene to Closed Session
Council convened to Closed Session at 4:07 PM and reconvened to Open Session at 6:11 PM.

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS
Chief Assistant City Attorney Reuter reported that there was no reportable action from Closed Session.

PUBLIC PRESENTATIONS
None.

CONSENT ITEMS PULLED FOR DISCUSSION

REPORTS OF MEMBERS AND SPECIAL COMMITTEES

ADJOURNMENT
Councilmember Becker reported that himself along with Chief Assistant City Attorney Reuter and Councilmember Hardy had met with resident Travis Flora on December 21, 2021 at 6:00 PM and will be discussing some of the issues at the Council Priority Setting Session.

Mayor Gillmor wished everyone a Happy Chinese Lunar New Year.

The meeting was adjourned at 6:14 PM.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to adjourn the meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor
7 -
The next regular scheduled meeting is on Tuesday, February 8, 2022.

City of Santa Clara Page 3 Printed on 03/27/2022
City Council Special Meeting Meeting Minutes 02/01/2022 The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

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MEETING DISCLOSURES
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-17 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Board, Commissions and Committee Minutes

COUNCIL PILLAR
Enhance Community Engagement and Transparency

RECOMMENDATION
Note and file the Minutes of:

Cultural Commission - March 7, 2022
Board of Library Trustees - March 7, 2022
Youth Commission - March 8, 2022
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powered by Legistar™
City of Santa Clara
Meeting Minutes
Cultural Commission
Draft
03/07/2022 7:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9051, the Cultural Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Via Zoom:
https://santaclaraca.zoom.us/j/98272283531
Webinar ID: 982 7228 3531
Or join by phone: 1-669-900-6833

CALL TO ORDER AND ROLL CALL
The meeting was called to order by chair von Huene at 7:03 p.m.

Commissioner Siddarth Sundaram, Commissioner Louis Samara, Chair Debra von Huene, Vice Chair Candida Diaz, Commissioner Jonathan Marinaro, Commissioner Paul McNamara, and
Commissioner Jennifer Vega
Present 7 -
Commissioner Samara joined the meeting at 7:04 p.m.

CONSENT CALENDAR

1. 22-319 Cultural Commission Regular Meeting Minutes of February 7, 2022 Recommendation: Approve the Cultural Commission Regular Meeting Minutes of February 7, 2022
A motion was made by Vice Chair Diaz , seconded by
Commissioner Samara that this item be approved. The motion passed with the following vote:

Aye: Commissioner Sundaram, Commissioner Samara, Chair von Huene, Vice Chair Diaz, Commissioner Marinaro, and Commissioner Vega 6 -

Absent: 1 - Commissioner McNamara
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PUBLIC PRESENTATIONS
Nancy Biagini, Chair of the Planning Commission and member of the public, stated the Cultural Commission does a terrific job.

GENERAL BUSINESS
Commissioner McNamara joined the meeting at 7:10 p.m.

2. 22-125 Update on the Inclusion of a Potential Art Center in a Development Proposal within the Patrick Henry Drive Specific Plan Area Recommendation: No action, other than to note and file the report.

Recreation Manager, Kim Castro provided an update on the Potential Public Art Center. The facility would host classrooms, studios and galleries as a programmable space. She wanted the Commission to be aware of this project. No action is required of the commission.

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3. 22-320 Discussion of Cultural Commission Work Plan Goals and Activities for FY 2021/22 and FY 2022/23
Recommendation: Provide updates to Cultural Commission Work Plan goals and activities for FY 2021/22 and FY 2022/23.

Commissioners reported the following updates to the Work Plan goals and activities. The Work Plan is updated to reflect the reports on each goal:

Goal 1- Host and enhance multicultural events to encourage and acquaint Santa Clara residents with Cultural diversity.

The line up has been established for the Summer Concerts:

July 22 at Live Oak Park-The Hitmen
July 29 at Central Park-Band to be determined
Aug. 12 at Central Park-The Megatones
Oct. 7 at Central Park-Latin Heat
Aug. 5 Street Dance at Franklin Mall-Pop Fiction
The Spring/Summer Camp Activity Guide features a Special Events page which features the Summer Concert and Street Dance promotion. This publication will be mailed to all residents and is available online.

Events will be advertised on Social Media including: facebook, instagram, nextdoor and twitter.

Mission College emailed Chair von Huene and they discussed early Sept. for an event and the Cultural Commission would assist with possible PR, permits and band selection. Additional information to follow next month. May want to consider next year to add funds for this purpose.

Goal 2-Develop and encourage interactive, art opportunities to provide temporary, performing, cultural, and public art in the City.

Surviving Covid-Agreements are waiting to need to be signed by the City Attorney and then once returned to the artists, the artwork would be displayed virtually and voting would occur online. Entries include: Painting, sculptures, rap, poetry, interpretive dance and more.

The Cultural commission received an email from Laura Kingsley who has a potential art installation on the Santa Clara University Campus in the Art and Art History Building. Chair von Huene will meet with Laura about her needs with the project unveiling. She will report back next month.

Call for artists for Utility Box Art Project was scheduled for April 4. More information to follow.

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Goal 3-Raise visibility of commemorative months.

Chair von Huene thanked Commissioner Vega for posting the coloring book on March 1.

Commissioner Marinaro and Commissioner Vega will meet with groups regarding possible partnerships.

Goal 4-Enhance communication and media strategy to increase community awareness of the Cultural Commission.

Recreation Manager Castro will provide the new Google account and password to all commissioners.

Commissioner Vega wants to change the Commemorative months to Events so the plan includes all events. Wants to add procedures to the objectives in May.

Commissioners McNamara and Marinaro want to meet with Recreation Manager Castro to get a list of marketing tools. Commissioner McNamara apologized for being late to the meeting, as the link was not working correctly.

Chair von Huene reported she would like to get on the agenda for a City Council meeting in May or June to highlight the upcoming concerts for a special presentation.

Goal 5-Prepare for Citywide Arts Master Plan Process.

The Master Plan is on hold. A new President from Santa Clara University has been appointed. Chair von Huene is unsure if there will be a partnership established by August.

Name badges and shirts will be ordered for all commissioners.

STAFF REPORT
Recreation Manager Castro mentioned the Spring/Summer Camp activity Guide and March newsletter is out. The Department is following the new mask and school district guidelines and addressing budgetary adjustments.

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COMMISSIONERS REPORT
Commissioner Samara is attending a wedding in Vermont in July. He mentioned the Triton is hosting a tequila tasting March 11 from 6-8 p.m.

Cost is $70 for members and $80 for the public.

Commissioner Marinaro attended "Carmen" at Opera San Jose. He stated he thoroughly enjoyed it. He stated Carmen ended but West Side Story is scheduled for April 16-May 1. He has season tickets.

Commissioner McNamara has been watching Shakespeare plays online.

This summer there will be plays to see in person. He mentioned in New York Times-a close read. Very cool software. Interesting artwork. He was asking if the city was doing anything to honor Ukraine.

ADJOURNMENT
A motion was made by Commissioner McNamara, seconded by Commissioner Marinaro that the meeting be adjourned at 7:59 p.m.

Aye: Commissioner Sundaram, Commissioner Samara, Chair von Huene, Vice Chair Diaz, Commissioner Marinaro, Commissioner McNamara, and Commissioner Vega
7 -

MEETING DISCLOSURES
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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

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City of Santa Clara
Meeting Minutes
Board of Library Trustees
Draft
03/07/2022 6:00 PM Virtual Meeting
Pursuant to the Government Code section 54953(e) and City of Santa Clara Resolution 22-9051, the Board of Library Trustees meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca-gov.zoom.us/j/97255938995
Webinar ID: 972 5593 8995 or
o Phone: 1(669) 900-6833
PUBLIC PARTICIPATION IN ZOOM WEBINAR: Please follow the guidelines below when participating in a Zoom Webinar:
- The meeting will be recorded so you must choose 'continue' to accept and stay in the meeting. - If there is an option to change the phone number to your name when you enter the meeting, please do so as your name will be visible online and will be used to notify you that it is your turn to speak. - Mute all other audio before speaking. Using multiple devices can cause an audio feedback. - Use the raise your hand feature in Zoom when you would like to speak on an item and lower when finished speaking. Press *9 to raise your hand if you are calling in by phone only. - Identify yourself by name before speaking on an item. - Unmute when called on to speak and mute when done speaking. If there is background noise coming from a participant, they will be muted by the host. Press *6 if you are participating by phone to unmute. - If you no longer wish to stay in the meeting once your item has been heard, please exit the meeting.

CALL TO ORDER AND ROLL CALL
Vice Chair Evans called the meeting to order at 6:02 pm. Trustee Tryforos made a motion, seconded by Trustee Hintermeister, to excuse Trustee Broughman from the meeting. The motion passed 4-0.

Trustee Debbie Tryforos, Trustee Jan Hintermeister, Chair Stephen Ricossa, and Vice Chair Jonathon Evans
Present 4 -
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Excused 1 - Trustee Leonne Broughman

CONSENT CALENDAR
1 22-368 Action on the Meeting Minutes of February 7, 2022 Recommendation: Approve meeting minutes of February 7, 2022 A motion was made by Trustee Tryforos, seconded by Chair Ricossa, to approve the meeting minutes of February 7, 2022. The motion passed 4-0.

Aye: Trustee Tryforos, Trustee Hintermeister, Chair Ricossa, and Vice Chair Evans
4 -
Excused: 1 - Trustee Broughman

PUBLIC PRESENTATIONS

GENERAL BUSINESS
2 22-369
Executive Director of the Santa Clara City Library Foundation and Friends, JoAnn Davis, provided a brief report on the recent and upcoming activities of the Foundation and Friends.

Board Report on February 8, 2022 City Council Priority Setting Session Recommendation: No recommendation for this item
City Librarian Patty Wong provided a brief summary of the City Council Priority Setting Session on February 8, 2022.

Chair Ricossa thanked all members of the Board of Library Trustees (the Board) for their work on crafting an advocacy message to be used during the meeting. City Librarian Wong extended additional thanks to Trustee Tryforos for providing the original letter the work was based upon. Chair Ricossa discussed his submission of an email to be read into the record.

City Librarian Wong spoke of how the comments provided by the Board were well-received by City Council.

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3 22-370 Review of Board of Library Trustees’ Work Plan Recommendation: Review, update, and approve the attached workplan dated 3-7-2022.

City Librarian Wong reviewed the Board's updated work plan and discussed any new information associated with the items.

The City Council will be given the opportunity to adopt the Patrick Henry Specific Plan on March 22, 2022.

City Librarian Wong discussed upcoming grants that Library staff and the City are pursuing.

A community room fee study is currently moving through other City commissions. City Librarian Wong is advocating for the Board to review and weigh in on the study during this process. Trustee Hintermeister gave background on the lack of Board inclusion during initial phase of the study and would like an opportunity for the Board to provide input. Vice Chair Evans voiced interest in finding a balanced fee structure that was not too cost prohibitive, but not so low that the system will be misused.

Trustee Hintermeister inquired when the Library would be able to expand hours beyond current schedule. City Librarian Wong discussed the hiring considerations that are affecting when more hours can be provided.

A motion was made by Chair Ricossa, seconded by Trustee Hintermeister, that staff request the community room fee study be brought to the Board of Library Trustees for input. The motion passed 4-0.
4 22-381 Discussion on Next Steps for Library Fine Free Policy Recommendation: This item is for informational purposes, no recommendation.

City Librarian Wong described how Library will proceed in recommending a fine free policy to the City. She noted the need to expunge pre-existing overdue fines from the system at the same time of policy implementation. The Library has been asked to bring this forward to City Council at a future time when it will be received successfully.

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5 22-379 Board Development and Engagement
Recommendation: This item is informational only, no recommendation City Librarian Wong informed the Board of two upcoming trainings and conferences: Serving with a Purpose in Ontario, CA on May 19, 2022 and the California Library Association's annual conference in Sacramento, CA from June 2, 2022 through June 4, 2022.

Trustee Hintermeister has asked that staff who present at conferences do an encore presentation to the Board at a future meeting.

City Librarian Wong discussed the Board's use of professional journals and some of the current topics that are receiving coverage.

STAFF REPORT
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6 22-382 Report on Library Plans for One-Time Use Money Realized Through Salary Savings During Fiscal Year 2021/22
Recommendation: This item is informational only, no recommendation City Librarian Wong presented an overview of the salary savings accumulated by the Library in fiscal year 2021/22 and the potential uses and stipulations on these one-time use funds. Possible usage includes:
- Strategic and Facilities Master Plan
- Technology updates and replacements
- Additional materials budget for key collections
- Facilities maintenance projects
- Staff development, training, and institutional memberships - Library program support
City approval needed before use of salary savings. Expenditure of salary savings will need to occur before the fiscal deadline of June 30, 2022.

Trustee Hintermeister inquired if the Board would be involved in the strategic plan process. City Librarian Wong discussed possible ways the Board's input and engagement would be included.

Vice Chair Evans inquired how salary savings would be used to support the purchase of ebooks and eresources. Assistant City Librarian Goyal spoke of how the Library was using funds to provide resources that can be used by local students and an expansion of ematerials in international languages.

Board of Library Trustees Meeting Minutes 03/07/2022
7 22-380 City Librarian Report on Library Programs and Activities Recommendation: Note and file monthly report on Library activities.

City Librarian Wong informed the Board of recent and upcoming Library and City activities.

The Board discussed the potential City Council adoption of the Patrick Henry Specific Plan on March 22, 2022.

TRUSTEES REPORT
Vice Chair Evans praised the recent online trivia night held by the Library.

ADJOURNMENT
A motion was made by Trustee Tryforos, seconded by Chair Ricossa, to adjourn the meeting. The motion passed 4-0.

City of Santa Clara Page 5 Printed on 03/29/2022

Aye: Member Tryforos, Member Hintermeister, Chair Ricossa, and Vice Chair Evans
4 -
Excused: 1 - Member Broughman

MEETING DISCLOSURES
Board of Library Trustees Meeting Minutes 03/07/2022
The time limit within which to commence any lawsuit or legal challenge to any quasiadjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any
quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

City of Santa Clara Page 6 Printed on 03/29/2022
City of Santa Clara
Meeting Minutes
Youth Commission
Draft
03/08/2022 6:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9051, the Youth Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join. https://santaclaraca.zoom.us/j/84220118204 Or One tap mobile:
+16699006833,,84220118204# US (San Jose)

CALL TO ORDER AND ROLL CALL
The meeting was called to order at 6:07 p.m.

Commissioner Aarav Gupta , Commissioner Ahmad Ismail,
Commissioner Hiranya Parekh, Commissioner Jasmine Kelly-Tanti, Commissioner Kaitlyn Butcher, Commissioner Khadeejah Khan, Commissioner Malia Martin, Commissioner Mitali Gaidhani, Commissioner Mitchell Blanda, Commissioner Rajvi Khanjan Shroff, Commissioner Riya Mehta, and Commissioner Sarah Zuo
Present 12 -
Commissioner Palak Parikh , Commissioner Rishith Gopisetti, and Commissioner Samarth Suresh
Absent 3 -

CONSENT CALENDAR

1.A 22-312 Youth Commission Minutes of February 8, 2022 Recommendation: Approve the Youth Commission Meeting Minutes of February 8, 2022.

A motion was made by Commissioner Shroff, seconded by
Commissioner Blanda, that this item be recommended for approval.

The motion carried by the following vote:

Aye: Commissioner Gupta, Commissioner Ismail, Commissioner Parekh, Commissioner Kelly-Tanti, Commissioner Butcher, Commissioner Khan, Commissioner Martin, Commissioner Gaidhani, Commissioner Blanda, Commissioner Shroff, Commissioner Mehta, and
Commissioner Zuo
12 -
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Absent: Commissioner Parikh, Commissioner Gopisetti, and Commissioner Suresh
3 -

PUBLIC PRESENTATIONS
None

GENERAL BUSINESS

2. 22-313 Youth Commission Committee Reports on Work Plan Goals for FY2021/22 Youth Commission Committee Reports on Work Plan Goals for FY2021/22 The Youth Commission's FY2021/22 work plan will include themes of community building, youth empowerment, and youth outreach. Each theme will have a committee comprised of YOuth Commissioners to plan activities to deliver to the community.

Community Building Committee: Continued to outreach to local school clubs for potential video segments of performances. The next committee meeting will be held on Tuesday, March 15 at 6:30 p.m.

Youth Empowerment Committee: Continued to develop talking points and format for potential podcast to be distributed on Apple Podcasts Connect.

The next committee meeting will be held on Friday, March 18 at 6:00 p.m.

Youth Outreach Committee: Met on Tuesday, March 1 to create the Packages of Gratitude for local teachers. Donated items included chocolate chip cookies from Choc Cookies, variety of donuts from Stan's Donut Shop, succulents from Home Depot, and seed packs from the Parks & Recreation community garden program. Forty packages were assembled to be distributed to teachers. The next committee meeting will be held on Thursday, March 17 at 5:00 p.m.

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STAFF REPORT
Jon Kawada, Staff Liaison: Reminded Commissioners that the deadline to submit 2022/23 term applications is on Monday, March 14, 2022. Youth Commission will not be attending the YAC Attack conference, due to insufficient numbers of Commissioners available to attend. Interested Commissioners were encouraged to attend on their own if interested.

Commissioners who attended the Cost Recovery Policy joint study session on Wednesday, March 2 were thanked. The survey and presentation information will be sent to all Commissioners when available.

Commissioners Butcher, Martin, Shroff, and Zuo agreed to volunteer at the Breakfast with the Bunny event on Saturday, April 9.

Gayle Ichiho, Recreation Supervisor: Shared that the Parks & Recreation spring/summer activity guide is now available. A summer camp fair, along with Sunset Cinema afterwards, will be occurring on April 22 at Reed & Grant Sports Park. Various vendors will be on-hand for community members to learn more about summer recreation opportunities.

COMMISSIONERS REPORT
Commissioners Blanda, Ismail, Mehta, and Shroff and Alternate Liang attended the virtual joint study session on the Cost Recovery Policy Development. Commissioners stated it was a positive experience and that the presentation was informative and easy to understand. Visit www.SantaClaraCA.gov/ParkProjects for more information.

ADJOURNMENT
A motion was made by Commissioner Martin, seconded by
Commissioner Blanda, that this meeting be adjourned at 6:37 p.m.

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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-410 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Action on Monthly Financial Status and Investment Report for January 2022 and Approve the Related Budget Amendments

COUNCIL PILLAR
Enhance Community Engagement and Transparency

BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the monthly financial report and monthly investment report for January 2022 are submitted for your information. The financial review as of January 31, 2022 provides a year-to-date financial update to the City Council for the current fiscal year. The analysis of the revenues collected and all expenditures measures the level of adherence to the established resource allocation plan and allows the City to monitor and project revenues and expenditures throughout the year.

The Adopted Budget incorporates the estimated revenues and planned expenditures for all funds.

The attached Financial Status Report provides the budget to actual revenue and expenditure summaries for the General Fund, Special Revenue Funds and Enterprise Operating Funds, as well as expenditure summary for Capital Improvement Funds and Fund Reserve Balances. Any significant variances are explained in the report.

In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthly activity and annual summary of donations received by department. Although the requirement of the policy is to report quarterly, in its ongoing effort to streamline reporting, the City will include this information monthly in the financial status report.

DISCUSSION
Monthly Financial Status Report (Attachment 1)
The attached report summarizes the City’s financial performance as of January 31, 2022. Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds.

Attachment 1 shows that General Fund revenues at 48.5% of the budget through January 2022.

While revenues are tracking slightly below the budgeted estimate, collections are higher when compared to last fiscal year (excluding transfers and various permits and charges for services that are now deposited into the new Building Development Services Fund). Concerns remain regarding longer term impacts of COVID-19 on City revenues, particularly Transient Occupancy Tax collections.

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22-410 Agenda Date: 4/19/2022
As shown in Attachment 1, General Fund departmental expenditures were at 58.3% of budget through January 2022. It should be noted that as approved as part of the FY 2020/21 Budget YearEnd Report, $11.2 million of the Fire Department and $14.7 million of the Police Department budgets were shifted to the newly established American Rescue Plan Act (ARPA) Fund. Once actual charges for public safety have been shifted over to the ARPA Fund, expenditure tracking will be below par in the General Fund. Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings to partially offset the drop in revenues associated with COVID19. These measures include a hiring freeze and controls around overtime, as-needed staff, marketing, travel, technology, and vehicle purchases. Expenditure savings are expected by year-end.

As shown in Attachment 1, total revenues through January 2022 for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and Water Recycling) were at 52.9% of the budget while total expenses were at 54.2% of the budget.

In the month of January, the City received $50 in donations, for total donations of $89,640.

Economic conditions have improved significantly since the start of the pandemic, with many indicators close to pre-pandemic levels. On a national level, the unemployment rate slightly decreased from 4.0% in January 2022 to 3.8% in February 2022. This rate was well below the record setting high of 14.7% in April 2020, but above the pre-pandemic unemployment rate of 3.5%. The number of unemployed persons dropped slightly from 6.5 million in January 2022 to 6.3 million in February 2022. This unemployment figure continues to remain above the pre-pandemic level of 5.7 million. In 2021, the Gross Domestic Product (GDP) increased by 5.7%, in contrast to the 3.4% decrease in 2020. While GDP has now surpassed the pre-COVID peak in the second quarter 2021, it has not yet reached the pre-pandemic trend. Per the March 2022 UCLA Anderson Forecast, GDP is expected to reach the pre-COVID trend by mid-2022. The March 2022 UCLA Forecast also assumes continued economic growth; however, there is considerable uncertainty. Major risk factors include the future course of the pandemic as well as the impacts of the war between Russia and Ukraine.

Improvement continues at the State and local level. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate remained at 5.8% in January 2022. California has now regained 2.26 million jobs, or 82% of the 2.71 million jobs lost due to COVID-19 in March and April 2020. The unemployment rate in this region continues to outperform the State and the nation. The unadjusted unemployment rate in the San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.4% in January 2022, up from a revised 2.9% in December 2021. This reflects a drop from the January 2021 level of 6.2% but is higher than the pre-pandemic February 2020 level of 2.6%.

Staff will continue to closely monitor the General Fund revenues and the City’s overall financial performance as the fiscal year progresses.

Monthly Investment Report (Attachment 2)
All securities held by the City of Santa Clara as of January 31, 2022 were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies.

There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

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22-410 Agenda Date: 4/19/2022
The City’s investment strategy for January 2022 was to invest funds not required to meet current obligations in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years form the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and with a reasonable portfolio return of 1.19% in January.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

FISCAL IMPACT
From time to time, adjustments to the budget are required to reflect new information, align budgets with actual revenues and expenses, and correct for inadvertent errors. As detailed in Attachment 3, a budget amendment is recommended in the General Fund to recognize anticipated project savings from the Storm Drain Capital Fund and allocate these funds to the Capital Projects Reserve.

Additionally, actions are included to recognize $1.8 million for wildland deployment reimbursements to the Fire Department and to use these funds to support fire operations and to partially fund the purchase of a fire engine as reflected in the Vehicle Replacement Fund. An action is also included in the General Fund to increase the transfer from the Parks and Recreation Capital Fund, reflecting a partial repayment of the loan for the Reed Street - Grant Street Sports Park project. A transfer to the Fire Department Operating Grant Trust Fund is included to reflect a City match required for a grant received by the City’s Fire Department. In the Fire Department Operating Grant Trust Fund, actions are recommended to adjust the revenue estimates and appropriations for three grants to align to actual receipt of grant funding and city matching funds. In the Housing and Urban Development Fund, an action is recommended to recognize and appropriate grant funding. In the Convention Center Capital Fund, an action is recommended to appropriate additional funds from fund balance to the Santa Clara Convention Center Condition Assessment Repair project. Attachment 3 also includes recommendations to decrease a revenue estimate and corresponding appropriation in the Clean Energy and Carbon Reduction project in the Electric Utility Capital Fund and to reallocate funding from the Pedestrian and Bicycle Enhancement Facilities project to the Santa Clara School Access Improvement project in the Streets and Highways Capital Fund.

City of Santa Clara Page 3 of 4 Printed on 4/14/2022
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FY 2021122 Budget Amendments
Fund Source of Funds Use of Funds
General Fund $2 492 983 $2 49Q,983
Convention Center Capital! Fund $0 $0
Electric Utility Capital Fund ,($252 669) ($252 669)
Fire OperatinQ Grant. Trust Fund ($83 856) ($83 856)
HousinQ and Urban Development Fund $80205 $80,205
Parks and Recreation Capital Fund $0 $0
Storm Drain Caoitall Fund $0 $0
Streets and Hiqhwavs Capital Fund $0 $0
Vehicle Replacement Fund $710,000 $710,000
Tota.I Net Budaet Chana:e $2.946 663 $2.946,663
22-410 Agenda Date: 4/19/2022

COORDINATION
This report has been coordinated with the City Attorney’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION
Note and file the Monthly Financial Status and Investment Reports for January 2022 as presented and Approve Related Budget Amendments in various funds requiring five affirmative votes and consistent with City Charter Section 1305, “At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget,” as noted for each individual item in Attachment 3.

Reviewed by: Kenn Lee, Director of Finance
Approved by: Office of the City Manager

ATTACHMENTS

1. Monthly Financial Status Report January 2022

2. Monthly Investment Report January 2022

3. FY 2021/22 Budget Amendments
City of Santa Clara Page 4 of 4 Printed on 4/14/2022
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MONTHLY FINANCIAL STATUS REPORT
January 2022
City of
Santa Clara
The Center of What's Possible
1 City of Santa Clara
Financial Status Report as of January 31, 2022
This report summarizes the City’s financial performance for the month ended January 31, 2022.

Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.

General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2021/22 was $289.3 million. The budget for revenues and expenditures was amended to $269.5 million to reflect carryover appropriations from fiscal year 2020/21 and various budget amendments approved by the City Council through January 2022.

Halfway through the fiscal year, General Fund revenues are currently tracking slightly below estimated levels. General Fund expenditures are tracking below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.

3.5%. In February, the number of unemployed persons decreased from 6.5 million in January 2022 to

6.3 million. This unemployment figure remains slightly above the pre-pandemic level of 5.7 million. 1 In 2021, the Gross Domestic Product (GDP) increased by 5.7%, in contrast to the 3.4% decrease in 2020. The increase in 2021 reflected growth across all the major subcomponents, led by personal 1 https://www.bls.gov/news.release/pdf/empsit.pdf
Chan 1 •. Unamployrrient rate, saasonall~ adjUsStedi,
l"e'brua:ry 2(1,20 - February 2022
Percent

16.0 14.0

12.0 10.0

8.0 6.0

4.0 ,.
'
_.j
\
' ~ .........__ -
- -- -~
Chan 2~ Nonfarm payroll amployman-t, seasonally adjusmd, Fa.bruary 2020, - l"e'brua:ry 20:22
Thou88Dlf9
160,0CICI
Hi5,CIOCI
HlCl,CICIO
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-

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Financial Status Report as of January 31, 2022
consumption expenditures, non-residential fixed investment, exports, residential fixed investment, and private inventory investment.
2 While GDP has now
surpassed the preCOVID peak in the
second quarter 2021, it
has not yet reached the
pre-pandemic trend. Per
the March 2022 UCLA
Anderson Forecast, GDP
is expected to reach the
pre-COVID trend by mid2022. On an annual
basis, the UCLA Forecast
projects continued GDP
growth of 4.3% in 2022,

2.8% in 2023, and 2.3%
in 2024. The UCLA
forecast, however, comes with
considerable uncertainty. Major
risk factors include the future
course of the pandemic as well as the impacts of the war between Russia and Ukraine. 3 2 https://www.bea.gov/sites/default/files/2022-02/tech4q21_2nd.pdf 3 UCLA Anderson Forecast, January 2021
Source: UCLA Anderson Forecast and U.S. Bureau of Economic Analysis Note: $ Billions, chained 2012 prices
35 25
15 s
-5
-15
-25
-35
Real GDP: Peircent change firom preceding quarter
Ql Q_ Q3 Q4 Ql
2018
2 2019
Q4 Ql C2020
Q4 Ql Q2 Q3 Q4
2021
U.S. Bureau of Economic Analysis Seasonally adjusted at annua l rates Real GDP l.ellels,. 5oeasooal sled AnrKJal Rates, Actual a-id F(l(e;cast, 2016-202 Real GD , $ 8i ll ion:s
Zl,'.SOO
oo
oo
19,SOO
00 Ul.:500
S, 00

17. 00
1'.l, 00
(i
--
20 n 2011 2018 20.2
Forcc;ast ➔
2 2 2024
3 City of Santa Clara
Financial Status Report as of January 31, 2022
Improvement continues at the State and local level. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate stayed flat at 5.8% in January 2022. With the continued addition of jobs, California has now regained 2.26 million jobs, or nearly 82% of the 2.71 million jobs lost due to COVID-19 in March and April 2020. 4 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.4% in January 2022, up from a revised 2.9% in December 2021. This reflects a drop from the January 2021 level of 6.2% but is higher than the pre-pandemic February 2020 level of

2.6%. Between January 2021 and January 2022, employment in this region increased by 71,500 jobs, or 6.8%.The largest increases were in leisure and hospitality (up 33,200 jobs), food and drinking places (up 23,300 jobs), professional and business services (up 12,000 jobs), and private educational and health services (up 9,100 jobs).
5 Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports. 4 https://edd.ca.gov/Newsroom/unemployment-january-2022.htm 5 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf 4 City of Santa Clara
Financial Status Report as of January 31, 2022
General Fund Revenues
As of January 31, 2022, $109.1 million or 48.5% of the General Fund estimated revenue (excluding transfers) was received. Based on the timing of payments, a higher percentage of revenues are collected in the second half of the fiscal year. Transfers and use of reserves of $44.5 million have occurred as budgeted. While revenues are tracking slightly below the budgeted estimate, collections are higher when compared to collections last fiscal year (excluding transfers and various permits and charges for services that are now deposited into the new Building Development Services Fund and transfers).

Adopted Budget
Amended
Budget
Actual Through
01/31/2022
Percentage
Received
Actual Through
01/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax $ 58,183,000 $ 58,183,000 $ 22,666,505 38.96% $ 24,346,452 $ (1,679,947) -6.90% Property Tax 71,559,000 71,559,000 37,721,113 52.71% 34,483,149 3,237,964 9.39% Transient Occupancy Tax 9,000,000 9,000,000 3,347,211 37.19% 1,309,334 2,037,877 155.64% Other Taxes 6,080,000 6,080,000 2,682,067 44.11% 2,100,618 581,449 27.68% Total Taxes 144,822,000 144,822,000 66,416,896 45.86% 62,239,553 4,177,343 6.71%

LICENSES & PERMITS
Business Licenses 900,000 900,000 486,320 54.04% 502,817 (16,497) -3.28% Fire Operation Permits 2,200,000 2,200,000 1,139,577 51.80% 1,085,482 54,095 4.98% Building Permits - - - N/A 4,090,173 (4,090,173) -100.00% Electric Permits - - - N/A 768,188 (768,188) -100.00%
Plumbing Permits - - - N/A 523,662 (523,662) -100.00%
Mechanical Permits - - - N/A 594,042 (594,042) -100.00% Miscellaneous Permits 60,000 60,000 37,516 62.53% 30,038 7,478 24.90% Total Licenses & Permits 3,160,000 3,160,000 1,663,413 52.64% 7,594,402 (5,930,989) -78.10% FINES & PENALTIES 1,496,135 1,496,135 205,366 13.73% 221,794 (16,428) -7.41% INTERGOVERNMENTAL 26,205,801 614,000 599,956 97.71% 254,035 345,921 136.17% CHARGES FOR SERVICES 30,003,443 30,003,443 16,631,094 55.43% 17,606,444 (975,350) -5.54% SILICON VALLEY POWER TRANSFER 24,700,000 24,700,000 15,034,470 60.87% 14,200,367 834,103 5.87%

USE OF MONEY & PROPERTY
Interest 2,600,000 2,600,000 865,946 33.31% 696,281 169,665 24.37% Rent 9,115,722 9,298,022 5,385,709 57.92% 4,492,649 893,060 19.88% Total Use of Money & Property 11,715,722 11,898,022 6,251,655 52.54% 5,188,930 1,062,725 20.48% MISCELLANEOUS REVENUES 198,000 198,000 399,612 201.82% 4,190,424 (3,790,812) -90.46%

LAND PROCEED - - - N/A - - N/A

OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,460,000 (6,000) -0.41% Operating Transfer In - Reserves 32,390,871 32,758,819 32,758,819 100.00% 39,468,333 (6,709,514) -17.00% Operating Transfer In - Fund Balances(1) - 4,817,658 4,817,658 100.00% 4,273,692 543,966 12.73% Operating Transfer In - Miscellaneous 5,005,399 5,427,399 5,427,399 100.00% 3,547,419 1,879,980 53.00% Total Other Financing Sources 38,850,270 44,457,876 44,457,876 100.00% 48,749,444 (4,291,568) -8.80%

STADIUM OPERATION
Charges for Services 7,466,069 7,466,069 1,655,345 22.17% 1,549,061 106,284 6.86% Rent and Licensing 717,500 717,500 286,278 39.90% 26,451 259,827 982.30% Total Stadium Operation 8,183,569 8,183,569 1,941,623 23.73% 1,575,512 366,111 23.24% TOTAL GENERAL FUND $ 289,334,940 $ 269,533,045 $ 153,601,962 56.99% $ 161,820,905 $ (8,218,944) -5.08% Function

CITY OF SANTA CLARA

GENERAL FUND

REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2021/22 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of January 31, 2022
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.0%, of which the City receives 1.0%. As of January 31, 2022, $22.7 million has been collected, which is down $1.7 million or 6.9% from the prior year level and is based on performance through the first quarter of the fiscal year and an advance payment for the second quarter. While not reflected in the collections through January, the City has received information on the cash receipts for second quarter of the fiscal year, which reflects growth of

14.8%. Overall, receipts are up 4.6% through the first two quarters of FY 2021/22. Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives. Overall, annual Sales Tax growth of 3.6% is needed to meet the budgeted estimate of $58.2 million. Based on collections to date, receipts are projected to meet the budget.

Property Tax: Through January, 52.7% of the property tax budgeted estimate has been received. The majority of property tax revenue is collected in February and April each year. Based on information from the County of Santa Clara, property tax receipts are projected to end the year at or slightly above the Adopted Budget estimate of $71.6 million.

Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s current TOT rate is 11.5% as of January 2022. Through January 31, 2022, approximately $3.3 million has been received, which is significantly higher than receipts through the same period last fiscal year of only $1.3 million. However, receipts remain 68% below the pre-COVID 19 level of $10.5 million received through January 2020. As businesses continue to reopen, it is anticipated that TOT will continue to increase compared to last fiscal year. To meet the budgeted estimate, collections will need to triple from just under $3.0 million in FY 2020/21 to $9.0 million in FY 2021/22. With the January 2022 rate increase, TOT receipts are projected to end the year close to the budgeted estimate.

Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $2.7 million through January, which is 27.7% above receipts received through the same period last fiscal year.

While receipts in the documentary transfer tax are tracking above levels collected through the same period last fiscal year, receipts in the franchise tax category are slightly lower than prior year levels.

Growth of 4.4% is needed to meet the budgeted estimate of $6.1 million. Collections are projected to meet the budgeted estimate.

Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing and mechanical permits have all been budgeted in the new Building Development Services Fund, which is reflected in the Special Revenue section of this report. Licenses and permits revenue collections total $1.7 million, or 52.6% of the budget of $3.2 million. Receipts are tracking slightly below estimated levels through January and may end the year slightly below the budgeted estimate.

Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of $0.2 million collected in this category through January is tracking to end the year well below 6 City of Santa Clara
Financial Status Report as of January 31, 2022
the budgeted estimate of $1.5 million largely due to the waiving of late fees on utility billing in response to COVID-19. The City will be applying for the California Arrearage Payment Program in order to alleviate the arrearages accrued as a result of the City’s bill relief period.

Intergovernmental: Includes federal stimulus funds, motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency. Through January 31, 2022, $0.6 million has been received, which is higher than receipts through the same period last year and reflects differences in planned payments. The federal stimulus funds ($26 million) have been moved to a separate American Rescue Plan Act Fund, which is reflected in this report.

Charges for Services: Includes various engineering fees, administrative fees, and community service revenue from various recreational activities. Through January 31, 2022, collections totaled approximately $16.6 million or 55.4% of the budget. This reflects a 5.5% decrease compared to last year’s collections through the same period of $17.6 million. The decrease is mainly attributable to the plan check and sign fees now being recorded in the newly established Building Development Services Fund. This decrease is partially offset by higher collections in the planning and zoning fees, fire construction permits, and miscellaneous charges for services categories. Collections are tracking close to the budgeted estimate.

Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of January 31, 2022, $15.0 million has been received which is on par for this time of year. This collection level, however, is based on the budgeted estimate and will be trued up at the end of the fiscal year. Growth of less than 1% from the prior year is needed to meet the budgeted estimate of $24.7 million.

Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $6.3 million, or 52.5% of the budget. This reflects a $1.1 million increase from prior year collection levels, primarily due to higher rent collections. This reflects differences in the timing of payments as well as the latest lease payment amounts.

Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through January 31, 2022, collections of $0.3 million have exceeded the budgeted estimate of $0.2 million; however, are significantly lower than prior year collections of $4.2 million as a result of a one-time payment in FY 2021.

Stadium Operation: As of January 31, 2022, charges for services collected through the Stadium totaled $1.9 million, which is below par for this time of year. This is due in part to the timing of when the City receives reimbursements. Current year collections are approximately 23.2% higher than collections through the same period last year resulting from the reopening of Stadium for events. 7 City of Santa Clara
Financial Status Report as of January 31, 2022
General Fund Expenditures
As of January 31, 2022, $175.6 million or 65.2% of the General Fund operating budget had been expended. Departmental expenditures totaled $127.9 million, or 58.3% of the budget, which is at the par level of 58.3% of the budget. However, this percent expended is overstated due to the treatment of the public safety costs that are funded by the newly established American Rescue Plan Act (ARPA). As part of the FY 2020/21 Budgetary Year-End Report, $26 million of the Police and Fire Department’s budgets was reallocated to the newly established ARPA Fund. While the budget has been reduced, the associated expenditures have not yet been shifted to the new fund. Once that shift takes place, departmental expenditures will be tracking below budget. Fund Transfers of $43.1 million have occurred as budgeted.

Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings to partially offset the drop in revenues associated with COVID-19. These measures include a hiring freeze and controls around overtime, as-needed staff, marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.
8 City of Santa Clara
Financial Status Report as of January 31, 2022
Adopted Budget
Amended
Budget
Actual Through
01/31/2022
Percentage
Used
Actual Through
01/31/2021
$
Change From
Prior Year
Percentage
Change

GENERAL GOVERNMENT
Non-Departmental $ 6,824,333 $ 7,571,155 $ 2,567,224 33.91% $ 2,070,166 $ 497,058 24.01% City Council 829,205 829,205 486,641 58.69% 421,449 65,192 15.47% City Clerk 1,470,231 1,718,169 799,301 46.52% 1,167,739 (368,438) -31.55% City Manager 5,442,069 6,276,486 2,846,907 45.36% 2,892,295 (45,388) -1.57% City Attorney 3,097,380 3,119,380 1,419,126 45.49% 1,247,366 171,760 13.77% Human Resources 4,133,810 4,389,886 2,089,060 47.59% 1,804,634 284,426 15.76% Finance 17,439,442 18,273,518 8,960,984 49.04% 8,846,135 114,849 1.30% Total General Government 39,236,470 42,177,799 19,169,243 45.45% 18,449,784 719,459 3.90% PUBLIC WORKS 23,201,356 24,198,161 12,723,439 52.58% 13,078,417 (354,978) -2.71% COMMUNITY DEVELOPMENT 5,070,207 5,480,607 2,684,587 48.98% 8,121,221 (5,436,634) -66.94% PARKS AND RECREATION 20,982,990 21,433,077 10,355,185 48.31% 9,765,916 589,269 6.03%

PUBLIC SAFETY
Fire 60,581,403 49,830,070 35,277,582 70.80% 34,488,752 788,830 2.29% Police 79,870,137 65,242,662 42,754,936 65.53% 43,439,331 (684,395) -1.58% Total Public Safety 140,451,540 115,072,732 78,032,518 67.81% 77,928,083 104,435 0.13% LIBRARY 10,764,727 10,895,605 4,967,166 45.59% 4,983,089 (15,923) -0.32% DEPARTMENTAL TOTAL 239,707,290 219,257,981 127,932,138 58.35% 132,326,510 (4,394,372) -3.32%

OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 23,250,142 23,851,216 23,851,216 100.00% 1,013,778 22,837,438 2252.71% Operating Transfer Out - Debt Services 2,501,439 2,501,439 2,501,439 100.00% 2,500,344 1,095 0.04% Operating Transfer Out - Maintenance Dtrct 771,349 771,349 771,349 100.00% 926,920 (155,571) -16.78% Operating Transfer Out - Cemetery 850,000 850,000 850,000 100.00% 771,769 78,231 10.14% Operating Transfer Out - CIP 11,773,925 11,773,925 11,773,925 100.00% 19,678,672 (7,904,747) -40.17% Operating Transfer Out - Reserves 3,309,009 3,309,009 3,309,009 100.00% 4,933,085 (1,624,076) -32.92% Total Other Financing Uses 42,455,864 43,056,938 43,056,938 100.00% 29,824,568 13,232,370 44.37% STADIUM OPERATION 7,171,786 7,218,126 4,611,946 63.89% 1,031,751 3,580,195 347.00% TOTAL GENERAL FUND $ 289,334,940 $ 269,533,046 $ 175,601,022 65.15% $ 163,182,829 $ 12,418,193 7.61% Function

CITY OF SANTA CLARA

GENERAL FUND

EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2021/22 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of January 31, 2022
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by department.

Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of January 31, 2022, expenditures totaled $2.6 million, or 33.9% of the budget. These expenditures are well below the par level of 58%, but above the prior year level of $2.0 million. This is a result of the reallocation of City memberships from the City Manager’s Office to the Non-Departmental budget. Additionally, contractual services are higher than last fiscal year due to an increase in the permitting system licensing costs.

City Attorney: As of January 31, 2022, actual expenditures totaled approximately $1.4 million, which is below par at 45.5% of the budget. This is mainly attributable to lower salary and as-needed spending.

Spending is above the total expenditures through the same time last fiscal year by 13.8%. This is a result of the reallocation of contractual services from the Special Liability Insurance Fund to the City Attorney’s Office operating budget. Additionally, higher separation payout expenditures occurred this fiscal year compared to last fiscal year.

City Clerk: Through January, actual expenditures were tracking below budget at $0.8 million or approximately 46.5% of the budget. This reflects a decrease of 31.6% over last year’s spending through the same period. The primary driver for the decrease in spending is the Granicus costs which are paid every other year.

City Council: Through January, expenditures were at 58.7% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a spending increase of approximately 15.5% which is a result of higher as-needed and separation payout expenditures compared to last fiscal year.

City Manager: The actual expenditures through January 31, 2022 totaled $2.8 million, or 45.4% of the budget, which is below par for this time of the year. Expenditures are 1.6% lower compared with the spending level through the same period last fiscal year. This decrease in expenditures is related to the reallocation of City memberships and mandated costs from the City Manager’s Office budget to NonDepartmental in addition to lower advertising and contractual services expenditures.

Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. Effective this fiscal year, the Building division of this department has been moved to the newly established Building Development Services Fund, which falls under the special revenue section of this report. Through January, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.7 million, or approximately 49%, which is below the par level of 58.3%. This is a result of vacancies in the department. Expenditures were also well below the spending through the same period last fiscal year due to the change in funding for the Building Division.

Finance Department: Through January, the Department’s expenditures totaled $9.0 million, or 49% of the budget, which is below par. This is mainly attributable to lower expenditures in the operating 10 City of Santa Clara
Financial Status Report as of January 31, 2022
supplies and contractual services categories. This expenditure level was in line with levels from last fiscal year.

Fire Department: As of January 31, 2022, actual expenditures in the General Fund totaled $35.3 million, or 70.8% of the budget, which is above par. These expenditures reflect a 2.3% increase from expenditures through the same period last fiscal year. As discussed above, the Fire Department percent expended is overstated due to the treatment of public safety costs funded by ARPA funds. As part of the FY 2020/21 Budgetary Year-End Report, $11.2 million of the Fire Department’s budget was reallocated to the newly ARPA Fund to reflect public safety costs covered through ARPA. Eligible Fire expenditures, however, have not yet been moved to this new fund. The expenditures will be shifted to the new fund in February and March, which will be reflected in future monthly financial reports.

Factoring out that impact, expenditures would have been tracking at 57.8% of the budget through January, which is within budget.

Overtime expenditures are tracking at 101%, which is above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs. Fire Department expenditures have also been impacted by mutual aid deployments to address wildland fires (Caldor, Dixie, River and Beckwourth complex fires), for which the City will receive reimbursement. Budget actions are recommended in this report to recognize $1.8 million and appropriate those funds to support Fire Department operations. Of this amount $0.6 million will be applied towards the purchase of a new relief Fire Engine. These funds along with the shift of existing non-personnel funding of $0.1 million in the Fire Department allocated for this purpose will be transferred to the Vehicle Replacement Fund to purchase the new engine.

Library Department: Through January, actual expenditures totaled $5.0 million, or 45.6% of the budget, which is below par and lower than expenditure levels through the same period last fiscal year.

COVID-19 precautions have continued to impact Library operations this year, resulting in lower expenditures. A phased reopening is in progress, but this schedule was delayed due to the increase in COVID-19 cases resulting from the latest Omicron variant.

Parks and Recreation Department: Through January, actual expenditures totaled approximately $10.4 million, or 48.3% of the budget, which is below par, and is slightly higher than the prior year actuals of $9.8 million. The department has resumed most activities that were previously impacted by COVID-19 restrictions. However, some programming continues to be impacted by the staff vacancies.

Police Department: As of January 31, 2022, actual expenditures in the General Fund totaled $42.8 million, or 65.5% of the budget, which is above par. Expenditures are slightly below the spending levels last fiscal year. As discussed above, the Police Department percent expended is overstated due to the treatment of public safety costs funded by ARPA funds. As part of the FY 2020/21 Budgetary Year-End Report, $14.7 million of the Police Department’s budget was reallocated to the newly ARPA Fund to reflect public safety costs covered through ARPA. Eligible Police expenditures, however, have not yet been moved to this new fund. The expenditures will be shifted to the new fund in February and March, 11 City of Santa Clara
Financial Status Report as of January 31, 2022
which will be reflected in future monthly financial reports. Factoring out that impact, expenditures would have been tracking at 53.5% of the budget through January, which is within budget.

Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Through January, stadium expenditures totaled $4.6 million, or 63.9% of the budget. This is significantly higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events. 12 City of Santa Clara
Financial Status Report as of January 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of January 31, 2022. The amended budget for both reflects carryover appropriations from fiscal year 2021/22 in addition to budget amendments approved by the City Council through January 2022.

Effective July 1, 2021, all Building Division revenues and expenditures are now budgeted and accounted for in the new Building Development Services Fund, which is included in the table below.

Additionally, as approved by City Council on December 14, 2021 as part of the FY 2020/21 Budgetary Year-End Report, the ARPA Fund was established. Approximately $14.7 million and $11.2 million was moved from the Police Department and Fire Department, respectively, to the new ARPA Fund in order to separately track public safety expenditures eligible to be covered by these funds. The shift of public safety expenditures will be reflected in next month’s financial report. Revenues totaled approximately $26 million, while expenditures totaled approximately $8.7 million through the end of January. Overall, both revenues and expenditures are tracking below par.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2022 received 1/31/2021 Prior Year Change Housing Authority Fund $ 261,000 $ 5,461,000 $ 236,259 4.33% $ 327,733 $ (91,474) -27.91% City Affordable Housing Fund 657,000 6,657,000 1,445,601 21.72% 508,506 937,095 184.28% Housing Successor Fund 350,000 350,000 491,421 140.41% 701,161 (209,740) -29.91% Housing and Urban Development 1,957,103 5,011,774 1,511,246 30.15% 1,471,815 39,431 2.68% Building Development Services
Fee Fund
13,630,000 13,630,000 9,099,505 66.76% 0 9,099,505 100.00% American Rescue Plan Act Fund 0 25,921,801 13,248,095 51.11% 0 13,248,095 100.00% TOTAL $ 16,855,103 $ 57,031,575 $ 26,032,127 45.65% $ 3,009,215 $ 23,022,912 765.08% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2022 used 1/31/2021 Prior Year Change Housing Authority Fund $ 363,099 $ 7,183,099 $ 67,999 0.95% $ 81,146 $ (13,147) -16.20% City Affordable Housing Fund 1,431,111 12,852,650 534,608 4.16% 423,465 111,143 26.25% Housing Successor Fund 915,640 11,260,001 446,696 3.97% 368,981 77,715 21.06% Housing and Urban Development 3,684,839 5,429,455 1,639,497 30.20% 1,548,879 90,618 5.85% Building Development Services
Fee Fund
12,256,059 14,757,132 6,009,680 40.72% 0 6,009,680 100.00% American Rescue Plan Act Fund 0 25,921,801 0 0.00% 0 0 100.00% TOTAL $ 18,650,748 $ 77,404,138 $ 8,698,480 11.24% $ 2,422,471 $ 6,276,009 259.07%

PRIOR YEAR EXPENDITURE COMPARISON

CITY OF SANTA CLARA

SPECIAL REVENUE FUNDS

REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2021/22 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2021/22
13 City of Santa Clara
Financial Status Report as of January 31, 2022
Governmental Capital Improvement Funds
The table below lists the total amended budget amounts for the Capital Improvement Funds, which consist of current year appropriations, prior year carryover balances in Governmental Capital Improvement Funds, and budget amendments approved through January 2022. As of January 31, 2022, these capital fund expenditures totaled $16.5 million, or 12.2% of the amended budget. As part of the adoption of the FY 2021/22 and FY 2022/23 operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2021. Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the January 14, 2021 Council meeting. These adjustments are reflected below.

The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.

EXPENDITURES - FISCAL YEAR 2021/22
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2022 Used Parks & Recreation $ 9,973,977 $ 12,169,765 $ 22,143,742 $ 1,131,411 5.11% Streets & Highways 40,275,766 38,569,145 78,844,911 10,396,405 13.19% Storm Drain 7,433,140 3,053,568 10,486,708 2,201,581 20.99% Fire 963,970 838,709 1,802,679 131,917 7.32%
Library 24,374 190,107 214,481 15,890 7.41%
Public Buildings 4,368,471 3,466,169 7,834,640 923,780 11.79% General Gov't - Other 2,464,262 8,838,081 11,302,343 1,219,480 10.79% Related Santa Clara Developer 1,177,106 1,166,044 2,343,150 506,960 21.64% Tasman East Specific
Infrastructure Improvement
Fund
23,757 4,836 28,593 1,839 6.43%
TOTAL $ 66,704,823 $ 68,296,424 $ 135,001,247 $ 16,529,263 12.24%

CITY OF SANTA CLARA

SUMMARY OF EXPENDITURES

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of January 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of January 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels with revenues tracking at 52.9% of the budget and expenditures tracking at 54.2% of the budget.

Both revenues and expenditures are tracking above last fiscal year levels reflecting current activity levels. The increase in expenditures in the Electric Utility is primarily due to the higher debt retirement costs as well as higher resource costs related to transmission and wheeling (transportation of electric energy from within an electrical grid to an electrical load outside the grid boundaries). In the Solid Waste Utility Fund, expenditures are up primarily in the garbage collections, disposal and recycling accounts resulting from higher contractual services costs.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2022 received 1/31/2021 Prior Year Change Electric Utility Fund $ 555,810,147 $ 555,810,147 $ 289,792,335 52.14% $ 267,511,748 $ 22,280,587 8.33% Water Utility Fund 49,489,630 49,489,630 27,559,165 55.69% 28,550,082 (990,917) -3.47% Sewer Utility Fund 58,344,697 58,344,697 32,707,154 56.06% 23,112,247 9,594,907 41.51% Cemetery Fund 600,000 600,000 453,944 75.66% 307,735 146,209 47.51% Solid Waste Utility Fund 33,610,000 33,764,000 17,980,205 53.25% 13,280,199 4,700,006 35.39% Water Recycling Fund 5,703,831 5,703,831 3,672,122 64.38% 3,466,265 205,857 5.94% TOTAL REVENUE $ 703,558,305 $ 703,712,305 $ 372,164,925 52.89% $ 336,228,276 $ 35,936,649 10.69% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2022 Used 1/31/2021 Prior Year Change Electric Utility Fund $ 511,251,732 $ 515,132,550 $ 285,592,597 55.44% $ 230,722,102 $ 54,870,495 23.78% Water Utility Fund 47,197,617 47,580,260 23,808,553 50.04% 24,695,748 (887,195) -3.59% Sewer Utility Fund 30,565,333 30,707,268 15,540,614 50.61% 18,398,379 (2,857,765) -15.53% Cemetery Fund 1,480,235 1,480,235 818,203 55.28% 759,975 58,228 7.66% Solid Waste Utility Fund 33,323,675 37,135,208 16,707,763 44.99% 11,028,243 5,679,520 51.50% Water Recycling Fund 5,709,582 5,709,582 3,056,186 53.53% 3,594,177 (537,991) -14.97% TOTAL - Operating
Appropriations
$ 629,528,174 $ 637,745,103 $ 345,523,916 54.18% $ 289,198,624 $ 56,325,292 19.48% EXPENSES - FISCAL YEAR 2021/22 PRIOR YEAR EXPENSE COMPARISON

CITY OF SANTA CLARA

ENTERPRISE OPERATING FUNDS

REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2021/22 PRIOR YEAR REVENUE COMPARISON Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category. 15 City of Santa Clara
Financial Status Report as of January 31, 2022
A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below.

Actuals through January 2022 totaled approximately $62.8 million, or 23.9% of the amended budget.

Expenditures in the Sewer Utility Capital Fund were significantly higher as a result of the Regional Wastewater Facility project, which is managed alongside the City of San José. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2021/22 and FY 2022/23 budget adoption process for those projects that have not yet been completed.

Adjustments to the capital carryover amounts based on actual year-end expenditures were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the January 14, 2021 Council meeting. These adjustments are reflected below.

Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 1/31/2022 Used 1/31/2021 Electric Utility Fund $ 81,042,278 $ 82,265,773 $ 163,308,051 $ 24,160,152 14.79% $ 23,878,640 Street Lighting (1) 4,054 5,918,610 5,922,664 73,980 1.25% 10,555 Water Utility Fund 10,900,672 2,700,000 13,600,672 4,354,450 32.02% 4,098,592 Sewer Utility Fund 50,901,194 23,050,119 73,951,313 32,536,753 44.00% 8,350,047 Cemetery Fund 60,044 248,365 308,409 19,705 6.39% -
Solid Waste Utility Fund 670,377 174,826 845,203 671,491 79.45% 192,105 Water Recycling Fund 50,000 - 50,000 - 0.00% 2,063
Convention Center
Capital Fund
1,724,000 3,642,265 5,366,265 1,001,689 18.67% -

TOTAL - CIP
Appropriations
$ 145,352,619 $ 117,999,958 $ 263,352,577 $ 62,818,220 23.85% $ 36,532,003 EXPENSES - FISCAL YEAR 2021/22

CITY OF SANTA CLARA

ENTERPRISE CAPITAL IMPROVEMENT FUNDS

SUMMARY OF EXPENSES
(1) Street Lighting fund is part of Electric Capital Improvement Funds 16 City of Santa Clara
Financial Status Report as of January 31, 2022
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2021/22, the City Council approved an exception to the policy to allow the Reserve to drop below the 25% level.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.

Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Reserve assures sufficient operating cash is available to ensure debt service coverage.
• The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.

The table below summarizes select reserve balances.
17 City of Santa Clara
Financial Status Report as of January 31, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:

GENERAL

FUND ELECTRIC WATER
Budget Stabilization Reserve $ 53,615,880
Capital Projects Reserve 7,275,070
Land Sale Reserve 20,596,711
Technology Fee Reserve 1,426,174
Rate Stabilization Fund Reserve $ 44,898,011
Cost Reduction Fund Reserve 112,838,357
DVR Power Plant Contracts Reserve 78,163
Replacement & Improvement $ 303,090
TOTALS $ 82,913,834 $ 157,814,531 $ 303,090

CITY OF SANTA CLARA

RESERVE BALANCES
January 31, 2022
Note: The Capital Projects Reserve includes funding of $3.2 million set aside for projects programmed in FY 2022/23 through FY 2024/25 in the prior CIP. 18 City of Santa Clara
Financial Status Report as of January 31, 2022
Long-Term Interfund Advances
The funds below have made advances/loans which are not expected to be repaid within the next year.

The balances reflected in the table are through January 2022. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full.

DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:

Fund Receiving Advance/Loan
Fund Making
Advance/Loan Type
Amount of
Advance/
Commitment
Cemetery General Fund Advance $ 7,961,149
Parks and Recreation Facilities General Fund Loan 8,761,865 TOTALS $ 16,723,014
Donations to the City of Santa Clara
Donations received by department during the month of January 2022 and for fiscal year 2021/22 are shown in the table below.

Department Jan-22
Fiscal Year
2021/22
Year To Date Designated Use
City Manager's Office $ - $ 115 Help Your Neighbor
Parks & Recreation 50 12,800 Case Management
Parks & Recreation - 1,675 Wade Brummal
Parks & Recreation - 50 Roberta Jones Jr. Theater
Police - 75,000 PD Team 200
TOTALS $ 50 $ 89,640
_____________________________________________________________________

MONTHLY INVESTMENT REPORT
January 2022
City of
Santa Clara
The Center of What's Possible
City of Santa Clara
Monthly Investment Report

TABLE OF CONTENTS
Page #
1 Summary of Investment Portfolio 1
2 Summary of Investments 3
3 Investment Maturity Distribution Schedule 4
4 Attachment A: Investment Inventory With Market Value 5 1 CITY OF SANTA CLARA

SUMMARY OF INVESTMENT PORTFOLIO
All securities held by the City of Santa Clara as of January 31, 2022 were in compliance with the City's Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months. The following table provides the breakdown of the total portfolio among the City, the Sports and Open Space Authority (SOSA), and the Housing Authority (HA) as of January 31, 2022.

On January 31, 2022 the cost value and market value of the City's unrestricted pooled investment portfolio were $794,495,008 and $790,073,442 respectively. Investment Strategy and Market UpdateThe City's investment strategy for January 2022 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return. On July 14, 2020, City Council approved entering into a contract with PFM Asset Management LLC (“PFM”) for the management of the City’s investment portfolio. The City has leveraged PFM’s extensive investment management experience and dedicated credit and risk management personnel to further diversify the portfolio and enhance returns. PFM began actively managing the City’s securities portfolio on September 1, 2020. As of January 31, 2022, 47.64% of the City’s portfolio consists of U.S. Treasury Notes, 27.07% consists of Federal Agencies, 5.64% consists of Local Agency Investment Fund (LAIF), 12.66% consists of investment grade Corporate Notes, 2.31% consists of investment grade Supranational Obligations, 1.45% consists of investment grade Asset-Back Securities, 2.30% consists of Negotiable Certificates of Deposit, and 0.52% consists of investment grade Municipal Bonds. In addition, City bond proceeds are invested in separate funds and are not included in the calculation of the City’s portfolio yield. The City’s portfolio yield, including LAIF and money market accounts, was 1.19% and the average maturity of the City’s portfolio was 1.99 years.

COST VALUE PERCENTAGE
City $90,437,274 99.49%
SOSA 8,493 0.00%
HA 4,049,241 0.51%
Unrestricted $794,495,008 100.00%
Restricted Bond Proceeds 2,146,380
Total Investments $796,641,388
2 Traditionally the City has compared the portfolio yield to the 24-month moving average yield of the two-year Treasury Note (Benchmark Yield*). During 2021 annual Investment Policy review, the City evaluated alternate portfolio performance benchmarks in order to establish an independent standard to serve as a measure of the performance of the portfolio and to help guide the maturity structure of the portfolio. The City began using the 24-Month moving average yield of the ICE BaML 0-5 US Treasury Index as benchmark, effective March 23, 2021. The City’s securities portfolio compared to the ICE BaML 0-5 US Treasury Index (Benchmark) as of January 31, 2022 was as follows:

Description
Average Maturity
(Years)
Yield to Maturity
(At Cost) 1
Santa Clara Portfolio 2.10 1.28%
Benchmark 2.23 0.35%

1. Yield to Maturity at Cost: The expected rate of return based on the original cost, annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis. The Benchmark yield represents the 24-month moving average yield of the ICE BaML 0-5 US Treasury Index.

CITY OF SANTA CLARA
SUMMARY OF INVESTMENTS JANUARY 31, 2022
PER
COST % OF INVESTMENT

INVESTMENT TYPE VALUE PORTFOLIO POLICY
U.S. Treasury Notes 47.64% No Limit 379,481,797Federal Agency Notes 27.07% 80% 215,706,704Corporate Notes 12.66% 15% 100,890,982Municipal Bonds 0.52% 20% 4,145,000Supranational Obligations 2.31% 10% 18,376,628 Asset-Backed Securities 1.45% 20% 11,553,044
Negotiable Certificates of Deposit 18,360,000 2.30% 25%Money Market Fund 0.14% 10% Per Fund 1,086,872Local Agency Investment Fund (LAIF) 44,893,981 5.64% $75 MMutual Fund - Traffic Mitigation Bond Proceeds 2,146,380 0.27% 10% Per FundTOTAL INVESTMENTS $ 100.00% 796,641,388 U.S. Treasury Notes

47.64%
Federal Agency Notes

27.08%
Corporate Notes

12.66%
Municipal Bonds

0.52%
Supranational Obligations

2.31%
Asset‐Backed Securities

1.45%
Negotiable Certificates of
Deposit

2.30%
Money Market Fund

0.14%
Local Agency Investment Fund
(LAIF)

5.64%
Mutual Fund ‐ Traffic
Mitigation Bond Proceeds

0.27%
3 CITY OF SANTA CLARA

INVESTMENT MATURITY DISTRIBUTION
AS OF JANUARY 31, 2022

UNRESTRICTED POOLED PORTFOLIO

MATURITY
(IN MONTHS) COST VALUE
DEMAND 45,980,853 $ (a) 2 5.79%
0 TO 6 81,365,255 11 10.24%
7 TO 12 55,505,752 13 6.99%
13 TO 18 106,303,072 14 13.38%
19 TO 24 136,377,802 26 17.17%
25 TO 30 98,159,163 17 12.35%
31 TO 36 83,828,514 13 10.55%
37 TO 42 81,929,846 13 10.31%
43 TO 48 68,642,498 13 8.64%
49 TO 54 33,314,385 7 4.19%55 TO 60 3,087,868 2 0.39%
TOTAL 794,495,008 $ 131 100.00%
Average Maturity of Unrestricted Pool: 1.99 Years(a) $20 million is earmarked for the City's Electric Utility power-trading.

NUMBER OF

INVESTMENTS DISTRIBUTION
0%2%4%6%8%
10%12%14%16%18%20%22%24%

INVESTMENT MATURITY DISTRIBUTION

UNRESTRICTED POOLED PORTFOLIO
AS OF JANUARY 31, 2022
Maturity (Months)
Distribution Percentage
4 City of Santa Clara Monthly Report
1/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 3/2/2015 1.750% 2/28/2022 912828J43 2,800,000.00 AA+ 3/3/2017 2,735,687.50 2.24% 2,803,500.00 67,812.50 UNITED STATES TREASURY 3/31/2017 1.875% 3/31/2022 912828W89 5,000,000.00 AA+ 1/24/2018 4,902,343.75 2.37% 5,013,700.00 111,356.25UNITED STATES TREASURY 5/1/2017 1.875% 4/30/2022 912828X47 5,000,000.00 AA+ 1/19/2018 4,901,757.81 2.36% 5,020,200.00 118,442.19 UNITED STATES TREASURY 6/1/2015 1.875% 5/31/2022 912828XD7 5,000,000.00 AA+ 6/8/2017 5,024,218.75 1.77% 5,025,200.00 981.25 UNITED STATES TREASURY 6/30/2015 2.125% 6/30/2022 912828XG0 25,000,000.00 AA+ 12/21/2018 25,448,046.88 1.60% 25,175,750.00 -272,296.88 UNITED STATES TREASURY 7/31/2017 1.875% 7/31/2022 9128282P4 5,000,000.00 AA+ 3/26/2018 4,853,515.63 2.59% 5,034,400.00 180,884.37 UNITED STATES TREASURY 8/31/2015 1.875% 8/31/2022 912828L24 5,000,000.00 AA+ 9/28/2017 4,991,015.00 1.91% 5,038,500.00 47,485.00UNITED STATES TREASURY 10/2/2017 1.875% 9/30/2022 9128282W9 5,000,000.00 AA+ 4/19/2018 4,820,117.19 2.74% 5,043,150.00 223,032.81UNITED STATES TREASURY 9/30/2015 1.750% 9/30/2022 912828L57 5,000,000.00 AA+ 10/5/2017 4,950,781.25 1.96% 5,038,650.00 87,868.75UNITED STATES TREASURY 11/2/2015 1.875% 10/31/2022 912828M49 5,000,000.00 AA+ 10/25/2017 4,953,515.63 2.07% 5,046,500.00 92,984.37UNITED STATES TREASURY 11/30/2015 2.000% 11/30/2022 912828M80 5,000,000.00 AA+ 12/15/2017 4,960,546.88 2.17% 5,052,550.00 92,003.12UNITED STATES TREASURY 12/31/2015 2.125% 12/31/2022 912828N30 1,300,000.00 AA+ 5/14/2018 1,260,187.50 2.84% 1,315,847.00 55,659.50UNITED STATES TREASURY 1/15/2020 1.500% 1/15/2023 912828Z29 2,850,000.00 AA+ 4/20/2020 2,947,968.75 0.24% 2,868,924.00 -79,044.75UNITED STATES TREASURY 2/1/2016 1.750% 1/31/2023 912828P38 5,000,000.00 AA+ 2/13/2018 4,810,937.50 2.57% 5,045,900.00 234,962.50 UNITED STATES TREASURY 2/29/2016 1.500% 2/28/2023 912828P79 10,000,000.00 AA+ 2/27/2018 9,450,000.00 2.68% 10,069,900.00 619,900.00UNITED STATES TREASURY 3/31/2016 1.500% 3/31/2023 912828Q29 10,000,000.00 AA+ 4/10/2018 9,479,290.00 2.62% 10,072,300.00 593,010.00UNITED STATES TREASURY 3/31/2021 0.125% 3/31/2023 91282CBU4 5,000,000.00 AA+ 6/29/2021 4,992,187.50 0.21% 4,955,300.00 -36,887.50 UNITED STATES TREASURY 5/2/2016 1.625% 4/30/2023 912828R28 10,000,000.00 AA+ 5/8/2018 9,446,875.00 2.82% 10,085,900.00 639,025.00 UNITED STATES TREASURY 5/31/2016 1.625% 5/31/2023 912828R69 10,000,000.00 AA+ 7/16/2018 9,484,375.00 2.76% 10,089,500.00 605,125.00UNITED STATES TREASURY 7/2/2018 2.625% 6/30/2023 9128284U1 5,030,000.00 AA+ 8/26/2021 5,252,616.80 0.22% 5,145,337.90 -107,278.90UNITED STATES TREASURY 6/30/2016 1.375% 6/30/2023 912828S35 20,000,000.00 AA+ 1/17/2019 20,053,710.95 1.31% 20,105,400.00 51,689.05UNITED STATES TREASURY 7/31/2018 2.750% 7/31/2023 912828Y61 10,000,000.00 AA+ 9/18/2018 9,918,710.94 2.93% 10,256,300.00 337,589.06UNITED STATES TREASURY 8/31/2016 1.375% 8/31/2023 9128282D1 5,000,000.00 AA+ 9/12/2018 4,657,031.25 2.87% 5,024,600.00 367,568.75UNITED STATES TREASURY 9/30/2016 1.375% 9/30/2023 912828T26 7,500,000.00 AA+ 11/13/2018 6,947,167.97 3.01% 7,536,075.00 588,907.03 UNITED STATES TREASURY 10/15/2020 0.125% 10/15/2023 91282CAP6 5,260,000.00 AA+ 3/26/2021 5,248,288.28 0.21% 5,173,315.20 -74,973.08UNITED STATES TREASURY 10/31/2016 1.625% 10/31/2023 912828T91 5,000,000.00 AA+ 1/25/2019 4,787,695.31 2.58% 5,043,950.00 256,254.69UNITED STATES TREASURY 11/30/2018 2.875% 11/30/2023 9128285P1 9,745,000.00 AA+ 6/23/2021 10,349,875.20 0.32% 10,051,480.25 -298,394.95UNITED STATES TREASURY 11/30/2016 2.125% 11/30/2023 912828U57 10,000,000.00 AA+ 2/28/2019 10,251,562.50 1.57% 10,177,300.00 -74,262.50UNITED STATES TREASURY 1/3/2017 2.250% 12/31/2023 912828V23 5,000,000.00 AA+ 3/13/2019 4,957,812.50 2.44% 5,102,550.00 144,737.50 UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,000,000.00 AA+ 3/26/2021 4,981,445.31 0.26% 4,898,650.00 -82,795.31UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 2,510,000.00 AA+ 3/31/2021 2,497,744.14 0.30% 2,459,122.30 -38,621.84UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 11,000,000.00 AA+ 6/11/2021 10,972,500.00 0.22% 10,777,030.00 -195,470.00UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,525,000.00 AA+ 7/14/2021 5,497,375.00 0.33% 5,413,008.25 -84,366.75UNITED STATES TREASURY 1/31/2019 2.500% 1/31/2024 9128285Z9 5,000,000.00 AA+ 4/14/2020 5,407,421.88 0.34% 5,130,100.00 -277,321.88UNITED STATES TREASURY 2/28/2017 2.125% 2/29/2024 912828W48 1,625,000.00 AA+ 4/15/2021 1,637,941.42 0.31% 1,656,102.50 18,161.08UNITED STATES TREASURY 4/15/2021 0.375% 4/15/2024 91282CBV2 5,415,000.00 AA+ 10/15/2021 5,397,443.55 0.51% 5,315,147.40 -82,296.15UNITED STATES TREASURY 5/1/2017 2.000% 4/30/2024 912828X70 5,000,000.00 AA+ 5/16/2019 4,952,734.38 2.20% 5,085,150.00 132,415.62 UNITED STATES TREASURY 5/15/2014 2.500% 5/15/2024 912828WJ5 6,050,000.00 AA+ 8/16/2019 6,332,174.65 1.48% 6,220,852.00 -111,322.65UNITED STATES TREASURY 6/30/2019 1.750% 6/30/2024 9128286Z8 7,250,000.00 AA+ 12/12/2019 7,253,398.44 1.74% 7,331,852.50 78,454.06UNITED STATES TREASURY 6/30/2017 2.000% 6/30/2024 912828XX3 5,000,000.00 AA+ 8/29/2019 5,136,328.13 1.41% 5,086,350.00 -49,978.13UNITED STATES TREASURY 7/15/2021 0.375% 7/15/2024 91282CCL3 5,250,000.00 AA+ 9/10/2021 5,246,718.75 0.40% 5,135,340.00 -111,378.75 UNITED STATES TREASURY 7/31/2017 2.125% 7/31/2024 9128282N9 5,000,000.00 AA+ 9/10/2019 5,133,315.75 1.56% 5,104,500.00 -28,815.75UNITED STATES TREASURY 8/31/2017 1.875% 8/31/2024 9128282U3 2,985,000.00 AA+ 3/10/2020 3,149,640.66 0.62% 3,028,491.45 -121,149.21UNITED STATES TREASURY 8/31/2019 1.250% 8/31/2024 912828YE4 4,750,000.00 AA+ 1/5/2021 4,928,867.19 0.21% 4,743,302.50 -185,564.69UNITED STATES TREASURY 10/31/2017 2.250% 10/31/2024 9128283D0 10,000,000.00 AA+ 11/18/2019 10,290,625.00 1.64% 10,244,900.00 -45,725.00UNITED STATES TREASURY 11/30/2017 2.125% 11/30/2024 9128283J7 5,000,000.00 AA+ 1/6/2020 5,118,945.31 1.62% 5,105,650.00 -13,295.31 UNITED STATES TREASURY 1/2/2018 2.250% 12/31/2024 9128283P3 10,000,000.00 AA+ 1/7/2020 10,300,781.25 1.62% 10,251,600.00 -49,181.25 2/10/2022 4:37 PM 1 of 4
Attachment A
City of Santa Clara Monthly Report
1/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 5,000,000.00 AA+ 4/22/2020 5,238,671.88 0.37% 4,997,250.00 -241,421.88UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 1,950,000.00 AA+ 5/7/2021 2,013,146.48 0.50% 1,948,927.50 -64,218.98UNITED STATES TREASURY 2/28/2018 2.750% 2/28/2025 9128283Z1 6,200,000.00 AA+ 3/6/2020 6,850,757.82 0.61% 6,451,162.00 -399,595.82 UNITED STATES TREASURY 8/31/2020 0.250% 8/31/2025 91282CAJ0 16,330,000.00 AA+ 8/2/2021 16,153,942.19 0.52% 15,624,544.00 -529,398.19UNITED STATES TREASURY 10/31/2020 0.250% 10/31/2025 91282CAT8 5,400,000.00 AA+ 10/7/2021 5,285,882.83 0.78% 5,153,652.00 -132,230.83UNITED STATES TREASURY 11/30/2020 0.375% 11/30/2025 91282CAZ4 4,450,000.00 AA+ 11/4/2021 4,327,625.00 1.07% 4,260,029.50 -67,595.50UNITED STATES TREASURY 12/31/2020 0.375% 12/31/2025 91282CBC4 3,820,000.00 AA+ 5/3/2021 3,751,956.25 0.76% 3,653,333.40 -98,622.85UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 8,025,000.00 AA+ 11/30/2021 7,817,478.52 1.01% 7,661,708.25 -155,770.27 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 4,050,000.00 AA+ 1/6/2022 3,906,351.56 1.27% 3,866,656.50 -39,695.06 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 8,100,000.00 AA+ 8/31/2021 8,027,226.56 0.70% 7,776,229.56 -250,997.00 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 5,175,000.00 AA+ 12/7/2021 5,035,517.58 1.15% 4,945,468.44 -90,049.14 U.S. Treasury Bond / Note Subtotal 380,345,000.00 379,481,796.70 380,738,089.40 1,256,292.70 FANNIE MAE 10/6/2017 2.000% 10/5/2022 3135G0T78 5,000,000.00 AA+ 1/26/2018 4,890,750.00 2.50% 5,047,650.00 156,900.00FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 4,950,000.00 AA+ 11/25/2020 4,944,357.00 0.29% 4,870,998.00 -73,359.00FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 5,225,000.00 AA+ 1/22/2021 5,230,799.75 0.21% 5,141,609.00 -89,190.75FANNIE MAE 7/8/2019 1.750% 7/2/2024 3135G0V75 15,000,000.00 AA+ 12/18/2019 15,566,089.75 0.90% 15,156,000.00 -410,089.75 FANNIE MAE 1/10/2020 1.625% 1/7/2025 3135G0X24 7,500,000.00 AA+ 1/22/2020 7,499,025.00 1.63% 7,542,975.00 43,950.00FANNIE MAE 4/24/2020 0.625% 4/22/2025 3135G03U5 10,000,000.00 AA+ 5/7/2020 10,050,600.00 0.52% 9,750,300.00 -300,300.00 FANNIE MAE 11/12/2020 0.500% 11/7/2025 3135G06G3 1,860,000.00 AA+ 12/29/2020 1,864,929.00 0.44% 1,790,194.20 -74,734.80 FNMA Medium Term Note Subtotal 49,535,000.00 50,046,550.50 49,299,726.20 -746,824.30 FEDERAL FARM CREDIT BANKS 10/14/2016 1.400% 4/14/2022 3133EGYS8 5,000,000.00 AA+ 2/4/2020 4,994,485.00 1.45% 5,011,700.00 17,215.00 FEDERAL FARM CREDIT BANKS 7/19/2019 1.850% 7/19/2022 3133EKVE3 5,000,000.00 AA+ 7/17/2019 4,994,300.00 1.89% 5,031,200.00 36,900.00 FEDERAL FARM CREDIT BANKS 8/5/2019 1.850% 8/5/2022 3133EKYJ9 5,000,000.00 AA+ 8/13/2019 5,029,800.00 1.64% 5,034,150.00 4,350.00FEDERAL FARM CREDIT BANKS 11/1/2017 2.080% 11/1/2022 3133EHM91 1,800,000.00 AA+ 10/7/2019 1,834,398.00 1.44% 1,818,918.00 -15,480.00 FEDERAL FARM CREDIT BANKS 3/16/2018 2.710% 12/16/2022 3133EJGU7 5,000,000.00 AA+ 3/28/2018 5,015,935.00 2.64% 5,095,450.00 79,515.00 FEDERAL FARM CREDIT BANKS 6/19/2018 2.890% 6/19/2023 3133EJSD2 5,000,000.00 AA+ 11/28/2018 4,980,250.00 2.98% 5,139,700.00 159,450.00FEDERAL FARM CREDIT BANKS 1/17/2020 1.600% 7/17/2023 3133ELHZ0 5,000,000.00 AA+ 1/16/2020 4,998,200.00 1.61% 5,051,000.00 52,800.00 FEDERAL FARM CREDIT BANKS 8/14/2018 2.900% 8/14/2023 3133EJWV7 5,000,000.00 AA+ 9/17/2018 4,977,050.00 3.00% 5,149,250.00 172,200.00 FEDERAL FARM CREDIT BANKS 10/2/2018 3.050% 10/2/2023 3133EJD48 7,575,000.00 AA+ 11/27/2018 7,583,620.35 3.02% 7,829,747.25 246,126.90FEDERAL FARM CREDIT BANKS 11/1/2017 2.200% 11/1/2023 3133EHN25 2,965,000.00 AA+ 6/26/2019 3,006,094.90 1.87% 3,023,529.10 17,434.20FEDERAL FARM CREDIT BANKS 2/27/2019 2.610% 2/27/2024 3133EKBW5 5,000,000.00 AA+ 3/20/2019 5,033,150.00 2.47% 5,140,850.00 107,700.00FEDERAL FARM CREDIT BANKS 4/22/2019 2.450% 7/22/2024 3133EKHV1 5,000,000.00 AA+ 9/4/2019 5,250,650.00 1.38% 5,142,400.00 -108,250.00 FEDERAL FARM CREDIT BANKS 11/1/2019 1.650% 11/1/2024 3133EK4Y9 5,000,000.00 AA+ 11/8/2019 4,962,850.00 1.81% 5,042,850.00 80,000.00FEDERAL FARM CREDIT BANKS 1/23/2020 1.650% 1/23/2025 3133ELJM7 7,320,000.00 AA+ 5/18/2020 7,689,367.20 0.56% 7,377,608.40 -311,758.80 FEDERAL FARM CREDIT BANKS 5/14/2020 0.500% 5/14/2025 3133ELZM9 10,000,000.00 AA+ 5/15/2020 9,982,800.00 0.53% 9,723,600.00 -259,200.00FEDERAL FARM CREDIT BANKS 6/9/2020 0.500% 6/9/2025 3133ELH23 10,000,000.00 AA+ 6/12/2020 9,997,540.00 0.50% 9,711,500.00 -286,040.00FFCB Medium Term Note Subtotal 89,660,000.00 90,330,490.45 90,323,452.75 -7,037.70 FEDERAL FARM CREDIT BANKS 7/2/2020 0.500% 7/2/2025 3133ELR71 10,000,000.00 AA+ 7/14/2020 10,017,640.00 0.46% 9,700,000.00 -317,640.00FFCB Coupon Note Subtotal 10,000,000.00 10,017,640.00 9,700,000.00 -317,640.00FEDERAL HOME LOAN BANKS 2/17/2012 2.250% 3/11/2022 313378CR0 5,000,000.00 AA+ 3/13/2020 5,150,900.00 0.72% 5,012,150.00 -138,750.00 FEDERAL HOME LOAN BANKS 8/15/2013 3.125% 9/9/2022 313383WD9 5,000,000.00 AA+ 12/12/2018 5,039,800.00 2.90% 5,076,800.00 37,000.00FEDERAL HOME LOAN BANKS 10/17/2014 2.375% 9/8/2023 3130A3DL5 5,000,000.00 AA+ 9/5/2019 5,164,135.00 1.53% 5,100,000.00 -64,135.00 2/10/2022 4:37 PM 2 of 4
Attachment A
City of Santa Clara Monthly Report
1/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LFEDERAL HOME LOAN BANKS 12/9/2013 3.375% 12/8/2023 3130A0F70 5,000,000.00 AA+ 1/8/2019 5,147,870.00 2.73% 5,203,700.00 55,830.00FEDERAL HOME LOAN BANKS 1/16/2015 2.250% 12/8/2023 3130A3VC5 5,000,000.00 AA+ 3/12/2020 5,282,425.00 0.72% 5,099,850.00 -182,575.00FEDERAL HOME LOAN BANKS 5/8/2014 2.875% 6/14/2024 3130A1XJ2 5,000,000.00 AA+ 11/20/2019 5,270,205.00 1.64% 5,181,150.00 -89,055.00FEDERAL HOME LOAN BANKS 11/6/2014 2.750% 12/13/2024 3130A3GE8 5,000,000.00 AA+ 3/12/2020 5,461,300.00 0.77% 5,190,800.00 -270,500.00FHLB Medium Term Note Subtotal 35,000,000.00 36,516,635.00 35,864,450.00 -652,185.00FREDDIE MAC 5/7/2020 0.375% 5/5/2023 3137EAER6 5,000,000.00 AA+ 5/8/2020 5,014,545.00 0.28% 4,966,050.00 -48,495.00FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 1,640,000.00 AA+ 9/4/2020 1,640,761.21 0.24% 1,618,926.00 -21,835.21FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 4,295,000.00 AA+ 9/4/2020 4,293,582.65 0.26% 4,239,809.25 -53,773.40FREDDIE MAC 10/16/2020 0.125% 10/16/2023 3137EAEY1 3,270,000.00 AA+ 10/16/2020 3,257,802.90 0.25% 3,215,783.40 -42,019.50FREDDIE MAC 2/14/2020 1.500% 2/12/2025 3137EAEP0 5,000,000.00 AA+ 5/20/2020 5,226,960.00 0.53% 5,014,300.00 -212,660.00FREDDIE MAC 9/25/2020 0.375% 9/23/2025 3137EAEX3 9,390,000.00 AA+ 9/25/2020 9,361,736.10 0.44% 9,006,981.90 -354,754.20FHLMC Medium Term Note Subtotal 28,595,000.00 28,795,387.86 28,061,850.55 -733,537.31INTER-AMERICAN DEVELOPMENT BANK 9/23/2021 0.500% 9/23/2024 4581X0DZ8 11,065,000.00 AAA 9/23/2021 11,056,811.90 0.52% 10,818,582.45 -238,229.45INTL BANK OF RECONSTRUCTION AND DEV 4/20/2021 0.126% 4/20/2023 459058JV6 7,335,000.00 AAA 4/20/2021 7,319,816.55 0.23% 7,260,696.45 -59,120.10Supranational Subtotal 18,400,000.00 18,376,628.45 18,079,278.90 -297,349.55CALIFORNIA EARTHQUAKE AUTHORITY 11/24/2020 1.477% 7/1/2023 13017HAK2 1,430,000.00 NR 11/24/2020 1,430,000.00 1.48% 1,435,948.80 5,948.80LOS ANGELES COMMUNITY COLLEGE DISTRICT C 11/10/2020 0.773% 8/1/2025 54438CYK2 2,715,000.00 AA+ 11/10/2020 2,715,000.00 0.77% 2,636,753.70 -78,246.30Municipals Subtotal 4,145,000.00 4,145,000.00 4,072,702.50 -72,297.50 3M COMPANY 9/14/2018 3.250% 2/14/2024 88579YBB6 5,000,000.00 A+ 11/29/2021 5,241,250.00 1.03% 5,194,750.00 -46,500.00ADOBE INC 1/26/2015 3.250% 2/1/2025 00724FAC5 4,000,000.00 A+ 1/26/2022 4,183,680.00 1.68% 4,167,880.00 -15,800.00 ALPHABET INC 4/27/2016 3.375% 2/25/2024 02079KAB3 5,330,000.00 AA+ 11/23/2021 5,642,444.60 0.75% 5,549,489.40 -92,955.20AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 4,245,000.00 AA 5/12/2021 4,238,802.30 0.50% 4,153,308.00 -85,494.30APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/9/2021 5,340,100.00 0.94% 5,157,100.00 -183,000.00APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/29/2021 5,355,200.00 0.84% 5,157,100.00 -198,100.00BANK OF AMERICA 7/23/2013 4.100% 7/24/2023 06053FAA7 4,070,000.00 A- 9/15/2020 4,482,494.50 0.52% 4,239,719.00 -242,775.50BANK OF NY MELLON CORP 1/28/2021 0.750% 1/28/2026 06406RAQ0 9,000,000.00 A 2/10/2021 9,025,920.00 0.69% 8,629,830.00 -396,090.00BRISTOL-MYERS SQUIBB CO 11/13/2020 0.750% 11/13/2025 110122DN5 5,725,000.00 A+ 6/30/2021 5,672,673.50 0.96% 5,478,023.50 -194,650.00CATERPILLAR FINANCIAL SERVICES CORP 1/10/2022 0.950% 1/10/2024 14913R2S5 2,535,000.00 A 1/10/2022 2,534,594.40 0.96% 2,514,136.95 -20,457.45HONEYWELL INTERNATIONAL 5/18/2020 1.350% 6/1/2025 438516CB0 5,000,000.00 A 9/8/2021 5,097,900.00 0.82% 4,938,300.00 -159,600.00JOHN DEERE CAPITAL CORP 6/17/2021 1.050% 6/17/2026 24422EVR7 5,000,000.00 A 12/8/2021 4,908,600.00 1.47% 4,825,750.00 -82,850.00 JOHNSON & JOHNSON 8/25/2020 0.550% 9/1/2025 478160CN2 5,000,000.00 AAA 9/3/2020 5,023,550.00 0.45% 4,791,300.00 -232,250.00 JPMORGAN CHASE & CO 9/16/2020 0.653% 9/16/2024 46647PBS4 2,675,000.00 A- 9/16/2020 2,675,000.00 0.65% 2,636,266.00 -38,734.00 JPMORGAN CHASE & CO 8/10/2021 0.768% 8/9/2025 46647PCM6 2,340,000.00 A- 8/10/2021 2,340,000.00 0.77% 2,271,742.20 -68,257.80MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/9/2021 5,213,450.00 0.91% 5,049,050.00 -164,400.00 MERCK & CO INC 3/7/2019 2.900% 3/7/2024 58933YAU9 5,375,000.00 A+ 11/23/2021 5,623,916.25 0.85% 5,541,195.00 -82,721.25 MICROSOFT CORP 2/6/2017 2.875% 2/6/2024 594918BX1 5,000,000.00 AAA 11/29/2021 5,202,600.00 1.00% 5,143,300.00 -59,300.00 MICROSOFT CORP 2/12/2015 2.700% 2/12/2025 594918BB9 5,000,000.00 AAA 3/9/2021 5,341,700.00 0.92% 5,137,950.00 -203,750.00 TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 990,000.00 A 1/24/2022 988,317.00 1.99% 988,891.20 574.20 2/10/2022 4:37 PM 3 of 4
Attachment A
City of Santa Clara Monthly Report
1/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LTOYOTA MOTOR CREDIT CORP 1/11/2021 0.450% 1/11/2024 89236THU2 6,100,000.00 A+ 1/11/2021 6,099,634.00 0.45% 5,985,930.00 -113,704.00UNILEVER CAPITAL CORP 9/14/2020 0.375% 9/14/2023 904764BJ5 660,000.00 A+ 9/14/2020 659,155.20 0.42% 649,611.60 -9,543.60Corporate Note Subtotal 98,045,000.00 100,890,981.75 98,200,622.85 -2,690,358.90CARMAX AUTO OWNER TRUST 4/21/2021 0.520% 2/17/2026 14314QAC8 2,375,000.00 AAA 4/21/2021 2,374,488.19 0.52% 2,353,197.50 -21,290.69DISCOVER CARD EXECUTION NOTE TRUST 9/27/2021 0.580% 9/15/2026 254683CP8 2,100,000.00 AAA 9/27/2021 2,099,550.39 0.58% 2,053,506.00 -46,044.39HONDA AUTO RECEIVABLES OWNER T 11/24/2021 0.880% 1/21/2026 43815GAC3 1,615,000.00 NR 11/24/2021 1,614,659.56 0.89% 1,596,815.10 -17,844.46HYUNDAI AUTO RECEIVABLES TRUST 4/28/2021 0.380% 9/15/2025 44933LAC7 1,575,000.00 AAA 4/28/2021 1,574,834.31 0.38% 1,558,541.25 -16,293.06 HYUNDAI AUTO RECEIVABLES TRUST 11/17/2021 0.740% 5/15/2026 44935FAD6 1,245,000.00 AAA 11/17/2021 1,244,722.12 0.75% 1,228,068.00 -16,654.12TOYOTA AUTO RECEIVABLES OWNER 9/27/2021 0.430% 1/15/2026 89239BAC5 2,645,000.00 AAA 9/27/2021 2,644,789.19 0.43% 2,601,331.05 -43,458.14Asset-Backed Security Subtotal 11,555,000.00 11,553,043.76 11,391,458.90 -161,584.86 BARCLAYS BANK PLC 2/12/2021 0.290% 2/4/2022 06742TWL6 11,000,000.00 A-1 2/12/2021 11,000,000.00 0.29% 11,000,220.00 220.00HSBC BANK USA NA 2/26/2021 0.250% 2/25/2022 40435RKU4 7,360,000.00 A-1 2/26/2021 7,360,000.00 0.25% 7,360,736.00 736.00Certificate of Deposit Subtotal 18,360,000.00 18,360,000.00 18,360,956.00 956.00 WELLS FARGO PUBLIC INSTITUTION 2/1/2022 992995944 1,086,872.51 9/1/2020 1,086,872.51 0.07% 1,086,872.51 - LOCAL AGENCY INVESTMENT FUND 2/1/2022 44,893,981.38 9/30/1997 44,893,981.38 0.62% 44,893,981.38 -DREYFUS TREASURY 2/1/2022 2,146,379.73 10/31/1997 2,146,379.73 0.03% 2,146,379.73 -Cash Equivalent Subtotal 48,127,233.62 48,127,233.62 48,127,233.62 -Grand Total Count 132 791,767,233.62 796,641,388.09 792,219,821.67 (4,421,566.42) 2/10/2022 4:37 PM 4 of 4
Attachment A
Attachment 3
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer in from the Storm
Drain Capital Fund / General
Fund - Capital Projects
Reserve
565,000 565,000 Recognizes a transfer from the Storm Drain Capital Fund and increases the General Fund - Capital
Projects Reserve in the amount of $565,000 to
return project savings from the Laurelwood Pump
Station Rehabilitation project. These savings are
expected to be used to fund other Storm Drain
needs as part of the FY 22/23 and FY 23/24
Proposed CIP Biennial Budget (five affirmative
Council votes required to appropriate additional
revenue).

Fire Department - Other
Agencies Revenue (Wildland
Deployment Reimbursements)
1,792,424 Recognizes wildland deployment reimbursements for the FY 2021/22 incidents including the
Bechwourth, River, Dixie, Caldor, KNP Complex,
and Fawn incidents and the FY 2020/21 North
Complex USAR Support incident and appropriates
the funding to cover the associated costs and
support Fire Department operations. Of this amount,
$1,212,770 is recommended to be allocated to the
Fire Department and $579,654 is recommended to
be transferred to the Vehicle Replacement Fund to
fund a portion of the cost to replace a fire engine
(five affirmative Council votes required to
appropriate additional revenue).

Fire Department 1,082,424 Increases the Fire Department budget by a net $1,082,424. This reflects an increase of $1,212,770
from wildland deployment reimbursements to cover
the associated costs and support Fire Department
operations. This increase is partially offset by a
reduction of $130,346 to reflect the reallocation of
capital outlay funding designated for a fire engine
replacement from the Fire Department budget to the
Vehicle Replacement Fund (five affirmative
Council votes required to appropriate additional
revenue).

Transfer to the Vehicle
Replacement Fund
710,000 Establishes a transfer to the Vehicle Replacement Fund of $710,000 to replace a fire engine. This
amount will be funded from the wildland deployment
reimbursement ($579,654) and by reallocating
$130,436 from the Fire Department's Capital Outlay
budget that was designated to replace a fire engine
(five affirmative Council votes required to
appropriate additional revenue).

General Fund (001)
FY 2021/22 Budget Amendments
1 Attachment 3
FY 2021/22 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer from the Parks and
Recreation Capital Fund/Land
Sale Reserve
135,559 135,559 Increases the Transfer from the Parks and Recreation Capital Fund and allocates the funding
to the Land Sale Reserve as partial repayment of
the loan for the Reed Street - Grant Street Sports
Parks Project. This reflects the transfer of
reimbursements previously received from Comcast
and AT&T that were recognized in the Parks and
Recreation Capital Fund. In 2019, the City
completed a utility joint trench for utilities along
Reed Street and Grant Street. Comcast and AT&T
reimbursed the City for their portion of costs for the
joint trench work as part of the construction of the
project (five affirmative Council votes required to
appropriate additional revenue).

Transfer to the Fire
Department Operating Grant
Trust Fund
63 Establishes a transfer of $63 to the Fire Grant Trust Fund to correct the Assistance to Firefighters Grant
COVID Supplemental city match from $508 to $571,
as required by the granting agency. The grant
requires the City to provide a city match of 10% of
the total grant award of $5,709 (five affirmative
Council votes required for the use of unused
balances).

Budget Stabilization Reserve (63) Decreases the Budget Stabilization Reserve to offset the actions above (five affirmative Council
votes required for the use of unused balances).
2,492,983 2,492,983
Department/Item
Source of
Funds
Use of
Funds Explanation
Santa Clara Convention Center
Condition Assessment Repair
4,430 Increases the Santa Clara Convention Center
Condition Assessment Repair Project to allocate a
refund received related to an emergency door repair
overpayment. Additionally, the Convention Center
received proceeds from recycling aluminum strips
that were removed from the walls, as they were no
longer needed (five affirmative Council votes
required for the use of unused balances).

Ending Fund Balance (4,430) Decreases the ending fund balance to offset the action recommended above (five affirmative
Council votes required for the use of unused
balances).
- -
Convention Center Capital Fund (865)
General Fund (001)
2 Attachment 3
FY 2021/22 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Other Agencies Revenue (252,669) Decreases the estimate for Other Agencies Revenue by $252,669 as grant funding is no longer
anticipated to be received for the Clean Energy and
Carbon Reduction project (majority affirmative
Council votes required).

Clean Energy and Carbon
Reduction
(252,669) Decreases the Clean Energy and Carbon Reduction project by $252,699 to reflect a reduction in budget
as grant funding is no longer anticipated to be
received. Work associated with this grant will no
longer be performed, however, other battery
installations will still move forward (majority
affirmative Council votes required).

Other Revenue - Funding Shift
for Transmission System
Reinforcement Project
- Shifts funding in the Other Revenue category for the
Transmission System Reinforcement project from
Developer Contributions to Load Development Fee.

The budgeted amount will remain $5.8 million.
(majority affirmative Council votes required).
(252,669) (252,669)
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer from the General
Fund/Assistance to Firefighters
Grant COVID Supplemental
Grant - City Match
63 63 Establishes a transfer of $63 from the General Fund and increases the Assistance to Firefighters Grant
COVID Supplemental Grant - City Match by $63.

This action increases the city match from $508 to
$571, as required by the granting agency. The grant
requires a city match of 10% of the total grant award
of $5,709 (five affirmative Council votes required
to appropriate additional revenue).

State Homeland Security Grant
Program 2018 - Radiation
Detection Backpacks
(87,392) (87,392) Decreases the 2018 State Homeland Security Grant award appropriation and revenue for Radiation
Detection Backpacks by $87,392, as the equipment
was awarded under the Bay Area Urban Securities
Initiative grant program in FY 2021/22 (majority
affirmative Council votes required).

State Homeland Security Grant
Program 2018 - Mass
Spectroscopy Devices
3,473 3,473 Increases the 2018 State Homeland Security Grant award appropriation and revenue for Mass
Spectroscopy Devices by $3,473, to include
additional grant funds awarded by the granting
agency for sales tax reimbursement of the
equipment (five affirmative Council votes
required to appropriate additional revenue).
(83,856) (83,856)
Electric Utility Capital Fund (591)
Fire Operating Grant Trust Fund (178)
3 Attachment 3
FY 2021/22 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
HOME Investment
Partnerships - American
Rescue Plan
80,205 80,205 Recognizes and appropriates grant funded awarded for the HOME Investment Partnership - American
Rescue Plan Program. This amount reflects 5% of
the total grant agreement of $1,604,104. The
remaining grant amount will be appropriated once
the Community Development Department
completes a substantial amendment and a second
grant agreement is signed (five affirmative Council
votes required to appropriate additional
revenue). 80,205 80,205
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer to the General Fund -
Land Sale Reserve (Loan
Repayment for Reed and
Grant Sports Park)
135,559 Increases the Transfer to the General Fund - Land Sale Reserve by $135,559 as partial repayment of
the loan for the Reed Street - Grant Street Sports
Parks Project. This reflects the transfer of
reimbursements previously received from Comcast
and AT&T that were recognized in the Parks and
Recreation Capital Fund. In 2019, the City
completed a utility joint trench for utilities along
Reed Street and Grant Street. Comcast and AT&T
reimbursed the City for their portion of costs for the
joint trench work as part of the construction of the
project. Because this project has been completed,
these reimbursements are recommended to partially
repay the project loan (five affirmative Council
votes required for the use of unused balances).

Ending Fund Balance (135,559) Decreases the Ending Fund Balance to offset the action above (five affirmative Council votes
required for the use of unused balances).
- -
Parks and Recreation Capital Fund (532)
Housing and Urban Development Fund (562)
4 Attachment 3
FY 2021/22 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Laurelwood Pump Station
Rehabilitation
(565,000) Decreases the Laurelwood Pump Station
Rehabilitation Project by $565,000 based on
anticipated project savings. These funds are
recommended to be returned to the General Fund -
Capital Projects Reserve (majority affirmative
Council votes required).

Transfer to the General Fund -
Capital Projects Reserve
565,000 Establishes a transfer to the General Fund - Capital Projects Reserve in the amount of $565,000 to
return project savings from the Laurelwood Pump
Station Rehabilitation project. These savings are
expected to be used to fund other Storm Drain
needs as part of the FY 22/23 and FY 23/24
Proposed CIP Biennial Budget (majority
affirmative Council votes required).
- -
Department/Item
Source of
Funds
Use of
Funds Explanation
Pedestrian and Bicycle
Enhancement Facilities
(750,000) Decreases the Pedestrian and Bicycle
Enhancement Facilities Project by $750,000 to
provide funding for the Santa Clara School Access
Improvement Project (majority affirmative Council
votes required).

Santa Clara School Access
Improvement Project
750,000 Increases the Santa Clara School Access
Improvement Project by $750,000 (from $1,454,288
to $2,204,288) based on updated project cost
estimates. Project cost estimates have increased
due to the introduction of a traffic signal modification at one location, which was not previously included in
the project plan. This project is anticipated to go to
bid and be awarded in FY 2021/22 (majority
affirmative Council votes required).
- -
Storm Drain Capital Fund (535)
Streets and Highways Capital Fund (533)
5 Attachment 3
FY 2021/22 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer in from the General
Fund / Capital Outlay
710,000 710,000 Recognizes a transfer from the General Fund in the amount of $710,000 and increases the Capital
Outlay budget by the same amount. Funding is
provided from the Fire Department budget and
wildland deployment reimbursements to purchase a
fire engine. The new engine will replace a reserve
fire engine that was not previously part of the
replacement schedule. The replacement
amortization for this engine will be incorporated into
the FY 22/23 Proposed Operating Budget (five
affirmative Council votes required to appropriate
additional revenue).
710,000 710,000
Vehicle Replacement Fund (050)
6 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-113 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Action on an Agreement with Revel Environmental Manufacturing, Inc. for the Purchase and Installation of Full Trash Capture Catch Basin Inserts

COUNCIL PILLARS
Deliver and Enhance High Quality Efficient Services and Infrastructure, and Promote Sustainability and Environmental Protection

BACKGROUND
The City of Santa Clara’s stormwater discharges are regulated by a Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP) issued by the California Regional Water Quality Control Board (RWQCB). One of the provisions of the MRP requires permittees to achieve no visual impact from trash (100 percent trash load reduction) in the stormwater system by 2022. In 2021 the City achieved an 84 percent trash load reduction through a combination of full trash capture (FTC) netting systems at the Westside Retention Basin; 574 FTC devices installed in individual stormwater catch basins located in City streets; enhanced commercial/industrial street sweeping; and the implementation of single-use carryout bag and expanded polystyrene foam food service ware ordinances.

An FTC device is a 5-millimeter mesh screen that traps particles such as cans, plastics, paper, cigarette butts and other debris from the stormwater system before they enter creeks and rivers in route to the San Francisco Bay. Devices have been strategically installed at higher trash load generating locations which yields larger amounts of reduction credit. Future trash load reductions will need to be achieved by installing devices in medium trash load generating locations. The City’s urban runoff pollution prevention consultant, EOA, Inc. has identified 470 catch basin inlets in which to install additional FTC devices to achieve the 100 percent trash load reduction mandate.

DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Request for Proposals (RFP) was conducted for this procurement, with the award recommendation based on “best value.” The factors considered in the evaluation were proposal content/structure, experience, technical capability, and cost.

In January 2022, an RFP for the Purchase and Installation of FTC Catch Basin Inserts was published using the City’s e-procurement system. Four proposals were received from the following firms:
- DownStream Services, Inc.
- Revel Environmental Manufacturing, Inc.
- Safe Drain Stormwater Holdings, Inc.
- United Storm Water, Inc.

City of Santa Clara Page 1 of 3 Printed on 4/14/2022
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22-113 Agenda Date: 4/19/2022
Proposals were independently evaluated by a three-member evaluation team comprised of three representatives from the Department of Public Works. Staff recommends award of contract to Revel Environmental Manufacturing, Inc. (REM) for having submitted the best value proposal. In their proposal REM demonstrated the following:
· A proven track record with installing FTC devices in 25 municipalities covered under the same MRP, including Santa Clara;
· The best installation progress reports;
· A Google Earth overlay feature showing the location and device configuration details; and · The lowest cost.

Under the proposed agreement, REM will provide and install the FTC catch basin inserts at 470 locations in the first year of the contract. In addition, there are four, one-year options to extend the term of the agreement for a total of five years to install additional FTC catch basin inserts to comply with future RWQCB mandated trash load reduction requirements. Pricing will be fixed for the initial one-year term. After the initial term, price adjustments will be considered subject to approval by the City.

ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.

FISCAL IMPACT
The amount paid to REM over the initial one-year term of the agreement to purchase and install FTC devices shall not exceed $301,000, which includes a 10 percent contingency. Funds are available in the Storm Drain Capital Improvement Project Fund’s Urban Runoff Pollution Prevention Program project.

COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.

RECOMMENDATION

1. Authorize the City Manager’s Office to execute an Agreement with Revel Environmental Manufacturing, Inc. for the purchase and installation of 470 full trash capture catch basin inserts for a one-year term, with maximum compensation not-to-exceed $301,000 (including a 10 percent contingency); and

2. Authorize the City Manager’s Office to execute up to four one-year options to extend the term of City of Santa Clara Page 2 of 3 Printed on 4/14/2022
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22-113 Agenda Date: 4/19/2022
the Agreement, subject to the appropriation of funds.

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager

ATTACHMENT

1. Agreement
City of Santa Clara Page 3 of 3 Printed on 4/14/2022
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Agreement with Revel Environmental Manufacturing, Inc. Page 1 Rev. 07-01-18
EBIX Insurance No. S200003071

AGREEMENT FOR SERVICES

BETWEEN THE

CITY OF SANTA CLARA, CALIFORNIA,
AND
REVEL ENVIRONMENTAL MANUFACTURING, INC.

PREAMBLE
This Agreement is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Revel Environmental Manufacturing, Inc, a California corporation, (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”

RECITALS
A. City desires to secure the services more fully described in this Agreement, at Exhibit A1, entitled “Scope of Services”;
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.

The Parties agree as follows:

AGREEMENT TERMS AND CONDITIONS

1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:

Exhibit A1 – Scope of Services
Exhibit A2 – Product Warranty
Exhibit B – Schedule of Fees
Exhibit C – Insurance Requirements
Exhibit D – Labor Compliance Addendum
Exhibit E – Notice of Exercise of Option to Extend Agreement Agreement with Revel Environmental Manufacturing, Inc. Page 2 Rev. 07-01-18
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.

2. TERM OF AGREEMENT
A. Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on April 19, 2022 and terminate on April 30, 2023.

B. After the Initial Term, the City reserves the right, at its sole discretion, to extend the term of this Agreement for up to four (4) additional one-year terms through April 30, 2027 (“Option Periods”), subject to the appropriation of funds. See Exhibit E for Notice of Exercise to Option to Extend Agreement Form.

3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A1 within the time stated in Exhibit A1. Time is of the essence.

4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.

5. QUALIFICATIONS OF CONTRACTOR - STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor’s representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.

Agreement with Revel Environmental Manufacturing, Inc. Page 3 Rev. 07-01-18

6. COMPENSATION AND PAYMENT
In consideration for Contractor’s complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled “SCHEDULE OF FEES.” The maximum compensation of this Agreement is Three Hundred One Thousand Dollars ($301,000), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work performed or materials provided in excess of the maximum compensation shall be at Contractor’s expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.

7. TERMINATION
A. Termination for Convenience. City shall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days’ prior written notice to Contractor.

B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.

C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.

8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.

Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.

9. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

Agreement with Revel Environmental Manufacturing, Inc. Page 4 Rev. 07-01-18

10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their performance of Services under this Agreement.

11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.

12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.

13. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.

Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees Agreement with Revel Environmental Manufacturing, Inc. Page 5 Rev. 07-01-18
to assist City in meeting City’s reporting requirements to the State and other agencies with respect to Contractor’s Services hereunder.

14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and attorney’s fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with the Services performed by Contractor pursuant to this Agreement – including claims of any kind by Contractor’s employees or persons contracting with Contractor to perform any portion of the Scope of Services – and shall expressly include passive or active negligence by City connected with the Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of City; the obligation to defend is not similarly limited.

B. Contractor’s obligation to protect, defend, indemnify, and hold harmless in full City and City’s employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.

C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act (“Act”) and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor’s responsibilities under the Act.

15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.

16. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City’s review, acceptance nor payments for any of the Services required under this Agreement Agreement with Revel Environmental Manufacturing, Inc. Page 6 Rev. 07-01-18
shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.

17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:

City of Santa Clara
Attention: Public Works Department – Street Division
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected], and [email protected] And to Contractor addressed as follows:

Revel Environmental Manufacturing, Inc.

Attention: Marcel Sloane
960-B Detroit Avenue
Concord, CA 94518
and by e-mail at [email protected]
The workday the e-mail was sent shall control the date notice was deemed given.

An e-mail transmitted after 1:00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.

18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to “The Code of the City of Santa Clara, California” (“SCCC”). In particular, Contractor’s attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City’s Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).

19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and Agreement with Revel Environmental Manufacturing, Inc. Page 7 Rev. 07-01-18
following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.

20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.

21. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City’s name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City.

22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.

23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.

24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.

25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.

Agreement with Revel Environmental Manufacturing, Inc. Page 8 Rev. 07-01-18
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated:

Office of the City Attorney
City of Santa Clara
Office of the City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
“CITY”
REVEL ENVIRONMENTAL MANUFACTURING, INC.
a California corporation
Dated:

By (Signature):

Name: Marcel Sloane
Title: Regional Manager
Principal Place of
Business Address:
960-B Detroit Avenue
Concord, CA 94518
Email Address: [email protected]
Telephone: (925) 676-4736
Fax: (925) 676-8676
“CONTRACTOR”
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 1 Rev. 07-01-18
EXHIBIT A1

SCOPE OF SERVICES
The following Scope of Services defines the services and responsibilities of Contractor and City to provide and install full trash capture¹ (FTC) catch basin inserts at various trans management areas in the city.

The Scope of Services, including Exhibit A1 and Contractor’s proposal response dated February 11, 2022 provide context, supplemental information, and are incorporated by reference to the extent not inconsistent with the Agreement.

1. Introduction/Background

1.1.The Municipal Regional Stormwater NPDES Permit (MRP) requires permittees to achieve no visual impact from trash by the year 2022. The City has been divided into thirteen trash management areas (TMA). The City’s Long Term Trashload Reduction Plan calls for the installation of FTC catch basin inserts to meet the trash reduction requirements described in the MRP.

1.2.During FY 2021/2022, the City is planning to purchase and install 470 FTC catch basin inserts1. The City has the option to purchase and request installation of additional FTC catch basin inserts during the term of the agreement in order to maintain 100% trashload reduction.

2. Service Requirements

2.1.Contractor will provide all labor, parts, materials, and equipment to provide and install FTC catch basin inserts as specified herein.

2.2.Installation will begin upon execution of agreement and all FTC catch basin inserts shall be installed by September 30, 2022. Time extensions may be granted by the City on a day to day basis due to supply issues should the delivery of devices take more than 60 days. Contractor must contact the City immediately should any delays in device delivery arise.

2.3.Contractor will follow all applicable state, federal, local laws and policies when providing servicers. In addition, Contractor will follow all industry standards for installation of FTC catch basin inserts.

2.4.Contractor will coordinate with the City’s Project Manager prior to any installation.
________________
1 Full trash capture devices are defined as “any device or series of devices that traps all particles retained by a 5mm mesh screen and has a design treatment capacity of not less than the leak flow rate resulting from a one-year, one-hour, storm in the tributary drainage catchment area. Full capture systems are approved by the San Francisco Bay Regional Water Quality Control Board.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 2 Rev. 07-01-18

2.5.Pre-Installation Meeting (Virtual or In-Person): Contractor and City will review and discuss operation plans including project timelines, field assessment, fabrication, catch basin cleaning, barricades and no parking signage, installation, project updates and communication, and operational hours.

2.6.Field Assessment: Contractor will confirm and/or refine location information, measure and assess each catch basin structure to develop an initial FTC device installation plan, and to identify any issues that may affect the installation process (i.e. catch cleaning requirement, barricades and signage).

2.7.Contractor will submit initial installation plan to City Project Manager for approval utilizing a “working spread-sheet” listing each location with corresponding plan details.

2.8.Contractor will acquire all materials and begin device fabrication.

2.9.After City approval of installation plan Contractor will proceed with the installation process per approved plan. Contractor will note any unanticipated issues specific to each location during the field installation process. Contractor will update the “working spread-sheet” to consolidate the information for the City Project Manager to review and approve of necessary plan changes.

2.10. Contractor will be available for field post-installation walk-throughs as necessary for acceptance by City Project Manager.

3. Estimated Project Manhour Resource Requirements

3.1.Contractor estimates the following project manhour resource requirements:

3.1.1. Assessment: (10 to 15) 8-hour field days

3.1.2. Fabrication: (10 to 15) 2-person 8-hour shop warehouse days

3.1.3. Installation: (55 to 60) 2 and 3-person crew 8-hour field days

3.1.4. Project Management: (5 to 8) 8-hour office and field days

3.1.5. Administration: (3 to 5) 8-hour office days

4. FTC Catch Basin Inserts Minimum Requirements

4.1.Must be certified by the State Water Resources Control Board and at a minimum should be designed to trap all particles retained by a 5 mm mesh screen and have a treatment capacity that exceed the peak flow rate resulting from a oneyear, one-hour storm.

4.2.Devices that utilize a pipe connector screen are preferred and should be used in all locations where feasible.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 3 Rev. 07-01-18

4.3.Device specifications for the device Contractor will provide can be found in the following link:
https://www.casqa.org/sites/default/files/downloads/rem_inc._ftc_device_fact_sh eet_triton_perf-ftc_2021_1.pdf

5. Trash Management Area Map

5.1.The City of Santa Clara Trash Management Area is identified in the below map and this Scope of Services (See next page).

Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 4 Rev. 07-01-18
City of Santa Clara Trash Management Area
City of Santa Clara - Trash Management Areas
Trash Management Areas
, 0 4 1
2 C] 5 D a
LJ 3 0 6 LJ 9
Guadalupe
Slough
t
(
o ,o
c::::J 11
c::::J 12
I_
[:] 13
10 ...
!!
0 .
1 .,.
.. t· -
~
J ll
.. ~ " 5 <!! §
ti
fllf1. ~ Gariwi, {Cj OpenStreeMafl COl'lfJltMJIM 1 anCI 1l'le GIS U&e:J CCWl'ITIU'llty Street
Freeway N
D Ageocy Boor>dary A
- Creek 025 0.5 I -·
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 5 Rev. 07-01-18

5.2.A summary of the proposed catch basin locations for each of the targeted TMAs is provided in the below table:

Proposed Catch Basin Locations
Row # Latitude Longitude Trash
Generation TMA
1 37.3889 -121.9865 High 1
2 37.3888 -121.9859 High 1
3 37.3886 -121.9859 High 1
4 37.3499 -121.9327 Mod 3
5 37.3246 -121.9765 Mod 4
6 37.3248 -121.9752 Mod 4
7 37.3244 -121.9951 High 4
8 37.3237 -121.9928 High 4
9 37.3298 -121.9504 High 4
10 37.373 -121.9656 Mod 5
11 37.3636 -121.9412 Mod 5
12 37.3632 -121.9413 Mod 5
13 37.374 -121.9593 Mod 5
14 37.374 -121.9597 Mod 5
15 37.3619 -121.9369 Mod 5
16 37.3611 -121.9377 Mod 5
17 37.3664 -121.9519 Mod 5
18 37.3662 -121.9518 Mod 5
19 37.3608 -121.9386 Mod 5
20 37.3699 -121.9548 Mod 5
21 37.3698 -121.9547 Mod 5
22 37.3703 -121.9458 Mod 5
23 37.3619 -121.9369 Mod 5
24 37.3618 -121.9367 Mod 5
25 37.3607 -121.9389 Mod 5
26 37.3649 -121.9556 Mod 5
27 37.361 -121.9389 Mod 5
28 37.3606 -121.9411 Mod 5
29 37.3607 -121.9417 Mod 5
30 37.3605 -121.9417 Mod 5
31 37.3601 -121.9415 Mod 5
32 37.3564 -121.935 Mod 5
33 37.3603 -121.9351 Mod 5
34 37.3604 -121.935 Mod 5
35 37.3716 -121.9428 Mod 5
36 37.3717 -121.9427 Mod 5
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 6 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
37 37.3711 -121.9425 Mod 5
38 37.3712 -121.9422 Mod 5
39 37.3698 -121.9417 Mod 5
40 37.3698 -121.9413 Mod 5
41 37.3746 -121.9578 Mod 5
42 37.3745 -121.9578 Mod 5
43 37.3745 -121.9578 Mod 5
44 37.3742 -121.9578 Mod 5
45 37.3663 -121.9621 Mod 5
46 37.3662 -121.9621 Mod 5
47 37.3663 -121.9604 Mod 5
48 37.3662 -121.9604 Mod 5
49 37.3661 -121.9597 Mod 5
50 37.3661 -121.9593 Mod 5
51 37.3661 -121.9583 Mod 5
52 37.3663 -121.9582 Mod 5
53 37.3665 -121.9586 Mod 5
54 37.3677 -121.9592 Mod 5
55 37.3694 -121.9593 Mod 5
56 37.3694 -121.96 Mod 5
57 37.3696 -121.96 Mod 5
58 37.3696 -121.9622 Mod 5
59 37.3694 -121.9622 Mod 5
60 37.3694 -121.9636 Mod 5
61 37.3694 -121.9632 Mod 5
62 37.369 -121.9566 Mod 5
63 37.365 -121.9567 Mod 5
64 37.3641 -121.9565 Mod 5
65 37.3641 -121.9564 Mod 5
66 37.365 -121.955 Mod 5
67 37.365 -121.9537 Mod 5
68 37.3649 -121.9538 Mod 5
69 37.365 -121.9525 Mod 5
70 37.3649 -121.9525 Mod 5
71 37.365 -121.9513 Mod 5
72 37.3594 -121.9406 Mod 5
73 37.3669 -121.9504 Mod 5
74 37.3678 -121.9504 Mod 5
75 37.3683 -121.9504 Mod 5
76 37.3683 -121.9501 Mod 5
77 37.3699 -121.9505 Mod 5
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 7 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
78 37.3697 -121.9505 Mod 5
79 37.3713 -121.9504 Mod 5
80 37.3713 -121.9501 Mod 5
81 37.3732 -121.9504 Mod 5
82 37.3584 -121.9473 Mod 5
83 37.3584 -121.9473 Mod 5
84 37.3602 -121.9494 Mod 5
85 37.3601 -121.9494 Mod 5
86 37.3613 -121.95 Mod 5
87 37.3612 -121.95 Mod 5
88 37.3611 -121.9513 Mod 5
89 37.361 -121.9513 Mod 5
90 37.3619 -121.95 Mod 5
91 37.3619 -121.9499 Mod 5
92 37.3619 -121.9494 Mod 5
93 37.362 -121.9487 Mod 5
94 37.3627 -121.9498 Mod 5
95 37.3624 -121.9498 Mod 5
96 37.3624 -121.9502 Mod 5
97 37.363 -121.9493 Mod 5
98 37.3635 -121.9506 Mod 5
99 37.3634 -121.9506 Mod 5
100 37.3626 -121.9519 Mod 5
101 37.3625 -121.9521 Mod 5
102 37.3624 -121.9518 Mod 5
103 37.3625 -121.9532 Mod 5
104 37.3625 -121.9541 Mod 5
105 37.3632 -121.9556 Mod 5
106 37.3633 -121.9556 Mod 5
107 37.3739 -121.9649 Mod 5
108 37.3727 -121.9594 Mod 5
109 37.3713 -121.9597 Mod 5
110 37.3699 -121.9565 Mod 5
111 37.3697 -121.9564 Mod 5
112 37.3664 -121.9407 Mod 5
113 37.3669 -121.9413 Mod 5
114 37.3679 -121.9417 Mod 5
115 37.3646 -121.9396 Mod 5
116 37.3589 -121.941 Mod 5
117 37.3589 -121.9404 Mod 5
118 37.3585 -121.9405 Mod 5
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 8 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
119 37.3591 -121.9397 Mod 5
120 37.3583 -121.9386 Mod 5
121 37.3586 -121.9366 Mod 5
122 37.3597 -121.9364 Mod 5
123 37.3605 -121.9352 Mod 5
124 37.3586 -121.9333 Mod 5
125 37.3702 -121.9471 Mod 5
126 37.37 -121.9471 Mod 5
127 37.37 -121.9491 Mod 5
128 37.3699 -121.949 Mod 5
129 37.3632 -121.9462 Mod 5
130 37.3632 -121.9463 Mod 5
131 37.3633 -121.9467 Mod 5
132 37.3632 -121.9467 Mod 5
133 37.3567 -121.9352 High 5
134 37.3581 -121.9388 High 5
135 37.3574 -121.9371 High 5
136 37.3594 -121.9448 High 5
137 37.3595 -121.9446 High 5
138 37.3607 -121.9454 High 5
139 37.3606 -121.9455 High 5
140 37.3603 -121.9483 High 5
141 37.3645 -121.9499 High 5
142 37.3645 -121.9496 High 5
143 37.3662 -121.9486 High 5
144 37.3649 -121.9513 High 5
145 37.3666 -121.944 High 5
146 37.3664 -121.9417 High 5
147 37.3663 -121.9413 High 5
148 37.3648 -121.9424 High 5
149 37.3646 -121.9423 High 5
150 37.3635 -121.9441 High 5
151 37.3634 -121.9441 High 5
152 37.3634 -121.9417 High 5
153 37.3568 -121.9325 Very High 5
154 37.3585 -121.9331 Very High 5
155 37.3841 -121.9511 Mod 7
156 37.3891 -121.9532 High 7
157 37.391 -121.9509 High 7
158 37.3899 -121.9529 High 7
159 37.3896 -121.9533 High 7
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 9 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
160 37.3558 -121.9528 Mod 8
161 37.3557 -121.9527 Mod 8
162 37.3597 -121.9548 Mod 8
163 37.3596 -121.9547 Mod 8
164 37.3598 -121.9545 Mod 8
165 37.3597 -121.9544 Mod 8
166 37.3588 -121.9511 Mod 8
167 37.3587 -121.9509 Mod 8
168 37.3588 -121.951 Mod 8
169 37.3594 -121.9563 Mod 8
170 37.3593 -121.9563 Mod 8
171 37.3604 -121.954 Mod 8
172 37.3604 -121.9538 Mod 8
173 37.3603 -121.9538 Mod 8
174 37.3599 -121.9528 Mod 8
175 37.3598 -121.9523 Mod 8
176 37.3597 -121.9523 Mod 8
177 37.3598 -121.9519 Mod 8
178 37.3597 -121.9519 Mod 8
179 37.3589 -121.9529 Mod 8
180 37.3588 -121.953 Mod 8
181 37.3591 -121.9532 Mod 8
182 37.3576 -121.9502 Mod 8
183 37.3575 -121.9504 Mod 8
184 37.3568 -121.95 Mod 8
185 37.3563 -121.9511 Mod 8
186 37.3563 -121.951 Mod 8
187 37.3562 -121.9512 Mod 8
188 37.3555 -121.9574 Mod 8
189 37.3557 -121.9594 High 8
190 37.3561 -121.9594 High 8
191 37.3559 -121.9594 High 8
192 37.3561 -121.9593 High 8
193 37.3567 -121.9469 Very High 8
194 37.3565 -121.9468 Very High 8
195 37.3698 -121.9905 Mod 9
196 37.3698 -121.9879 Mod 9
197 37.37 -121.9878 Mod 9
198 37.3698 -121.9877 Mod 9
199 37.367 -121.9932 Mod 9
200 37.367 -121.9906 Mod 9
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 10 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
201 37.3678 -121.9957 Mod 9
202 37.367 -121.9945 Mod 9
203 37.3698 -121.9867 Mod 9
204 37.369 -121.9905 Mod 9
205 37.367 -121.9879 Mod 9
206 37.3698 -121.9896 Mod 9
207 37.3699 -121.9895 Mod 9
208 37.3658 -121.9942 Mod 9
209 37.3658 -121.9944 Mod 9
210 37.3641 -121.9871 Mod 9
211 37.3699 -121.9925 High 9
212 37.3698 -121.9925 High 9
213 37.3668 -121.9948 High 9
214 37.3668 -121.9947 High 9
215 37.3871 -121.9841 Mod 10
216 37.387 -121.984 Mod 10
217 37.3842 -121.9848 Mod 10
218 37.3841 -121.9848 Mod 10
219 37.3824 -121.9853 Mod 10
220 37.3823 -121.9854 Mod 10
221 37.3821 -121.9863 Mod 10
222 37.3808 -121.9854 Mod 10
223 37.3804 -121.9854 Mod 10
224 37.3803 -121.982 Mod 10
225 37.374 -122.0011 Mod 10
226 37.374 -121.9982 Mod 10
227 37.3757 -121.9976 Mod 10
228 37.374 -121.9967 Mod 10
229 37.3775 -121.9926 Mod 10
230 37.374 -121.994 Mod 10
231 37.3741 -121.9927 Mod 10
232 37.3741 -121.9897 Mod 10
233 37.3741 -121.9854 Mod 10
234 37.3742 -121.983 Mod 10
235 37.3775 -121.9836 Mod 10
236 37.3773 -121.98 Mod 10
237 37.374 -121.9762 Mod 10
238 37.3736 -121.9751 Mod 10
239 37.3727 -121.9746 Mod 10
240 37.3712 -121.9734 Mod 10
241 37.372 -121.9721 Mod 10
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 11 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
242 37.3737 -121.9721 Mod 10
243 37.3736 -121.972 Mod 10
244 37.3741 -121.9692 Mod 10
245 37.3685 -121.9689 Mod 10
246 37.3739 -121.9669 Mod 10
247 37.3737 -121.9664 Mod 10
248 37.3696 -121.9669 Mod 10
249 37.3762 -121.9675 Mod 10
250 37.376 -121.9676 Mod 10
251 37.3762 -121.9667 Mod 10
252 37.376 -121.9667 Mod 10
253 37.3784 -121.9675 Mod 10
254 37.3784 -121.9664 Mod 10
255 37.3787 -121.9669 Mod 10
256 37.3789 -121.9668 Mod 10
257 37.3808 -121.967 Mod 10
258 37.3757 -121.9992 Mod 10
259 37.3755 -121.999 Mod 10
260 37.3764 -121.9974 Mod 10
261 37.3765 -121.9963 Mod 10
262 37.3763 -121.9963 Mod 10
263 37.377 -121.9962 Mod 10
264 37.377 -121.9957 Mod 10
265 37.3761 -121.9947 Mod 10
266 37.3745 -121.9927 Mod 10
267 37.3745 -121.9925 Mod 10
268 37.3756 -121.9925 Mod 10
269 37.3759 -121.9927 Mod 10
270 37.3771 -121.9924 Mod 10
271 37.377 -121.9926 Mod 10
272 37.3772 -121.988 Mod 10
273 37.3772 -121.9878 Mod 10
274 37.3741 -121.9881 Mod 10
275 37.3741 -121.9877 Mod 10
276 37.3742 -121.9811 Mod 10
277 37.375 -121.9809 Mod 10
278 37.375 -121.9807 Mod 10
279 37.3742 -121.9792 Mod 10
280 37.374 -121.9792 Mod 10
281 37.374 -121.9781 Mod 10
282 37.3754 -121.9779 Mod 10
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 12 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
283 37.3751 -121.9775 Mod 10
284 37.3743 -121.9773 Mod 10
285 37.374 -121.9773 Mod 10
286 37.3741 -121.9744 Mod 10
287 37.3742 -121.9738 Mod 10
288 37.3742 -121.972 Mod 10
289 37.3742 -121.9693 Mod 10
290 37.3748 -121.9663 Mod 10
291 37.3747 -121.9678 Mod 10
292 37.3754 -121.9703 Mod 10
293 37.3754 -121.9701 Mod 10
294 37.3771 -121.9707 Mod 10
295 37.3769 -121.9707 Mod 10
296 37.3746 -121.9786 High 10
297 37.3852 -121.9797 High 10
298 37.395 -121.9583 Mod 11
299 37.3963 -121.9549 Mod 11
300 37.3963 -121.9527 Mod 11
301 37.3949 -121.9505 Mod 11
302 37.3909 -121.9579 Mod 11
303 37.3872 -121.9663 Mod 11
304 37.3934 -121.9619 Mod 11
305 37.3913 -121.9621 Mod 11
306 37.3829 -121.9624 Mod 11
307 37.3791 -121.9487 Mod 11
308 37.381 -121.9497 Mod 11
309 37.3812 -121.9496 Mod 11
310 37.3804 -121.9453 Mod 11
311 37.3806 -121.9453 Mod 11
312 37.3805 -121.9451 Mod 11
313 37.3804 -121.9426 Mod 11
314 37.3812 -121.9428 Mod 11
315 37.3813 -121.9426 Mod 11
316 37.3806 -121.9404 Mod 11
317 37.3819 -121.9414 Mod 11
318 37.3821 -121.9414 Mod 11
319 37.3822 -121.9412 Mod 11
320 37.382 -121.9411 Mod 11
321 37.3826 -121.9396 Mod 11
322 37.3828 -121.9396 Mod 11
323 37.3831 -121.9388 Mod 11
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 13 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
324 37.3833 -121.9382 Mod 11
325 37.3832 -121.9381 Mod 11
326 37.3862 -121.9436 Mod 11
327 37.3879 -121.944 Mod 11
328 37.3808 -121.963 Mod 11
329 37.3806 -121.9618 Mod 11
330 37.3806 -121.9616 Mod 11
331 37.3759 -121.9636 Mod 11
332 37.3761 -121.9647 Mod 11
333 37.376 -121.9647 Mod 11
334 37.3773 -121.962 Mod 11
335 37.3778 -121.9564 Mod 11
336 37.3764 -121.9568 Mod 11
337 37.3764 -121.9566 Mod 11
338 37.3761 -121.9566 Mod 11
339 37.3762 -121.9569 Mod 11
340 37.3753 -121.9492 Mod 11
341 37.4112 -121.9629 Mod 12
342 37.415 -121.9779 Mod 12
343 37.4044 -121.9656 Mod 12
344 37.4074 -121.9642 Mod 12
345 37.4082 -121.962 Mod 12
346 37.4038 -121.9652 Mod 12
347 37.3902 -121.9694 Mod 12
348 37.3901 -121.9692 Mod 12
349 37.4104 -121.9779 High 12
350 37.4056 -121.972 High 12
351 37.4042 -121.9717 High 12
352 37.4075 -121.9638 High 12
353 37.4057 -121.9719 High 12
354 37.4043 -121.9713 High 12
355 37.4035 -121.9715 High 12
356 37.4037 -121.9718 High 12
357 37.4036 -121.9684 High 12
358 37.4038 -121.9684 High 12
359 37.4042 -121.9687 High 12
360 37.4046 -121.9691 High 12
361 37.4068 -121.9694 High 12
362 37.4063 -121.9691 High 12
363 37.4067 -121.9683 High 12
364 37.4082 -121.9613 Mod 13
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 14 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
365 37.408 -121.9606 Mod 13
366 37.4078 -121.9606 Mod 13
367 37.4075 -121.9585 Mod 13
368 37.406 -121.9571 Mod 13
369 37.4066 -121.9574 Mod 13
370 37.4065 -121.9577 Mod 13
371 37.4055 -121.9566 Mod 13
372 37.4054 -121.9569 Mod 13
373 37.4042 -121.9551 Mod 13
374 37.4041 -121.9552 Mod 13
375 37.404 -121.9552 Mod 13
376 37.4037 -121.9544 Mod 13
377 37.4033 -121.9539 Mod 13
378 37.4046 -121.9606 Mod 13
379 37.4032 -121.9592 Mod 13
380 37.4033 -121.9592 Mod 13
381 37.401 -121.9542 Mod 13
382 37.3932 -121.9596 Mod 13
383 37.3992 -121.9474 Mod 13
384 37.3992 -121.947 Mod 13
385 37.3956 -121.9465 Mod 13
386 37.3958 -121.948 Mod 13
387 37.3686 -121.9759 Mod 13
388 37.3688 -121.9753 Mod 13
389 37.3677 -121.9748 Mod 13
390 37.3594 -121.9706 Mod 13
391 37.3592 -121.9706 Mod 13
392 37.3592 -121.9706 Mod 13
393 37.3571 -121.9743 Mod 13
394 37.3572 -121.9741 Mod 13
395 37.3565 -121.9692 Mod 13
396 37.3558 -121.9711 Mod 13
397 37.3573 -121.9865 Mod 13
398 37.3598 -121.9879 Mod 13
399 37.3595 -121.9957 Mod 13
400 37.3558 -121.9957 Mod 13
401 37.3576 -121.9957 Mod 13
402 37.3576 -121.9934 Mod 13
403 37.3587 -121.998 Mod 13
404 37.3541 -121.9913 Mod 13
405 37.3541 -121.9908 Mod 13
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 15 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
406 37.3542 -121.9887 Mod 13
407 37.3542 -121.9884 Mod 13
408 37.3542 -121.9869 Mod 13
409 37.3542 -121.9866 Mod 13
410 37.3542 -121.9842 Mod 13
411 37.35 -121.9869 Mod 13
412 37.3499 -121.9867 Mod 13
413 37.3506 -121.9847 Mod 13
414 37.3492 -121.9935 Mod 13
415 37.3491 -121.9918 Mod 13
416 37.3473 -121.9821 Mod 13
417 37.3467 -121.9822 Mod 13
418 37.347 -121.9867 Mod 13
419 37.3478 -121.9869 Mod 13
420 37.3452 -121.9902 Mod 13
421 37.3456 -121.985 Mod 13
422 37.3433 -121.9775 Mod 13
423 37.342 -121.9778 Mod 13
424 37.341 -121.9863 Mod 13
425 37.3409 -121.9742 Mod 13
426 37.3391 -121.978 Mod 13
427 37.3378 -121.984 Mod 13
428 37.3348 -121.9881 Mod 13
429 37.3342 -121.9855 Mod 13
430 37.3315 -121.9947 Mod 13
431 37.3316 -121.9996 Mod 13
432 37.3252 -122.003 Mod 13
433 37.3291 -121.9894 Mod 13
434 37.3304 -121.9863 Mod 13
435 37.3283 -121.9867 Mod 13
436 37.329 -121.9809 Mod 13
437 37.3293 -121.9791 Mod 13
438 37.3299 -121.964 Mod 13
439 37.3292 -121.9646 Mod 13
440 37.3271 -121.964 Mod 13
441 37.3348 -121.9599 Mod 13
442 37.3369 -121.9582 Mod 13
443 37.3379 -121.9574 Mod 13
444 37.3386 -121.9567 Mod 13
445 37.3388 -121.9566 Mod 13
446 37.3415 -121.9514 Mod 13
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A1-Scope of Services Page 16 Rev. 07-01-18
Row # Latitude Longitude Trash
Generation TMA
447 37.3399 -121.9505 Mod 13
448 37.3462 -121.9648 Mod 13
449 37.3462 -121.965 Mod 13
450 37.3434 -121.9676 Mod 13
451 37.3442 -121.9686 Mod 13
452 37.3403 -121.9437 Mod 13
453 37.341 -121.9438 Mod 13
454 37.3936 -121.9585 High 13
455 37.3941 -121.9601 High 13
456 37.3947 -121.9595 High 13
457 37.3942 -121.948 High 13
458 37.3945 -121.9484 High 13
459 37.3954 -121.9478 High 13
460 37.3955 -121.9464 High 13
461 37.396 -121.9454 High 13
462 37.3583 -121.9846 High 13
463 37.3599 -121.9963 High 13
464 37.3455 -121.9944 High 13
465 37.3315 -121.9965 High 13
466 37.3403 -121.9551 High 13
467 37.3408 -121.9551 High 13
468 37.3436 -121.9605 High 13
469 37.3433 -121.9606 High 13
470 37.3397 -121.939 High 13

6. Reporting Requirements

6.1.Contractor will provide status reports to the City Project Manager at a frequency determined by the City.

7. Warranty

7.1.See Exhibit A2 for warranty information.

7.2.Extended Warranty: Contractor will extend the warranty on parts, labor, and material for all existing and new REM FTC devices beyond the product two-year warranty for as long as Contractor continues to maintain the devices with two (or more) uninterrupted maintenance events per year.

8. Invoicing Requirements (See Exhibit B, Section 4 herein for invoicing requirements)
Agreement with Revel Environmental Manufacturing, Inc./Exhibit A2- Product Warranty Page 1 Rev. 07-01-18
EXHIBIT A2

PRODUCT WARRANTY
Revel Enviro,it11e11tal Manufacturing Inc. $ll~mnlil1.:u.<ucn (883/ 116-4736 li1.:. N\), 817'1 lO REM
Nonhcrn L.lli/omi:l
•)60,.U Dm oi1 Avenw
Concord. U lif<-,r-11U 94) 18
I~ (?2S) 676.-4716
F: ("HS) 6?6•8676
!lo1uhcm ulili.11nu
J. I JO Smnli Grand A\·~nl.te'
Sinet. Ana+ C:di(l)rni:a •)2705
P: (7l4) ~l-2616
F: t714l s,,.2m9
REM Inc. Product WarrantYj & Maintenance
23 WAR.R.Al,ITY EXCEPT AS SPECIFICALLY SET FORTH IN Td!S PARAGR:APH. THERE ARE NO WARRANTIES, EJTHER EXPRE SS OR IMPU:.D, INCLUDING THE WARRA.NTY Of MERCHANTABIUTY OR THE WARRANTY Of fffi~ES S fOR A PARTIC-ULAR PURPOSE. ALL MERCHANDIS E fURfflSHEO HEREIJtfOER IS WARRAl lTEO AGAINST ANY DEFECT 1H MATERlALS OR WORKMANSHCP, PRO\/lDING A CLAIM 1$ MADE IN WRITING WfTHrn TWO (2) YEARS FROM TI-IE DATE Of DELIVERY Of T HE MERCHANDISE TO TI-IE PURCHASER. REVEL ENVIRONMENTAL MAtruf A ClURING, YIC. OBLIGATION ON ANY CLAlM IS LIMITED 10 REPLACEMEHT OR REPAIR OF THE DEFECTIVE MERCHAHOISE FOB AT REVEL EtMRONMENTA.L MANUFACTURING INC. PREMISES. EXC·EPT AS A.BOVE STATE'D, SELLER 'WILL NOT BE U A.flLE FOR ANY LOSS, tt~JURY OR DAMAGE TO PERSONS OR PROPERTY RESULTING FROM FA.II.URE OR OEFECTIVE OPERAT~ OF AHY M ERCHANDISE R.IRNISHED HEREUNDER OR DELAY IN PERFORMANCE OF n us AG.REEMEIIT, HOR WIU REVEL ENVJROHMENTAL MANUFACTU!UNG, INC.

BE LIABLE FOR DIRECT, INDIRECT. SPECIAL OR CONSEQUENTIAL DA.MAG.ES OF ANY KJND SUSTAINED BY PURCHASE.R FROM ANY CAUSE.

REVEL ENVIRONM ENTAL MAHUFACTURlNG, INC. PRODUCTS ARE OESIG.NED TO BE USEO IN CONJUNCTION WTTH STRlNGEHT MAINTENANCE PLANS AND POLLUTION PREVENTION PLAHS AHO ARE HOT BITENOEO FOR USE AS THE EXCLUStvE MEANS OF R.EDUaNG TI1E AMOUNT OF POUUTANTS EtlTEJUHG THE ENVIROOMENT. PURCHASERS AHO USERS OF REVEL BNIRONMENTAL MANUFACTURING lHC. PRODUCTS A.RE SOLELY RESPONSIBLE FOR COMPLIANCE w rrH LOCAL, $TATE. AHO FEDERAL LAWS GOVERNING THE DISCHARGE AHO DISPERSAL OF flLTERED WATER.. TREATED WATER. SPENT FILTER MEDIA AHO GENERATED SLUDGE.

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f'kuc ,:oo.b,:t flnt .!ir«rly few mott i.nfonn.uion .lbo-ot tC',i<c- pn,gr.l.Uloptioiu, qtulifit d 1tt'.iC'I' p~ mil p\Ucluri.Qg «pbcaullt 1n«ti.1 puks u TOU FREE • (888} 526-4736, DIRECT· (925) 676-4736, FAX· {925) 6i6-S616 or d SALES/@:REA1?1L · TERS.COJi1L Agreement with Revel Environmental Manufacturing, Inc./Exhibit B-Schedule of Fees Page 1 Rev. 07-01-18

EXHIBIT B

SCHEDULE OF FEES

1. MAXIMUM COMPENSATION

1.1. The maximum amount payable for all services and products provided under this Agreement shall not exceed Three Hundred One Thousand Dollars ($301,000), during the term of the Agreement. No additional services will be performed unless both Parties execute an amendment outlining the services requested and the compensation agreed for such services.

1.2. All payments are based upon City’s acceptance of Contractor’s performance of services specified in Exhibit A, Scope of Services. City shall have no obligation to pay unless Contractor has successfully completed the work for which payment is due.

2. Pricing and Options

2.1. The City will pay Contractor based on the prices specified in Table B1 below for services provided:

Table B1: Pricing
Description UOM Unit Price
Price for Large FTC Catch Basin Insert (> or = to 850 Square Inch ID Catch Basin) Each $295/EA
Price for Small FTC Catch Basin Insert (< 850 Square Inch ID Catch Basin) Each $330/EA
Installation Cost (Include all labor, parts, material, and equipment for installation) per FTC Catch Basin Insert Each $205/EA

2.2. Pricing is fixed for the Initial Term of the Agreement.

2.3. Price Adjustments: Contractor may request adjustments to the fees prior to any one-year option to renew the Agreement after the Initial Term. Contractor must demonstrate to the satisfaction of the City that a price increase is justified by provided documentation, such as a price index (e.g. CPI or PPI). Price adjustments are subject to City’s approval.

3. INVOICING

3.1.Contractor will invoice the City on a monthly basis for services provided by Contractor during the preceding month on an invoice and in a format approved by the City and subject to verification and approval by the City. City will pay Contractor within thirty (30) days of City’s receipt of an approved invoice.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit B-Schedule of Fees Page 2 Rev. 07-01-18

3.2.The City will incur no obligation for out of scope work that is not authorized in advance in writing. These monthly invoices will provide a breakdown of cost of the work performed and have an attachment itemizing the work completed.

Invoices must include at a minimum the following:

3.2.1. Date of Service

3.2.2. Description of Service

3.2.3. Location of Service

3.2.4. Unit Pricing

3.2.5. Quantity

3.2.6. Labor (Installation) Cost

3.2.7. Extended Price and Total

3.2.8. Any other pertinent information.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit C-Insurance Requirements Page 1 Rev. 07-01-18

EXHIBIT C

INSURANCE REQUIREMENTS
Without limiting the Contractor’s indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect, at its sole cost and expense, the following insurance policies with at least the indicated coverages, provisions and endorsements:

A. COMMERCIAL GENERAL LIABILITY INSURANCE

1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury

2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.

3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a “pay on behalf” basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.

B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned, non-owned and hired autos.

In the event that the Work being performed under this Agreement involves transporting of hazardous or regulated substances, hazardous or regulated Agreement with Revel Environmental Manufacturing, Inc./Exhibit C-Insurance Requirements Page 2 Rev. 07-01-18
wastes and/or hazardous or regulated materials, Contractor and/or its subcontractors involved in such activities shall provide coverage with a limit of two million dollars ($2,000,000) per accident covering transportation of such materials by the addition to the Business Auto Coverage Policy of Environmental Impairment Endorsement MCS90 or Insurance Services Office endorsement form CA 99 48, which amends the pollution exclusion in the standard Business Automobile Policy to cover pollutants that are in or upon, being transported or towed by, being loaded onto, or being unloaded from a covered auto.

C. WORKERS’ COMPENSATION

1. Workers’ Compensation Insurance Policy as required by statute and employer’s liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.

2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers’ Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).

3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents.

D. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.

1. Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor’s work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85 or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.

2. Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the Indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance Indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor’s insurance.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit C-Insurance Requirements Page 3 Rev. 07-01-18

3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of nonrenewal.

4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through D of this Exhibit C, above.

E. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and City agree as follows:

1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services who is brought onto or involved in the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Contractor agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.

2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit C-Insurance Requirements Page 4 Rev. 07-01-18

3. The City reserves the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement.

F. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this Agreement. Contractor shall file with the City all certificates and endorsements for the required insurance policies for City’s approval as to adequacy of the insurance protection.

G. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement.

Upon City’s request, Contractor shall submit to City copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be emailed to:
[email protected]
or mailed to:

EBIX Inc.

City of Santa Clara Department of Public Works – Street Division P.O. Box 100085 – S2
Duluth, GA 30096
Telephone number: 951-766-2280
Fax number: 770-325-0409
H. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit D-Labor Compliance Page 1 Rev. 07-01-18

EXHIBIT D

LABOR COMPLIANCE ADDENDUM
This Agreement is subject to the requirements of California Labor Code section 1720 et seq. requiring the payment of prevailing wages, the training of apprentices, and compliance with other applicable requirements.

I. Prevailing Wage Requirements

1. Contractor shall be obligated to pay not less than the General Prevailing Wage Rate, which can be found at www.dir.ca.gov and are on file with the City Clerk’s office, which shall be available to any interested party upon request. Contractor is also required to have a copy of the applicable wage determination posted and/or available at each job site.

2. Specifically, contractors are reminded of the need for compliance with Labor Code Section 1774-1775 (the payment of prevailing wages and documentation of such), Section 1776 (the keeping and submission of accurate certified payrolls) and 1777.5 in the employment of apprentices on public works projects. Further, overtime must be paid for work in excess of 8 hours per day or 40 hours per week pursuant to Labor Code Section 1811-1813.

3. Special prevailing wage rates generally apply to work performed on weekends, holidays and for certain shift work. Depending on the location of the project and the amount of travel incurred by workers on the project, certain travel and subsistence payments may also be required.

Contractors and subcontractors are on notice that information about such special rates, holidays, premium pay, shift work and travel and subsistence requirements can be found at www.dir.ca.gov .

4. Only bona fide apprentices actively enrolled in a California Division of Apprenticeship Standards approved program may be employed on the project as an apprentice and receive the applicable apprenticeship prevailing wage rates. Apprentices who are not properly supervised and employed in the appropriate ratio shall be paid the full journeyman wages for the classification of work performed.

5. As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, Contractor agrees to present to City, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request. The term “certified payroll” shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the City or its designee including, but not limited to: certified Agreement with Revel Environmental Manufacturing, Inc./Exhibit D-Labor Compliance Page 2 Rev. 07-01-18
payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.

6. In addition to submitting the certified payrolls and related documentation to City, Contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Department of Industrial Relations. Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and/or final payment.

7. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

8. No contractor or subcontractor may be awarded a contract for public work on a public works project, unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. Contractors MUST be a registered “public works contractor” with the DIR AT THE TIME OF BID. Where the prime contract is less than $15,000 for maintenance work or less than $25,000 for construction alternation, demolition or repair work, registration is not required.

9. All contractors/subcontractors and related construction services subject to prevailing wage, including but not limited to: trucking, surveying and inspection work must be registered with the Department of Industrial Relations as a “public works contractor”. Those you fail to register and maintain their status as a public works contractor shall not be permitted to perform work on the project.

10. Should any contractor or subcontractors not be a registered public works contractor and perform work on the project, Contractor agrees to fully indemnify the City for any fines assessed by the California Department of Industrial Relations against the City for such violation, including all staff costs and attorney’s fee relating to such fine.

11. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

J. Audit Rights
All records or documents required to be kept pursuant to this Agreement to verify compliance with this Addendum shall be made available for audit at no cost to City, at any time during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such records or documents shall be provided to City for audit at City Hall when it is Agreement with Revel Environmental Manufacturing, Inc./Exhibit D-Labor Compliance Page 3 Rev. 07-01-18
practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records or documents shall be made available at Contractor’s address indicated for receipt of notices in this Agreement.

K. Enforcement

1. City shall withhold any portion of a payment; including the entire payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance. In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq., City may continue to hold sufficient funds to cover estimated wages and penalties under the Agreement.

2. Based on State funding sources, this project may be subject to special labor compliance requirements of Proposition 84.

3. The City is not obligated to make any payment due to Contractor until Contractor has performed all of its obligations under these provisions. This provision means that City can withhold all or part of a payment to Contractor until all required documentation is submitted. Any payment by the City despite Contractor’s failure to fully perform its obligations under these provisions shall not be deemed to be a waiver of any other term or condition contained in this Agreement or a waiver of the right to withhold payment for any subsequent breach of this Addendum.

City or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements.

These penalties are up to $200 per day per worker for each wage violation identified; $100 per day per worker for failure to provide the required paperwork and documentation requested within a 10-day window; and $25 per day per worker for any overtime violation.

Agreement with Revel Environmental Manufacturing, Inc./Exhibit E-Notice of Option to Extend Page 1 Rev. 07-01-18

EXHIBIT E

NOTICE OF EXERCISE OF OPTION TO EXTEND AGREEMENT
AGREEMENT TITLE:

CONTRACTOR:

DATE:

Pursuant to Section __ of the Agreement referenced above, the City of Santa Clara hereby exercises its option to extend the term under the following provisions:

OPTION NO. # of #

NEW OPTION TERM
Begin date:

End date:

CHANGES IN RATE OF COMPENSATION
Percentage change in CPI upon which adjustment is based:

Pursuant to Section ___ of the Agreement the rates of compensation are hereby adjusted as follows:
(use attachment if necessary)
MAXIMUM COMPENSATION for New Option Term:

For the option term exercised by this Notice, City shall pay Contractor an amount not to exceed the amount set forth above for Contractor’s services and reimbursable expenses, if any. The undersigned signing on behalf of the City of Santa Clara hereby certifies that an unexpended appropriation is available for the term exercised by this Notice, and that funds are available as of the date of this signature.

Approved as to Form:

Dated:

Office of the City Attorney
City of Santa Clara
Office of the City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
□
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-225 Agenda Date: 4/19/2022

REPORT TO COUNCIL

SUBJECT
Action on an Agreement Between the Santa Clara Unified School District and the City of Santa Clara Pertaining to the Operation, Maintenance and Improvement for Public Recreational Purposes of Buildings and Open Space Areas at Cabrillo Middle School

COUNCIL PILLARS
Enhance Community Sports, Recreational and Arts Assets
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
On May 13, 1987, the City entered into a Lease Agreement (“Agreement”) with the Santa Clara Unified School District (“District”) to construct, operate and maintain a Youth Activity Center (“YAC”) on a portion of the campus of Cabrillo Intermediate School (now known as Cabrillo Middle School). In the Agreement, the City agreed to pay the District the sum of one dollar per year ($1) for the lease of the site and to assume responsibility for the cost of the YAC improvements (“Improvements”). In exchange, the District agreed to allow the City to utilize the facility at no cost when not in use by the District for an initial period of thirty-five years. The parties, by mutual consent, could extend the Agreement for successive five-year periods with the same terms and conditions outlined in the original agreement provided that the total term, and any extension thereof, did not exceed ninety-nine (99) years (Attachment 1). At the end of the initial term (or any successive extension) use, operation and maintenance of the Improvements would revert to the District.

The initial term of the lease agreement is set to expire on May 13, 2022. In November, 2021, District representatives notified the City of their interest to amend the terms and conditions of the Agreement.

The attached Agreement represents the culmination of negotiations that have occurred since November with respect to a new agreement for continued joint use of the YAC, the Teen Center and Skate Park located on the Cabrillo Middle School Campus.

DISCUSSION
The City and the School District have a long tradition of joint investment and use of community recreational facilities and amenities. To enhance transparency and accountability, the City and School District have embarked on an effort to create a master agreement that would set forth a set of shared values and principles that would govern all joint use facilities. This master agreement would be augmented by addendums for each individual site that would address site-specific terms and conditions related to items such as contributions of the parties, hours of operations, scope of services, etc. While the parties have been working on the framework for a joint use master agreement, an inventory of existing agreements revealed that the YAC agreement was set to expire in May, 2022. The YAC has been a valuable joint use facility for the City, District, and community since 1987. In 1997, the City and District entered into an agreement for the Skatepark (Attachment 2) City of Santa Clara Page 1 of 4 Printed on 4/14/2022
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22-225 Agenda Date: 4/19/2022
and subsequently, for the operations of the Teen Center.

Currently, City programs generate approximately 75,000 youth visits annually (2,100 unique members) through the free afterschool/after camp and skate park programs, and an additional 1,000 youth in summer camps. Eleven (11) special events are held annually in these joint use facilities. To avoid a disruption in these services, the focus of the work effort between the parties shifted to discussions around the YAC agreement.

In November, 2021, the School District notified City representatives of their interest in amending the terms and conditions of the agreement to allow for greater utilization of space in order to provide expanded after-school sports, music and other extra-curricular activities similar to that provided at other middle school campuses within the District.

Given the City’s long-standing presence in the Cabrillo community and interest in continuing community-based programming in that area, the parties focused their efforts on the development of terms and conditions that would meet the needs of both parties. (Attachment 3). A summary of major terms and conditions proposed for a new agreement are as follows:
· YAC Occupancy - The YAC will revert to District occupancy, operation, custodial and maintenance per the terms of the existing Lease Agreement on May 13, 2022. · Term - A new agreement will be executed for a period of five (5) years with one, five-year option to extend. It is the intention of the parties that this new agreement will become Addendum #1 once a Joint Use Master Agreement is adopted. As such, the agreement would be subject to the provisions of the Joint Use Master Agreement.
· YAC Use - After May 14, 2022, the District shall have exclusive use of the YAC gym, activity rooms, offices, restrooms, as well as storage and meeting areas during school hours. The City’s use of the YAC gymnasium and/or other spaces will be reserved through the District’s Facility Reservation System program when available during non-school hours, on weekends and during summer as defined by the new agreement. The community may reserve use of YAC gym, offices, meeting spaces, and activity rooms during non-school hours through the City’s Facility Reservation System. Such use will be subject to the District’s custodial fee. · Teen Center & Skatepark - The City will continue its occupancy, operation, custodial and maintenance of the Teen Center, Skatepark, and adjacent grounds for City and community programs through its activity scheduling and facility reservation program. The City will also have access to the covered patio area and City storage containers. The City will consolidate its staff offices and customer service counter to the Teen Center. The new agreement will serve as the governing document for joint use facilities at Cabrillo Middle School and will supersede prior individual agreements.
· Special Events - The District and City agree to work together to schedule the various special events that are hosted at the YAC throughout the year.
· Major Capital - The District will be completing a Facility Conditions Assessment to determine life-cycle capital improvement projects. The City and District will coordinate repairs and maintenance using the Division of State Architect (DSA) thresholds or $15,000, with major City of Santa Clara Page 2 of 4 Printed on 4/14/2022
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22-225 Agenda Date: 4/19/2022
projects going through the District. The City and District agree to establish a reserve fund for future maintenance. The cost-sharing arrangement, funding of the reserve and schedule of improvements will be based on the outcome of the Facility Condition Assessment. This item will be brought forward separately for Council approval. The parties understand the limitations of the City’s capital budget and have agreed to work together on a mutually acceptable contribution plan.
· Communication & Cost Sharing - The City and District will meet quarterly to discuss and resolve issues that may occur related to operations and maintenance. On a semi-annual basis, the parties will meet to reconcile expenses and cost-sharing contributions related to custodial, maintenance and utilities.
· Utilities - Electric and water use will be paid based on separate meters. The District shall be responsible for YAC expenses with the City responsible for Teen Center and Skatepark expenses.

Shared gas meters and expenses for the City’s use of the YAC will initially be split on a 40% City/District 60% basis until a true proportional basis is determined. A reconciliation of utilities expenses will occur every six months.
· General Provisions - The indemnity and insurance requirements have been updated and included. Once the Joint Use Master Agreement is adopted, the provisions in the Master Agreement will supersede.

The terms and conditions noted above will allow the City to maintain its presence and programming at Cabrillo Middle School at a minimal cost of $1 per year and a pro-rated share of maintenance and utilities. By consolidating its operations into the Teen Center, the City can meet the District’s need for additional space for both during and after school hours programming. It is important to note that while the City originally invested in the construction of the joint use facilities, the site is District property and without agreement, would revert to the District’s control in May 2022 resulting in a significant loss of recreational facilities to support community programming for the City.

The modernization of the provisions in the new agreement will also provide greater transparency and accountability that will, in turn, support greater operational efficiencies and alignment with current regulatory requirements. Most importantly, these terms and conditions will allow the continuation of meaningful joint use and operation of recreational facilities and amenities to better serve the Santa Clara community.

The School District intends to consider the Agreement at its April Board of Education meeting following the City’s approval. If the proposed agreement is not approved by the City, then the YAC, Teen Center and Skate Park facilities would revert to District occupancy and use effective May 13, 2022. Should the current agreement expire with no City Manager’s Office authority to negotiate a new agreement, City services and community use would be interrupted until a Master Agreement could be negotiated and approved. No action on this agreement would impact as many as 3,000 program participants currently receiving programs and services through these facilities.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes City of Santa Clara Page 3 of 4 Printed on 4/14/2022
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22-225 Agenda Date: 4/19/2022
in the environment.

FISCAL IMPACT
The City’s YAC, Teen Center and Skate Park program expenditures and revenues are included in the Parks & Recreation Department’s annual operating budget. The total budget for Fiscal Years 2021/22 is in the amount of approximately $2 million. Revenues from program and facility use fees are budgeted in the amount of $530,000. The cost recovery is approximately 26%. Recreation program expenditures in the amount of approximately $1.81 million support programs, services, supplies, equipment and staffing by a full-time Recreation Supervisor, 4 Recreation Coordinators, an Office Specialist III, and several as-needed recreation leaders. Park expenditures of approximately $155,000 provide a Grounds Maintenance Worker (custodian) and landscape maintenance, such as mowing for the skatepark and building’s frontage along Cabrillo Avenue, as part of a multiple park assignment. The City currently pays utilities for electricity, water and gas for the facilities in the annual average amount of approximately $33,000. The City’s Capital Improvement Program (CIP) budget funds major maintenance projects such as roofs, painting, flooring repair, but varies based on need and funding capacity. The proposed Agreement stipulates a capital reserve fund will be established and a pro-rata share of utilities paid based on actual percentage of City and Community usage. With the exception of the capital funds, it is expected that operating expenditures will remain about the same except for increases due to inflation. As discussed above, the City will now be required to establish a capital reserve fund and the contributions to this fund are not yet known. This item will be brought forward separately for Council approval. The parties understand the limitations of the City’s capital budget and have agreed to work together on a mutually acceptable contribution plan.

COORDINATION
This report has been coordinated with City Attorney’s Office and City Manager’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION
Authorize the City Manager to negotiate and execute an Agreement Between the Santa Clara Unified School District (SCUSD) and the City of Santa Clara Pertaining to the Operation, Maintenance and Improvement for Public Recreational Purposes of Buildings and Open Space Areas located at Cabrillo Middle School and to make minor amendments as needed.

Reviewed by: James Teixeira, Director, Parks & Recreation Approved by: Cynthia Bojorquez, Assistant City Manager

ATTACHMENTS

1. Youth Activity Center Lease Agreement 1987

2. Skatepark Agreement 1997

3. Proposed Agreement
City of Santa Clara Page 4 of 4 Printed on 4/14/2022
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--L2:?it;;.::;~>"'· \ r-~'\t: . ~~W~1~ CtIRK f\J. I._ ,. - · ~· • AGREEMENT BETWEEN TIIF. SANI'A CLARA UNIFIED
. SCHOOL DISTRICT AND THE CITY OF SANfA CLARA

REIATIVE TO SKATEBOARD PARK
This is an Agreement between the Santa Clua Unified School District (hereinafter "District") and the City of Santa Clara (hereinafter "City") relative to the establishment of a skateboard park facility at the Cabrillo Middle School site.

1. Use of Property. District grants City permission to utilize a portion of the Cabrillo Middle School site for purposes of establishing and maintaining an area for skateboarding activities. ·

2. Fences, Notice. City shall install at its expense appropriate fences to separate the skateboard park from the •eniaioiog portions of the school site. The City shall install appropriate signs and notices advising the public of any limitations upon the use of the skateboard area.

J. Tertn. This agreement shall commence on December 1, 1997, and shall terminate one year after either party to the other delivers notice of . termination. At the time of termination, City .at the District's discretion and guidance shall remove any or all improvements installed at the skateboard park and, if necessary, return the utilized portion of Cabrillo Middle School back to its original state.

4. Hold Hannless and Defense: City shall defend, indemnify and hold harmless District, its officers, agents and employees from any and all claims or causes of action for death or injury to persons, or damage to or loss of property arising out of negligent or inadequate supervision of the skateboard park facility, the construction and maintenance of the skateboard facility and the operation and use of the skateboard facility except where such claim or cause of action arise from the sole negligence of District, its officers, employees or agents.

SANT A CLARA UNIFIED SCHOOL DISTRICT
Dated: 11/ 25/97

CITY OF SANT A CLARA
Dated: /.J. · f · 'i7 · By:N; /Udtu
(/ May .

By:&M¥ iolf ~a/U\Cl,rifr . City anager
ATTEST:

By: . 1/--(, d'ocr
~Jerk .
1 154493v1 / SANCLARUSD.45

THE AGREEMENT BETWEEN SANTA CLARA UNIFIED SCHOOL DISTRICT

AND THE CITY OF SANTA CLARA PERTAINING TO THE USE,

MAINTENANCE AND IMPROVEMENT FOR PUBLIC RECREATIONAL

PURPOSES OF VARIOUS BUILDINGS AND OPEN SPACE AREAS AT
SCHOOL SITES OWNED BY SANTA CLARA UNIFIED SCHOOL DISTRICT –

YOUTH ACTIVITY CENTER, TEEN CENTER AND SKATE PARK

RECITALS
WHEREAS, Section 10900 et seq. of the Education Code of the State of California authorize and empower City of Santa Clara (the “City”) and Santa Clara Unified School District (the “District”) to cooperate with each other in organizing, promoting and conducting programs of community recreation.

WHEREAS, on May 13, 1987, the City and the District entered into a Lease Agreement for the City to use a portion of the Cabrillo Middle School site for $1 per year, for a period of 35 years (2022) and extended for five year terms by mutual consent for the same terms and conditions, but not exceeding 99 years (the “Lease Agreement”), and to construct, operate and maintain a community youth activity center of approximately 20,000 square feet in size, (the “Youth Activity Center” or “YAC”), with the improvements becoming the property of the District at the end of the original term or any extensions.

WHEREAS, the City and the District are working on a new agreement known as the Agreement Pertaining to the Use, Maintenance and Improvement for Public Recreational Purposes of Various Buildings and Open Space Areas Owned by Santa Clara Unified School District or City of Santa Clara (the “Master Agreement”).

WHEREAS, pending execution of the Master Agreement, the City and the District desire to enter into this Agreement in connection with the Lease Agreement, which Agreement will ultimately become an addendum to the Master Agreement.

WHEREAS, the Lease Agreement provided that when the YAC, Cabrillo Middle School's only gym, was constructed by the City on the Cabrillo campus, the YAC would revert to the District if the Lease Agreement was not extended.

WHEREAS, under the Lease Agreement, the City requires the District to reserve time in the YAC and has City staff has offices in the YAC as provided in Attachment A (“Current YAC Use”).

WHEREAS, the District wants the YAC to be available to the District and the District will take over the custodial and maintenance obligations for the building.

WHEREAS, the City and the District desire to establish a basis for cooperative use of the facility known collectively as the YAC, Teen Center And Skate Park (the “Premises”) adjacent to Cabrillo Middle School in the City of Santa Clara, a map of which is provided in Attachment B.
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NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Definitions of Terms.

The following terms have in this Agreement the significance attached to them in this paragraph, unless otherwise apparent from the context:
“Board of Education” means the Governing Board of the Santa Clara Unified School District.
“Building” means the building that houses the YAC and the Teen Center “Cabrillo” means Cabrillo Middle School.
“City Council” means the City Council of the City of Santa Clara. “City Premises” means the Teen Center and Skate Park and adjacent grounds. “City Manager” means the City Manager for the City of Santa Clara or designee. “Custodial” means the cleaning and everyday care of the Premises. “District Premises” means the YAC.
“Division of State Architect” (“DSA”) means the State entity that provides design and construction oversight for K-12 schools.
“Facilitron” means the current District online Facility scheduling application, as may be replaced from time to time.
“Maintenance” means the repair and care of the Premises, including but not limited to, preventative maintenance.
“Master Agreement” means the Agreement Pertaining to the Use, Maintenance and Improvement for Public Recreational Purposes of Various Buildings and Open Space Areas Owned By Santa Clara Unified School District or by City of Santa Clara which will be entered into between the City and the District. “Non-School Time” means days when school is not in regular session and after the after-school activities in the Gymnasium are over as set forth in the Facilitron reservation schedule or the bell indicating the last period is over on days when school is in regular session. Non-School Time includes the summer months even if classes are held at Cabrillo Middle School.
“School Time” means days when school is in regular session, students are on campus or when Cabrillo has after school events scheduled in the YAC. 3 154493v1 / SANCLARUSD.45
“Summer” means the period commencing the Monday after the last day of school and ending 2 full weeks before the start of the next school year. “Premises” means the property comprising the District Premises/YAC and the City Premises/Teen Center, Skate Park, and adjacent grounds as delineated in Attachment B attached hereto and incorporated by this reference. “Skate Park” means the Skate Park and adjacent grounds as delineated in Attachment B attached hereto and incorporated by this reference. “Summer” means the period commencing the Monday after last day of school and ending 2 full weeks before start of the next school year. “Superintendent” means the Superintendent for the Santa Clara Unified School District.
“Teen Center” means the Teen Center and adjacent grounds as delineated in Attachment B attached hereto and incorporated by this reference. “YAC” or “Youth Activity Center” means the building previously operated by the City and used by the District as the Cabrillo Middle School gym delineated in Attachment B attached hereto and incorporated by this reference.

The words “shall” and “will” are mandatory and the word “may” is permissive.

2. General Principles
(a) Ownership/Operation of the YAC will transfer to the District upon the expiration of the Lease Agreement on May 13, 2022. City will continue to operate and maintain the Teen Center and the Skate Park. (b) The City and the District will enter into this Agreement pending the execution of the Master Agreement for use of the YAC after May 13, 2022. Once the Master Agreement is executed, this Agreement will be subject to the Master Agreement. Use of the YAC will be scheduled through the District online Facility scheduling application (“Facilitron”). (c) The City will have exclusive use of the Teen Center for a period of five years from May 14, 2022 to May 13, 2027 and may have an extension and exclusive use of up to five years for a total extended use of up to ten years if both parties agree. Should the agreement not be extended, the City Premises will revert to the District upon the expiration of the first term on May 13, 2027.

3. Premises Use
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(a) YAC
(1) City staff who are currently located in the YAC portion of the facility will move their offices into the Teen Center portion of the building by May 13, 2022.
(2) District and City agree to the greatest extent possible, District to schedule use in Facilitron a minimum of 6 months in advance, followed by City scheduled use.
(3) During school hours, the District and Cabrillo Middle School (“Cabrillo”) will have access to all facilities within the YAC. This includes the gymnasium, the classrooms, restrooms, and offices/meeting rooms.
(4) Cabrillo will have access to the gymnasium and restrooms for practices for up to three hours following each school day.

City Council and Authorities ConcurrentApril 19, 2022

City Council and Authorities Concurrent
April 19, 2022