Agenda packet — Woodland City Council, August 15, 2023 (part 3 of 3)

VIII. OTHER PROVISIONS

Administration of the Housing Plan

The Community Development Department shall be responsible for the implementation of this Housing Plan. Guidelines implementi ng this Plan shall be maintained by the Community Development Department. Revisions to the guidelines necessary to comply with local, state and federal law may be approved by the Community Development Director. Any other substantive revisi ons to the administration of the plan shall be made
with the approval of the City Council Affordable Housing Subcommittee.

Administrative Review of Adverse Determination

Any applicant or other person who contends that his or her interests have been adversely affected by a determination related to this Housing Plan and its implementation may appeal such determination to the City Counc il by filing a written a ppeal with the City Clerk within ten calendar days after the determination or requirement is made. A filing fee as prescribed by City Council resolution shall accompany the appeal. At its next regular meeting after the filing of such appe al, the City Council shall set a date for a public hearing on the matter and shall mail notice of the hearing at least ten calendar days prior to said hearing. The City Council may re verse or modify any such determination if it finds that the action under appeal does not conform to the provisions of this Housing Plan

Page 350 ends

APPENDICES

• APPENDIX A: 2007 INCOME LI MITS BY HOUSEHOLD SIZE

• APPENDIX B: 2007 CALCULATIO N OF AFFORDABLE RENT

1. EXAMPLE OF AFFORDABLE RENT CALCULATION

2. UTILITY TABLE FOR APARTMENTS:
GARDEN APARTMENT
HIGH-RISE APARTMENT
TOWNHOUSE

• APPENDIX C: CALCULATION OF AFFORDABLE HOUSE

PURCHASE PRICES

• APPENDIX D: SILENT SECOND MORTAGE INFORMATION
(NOT APPLICABLE)

• APPENDIX E: AMENDED CHAPTER 6A OF CITY CODE—

AFFORDABLE HOUSING ORDINANCE

• APPENDIX F: CITY COUNCIL RESOLUTION TO ADOPT THE

AMENDED SPRING LAKE SPECIFIC PLAN

AFFORDABLE HOUSING PLAN

Page 351 ends

APPENDIX A
2007 Yolo County Income Limits

Number of Persons 1 2 3 4 5 6 7 8
Very-Low Income (50%) $23,000 $26,300 $29,550 $32,850 $35,500 $38,100 $40,750 $43,350 Low Income (80%) $36,800 $42,050 $47,300 $52,550 $56,750 $60,950 $65,150 $69,350 Median Income (100%) $46,000 $52,600 $59,100 $65,700 $71,000 $76,200 $81,500 $86,700 Moderate Income (120%) $55,200 $63,000 $70,900 $78,800 $85,100 $91,400 $97,700 $104,000 Source: HCD 2007 Income Limits

Page 352 ends

APPENDIX B-1

AFFORDABLE RENT CALCULATION
Low-Income Units

Unit Size 1-BR 2-BR 3-BR 4-BR
Appropriate HH Size (1) 2 3 4 5
HH Income (2) $42,050 $47,300 $52,550 $56,750
Monthly HH Income $3,504 $3,941 $4,379 $4,729
Percentage for Housing 30% 30% 30% 30%
Income for Housing $1,051 $1,182 $1,314 $1,419
Less Utility Allowance (3) $104 $112 $123 $134
Affordable Rent $947 $1,070 $1,191 $1,285

(1) Defined as number of bedrooms in the unit plus one. (2) Rent amount is based on 80% of AMI adjusted by household size. (3) Based on figures from Yolo County Housing Authority, to be updated periodically:

Assumes that water, sewer, and trash collection are included in the rent and that refrigerator and range are provided. Assumes that natural gas is used for heating, water heating, and cooking. See utility allowance tables for precise calculation of affordable rent if different assumptions apply.

AFFORDABLE RENT CALCULATION
Very Low-Income Units

Unit Size 1-BR 2-BR 3-BR 4-BR
Appropriate HH Size (1) 2 3 4 5
HH Income (2) $26,300 $29,550 $32,850 $35,500
Monthly HH Income $2,192 $2,463 $2,738 $2,958
Percentage for Housing 30% 30% 30% 30%
Income for Housing $658 $739 $821 $887
Less Utility Allowance (3) $104 $112 $123 $134
Affordable Rent $554 $627 $698 $753

(1) Defined as number of bedrooms in the unit plus one. (2) Rent amount is based on 50% of AMI adjusted by household size. (3) Based on figures from Yolo County Housing Authority, to be updated periodically:

Page 353 ends

APPENDIX B-2

Allowance for Tenant-Furnished Utilities and Other Services

LOCALITY UNIT TYPE EFFECTIVE DATE
City of Woodland
Garden
Apartment 7/1/2003

MONTHLY DOLLAR ALLOWANCE
UTILITY OR SERVICE 0-BR 1-BR 2-BR 3-BR 4-BR 5-BR

HEATING
a. Natural Gas $8 $10 $11 $13 $14 $16
b. Electric $16 $21 $24 $29 $35 $38
c. Heat Pump $10 $12 $14 $17 $20 $22
AIR CONDITIONING $17 $23 $29 $37 $46 $54

COOKING
a. Natural Gas $4 $4 $5 $5 $6 $6
b. Electric $11 $18 $25 $40 $55 $71
OTHER ELECTRIC $20 $22 $26 $31 $36 $44

WATER HEATING
a. Natural Gas $6 $8 $10 $14 $18 $23
b. Electric $11 $18 $25 $40 $55 $71
WATER (Average) $13 $13 $13 $13 $13 $13
SEWER (Average) $18 $18 $18 $18 $18 $18
TRASH COLLECTION $20 $20 $20 $20 $20 $20
REFRIGERATOR $5 $5 $5 $5 $5 $5
RANGE $4 $4 $4 $4 $4 $4
OTHER

TOTAL MONTHLY UTILITY

ALLOWANCE

Page 354 ends

Allowance for Tenant-Furnished Utilities and Other Services

LOCALITY UNIT TYPE EFFECTIVE DATE
City of Woodland
High-Rise
Apartment 7/1/2003

MONTHLY DOLLAR ALLOWANCE
UTILITY OR SERVICE 0-BR 1-BR 2-BR 3-BR 4-BR 5-BR

HEATING
a. Natural Gas $6 $7 $7 $8 $9 $10
b. Electric $9 $11 $13 $16 $19 $21
c. Heat Pump $5 $6 $8 $9 $11 $12
AIR CONDITIONING $13 $17 $20 $27 $33 $39

COOKING
a. Natural Gas $4 $4 $5 $5 $6 $6
b. Electric $9 $10 $12 $13 $14 $14
OTHER ELECTRIC $20 $22 $26 $31 $36 $44

TOTAL MONTHLY UTILITY

ALLOWANCE

Page 355 ends

Allowance for Tenant-Furnished Utilities and Other Services

LOCALITY UNIT TYPE EFFECTIVE DATE
City of Woodland Townhouse 7/1/2003

MONTHLY DOLLAR ALLOWANCE
UTILITY OR SERVICE 0-BR 1-BR 2-BR 3-BR 4-BR 5-BR

HEATING
a. Natural Gas $10 $11 $13 $13 $15 $17
b. Electric $19 $23 $28 $31 $36 $41
c. Heat Pump $11 $14 $16 $18 $21 $24
AIR CONDITIONING $18 $23 $29 $37 $46 $54

COOKING
a. Natural Gas $4 $4 $5 $5 $6 $6
b. Electric $9 $10 $12 $13 $14 $14
OTHER ELECTRIC $20 $22 $26 $31 $36 $44

TOTAL MONTHLY UTILITY

ALLOWANCE

APPENDIX C
42

Page 356 ends

CALCULATION OF AFFORDABLE HOUSE PRICE

The calculation of the affordable housing pr ice for a Low-Income unit (for a household with income at 80% of AMI or less) is shown below. The calculations are based on the following assumptions (see pages 22-23 of this Housing Plan for additional details on the procedure for determining the affordable house purchase price):

ASSUMPTIONS
Interest Rate 1 6.91% Taxes N/A
Loan Term 30 Yrs. Mortgage Insurance N/A
Down Payment %
5%
Mello Roos & Other
Assessments (Per Month) N/A
HOA Payment (Per Month)
(If needed) N/A Flood Insurance N/A
Mortgage Insurance N/A Income % to Housing2 30%

Bedroom Count 1 BR 2 BR 3 BR 4 BR 5 BR

Market Home Value
5 $ 265,000 .00 $ 285,000.00 $ 325,000.00 $ 350,000.00 $ 375,000 .00 First Mortgage $ 150,167.00 $168,938.00 $ 187,708.00 $ 202,687.00 $ 217,666.00 Down Payment (5%) $ 7,904.00 $ 8,891.00 $ 9,879.00 $ 10,668.00 $ 11,456.00 Sales Price $ 158,071.00 $ 177,829.00 $ 197,587.00 $ 213,355.00 $ 229,122.00

Payment (P+I)
6 $ 990 $ 1,113.75 $ 1,237.50 $ 1,336.25 $ 1,435 Maintenance Fee $ - $ - $ - $ - $ - Utility Allowance $ - $ - $ - $ - $ - Taxes $ - $ - $ - $ - $ - Insurance $ - $ - $ - $ - $ - Flood Insurance $ - $ - $ - $ - $ - HOA Payment $ - $ - $ - $ - $ - Mello Roos $ - $ - $ - $ - $ - Mortgage Insurance $ - $ - $ - $ - $ - Max Monthly Payment $ 990 $ 1,113.75 $ 1,237.50 $ 1,336.25 $ 1,435

1. Interest Rate identified per the Inclusionary Housing Agreement. Staff obtained this number from www.hsh.com/metstsmp.html.

2. 30% of Gross Monthly Income per Exhibit F of the Inclusionary Housing Agreement

3. Prepared annually by the State of California Department of Housing and Community Development based on numbers provided by HUD.

4. Based on 30% of Gross Monthly Income.

5. CDD Staff estimate based on information provided by Spring Lake Developers

6. Available Monthly Housing costs include only Principal and Interest.

Page 357 ends

APPENDIX D
Silent Second Mortgage Information

(NOT APPLICABLE)

Page 358 ends

APPENDIX E
Amended 6A Affordable Housing Ordinance

Page 359 ends

CHAPTER 6A. AFFORDABLE HOUSING.*

Note to Chapter 6A
* Editor's notes.

1. Prior Chapter 6A, Campaign Expenditures, was repealed by Ordinance No. 1110.

2. Chapter 6A, Affordable Housing, was amended by Ordinance No. 1363 on March 4, 2002 in order to address potential conflicts between the Spring Lake Specific Plan and the City’s Affordable Housing Ordinance.

3. Chapter 6A, Affordable Housing, was amended in its entirety by Ordinance No. 1393 on June 1, 2004.

Article I. Findings and Purpose.

Sec. 6A-1-10. Findings.

The City Council finds and determines that:

1. It is a goal of the City of Woodland to achieve a balanced community with housing available for households with a range of income levels.

2. Increasingly, persons of very low, low, and moderate-income who work and/or live within the City are unable to locate housing at prices they can afford and are increasingly excluded from living within the City.

3. The high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable to very low, low, and moderate-income families, and continued new development which does not include an affordable housing component or contribute toward lower cost housing will further aggravate the current housing problems by reducing the supply of developable land.

4. The housing shortage for persons of very low, low, and moderate-income is detrimental to the public health, safety and welfare of the residents of the City.

5. It is a public purpose of the City, and a public policy of the State as mandated by the requirements for a Housing Element within the City's General Plan to make available an adequate supply of housing for persons of all economic segments of the community.

6. State and Federal funds to assist in the construction of new affordable housing are limited, and the City has limited resources with which to leverage these State and Federal funds.
46

Page 360 ends

7. In order to meet the City's share of regional housing needs for very low, low, and moderate-income families, the City's Housing Element requires that a portion of the dwelling units contained in new residential developments be affordable to very low, low, and moderate-income families.

Sec. 6A-1-20. Purpose.

The purpose of this chapter is to enhance the public welfare and assure that new residential developments contribute to the attainment of the City's housing goals by increasing the production of dwelling units affordable by families of very low, low, and moderate-income.

Article II. Definitions.

Sec. 6A-2-10. Definitions.
a) “Affordable” means a unit provided at an affordable rent or affordable housing cost.
47

Page 361 ends

b) “Affordable Housing Cost’’ for a purchaser means the monthly amount that is affordable to a low or moderate-income household. The method for calculating affordable housing costs is included in section 6A-5-30 of this chapter.

c) “Affordable Housing Ordinance” means Chapter 6A, Affordable Housing of the City of Woodland’s City Code.

d) “Affordable Purchase Price” means the maximum sale price a qualified purchaser may be required to pay for the affordable unit, as determined in accordance with the provisions of this chapter.

e) “Affordable Rent” means the monthly rent that is affordable to a low or very low- income household. Affordable rent shall be calculated using 50% of Yolo County Area Median Income for very low-income households and 80% for low-income households, adjusted for household size. The method for calculating affordable rent is included in section 6A-4-40 of this chapter.

f) “Area Median Income“ has the definition set forth in Section 50093 of the California Health and Safety Code, as that section may be amended from time- to-time.

g) “City” means the City of Woodland.

h) “City Manager” means the Woodland City Manager or his or her designee.

i) “Community Development Director” means the Director of the Woodland Community Development Department or his or her designee.

j) "Density Bonus" means an entitlement to build a number of dwelling units in excess of that number which would otherwise be permitted under the General Plan and Zoning Code.

k) “Developer” means the owner of any real property upon which a residential project is to be constructed and/or the applicant for development of any such project.

l) “Dwelling Unit” or “Unit” means one room or a suite of two or more rooms designed for, intended for, or used by one household as their principal residence, which family lives, sleeps and cooks therein, and which unit has at least one kitchen or kitchenette.

Page 362 ends

m) “For-Sale Units” means those dwelling units developed as part of a residential or mixed-use project which the developer intends will be offered for individual sale or which could be offered for individual sale, including but not limited to detached homes, duplex units, condominiums, and cooperatives.

n) "General Plan" means the General Plan of the City, as it may be amended from time to time.

o) “Inclusionary Unit” means a dwelling unit developed pursuant to an Inclusionary Housing Agreement to satisfy the requirements of this chapter, including for-sale units available at an affordable housing cost, and multifamily rental units available at an affordable rent.

p) “Inclusionary Housing Agreement,” “Regulatory Agreement,” or “Agreement” means the agreement between the developer or owner of a residential project and the City that contains specific plans for implementing the affordable housing requirements of this chapter for the specific project.

q) “In-Lieu Fees” means a fee paid to the City’s Affordable Housing Fund to facilitate the construction of housing units for very low and low-income households. The method for calculating in-lieu fees is included in section 6A-5- 20 of this Chapter.

r) “Low and Very Low-Income” means those income levels determined periodically by the U.S. Department of Housing and Urban Development based on the Yolo County Area Median Income levels adjusted for family size. A low-income household shall be a household earning over fifty and less than or equal to eighty percent of the Area Median Income, adjusted for family size. A very low-income household shall be a household earning less than or equal to fifty percent of the Yolo County Area Median Income adjusted for family size.

s) “Market-Rate Unit” means a unit not restricted to an affordable housing cost or affordable rent.

t) "Moderate-Income" means the income level determined periodically by the U.S.

Department of Housing and Urban Development based on the Yolo County Area Median Income levels adjusted for family size. A moderate-income household shall be a household earning over eighty and less than or equal to one hundred twenty percent of the Yolo County Area Median Income adjusted for family size.

Page 363 ends

u) “Multifamily Rental Units” means those dwelling units developed as part of a residential project which the developer intends will be offered for rent or which are customarily offered for rent.

v) “Notice of Intent to Sell” means the notice provided by owners of for-sale units to the City of their intent to offer their unit for sale. The covenants recorded against the property on which the unit is located shall provide that the owner shall provide a Notice of Intent to Sell in the manner prescribed in this chapter.

w) "One Location" means all adjacent land owned or controlled by the same owner, the property lines of which are contiguous at any point, or the property lines of which are separated only by a public or private street, road, or other public or private right-of-way.

x) “Owner” includes a person, persons, firm, partnership, association, joint venture, corporation, or any public or private entity or entities or the owner's agent or assignee.

y) “Qualified Purchaser” means a person or household approved for ownership of an affordable dwelling unit by the Community Development Director in accordance with the provisions of this chapter.

z) “Residential Lot” means any parcel of land cr eated with the intention that it will be used for the development of a dwelling unit.

aa) “Residential Project” or “Project” means any project involving the construction of two or more dwelling units at one location and requiring the issuance of a building permit, including in the aggregate all dwelling units or residential lots for which discretionary approvals have been applied for from or granted by the City.

bb) “Special Needs Housing” means housing for certain disadvantaged groups, including but not limited to, seniors, disabled, and homeless persons or families.

cc) “Zoning Code" means the Zoning Code of the City of Woodland, as it may be amended from time to time.

Article III. General Provisions.

Sec. 6A-3-10. Application of Affordable Housing Ordinance 50

Page 364 ends

The requirements contained in this chapter shall apply to all new residential projects located within all existing or new areas of the City, except as noted below.

Southeast Area Specific Plan

For residential projects located on parcels designated for residential use by the Southeast Area Specific Plan (“SEASP”), in the event of a conflict between the provisions of this chapter and the SEASP, the applicable provisions of the SEASP shall control. However, residential projects located on parcels within the SEASP that are re- zoned for residential use shall be subject to all requirements and provisions of this chapter.

Spring Lake Specific Plan

The Affordable Housing Ordinance shall regulate development of affordable housing in the Spring Lake Specific Plan (“SLSP”) except to the extent that a specific provision or regulation in the SLSP conflicts with the Affordable Housing Ordinance. In this event, the SLSP shall control. Where the SLSP is silent or ambiguous, the provisions of this chapter shall apply directly for the purpose of interpretation, as appropriate.

Publicly Subsidized Projects

For residential projects that receive local, State, or Federal subsidy with requirements and regulations differing from this chapter, the stricter provisions pertaining to affordability shall prevail.

Sec. 6A-3-20. General Inclusionary Housing Requirements The Affordable Housing Ordinance specifies requirements based on unit type as follows:

For-Sale Units

10 percent of new for-sale units shall be affordable to low-income households.

This requirement shall apply to all for-sale projects of at least 8 units in size.

Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

The City Council may determine the need to implement an additional requirement for 10 percent of new for-sale units to be affordable to moderate-income households, based on prevailing conditions in the housing market. Such a finding would require an amendment to this chapter as well as an am endment to the Spring Lake Specific Plan and Spring Lake Affordable Housing Plan.

Multifamily Rental Units
51

Page 365 ends

10 percent of all multifamily rental units shall be affordable to low-income households and 20 percent shall be affordable to very low-income households; -or-
25 percent of the units shall be affordable to very low-income households.

These requirements shall apply to all multifamily rental projects of at least 10 units.

Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

For infill multifamily rental projects of less than 40 units located within the Redevelopment Project Area the City Council may determine, that based on substantial evidence provided by the developer, standard application of the inclusionary requirement will make the project infeasible to develop. For projects in which such a determination is made, the following shall apply:

1. The project shall receive at least two of the bonus incentives provided in Section 25-21-25 of the Zoning Ordinance (Bonus Incentive Projects) if the granting of such incentives will allow the developer to meet the standard level of affordability for very low and low-income households required by this section.

2. If, even with bonus incentives, the project is determined to be infeasible under the standard affordability requirements, the project shall be required to include a minimum of at least the percentages of units affordable to very low, low, and moderate-income households required by California Redevelopment Law, as it may be amended from time to time.

Sec. 6A-3-30. Inclusionary Housing Agreements
The Inclusionary Housing Agreement, or Regulatory Agreement, is the means by which the City ensures that a residential project complies with the applicable affordable housing requirements. An applicant shall enter into a written Inclusionary Housing Agreement with the City that specifically sets out the manner in which affordable housing obligations will be met under the terms of this chapter.

The Inclusionary Housing Agreement shall be executed by the applicant and the City.

The applicant’s proposed tentative map will be subject to the conditions of the Inclusionary Housing Agreement. The Inclusionary Housing Agreement shall be completed and signed prior to approval of the applicant’s final map. The Agreement shall contain all the applicable information identified in the Agreement Checklist provided in this section.

This Agreement must include an acknowledgment that the applicant received a copy of the Affordable Housing Ordinance. Moreover, the Agreement must obligate the applicant to provide a copy of this Agreement to anyone to whom the subject residential lots or units are transferred or sold

Page 366 ends

The Inclusionary Housing Agreement shall provide assurances satisfactory to the City Attorney, Community Development Director, Housing Specialist, and City Manager of the applicant’s obligation and capacity to meet the affordable housing obligations under this chapter. The Inclusionary Housing Agreement shall also include all applicable and necessary information and obligations including, but not limited to, those items listed in the Agreement Checklist below. A memorandum of the Inclusionary Housing Agreement shall be recorded with the Yolo County Recorder’s office.

Agreement Check List

The Inclusionary Housing Agreement shall contain the following information:

a) Location, zoning designation and ownership of the residential project;

b) The number of affordable dwelling units that the applicant is responsible to provide at each income level;

c) The exact location of the affordable dwelling units (i.e., identify specific lots for affordable for-sale units and site/parcel for multifamily rental projects);

d) The dwelling unit mix and square footage of the affordable dwelling units as compared to dwelling unit mix and square footage of the market-rate units;

e) Term of affordability for the affordable dwelling units;

f) Scheduling and phasing of construction of affordable dwelling units;

g) Identification of applicant-funded subsidy or financial assistance, if any, for affordable for-sale units;

h) Affirmative marketing plan that ensures outreach to income-eligible households regarding the availability of affordable dwelling units. Such affirmative marketing shall at least include advertising in the local newspaper and sending notices to local government and nonprofit agencies that serve very low and low-income persons and families. The City shall maintain an updated list of these agencies.

i) Specify if any or all of the affordable dwelling units will be special needs housing for seniors, disabled, homeless persons or other special needs population and, if so, the unique features or services that are appropriate for that special needs population. The City will participate in securing funding for those projects that provide special needs housing units. The City’s special needs housing demand will be addressed as guided by the Housing Element, and based on any new 53

Page 367 ends

information regarding increased need or demand for special needs housing as it becomes available from the Census or other sources.

j) Detailed description of for-sale affordable units, if different than market-rate units, including floor plan and list of amenities and features of the unit.

In addition, the Inclusionary Housing Agreement shall include the following terms:

k) Assurances, to the extent feasible, that the affordable dwelling units will be constructed concurrently with, or prior to, market-rate units in the residential project. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of units in each phase of the residential project. If, as approved by the City, the affordable housing obligation is proposed to be satisfied by land dedication or by a separate third party development agreement (such as an affordable housing developer) and it is not feasible to develop the affordable units prior to or concurrently with the market-rate units, the Agreement must identify the specific residential lots on which the affordable units will be developed. Developers of for-sale residential projects who construct the required affordable units concurrent with their market-rate development shall receive an automatic 100 percent waiver of all building plan check fees (not impact fees) for the affordable units (this excludes re-inspection fees).

l) Affordable rental dwelling units shall be dispersed throughout the residential project and shall be indistinguishable from market-rate units within any project, including identical quality and amenities as the market-rate units.

m) Inclusionary Housing Agreements for rental residential projects shall include the requirement that the project will be s ubject to the City’s Affordable Housing Monitoring Program to ensure ongoing compliance with the affordable housing obligations set forth in this chapter and the Inclusionary Housing Agreement, including payment of an annual Monitoring Fee (the amount of the fee is to be determined by the City based on estimated cost to monitor the affordable housing units, and shall be stated in the City’s “Affordable Housing Monitoring Program Policies and Guidelines”). The Inclusionary Housing Agreement for a rental residential project shall also include the provisions required by section 6A- 4-60 of this chapter (“Monitoring and Compliance Requirements for Rental Projects”).

n) Mechanisms for reservation, protection, and disclosure of affordable lots for projects. Description of language in disclosure documents for use by real estate agents, and visible and prominent signage at residential projects advertising the availability of affordable dwelling units.
54

Page 368 ends

If the applicant is proposing to meet the affordable housing obligation by land dedication, then the Inclusionary Housing Agreement shall contain the following additional information:

o) Location and description of dedicated site and the residential lot(s) contained therein;

p) Description of physical suitability, ec onomic feasibility, General Plan designation and zoning, infrastructure, frontage improvements, and utility connections available at the dedicated site sufficient to allow for the development of the affordable dwelling units;

q) Number of dwelling units that may be developed on the residential lots sufficient to meet the affordable housing obligation;

r) Number of dwelling units at each income level (i.e., very low, low, or moderate- income) to meet or exceed land dedication affordability requirements.

Sec. 6A-3-40. Outreach and Marketing Requirements
Preferences

The City may choose to establish preference categories for the inclusionary units.

Possible preferences could include the following:

a) Persons who have been displaced by a project in Woodland; b) Persons who work for the City of Woodland or for the Woodland Joint Unified School District;
c) Persons who live or work within the City of Woodland; d) All other income-eligible persons.

Outreach and Marketing

Affordable Housing Marketing Plan. Prior to marketing the inclusionary units, the developer shall submit an Affordable Housing Marketing Plan to the City for approval.

The Affordable Housing Marketing Plan shall outline the developer’s plan to identify qualified purchasers (in the case of for-sale projects) or renters (for rental projects) for affordable units throughout the marketing period of a residential project. Substantial evidence shall be submitted to the City that establishes, to the City’s reasonable satisfaction that the developer complied with the submitted Affordable Housing Marketing Plan and affirmatively marketed the units throughout the relevant marketing 55

Page 369 ends

period. l The Affordable Housing Marketing Plan shall include, but not be limited to, the following:

a) Advertise the availability of the affordable units by placing in newspapers of general circulation in Yolo County and the greater surrounding region no less than eight (8) advertisements, of which no less than three (3) shall be in the Daily Democrat and at least two (2) shall be in a publication with a regional scope. At least one advertisement shall be in a language other than English, such as Spanish. The advertisements in the Daily Democrat shall be at least sixteen square inches. In the event these publications are defunct or space is not available, the Community Development Director shall designate comparable alternative advertising.

Advertising shall be required for each release of affordable housing units;

b) No later than the date of issuance of a building permit for the units, provide written notice to a list of housing organizations and other agencies serving low and very low-income persons and families available from the City informing these organizations of the availability of the affordable units, and requesting that these organizations assist in publicizing the availability of the affordable units to their members and clients;

c) Place a sign on the site of the residential project advertising the availability of the affordable units and providing contact information throughout the marketing period. This information can be integrated into the primary project sign or included on a separate stand-alone sign with comparable visibility. To the extent possible without obstructing necessary construction activity, the sign described shall be oriented, formatted and situated in such a manner that it is visible to the maximum number of pedestrians and drivers on the nearest public street;

d) Advertise in such other mediums, such as the Internet, as is reasonably necessary to affirmatively market the affordable units.

Because of the high demand for affordable for-sale units, a lottery system shall be used by the City or the developer to select potential buyers.

a) Such a lottery or alternative selection process shall be conducted in a fair, unbiased, and non-discriminatory manner, if possible by a third party agreed upon by both the City and the developer. Employees of developers and their families shall not be given preferential treatment in the marketing of the affordable units or in the selection of qualified purchasers.
56

Page 370 ends

b) To enter into the lottery, the developer must ensure that the affordable units will be completed within one hundred and eighty (180) days from the contract date. Extensions may be granted by the Community Development Director for delays beyond the control of the developer such as weather.

Article IV. Requirements for Rental Projects.

Sec. 6A-4-10. Standards Applicable to Rental Projects
Percentage of Affordable Units

Pursuant to this chapter, section 6A-3-20, any developer of a multifamily rental project of at least 10 units shall make at least twenty percent (20%) of the units on-site affordable to and occupied by very low-income households and ten percent (10%) of the units affordable to and occupied by low-income households. In the alternative, the developer may make twenty-five percent (25%) of the units affordable to and occupied by very low- income households.

As previously outlined, for infill multifamily r ental projects of less than 40 units located within the Redevelopment Project Area the City Council may determine, that based on substantial evidence provided by the developer , standard application of the inclusionary requirement will make the project infeasible to develop. For projects in which such a determination is made, the following shall apply:

Term of Affordability

The affordable rental units constructed on-site shall be permanently affordable.

Requirements for Construction

The affordable units in any one multifamily rental residential project shall be identical to the market-rate units in quality, amenities, size, and number of bedrooms. The 57

Page 371 ends

affordable units shall also be visibly indistinguishable from the market-rate units and not be segregated from the market-rate units. Clustering of affordable units is allowed only if required to facilitate the construction of the project. A developer may meet the residential project’s affordability obligation by either designating specific individual units as affordable units or using a system of “floating units” where the affordable units may change. However, in either option the residential project must always contain the required number of inclusionary units. The developer shall indicate the preferred option to the City as part of the implementation of the City’s Affordable Housing Monitoring Program Guidelines.

If a multifamily rental project has a variety of dwelling unit types with different sizes and number of bedrooms, the developer shall desig nate affordable units in substantially the same proportion as the market-rate units. For example, if a project has 100 rental units in the following sizes: 50 two-bedroom, 40 one-bedroom, and 10 three-bedroom, and 25 of the total number of units are affordable to very low-income households (i.e., 25%), then 50% of the affordable units should be two-bedroom, 40% one-bedroom, and 10% three-bedroom.

The mix of the affordable dwelling units may be disproportionate to the market-rate units if the Housing Needs Assessment in the City ’s current Housing Element supports such a mix (e.g., if there is a greater identified need for three-bedroom affordable dwelling units than two-bedroom units, then there may be a disproportionately greater share of affordable three-bedroom units in the residential project). Nevertheless, the gross number of bedrooms in affordable units may not be proportionately less than the gross number of bedrooms in market-rate units in the residential project and the floor area of the bedrooms in affordable units may not be smaller than those in the market-rate units as demonstrated in the following example:

A multifamily rental residential projec t has 40 one-bedroom, 50 two-bedroom, and 10 three-bedroom dwelling units, which equals 170 total bedrooms in the project. If applying the twenty-five (25%) percent very low-income obligation, then 43 (.25 X 170) of the total number of bedrooms in the project must be affordable to and occupied by very low-income households. In addition, the total square footage of these 43 affordable units must not be less than 25% of the total square footage of all the bedrooms in the project combined.

Criteria for Size and Design of Special Needs Units

For multifamily rental projects that include units that meet categories of special needs housing, the criteria for size and design of these units will be addressed by the City on a project-by-project basis as guided by the Housing Element, and based on any new information regarding increased need or demand for special needs housing as it 58

Page 372 ends

becomes available from the Census or other sources. The City will participate in securing funding for those projects that provide special needs housing units in a greater amount of special needs units than required by State or Federal law.

Builders of multifamily rental projects shall comply with applicable State or Federal laws regarding accessible design features for persons with disabilities.

Sec. 6A-4-20. Incentives Available to Rental Projects
Density Bonus

As a matter of right for qualified projects, a developer shall be entitled to a density bonus of up to twenty-five percent (25%) as permitted under California Government Code Section 65915 for on-site construction of affordable units. See City Code Section 25-21- 25, Bonus Incentive Projects, for more information on bonus incentives.

Sec. 6A-4-30. Land Dedication for Rental Projects
Land Dedication Option

A developer may be allowed to make an irrevocable offer of dedication to the City or its designee of sufficient land to satisfy the affordability requirement under this section, if either 1) the developer demonstrates to the City Council that it is not feasible to develop the affordable dwelling units on-site as part of the rental residential project; or 2) in the judgment of the Community Development Director, the developer’s proposed land dedication would accomplish the objectives of this chapter.

Dedicated sites for rental residential projects shall be a minimum of two (2) acres unless the City agrees to a smaller site based on a special housing need. The dedicated site shall be economically feasible to develop, of sufficient size to build the required number of affordable units, and physically suitable for development of the required affordable units prior to the dedication of the land. The dedicated site shall also have appropriate General Plan designation and zoning to accommodate the required units, be fully improved with infrastructure, frontage improv ements (i.e. curb, gutter, walk), paved street access, utility (i.e. water, gas, sewer, and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or as required by the City.

The City may approve, conditionally approve, or reject such offer of land dedication of any specific property. If the City rejects such an offer of land dedication, the developer shall be required to meet the affordable housing obligations by other means set forth in this chapter.

Density Credit
59

Page 373 ends

In determining the amount of land to dedicate to satisfy a developer’s affordable housing obligation, the developer shall receive credit for the base density of the dedicated site (e.g., 20 units per acre if the dedicated parcel is zoned R-20).

Development of Dedicated Land

Within one year from the date of conveyance of the dedicated land to the City, the City shall determine, at its discretion, whether the dedicated land will be (1) developed by the City to produce the required affordable dwelling units; or (2) conveyed to an affordable housing developer approved by the City to produce the required affordable dwelling units. The City Council shall determine which affordable housing developer shall be conveyed the land required to produce the affordable dwelling units.

Sec. 6A-4-40. Procedure for Determining Affordable Rent The method for calculating the affordable rent for an inclusionary unit is shown below.

This method shall apply to both low and very low-income inclusionary units. The Community Development Department shall review these assumptions and procedures annually and make revisions as necessary.

The Community Development Department will calculate the initial affordable rents for a residential project at the time that the units will be marketed and made available for rent.

The developer is to provide information on the utilities that will be included in the rent and the utilities for which the tenants will be responsible (including the specific type of service).

The following procedure will be used for determining affordable rent:

1. Calculate Income Available for Housing

Determine the family size appropriate to the unit. For purposes of this calculation, “family size appropriate to the unit” means adjusted for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five persons in the case of a four-bedroom unit and six persons in the case of a five-bedroom unit.

Determine the household annual income maximum to use for the affordable rent calculation based on the appropriate household size using the current Area Median Income figures for Yolo County as published by HUD. For a very low-income unit, the figure for 50 percent of Area Median Income shall be used. For a low-income unit, the figure of 80 percent of Area Median Income shall be used. 60

Page 374 ends

Calculate the amount of monthly income available for housing costs by dividing the maximum household annual income by 12 and then multiplying the maximum household monthly income figure by 30 percent. The resulting figure shall be the household monthly income available for housing costs.

2. Estimate Annual Housing Costs

The household allowance for utilities will be estimated based on the utility costs as shown on the current “Allowance for Tenant-Furnished Utilities and Other Services” table prepared by the Yolo County Housing Authority, using the applicable unit size and unit type (townhouse, garden apartment,
or high rise). The costs used will be based on the
specifications of the particular unit and the utilities provided by the property owner, for example gas or electric for heating, gas or electric for cooking, etc. Utility tables are updated by the Yolo County Housing Authority every year, and shall be provided by the Community Development Department to devel opers of rental residential projects in accordance with the City’s Affordable Housing Monitoring Program. The maximum rental rates of affordable units shall be adjusted as necessary based on changes to these utility tables. With the approval of the Community Development Director, a property owner may provide a utility survey, ve rified by the City, in place of the Yolo County Housing Authority’s utility tables.

3. Determine Affordable Rent

Affordable rent for an inclusionary unit is determined by subtracting applicable utility costs from the household monthly income available for housing costs. Current affordable rent levels are reviewed and, if necessary, updated by the Community Development Department at least every y ear, and shall be provided to developers of rental residential projects in accordance with the City’s Affordable Housing Monitoring Program requirements. The maximum rental rates of affordable units shall be adjusted as necessary based on changes to household utility allowances or Yolo County Area Median Income levels.

Sec. 6A-4-50. Tenant Eligibility Requirements for Affordable Rental Units Minimum Household Size

The minimum size of any household occupying an affordable rental unit shall be no less than one person per bedroom.

Maximum Income Limitation

Page 375 ends

Households renting affordable units shall have incomes that do not exceed 50 percent (very low-income household) or 80 percent (low-income household) of the current Area Median Income for Yolo County as adjusted for household size.

Primary Residence

Eligible households must certify that the unit will be used as a primary residence.

Subletting of affordable units is not allowed.

Sec. 6A-4-60. Monitoring and Compliance Requirements for Rental Projects Each owner of multifamily rental residentia l projects shall enter into an Inclusionary Housing Agreement (Regulatory Agreement) with the City for each residential project that contains units with affordability restrictions. As a provision of this chapter as well as the Regulatory Agreement, the Community Development Department will be responsible for tracking and monitoring all of the City’s inclusionary housing units. This includes maintaining a database of all units as well as files with the required regulatory agreements recorded against each property.

Details on the City’s affordable housing monitoring regulations and guidelines are outlined in the “Affordable Housing Moni toring Program Policies and Procedures” document, which is available from the Community Development Department. Owners of multifamily rental residential projects that ar e subject to the requirements of this chapter are required to pay an annual Monitoring Fee (the amount of the fee is to be determined by the City based on estimated cost to monitor the affordable housing units).

For residential projects that receive a state or federal housing subsidy and are, thus, subject to applicable regulatory agreements and requirements pertaining to each subsidy, these regulatory agreements shall supercede the monitoring requirements outlined in this section.

Multifamily Rental Residential Project Monitoring Requirements

The monitoring requirements of each Regulatory Agreement between the owner and the City shall include all the rental restrictions listed in this chapter and in addition shall require the following:

a) Owner shall affirmatively market t he rental units by sending advertisements describing the affordable units to local newspapers and to the list of local nonprofit and government housing organizations and agencies that serve very low and low-income persons and families.

Page 376 ends

b) Owner shall comply with all fair housing laws and not discriminate based on race, ancestry, gender, religion, color, age, national origin, marital status, familial status, sexual orientation, source of income, and disability.

c) Owner shall not discriminate based on any government rental subsidy, including but not limited to HUD Section 8 assistance. Tenants may utilize Section 8 vouchers to assist in renting inclusionary units; however, the rent levels collected for inclusionary units occupied by tenants using Section 8 vouchers shall remain at the affordable level determined pursuant to section 6A-4-40 of Chapter 6A of the City Code.

d) Agree to rent affordable units to qualified income-eligible households for a lease term not to exceed one year. At the end of each lease term, the lease may be renewed for up to one year once the owner/manager has re-certified that the household income of the affordable unit remains eligible to the restricted income level of the unit. No household shall be required to terminate its tenancy from such affordable unit absent a showing of good cause. If a very low-income household increases its income so that it no longer qualifies as a very low- income household during its tenancy, it shall be permitted to remain in the affordable unit as long as its income does not exceed the low-Income limitation (i.e. 80% of AMI). At vacancy, such unit shall be rented to an eligible very low- income household and the affordable rent level for a very low-income household, unless the affordable unit requirement has been met by renting other vacant units at the appropriate affordable rent level.

Rental projects shall be monitored every year to review tenant incomes and rents. The Community Development Department shall mail letters and forms to all property owners requesting information related to the affordable units, the rents charged, and the current tenants. The project owner is responsible for providing income certification forms (in a format either provided by or approved in adv ance by the City) to the applicable tenants and returning the completed forms to the City as required by the City’s Affordable Housing Monitoring Program Policies and Procedures.

The Community Development Department reviews the information submitted for each residential project to make sure that the project is in compliance with its Regulatory Agreement. Staff will notify the project owner of any discrepancies and establish the best practice for bringing the residential pr oject into compliance with the applicable requirements of its Regulatory Agreement in the timeliest manner possible. For example, the project owner may be required to rent out available vacant units within the residential project as affordable units, or rent out other units as they become available as affordable units, in order to meet the affordable units requirement for the residential project.
63

Page 377 ends

Article V. Requirements for For-Sale Projects.

Sec. 6A-5-10. Standards Applicable to For-Sale Projects Percentage of Affordable Units

Any developer of a for-sale residential project of at least 8 units shall make at least ten percent (10%) of the dwelling units affordable to and occupied by low-income households. Per Section 6A-3-20 of this chapter (“General Inclusionary Housing Requirements”), the City Council may determine the need to implement an additional requirement for 10 percent of new for-sale units to be affordable to moderate-income households, based on prevailing conditions in the housing market. As previously stated, such a finding would require an amendment to this chapter as well as an amendment to the Spring Lake Specific Plan and Spring Lake Affordable Housing Plan.

Term of Affordability

For-sale units shall be affordable for the longest feasible time but not less than ten (10) years. This affordability requirement of at l east ten years for affordable for-sale units will be reset at each transfer of title upon re-sale to a qualified low-income buyer, as outlined in section 6A-5-50 of this chapter (“Resale Requirements for Affordable Units”).

Requirements for Construction

Number of Bedrooms.

a) It is the goal that the Affordable units “blend in” with the Market Rate units, which can be achieved through providing a variety of elevations and unit mixes within the residential project. Affordable for sale units may be smaller in square footage than the market rate units in a residential project that trigger the affordable housing obligation to a minimum unit living area of 850 square feet. However, a mix of bedroom numbers and greater square footage among for sale homes shall be implemented whenever feasible in order to accommodate larger low income households.

Except as provided for elsewhere in this Section, there shall be an average of three bedrooms provided per affordable unit, and the Developer can provide more but not less than the average target, unless it can be clearly demonstrated that a different average is required in order for the units to be sold in the affordable marketplace.

Page 378 ends

b) A developer of a for-sale residential project may request an exemption from the requirements of this subsection if, based upon substantial evidence and financial information, such a mixture would be infeasible to the satisfaction of the Community Development Director.

Affordable units shall not be clustered but be dispersed throughout the residential project and be comparable in infrastructure (including sewer, water, and other utilities) and construction quality to the market-rate units. A cluster is considered to be four (4) or more units adjacent to each other. Duplexes shall not be allowed as the only affordable units, unless all units in the development are duplexes. The developer shall submit, along with a map review fee, proposed locations for affordable units with the tentative map for approval by the City. If the developer desires to alter the approved locations of the affordable units, the requested alterations shall be submitted, along with a map review fee, with the final map. The map review fee shall be set by resolution of the City Council, as amended from time to time.

Affordable units must be visibly indistinguis hable from the exterior in comparison with surrounding market-rate units. Affordable for-sale units may have different interior finishes and features than market-rate units so long as the interior features are durable, of good quality, and consistent with contemporary standards for new housing.

Criteria for Size and Design of Units to Meet Special Needs Housing

For residential projects that include units that meet categories of special needs housing, the criteria for size and design of these units will be addressed by the City on a project- by-project basis as guided by the Housi ng Element, and based on any new information regarding increased need or demand for special needs housing as it becomes available from the Census or other sources. The City will participate in securing funding for those projects that provide special needs housing units in a greater amount of special needs units than required by State or Federal law.

Builders of for-sale projects shall comply with applicable State and Federal laws regarding accessible design features for persons with disabilities. Homebuyers of affordable units shall be offered “universal design” or “visitability” features to be incorporated into the construction of the unit by the builder. Such modifications shall be paid for by the homebuyer, independent of and in addition to the amount calculated as the affordable purchase price of the unit. Information on “universal design” and “visitability” building features is available from the Community Development Department upon request.

Sec. 6A-5-20. Possible Alternatives to On-Site Construction of Affordable For-Sale Units
65

Page 379 ends

Possible Sale or Dedication of Land to Affordable Housing Developers.

In a possible alternative to on-site construction of affordable units, the developer may propose to either sell or dedicate sufficient residential lots to a nonprofit developer to satisfy its affordable for-sale housing obligation if, to the City’s satisfaction, it will enable the affordable housing developer to build the for-sale units and sell them at an affordable housing cost to low-income purchasers. Such an alternative proposal shall only be accepted if the Community Development Director determines that the proposal furthers the purpose of this chapter.

At the time of sale or dedication to the affordable housing developer, the residential lots shall be economically feasible to develop, of sufficient size to build the required number of affordable units, and physically suitable for development of the required affordable units. The residential lots shall also have appropriate General Plan designation and zoning to accommodate the required number of dwelling units, be fully improved with infrastructure, frontage improvements (i.e., curb, gutter, walk), paved street access, utility (i.e., water, gas, sewer, and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or as required by the City. To exercise this option, the developer shall have a maximum of ninety (90) days from the date that the residential lots are finished with the above improvements to either sell or dedicate the lots to an affordable housing developer.

Land Dedication Option

If a developer provides substantial evidence to prove that it is not feasible to develop the required affordable units on-site at a residential project, that developer may make an irrevocable offer of sufficient land within the City to satisfy the affordability requirements of this chapter. The dedicated site shall be economically feasible to develop, of sufficient size to build the required number of affordable units, and physically suitable for development of the required affordable units prior to dedication of the land.

The dedicated site shall also have appropriate General Plan designation and zoning to accommodate the required number of units, be fully improved with infrastructure, frontage improvements (i.e., curb, gutter, walk), paved street access, utility (i.e., water, gas, sewer, and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or by the City. The City ma y approve, conditionally approve, or reject such offer of dedication of any specific property. If the City rejects such offer of land dedication, the developer or its designee shall be required to meet the affordable housing obligations by other means set forth in this chapter.

Development of Dedicated Land.
66

Page 380 ends

The dedication of land for affordable for-sale lots must result in the development of affordable for-sale units and not multifamily rental units.

Within one year from the date of conveyance of the dedicated land to the City, the City shall determine, at its discretion, whether the dedicated land will be (a) developed by the City to produce the required affordable units; or (b) conveyed to an affordable housing developer or other third party who shall enter into an agreement with the City to produce such affordable units.

In-Lieu Fees.

For for-sale residential projects of less than 50 units where the City Council determines that it is not feasible or suitable for the for-sale residential project to have on-site affordable units, the City and developer may agree to a contribution of in-lieu fees to satisfy the developer’s affordable housing obligation. Only the City may initiate this in- lieu fee option and only where it is demonstrated based on substantial evidence that there is no feasible alternative.

At the time of Tentative Map approval, if applicable, the City will provide the developer with an estimate of the in-lieu fees for the residential project. This in-lieu fee calculation at the time of Tentative Map is only an estimate and is subject to revision and verification at the time of construction, as the estimated sales price of units in the residential project at the Tentative Map stage may change by the time the project is actually built.

The in-lieu fee for each affordable unit for which the developer is responsible under this provision shall be sufficient to make up the gap between (i) the affordable purchase price for a low-income household and (ii) the market value as determined by an appraisal (i.e. the “affordability gap”), plus a fee for administration of the City’s Inclusionary Housing Program. The appraisal shall be completed no earlier than six (6) months prior to the calculation of the in-lieu fee. The administration fee shall be assessed per unit of the residential project, and shall be based on an appropriate percentage of the “affordability gap” for affordable units. The in-lieu fee for a residential project shall be determined using the following methodology:

1. The market value as determined by an appraisal - (minus) the affordable purchase price of a low-income household for the residential project. This amount determines the “affordability gap.”

2. Calculate the inclusionary unit amount for the residential project at 10% of the total (fractions of a whole unit shall be rounded up).

Page 381 ends

3. Multiply the “affordability gap” by the number of inclusionary units required for the residential project.

The product of this calculation plus the administration fee per unit equals the in-lieu fee to be charged for the residential project.

An example of an in-lieu fee calculation fo r a 20-unit for-sale single-family residential project is as follows:

Market value as determined by an appraisal = $250,000
Affordable purchase price for low-income household = $150,000 Affordability Gap = $100,000
Inclusionary unit requirement = 2 units (10% of 20 units) $100,000 Affordability Gap x (times) 2 units = $200,000 $200,000 + administrative fee = in-lieu fee for the residential project

If the City determines that the developer may contribute in-lieu fees, the developer must pay such fees as a lump sum prior to the issuance of the first building permit for the residential project. No building permit or certificate of occupancy shall be issued by the City until the developer provides written proof of the payment of all in-lieu fees.

Sec. 6A-5-30. Procedure for Sale of Affordable Units
Initial Estimate of Affordable Purchase Prices

Prior to entering into an Inclusionary Housing Agreement, at the request of the developer of a for-sale residential project, the Community Development Department will assist developers in estimating the calculations of maximum affordable purchase prices based on the assumptions provided in this section. These estimations shall only be for the purpose of projecting the feasibility of the project and shall not be binding, as prevailing conditions in the housing market and fluctuations in interest rates may affect the final calculation of affordable purchase prices. The timing and procedure for final calculation of affordable purchase prices shall occur pursuant to the provisions of this section.

Method for Sale of Affordable Units

The method for the sale of affordable units is shown below. The Community Development Department shall review thes e assumptions and procedures annually and make revisions as necessary:

1. Units Appraised at Fair Market Value

Page 382 ends

At the time that the unit will be marketed and made available for sale, the fair market value of the unit will be determined. This determination will be made by a qualified appraiser who will be selected by the Community Development Director and paid for by the developer.

2. Calculation of Affordable Maximum First Mortgage

The sale of affordable units will be implem ented by a “silent second” mortgage program by the City. After the fair market value of the unit has been determined, the City will calculate the affordable maximum first mortgage amount for a qualified low-income purchaser of the unit. The following procedure will be used for determining the affordable maximum first mortgage amount:

A. Determine the family size appropriate to the unit. For purposes of this calculation, “adjusted for family size appropriate to the unit” means adjusted for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five persons in the case of a four-bedroom unit and six persons in the case of a five-bedroom unit.

B. Determine the household income available for the affordable maximum first mortgage calculation for a low-income household based on the appropriate household size using the current HUD Area Median Income figures for Yolo County. The calculation of available household income should be based on 80% of Area Median Income for the appropriate household size.

C. Calculate the amount of income available for housing costs by multiplying the income figure by 30 percent. For the purpose of determining the affordable purchase price, the cost of utilities, property taxes, insurance, primary mortgage insurance, maintenance and repair costs, and like expenses are not required to be included in the calculation. Homeowners’ association dues may be included in the calculation of affordable purchase price if the Community Development Department determines that such costs would place a substantial burden on the low-income homeowners’ ability to purchase a home and make monthly mortgage payments.

3. Limitation of Down Payment Requirement

For purposes of this calculation, required down payments for low-income purchasers shall be limited to no more than five percent (5%) of the purchase price. The developer/seller may not require a buyer to make a larger down payment but a buyer may elect to make a larger down payment in order to reduce the amount of the first 69

Page 383 ends

mortgage. This limit to the down payment re quirement is intended to provide greater flexibility for low-income homebuyers who might find it difficult to provide a higher down payment amount.

4. Calculation of “Silent Second” and Regulatory Agreement Equity Share.

The “silent second”
shall be in the amount of $1,000. A note and deed of trust, or other appropriate document, securing the silent second will be recorded and assigned to the City at the time of sale of each affordable unit. The promissory note and deed of trust, or other designated document, will remain a lien against the property, subordinate to the first mortgage. This note will have a 30-year due date which can be extended by the Community Development Director. The Regulatory Agreement recorded against the property shall include an equity share baseline in the amount of the difference between 95% of the purchase price (or purchase price minus down payment amount) and the amount of the affordable maximum first mortgage. The equity share shall be triggered and calculated at the sale of the affordable unit to a non-qualified purchaser or at a non- affordable price.

Payoff of the Silent Second and Regulatory Agreement Equity Share.

The silent second may not be prepaid during its first ten (10) years, as long as the low- income purchaser occupies the unit as their primary residence during this period. The amount due to the City under the equity share provision of the Regulatory Agreement at the eventual payoff of the silent second or the sale of the affordable unit to a non- qualified purchaser or at a non-affordable price shall be the amount which bears the equal ratio to the fair market value at the time the silent second is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

For example, if the original sales price was $200,000 and the original equity share baseline was $50,000, the ratio would be 25%. If the fair market value at the time of payoff were $400,000, the amount due the City would be $100,000, or 25% of $400,000.

In another case, if the property rose in value to $250,000, the 25% ratio would dictate the payoff amount to the City to be $62,500.

Affordable Housing Fund.

Funds received by the City through payoffs of equity share provisions of Regulatory Agreements will be deposited into the City’s Affordable Housing Fund. These funds may be used at the discretion of the Community Development Director to make additional affordable housing loans to income-qualified purchasers to facilitate the purchase of homes, to subsidize affordable multifamily proj ects, or for any other use to promote the development of affordable housing within the City of Woodland. Up to ten percent (10%) 70

Page 384 ends

of each year’s income from the Affordable Housing Fund may be used for administration and ongoing monitoring of loans made from the Fund.

Sec. 6A-5-40. Homebuyer Eligibility Requirements for Affordable Units Maximum Income Limitation

Low- income households purchasing affordable units shall have incomes that do not exceed eighty percent (80%) of the current Area Median Income for Yolo County as adjusted for household size. In the event that the developer or owner is unable to locate a qualified low-income household purchaser within ninety (90) days, the City shall market for sixty (60) days to households with incomes up to one hundred percent (100%) of the Area Median Income for Yolo County as adjusted for household size. If no qualified purchaser has been identified, the City shall then market for sixty (60) days to households with incomes up to one hundred and twenty percent (120%) of the Area Median Income for Yolo County as adjusted for household size.

Primary Residence Certification

Purchasers must certify that the home will be used as a primary residence.

Sec. 6A-5-50. Resale Requirements for Affordable Units Conditions of Owner-Occupancy Hardship

For so long as the qualified purchaser (owner) owns the unit, the unit will be occupied solely by the owner and the owner’s immediat e family as the owner’s principal place of residency. Notwithstanding the foregoing, however, the Community Development Director may authorize the owner to rent-out the affordable unit, for a cumulative period not to exceed one year, if the owner establishes to the Community Development Director’s reasonable satisfaction that the owner-occupancy requirement would cause hardship to the owner because of:

1. Divorce or separation of the owner(s);

2. The extended absence from the affordable unit by the owner because of the serious illness or disability of the owner or a member of the owner’s household or immediate family.

3. Absolute necessity for immediate relocation of the owner form the greater Sacramento area for purposes for the owners’ employment; or

4. The owner’s loss of employment.

The purpose of the foregoing limited exceptions to the owner-occupancy requirement is to allow the owner to recover from a temporary inability to occupy the affordable unit or 71

Page 385 ends

to provide for the orderly disposition of the unit in cases of hardship, and is not intended to permit long-term rental of the unit. For these reasons, the term “hardship” shall be narrowly construed and a condition of hardship shall be considered to exist for the minimum possible time.

Procedure for Resale of the Affordable Dwelling Unit

In order to maintain the affordability of the for-sale affordable units the City shall impose the following resale conditions. No for-sale affordable units shall be offered for resale or resold other than in the manner provided herein until the owner/purchaser has owned the house for ten years or longer:

1. Prior to advertising the availability of the for-sale affordable unit or otherwise offering the unit for sale, the owner shall provide the City with a Notice of Owner’s Intent to Sell the Unit. The notice shall indicate the location of the unit and the number of bedrooms contained in the unit. The notice shall provide the City a period of thirty calendar days after receipt of such notice (resale marketing period) to either (1) provide the owner with an active and current list of interested and qualified purchasers, or (2) determine that no interested and qualified purchaser is available.

2. Following the receipt of such notice, the City shall either complete or require the owner to have completed an appraisal report to determine the fair market value of the unit. This appraised value will be used by the City to determine the seller’s equity share provision obligation, equaling the amount which bears the same ratio to the fair market value at the time the note is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

The City will also use the appraisal of the affordable unit to determine the amount of subsidy in the form of the assumed and possibly increased equity share provision that will be required by the subsequent qualified purchaser of the affordable unit.

3. Upon receipt of the Notice of Owner’s Intent to Sell, the City shall also provide the owner with a disclosure form that must be completed by a prospective qualified purchaser and returned to the City. The primary purposes of the disclosure form shall be to: 1) provide the City with information that the City will need to confirm that the prospective purchaser of the unit is a qualified purchaser; and 2) ensure that the prospective purchaser of the unit is aware of the owner-occupancy and resale restrictions applicable to the affordable unit.

4. Within three days after executing any contract or agreement for sale of the affordable unit, the owner shall deliver to the City a copy of the contract or 72

Page 386 ends

agreement, together with the completed and fully executed disclosure form and evidence supporting the prospective purchaser’s gross income as shown on the disclosure form. The proposed sale shall be deemed approved unless the City, within ten days after receipt of such information, provides notice to the owner either that: 1) the proposed sale does not comply with the provisions of this chapter; or 2) additional information is required. If the proposed sale is disapproved or if the City determines that additional information is required, the notification shall be accompanied by a statement of the reason(s) for that decision.

Resale to a Qualified Purchaser

Each qualified purchaser shall be required to purchase the affordable unit with cash, a mortgage secured by a first deed of trust on the affordable unit, or a combination of the two.

At close of escrow the owner shall assign, and the qualified purchaser shall assume, the note, or other applicable document securing the City’s silent second subsidy on the property. The ten-year occupancy requirement and restrictions on re-sale applied to the original qualified purchaser of the affordable unit shall be reset to the date the note or applicable document is assumed by the subsequent qualified purchaser. The subsequent qualified purchaser shall enter into a Regulatory Agreement with the City which shall be recorded against the property.

The City may provide an additional subsidy (if available) to increase the amount of the equity share provision of the Regulatory Agreement in order to allow the qualified purchaser to purchase the unit (i.e. increase the percentage of the purchase price which is represented by the equity share baseline).

The City shall subordinate its lien to any commercial lender providing a loan to enable the qualified purchaser to purchase the affordable unit, providing the amount of such loan does not exceed the purchase price for the affordable unit plus the qualified purchaser’s actual share of closing costs and other related expenses.

Sec. 6A-5-60. Limited Exceptions to Resale Requirements Inability to Identify a Qualified Purchaser

In the event the owner or the City is unable to identify a qualified purchaser who is able to purchase the unit within the resale marketing period in compliance with the sales timelines of this chapter and the Regulatory Agreement, the City shall have the right to purchase the unit at the Affordable Purchase Price. If the City decides not to purchase the unit, the owner may, with the prior written consent of the City, sell the unit to a non- 73

Page 387 ends

qualified purchaser without regard to the purchaser’s income. The owner’s request to the City to sell to a non-qualified purc haser shall be accompanied by evidence establishing that the owner has actively and in good faith attempted to identify a qualified purchaser for the unit throughout the resale marketing period using affirmative marketing measures. “Affirmative marketing” means that the owner shall have continuously listed the property on the multiple listing service and shall have acted in good faith in responding to inquiries and offers from qualified purchasers.

In the event of an approved resale to a non-qualified purchaser due to the seller’s and the City’s inability to identify a qualified purchaser within the ten-year occupancy requirement, the seller shall be required to pay off the equity share provision of the Regulatory Agreement to the City at the close of escrow. The amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

Resale Necessitated by Hardship

The owner may sell the unit to a non-qualified purchaser during the ten-year affordability period and pay off the equity share provision of the Regulatory Agreement to the City in full if the Community Development Director reasonably determines that the sale of the unit to a non-qualified purchaser is necessa ry due to circumstances of hardship, or “excluded transfers,” which may include:

a) Financial hardship causing risk of default of the owner’s first mortgage. b) A transfer resulting from the death of the owner;
c) A transfer to the owner and his or her spouse as joint tenants; d) A transfer resulting from a decree of dissolution of marriage or legal separation or from a property settlement agreement incident to such decree;

No excluded transfer shall be effective unless the City has received a written request to approve the excluded transfer not less than thirty (30) days prior to the proposed date of transfer. Any such request shall be accompanied by documentation supporting the basis for the excluded transfer.

In the event of an approved resale to a non-qualified purchaser necessitated by the seller’s circumstance of hardship within t he ten-year occupancy requirement, the seller shall be required to pay off the equity share provision of the Regulatory Agreement to the City at the close of escrow. As previously stated, the amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.
74

Page 388 ends

The City may record a default notice on any affordable unit. In the event of default, the City, in its discretion, may purchase the unit. In the event the City purchases an affordable unit pursuant to this subsection or subsection (a)(1), the City shall take reasonable steps necessary to maintain the affordability of the unit and identify a qualified purchaser. The City shall not maintain ownership and rent the affordable unit.

Resale after Close of Ten Year Occupancy Requirement

The resale restrictions for affordable units shall be removed after a qualified purchaser has occupied the unit as their primary residence for at least ten (10) years. However, the silent second note will remain with the property secured by the deed of trust or other applicable document until either a) the unit is sold; or b) the silent second becomes amortized and payable after 30 years per the pr ovisions of this chapter, unless extended by the Community Development Director.

In the event that the affordable unit is resold at fair market value, the equity share provision of the Regulatory Agreement is due in full at the close of escrow. Again, the amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

Sec. 6A-5-70. Monitoring and Compliance Requirements for For-Sale Units Single-Family Residential Project Monitoring Requirements

Affordable for-sale units will be monitored to make sure that the owners are complying with the occupancy requirement and are not subleasing the property. Certified/return- receipt mailings will be sent to the owners of affordable for-sale units at least once every two years with a form requesting the required certifications. In addition, the mailing should restate the restrictions regarding sale or refinancing of the property.

Article VI. Administration.

Sec. 6A-6-10. Administration of Inclusionary Housing Program The Community Development Department shall be responsible for the implementation of this chapter. Guidelines implementing this chapter shall be maintained by the Community Development Department. Revisions to the guidelines necessary to comply with local, state and federal law may be approved by the Community Development Director. Any other substantive revisions to the administration of the Plan shall be made with the approval of the City Council Affordable Housing Subcommittee.

Page 389 ends

76 Sec. 6A-6-20. Administrative Review of Adverse Determinations Any applicant or other person who contends that his or her interests have been adversely affected by a determination in regard to this chapter or the guidelines prepared by the Community Development Department for the implementation of this chapter may appeal such determination to City Council by filing a written appeal with the City Clerk within ten calendar days after the determination or requirement is made. Said appeal shall be accompanied by a filing fee as pr escribed by City Council resolution. At its next regular meeting after the filing of such appeal, the City Council shall set a date for a public hearing on the matter and shall mail notice of the hearing at least ten calendar days prior to said hearing.

The City Council may reverse or modify any such determination if it finds that the action under appeal does not conform to the provisions of this chapter or to the guidelines prepared by the Community Development Department for the implementation of this chapter.

Sec. 6A-6-30. Judicial Review
Nothing in this chapter shall in any way preclude or limit any aggrieved party from seeking judicial review after such person has exhausted the administrative remedies provided by this chapter. However, it shall be conclusively presumed that a litigant has not exhausted his/her administrative remedies as to any issue which is not raised in the administrative proceedings authorized herein.

Sec. 6A-6-40. Penalties and Enforcement
Any person violating any provision or failing to comply with any of the requirements of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable for each offense by a fine, or by imprisonment in the county jail, or by both fine and imprisonment. Such person shall be deemed to be guilty of a separate offense for each and every day during any portion of wh ich any violation of this chapter is commenced, continued, or permitted and shall be punished as herein provided.

In lieu of or in addition to the penalties prescribed above, the City may institute such other legal proceedings as it deems necessary and proper for the enforcement of the terms of this chapter, including but not limited to actions for specific performance, injunctive relief, or such other legal or equitable remedies as may be available under State or Federal law.

Page 390 ends

SLSP Housing Plan
77 APPENDIX F

CITY COUNCIL RESOLUTION TO ADOPT THE AMENDED SPRING

LAKE SPECIFIC PLAN AFFORDABLE HOUSING PLAN

Page 391 ends

SLSP Housing Plan
78 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF WOODLAND AMENDING THE SPRING

LAKE AFFORDABLE HOUSING PLAN AND

APPROVING AN AMENDMENT TO THE ANNUAL

ACTION PLAN FOR THE COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG)

PROGRAM
WHEREAS, as part of the approval of the Spring Lake Specific Plan (“SLSP”), the City of Woodland (“City”) implemented an inclusionary housing program to ensure that there would be a distribution of incomes throughout the SLSP Area; and WHEREAS, the inclusionary housing program was initiated in the SLSP and was more fully defined in the Spring Lake Affordable Housing Plan (“SLAHP”) that was adopted by the City Council on May 20, 2003; and
WHEREAS, since the first units entered the inclusionary housing program in June of 2006, the City has encountered difficulties closing the units and moving in qualified purchasers; and
WHEREAS, over the course of two meetings (October 9 and 12, 2007), the City Council Affordable Housing Subcommittee reviewed proposed changes to the SLAHP and developed recommendations for appropriate revisions to the SLAHP; and WHEREAS, the City annually receives an allocation of Community Development Block Grant (CDBG) Funds from the Department of Housing and Urban Development (HUD);
WHEREAS, as part of the program requirements, the City must submit the Annual Action Plan that describes how the funding will be spent for the following program year;
WHEREAS, the Annual Action Plan is required to be amended during the year for any program changes;
WHEREAS, the City may also use CDBG funds to for first time homebuyer activities; and
WHEREAS, the City funds a CDBG housing rehabilitation program which is underutilized.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WOODLAND DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council amends and adopts the Spring Lake Affordable Housing Plan revised as provided in Exhibit “A” hereto and incorporated herein by reference.

Page 392 ends

SLSP Housing Plan
79 SECTION 2. The City Council approves amending the 2007-2008 CDBG Annual Action Plan to change the program description of the Housing Rehabilitation program to include home ownership assistance as well.

SECTION 3. Staff is directed to complete the amendment to the 2007-2008 Action Plan and forward it to HUD.

SECTION 4. The City Manager or his designee is authorized to execute any agreements, contracts or other documents with the appropriate entities to carry out the CDBG homebuyer activities.

SECTION 5. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED AND ADOPTED this 27th day of November, 2007 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
David Flory, Mayor

ATTEST:
______________________________
Sue Vannucci, City Clerk

APPROVED AS TO FORM:
______________________________
Ann M. Siprelle, City Attorney

Page 393 ends

82093.0018A\41547336.2

Memorandum
To: Mayor and City Council of the City of Woodland
From: City Attorney
Date: August 10, 2023
Re: Beeghly Ranch Affordable Housing In Lieu Fees and Comment Letter from Legal Services of Northern California

INTRODUCTION
On July 20, 2023, the Planning Commission held a public hearing to consider whether to recommend that the City Council approve a requested amendment to the Development Agreement (“DA”) with TL Revival, L.P. (“Developer”), that would allow for the payment of in lieu affordable housing fees for the Beeghly Ranch project (“Project”) in the Spring Lake Specific Plan area. The day prior to the Planning Commission hearing, Legal Services of Northern California (“LSNC”) submitted a comment letter asking the Planning Commission to reject staff’s recommendation of an in lieu affordable housing fee of $39,000 per unit and instead recommending that the Developer be required to pay a $174,650 per unit fee, plus an administration fee for staff time.

This memorandum responds to the arguments set forth in LSNC’s letter.

PROJECT BACKGROUND
As summarized in the Staff Report, the Developer agreed, through the DA, to construct 17 affordable housing units in order to satisfy its remaining affordable housing obligation as part of the proposed development.

The Developer has constructed and sold 3 of the 17 affordable units in accordance with the Inclusionary Housing Agreement. However, due to changing market conditions, including higher interest rates, increased material and labor costs, among other concerns, the gap between the affordable housing price and the cost of constructing these affordable units has risen significantly, creating a financial strain on the Project. The Developer approached the City and requested an amendment to the Development Agreement to allow for the payment of in lieu affordable housing fees rather than construct the remaining 14 units.

Page 394 ends

Best Best & Krieger LLP
82093.0018A\41547336.2

- 2 -

ANALYSIS
I. LSNC Arguments and City Responses

1. LSNC Argues the Proposed In Lieu Fee Does Not Comply with the Spring Lake Specific Plan’s Affordable Housing Plan.

LSNC argues that the $39,000 in-lieu fee per affordable unit (for a total fee of $546,000) is insufficient, because it is not based on the formula for calculating affordable housing in lieu fees set forth in the Spring Lake Specific Plan’s Affordable Housing Plan (“AHP”). LSNC argues that based on the calculation described in the AHP, the in-lieu fee should be a total of $2,445,100 for the entire project, and that the proposed Development Agreement Amendment cannot be approved based on Government Code Section 65867.5, which provides in part that a development agreement shall not be approved unless the City Council finds that the provisions of the agreement are consistent with the General Plan and any applicable specific plan.

2. City Response
The AHP does include a methodology for calculating in-lieu fees. That methodology is the methodology that was in the City’s Affordable Housing Ordinance when the AHP was adopted, approximately 20 years ago. The AHP is not part of the Spring Lake Specific Plan, but was one of several implementing documents adopted after the Specific Plan, and represents a set of “procedures and guidance for developers, city staff, real estate agents and brokers, and land owners to implement the affordable housing requirements and policies of the SLSP.” 1 Pursuant to the Spring Lake Specific Plan, the AHP was required to be prepared and “submitted to the City for review and approval” prior to acceptance of the first tentative map in the Spring Lake area.2 As noted in the staff materials, the City did not historically utilize the in-lieu fee in the AHP, because it proved to be unreliable due to the highly variable nature of the calculation methodology. In 2015, after in-lieu fees were allowed more broadly in the City, market rate housing costs and interest rates were both very low and the AHP calculation (which is based on the differential between an affordable housing price and a market rate price) provided minimal in- lieu fees since market rate prices were very close to affordable prices. In contrast, in the past year interest rates have risen sharply, resulting in significantly lower affordable prices, and a much greater gap between affordable prices and market rate prices, which creates a greater financial burden on developers.

In order to create more certainty, in 2015 staff developed and began using an in lieu fee calculation that is instead based on the amount of City investment required to actually build an 1 Spring Lake Specific Plan Affordable Housing Plan, p. 1, available at https://cityofwoodland.org/DocumentCenter/View/422/Spring-Lake-Affordable-Housing-Plan-PDF?bidId=. 2 Spring Lake Specific Plan, p. 3-10, available at https://cityofwoodland.org/DocumentCenter/View/1270/SPRING- LAKE-SPECIFIC-PLAN--December-18-2001-COMPLETE-PDF.

Page 395 ends

Best Best & Krieger LLP
82093.0018A\41547336.2

- 3 -
affordable multi-family unit, with the goal of obtaining sufficient funds from developers to provide assistance to those with the greatest need for housing in the community. Staff adjusts the fee amount each year based on Consumer Confidence Index (“CCI”) adjustments. The City has negotiated this fee on a case-by-case basis for developments in Spring Lake, and developers commit to pay the fee amount through a statutory development agreement, which is adopted by ordinance.

Pursuant to Woodland Municipal Code section 15.16.200(C), developers may be permitted to pay an in lieu fee to satisfy all or some of their affordable housing obligations if it is not feasible to develop the affordable dwelling units on site as part of the project, or the Community Development Director determines that the payment of in lieu fees would accomplish the objectives of the City’s affordable housing ordinance. If an in lieu fee is permitted, it is calculated based on “an adopted fee schedule designating in lieu fees” or, if no fee schedule has been adopted, “the City Council may allow payment of in-lieu fees upon review of the project’s affordable housing plan and as memorialized in a documented agreement.” The City has not formally adopted an in- lieu fee schedule yet, so in recent years it has memorialized the commitment to pay in-lieu fees by entering into development agreements with developers.

The City’s Affordable Housing Ordinance (Woodland Municipal Code Chapter 15.16) provides:
“The affordable housing ordinance shall regulate development of affordable housing in the Spring Lake specific plan (“SLSP”) except to the extent that a specific provision or regulation in the SLSP conflicts with the affordable housing ordinance. In this event, the SLSP shall control. Where the SLSP is silent or ambiguous, the provisions of this chapter shall apply directly for the purpose of interpretation, as appropriate.” (Woodland Municipal Code Section 15.16.040(B).)
The Specific Plan does contemplate that developers in Spring Lake could pay affordable housing in-lieu fees, and it does contemplate that an Affordable Housing Plan would be adopted, but it does not contemplate that the Spring Lake in-lieu fees had to be calculated pursuant to the Affordable Housing Plan. The AHP incorporated the methodology for calculating in-lieu fees that was in the City’s Affordable Housing Ordinance when the Specific Plan was over 20 years ago. It is entirely reasonable, and more consistent with the language of the Specific Plan itself and the Affordable Housing Ordinance, for the City to implement in-lieu fee payments through a development agreement, consistent with its current Affordable Housing Ordinance. The Specific Plan itself is not in conflict with the City’s Affordable Housing Ordinance, and therefore under Section 15.16.040(B), the provisions of the Affordable Housing Ordinance control.

Interpretation of the City’s General Plan and Spring Lake Specific Plan is directly in the purview of the City Council, and the Council is entitled to great deference in interpreting those

Page 396 ends

Best Best & Krieger LLP
82093.0018A\41547336.2

- 4 -
documents.3 The City may therefore, at its discretion, agree to an in-lieu fee amount through a development agreement, as specifically contemplated in the City’s Affordable Housing Ordinance, notwithstanding the language in the AHP.

3. LSNC Argues the Proposed In-Lieu Fee is Inconsistent with the Housing Element of the General Plan
LSNC additionally argues that the proposed in lieu fee is inconsistent with the City’s Housing Element because the Housing Element commits the City to “require the provision of affordable housing as a component of market-rate projects, as codified in the Municipal Code [and] . . . implement the affordable housing requirements of the Spring Lake Specific Plan as applicable.

LSNC also argues that the proposed amendment impacts the City’s ability to affirmatively further fair housing and comply with the Housing Element.

4. City Response
For the reasons stated above, the proposed Development Agreement Amendment does comply with the Affordable Housing Ordinance, and the Affordable Housing Ordinance governs this decision, as the provisions of the Specific Plan regarding in-lieu fees do not conflict with the Affordable Housing Ordinance. Therefore there is no inconsistency with the Housing Element.

Further, the City does not believe this Amendment would inhibit the City’s ability to affirmatively further fair housing. The City’s recently adopted Housing Element includes specific programs to affirmatively further fair housing, and none of them prohibit the City from receiving in-lieu fees in accordance with the requirements of the City’s Affordable Housing Ordinance.

Additionally, if approved this amendment would (1) allow these small lot homes which typically sell at a lower price point and are therefore more “affordable by design” to move forward and provide homes for households that may not qualify for affordable housing, but would still struggle to buy a home in Woodland without the availability of this product type, and (2) the City would receive additional in-lieu fees that are typically used to provide affordable housing at deeper affordable housing levels, serving those in our community most in need of housing. City staff therefore does not believe the proposed Amendment would inhibit the City’s ability to affirmatively further fair housing.

II. Conclusion
For the reasons stated above, we do believe the City Council has the discretion to approve the proposed Amendment to the Development Agreement. It is important to emphasize, however, that this is ultimately a policy decision for the City Council. The developer voluntarily agreed to construct the currently required affordable units pursuant to both the Development Agreement and the Inclusionary Housing Agreement, and they are currently bound to do so under the terms of 3 See, e.g., Orange Citizens for Parks & Rec. v. Sup. Ct. (2016) 2 Cal.5th 141 (“Reviewing courts must defer to a procedurally proper consistency finding unless no reasonable person could have reached the same conclusion”).

Page 397 ends

Best Best & Krieger LLP
82093.0018A\41547336.2

- 5 -
those Agreements. The City Council can amend the Development Agreement if you choose to do so, but that is entirely within the discretion of the Council.

If you have any questions in response to this memo prior to the Council meeting please let me know.

ETHAN WALSH

Page 398 ends

1536 Eureka Road o: 916 677 5717 Roseville, CA 95661 northstatebia.org August 8, 2023 Ken Hiatt City Manager 300 First Street, 2nd Floor Woodland, CA 95695 Subject: Support for Fair In-Lieu Fees Dear Mr. Hiatt, On behalf of the North State Building Industry Association (BIA) and its more than 500 members in the home building industry, I am writing to affirm our support for fair in-lieu fee programs. The housing needs in our region are about more than just any one type of housing, and the BIA is proud to work with builders and local jurisdictions who play vital roles in the creation of attainable housing. The successful construction of attainable housing in our region is a need that requires conscious collaboration between all parties involved. We are grateful that so many jurisdictions in the Sacramento Region have created a means for home builders to contribute to the construction of attainable housing in a meaningful and impactful way. This includes cities and counties, including Woodland, that have established an in-lieu fee program for builders to support affordable housing development. The success of these programs relies on the fees being calculated in a way that benefits the jurisdiction collecting them without promoting overly burdensome costs for builders. In a region where builders already pay an average of nearly $100,000 in fees per unit, the slightest increase in construction cost can make the difference in whether a local family can purchase a new home or not, at any pricing level. For this reason, we urge the leadership of the City of Woodland to continue utilizing in-lieu fee calculations that are fair for all builders. Excessive fees discourage builders from working in jurisdictions, which means no new housing for any income levels. In a market where construction costs and interest rates are ever changing, builders take on great risk with every new project and we appreciate the City’s willingness to be a partner in supporting new housing for all. Sincerely, Vance Jarrard, Legislative Advocate North State Building Industry Association Cc: Woodland City Councilmembers

Page 399 ends

TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: August 15, 2023
ITEM #: L.24
SUBJECT: Approval of Fiscal Year 2022/23 and Fiscal Year 2023/24 Animal Services Contracts

Recommendation for Action: Staff recommends that the City Council adopt Resolution No. _____, approving the Fiscal Year 2022/23 and Fiscal Year 2023/24 Animal Services Agreements with Yolo County for the amount of $1,090,770 and $1,184,000, respectively.

Staff Contact:

Kim McKinney, Administrative Services Director, (530) 661-5849, [email protected]

Fiscal Impact:

The proposed contracts result in an annual cost of $1,090,770 for FY2022/23 and $1,184,000 for FY2023/24 for animal services provided through a contract with Yolo County. This cost does not reflect an offset for licensing and other revenues collected specifically for Woodland by the Yolo County Sheriff's Office. Any revenues actually received throughout fiscal year 2022/23 and 2023/24 will be credited against quarterly payments. Historically, revenue offsets average around $190,000.

The proposed contract for FY2022/23, net of revenue estimates, totals $908,950. This is consistent with the FY2022/23 adopted budget, and represents an increase of 12% from FY2021/22. Because the FY2022/23 contract was not approved and therefore not paid out of the FY23 budget, the unexpended budget will be carried over into FY2023/24 and paid with the funds that were originally intended to cover these costs.

The proposed contract for FY2023/24, net of revenue estimates, totals $990,673. This is consistent with the FY2023/24 adopted budget, and represents an increase of 9% from FY2022/23.

Background:

The County of Yolo, through the Sheriff’s Department/Animal Control Division and under an agreement with the City of Woodland, provides animal control services to the Woodland community. Section 6.0.4 of the Woodland Municipal Code, adopted in 1974, delegates animal control responsibilities and authority to the County. The Animal Control Services Division of the Yolo County Sheriff’s Office provides animal control services to all cities in the county, the University of California at Davis, and all unincorporated areas of the county. The Division staff includes animal control officers who respond to calls for service in our community, and animal shelter staff who maintain a safe and humane environment for animals that have been taken to the shelter. Additionally, the Division has and/or contracts for veterinary and other staff available to care for injured animals. The Division performs all animal control services for the City, including animal licensing, pick up of stray or injured animals, pick up of dead animals, quarantine of animals when required, and the sheltering, release and adoption of impounded animals. For health and safety reasons, some animal services such as vicious animal calls or dog bite reports are mandated.

The cost of providing these services is allocated between the County and the cities based upon an agreed-upon methodology that includes allocation of fixed annual costs, as well as a proportional share of "variable" costs, based on a three-year average of the number of service calls received from each jurisdiction (animal control) and the number of animals housed at the shelter (animal services).

Page 400 ends

The County also collects and retains all fees (license fees collected from pet owners, redemption fees, neutering fees, etc.) for the animal control program. Each jurisdiction is, in turn, credited for the amount of fees collected. Previously, the contract amount for a fiscal year was calculated as the net amount of the total cost of service, less the anticipated fee revenues. Beginning in FY21/22, the contract cost is the total cost of service without credit for any revenues. Actual revenues received will be offset against quarterly invoiced costs.

The table below shows the ten-year history of the net cost paid by the City for animal control services:

In FY2021/22, in response to the continued rising costs of animal services, the County and representatives from the participating jurisdictions established a working group to focus efforts on reviewing operational costs and trends, cost allocation methodologies and service levels. The working group has been meeting regularly throughout the last 18 months, and while these efforts were underway to get better information about the costs and service levels, the City did not approve the agreement for services during fiscal year 2022/23.

Discussion:

For FY2023/24, the overall cost of supporting the County's animal services functions was estimated at $3,998,469, and the County anticipates collection of $552,460 in revenue. The total net cost for animal services, based on the revenues assumed, would be $3,446,010; this represents an increase over the FY22/23 budget of more than 9%. The cost allocated to the City of Woodland reflects both our proportionate share of this general increase, as well as adjustments made resulting from updating the three-year average of calls for service and animal intake at the shelter.

Attachment 1 shows totals for the last three years (2020-2022) for calls for service related to patrol, and for animal intake at the shelter for all of the participating jurisdictions. In addition to the overall budget for the animal services division, these calls for service are the most significant factor in determining the City's total cost each year.

Although the County has provided information in the past about the total number of calls for service, no information was gathered or tracked regarding what types of calls were driving work efforts and costs. Working with the dispatch center, new codes have now been assigned to animal service calls allowing for better information tracking and sharing. These new call statistics were shared with the

Page 401 ends

working group, but the number of months of information available is limited, and additional analysis will be required moving forward. This also allows the City to determine if certain types of services or calls should be directed to City staff rather than dispatching animal service officers to better manage our costs.

In addition to reviewing statistics for calls for service, the working group also spent time reviewing the overall animal services operating budget. The group requested to receive five-year forecasts to help with planning for future costs, and for a review of budgets compared to other animal services programs in the surrounding areas. None of which have been prepared or provided in previous years. This review highlighted persistent underspending of the animal services budget over the last few years, primarily from vacancies on full-time staff as well as underutilization of the contract with UC Davis for veterinary services. Because annual allocations to the cities are based on budget, these budgetary savings accumulate in a reserve within animal services. To ensure these funds are accounted for and spent appropriately and through a transparent process, a reserve policy was developed in consultation with the working group and recently adopted by the County Board of Supervisors. The primary use of reserve funds is expected to be for facility repairs and some equipment purchases. The working group has further asked for a facility plan to allow for planning and prioritization for the larger facility maintenance projects. A first iteration of a plan has been shared with the working group with future refinements expected based on input provided by the group.

The County collects all revenues related to pet licensing, adoption and other miscellaneous revenues. Each of the jurisdictions is credited for their share of these revenues when paying their quarterly payments per the contract. In the current contract, the County has agreed to complete a fee study to see if these revenues are sufficient to cover costs and comparable to other agencies. This study will be completed during FY23/24 and will include input and review from the cities.

Finally, as part of the focus on managing costs while enhancing services, the working group also discussed the need for better education and outreach to each of the communities. In the current contract, the County has agreed to develop a social media toolkit to assist the County and the jurisdictions in promoting licensing and microchipping of animals and will also develop a comprehensive Community Engagement Workplan to guide future community outreach efforts. This is to be completed by March 15, 2024.

Staff will return to City Council in April as part of the initial budget process for FY 24/25 to provide an update to the City Council on these issues and provide recommendations to Council on ways to reduce the City's costs for animal services going forward.

Conclusion:

Staff recommends that the City Council adopt Resolution No. _____, approving the Fiscal Year 2022/23 and Fiscal Year 2023/24 Animal Services Agreements with Yolo County for the amount of $1,090,770 and $1,184,000, respectively.

Prepared by: Kim McKinney, Administrative Services Director

Page 402 ends

Attachments:

1. Attachment 1 - Animal Services Statistics

2. Resolution - FY23 and FY24 Animal Services Contracts

3. Animal Services Joint Services Contract - Woodland 2024

4. Animal Services Joint Services Contract - Exhibit A

5. FY 2023 Woodland Animal Services Agreement

Page 403 ends

YOLO COUNTY SHERIFF

ANIMAL STATS
Animal Intake Calendar Year:
2020 2021 2022 3 yr Average % 2019 2020 2021
3 yr
Average %
Yolo County 865 1,214 1,143 1,074 25% 1,250 865 1,214 1,110 24% Davis 414 509 527 483 11% 966 414 509 630 13% UC Davis 33 27 25 28 1% 30 33 27 30 1% West Sacramento 937 976 998 970 23% 1,188 937 976 1,034 22% Winters 54 96 81 77 2% 101 54 96 84 2% Woodland 1,409 1,619 1,714 1,581 38% 2,422 1,409 1,619 1,817 39% Total 3,712 4,441 4,488 4,213 5,957 3,712 4,441 4,703 Calls for Service
2020 2021 2022 3 yr Average % 2019 2020 2021
3 yr
Average %
Yolo County 1,339 1,406 1,424 1,390 20% 1,449 1,339 1,406 1,398 19% Davis 865 930 840 878 13% 1,061 865 930 952 13% UC Davis 219 187 202 203 3% 271 219 187 226 3% West Sacramento 1,932 2,034 2,425 2,130 30% 2,296 1,932 2,034 2,087 29% Winters 143 182 257 194 3% 204 143 182 176 2% Woodland 2,253 2,294 2,103 2,217 32% 2,450 2,253 2,294 2,332 33% Total 6,751 7,033 7,251 7,012 7,731 6,751 7,033 7,172 Licenses Sold ($)
2020 2021 2022
3 yr Average
(FY21-22)
Yolo County 64,996 53,028 75,989 64,671 14% Davis 127,092 112,598 163,237 134,309 29% UC Davis 934 912 1,277 1,041 0% West Sacramento 85,552 68,763 91,419 81,911 18% Winters 17,039 12,738 17,856 15,878 3% Woodland 165,085 137,228 200,520 167,611 36% Total 460,698 385,267 550,298 465,421

Page 404 ends

RESOLUTION NO: __________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND APPROVING THE FISCAL YEAR 2022/23 AND FISCAL YEAR 2023/24 ANIMAL

CONTROL SERVICES AGREEMENTS WITH YOLO COUNTY
WHEREAS, the County of Yolo, through the Sheriff-Coroner’s Office, provides animal control services to the City of Woodland through a contractual agreement; and WHEREAS, Section 6.0.4 of the Woodland Municipal Code adopts the Animal Control Law of the County of Yolo and delegates animal control responsibilities and authority to the County; and
WHEREAS, the City and County enter into annual agreements for the provision of animal control services; and
WHEREAS, the cost of providing animal control services to the City of Woodland for FY2022/23 is $1,090,770; and
WHEREAS, the cost of providing animal control services to the City of Woodland for FY2023/24 is $1,184,000; and
WHEREAS, the City’s portion of revenues collected by Yolo County for licensing and from other revenue sources will be reduced from quarterly invoices;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WOODLAND HEREBY RESOLVES:

Section 1. The Agreement between Yolo County and the City of Woodland for Animal Control Services for FY2022/23 and the Agreement for FY2023/24 are approved.

PASSED AND ADOPTED by the City Council this 15th day of August 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Vicky Fernandez, Mayor
ATTEST:

Page 405 ends

RESOLUTION NO: __________________
____________________________________,
Ana B. Gonzalez, City Clerk

APPROVED AS TO FORM
__________________________
Ethan Walsh, City Attorney

Page 406 ends

1 YOLO COUNTY AGREEMENT NO.

AGREEMENT BETWEEN THE COUNTY OF YOLO AND THE CITY OF

DAVIS, CITY OF WEST SACRAMENTO, CITY OF WINTERS, CITY OF

WOODLAND, AND UNIVERSITY OF CALIFORNIA, DAVIS FOR

ANIMAL CONTROL SERVICES
This Agreement (“Agreement”) is made and entered into this 1st day of July 2023, by and between the County of Yolo, a political subdivision of the State of California (“County”) and the Cities of: Davis, West Sacramento, Winters, and Woodland, municipalities under the laws of the State of California, and The Regents of the University of California on behalf of its Davis campus (“Recipients”).

RECITALS
WHEREAS, the Recipients have a need for animal control services within their areas under their jurisdiction and control; and
WHEREAS, the County has been competently providing these animal control services to the Recipients for several years; and
WHEREAS, the Recipients have expressed their desire to have the County continue to provide animal control services within the Recipients’ territory subject to the terms of this Agreement; and WHEREAS, the County is willing to continue to provide animal control services within the territory of the Recipients subject to the terms of this Agreement.

NOW, THEREFORE, the Recipients and the County agree as follows:

I. SERVICES TO BE PROVIDED BY THE COUNTY
A. Subject to the terms of this Agreement, the County shall provide animal control services, through the Animal Services division of its Sheriff’s Office, within the territory of the Recipients. Services provided are described as follows:

1. The pickup of stray animals not in the presence of their owners that may be injured or sick and require the provision of veterinary care per Penal Code section 597.1. County shall provide, at its expense, microchip scanners to jurisdictional partner agencies, and shall provide training in the usage of the equipment. Local agencies shall make reasonable effort to identify and return lost or stray animals to their proper owner prior to contacting County Animal Services.

2. County, in coordination with and incorporating recommendations and input from Recipients, shall develop a social media toolkit to assist County and Recipients in promoting licensing and microchipping of animals and will also develop a comprehensive Community Engagement Workplan to guide future community outreach efforts; the toolkit and workplan will be developed no later than March

Page 407 ends

2 15, 2024.

3. The provision of rabies control, including the quarantine of bats, raccoons, skunks, foxes, or other animals that are suspected of rabies infection and have had contact with a person or domestic animal, and the pickup of these animals for testing and licensing per Health and Safety Code sections 120210-121690.

4. The pickup and disposal of animal carcasses found on public property. Disposal of carcasses located on or adjacent to highways are the responsibility of CalTrans. Disposal of carcasses on private property are the responsibility of the property owner; County may agree to collect carcasses from private property at request of the property owner and will assess an appropriate fee.

5. Response to vicious animals.

6. Response to free roaming or contained stray dogs.

7. Assistance to the Sheriff’s Office, local police departments, California Highway Patrol, local fire departments, and other emergency response agencies with the items listed above.

8. Response to Animal Complaint Reports such as barking dogs, trespassing animals, crowing fowl or other nuisance complaints made during regular field service hours shall be forwarded to the appropriate local enforcement agency for initial response.

For ongoing or persistent nuisance complaints, Animal Services will investigate to bring the issue to resolution. For complaints brought directly to a County agent’s attention in the field, if the agent believes the complaint may be immediately addressed without the need to forward or involve other agencies they may choose to respond at their own discretion.

9. The County will respond to calls regarding animals classified as wildlife if there is an immediate rabies control issue. For wildlife calls lacking a rabies concern, County will respond if no other agency or service is available to respond.

10.County will provide licensing services and enforcement thereof as described in the Yolo County Code and/or Municipal Animal Ordinances.

B. Field services shall be limited to 8:00 a.m. to 5:00 p.m., six days a week, Monday through Saturday. Shelter services shall be limited to 10:00 am to 5:00 pm Monday through Friday, and 10:00 am to 4:00 pm on Saturday. Services will be provided outside these hours only when authorized in advance by a representative of the Recipient, except when required by Health and Safety Code sections 121595 and 121600 or Penal Code section 597.1.

C. The County agrees to operate and maintain its kennels and animal shelter in a sanitary condition at all times in accordance with the laws of the State of California.

D. The County shall provide all facilities, equipment, personnel, labor, supervision,

Page 408 ends

3 supplies, and materials necessary to provide the animal control services required by this Agreement; however, in all instances where special supplies, stationary, notices, forms and the like must be issued in the name of a Recipient, the same shall be supplied by the Recipient at its own cost and expense.

E. The County shall complete a study regarding non-adoption fees and fines assessed by Yolo County Animal Services. The study will be provided to Recipients for input and review prior to finalization. The study will be completed in FY 2023-24 and will be used to inform updates to fee/fine amounts or types of fees/fines assessed.

A summary of efforts will be included in the year-end reporting for FY 2023-24.

II. COMPENSATION TO BE PAID BY THE RECIPIENTS
A. Recipients agree to compensate the County on a quarterly basis, in the following amount:

Contract Period 07/01/2023-06/31/2024
Party Compensation Quarterly Payment
City of Davis $604,576 $151,145
City of West Sacramento $943,029 $235,758
City of Winters $86,068 $21,518
City of Woodland $1,184,000 $296,000
UC Davis $68,721 $17,181
B. Quarterly payment is due and payable by check within 30 days of receipt of invoice.

Invoicing will occur quarterly in four equal installments equaling the amount listed in Section II (A), and as modified in Section II (C).

C. Quarterly Payment Credit - In consideration of the rendition of the forgoing services by the County, the Recipients agree that the County shall be entitled to any and all license and other fees provided for in the Yolo County Code and/or Municipal Animal Ordinances. A review of revenue collected from licensing and other revenue sources from within the Recipients’ jurisdictions will be conducted on a quarterly basis. The Recipients’ portion of revenue for licensing and from other revenue sources will be reduced from the quarterly invoice from the County.

D. Hourly Rates – The County may bill the Recipients, in addition to the annual agreed compensation, an additional hourly fee for services provided outside of normal operational hours or for extraordinary incidents. An “Extraordinary Incident” is defined as an incident that requires more than ten (10) county staff hours. The hourly f e e is $47.00 per hour. The County will bill these charges

Page 409 ends

4 quarterly.

E. Savings – Any unspent portion of annual payment resulting from unanticipated animal services savings will be placed in an “Animal Services Reserve Fund” for uses approved in the Animal Services Reserve Account Policy. Savings will be identified within the “Animal Services Budget Forecast” that the County will provide the Recipients. Funds will be utilized per established County policy, with appropriate notice to local jurisdictions and approval by the Yolo County Board of Supervisors.

F. County shall retain all impounding fees and revenue derived from the adoption and redemption of animals at the County shelter as additional compensation for the care and feeding of such animals.

G. Newly assessed Indirect/Administrative Costs and Salary Allocation costs shall be phased in over a three-year period using the following percentages:

FY 23-24: 40%
FY 24-25: 70%
FY 25-26: 100%
III. REPORTS
The County shall provide the Recipients with quarterly and year-end statistical reports regarding field hours, calls, citations, adoptions, redemptions, licenses, fees, volunteer hours, and such additional information as the County deems appropriate or as reasonably requested by Recipients. In addition, the after-hours callout dispatch records will be attached with the monthly statistics for review. No charge will be made for these materials. Quarterly reports will be due within 45 days of the end of each quarter, and the year-end report will be due within 60 days of the end of the Fiscal Year.

IV. CONTRACT EXTENSIONS
The contract shall be extended twice for one year per extension unless the participating City/UCD opts out as provided in this Section. The County will provide rates for the extension period no later than March 15 of each year. Any election to opt out of the extension must be exercised by the participating City/UCD within 45 days from its date of receipt of the extension rates. A written reminder of the extension and opt out rights will be provided alongside Q2 invoices.

V. OWNERSHIP OF DOCUMENTS AND WORK PRODUCTS
All professional and technical documents and information developed under this Agreement, and all work product, including writings, worksheets, reports, and related data, materials, copyrights and all other rights and interests therein, shall remain the property of the County.

VI. RECORDS RETENTION

Page 410 ends

5 The County agrees to keep such books and records concerning the services it provides pursuant to this Agreement in such form and manner as the County Auditor may specify. These books and records shall be open for examination by Recipient officials at all reasonable times.

VII. TERM AND TERMINATION
A. The term of this Agreement shall be from July 1, 2023, until June 30, 2024, unless extended in accordance with Section IV or sooner terminated as hereinafter provided.

B. Should any party fail to substantially perform its obligations in accordance with this Agreement, the other party or parties may notify the defaulting party of such default in writing and provide not less than 15 days to cure the default. Such notice shall describe the default and shall not be deemed a forfeiture or termination of this Agreement. If such default is not cured within said 15-day period (or such longer period as is specified in the notice or agreed to by the parties), the party that gave notice of default may terminate this Agreement upon not less than 15 days advance written notice. The foregoing notwithstanding, neither party waives the right to recover damages against the other for breach of this Agreement.

C. This Agreement may be terminated for any reason by either party at any time during the term of this Agreement, provided that thirty 30 days’ written notice is given.

VIII. INDEMNIFICATION
Each party shall indemnify, defend, protect, hold harmless, and release the other, their elected bodies, officers, agents, and employees, from and against any and all claims, losses, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any negligent act or omission or willful misconduct of such indemnifying party. This indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages or compensation payable to or for the indemnifying party under workers’ compensation acts, disability benefit acts, or other employee benefit acts.

IX. APPLICABLE LAWS
In the performance of the services required by this Agreement, both parties shall comply with all applicable Federal, State, and County statutes, ordinances, regulations, directives and laws. The laws of the State of California shall govern the validity, enforceability or interpretation of this Agreement. Any action or proceeding arising out of this Agreement shall be filed and resolved in the Superior Court of California, County of Yolo.

X. NOTICE
A. Any notice necessary to the performance of this Agreement shall be given in writing by personal delivery or by prepaid first-class mail addressed as provided below:

City of Davis: City of Davis City Manager’s Office

Page 411 ends

6 23 Russell Blvd, Suite 1
Davis, CA 95616
Attn: Michael Webb
(530) 757-5602
City of West Sacramento: City of West Sacramento City Manager’s Office 1110 West Capitol Avenue, 3rd Floor
West Sacramento, CA 95691
Attn: Aaron Laurel
(916) 617-4500
City of Winters: City of Winters City Manager’s Office
318 1st Street
Winters, CA 95694
Attn: Kathleen Salguero Trepa
(530) 794-6702
City of Woodland: City of Woodland City Manager’s Office 300 First Street
Woodland, CA 95695
Attn: Ken Hiatt
(530) 661-5800
UC Davis: The Regents of the University of California
One Shields Avenue
Davis, CA 95616
Attn: Valerie A. Roque
(530) 661-5800
County: Yolo County Sheriff’s Office
140 Tony Diaz Drive
Woodland, CA 95776
Attn: Denny Cheuk
(530) 668-5264
B. Either party may change the address or other contact information to which such communications are to be given by providing the other parties with written notice of such change at least 15 calendar days prior to the effective date of the change.

XI. AMENDMENT
This Agreement may be amended only by written instrument signed by all parties.

XII. WAIVER
Any failure of a party to assert any right under this Agreement shall not constitute a waiver or a termination of that right, under this Agreement or any of its provisions.

Page 412 ends

7 XIII. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral. In the event of a dispute between the parties as to the language of this Agreement or the construction or meaning of any term hereof, this Agreement shall be deemed to have been drafted by the parties in equal parts so that no presumptions or inferences concerning its terms or interpretation may be construed against any party to this Agreement.

Page 413 ends

8 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

County of Yolo City of Davis
By By
Oscar Villegas, Chair Will Arnold, Mayor
Yolo County Board of Supervisors City of Davis
Attest: Attest:

Julie Dachtler, Deputy Clerk [Insert Name], City Clerk
Board of Supervisors City of Davis
By By
Deputy (Seal) Deputy (Seal)
Approved as to Form: Approved as to Form:

By By
Philip Pogledich, County Counsel [Insert Name], City Attorney City of West Sacramento City of Winters
By By
Martha Guerrero, Mayor Bill Biasi, Mayor
City of West Sacramento City of Winters
Attest: Attest:
[Insert Name], City Clerk [Insert Name], City Clerk
City of West Sacramento City of Winters
By By
Deputy (Seal) Deputy (Seal)
Approved as to Form: Approved as to Form:

By By
[Insert Name], City Attorney [Insert Name], City Attorney

Page 414 ends

9 City of Woodland University of California, Davis
By By
Vicky Fernandez, Mayor [Insert Name, [Insert Title]
City of Woodland University of California, Davis
Attest: Attest:

Ana Gonzalez, City Clerk [Insert Name], Clerk
City of Woodland University of California, Davis
By By
Deputy (Seal) Deputy (Seal)
Approved as to Form: Approved as to Form:

By By
Ethan Walsh, City Attorney [Insert Name], Attorney

Page 415 ends

Exhibit A – Cost Allocation Methodology
Costs relating to the provision of Animal Services within Yolo County and participating jurisdictions are allocated between the County and Recipients utilizing the following methodology:

1. As part of its annual budget cycle, County prepares a budget for its Animal Services division for the upcoming fiscal year.

2. Total expenditures are split into two portions: 35% of the total is considered Fixed Costs, and 65% is considered Variable Costs. Variable Costs further divides into Shelter and Patrol Costs.

3. 95% of Fixed Costs are allocated equally between County and Cities of Davis, West Sacramento and Woodland. 5% of Fixed Costs are allocated equally between the City of Winters and UC Davis.

4. The Variable Costs are apportioned among the County and Recipients based on three-year rolling averages of Patrol Calls and Animal Intake originating from each jurisdiction. a. To complete the calculation, costs are split into Patrol Costs and Shelter Costs. The three-year average is then used to determine County and Recipient share of each pool.

E.g. for Fiscal Year 2023, County share of Shelter Costs was 23.59%, and Patrol Costs was

19.5%. The average used for this allocation is reassessed annually as part of the annual cost calculations.

5. Compensation due for contracted services is a sum of the allocated Fixed and Variable Costs.

Page 416 ends

1 YOLO COUNTY AGREEMENT NO.______

AGREEMENT BETWEEN THE COUNTY OF YOLO

AND THE CITY OF WOODLAND FOR

ANIMAL CONTROL SERVICES

This Agreement (“Agreement”) is made and entered into this 1st day of July, 2022, by and between the County of Yolo, a political subdivision of the State of California (“County”) and the City of Woodland, a municipality under the laws of the State of California (“City”).

RECITALS

WHEREAS, the City has a need for animal control services within its corporate limits; and

WHEREAS, the County has been competently providing these animal control services to the City for several years; and

WHEREAS, the City has expressed its desire to have the County continue to provide animal control services within the City’s corporate limits subject to the terms of this Agreement; and

WHEREAS, the County is willing to continue to provide animal control services within the corporate limits of the City subject to the terms of this Agreement.

NOW, THEREFORE, the City and the County agree as follows:

I. SERVICES TO BE PROVIDED BY THE COUNTY

A. Subject to the terms of this Agreement, the County shall provide animal control services, through the Animal Control Section of its Sheriff’s Office, within the corporate limits of the City.

Services provided shall include:

1. The pickup of stray animals not in the presence of their owners that may be injured or sick and require the provision of veterinary care per Penal Code section 597(f).

2. The provision of rabies control, including the quarantine of biting animals and the pickup of high-risk rabies animals for testing and licensing per Health and Safety Code sections 120210-121690.

3. Assistance to the Yolo County Coroner, fire departments, or other law enforcement agencies.

4. Response to vicious animals.

Page 417 ends

2 5. Response to free roaming or contained stray dogs.

6. Services provided by the County shall be limited as follows:

a. Response to Animal Complaint Reports such as barking dogs, trespassing animals, crowing foul or other nuisance complaints will be limited to receiving and forwarding complaints.

b. The County will not respond to calls regarding animals classified as wildlife unless there is a bat, skunk, or a rabies control issue.

B. Services shall be limited to 8:00 a.m. to 5:00 p.m., six days a week, Monday through Saturday. Services will be provided outside these hours only when authorized in advance by a representative of the City, except when required by Health and Safety Code sections 121595 and 121600 or Penal Code section 597f.

C. The County agrees to maintain its kennels and animal shelter in a sanitary condition at all times in accordance with the laws of the State of California.

D. The County shall provide all facilities, equipment, personnel, labor, supervision, supplies, and materials necessary to provide the animal control services required by this Agreement; however, in all instances where special supplies, stationary, notices, forms and the like must be issued in the name of the City, the same shall be supplied by the City at its own cost and expense.

II. COMPENSATION TO BE PAID BY THE CITY

A. City agrees to compensate the County annually, on a quarterly basis, in the following amount:

Contract Year Annual Compensation Quarterly Payment

07/01/2022-06/30/2023 $ 1,090,770 $272,692.50

B. Quarterly payment is due and payable by check within the first 30 days of each quarter to prevent Agreement termination.

C. Quarterly Payment Credit - In further consideration of the rendition of the foregoing services by the County, the City agrees that the County shall be entitled to any and all license and other fees provided for in the Yolo County Code and/or the Municipal Animal Ordinance. A review of revenue collected from licensing and other revenue sources from within the City’s jurisdiction will be conducted on a quarterly basis. The City’s portion of revenue for licensing and from other revenue sources will be reduced from the quarterly invoice from the County.

Page 418 ends

3 D. Hourly Rates – The County may bill the City, in addition to the annual agreed compensation, an additional hourly fee for extraordinary incident s. An “ Extraordinary Incident” is defined as an incident that requires more than ten (10) county staff hours. The hourly rate for Extraordinary Incide nts is $47.00 per hour. The County will bill t hese charges quarterly.

E. Savings – Any unspent portion of annual payment resulting from unanticipated animal services savings will be placed in an “Animal Services Trust” for future shelter projects, animal services equipment and/or replacements items. Savings will be identified within the “Animal Services Budget Forecast” that the County will provide the City.

F. County shall retain all impounding fees and revenue derived from the adoption and redemption of animals at the County shelter as additional compensation for the care and feeding of these animals.

III. REPORTS

The County shall provide the City with monthly and year-end statistical reports regarding field hours, calls, citations, adoptions, redemptions, licenses, and such additional information, as the County deems appropriate. In addition, the after-hours callout dispatch records will be attached with the monthly statistics for review. No charge will be made for these materials.

The County shall provide an additional analysis of current animal control services expenses, cost projection for the next five (5) fiscal years assuming current service levels, and comparison of City of Woodland services and usage to similar jurisdictions no later than February 1, 2023. This information will be consistent and coordinated to the extent practicable with County ’s data compilation and analytic efforts supporting the Yolo Animal Services Planning Jo int Powers Agency. The County shall also provide an analysis of year-end operating results compared to the approved budget, including a comparison of amounts paid by jurisdiction to actual results. This year end reconciliation shall be provided no later than December 31, 2023.

IV. OWNERSHIP OF DOCUMENTS AND WORK PRODUCTS

All professional and technical documents and information developed under this Agreement, and all work product, including writings, worksheets, reports, and related data, materials, copyrights and all other rights and interests therein, shall remain the property of the County.

V. RECORDS RETENTION

The County agrees to keep such books and records concerning the services it provides pursuant to this Agreement in such form and manner as the County Auditor may specify. These books and records shall be open for examination by City officials at all reasonable times.

VI. TERM AND TERMINATION

A. The term of this Agreement shall be from July 1, 2022 until June 30, 2023, unless

Page 419 ends

4 sooner terminated as hereinafter provided.

B. This Agreement may be extended for a period of one year based on mutual agreement of the County and the City.

C. Should either party fail to substantially perform its obligations in accordance with this Agreement, the other party may notify the defaulting party of such default in writing and provide not less than 15 days to cure the default. Such notice shall describe the default, and shall not be deemed a forfeiture or termination of this Agreement. If such default is not cured within said 15-day period (or such longer period as is specified in the notice or agreed to by the parties), the party that gave notice of default may terminate this Agreement upon not less than 15 days advance written notice. The foregoing notwithstanding, neither party waives the right to recover damages against the other for breach of this Agreement.

D. This Agreement may be terminated for any reason by either party at any time during the term of this Agreement, provided that thirty 30 days’ written notice is given.

VII. INDEMNIFICATION

Each party shall indemnify, defend, protect, hold harmless, and release the other, their elected bodies, officers, agents, and employees, from and against any and all claims, losses, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any negligent act or omission or willful misconduct of such indemnifying party. This indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages or compensation payable to or for the indemnifying party under workers’ compensation acts, disability benefit acts, or other employee benefit acts.

VIII. APPLICABLE LAWS

In the performance of the services required by this Agreement, both parties shall comply with all applicable Federal, State, and County statutes, ordinances, regulations, directives and laws. The laws of the State of California shall govern the validity, enforceability or interpretation of this Agreement. Any action or proceeding arising out of this Agreement shall be filed and resolved in the Superior Court of California, County of Yolo.

IX. NOTICE

A. Any notice necessary to the performance of this Agreement shall be given in writing by personal delivery or by prepaid first-class mail addressed as provided below:

City of Woodland: City of Woodland City Manager’s Office 300 First Street
Woodland, CA 95695
Attn: Ken Hiatt

Page 420 ends

5 (530) 661-5800

County: Yolo County Sheriff’s Office
140 Tony Diaz Drive
Woodland, CA 95776-9327
Attn: Denny Cheuk
(530) 668-5264

B. In lieu of written notice to the above addresses, any party may provide notice through the use of facsimile machines provided confirmation of delivery is obtained at the time of transmission of the notices and provided the following facsimile telephone numbers are used:

City: (530) 661-5813 County: (530) 668-5283

If notice is given by personal delivery, notice is effective as of the date of personal delivery.

If notice is given by mail, notice is effective as of the day following the date of mailing. If notice is given by facsimile notice is effective as of the time of confirmation of transmission.

C. Either party may change the address or facsimile number to which such communications are to be given by providing the other parties with written notice of such change at least 15 calendar days prior to the effective date of the change.

X. AMENDMENT

This Agreement may be amended only by written instrument signed by the County and the City.

XI. WAIVER

Any failure of a party to assert any right under this Agreement shall not constitute a waiver or a termination of that right, under this Agreement or any of its provisions.

XII. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Cit y and the County and supersedes all prior negotiations, representations, or agreements, whether written or oral. In the event of a dispute between the parties as to the language of this Agreement or the construction or meaning of any term hereof, this Agreement shall be deemed to have been drafted by the parties in equal parts so that no presumptions or inferences concerning its terms or interpretation may be construed against any party to this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

Page 421 ends

6 County of Yolo City of Woodland

By_______________________________ By__________________________ Supervisor Angel Barajas, Chair Mayra Vega, Mayor Yolo County Board of Supervisors City of Woodland

Attest: Attest:

Julie Dachtler, Senior Deputy Clerk Ana Gonzalez, City Clerk Board of Supervisors City of Woodland

By______________________________ By__________________________ Deputy (Seal) Deputy (Seal)

Approved as to Form: Approved as to Form:

By______________________________ By__________________________ Philip Pogledich, County Counsel City Attorney

Page 422 ends

Woodland City CouncilAugust 15, 2023

Woodland City Council
August 15, 2023