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HomeMy WebLinkAbout2020-06-01 City Council Regular Meeting Agenda Packet June 1, 2020 4:59 PM City Council Regular Meeting Agenda Page1 MAYOR Roland Velasco COUNCIL MEMBERS Marie Blankley Dion Bracco Peter Leroe-Muñoz Carol Marques Fred Tovar Cat Tucker CITY COUNCIL AGENDA CITY OF GILROY CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET GILROY, CA 95020 REGULAR MEETING 6:00 P.M. MONDAY, JUNE 1, 2020 CITY COUNCIL MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org VIEW THE MEETING LIVE ON THE CITY WEBSITE www.cityofgilroy.org. PUBLIC PARTICIPATION IN THIS MEETING WILL BE LIMITED. MEMBERS OF THE PUBLIC ARE ENCOURAGED TO PARTICIPATE BY EMAILING ALL PUBLIC COMMENTS TO THE CITY CLERK shawna.freels@cityofgilroy.org OR BY LEAVING A VOICE MESSAGE COMMENT BY CALLING (408) 846-0204, PRIOR TO 5:00 P.M. JUNE 1, 2020. THE JUNE 1, 2020 MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDER N-29-20 In order to minimize the spread of the COVID 19 virus, the City will be offering telephone and email options for public comments at this meeting. The public is encouraged to participate in this meeting by telephone or email as follows: You are strongly encouraged to watch the City Council meeting live on the City of Gilroy’s website at www.cityofgilroy.org or on Cable Channel 17. To view from the website, select the Council Agendas and Videos button from the home page. PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL.COMMENTS MAY BE EMAILED TO THE CITY CLERK PRIOR TO OR DURING THE MEETING AT shawna.freels@cityofgilroy.org AND MUST BE RECEIVED BEFORE THE MAYOR OPENS PUBLIC COMMENT FOR THE ITEM. ADDITIONALLY, COMMENTS MAY BE MADE BY LEAVING A VOICE MESSAGE AT (408) 846-0204, PRIOR TO 5:00 P.M. JUNE 1, 2020. IMPORTANT: identify the Agenda Item Number or PUBLIC COMMENT in the subject line of your email. The City Clerk will read the first three minutes of each email into the public record. In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk a minimum of 2 hours prior to the meeting at (408) 846-0204. City Council Regular Meeting Agenda 06/1/2020 Page2 If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. The City Council meets regularly on the first and third Monday of each month, at 6:00 p.m. If a holiday, the meeting will be rescheduled to the following Monday, with the exception of the single meeting in July which lands on the first day of the month not a holiday, Friday, Saturday or Sunday. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or shawna.freels@cityofgilroy.org I. OPENING A. Call to Order 1. Pledge of Allegiance 2. Invocation 3. City Clerk's Report on Posting the Agenda 4. Roll Call B. Orders of the Day II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations - NONE III. PRESENTATIONS TO THE COUNCIL City Council Regular Meeting Agenda 06/1/2020 Page3 PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL PUBLIC COMMENTS MAY BE SUBMITTED BY EMAIL TO: shawna.freels@cityofgilroy.org, (This portion of the meeting is reserved for persons desiring to address the Council on matters not on this agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written material provided by public members for Council agenda item “public comment by Members of the Public on items not on the agenda” will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically.) City Council Regular Meeting Agenda 06/1/2020 Page4 IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Gilroy Downtown Business Association Board (alternate), Gilroy Sister Cities Association (alternate), Santa Clara Co. Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Planning Advisory Committee (alternate), South County Regional Wastewater Authority Board, South County Youth Task Force Policy Team (alternate), Street Naming Committee Council Member Tucker –CalTrain Policy Group, Cities Association of Santa Clara Co. Board of Directors, General Plan Advisory Committee, Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Street Naming Committee, Visit Gilroy Board Council Member Blankley - ABAG (alternate), Cities Association of Santa Clara Co. Board of Directors (alternate), Economic Development Corporation Board, Gilroy Sister Cities Association, Gilroy Youth Task Force (alternate), SCVWD Joint Council-SCRWA- Board Water Resources Committee, South County Regional Wastewater Authority Board, VTA Board of Directors Alternate, VTA Policy Advisory Committee, VTA South County City Group Council Member Marques - Gilroy Downtown Business Association Board, Gilroy Gardens Board of Directors, Santa Clara Valley Habitat Agency Governing Board (alternate), Santa Clara Valley Habitat Agency Implementation Board (alternate), Silicon Valley Clean Energy JPA Board (alternate), URM Task Force Sub-Committee, VTA Committee for Transit Accessibility (alternate) Council Member Tovar –Santa Clara Co. Expressway Plan 2040 Policy Advisory Board, Recycling and Waste Reduction Commission, Santa Clara Co. Library JPA (alternate), SCVWD Water Commission (alternate), Silicon Valley Clean Energy JPA Board, South County Regional Wastewater Authority Board, South County United for Health, Street Naming Committee, VTA Committee for Transit Accessibility, VTA Policy Advisory Committee (alternate) Council Member Leroe-Muñoz - ABAG, CalTrain Policy Group (alternate), Gilroy Youth Task Force, Historic Heritage Committee, SCVWD Water Commission, Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force Policy Team, VTA Mobility Partnership Mayor Velasco - Economic Development Corporation Board, General Plan Advisory Committee, Historic Heritage Committee (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, South County Joint Planning Advisory Committee, South County Regional Wastewater Authority Board (alternate), URM Task Force Sub-Committee, VTA Mobility Partnership, VTA South County City Group (alternate) V. FUTURE COUNCIL INITIATED AGENDA ITEMS VI. CONSENT CALENDAR (ROLL CALL VOTE) All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears. City Council Regular Meeting Agenda 06/1/2020 Page5 A. Minutes of the May 18, 2020 Regular Meeting B. A Resolution of the City Council of the City of Gilroy Authorizing the Submittal of an Application for Grant Funding Through the Local Early Action Planning Grants Program, Administered by the California Department of Housing and Community Development. C. A Resolution of the City Council of the City of Gilroy Setting the Annual Fireworks Service Fee for Impacts on City Fire and Police Services Related to the Sale and Use of Safe and Sane Fireworks Pursuant to Gilroy City Code Section 10A VII. BIDS AND PROPOSALS A. Approval of an Agreement With Community Solutions in a Amount Not To Exceed $111,000 for Support With South County Youth Task Force Strategies 1. Staff Report: Scot Smithee, Police Chief 2. Public Comment 3. Possible Action: Approve an agreement with Community Solutions in an amount not to exceed $111,000 and authorize the Interim City Administrator to execute the agreement and related documents. B. Approval of a Third Amendment to the Agreement for Services with EOA Inc. for Bacteria Testing and Monitoring Related to the City Stormwater Compliance Project 1. Staff Report: Girum Awoke, Public Works Director 2. Public Comment 3. Possible Action: Approve a third amendment to the agreement with EOA Inc. in the amount of $54,000 for continued services into Fiscal Year 2020-2021 of the Bacteria Monitoring and Implementation Plan. VIII. PUBLIC HEARINGS A. Approval of Funding Priorities for Community Development Block Grant (CDBG) and Housing Trust Fund (HTF) Programs for Fiscal Year 2020-2021 and Receipt of Comments on the Draft 2020-2025 Consolidated Plan 1. Staff Report: Karen Garner, Community Development Director 2. Disclosure of Ex-Parte Communications 3. Open Public Hearing 4. Close Public Hearing 5. Possible Action: Motion to continue the public hearing to the June 15, 2020 regular meeting. IX. UNFINISHED BUSINESS City Council Regular Meeting Agenda 06/1/2020 Page6 A. General Fund Financial Recovery Plan - Sustainable Budget Recommendations 1. Staff Report: Jimmy Forbis, Interim City Administrator 2. Public Comment 3. Possible Action: Approve the City of Gilroy General Fund Financial Recovery Plan and direct staff to commence implementation of the recovery plan’s recommendations. B. Approve Recommendations for Coronavirus Aid, Relief, and Economic Security (CARES) Act Funding for Small Business COVID-19 Relief Program 1. Staff Report: Karen Garner, Community Development Director 2. Public Comment 3. Possible Action: Approve Gilroy’s Small Business COVID-19 Relief Program for Small Business Assistance, and authorize the City Administrator to enter into an agreement with a selected program administrator. C. Standing Report on Operational Impacts and City/Community Efforts Related to the COVID-19 Pandemic 1. Staff Report: Mark Bisbee, Interim Fire Chief 2. Public Comment 3. Possible Action: Receive report. X. INTRODUCTION OF NEW BUSINESS A. Adoption of a Resolution Temporarily Rescinding and Modifying Sections of the Gilroy City Code to Implement a Business Stimulus Package to Support and Assist Businesses Affected by COVID-19 1. Staff Report: Karen Garner, Community Development Director 2. Public Comment 3. Possible Action: Adopt a resolution of the City Council of the City of Gilroy to temporarily suspend enforcement of certain sections of the Gilroy City Code in an effort to support businesses and development activity and aid in the economic recovery of the City resulting from the impacts of COVID-19. B. Consent of the Appointment of Scot Smithee as Interim Police Chief (Retired Annuitant) Effective June 2, 2020 and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement City Council Regular Meeting Agenda 06/1/2020 Page7 1. Staff Report: LeeAnn McPhillips, Human Resources Director/Risk Manager 2. Public Comment 3. Possible Action: a) Consent of the Interim City Administrator's recommendation to appoint Scot Smithee as Interim Police Chief (as a retired annuitant) effective June 2, 2020. b) Adopt a resolution approving the appointment of Scot Smithee as Interim Police Chief (Retired Annuitant) pursuant to California Government Code Section 21221(h) and authorizing the Interim City Administrator to execute his employment agreement. C. Pay Freeze for Unrepresented Department Head and Council-Appointed Employees for Fiscal Year 2021 and Fiscal Year 2022 1. Staff Report: LeeAnn McPhillips, Human Resources Director/Risk Manager 2. Public Comment 3. Possible Action: Adopt a resolution of the City Council of the City of Gilroy freezing the salaries for unrepresented Department Head and Council-Appointed employees for Fiscal Year 2021 and Fiscal Year 2022. D. Pay Freeze for City Council Members for Fiscal Year 2021 and Fiscal Year 2022 1. Staff Report: Roland Velasco, Mayor 2. Public Comment 3. Possible Action: Adopt a resolution of the City Council of the City of Gilroy freezing City Council and Mayor stipends at July 1, 2019 amounts for Fiscal Year 2021 and Fiscal Year 2022. XI. CITY ADMINISTRATOR'S REPORTS XII. CITY ATTORNEY'S REPORTS XIII. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17A.11 (4); Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters; AFSCME Local 101 Representing Employees Affiliated with AFSCME, Local 101; Gilroy Management Association (GMA); Gilroy Police Officers Association, Inc. Representing Gilroy Police Officers; Unrepresented Confidential Exempt Employees, Unrepresented Confidential Non- Exempt Employees, Non-Exempt Part-Time/Temporary/ Seasonal Employees, Exempt Part-Time/Temporary/Seasonal Employees and Department Head Employees City Negotiators: Jimmy Forbis, Interim City Administrator, LeeAnn McPhillips, HR Director; Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy City Council Regular Meeting Agenda 06/1/2020 Page8 Fire Fighters Local 2805, City of Gilroy and AFSCME Local 101 Representing Employees Affiliated with AFSCME, Local 101; City of Gilroy and the Gilroy Management Association (GMA); City of Gilroy and Gilroy Police Officers Association, Inc. B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2); Employee Name/Title: Shawna Freels, City Clerk 1. Public Comment on Closed Session Items 2. Adjourn to Closed Session ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Councilmember if required by Government Code Section 54957.1 and Gilroy Code Section 17A.13 (a); Public Report of the vote to continue in closed session if required under Gilroy Code Section 17A.11 (5) ADJOURNMENT MEETING DATES JUNE, 2020 1* Regular Meeting - 6:00 p.m., City Council Chambers 15* Regular Meeting - 6:00 p.m., City Council Chambers 29 CANCELLED Special Joint Meeting with Santa Clara Valley Water District - 6:00 p.m. JULY, 2020 1* Regular Meeting - 6:00 p.m., City Council Chambers 1 City Council Meeting Minutes 05/18/2020 City of Gilroy City Council Meeting Minutes May 18, 2020 I. OPENING A. Call to Order The meeting was called to order at 6:00 PM by Mayor Roland Velasco 1. Pledge of Allegiance The pledge of allegiance was led by Council Member Bracco. 2. Invocation The invocation was given by Pastor Greg Quirke of South Valley Community Church. 3. City Clerk's Report on Posting the Agenda The Mayor announced that the agenda had been posted on May 13, 2020 at 3 p.m. Attendee Name Title Status Arrived Roland Velasco Mayor Remote 6:00 PM Marie Blankley Council Member Remote 6:00 PM Dion Bracco Council Member Remote 6:00 PM Peter Leroe-Muñoz Council Member Remote 6:00 PM Carol Marques Council Member Remote 6:00 PM Fred Tovar Council Member Remote 6:00 PM Cat Tucker Council Member Remote 6:00 PM B. Orders of the Day There were no agenda changes. C. Employee Introductions There were none. II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations Mayor Velasco read the proclamation and Council Member Marques then read a letter from the Miller Red Barn Association thanking the Council for the proclamation. 1. Proclamation Naming July 27, 2020 Henry Miller Day III. PRESENTATIONS TO THE COUNCIL A comment was submitted by Chamber Director Mark Turner asking the Cit y to urge County Officials and the Health Department to open business in the County. A comment was submitted by Zachary Hilton detailing the Bike Gilroy program. 6.A Packet Pg. 9 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 2 City Council Meeting Minutes 05/18/2020 Public comment was then closed. IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco described a recent incident with a local business attempting to serve customers. Council Member Blankley reported that the EDC and VTA meetings had focused on finances. She then reported on the Cities Association success with testing sites and varying City opinions on opening up the County economy. Council Member Tucker announced the Cities Association appointment of Morgan Hill Mayor Constantine to the LAFCO Board. Council Member Marques described the facade improvements in the downtown. Council Member Tovar thanked staff for cleaning up areas of the downtown and reported the financial support being provided throughout the City by the Clean Energy Authority. Council Member Leroe-Muñoz reported on the Mobility Partnership work to improve regional transportation within the highway 152/156/25 corridor. Mayor Velasco described his meeting with County Officials to address reopening the County, and the implementation of a County mobile van for COVID testing. V. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Tovar asked to agendize a future item to develop a recovery plan for local businesses, both short term and long term. Council Member Bracco asked to schedule study sessions to develop incentives to help business to reopen quickly and streamlining permit processes for new businesses. Mayor Velasco asked to agendize an ordinance to anticipate future County health guidelines to allow business to open in public space with outdoor operations and waiving permit fees. The Council agreed to agendize the items. VI. CONSENT CALENDAR (ROLL CALL VOTE) There were no public comments. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker A. Minutes of the May 4, 2020 Regular Meeting B. A Resolution of the City Council of the City of Gilroy Extending the Existence of a Local Emergency as Issued by the Director of Emergency Services 6.A Packet Pg. 10 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 3 City Council Meeting Minutes 05/18/2020 C. Annual Re-Adoption of the City's Investment Policy as Required by Government Code Section 53646(a) D. Claim of Diana Clark (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) E. Claim of Veronica Henderson (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim F. Claims of Law Offices of Richard J. Plezia Representing Two Claimants Related to the Gilroy Garlic Festival Incident - Lopez (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of each claim) G. Claim of Rosetta Mullens (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) H. Claims of Law Offices of Richard J. Plezia Representing Four Claimants Related to the Gilroy Garlic Festival Incident - Salazar (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of each claim) I. Second Amendment to Countywide Household Hazardous Waste Management Agreement J. Approval of an Amendment to the Agreement with the County of Santa Clara for the Youth Task Force Extending the Term Two Years and Accepting Additional Funding and Adoption of a Resolution Approving Budget Amendments in Fiscal Years 2019-20 and 2020-21 in the Gang Prevention and Intervention Fund 227 K. Declaration of Surplus Property and Approval of a Purchase and Indemnification Agreement for the Police Department Canine "Scotty" L. Approval of a Parcel Map and Dedication of Public Service Easement for 5717 Obata Way, Gilroy; APN 841-76-014 VII. PUBLIC HEARINGS There were none. VIII. BIDS AND PROPOSALS A. Extension of the Memorandum of Understanding With Garlic City BMX for a BMX Pump Track The item was presented by Interim City Administrator Forbis. Public comment was opened. Gina Hallick submitted a comment requesting that the BMX park not be placed at the Gilroy Sports Park. Mary Garcia of Garlic City BMX provided comment describing the efforts of the organization, and asked the Council to extend the agreement. 6.A Packet Pg. 11 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 4 City Council Meeting Minutes 05/18/2020 Zachary Hilton sent a comment in support of the extension of the agreement and describing the benefits of the proposal. Jodi Hall submitted a comment in support of the MOU extension and benefits of the sport. Eugene Bernosky sent in a comment in support of the MOU extension detailing the benefits of BMX cycling. Tamara Goldie submitted a comment in support of the MOU extension and benefits of the track for community members. Teresa Perez sent a comment asking that the BMX track not be removed from the sports park master plan. Dwayne Taylor's comment asked that the BMX track not be removed from the sports park master plan. Public comment was then closed. Possible Action: Authorize the Interim City Administrator to sign an extension of the Memorandum of Understanding with Garlic City BMX for a BMX pump track through May 20, 2021. RESULT: APPROVE [UNANIMOUS] MOVER: Marie Blankley, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker IX. UNFINISHED BUSINESS A. Report on General Fund Expenditures, Impacts of COVID-19 to Non- General Fund Revenues and Preliminary Recovery Plan Recommendations The staff report was presented by Interim Finance Director Atkins and Interim City Administrator Forbis. Public comment was opened. A comment was submitted by Toni Bowles of the Neon Exchange asking that funding for downtown parking not be used to offset budget shortfalls. Comment was submitted by John Taft and Gary Walton of the Downtown Business Association asking the city to consider increasing the tax base by working with businesses and not postpone downtown parking project plans. Rebeca Armendariz commented that the City should be careful in reopening the city businesses to avoid the continued spread of COVID 19. Public comment was then closed. 6.A Packet Pg. 12 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 5 City Council Meeting Minutes 05/18/2020 Direction was given to remove the $1.5 million for parking from the budget cuts and add the land acquisition funding. Possible Action: Receive report and provide direction to staff. B. Standing Report on Operational Impacts and Other City Efforts Related to the COVID-19 Pandemic The staff report was introduced by Interim Fire Chief Bisbee and further presented by Captain Wyatt and City Attorney Faber. Public comment was opened. Comment was submitted by Rebeca Armendariz asking that the Council not move too quickly in opening up as COVID19 was easily transferred. Public comment was then closed. Council gave direction to staff to draft a letter urging the County to re -open for businesses, to be signed by the full Council. Possible Action: Receive report X. INTRODUCTION OF NEW BUSINESS A. Update on Fire Department Standards of Cover Performance Measures The staff report was presented by Interim Fire Chief Bisbee. There were no public comments. Possible Action: Receive report. B. Amendment to the City of Gilroy Position Control List for the Reclassification of the Deputy City Administrator Position to E conomic Development Manager The staff report was presented by Interim City Administrator Forbis. There were no public comments. Possible Action: Receive report and approve amendments to the position control list contained within the Fiscal Year 20 and Fiscal Year 21 budget. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Carol Marques, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker C. Progress Report on the Implementation Action Plan for the Strategic Plan for Fiscal Years 2019-2020 and 2020-2021 6.A Packet Pg. 13 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 6 City Council Meeting Minutes 05/18/2020 The item was presented by Interim City Administrator Forbis. There were no public comments. Possible Action: Receive report. XI. CITY ADMINISTRATOR'S REPORTS Interim City Administrator Forbis described the research with PG&E on adding Gourmet Alley into the undergrounding district, announced the High Speed Rail Authority public meetings and thanked residents for their patience with the City. XII. CITY ATTORNEY'S REPORTS There were none. XIII. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17A.11 (4); Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters; AFSCME Local 101 Representing Employees Affiliated with AFSCME, Local 101; Gilroy Management Association (GMA); Gilroy Police Officers Association, Inc. Representing Gilroy Police Officers; Unrepresented Confidential Exempt Employees, Unrepresented Confidential Non - Exempt Employees, Non-Exempt Part-Time/Temporary/ Seasonal Employees, Exempt Part-Time/Temporary/Seasonal Employees and Department Head Employees City Negotiators: Jimmy Forbis, Interim City Administrator, LeeAnn McPhillips, HR Director; Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805, City of Gilroy and AFSCME Local 101 Representing Employees Affiliated with AFSCME, Local 101; City of Gilroy and the Gilroy Management Association (GMA); City of Gilroy and Gilroy Police Officers Association, Inc. Public comment was submitted by Zachary Hilton who suggested the City consider revising residency requirements for Firefighters Public comment was then closed. ADJOURNMENT The Council adjourned to closed session at 9:40 p.m. /s/ Shawna Freels, MMC City Clerk 6.A Packet Pg. 14 Communication: Minutes of the May 18, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) City of Gilroy STAFF REPORT Agenda Item Title: A Resolution of the City Council of the City of Gilroy Authorizing the Submittal of an Application for Grant Funding Through the Local Early Action Planning Grants Program, Administered by the California Department of Housing and Community Development. Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Community Development Department Submitted By: Cindy McCormick Prepared By: Cindy McCormick Cindy McCormick Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety  Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a resolution of the City Council of the City of Gilroy authorizing application for and receipt of Local Early Action Planning Grant (LEAP) program grant funds. EXECUTIVE SUMMARY The City of Gilroy is eligible for up to $150,000 in funding under the Local Early Action Planning (LEAP) Grants Program, administered by the California Department of Housing and Community Development (HCD). The LEAP Grant funding can be used for the preparation and adoption of planning documents and process improvements that 1) accelerate housing production; and 2) facilitate compliance in implementing the sixth cycle of the regional housing need assessment (RHNA). The grant application deadline 6.B Packet Pg. 15 is July 1, 2020 and must include a resolution adopted by the City Council approving the grant application. BACKGROUND On January 27, 2020, the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) for the Local Early Action Planning (LEAP) Grants Program. The funds are made available through the State of California’s 2019-20 Budget Act which provides a spectrum of support, incentives, resources and accountability to meet California’s housing goals. The maximum amount available to the City of Gilroy is $150,000 based on its population size of less than 60,000. The funds are available under a noncompetitive, over-the- counter process so long as the submitted project is an eligible activity. The LEAP Grant funding can be used for the preparation and adoption of planning documents and process improvements that 1) accelerate housing production; and 2) facilitate compliance in implementing the sixth cycle of the regional housing need assessment (RHNA). In order to be eligible for grant funding, the application must be completed, signed, and physically mailed to HCD by the Ju ly 1, 2020 deadline. The application must also include a signed resolution of approval from the City Council. All grant funds must be expended by December 31, 2023. ANALYSIS To be eligible for the funding, the City of Gilroy must propose and document plan s or processes that plan for and facilitate accelerating local housing production. The application must demonstrate a significant positive effect on accelerating housing production through faster timing, lower cost, approval certainty, entitlement streamli ning, feasibility, infrastructure capacity, or positive impact on housing supply and affordability. Eligible activities may be part of a larger planning effort (e.g., the zoning code update) if the proposed activities have not been completed prior to the n otice of funding date, are distinct, and demonstrate a nexus to accelerating housing production. The California Department of Housing and Community Development provided a comprehensive list of eligible activities in the attached Notice of Funding Availability. Staff reviewed the entire list of eligible activities and selected projects that align with the City’s General Plan Housing Element Goals, Policies, and Programs. Staff also based their selection on projects that could be successfully accomplished b y existing and experienced City staff in an efficient and judicious manner and projects that are necessary to comply with regional and/or state requirements. This approach will help the City recover General Fund expenditures otherwise used to cover staff c osts directly 6.B Packet Pg. 16 related to the preparation, adoption, and administration of the funded activity; in line with the City Council’s Strategic Plan Goals to Ensure Financial Stability. The following is a brief description of the four (4) potential projects staff is proposing to include in the City of Gilroy’s LEAP grant application: 1. Rescind the Residential Development Ordinance (RDO) and Amend the RDO Affordable Housing Exception Policy. This project would rescind the existing Ordinance and amend and rename the RDO Affordable Housing Exception Policy to comply with State legislation. This project implements Housing Element Program H-1.B to review and revise the Ordinance/policy to ensure that it does not pose a constraint on the maintenance, improvement, and devel opment of housing and to provide capacity to meet the City’s RHNA. 2. Prepare and Implement an Affordable Housing Ordinance . This could take the form of an Inclusionary Housing Ordinance or an Affordable Housing Incentives Ordinance. An Inclusionary Ordinance would require all residential developments over a certain size to restrict a certain number of units as affordable and would be in line with what many other jurisdictions throughout California have implemented to satisfy State mandated Regional Housing Need Allocations (RHNA). An Inclusionary Ordinance would also allow for more controls over rental and owner - occupied affordable units (Housing Element Implementation Programs H -3.D and H-3.E). Alternatively, the City could adopt an Affordable Housing Incentives Ordinance that takes a “carrot versus stick” approach to meeting the City’s RHNA. A Housing Incentives Ordinance could include incentives such as streamlined review and/or regulatory incentives that go beyond the Density Bonus Ordinance (Programs H- 1.D and H-2.A). These incentives could also target specific areas identified for more affordable housing, including the Downtown Gilroy Specific Plan area and the City’s Neighborhood Districts (Program H-2.A) or specific housing types such as micro-units (Program H-1.G). The City could also prioritize specific needs identified in the Housing Element, including but not limited to extremely-low income households (Program H-2.G), large households (Program H-4.A), and senior households (Program H-4.B). 3. Prepare a Housing Sites Inventory. The Housing Sites Inventory would build upon the City’s existing Residential Vacant Land Inventory and update it in accordance with State law as it pertains to Housing Elements. This update would include non - vacant and underutilized sites in accordance with Government Code Section 65583.2(b)(3) and Section 65583.2(g). The update must also comply with Government Code Section 65583.2(c) which requires the City to demonstrate that the projected residential development capacity of the sites identified in the housing element can realistically be achieved. Recent legislation has made it more difficult for cities to designate sites that can accommodate their fair share of affordable 6.B Packet Pg. 17 housing in the next RHNA cycle. This project aligns with Housing Element Implementation Program H-1.A to update the City’s Inventory of residential sites annually, or as projects are approved on the sites. 4. Develop Mixed-Use Development Standards for the Downtown Specific Plan . This LEAP Grant funded project would be one component of a larger effort to completely update the Downtown Specific Plan. This project aligns with Housing Element Policy H-1.6 and Implementation Program H-2.A to encourage mixed-use development comprised of retail, office, and higher density residential uses in the Downtown Specific Plan Area. This project would include a review of existing residential uses downtown and investigate, as appropriate, potential incentives, concessions, and programs if residential uses are not being developed as assumed in the Specific Plan. City staff would work closely with the Downtown Gilroy Business Association and relevant stakeholders on this project. ALTERNATIVES 1. The City Council may choose to not adopt a resolution authorizing the City Administration to submit a LEAP grant application. Without this action, the City will not be eligible for the $150,000 and will have fewer financial resources to support increased housing production, which would be inconsistent with the City’s General Plan Housing Element and Implementation Program H-2.B to pursue and support applications for funding to help increase the supply of affordable housing. As such, this alternative is not recommended. FISCAL IMPACT/FUNDING SOURCE The $150,000 in grant funding would be used to re cover City staff costs directly related to prepare, adopt, and administer the funded activity. Grant funding could also be used, as needed, to hire sub-consultants to complete any work (e.g., sites analysis) that cannot be accomplished entirely by staff. CONCLUSION The proposed projects will allow development of the policies and ordinances needed to support increased housing production, consistent with the City of Gilroy General Plan Housing Element and the purpose of the LEAP Grant Program. NEXT STEPS If the City Council adopts the resolution, staff will complete and submit an application for $150,000 in LEAP grant funding for the proposed projects, as supported by the Council. 6.B Packet Pg. 18 PUBLIC OUTREACH No specific public outreach was performed for this report. Attachments: 1. Resolution LEAP Application 2. LEAP Notice of Funding Availability 6.B Packet Pg. 19 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING APPLICATION FOR AND RECEIPT OF LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS WHEREAS, pursuant to Health and Safety Code 50515 et. Seq, the Department of Housing and Community Development (Department) is authorized to issue a Notice of Funding Availability (NOFA) as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the Local Early Action Planning Grants program or LEAP); and WHEREAS, the City Council of the City of Gilroy desires to submit a LEAP grant application package (“Application”), on the forms provided by the Department of Housing and Community Development, for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment; and WHEREAS, the Department of Housing and Community Development issued a NOFA and Application on January 27, 2020 in the amount of $119,040,000 for assistance to all California Jurisdictions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY (“Applicant”) as follows: SECTION 1. 1. The Interim City Administrator is hereby authorized and directed to apply for and submit to the Department of Housing and Community Development the Application package; 2. In connection with the LEAP grant, if the Application is approved by the Department of Housing and Community Development, the Interim City Administrator of the City of Gilroy is authorized to submit the Application, enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of $150,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the LEAP grant, the Applicant’s obligations related thereto, and all amendments thereto; and 3. The Applicant shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department of Housing and Community Development after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and 6.B.a Packet Pg. 20 Attachment: Resolution LEAP Application [Revision 1] (2790 : Local Early Action Planning (LEAP) Grant Application) RESOLUTION NO. 2020-XX timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the NOFA and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application. PASSED AND ADOPTED this 1st day of June, 2020 by the following roll call vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS APPROVED: _______________________________ Roland Velasco, Mayor ATTEST: _______________________________ Shawna Freels, City Clerk 6.B.a Packet Pg. 21 Attachment: Resolution LEAP Application [Revision 1] (2790 : Local Early Action Planning (LEAP) Grant Application) STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY Gavin Newsom, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF FINANCIAL ASSISTANCE 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2771 / FAX (916) 263-2763 www.hcd.ca.gov January 27, 2020 MEMORANDUM FOR: All Potential Applicants FROM: Zachary Olmstead, Deputy Director Division of Housing Policy Development SUBJECT: NOTICE OF FUNDING AVAILABILITY - LOCAL EARLY ACTION PLANNING GRANTS PROGRAM The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05) (Chapter 159, Statutes of 2019). LEAP provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the regional housing need assessment (RHNA). In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an Over-the-Counter (OTC) basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Program applications, forms and instructions are available on the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. If you have questions regarding this NOFA, please email the Department at EarlyActionPlanning@hcd.ca.gov. Attachment 6.B.b Packet Pg. 22 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (LEAP) 2020 NOTICE OF FUNDING AVAILABILITY State of California Governor Gavin Newsom Alexis Podesta, Secretary Business, Consumer Services and Housing Agency Douglas R. McCauley, Acting Director California Department of Housing and Community Development Zachary Olmstead, Deputy Director California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Avenue, Suite 500 Sacramento, CA 95833 Telephone: (916) 263-2911 Website: https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml Email: EarlyActionPlanning@hcd.ca.gov January 27, 2020 6.B.b Packet Pg. 23 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) Table of Contents I. Introduction............................................................................................................. 1 II. Authority and Scope ............................................................................................... 1 III. Program Summary ................................................................................................. 2 IV. Program Timeline ................................................................................................... 2 V. Award Amounts ...................................................................................................... 3 VI. Eligible Applicants .................................................................................................. 3 VII. Eligible Activities ..................................................................................................... 4 VIII. Ineligible Activities .................................................................................................. 6 IX. Eligible Uses ........................................................................................................... 7 X. Ineligible Uses ........................................................................................................ 7 XI. Application Requirements....................................................................................... 7 XII. Application Submission Requirements ................................................................... 8 XIII. Application Review ................................................................................................. 8 XIV. Award Letter and Standard Agreement .................................................................. 9 XV. Appeals .................................................................................................................. 9 XVI. Administration ....................................................................................................... 10 XVII. Right to Modify or Suspend the NOFA, and Final Decision-making ..................... 13 XVIII. Definitions............................................................................................................. 14 6.B.b Packet Pg. 24 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 1 Local Early Action Planning Grants 2020 2019 NOTICE OF FUNDING AVAILABILITY LOCAL EARLY ACTION PLANNING GRANTS PROGRAM I. Introduction The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515.03 (Chapter 159, Statutes of 2019). The Program provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the RHNA. II. Authority and Scope This NOFA is authorized pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05). The NOFA implements, interprets, and makes specific provisions for purposes of implementing planning grants to jurisdictions pursuant to 50515.03 (hereinafter “LEAP”). This NOFA establishes terms, conditions, forms, procedures and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 3.1. The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below: Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms… Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) Further, the Department may implement the Program through the issuance of forms, guidelines, and one or more NOFAs, as the Department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, and notices of funding availability adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Health and Safety Code Section 50515.04(f)). The Department reserves the right, at its sole discretion, to suspend or amend the provisions of this NOFA, including, but not limited to, grant award amounts. 6.B.b Packet Pg. 25 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 2 Local Early Action Planning Grants 2020 III. Program Summary The Local Early Action Planning Grants Program (LEAP or Program) is part of the broader Program formerly known as the Local Government Planning Support Grants Program, which was established as part of the 2019-20 Budget Act. The 2019-20 Budget Act provides a spectrum of support, incentives, resources and accountability to meet California’s housing goals. Some specific elements include: • Planning Support (local and regional planning grants) • Incentives (Prohousing preference and infill incentive grants) • Funding Resources • Accountability (penalties for noncompliant housing plans) • Reform (collaborative processes to reform regional housing needs) The Local Government Planning Support Grants Program provides one-time grant funding to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements. The over-arching goals of the Program are to (1) accelerate housing production; and (2) facilitate compliance to implement the sixth cycle of the regional housing need assessment (RHNA). IV. Program Timeline Grants will be available to eligible applicants on a noncompetitive, Over-the- Counter (OTC) basis. Applications will be accepted from the date of the release of this NOFA and up until July 1, 2020. See Table 1 below for the anticipated timeline for awards for the OTC period. Event Date NOFA Release January 27, 2020 NOFA Application Webinar February 14, 2020 NOFA Application Workshops February and March 2020 Final Due Date for OTC Applications July 1, 2020 Technical Assistance February 2020 through December 31, 2023 Expenditure Deadline December 31, 2023 6.B.b Packet Pg. 26 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 3 Local Early Action Planning Grants 2020 The Department will review applications within 30 days and target award of applications within 60 days, with subsequent Standard Agreements processed within 60 days of award. Applicants are encouraged to submit early in the application window. The Department will hold workshops and a webinar to review the LEAP NOFA and application and will be conducting technical assistance to aid applicants throughout the OTC period and implementation of the grant. For a list of dates, times, and locations for the workshops as well as information on technical assistance, please visit the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. V. Award Amounts This Program will make $119,040,000 dollars available to jurisdictions for Program implementation, including state operations and expenditures, and technical assistance. Maximum award amounts are based on population estimates as of January 1, 2019.1 The minimum award amount is $25,000. The maximum amount that a jurisdiction may receive pursuant to this subdivision shall be as follows: Jurisdiction Size (in population) Maximum Award Amount 750,000 or greater $1,500,000 300,000 to 749,999 $750,000 100,000 to 299,999 $500,000 60,000 to 99,999 $300,000 20,000 to 59,999 $150,000 Less than 20,000 $65,000 Applicants seeking partnerships with other local governments will be additive. For example, two jurisdictions between 100,000 and 299,999 people could submit a proposal for up to $1.0 million. VI. Eligible Applicants Eligible applicants are limited to local governments, i.e., cities and counties. However, local governments may partner through legally binding agreements with other forms of governments or entities where the proposal will have a direct effect 1 Population estimates, posted as of January 1, 2019, are based on the Department of Finance E-1 report. Official maximum amounts per jurisdiction can be found at the Department’s website at https://www.hcd.ca.gov/grants- funding/active-funding/leap.shtml. 6.B.b Packet Pg. 27 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 4 Local Early Action Planning Grants 2020 on land-use or development within the participating localities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, or any duly constituted governing body of an Indian Reservation or Rancheria. Applicants forming partnerships, must submit separate, completed and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department in order to be awarded funds. VII. Eligible Activities Eligible activities must demonstrate an increase in housing related planning activities and facilitate accelerated housing production. Eligible activities may be part of a larger planning effort (e.g., a comprehensive zoning code update) if proposed activities have not been completed prior to the NOFA date, are distinct, and demonstrate a nexus to accelerating housing production. Eligible activities are not necessarily jurisdiction-wide and may include a smaller geography with a significant impact on housing production. For example, eligible activities may include a housing development-related project with a significant community level impact, or planning or process improvement for a project with an ongoing community impact beyond the project. Eligible activities may include a variety of planning documents and processes, including, but not limited to, the following as set forth in Health and Safety Code section 50515.03(c): 1. Rezoning and encouraging development by updating planning documents and zoning ordinances, such as General Plans, community plans, specific plans, implementation of sustainable communities’ strategies, and local coastal programs; 2. Completing environmental clearance to eliminate the need for project- specific review; 3. Establishing housing incentive zones or other area-based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article 10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code, or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code; 4. Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents; 5. Planning documents to promote development of publicly-owned land, such as partnering with other local entities to identify and prepare excess or surplus property for residential development; 6. Revamping local planning processes to speed up housing production; 7. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code; 8. Planning documents for a smaller geography (less than jurisdiction-wide) with a significant impact on housing production, including an overlay district, project level specific plan, or development standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas; 6.B.b Packet Pg. 28 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 5 Local Early Action Planning Grants 2020 9. Rezoning to meet requirements pursuant to Gov. Code Section 65583(c)(1), and other rezoning efforts to comply with Housing Element requirements, including Gov. Code Section 65583.2(c) (AB 1397, Statutes of 2018); 10. Upzoning or other implementation measures to intensify land use patterns in strategic locations, such as close proximity to transit, jobs or other amenities; 11. Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps); 12. Establishing pre-approved architectural and site plans; 13. Preparing and adopting Housing Elements of the General Plan that include an implementation component to facilitate compliance with the sixth cycle RHNA; 14. Adopting planning documents to coordinate with suballocations under Regional Early Action Planning Grants (REAP) pursuant to Health and Safety Code Section 50515.02(f) that accommodate the development of housing and infrastructure, and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation; 15. Zoning for by-right supportive housing, pursuant to Gov. Code section 65651 (Chapter 753, Statutes of 2018); 16. Zoning incentives for housing for persons with special needs, including persons with developmental disabilities; 17. Planning documents related to carrying out a local or regional housing trust fund; 18. Environmental hazard assessments; data collection on permit tracking; feasibility studies, site analysis, or other background studies that are ancillary (e.g., less than 15 percent of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production; and 19. Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production; and 20. Establishing Prohousing Policies, as follows: Prohousing Policies The Department encourages applicants to consider LEAP funds to facilitate designation as a Prohousing jurisdiction. The 2019-20 Budget Act requires the Department to develop the Prohousing designation emergency regulations by no later than July 1, 2021. This program will allow the Department to designate jurisdictions as “Prohousing,” when they demonstrate policies and strategies to accelerate housing production. In turn, Prohousing jurisdictions will be awarded additional points or preference in programs such as the Affordable Housing and Sustainable Communities (AHSC), Transformative Climate Communities (TCC), Infill Infrastructure Grant (IIG) programs and other state funding programs. The Department anticipates developing emergency regulations and Prohousing designations prior to July 1, 2021, and will seek to designate jurisdictions prior to future rounds of AHSC, TCC and IIG 6.B.b Packet Pg. 29 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 6 Local Early Action Planning Grants 2020 programs. Pursuant to Gov. Code Section 65589.9(f)(2), “Prohousing” policies mean policies that facilitate the planning, approval, or construction of housing. These policies may include, but are not limited to, the following: A. Planning for local financial incentives for housing, including, but not limited to, establishing a local housing trust fund ; B. Reducing parking requirements for sites that are zoned for residential development; C. Adoption of zoning allowing for use by right for residential and mixed- use development; D. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing RHNA for the current Housing Element cycle; E. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Section 65852.2, as determined by the Department; F. Process improvements that reduce permit processing time; G. Creating of objective development standards; H. Studies and implementing actions that reduce development impact fees; and I. Establishing a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.” VIII. Ineligible Activities 1. Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the RHNA; 2. Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact supply, cost, approval certainty and timing, planned development, or other similarly constraining processes; and 3. Project specific planning documents that do not have a significant impact on accelerating housing production or significant community level or re - occurring benefit beyond the project. 4. The Department may consider proposals that are combined with larger proposals that have a positive housing com ponent and the net effect on accelerating housing production is significant. For example, an applicant may propose combining an open-space designation, downzoning, or anti- displacement measures with by-right upzoning that has a significant net gain in housing capacity. 6.B.b Packet Pg. 30 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 7 Local Early Action Planning Grants 2020 IX. Eligible Uses 1. Grant funds may cover the costs of temporary staffing or consultant needs associated with eligible activities; 2. Grant funds shall be used for the costs of preparing and adopting the proposed activity; 3. A jurisdiction that receives funds under this Program may use a subcontractor. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the jurisdiction of its responsibilities under the Program; 4. Eligible expenditures may be incurred and expended for the project(s) subject to the terms and conditions of the Standard Agreement; and 5. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed during the grant term, will be reimbursable. X. Ineligible Uses 1. Program grant funds may not be used for administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed activity; 2. No more than 5 percent of the grant amount may be used for administrative costs for any proposed use, to be approved by the Department upon disbursement; and 3. Approved and eligible costs incurred prior to the NOFA date are ineligible. XI. Application Requirements Until July 1, 2020, a jurisdiction may request an allocation of funds pursuant to this section by submitting a complete application to the Department that demonstrates: 1. A budget, including timelines, deliverables, sub-steps and adoption, that demonstrates funds will be utilized for eligible activities and uses; 2. How proposed activities will increase housing planning and facilitate accelerating local housing production; 3. Completed or proposed activities consistent with the state or other planning priorities; and 4. All other required information contained in the Department’s application Applicants will demonstrate consistency with these requirements utilizing the forms and manner prescribed in the Department application. Accelerating Housing Production: Applicants must propose and document plans or processes that increase housing planning and facilitate accelerating local housing production. The application must demonstrate a significant positive effect on accelerating housing production through timing, cost, approval certainty, entitlement streamlining, feasibility, infrastructure capacity, or impact on housing 6.B.b Packet Pg. 31 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 8 Local Early Action Planning Grants 2020 supply and affordability. An application must include an explanation and documentation of the nexus to accelerating housing production based on a reasonable and verifiable methodology and must utilize the Department’s form (see the Department’s application). A verifiable methodology may include a statement of support from a non-profit or for-profit developer that is active in the locality. State and Other Planning Priorities: Consistency with state or other planning priorities may be demonstrated through proposed activities in the application OR activities that were completed within the last five years. Applicants must self - certify utilizing the Department’s form (see Department’s application). XII. Application Submission Requirements In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an OTC basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Applications must be on Department forms and cannot be altered or modified by the applicant. Program applications and forms are available on the Department’s website located at https://www.hcd.ca.gov/grants-funding/active- funding/leap.shtml. XIII. Application Review 1. The Program will not utilize a competitive process to award funds. 2. Funds will be available to eligible applicants on a rolling OTC basis that begins as of the date of this NOFA and ends July 1, 2020. 3. An application form will be available upon release of the NOFA and will include forms to demonstrate meeting eligibility requirements such as, among other forms, a resolution, a proposed budget and timeline table and self - certified attachments demonstrating a nexus to housing production and consistency with state planning and other priorities; 4. Applications will first be reviewed for, among other things, completeness, eligibility requirements, and accuracy; 5. In order to be considered complete, an application must contain requested 6.B.b Packet Pg. 32 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 9 Local Early Action Planning Grants 2020 information and supporting documentation where appropriate; 6. All applications must meet the eligibility requirements as specified in this NOFA; 7. If the application is ineligible, it will not be considered for funding , but may be amended and resubmitted; 8. The Department may request additional information to complete and approve the application for funding; 9. Applications recommended for funding are subject to conditions specified by the Department; 10. Applications will be reviewed within 30 days from the date the Department receives the application; and 11. All applicants not meeting the eligibility requirements will be informed within 30 days from the date the Department receives the application. XIV. Award Letter and Standard Agreement Successful applicants will receive an Award Letter from the Department and will be awarded funds. Applicants will enter into a state Standard Agreement (Standard Agreement) for distribution of funds. The Standard Agreement process will specify, among other things, the amount of funds granted, timeline for expenditure of funds, and the approved use of funds. Expenditure report dates and other requirements will also be identified in the Standard Agreement. XV. Appeals 1. Basis of Appeals: A. Upon receipt of the Department’s notice deeming an application incomplete or ineligible, applicants under this NOFA may a ppeal such decision(s) to the Department Director. B. The decision of the Director is final and not subject to further administrative or judicial review. C. No applicant shall have the right to appeal a decision of the Department relating to another applicant’s eligibility, award, denial of award, or any other related matter. 2. Appeals Process and Deadlines: A. Process. In order to lodge an appeal, applicants must submit to the Director by the deadline set forth in subsection (b) below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. No new or additional information will be accepted. Once the written appeal is submitted to the Director, no further information or materials is required to be accepted or considered thereafter. Appeals are to be submitted to the Director at following address: 6.B.b Packet Pg. 33 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 10 Local Early Action Planning Grants 2020 California Department of Housing and Community Development Division of Housing Policy Development 2020 W. El Camino Avenue, Suite 500 Sacramento, California 95833 EarlyActionPlanning@hcd.ca.gov The Director will accept appeals delivered through a carrier service such as the U.S. Postal Service, UPS, Fed-Ex, or other carrier services that provide date stamp verification of delivery. Deliveries must be received during the Department’s weekday (non-state holiday) business hours of 9:00 a.m. to 5:00 p.m. Pacific Standard Time. Additionally, emails to the email address listed above will be accepted if the email time stamp is prior to the appeal deadline. B. Filing Deadline. Appeals must be received by the Director no later than (5) five business days from the date of the Department’s determination. 3. Decision: Any request to amend the Department’s decision shall be reviewed for compliance with this NOFA and its application. The Director shall render his/her decision in writing within fifteen (15) business days of receipt of the applicant’s written appeal. The decision of the Director shall be the Department’s final decision, and shall not be appealable to any court or tribunal. XVI. Administration 1. Grant Execution and Term A. The Department will notify the grantee if they have been selected for a grant award; B. After the Standard Agreement has been drawn, the grantee will be provided instructions for signing all required documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions, or risk forfeiting the grant award; C. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to the date of the NOFA; and D. The end of the grant term will be determined by the state based on the availability of grant funds and the administrative requirements for liquidation. 6.B.b Packet Pg. 34 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 11 Local Early Action Planning Grants 2020 2. Payment and Accounting of Grant Funds A. Grant funds cannot be disbursed until the Standard Agreement has been fully executed; B. The grantee will be responsible for compiling and submitting all invoices and reporting documents. Grantees will submit for reimbursements to the Department based on actual cost incurred; C. The grantee must bill the state based on clear deliverables outlined in the Standard Agreement or budget timeline. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed and processed prior to the expenditure deadline, will be reimbursable. Approved and eligible costs incurred prior to the NOFA date are ineligible; D. Work must be completed prior to requesting reimbursement; E. Grant fund payment will be made on a reimbursement basis; advance payments are not allowed. The grantee and partners must have adequate cash flow to pay all grant-related expenses prior to requesting reimbursement from the Department. Project invoices will be submitted to the Department by the grantee on a quarterly basis; F. In unusual circumstances, the Department may consider alternative arrangements to reimbursement and payment methods based on documentation demonstrating cost burdens, including the inability to pay for work; G. Supporting documentation may include, but is not limited to: receipts, progress payments, subcontractor invoices, time cards, etc.; H. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. The Department may withhold 10 percent of the grant until gra nt terms have been fulfilled; and I. Each recipient of funds under the Program shall expend those funds no later than December 31, 2023. 3. Accounting Records and Audits A. The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required; B. The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project, in accordance with generally accepted accounting principles; C. The grantee agrees that the state or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Standard Agreement; D. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated; E. Subcontractors employed by the grantee and paid with moneys under the 6.B.b Packet Pg. 35 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 12 Local Early Action Planning Grants 2020 terms of this Standard Agreement shall be responsible for maint aining accounting records as specified above; F. At any time during the term of the Standard Agreement, the Department may perform, or cause to be performed, a financial audit of any and all phases of the award. At the Department’s request, the awardee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during project implementation and over the project life; G. The Department may request additional information, as needed, to meet other applicable audit requirements; and H. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements. 4. Remedies of Nonperformance A. In the event that it is determined, at the sole discretion of the state, that the grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement; B. Both the grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice; and C. There must be a strong implementation component for the funded activity through this Program, including, where appropriate, agreement by the locality to formally adopt the completed planning document. Localities that do not formally adopt the funded activity could be subject to repayment of the grant. D. The Department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e). 5. Reporting A. At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced in the Standard Agreement; B. Awardees shall submit a report, in the form and manner prescribed by 6.B.b Packet Pg. 36 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 13 Local Early Action Planning Grants 2020 the Department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that contains the following information: • The status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction; and • A summary of building permits, certificates of occupancy, or other completed entitlements issued by entities within the region, or by the jurisdiction, as applicable. C. The awardee must, in lieu of a separate report, provide the above described information as part of its annual report pursuant to Gov. Code Section 65400; D. The Department may request additional information, as needed, to meet other applicable reporting requirements; E. Upon completion of all deliverables within the Standard Agreement, the awardee shall submit a close out report. See Attachment 1; and F. The Department shall maintain records of the following and provide that information publicly on its internet website: • The name of each applicant for Program funds and the status of that entity’s application; • The number of applications for Program funding received by the Department; and • The information described in 5(B) above for each recipient of Program funds. XVII. Right to Modify or Suspend the NOFA, and Final Decision-making The Department reserves the right, at is sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here: http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html. Further, the Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final. 6.B.b Packet Pg. 37 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 14 Local Early Action Planning Grants 2020 XVIII. Definitions All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in Health and Safety Code section 50470. A. “Accelerating Housing Production” means improving the timing, cost, feasibility, approval and amount of development through various mechanisms such as zoning incentives (e.g., increased density and heights, reduced parking requirements), upzoning, zoning amendments to permit residential in non-residential zones, corridor planning, development standards modifications, non-discretionary review, financing strategies, sliding scale fee modifications, facilitating adequate infrastructure to support development, approval streamlining that addresses quickness and ease of entitlements, and other mechanisms that promote production or remove or mitigate regulatory barriers. B. “Affordability” means a housing unit that satisfies at least one of the following criteria: 1. It is available at an “affordable rent” as that term is used and defined in Section 50053 of the Health & Safety Code; 2. It is offered at an “affordable housing cost”, as that term is used and defined in Section 50052.5 of the Health & Safety Code; or 3. It is available at an “affordable rent” or an “affordable housing cost” according to the alternative percentages of income for agency -assisted rental and cooperative housing developments pursuant to Department regulations adopted under Health and Safety Code section 50462(f). C. “Annual Progress Report” (APR) means the annual report required to be submitted to the Department pursuant to paragraph (2) of subdivision (a) of Section 65400 of the Government Code. D. “Completed entitlement” means a housing development project that has received all the required land use approvals or entitlements necessary for the issuance of a building permit and for which no additional action, including environmental review or appeals, is required to be eligible to apply for and obtain a building permit. E. “Council of governments” means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is responsible for allocating regional housing need pursuant to Sections 65584, 65584.04, and 65584.05 of the Government Code. F. “Department” means the California Department of Housing and Community Development. 6.B.b Packet Pg. 38 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 15 Local Early Action Planning Grants 2020 G. “Housing” means any development that satisfies both of the following criteria: 1. At least two-thirds of the square footage of the development must be designated for residential use; and 2. Includes a house, an apartment, a mobile home or trailer, a group of rooms, or a single room that is occupied as separate living quarters, or, if vacant, is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building , and which have a direct access from the outside of the building, or through a common hall. Note: accessory dwelling units (ADU) and junior accessory dwelling units (JADU) pursuant to Gov. Code sections 65852.2 and 65852.22 meet the definition above. H. “Housing Element” or “element” means the Housing Element of a community’s General Plan, as required pursuant to subdivision (c) of Section 65302 of the Government Code and prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. I. “Jurisdiction” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. J. “Local government” or “Locality” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. K. “Objective zoning standard”, “objective subdivision standard”, and “objective design review standard” means standards that involve no personal or subjective judgment by a public official, and are uniformly verifiable by reference to an external and uniform benchmark or criterion available, and knowable by both the development applicant or proponent and the public official prior to submittal. “Objective design review standards” means only objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submission of a development application, which are broadly applicable to development within the jurisdiction. L. “Other Planning Priorities” means planning, policies, programs or investments to promote housing choices and affordability to lower and moderate income households, the encouragement of conservation of the existing affordable housing stock, and efforts to take into account current and future impacts of climate change, including hazard mitigation. M. “Regional housing need assessment” means the existing and projected need for housing for each region, as determined by the Department pursuant to Section 65584.01 of the Government Code. 6.B.b Packet Pg. 39 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 16 Local Early Action Planning Grants 2020 N. “State Planning Priorities” means priorities which are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety in the state, including in urban, suburban, and rural communities pursuant to Gov. Code Section 65041.1. O. “Streamlined Housing Production” means improving the entitlement process through actions such as removing, mitigating or minimizing local regulatory requirements, reforming the local approval process to reduce processing times, the number of local discretionary approvals and permits needed for projects, improving approval certainty, establishing non -discretionary processes, modifying development standards, such as reducing parking requirements and increasing height limits, or other efforts, such as taking the fullest advantage of existing streamlining mechanisms provided in state law. 6.B.b Packet Pg. 40 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 17 Local Early Action Planning Grants 2020 Attachment 1 Close Out Reporting Form 6.B.b Packet Pg. 41 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 18 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Brief Summary • Overview of the project • Project start date and duration • Project goals and relevance to LEAP goals • Quantified outcomes Lead Agency and Partnerships • List lead agency and partnerships (including names, titles, organizations, and roles and responsibilities of each) • What did those collaborative relationships and processes look like? Drivers • Did any local, state, or federal legislation or mandates drive the project? (SB 35, AB 1397, etc.) • Was it a community driven effort? • Were there additional funding opportunities present? Engagement Process • Who were your stakeholders? • What did the engagement process look like? • What role did stakeholders play in the process? (Keep in mind: training, education, council formation, technical assistance, etc.) • What were the outcomes of the engagement process? Challenges • What challenges were encountered? • What solutions were encountered or created? • Are there areas for improvement of policy alignment at the state or federal level to help achieve this project more easily? 6.B.b Packet Pg. 42 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) CA HCD Notice of Funding Availability 19 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Outcomes • What are the current or projected outcomes? Benefits? • Were outcomes as anticipated? • Have new opportunities arisen as a result of this project? • What are the next steps? Replicability • What aspects of the project could be replicated in other communities? • Useful resources and tools? For a specific region or sector? Additional Resources • Links to the project itself • Links to resources used throughout and any other relevant resources Further Information • Who can be reached to ask more questions about this project? • Name • Number and/or email 6.B.b Packet Pg. 43 Attachment: LEAP Notice of Funding Availability (2790 : Local Early Action Planning (LEAP) Grant Application) City of Gilroy STAFF REPORT Agenda Item Title: A Resolution of the City Council of the City of Gilroy Setting the Annual Fireworks Service Fee for Impacts on City Fire and Police Services Related to the Sale and Use of Safe and Sane Fireworks Pursuant to Gilroy City Code Section 10A Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Fire Department Submitted By: Mark Bisbee Prepared By: Mark Bisbee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION EXECUTIVE SUMMARY Pursuant to Gilroy City Code Section 10A.8(b), the Fireworks Service Fee is to b e determined each year by the City's Fire and Police Chiefs and adopted by resolution. The Fireworks Service Fee is intended to provide funding for the City to take actions to: 1) Reduce the use of illegal and dangerous fireworks that occurs in conjunction with the legal use of Safe and Sane Fireworks during the 4th of July celebration. 2) Augment daily staffing in preparation for an increase in police, fire and EMS activity resulting from firework usage. 6.C Packet Pg. 44 The Fireworks Service Fee is separate and different from the booth permit and application fee that the City charges for the operation of the Safe and Sane Fireworks sales booths. BACKGROUND The City Code does not specify what the Fireworks Service Fee is intended to cover or how the Mitigation Plan is to be structured. In the past, the Police and Fire Chiefs determined the required staffing and deployment including: 1) staffing additional dispatchers for the July 4th weekend 2) staffing additional patrol officers for the July 4th weekend 3) staffing an additional Fire Engine for the July 4th weekend 4) adding additional staffing to existing fire engines for the July 4 th weekend 5) and the bulk mailing of an English/Spanish notification postcard to all Gilroy mailing addresses and the coordination of any administrative citations issued and the subsequent appeals hearings, if needed, performed by the Fire Marshal’s office. Gilroy City Code Section 10A.8 requires that a Fireworks Service Fee be paid by the Safe and Sane Fireworks vendors to fund additional s taff resources to counter the use of illegal and dangerous fireworks during the July 4 th celebrations. The Fireworks Service Fee is to provide cost recovery for the Gilroy Fire and Police Departments' Fireworks Mitigation Plan. The City Code establishes a limit of booth permits and grandfathers the booth permit to organizations that had a permit the prior year. Currently, one vendor provides the fireworks for up to 15 non-profit organizations that have a booth permit. The vendor monitors the existing organizations as well as manages any potential new applicants for a booth permit that becomes available. How, or if, the vendor then recoups the fee from the potential 15 non -profit organizations is a contractual arrangement between the vendor and the non -profit booth organizations, and is not dictated by the City Code. However, the vendor typically assesses a portion of the estimated fee to each organization. This fee has ranged between 6-8% of the organizations’ revenue, which is dependent on the fee and tha t year’s revenues. ANALYSIS The cost of the 2020 Fireworks Mitigation Plan is based on the attached spreadsheet and totals $41,687.63. The Police Department, Fire Department, and Fire Marshal's Office each provided the cost analysis for their portion of the plan using the Finance Department’s calculated hourly rate by position. The attached Fee Calculation 2020 6.C Packet Pg. 45 form provides the cost breakdown. The attached Resolution is to adopt the Fireworks Service Fee for implementing the 2020 Fireworks Mitigation Plan . The wholesale vendor that supplies the State Certified Safe and Sane Fireworks to the non-profit organizations pays the fireworks service fee. The fee is deposited into an 801 account and is then transferred to each department’s revenue accounts. Since the fees are based on the costs provided by each department, there is typically not a shortage or overage. However, if there is an excess of funds collected, staff could apply the excess funds to the next year’s fireworks service fee. However, if addition al overtime is required to implement the mitigation plan, then the City could add any unreimbursed overtime costs to the fee calculation for the following year’s program. ALTERNATIVES The City Council could decide to take no action. A Fireworks Service Fe e would not be established to provide funding to reduce the use of illegal and dangerous fireworks. The additional enforcement would not occur and funding would be provided through the general fund, or a combination of reduced enforcement with taxpayer fun ding. STAFF DOES NOT RECOMMEND THIS ACTION FISCAL IMPACT/FUNDING SOURCE Staff does not expect any net costs to the City as the fee charged to the vendor is based on the actual cost of carrying out the plan. CONCLUSION The fee will reimburse the City for the implementation of the Fireworks Mitigation Plan. NEXT STEPS If approved, staff would then implement this year’s Illegal and Dangerous Fireworks Mitigation Program, and apply the fee as authorized. PUBLIC OUTREACH The Fire Marshal’s office will produce and send out post card mailers to all Gilroy addresses to inform the public about illegal and dangerous fireworks. The Fire Marshal’s Office will also coordinate with the Public Information/Community Engagement Office (PIO) to release the same inform ation on media channels used by the PIO for community engagement. Attachments: 6.C Packet Pg. 46 1. Resolution 2020 Fireworks Mitigation Fee 2. Fee Calculation 2020 Fireworks Mitigation 3. Permits 2020 Fireworks Booth 6.C Packet Pg. 47 -1- RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY SETTING THE ANNUAL FIREWORKS SERVICE FEE FOR IMPACTS ON CITY FIRE AND POLICE SERVICES RELATED TO THE SALE AND USE OF SAFE AND SANE FIREWORKS PURSUANT TO GILROY CITY CODE CHAPTER 10A WHEREAS, Chapter 10A of the City of Gilroy (“City”) City Code regulates the local retail sale, use and storage of “safe and sane fireworks” as defined in 12529 of the Health and Safety Code of the State of California; and WHEREAS, the City Fire and Police Departments each year experience a significant number of non-routine Fire and Police requests for services, emergency calls and citizen complaints, all of which are directly related to the use of illegal and legal fireworks during 4 th of July celebrations; and WHEREAS, the City Council on April 5, 2004, adopted Ordinance No. 2004-03 adding section 10A.8(b) to Chapter 10A of the City Code to establish a permit fee for fireworks sales, and a fireworks service fee to alleviate the financial impacts of providing public safety s ervices directly related to the 4th of July celebrations; and WHEREAS, Ordinance No. 2004-03 requires that the fireworks service fee be determined by the City’s Fire and Police Chiefs and adopted annually by City Council resolution; and WHEREAS, the City Council also on April 5, 2004, adopted Resolution No. 2004-24, directing the City’s Fire and Police Chiefs to develop a Fireworks Mitigation Strategy for the upcoming 4th of July celebrations each year, setting forth the amount of the fireworks service fee to recover the anticipated costs. WHEREAS, the City Fire and Police Chiefs have developed a Fireworks Mitigation Strategy for the 4th of July, 2020, celebrations that includes both public information and additional public safety staff hours at an anticipated cost to the City of $41,687.63, and 6.C.a Packet Pg. 48 Attachment: Resolution 2020 Fireworks Mitigation Fee (2806 : 2020 Public Safety Fireworks Mitigation Fee) -2- RESOLUTION NO. 2020-XX WHEREAS, the City Council on June 1, 2020 reviewed the Fireworks Mitigation Strategy Fee for 4th of July, 2020, attached hereunto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS: 1. Based on the July 4, 2020 Fireworks Mitigation Strategy with supporting documents (e.g. Staff Report, Mitigation Fee Calculation, Permit list), the fireworks service fee for 2020 has been determined to be $41,687.63 2. On June 1, 2020, the City Council reviewed the fireworks service fee for the 4th of July, 2020, and finds that the fee is a reasonable regulatory cost designed to mitigate the adverse health, safety, environmental, and/or other societal effects from the local retail sale, use, and storage of “safe and sane fireworks” as regulated by Gilroy City Code Chapter 10A and is no more than necessary to cover the costs of the City’s police and fire department July4th fireworks mitigation strategy activities. PASSED AND ADOPTED this 1st day of June, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ___________________________ Roland Velasco, Mayor ATTEST: __________________________________ Shawna Freels, City Clerk 6.C.a Packet Pg. 49 Attachment: Resolution 2020 Fireworks Mitigation Fee (2806 : 2020 Public Safety Fireworks Mitigation Fee) FIREWORKS MITIGATION FEE CALCULATION July 4, 2020 Hourly Number Hours Total Police Department Patrol (OT)195.27$ 12 5.5 12,887.77$ Dispatch (OT)148.74$ 2 5.5 1,636.10$ TOTAL POLICE 14,523.87$ Fire Department Firefighters (OT)140.61$ 1 24 3,374.58$ Firefighters (OT)140.61$ 1 24 3,374.58$ Fire Captain (OT)165.40$ 1 24 3,969.53$ Fire Engineer (OT)150.34$ 1 24 3,608.15$ TOTAL FIRE 14,326.85$ Fire Prev. Postcard Flyer to all addresses in the city (18,000)11,380.39$ FM Admin(fully burden rate)145.65$ 1 10 1,456.53$ TOTAL Fire Prevention 12,836.92$ TOTAL PROGRAM 41,687.63$ 6.C.b Packet Pg. 50 Attachment: Fee Calculation 2020 Fireworks Mitigation (2806 : 2020 Public Safety Fireworks Mitigation Fee) Organization:Application:Phone Number Permit# 1 Apostolic Assembly Church Pastor Gabriel Arias 408-710-8868 20050032 2 Christian School Parents Club Jennifer Welch 408-847-7922 20050033 3 El Camino Club (CHP)Chris Miceli 530-941-5520 20050034 4 Gavilan College Micheal Renzi 408-848-4715 20050035 5 Gilroy Elks Lodge Philip W. Quast 408-842-9397 20050036 6 Gilroy High School Cheerleader Boosters Michelle Baxter 408-838-6407 20050037 7 Gilroy High School Quarterback Club Anna Haro 408-825-3923 20050038 8 Gilroy High School Wrestling Alvaro Meza/Cassandra Clark/Chris Leong 669-205-5483 20050039 9 Gilroy Police Officers Association Geoff Guerin 408-846-0300 20050040 10 Gilroy Little League BallPark Fund Jon Castro/Edward Lujan 408-310-8173 20050041 11 Gilroy Pop Warner Football Ricardo Ortiz 408-710-3018 20050042 12 Gilroy Youth Football & Cheer Ricardo Ortiz 408-710-3018 20050043 13 South County Baseball Boosters Mark Dover 408-710-1908 20050045 14 Victory Outreach Gilroy Nerrisa Perez 408-848-6715 20050046 15 Stick and Move Amateur Boxing Rick Mello 408-848-4143 20050099 777 First Street Proposed Sales Site: 7150 Camino Arroyo 727 First Street 1203- 1260 First Street 8850 San Ysidro Ave 8400 Church Street 825 First Street 80 W. Tenth Street 8401 Church Street 7940 Monterey Rd. 401 E. Tenth Street 971 First Street 8220 Monterey Street 2020 Firework Booth Permits 691 First Street 303 Tenth Street 6.C.c Packet Pg. 51 Attachment: Permits 2020 Fireworks Booth (2806 : 2020 Public Safety Fireworks Mitigation Fee) City of Gilroy STAFF REPORT Agenda Item Title: Approval of an Agreement With Community Solutions in a Amount Not To Exceed $111,000 for Support With South County Youth Task Force Strategies Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Police Department Submitted By: Scot Smithee Prepared By: Scot Smithee Patricia Vigil Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services  Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve an agreement with Community Solutions in an amount not to exceed $111,000 and authorize the Interim City Administrator to execute the agreement and related documents. EXECUTIVE SUMMARY The City of Gilroy currently receives funding from South County Task Force (SCYTF) contributing members and the State of California Board of State and Community Corrections to support strategies, programs and services of the SCYTF. Most services that support SCYTF programs are provided through service agreements with local community service organizations. 7.A Packet Pg. 52 A primary program for the SCYTF has been the operation of the Late Night Gym and offering evidence-based programs within the cities of Gilroy and Morgan Hill. The primary service provider that has had the organizational capacity, staffing and skillset in providing these services for the Late Night Gym and evidence-based programs has been Community Solutions. Community Solutions has been a member and service provider of the SCYTF and its ongoing efforts since the task force inception in FY 2012 - 13. At the end of FY 2018-19, funding from the County of Santa Clara was approved for FY 2019-20 to provide continued support for the Late Night Gym and group programs. As such, a new agreement to continue late night gym services through FY 2019-20 was negotiated with Community Solutions, pending the execution of an agreement between the County and the City of Gilroy to administer the funds and services. This agreement should have been presented for Council review and approval in September 2019, but due to staffing issues within SCYTF this agreement was not completed in a timely manner. Now that the agreement is in place, and funding throu gh the County has been approved and authorized this request for Council approval is being made. The term of the agreement is retroactive to October, 2019. BACKGROUND The South County Youth Task Force (SCYTF) contributing members include the Cities of Gilroy and Morgan Hill, the Gilroy and Morgan Hill Unified School Districts, the County of Santa Clara and the State of California Board of State and Community Corrections to support strategies, programs and services of the SCYTF. Additionally, funding from the various entities have requirements by agreement to designate and distribute services between the Cities of Gilroy, Morgan Hill and San Martin. Target population, geography and services are guided by strategies and goals identified in the SCYTF Strategic Plan THRIVE 2017-20. The City of Gilroy serves as fiscal administrator in coordination with the County of Santa Clara who provides south county coordination leadership to the SCYTF. Though some services are provided directly by local cities and the County, most services that support SCYTF programs are provided through service agreements with local community service organizations. The Late Night Gym program services targeted youth at locations in both cities and offers additional services for id entifying youth in need of counseling, mentoring, the development of personal life skills and self -esteem through group sessions that are evidence-based and culturally specific to targeted youth, and case management. ANALYSIS At the end of FY 2018-19 funding from the County of Santa Clara was approved for FY 2019-20 to provide continued support for the Late Night Gym and evidence-based group program. At the time, Community Solutions operated under its former service agreement to provide programming and services. As such, a new agreement to 7.A Packet Pg. 53 continue late night gym services through FY 2019-20 was negotiated with Community Solutions, pending the execution of an agreement between the County of Santa Clara and the City of Gilroy for the City to administer the funds and services. When our SCYTF Coordinator was hired by the County of Santa Clara the tasks associated with the Gilroy SCYTF Coordinator were assumed by part time staff and college interns. Once a new SCYTF Coordinator was chosen an extended leave was required causing additional part time staff and college interns to manage the various programs. Once the new SCYTF Coordinator returned to work in May, 2020 it was realized that this updated service agreement with Community Solutions had never been approved by Council. Despite the service agreement not being formally approved prior to October 1, 2019 Community Solutions continued to provide the needed services in good faith. Funding to support this agreement has been provided by SCYTF contributing agencies. ALTERNATIVES Council can chose not to approve this agreement which would result in the City failing to meet the agreements identified in the SCYTF Strategic Plan. Funding would be returned to the SCYTF contributing members and Community Solutions would not receive funding for services rendered. STAFF DOES NOT RECOMMEND FISCAL IMPACT/FUNDING SOURCE Funds are budgeted in the FY 2019-20 SCYTF Operating Budget per executed agreements with contributing entities, which reside in the City’s Gang Prevention and Intervention Fund, Fund 227. These expenditures are not from the City’s General Fund, and will be paid from existing appropriations in Fund 227. Attachments: 1. SCYTF FY20 Agreement Community Solutions 2. Exhibit D_ Budget Community Solutions Contract 7.A Packet Pg. 54 -1- 4835-2267-0361v1 LAC\04706083 AGREEMENT FOR SERVICES (For contracts over $5,000 - CONSULTANT) This AGREEMENT made this 01 day of October, 2019, between: CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California and CONSULTANT: Community Solutions, having a principal place of business at 9015 Murray Ave., #100, Gilroy, California. ARTICLE 1. TERM OF AGREEMENT This Agreement will become effective on 10/01/2019 and will continue in effect through 06/30/2020 unless terminated in accordance with the provisions of Article 7 of this Agreement. Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial ARTICLE 2. INDEPENDENT CONTRACTOR STATUS It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes. CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement. ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT A. Specific Services CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”). B. Method of Performing Services CONSULTANT shall determine the method, details and means of performing the above - described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services. 7.A.a Packet Pg. 55 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -2- 4835-2267-0361v1 LAC\04706083 C. Employment of Assistants CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding. D. Place of Work CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services. ARTICLE 4. COMPENSATION A. Consideration In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $111,000. B. Invoices CONSULTANT shall submit invoices for all services rendered. C. Payment Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties. D. Expenses CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANT’S costs of doing business. 7.A.a Packet Pg. 56 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -3- 4835-2267-0361v1 LAC\04706083 ARTICLE 5. OBLIGATIONS OF CONSULTANT A. Tools and Instrumentalities CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY. B. Workers’ Compensation CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilit ies and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees. C. Indemnification of Liability, Duty to Defend 1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. 2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. D. Insurance In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; 7.A.a Packet Pg. 57 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -4- 4835-2267-0361v1 LAC\04706083 provided however, Professional Liability Insurance written on a claims made basis mus t comply with the requirements set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of th e contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work. As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms. E. Assignment Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion. F. State and Federal Taxes As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:  CITY will not withhold FICA (Social Security) from CONSULTANT’S payments;  CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf;  CITY will not withhold state or federal income tax from payment to CONSULTANT;  CITY will not make disability insurance contributions on behalf of CONSULTANT;  CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT. 7.A.a Packet Pg. 58 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -5- 4835-2267-0361v1 LAC\04706083 ARTICLE 6. OBLIGATIONS OF CITY A. Cooperation of City CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement. B. Assignment CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement. ARTICLE 7. TERMINATION OF AGREEMENT A. Sale of Consultant’s Business/ Death of Consultant. CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale. If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT. B. Termination by City for Default of Consultant Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following: 1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement. 2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement. CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY 7.A.a Packet Pg. 59 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -6- 4835-2267-0361v1 LAC\04706083 may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement. C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY. D. Transition after Termination Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services. ARTICLE 8. GENERAL PROVISIONS A. Amendment & Modification No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto. B. Americans with Disabilities Act of 1990 Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either. 7.A.a Packet Pg. 60 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -7- 4835-2267-0361v1 LAC\04706083 C. Attorneys’ Fees If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled. D. Captions The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation. E. Compliance with Laws The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor. F. Conflict of Interest CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement. G. Entire Agreement This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY. 7.A.a Packet Pg. 61 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -8- 4835-2267-0361v1 LAC\04706083 H. Governing Law and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California. I. Notices Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph. Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing. J. Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. K. Time of the Essence All dates and times referred to in this Agreement are of the essence. L. Waiver CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Executed at Gilroy, California, on the date and year first above written. CONSULTANT: CITY: Community Solutions CITY OF GILROY By: By: Name: Lisa Davis Name: Jimmy Forbis Title: Chief Operational Officer Title: Interim City Administrator, City of Gilroy Social Security or Taxpayer Identification Number 23-7351215 7.A.a Packet Pg. 62 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -9- 4835-2267-0361v1 LAC\04706083 Approved as to Form ATTEST: City Attorney City Clerk 7.A.a Packet Pg. 63 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “A” SPECIFIC PROVISIONS I. PROJECT MANAGER CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Hedith Andrade, who will act in the capacity of Project Manager, and who will personally direct such Services. Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement. II. NOTICE TO PROCEED/COMPLETION OF SERVICE A. NOTICE TO PROCEED CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Sandra Cruz, South County Youth Task Force Coordinator and/or designee, shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”. B. COMPLETION OF SERVICES When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period. III. PROGRESS SCHEDULE The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”. 7.A.a Packet Pg. 64 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -2- 4835-2267-0361v1 LAC\04706083 IV. PAYMENT OF FEES AND DIRECT EXPENSES Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement. Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses. V. OTHER PROVISIONS A. STANDARD OF WORKMANSHIP CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes. B. RESPONSIBILITY OF CONSULTANT CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement. C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request. 7.A.a Packet Pg. 65 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -3- 4835-2267-0361v1 LAC\04706083 D. CONFIDENTIALITY OF MATERIAL All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY. E. NO PLEDGING OF CITY’S CREDIT. Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY. F. OWNERSHIP OF MATERIAL. All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”. CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT. G. NO THIRD PARTY BENEFICIARY. This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. 7.A.a Packet Pg. 66 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -4- 4835-2267-0361v1 LAC\04706083 H. NOTICES. Notices are to be sent as follows: CITY: Sandra Cruz, SCYTF Coordinator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 CONSULTANT: Hedith Andrade Community Solutions 9015 Murray Ave., #100 Gilroy, CA 95020 I. FEDERAL FUNDING REQUIREMENTS. If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply. If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply. 1. DBE Program CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs. 2. Cost Principles Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items. 3. Covenant against Contingent Fees The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 7.A.a Packet Pg. 67 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “B” SCOPE OF SERVICES CONSULTANT Community Solutions will coordinate and provide services outlined and reporting data outlined below, necessary for program evaluation, monthly progress and quarterly financial reporting utilizing the CalVIP progress report and invoicing format, to the City of Gilroy in a timely matter. This program is part of the South County THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement) Project, funded by the Board of State Community Corrections. Service delivery time frame: October 1, 2019 - June 30, 2020. CONSULTANT Community Solutions shall: 1. Provide 2 FTEs (Peer Partner at 1 FTE, Case Manager - 0.5 FTE and Intern - 0.5 FTE) to perform roles of Intervention Specialists ("Peace Keeper") to complete communty-based and street intervention and outreach and engagement activities that include: • Provide outreach and intervention support services to community center and library sites, including at least one group peace circle/circulo to be held at San Ysidro Community Center; • Conduct late evening pro-social activities, including the facilitation of one Late Night Gyms weekly program in Gilroy. Minimum 6 clients to be served. • Implementation of 5 cultural program groups utilizing: El Joven Noble, Xinachtli Rights of Passage and/or Cara Y Corazon, and/or Why Try Life Skills support groups. 12 week curriculum. In selected schools within 2 MHUSD, 2 GUSD and other schools as needed. 1 San Ysidro - Parenting group. Minimum 6 clients per group to be served. • Case Management (Life Coaching) Services of referred youth (a minimum of 14 youth), unduplicated youth. • Conduct Outreach and Engagement Activities in Gilroy and Morgan Hill hot spots; Activities meant to build rapport with youth and introduce youth to community engagement opportunities. the following is a list that includes outreach and engagement activities, but is not limited to: Summer Fun in the Park's, BBQ's, Resiliency Festival and Field trips. Please see calendar 2. Provide Linkage and Referral services between the South County THRIVE Project and other community assets; 3. Complete Monthly Narrative and Statistical Reports: on a Quarterly Program Activity Report utilizing the CalVIP reporting formats. a. Project data to be collected: number and type of primary, secondary and tertiary services available as the result of this Program, units of service delivered, client length of participation and completion rates, percentage of goals achieved by individual participants, and numbers of referrals and rate of successful enrollment for service delivery. 7.A.a Packet Pg. 68 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -2- 4835-2267-0361v1 LAC\04706083 b. Quarterly invoicing will include direct expenses for reimbursement, such as allowable overhead and supervision, direct expenses, i.e. cell phone and mileage reimbursement for positions, wages, supplies, training, costs for pro-social activities and healthy food expenses. Any additional direct expenses will not be reimbursed by the CITY. 4. Must provide a client list (First Initial and Last Initial) that includes the following: i. Name of youth served; ii. Include assigned Probation File Numbers for Youth (if applicable); iii. Date of birth of youth served; iv. Start date of when youth started receiving services; v. End date of when youth stopped receiving services; vi. ZIP Code of youth served (if available); vii. Ethnicity of youth served (if available); and viii. Hours of service per youth by activity type. 5. Use of Sign-In sheets to track participation, Units of Service Reports, and retrospective surveys to measure program effectiveness, as opposed to intensive case management services by Peace Keeper, which will use case logs, pre/post surveys, plus retrospective surveys , to record participation and service delivery goals. 7. Will partner with the City of Gilroy, the South County Technical Team and local community partners to further the goal of the efforts of building a restorative community and preventing and de-escalating youth violence and anti-social behaviors in South County; 8. Population to be served: Children, youth and families of, all genders, in the following overlapping categories: i. At-risk (At-promising) youth, defined as youth who live in or attend schools in “Hot Spots” low socio-economic areas and have some gang/violence-risk characteristics, ii. High-risk (High-promising) of violence and gang-impact (this category distinguishes from “at-risk” population by generating additional characteristics demonstrating social-risk factors and level of intensity), iii. Youth violence/ gang impacted (Youth exhibiting high-risk behaviors related to gang lifestyles), and/or iv. Youth who demonstrate to be violence/gang intentional (social circle is integrated into intergenerational gang environment; youth are identified and/or arrested for gang related incidents or acts of gang violence through the justice system. 7.A.a Packet Pg. 69 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -3- 4835-2267-0361v1 LAC\04706083 9. Maintain a written and electronic individualized file for case management services regarding each client, document client's progress within assigned service/program and notify the City of client's progress and/or problems encountered within assigned service/program. 10. Have the needed level of flexibility to attend necessary meetings, including monthly South County THRIVE Leadership Meetings, Technical Team meetings and impromptu climate and crisis meetings; and have ability to work weekends for large events and evenings as deemed necessary to carry out successful coordination of project services; staying within a 40 hour work week. 11. Help fundraise to pay for food expenses for Late Night Gym programming, such as applying for small community grants from The Gilroy/ Morgan Hill Rotary Club, The Gilroy/ Morgan Hill Community Foundation, Gilroy Police Foundation, etc. 12. Complete Service Delivery Calendars: To help maximize collaborative efforts with all South County THRIVE agencies, the Consultant will submit calendars documenting services being rendered at different time frames, location(s) and service day(s), to the City by the 15th of each month (no need to resend if there are no new changes). 13. Transport of Clients: Transportation can only occur after all necessary insurance(s) have been completed and insurances and waivers meet all necessary insurance guidelines. One-to-one driving is not allowed. Staff and youth in transport must be of the same gender, or there may be another staff member in the car of the opposite gender. This may include City of Gilroy staff. A guardian/parental permission slip must be signed each time a youth enters a Contractor’s vehicle. If transportation occurs under life coaching/case management, all intake paperwork must be up to date and the two-to-one ratio must be enforced. a. Locations of services will occur at the identified schools, community hubs, hot-spot parks libraries, and other community locations, as deemed appropriate per client need. Contact of client and transportation must follow County and City procedures. 7.A.a Packet Pg. 70 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “C” MILESTONE SCHEDULE Management Plan CONSULTANT will utilize 2.0 FTE employees for the program. Our current Case Manager/Peer Partner, Saul Gonzalez, Jr., has years of experience with the target population for this program, and is trained and certified in National Compadres Network curriculums, Joven Noble, Cara y Corazon, RJP and Raising Children with Pride. Job duties include case management, outreach and engagement and facilitation/coordination of curriculum-based groups and Late Night Gyms. The case manager - Sydney Hurtado has years of experiencing working with High risk youth and is trained in Xinachtli, Joven Noble, RJP, and othe evidence based practices. Upon notification that funding is approved, CONSULTANT will immediately begin recruitment for .50 FTE Inter (BSW). Hiring, on-boarding and initial training for new staff usually takes two to three months of on-boarding. THRIVE staff will be supervised by Hedith Andrade, LPCC Clinical Program Manager for THRIVE , who currently represents our agency on the South County Techincal Team. Hedith will ensure contract compliance and complete the reports. Marianne Marafino Johnson, Division Director will oversee the program.. CONSULTANT will secure group meeting space at programming sites at San Ysidro Community Center, libraries and recreation facilities. The Case Managers will plan Outreach and Engagement activities and offer a series of activities to build rapport with all youth involved with THRIVE throughout the summer months, based on funding. Staff will recruit youth to participate in groups at existing late night gyu programs, communtiy and recreation centers, libraries and other community locations within "Hotspot" designated areas. Any youth identified as needing case management or mental health services will be scheduled for a one-on-one meeting with a case manager and the youth's parents, if appropriate. It is projected that eligible youth already receiving case management services from CONSULTANT will be engaged and recruited to participate in THRIVE summer activities during the project performance period. Frequency of case management sessions will be determined based on the youth's needs. Case managers will make referrals for mental health services and assist the youth in accessing them if needed. CONSULTANT Case Managers will secure Late Night Gym (LNG) spaces in Gilroy upon contract approval. Sessions of LNG will begin in early October, and continue weekly throughout the project performance period with each session staffed by a minimum of 2 staff as well as volunteers. Participants will sign-in for each LNG session. Presenters and volunteers for Late Night Gym will be contracted and recruited upon contract approval. Timeline of schedule events may include, but not limited to: 7.A.a Packet Pg. 71 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -2- 4835-2267-0361v1 LAC\04706083 October 2019 - On-going two curriculum-based groups are held weekly - one in Morgan Hill and one in Gilroy - Continuing with outreach for Cara y Corazon parenting at San Ysidro -Individual Case Management services provided - Late Night Gym sessions held weekly in Morgan Hill and Gilroy - Outreach and Engagement Activity: Continue recruitement of LNG and assess program needs - South County Techincal Team Meeting and Policy Team Meeting November 2019 -On-going curriculum-based groups are held weekly in Morgan Hill and Gilroy -Implementation of group at Cara y Corazon parenting at San Ysidro -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy with Pot Luck style Thanksgiving Family Event - South County Technical Team Meeting and Policy Team Meeting December 2019 - Post-test/Graduation Ceremony for curriculum-based groups in Morgan Hill and Gilroy -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy - Outreach and Engagement - Christmas Event with Fire Department - South County Technical Team Meeting and Policy Team Meeting January 2020 Outreach and recruitment for two curriculum-based groups are held weekly - one in Morgan hill and one in Gilroy -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy 7.A.a Packet Pg. 72 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -3- 4835-2267-0361v1 LAC\04706083 - Outreach and Engagement - Morgan Hill Values Youth Event booth - South County Technical Team Meeting and Policy Team Meeting February 2020 - Implementation and pre-test for two curriculum-based groups are held weekly in Morgan Hill and Gilroy -Post-test/Graduation Ceremony for curriculum-based parenting group at San Ysidro -Individual Case Management services provided - Outreach and Engagement BBQ in the park - South County Technical Team Meeting and Policy Team Meeting March 2020 -On-going two curriculum-based groups are held weekly in Morgan hill and Gilroy - Individual Case Management services provided - Outreach and Engagement Activity based on program needs -Late Night Gym sessions held weekly in Gilroy - South County Technical Team Meeting and Policy Team Meeting April 2020 -On-going two curriculum-based groups are held weekly in Morgan Hill and Gilroy -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy - Outreach and Engagement Spring Break Party in the Park and Dia del Nino. - Easter egg hunt with THRIVE families - South County Technical Team Meeting and Policy Team Meeting 7.A.a Packet Pg. 73 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) -4- 4835-2267-0361v1 LAC\04706083 May 2020 - Need to review and agreement on summer funding/programming for July 2020 - Post-test/Graduation Ceremony for two curriculum-based groups are held weekly in Morgan Hill and Gilroy -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy - Outreach and Engagement: Based on program need and and Resiliency Festival - South County Technical Team Meeting and Policy Team Meeting June 2020 - Based funding/programming -Individual Case Management services provided - Late Night Gym sessions held weekly in Gilroy -Outreach and Engagement: Fun in the Park community event booth in both Morgan Hill and Gilroy. Based on funding: Field Trip: Beach, Christopher High Aquatic, Bowling and/or Movie. - South County Technical Team Meeting and Policy Team Meeting 7.A.a Packet Pg. 74 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) 4835-2267-0361v1 LAC\04706083 EXHIBIT “D” PAYMENT SCHEDULE A. Compensation to CONSULTANT Community Solutions shall be contingent upon successful completion of the services outlined in EXHIBIT B, SCOPE OF SERVICES. A statement of all professional services outlined under this AGREEMENT shall be prepared by CONSULTANT Community Solutions and submitted to the City of Gilroy on or before the fifteenth (15th) day of the month, following the billing quarter, following completion of each of the Services identified in EXHIBIT B. If the services have been completed to the satisfaction of the City of Gilroy, the CITY shall make payment to the CONSULTANT within thirty (30) business days after receipt of the statement and approval thereof. B. The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT shall not exceed total budget: $111,000. CONSULTANT to successfully complete the project within the 9 month period. Quarterly reimbursement will be based on work completed, per budget specifications. C. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. All contract deliverables needed for payment are stated in Exhibit B and include the completion of a quarterly invoice, with relevent direct expenses back up, monthly narrative and statistical reporting to show measurement for successful targeted youth intervention, groups and pro-social activities in pre-designated areas. Monthly invoices and back up will be submitted to the CITY by the 15th of the next month, as follows or the Friday prior to if the 15th falls on a weekend. An exception will be the last quarterly invoice as the City funder requests the final invoice prior to the month's end : Months Invoice Deadline July 1 - July 30, 2019 August 15, 2019 August 1- August 30, 2019 September 15, 2019 September 1- September 30, 2019 October 15, 2019 October 1- October 31, 2019 November 15, 2019 November 1- November 30. 2019 December 15, 2019 December 1- December 31, 2019 January 15, 2020 January 1- January 31. 2020 February 15, 2020 February 1- February 29, 2020 March 15, 2020 March 1-March 31, 2020 April 15, 2020 April 1- April 30, 2020 May 15, 2020 7.A.a Packet Pg. 75 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) 4835-2267-0361v1 LAC\04706083 May 1- May 31, 2020 June 15, 2020 June 1- June 30, 2020 June 15, 2020 Please allow up 30 business days between submittal of invoice and confirmed back up verification for the processing of payment. Invoices will be returned if necessary back up is not attached and timing of check processing will be paused. D. BUDGET - Please see attached. 7.A.a Packet Pg. 76 Attachment: SCYTF FY20 Agreement Community Solutions (2780 : Community Solutions Agreement) 7.A.b Packet Pg. 77 Attachment: Exhibit D_ Budget Community Solutions Contract (2780 : Community Solutions Agreement) City of Gilroy STAFF REPORT Agenda Item Title: Approval of a Third Amendment to the Agreement for Services with EOA Inc. for Bacteria Testing and Monitoring Related to the City Stormwater Compliance Project Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Robert Carrera Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve a third amendment to the agreement with EOA Inc. in the amount of $54,000 for continued services into Fiscal Year 2020-2021 of the Bacteria Monitoring and Implementation Plan. EXECUTIVE SUMMARY The City of Gilroy holds a General National Pollutant Discharge Detection and Elimination System (NPDES) Permit and must comply with the environmental rules and regulations that come with the permit. The NPDES Permit contains provisions in compliance with state and federal regulations that prevent trash, bacteria, sediment, and other pollutants from entering our local waterways and making their way into the ocean. 7.B Packet Pg. 78 As part of NPDES compliance efforts, the City relies on consultants for specialized services. In a regional partnership with the City of Morgan Hill and Santa Clara County, the City utilized the services of EOA Inc. (EOA), an environmental consulting firm with a specialization in helping public and private sector clients with water quality management. The City entered into a contract with EOA in December 2017 for bacteria monitoring in local watersheds, in partnership with the City of Morgan Hill and Santa Clara County. These partners have created a Regional Bacteria Total Maximum Daily Load (TMDL) Monitoring Plan in accordance with the NPDES permit requirements. The Monitoring Plan and the regional partnership have been approved by the Central Coast Water Board. EOA has submitted a proposal to continue their services into Fiscal Year (FY) 2020-2021. In order for them to continue into the next Fiscal Year a contract amendment is being submitted to Council for consideration. BACKGROUND Pursuant to the Federal Water Pollution Control Act (Clean Water Act), the City of Gilroy is responsible for ensuring the safe and adequate conveyance and discharge of storm water runoff from properties and infrastructure within the city. Administered by the State Water Resources Control Board (State Water Board), the Municipal Storm Water Program regulates how California cities handle Municipal Separate Storm Sewer Systems (MS4s). The United States Environmental Protection Agency (E.P.A.) defines an MS4 as a conveyance or system of conveyances (including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains) owned or operated by a city. In accordance with the E.P.A., a city is issued a National Pollutant Discharge Detection and Elimination System (NPDES) permit in order to handle MS4s. These storm water permits are required for discharges from an MS4 area. The City of Gilroy currently has a Municipal Storm Water Phase II Permit (for municipalities less than 100,000 residents). Additionally, the City of Gilroy is also responsible for complying with an Industrial General Permit (for the Corporation Yard), and project specific Construction General Permit. Since 2016, the City has been responding to three Notice of Violations (NOVs) issued by the State of California Water Resources Control Board (SWRCB). The first NOV was issued to the City on February 8, 2016 in response to violations found during a May 15, 2015 audit. Central Coast Water Board staff found the City in violation of the Post - Construction Storm Water Management Program element of the NPDES Permit. Per the Clean Water Act, the NPDES Storm Water Program addresses non-agricultural sources of storm water discharges that adversely affect water quality. The Program mandates that discharging entities implement various control measures to prevent harmful pollutants in their storm water runoff from reaching water bodies, as prescribed in storm water permits. 7.B Packet Pg. 79 The Central Coast Water Board also determined that the City was in violation of the General Permit Pollution Prevention/Good Housekeeping provisions at the City Corporation Yard. Additionally, upon inspection of the Corporation Yard, the Water Board asked the City to enroll in the Industrial General Permit (IGP) since the Corporation Yard failed to implement appropriate controls of the sources of pollution and Best Management Practices. On February 9, 2017, a second NOV was issued to the City because of the delay in the adoption of an updated Landscape Code, which addresses landscape maintenance associated with storm water management facilities. The second NOV was cleared when the City adopted a landscape ordinance. Both of these NOVs have since been addressed by the City. However, in the process of clearing the City of the first NOV, the Central Coast W ater Board reviewed the construction plan sets and Storm Water Control Plans for select projects to confirm adequate implementation of the Post Construction Requirements (PCRs) portion of the Construction General Permit. A third NOV was issued on March 11, 2019, alleging the City’s failure to follow PCR procedures for various development projects. Based on Central Coast Water Board staff review of the City’s April 2018 Technical Report and correspondence, the City was found to be in violation of the PCRs for failing to apply, verify, implement, and maintain post-construction storm water management controls. Staff has provided documents in response to this NOV and is currently awaiting feedback from the Central Coast Water Board. Upon resolution of this issue, the City will be in full compliance of current storm water permit requirements. The Department of Public Works has put in place measures to proactively manage the City’s storm water programs. The program is currently managed by a part-time (16 hours a week) City of Morgan Hill Environmental Programs Coordinator through a staffing contract with the City of Morgan Hill. This staff member works closely with the Engineering Division on coordinating storm water management efforts. In addition, the City works with consultants that provide subject-matter expertise and assistance in NPDES Permit compliance, including the sampling and testing of storm water runoff and surface waters. ANALYSIS EOA is an environmental consulting firm with a specialization in he lping public and private sector clients with water quality management. On December 12th, 2017, the City entered into a contract with EOA, joining a regional water quality monitoring effort with the City of Morgan Hill and Santa Clara County (referred to as The Regional Partnership) to support the monitoring, testing, and reporting on the region’s watershed. The County of Santa Clara conducted a competitive procurement process and asked for 7.B Packet Pg. 80 proposals for this work from 6 consultants-- out of which only 2 responded. EOA was selected based on their experience and qualifications to perform the work. By contracting with EOA, the Regional Partnership administers the South Santa Clara County Regional Bacteria Total Maximum Daily Loading (TMDL) Monitoring Plan. Th is plan was finally approved by the Regional Water Quality Control Board on April 20, 2020. The Regional Partnership allows the City to optimize available resources and data sharing, thereby reducing the amount of time and resources required to comply with current and future NPDES permits. EOA’s services will help address provisions of the NPDES Permit, which are required for compliance. On behalf of all three members of the Regional Partnership, EOA implements the regional monitoring plan, maintains a geodatabase of bacteria sources in the region’s watershed, submits a mandatory annual report to the Central Coast Water Board called the Total Maximum Daily Load (TMDL) Status Report, and provides on-call professional services for water quality management and NPDES compliance. EOA has performed field surveys, sampling, testing, and database management for the City. The current EOA contract is for a total of $76,137 to provide these services through June 30, 2020. With the recent approval of the Regional Bacteria TMDL Monitoring Plan, EOA has submitted a proposal to continue providing services into FY 2020 -2021, related to implementation of the South Santa Clara County Regional Bacteria TMDL Monitoring Plan. As part of this project, EOA will conduct the follo wing: field monitoring, sampling, laboratory testing, quality assurance/quality control analysis, drafting and submittal of the TMDL Status Report, Microbial Source Tracking studies, and completion of the Annual Water Monitoring Report-- all of which are required for compliance with the NPDES Permit. Their proposal is included as an attachment to this staff report. The table below shows the cost of the services to be performed in FY 2020-2021: Task Description Cost 1 Implement Regional Monitoring Plan $39,889 2 Maintain Bacteria Geodatabase $1,500 3 Develop Water Year (WY) 2020 Regional TMDL Status Report $7,500 4 Miscellaneous On-Call Services $5,100 TOTAL $54,000 7.B Packet Pg. 81 Combined with the existing $76,137, the FY21 proposed amount will bring the total contract amount to $130,137. ALTERNATIVES Council could choose not to extend the agreement with EOA for continued implementation of the South Santa Clara County Regional Bacteria TMDL Monitoring Plan. The City does not currently have the staffing resources or expertise to perform the tasks required for compliance with the NPDES Permit. Discontinuing EOA’s services would set back progress that has been made towards the goal of full compliance wi th the NPDES permits. Not using EOA for this work would require an increase in staff time and would divert resources from other core services. Furthermore, the City would not fulfill its obligations to the Central Coast Water Board approved Regional Partne rship. STAFF DOES NOT RECOMMEND THIS ALTERNATIVE. FISCAL IMPACT/FUNDING SOURCE A portion of the $54,000 cost for this contract amendment ($20,000) will be covered by the Sewer Enterprise Fund (based on its applicability in the detection and elimination of wastewater from surface waters). The remaining $34,000 of funding would be covered by the General Fund in the department’s existing budget appropriations. CONCLUSION EOA provides the City with technical expertise in water quality management that will help address the management of water pollution in regional watersheds, while meeting the mandates set forth by the state. A contract with EOA strengthens the City’s Regional Partnership in water monitoring efforts through the Central Coast Water Board approved TMDL Monitoring Plan, and provides cost sharing opportunities. With EOA services continuing into FY 2020-2021, the City expects to be in compliance with the NPDES Permit provisions related to water quality monitoring. Attachments: 1. DRAFT 3rd ADDENDUM to Agreement for Services - EOA 2. Agreement for Services for Bacteria Monitoring and Implementation 3. EOA - 1st Amend 2018 Agreement for Services for Bacteria Monitoring and ... 4. EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 7.B Packet Pg. 82 4835-2267-0361v1 LAC\04706083 -1- THIRD AMENDMENT TO THE AGREEMENT FOR SERVICES BETWEEN THE CITY OF GILROY AND EOA INC. WHEREAS, the City of Gilroy, a municipal corporation (“City”), and EOA, Inc. entered into that certain agreement entitled “Agreement for Services”, effective on December 12, 2017, hereinafter referred to as “Original Agreement”; and WHEREAS, City and EOA, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. The first paragraph of Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows: “This Amendment will become effective on December 12, 2017 and continue in effect through June 30, 2021 unless terminated in accordance with the provisions of Article 7 of this Agreement.” 2. Article 4, Section A (Consideration) of the Original Agreement shall be amended to read as follows: “In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $130,137. 3. Exhibit “B” (Scope of Services) of the original agreement is hereby replaced with the attached Exhibit “B”. 4. Exhibit “C” (Milestone Schedule) of the original agreement is hereby replaced with the attached Exhibit “C”. 5. Exhibit “D” (Payment Schedule) of the original agreement is hereby replaced with the attached Exhibit “D”. 6. This Amendment shall be effective on June 30, 2020. 7. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 8. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. 7.B.a Packet Pg. 83 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- CITY OF GILROY EOA, INC. By: By: [signature] Jimmy Forbis [signature] Ray Goebel [employee name] Interim City Administrator [name] Vice President - Operations [title/department] [title] Date: Date: Approved as to Form ATTEST: City Attorney City Clerk 7.B.a Packet Pg. 84 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “B” SCOPE OF SERVICES This scope of services includes four tasks. Budget estimates and details are discussed below.  Implement Bacteria Monitoring Plan  Maintain Bacteria Regional Geodatabase  Prepare Water Year 2020 Total Maximum Daily Load Status Report  On-call services Task 1. Implement Bacteria Monitoring Plan On April 20, 2020, RWQCB staff approved the South Santa Clara County Regional Bacteria Total Maximum Daily Load (TMDL) Monitoring Plan for the Pajaro River Watershed (Regional Monitoring Plan). The Regional Monitoring Plan includes desktop studies and field investigations to identify sources of bacteria and assess compliance with the TMDL. In Water Year 2021 (i.e., October 1, 2020 – September 30, 2021), the Monitoring Plan calls for collection of outfall and receiving water samples during ten sampling events (five wet season events and five dry season events). Two outfalls and four receiving water stations are located within the City of Gilroy. All samples will be analyzed for FIB (E. coli and fecal coliform) and a subset of samples will be analyzed using Microbial Source Tracking (MST) techniques (i.e., human genetic markers). MST analysis will generally be limited to the first three wet season events and the first three dry season events. In addition, station UCU (Uvas Creek at Burchell Road), which is located upstream of Gilroy, will not be included in the MST analyses. EOA will conduct the monitoring at the Gilroy stations concurrent with the Morgan Hill and County stations. Following sample collection FIB samples will be delivered, under chain-of-custody to Alpha Analytical in the City of Livermore or arrangements will be made for currier services. MST samples will be delivered to CelAnalytical in the City of San Francisco. This scope of work includes one third of the total labor costs to conduct the monitoring program. The remainder will be paid by the County. This scope of work includes laboratory costs for samples collected from the two outfalls and four receiving water stations located within Gilroy. The estimated laboratory costs reflect the assumption that it will not be possible to sample the outfalls during the dry season due to lack of flow. All monitoring and sample analysis will be performed using California Surface Water Ambient Monitoring Program (SWAMP) comparable protocols and quality assurance objectives. These protocols include two field quality assurance/quality control (QA/QC) samples during each of the ten monitoring events, a field duplicate and a field blank. Laboratory analysis for one of the QA/QC samples is included in this scope of work. The other QA/QC sample will be covered by Morgan Hill and the County. A preliminary review of each data report from the analytical laboratories will be conducted as part of this scope of work. The full data validation process and development of the monitoring report will be contracted separately in FY 2021/22. Task 2. Maintain Regional Geodatabase A Bacteria TMDL Geodatabase was developed in 2016 and updated to include the Gilroy jurisdictional area in 2018. The Geodatabase is useful in identifying potential sources of FIB and the likelihood that the sources will enter the MS4. The Geodatabase will be maintained in FY 2020/21 and updated with new information such as sanitary sewer overflows (SSOs) reported by the State Water Resources Control Board. Task 3. Prepare WY 2020 Total Maximum Daily Load Status Report Provision E.15.d of the Phase II Permit requires annual submittal to the RWQCB of a report describing the status of implementation of the Bacteria TMDL (i.e., TMDL Status Report). EOA will develop the Regional TMDL Status 7.B.a Packet Pg. 85 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- Report that describes implementation of the Bacteria TMDL and Regional Wasteload Allocation Attainment Plan (WAAP) during WY 2020. Under this task, as a separate, stand-alone document, EOA will also develop a Quality Assurance Project Plan (QAPP) that describes baseline requirements to be met and outlines the procedures that will be used to ensure that data collected through the South Santa Clara County Regional Bacteria TMDL Monitoring Plan meet those requirements. Where applicable, the QAPP will reference requirements established by SWAMP. Draft versions of the Regional TMDL Status Report and QAPP will be submitted to the Regional Partners for review. Upon receipt of comments, the Regional TMDL Status Report and QAPP will be finalized. Task 4. Miscellaneous On-Call Services This task includes time for EOA to provide miscellaneous on-call tasks to assist Gilroy to comply with the Phase II Permit. For example, Gilroy may wish for assistance with responses to RWQCB communications, review of the re - issued Phase II Permit (anticipated in FY 2020/21), and/or trash assessment protocols. Details of this task will be developed as needs arise. Tasks requested by Gilroy will be conducted as budget allows. 7.B.a Packet Pg. 86 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “C” MILESTONE SCHEDULE Task 1. Implement Bacteria Monitoring Plan  Preparation for field monitoring will begin in November 2020. Wet season monitoring will begin after sufficient seasonal precipitation has occurred (approximately 8 cumulative inches) which is likely in January or February 2021. Dry season monitoring will begin in April 2021. Task 2. Maintain Regional Geodatabase  Updated maps will be submitted with the TMDL Status Report by October 15, 2021. Task 3. Prepare WY 2020 Total Maximum Daily Load Status Report  Draft Regional WY 2020 TMDL Status Report (September 2020); Final Regional TMDL Status Report must be submitted to the RWQCB by October 15, 2020. Task 4. Miscellaneous On-Call Services  To be determined 7.B.a Packet Pg. 87 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “D” PAYMENT SCHEDULE FY 2020-2021 Compensation Task Description Budget 1 Implement Regional Monitoring Plan $39,889 2 Maintain Bacteria Geodatabase $1,500 3 Develop WY 2020 Regional TMDL Status Report $7,500 4 Miscellaneous On-Call Services $5,111 TOTAL BUDGET $54,000 EOA will perform these services on a time and expense reimbursement basis, up to the above total budget amount, according to the attached 2020 Fee Schedule, and will not exceed the total budget without prior authorization by the City of Gilroy. To provide maximum flexibility, the budget will not be managed on a task-by-task basis. Rather, cost savings realized in one task may be applied to other tasks, as needed. EOA will invoice services on a time and expense reimbursement basis and submit monthly invoices to the City. Payment shall be net 30 days. Reimbursable expenses will be billed at cost plus 10 percent. 2020 FEE SCHEDULE The following fee schedule covers personnel rates for EOA, Inc. staff. Our charges are divided into two categories: personnel, and direct expenses. A new fee schedule is issued at the beginning of each year. Charges for all work, except where other arrangements have been made, are based on the new schedule of charges. PERSONNEL Personnel charges are for any technical, clerical or administrative work necessary to perform the project. Work tasks include geologic and environmental consulting, engineering and computer services, regulatory liaison, and report preparation. Personnel rates are as follows: Personnel Category Hourly Rates Principal……………………………….. $287 Managing Engineer/Scientist III……………………………………………. $279 Managing Engineer/Scientist II…………………………………………….. $264 Managing Engineer/Scientist I……………………………………………... $252 Senior Engineer/Scientist III – Project Leader……………………………... $232 Senior Engineer/Scientist/Planner II……………………………………….. $212 Senior Engineer/Scientist/Planner I…………………………….................... $194 Associate Engineer/Scientist III ………………………………................... $184 Associate Engineer/Scientist II…………………………………................... $175 Associate Engineer/Scientist I……………………………………………… $149 Assistant Engineer/Scientist……………………………………................... $134 Technician………………………………………………………………….. $117 Clerical/Computer Data Entry……………………………………………… $82 Charges for professional services are in increments of one quarter-hour. Depositions/legal testimony charged portal-to- portal, at 200% of standard rates, with a four-hour minimum charge. In accordance with California Civil Procedure 2037.7, where applicable, the minimum fee must be paid prior to commencement of testimony. Preparation for court cases is charged on a time-and-materials basis as outlined in this fee schedule. 7.B.a Packet Pg. 88 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 4835-2267-0361v1 LAC\04706083 -1- DIRECT EXPENSES Reimbursement for expenses directly related to services provided will be charged at cost plus 10%. Examples of such direct expenses include:  Costs of sub-consultants or subcontractors  Costs of special fees (insurance, permits, etc.)  Costs of long-distance telephone, copying, drafting, blueprints, etc. (EOA copies charged at $0.10 each for B&W, $0.35 each for color. Large format $0.15/sq ft for B&W, $0.50/sq ft for color)  Costs of color map production supplies (color ink and large format paper)  Costs or rental of special equipment  Costs of authorized travel and related expenses  Automobile mileage directly related to services, at current IRS rate. INVOICES Invoices are prepared and submitted on a monthly basis, as either final or progress billings and are payable upon receipt unless prior arrangements have been made. Interest of 1-1/2% per month, or the maximum rate allowed by law, is payable on accounts not paid within 30 days. 7.B.a Packet Pg. 89 Attachment: DRAFT 3rd ADDENDUM to Agreement for Services - EOA (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 90 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 91 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 92 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 93 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 94 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 95 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 96 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 97 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 98 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 99 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for Stormwater 7.B.b Packet Pg. 100 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 101 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 102 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 103 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 104 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 105 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 106 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 107 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 108 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 109 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 110 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 111 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for 7.B.b Packet Pg. 112 Attachment: Agreement for Services for Bacteria Monitoring and Implementation (2807 : Amendment to agreement with EOA Inc for FIRST AMENDMENT TO AGREEMENT FOR SERVICES BETWEEN CITY OF GILROY AND EOA, INC., TO INCLUDE THE CITY OF GILROY IN THE BACTERIA PLAN AND RELATED IMPLEMENTATION DATED DECEMBER 12, 2017 WHEREAS, the City of Gilroy, a municipal corporation ( "City "), and EOA, Inc., entered into that certain agreement entitled Agreement for Services, effective on December 12, 2017, hereinafter referred to as "Original Agreement "; and WHEREAS, City and EOA, Inc., have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. Article 1, first paragraph (Term of Agreement) of the Original Agreement shall be amended to read as follows: This Agreement will become effective on December 12, 2017 and will continue in effect through June 30, 2019 unless terminated in accordance with the provisions of Article 7 of this Agreement." 3. This Amendment shall be effective on August 22, 2018. 4. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 5. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF ROY EOA, L By: By: signature] Girum Awoke employee name] Director of Public Works title /department] Date: Date: 4845 - 8215- 5540v1 MDOLINGER104706083 -1- Y12JIlS title] 7.B.c Packet Pg. 113 Attachment: EOA - 1st Amend 2018 Agreement for Services for Bacteria Monitoring and ... (2807 : Amendment to agreement with EOA Inc for Approved as to Form City Attorney 4845 - 8215- 5540v1 MDOLINGER104706083 -2- 7.B.c Packet Pg. 114 Attachment: EOA - 1st Amend 2018 Agreement for Services for Bacteria Monitoring and ... (2807 : Amendment to agreement with EOA Inc for SECOND AMENDMENT TO AGREEMENT FOR SERVICES BETWEEN CITY OF GILROY AND EOA, INC., TO INCLUDE THE CITY OF GILROY IN THE BACTERIA PLAN AND RELATED IMPLEMENTATION DATED DECEMBER 12, 2017 WHEREAS, the City of Gilroy, a municipal corporation ("City"), and EOA, Inc., entered into that certain agreement entitled Agreement for Services, effective on December 12, 2017, hereinafter referred to as "Original Agreement"; and WHEREAS, City and EOA, Inc., have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. Article 1, first paragraph of the Original Agreement shall be amended to read as follows: This Amendment will become effective on May 7, 2019 and will continue in effect through June 30, 2020 unless terminated in accordance with the provisions of Article 7 of this Agreement." 2. Article 4 A. Consideration of the Original Agreement shall be amended to read as follows: In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit "D" ("Payment Schedule"). In no event however shall the total compensation paid to Consultant exceed $76,137. 3. Exhibit `B" (Scope of Services) of the Original Agreement is hereby replaced with the attached Exhibit `B" 4. Exhibit "C" (Milestone Schedule) of the Original Agreement is hereby replaced with the attached Exhibit "C" 5. Exhibit "D" (Payment Schedule) of the Original Agreement is hereby replaced with the attached Exhibit "D" 6. This Amendment shall be effective on July 1, 2019 6. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 7. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 4845-8215-5540v1 MDOLINGER104706083 7.B.d Packet Pg. 115 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF GILROY By. [ signature] -... Gabriel A. Gonzalez employee name] City Administrator title/department] EOA, INC By: s signature] Ray Goebe Date: j Date: Approved Fo City Attorney 4845-8215-55400 _2_ MDOLINGER104706083 name] Vice President - Operations title] ATTE : Ity C k 7.B.d Packet Pg. 116 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "B" Environmental and Public Health Engineering Date: February 27, 2019 Ms. Tanya Carothers City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Subject: Scope of Work for City of Gilroy Water, Phase II NPDES Permit Support during Calendar Year 2019 Tanya, This letter describes the scope of services and associated budget to continue supporting the City of Gilroy during calendar year 2019 with compliance with the Phase II Small Municipal Separate Storm Sewer System (MS4) National Pollutant Discharge Elimination System (NPDES) Permit (Phase II Permit; Order No. 2013-0001-DWQ). The scope of services is consistent with the tasks that were approved by Central Coast Regional Water Quality Control Board (RWQCB) staff (via electronic mail on January 15, 2019) as appropriate alternatives to fecal indicator bacteria field sample collection during Water Year (WY) 2019 and 2020. The tasks were developed in coordination with the County of Santa Clara (County) and the City of Morgan Hill. Collectively, Gilroy, Morgan Hill, and the County are referred to as the Regional Partners. SCOPE OF SERVICES This scope of services includes five tasks. Budget estimates and details are discussed below. Develop Regional Wasteload Allocation Attainment Plan Maintain and Improve Regional Geodatabase Conduct Pet Waste Reconnaissance Prepare WY 2019 Total Maximum Daily Load Status Report On -call services FASS06\_Project Management\Gilroy\Gilroy monitoring scope 2-27-1g.docx 7.B.d Packet Pg. 117 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "B" Ms. Tanya Carothers February 27, 2019 Page 2 of 5 Task 1. Develop Regional Wasteload Allocation Attainment Plan On January 15, 2019, RWQCB staff approved the recommendation from the Regional Partners to develop a Regional Wasteload Allocation Attainment Plan (WAAP) to address the Pajaro River Fecal Indicator Bacteria (FIB) Total Maximum Daily Load (TMDL). The Regional WAAP will describe the proposed shift from the field portion of the current FIB monitoring program (i.e., collection of samples from receiving waters for E. coli analysis). Instead, resources in WY 2019 and 2020 will be directed towards more targeted source identification studies and development/implementation of new or improved control measures emphasizing human pathogens. A key component of the Regional WAAP will be a description of the actions currently being done by each of the Regional Partners to address clean-up of homeless encampments. The issue of homelessness is complex and politically sensitive. Potential solutions are generally resource intensive and beyond the scope of stormwater programs. Furthermore, clean-up activities can be dangerous to personnel due to encounters with individuals/dogs and the presence of hazardous materials. However, EOA will work with the City of Gilroy to identify opportunities to improve homeless encampment clean-up and/or prevention actions that can be conducted by the stormwater program. These may include: coordination with other municipal departments, NGOs, and non -profits; development of flyers and signage specifically targeting the homeless population; and development of a voucher program for the RV population for disposal of black water. New actions identified through this task will be described in the Regional WAAP. The regional WAAP will document inclusion of Gilroy into the Regional Bacteria TMDL Monitoring Plan which is being updated under EOA's prior contract with Gilroy. A draft version of the Regional WAAP will be submitted to Gilroy, Morgan Hill, and the County for review. Upon receipt of comments, the Regional WAAP will be finalized. Cost: $6,594. This cost represents approximately one third of the total cost to develop the Regional WAAP and write-up homeless response section. The remaining costs will be paid through separate contracts with Morgan Hill and the County Schedule: Draft Regional WAAP (early June 2019); Final Regional WAAP must be submitted to the RWQCB by June 30, 2019 F1SS06\_Project Management\Gilroy\Gilroy monitoring scope 2-27-19.docx 7.B.d Packet Pg. 118 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "B" Ms. Tanya Carothers February 27, 2019 Page 3 of 5 Task 2. Maintain and Improve Regional Geodatabase A Bacteria TMDL Geodatabase was developed in 2016 and updated to include the Gilroy jurisdictional area in 2018. The Geodatabase is useful in identifying potential sources of FIB and the likelihood that the sources will enter the MS4. The Geodatabase will be maintained in 2019 and updated with new information such as sanitary sewer overflows (SSOs) reported by the State Water Resources Control Board. Furthermore, based on field observations of stream flow and review of the WY 2018 E. coli data, several potential improvements to the Geodatabase were identified. Hydrologic Mapping. The Geodatabase currently uses hydrologic information obtained from Valley Water (formerly the Santa Clara Valley Water District). A more detailed hydrologic layer will improve understanding of when and where tributaries discharge to receiving waters. Updates will include: review of current hydrologic conditions that have changed and/or are planned as a result of drainage improvements; identification of creek reaches that are known to dry up during the dry season (recent Valley Water studies will be included); and merging/rectification of catchment mapping conducted for the TELR model with the creek and storm drain layers. Age Mapping of Storm Drain Infrastructure. To the extent that data are available, the age of the Gilroy storm drain infrastructure will be mapped. In the absence of construction dates, ages will be estimated based on the approximate year that surrounding parcels were developed as noted in the County Assessor Database. Results of the mapping could be used to identify opportunity for additional investigations. Sanitary Sewer Infrastructure. EOA will work with Gilroy sanitary sewer managers to map and estimate the age of sanitary sewer infrastructure. In addition, phone interviews and/or report reviews will be conducted to understand operations and maintenance (O&M) activities, including planned upgrades and integrity testing (smoke and dye testing). If opportunities for improved coordination, O&M, and additional investigations are identified, they will be described in the Regional WAAP. Cost: $5,219 Schedule: Updated maps will be submitted with the TMDL Status Report by October 15, 2019. New actions (if relevant) will be listed in the Regional WAAP (June 30, 2019). Task 3. Pet Waste Reconnaissance EOA will conduct pet waste reconnaissance at parks and trails in Gilroy to identify locations where pet waste is particularly problematic. If relevant and within the available budget, protocols developed by the City of Watsonville for similar reconnaissance work will be followed. The protocol will be described in the Regional WAAP (deadline June 30, 2019) and the results will be described and mapped in the TMDL 1- FASS06\_Project Management\Gilroy\Gilroy monitoring scope 2-27-19.docx 7.B.d Packet Pg. 119 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "B" Ms. Tanya Carothers February 27, 2019 Page 4 of 5 Status Report (deadline October 15, 2019). Gilroy may use results of the survey to identify locations for public outreach signage or dog waste cleanup stations. Cost: $3,686. This cost assumes that Morgan Hill will contract with EOA for the same task and that reconnaissance visits will be conducted on the some dates. Schedule: Pet waste reconnaissance surveys will be conducted on two occasions, likely once in the spring and once in the summer. Task 4. Prepare WY 2019 Total Maximum Daily Load Status Report Provision E.1 5.d of the Phase II Permit requires annual submittal to the RWQCB of a report describing the status of implementation of the Bacteria TMDL (i.e., TMDL Status Report). EOA will develop the a Regional TMDL Status Report that describes implementation of the Bacteria TMDL and Regional WAAP. The TMDL Status Report will include a Table of Quantitative Interim Milestones for Achieving Wasteload Allocations based on the example template included in the RWQCB letter dated January 15, 2019. A draft version of the Regional TMDL Status Report will be submitted to Gilroy, Morgan Hill, and the County for review. Upon receipt of comments, the Regional TMDL Status Report will be finalized. Cost: $5,000. This cost is on third of the total cost estimated to prepare the report. It assumed that Morgan Hill and the County will each contract with EOA for a similar amount. Schedule: Draft Regional WY 2019 TMDL Status Report (September 2019); Final Regional TMDL Status Report must be submitted to the RWQCB by October 15, 2019. Task 5. On -Call Services We recommend that the City of Gilroy authorize a budget of $5,000 for on -call services related to compliance with the Phase II Permit. For example, Gilroy may wish for assistance with trash assessment protocols. Details of this task will be developed as needs arise. Cost: $5,000 Schedule: to be determined OM FASS06\_Project Management\Gilroy\Gilroy monitoring scope 2-27-19.docx 7.B.d Packet Pg. 120 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "B" Ms. Tanya Carothers February 27, 2019 Page 5 of 5 COMPENSATION Task Description Budget 1 Develop Regional WAAP $6,594 2 Maintain and Improve Geodatabase $6,127 3 Conduct Pet Waste Reconnaissance $3,686 4 Develop Regional TMDL Status Report $5 000 5 On -Call Services $5,000 TOTAL BUDGET $26,407 EOA will perform these services on a time and expense reimbursement basis, up to the above total budget amount, according to the attached 2019 Fee Schedule, and will not exceed the total budget without prior authorization by the City of Gilroy. To provide maximum flexibility, the budget will not be managed on a task -by -task basis. Rather, cost savings realized in one task may be applied to other tasks, as needed. The project manager will be Bonnie de Berry, CPSWQ (Managing Scientist 1) with support from Chris Sommers (Managing Scientist III), Stefan Grozev (Associate Scientist II), and other EOA staff if needed. EOA will invoice services on a time and expense reimbursement basis and submit monthly invoices to the City. Payment shall be net 30 days. Reimbursable expenses will be billed at cost plus 10 percent. Please contact Bonnie de Berry at 510-832-2852 X.123 if you have any questions. Sincerely, Ray Goebel Vice President EOA, Inc. F1SS061_Project Management\Gilroy\Gilroy monitoring scope 2-27-19.docx 7.B.d Packet Pg. 121 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "C" MILESTONE SCHEDULE Task 1. Develop Regional Wasteload Allocation Attainment Plan: Schedule: Draft Regional WAAP (early June 2019); Final Regional WAAP must be submitted to the RWQCB by June 30, 2019 Task 2. Maintain and Improve Regional Geodatabase: Schedule: Updated maps will be submitted with the TMDL Status Report by October 15, 2019. New actions (if relevant) will be listed in the Regional WAAP (June 30, 2019). Task 3. Pet Waste Reconnaissance Schedule: Pet waste reconnaissance surveys will be conducted on two occasions, likely once in the spring and once in the summer. Task 4. Prepare WY 2019 Total Maximum Daily Load Status Report Schedule: Draft Regional WY 2019 TMDL Status Report (September 2019); Final Regional TMDL Status Report must be submitted to the RWQCB by October 15, 2019. Task 5. On -Call Services Schedule: to be determined 7.B.d Packet Pg. 122 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for EXHIBIT "D" Environmental and Public Health Engineering 2019 FEE SCHEDULE The following fee schedule covers personnel rates for EOA, Inc. staff. Our charges are divided into two categories: personnel, and direct expenses. A new fee schedule is issued at the beginning of each year. Charges for all work, except where other arrangements have been made, are based on the new schedule of charges. PERSONNEL Personnel charges are for any technical, clerical or administrative work necessary to perform the project. Work tasks include geologic and environmental consulting, engineering and computer services, regulatory liaison, and report preparation. Personnel rates are as follows: Personnel Category Hourly Rates Principal......................................................................................... $279 Managing Engineer/Scientist III ..................................................... $271 Managing Engineer/Scientist II ...................................................... $256 Managing Engineer/Scientist I ....................................................... $245 Senior Engineer/Scientist III — Project Leader ............................... $225 Senior Engineer/Scientist/Planner Il............................................... $206 Senior Engineer/Scientist/Planner I ................................................ $188 Associate Engineer/Scientist III ..................................................... $179 Associate Engineer/Scientist II ....................................................... $170 Associate Engineer/Scientist I ........................................................ $145 Assistant Engineer/Scientist........................................................... $130 Technician...................................................................................... $114 Clerical/Computer Data Entry ........................................................ $80 Charges for professional services are in increments of one quarter-hour. Depositions/legal testimony charged portal-to- portal, at 200% of standard rates, with a four-hour minimum charge. In accordance with California Civil Procedure 2037.7, where applicable, the minimum fee must be paid prior to commencement of testimony. Preparation for court cases is charged on a time -and -materials basis as outlined in this fee schedule. DIRECT EXPENSES Reimbursement for expenses directly related to services provided will be charged at cost plus 10%. Examples of such direct expenses include: Costs of sub -consultants or subcontractors Costs of special fees (insurance, permits, etc.) Costs of long-distance telephone, copying, drafting, blueprints, etc. (EOA copies charged at $0.10 each for B&W, $0.35 each for color. Large format $0.15/sq ft for B&W, $0.50/sq ft for color) Costs of color map production supplies (color ink and large format paper) Costs or rental of special equipment Costs of authorized travel and related expenses Automobile mileage directly related to services, at current IRS rate. INVOICES Invoices are prepared and submitted on a monthly basis, as either final or progress billings and are payable upon receipt unless prior arrangements have been made. Interest of 1-1/2% per month, or the maximum rate allowed by law, is payable on accounts not paid within 30 days. EOA, Inc. • 1410 Jackson Street • Oakland, CA 94612 • Tel: (510) 832-2852 • Fax: (510) 832-2856 7.B.d Packet Pg. 123 Attachment: EOA - Bacteria Monitoring and Implementation (2018) - Amendment No. 2 (2807 : Amendment to agreement with EOA Inc for City of Gilroy STAFF REPORT Agenda Item Title: Approval of Funding Priorities for Community Development Block Grant (CDBG) and Housing Trust Fund (HTF) Programs for Fiscal Year 2020-2021 and Receipt of Comments on the Draft 2020-2025 Consolidated Plan Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Sue O'Strander Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development  Neighborhood Services  Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Motion to continue the public hearing to the June 15, 2020 regular meeting. EXECUTIVE SUMMARY It is recommended that the Council continue the public hearing for this item to the June 15th regular meeting. The Council may open the public hearing, take public comment, and leave the public hearing open until this continued date. As an entitlement jurisdiction of the Community Development Block Grant (CDBG), the City of Gilroy is required to complete a 5-year Consolidated Plan (ConPlan) to receive and disperse grant allocations. In 2019, the City teamed up with Santa Clara County 8.A Packet Pg. 124 and other cities across the county to conduct a regional 2020-2025 ConPlan and other additional tasks, such as a countywide Assessment of Fair Housing. Conducting these projects jointly saved the City significant resources as oppose to conducting these services by ourselves. The Draft 2020-2025 ConPlan includes the 2020-2021 Annual Action Plan, which incorporates renewal of the CDBG public services and housing grant programs, as well as the local Housing Trust Funds (HTF) grant programs. These programs are entering into their second year of funding, in conjunction with the biennial budget. The Assessment of Fair Housing is still in process and will be presented to Council at a later date. At this time, the City Council is requested to consider the Draft 2020-2025 ConPlan and approve funding recommendations for FY 2020-2021 allocations. These actions are in advance of a subsequent hearing to approve the 2020-2025 ConPlan and FY 2020- 2021 Action Plan, tentatively anticipated on June 15, 2020. BACKGROUND For jurisdictions that receive Community Development Block Grant (CDBG) funding, a Consolidated Plan (ConPlan) is required every 5 years to help jurisdictions assess their affordable housing and community development needs and to make informed decisions according to data and market conditions. CDBG program requirements must accomplish one of three national objectives:  Activities which benefit low-and moderate-income persons  Elimination of slums and blight  Urgent Need – addressing a particular urgency that poses serious and immediate threat to the health and welfare of the community. Of the national objectives, a grantee is expected to use at least 70% of CDBG funds on activities that benefit low-moderate income persons. As such, this objective is typically the most used and highest priority for goal setting. In Santa Clara County, CDBG grantee agencies coordinate the ConPlan through a regional planning effort. The ConPlan is carried out through Annual Action Plans (one for each fiscal year), which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address priority needs and specific goals of the ConPlan. In order to receive federal grant funding for the Plan Year 2020, the City of Gilroy must prepare, submit and approve a 5-year ConPlan and Annual Action Plan (AAP or Action Plan) before federal monies will be allocated. 2020-2025 Consolidated Plan In May 2019, Santa Clara County issued a Request For Proposals for a consultant to initiate a regional ConPlan for the 2020-2025 period. This regional approach greatly streamlines cost and efforts by the various agencies to comply with the federal Housing 8.A Packet Pg. 125 and Urban Development (HUD) requirements. Among the various tasks, the selected consultant (Michael Baker International, or MBI) conducted various workshops and meetings to identify regional and local concerns relating to housing affordability, homelessness, improving local communities, and service needs. Gilroy was particularly successful in a survey outreach whereby 512 responses were received (355 paper format and 157 electronic/online). One of the final tasks is for MBI to prepare a Draft ConPlan for public review, and attend one public hearing at each Santa Clara County agency where the document will be presented. As part of a five-year ConPlan, the first year’s Action Plan is included in that document. Beginning on May 15, 2020, Gilroy’s Draft 2020 -2025 ConPlan and FY 2020-2021 Action Plan were available for public review and comment. The start of the 30-day public review period was publically noticed in English and Spanish, and ends on June 15, 2020. FY 2020-2021 Funding The City reviews applications for federal CDBG and local HTF grant allocations on a 2- year cycle. FY 2020-2021 is the second year of the current cycle. On March 11, 2020, the Housing & Neighborhood Revitalization Committee (HNRC) took action to recommend that the City Council renew the current year (FY 2019-2020) programs in the second year. As the City expects a slight reduction in the upco ming fiscal year’s CDBG entitlement grant allocation, the CDBG funding recommendations reflect a 2.2% reduction. In FY 2020-2021, Gilroy expects $468,300 available for CDBG program allocations. At the March 11, 2020 meeting, the HNRC was also presented wit h several capital improvement projects that may be eligible for CDBG funding. The Committee prioritized potential projects for consideration in upcoming and future Action Plans. ANALYSIS The Draft ConPlan was made available for public review and comment be ginning on May 15, 2020, and will end on June 15, 2020. During this period, the public can view the results of the community input received during the project outreach period. As such, this public hearing provides additional opportunity for community members to share comments pertaining to the Draft 2020-2025 ConPlan or the FY 2020-2021 Action Plan. Consolidated Plan Goals The HNRC supported the 4 preliminary goals presented by staff for inclusion in the Draft ConPlan. During the course of the ConPlan preparation, however, it was recognized that some goals could be expanded to include more clarify. The goals presented in the Draft 2020-2025 ConPlan include:  Preserve affordable housing for home ownership  Install safety and enhanced public improvements 8.A Packet Pg. 126  Support small business expansion  Workforce development  Supportive services for homeless populations  Supportive services for special needs populations  Fair housing support  Neighborhood revitalization FY 2020-2021 Annual Action Plan Programs The HNRC considered grant allocations for FY 2020-2021 Action Plan activities. The committee recommended renewing existing programs from the current fiscal year for both CDBG ($218,659) and HTF ($200,800) funding sources, totaling $419,459 in public services and housing rehabilitation:  CDBG Public Services: o Live Oak Adult Day Services (adult day care) $11,292 o Gilroy Compassion Center (day center for the homeless) $15,954 o Catholic Charities of Santa Clara County (long term care ombudsman) $9,410 o City of Gilroy Recreation Department (youth center) $36,884** o City of Gilroy Recreation Department (swim lessons) $755** ** At a meeting on May 13th, HNRC supported an adjustment request by Gilroy Recreation to shift $1200 from Swim Lessons to the Youth Center. The updated amounts are reflected.  CDBG Rehabilitation Programs: o Rebuilding Together Silicon Valley (rebuilding home repair, housing rehabilitation and accessibility modification) $144,364  HTF Grant Allocations: o The Health Trust (meals on wheels) $20,000 o Gilroy Compassion Center (day center for the homeless) $23,800 o St. Joseph’s Family Center (homeless prevention and safety net services) $50,000 8.A Packet Pg. 127 o St. Joseph’s Family Center (Gilroy Street Team) $35,000 o Silicon Valley Independent Living Center (housing and emergency services for persons with disabilities) $25,000 o Project Sentinel (fair housing) $21,000 o Project Sentinel (tenant/landlord counseling and dispute resolution) $26,000 Capital Improvement Project Priorities The HNRC was presented with several potential capital improvement projects for inclusion in upcoming and future Annual Action Plans. As the necessary funding may overlap several years, and necessitates coordination with the Public Works Department, the Committee was requested to prioritize the projects starting with the high est priority. This prioritization list will assist staff in identifying projects as future CDBG funds are available in these areas: 1. Annual Sidewalk/Curb Ramp Program (specific to sites within the Neighborhood Revitalization Strategy Area or NRSA) 2. Other capital projects within the NRSA (projects listed for reference, but no priority order recommended by Committee)  Gateway Senior Apartments Pedestrian Crossing Safety Improvements  Murray Avenue Sidewalk Gap Closure  Sidewalk Gap Closure – 8340 Swanston Lane  El Rancho Foods Sidewalk Gap Closure. 3. Capital projects outside the NRSA (projects listed for reference, but no priority order recommended by Committee)  Miller Crossing and Uvas Creek Pedestrian Improvements  Mantelli & Church Bulb-Out and Crosswalk Improvements ALTERNATIVES 1. The City Council may wish to adjust the FY 2020-2021 Action Plan program grant funding allocations as recommended by the HNRC. As the programs have successfully met their goals through the first half of the current fiscal year, this alternative is not recommended. 2. The City Council may wish to re-prioritize, eliminate, or add to the list of capital improvement projects. 8.A Packet Pg. 128 FISCAL IMPACT/FUNDING SOURCE Preparation of the 2020-2025 ConPlan and 2020-2021 Annual Action Plan was conducted with the coordination of Santa Clara County and various other cities within the county. Cost-sharing for project expenses is divided among the participating jurisdictions based on the level of work requested. This approach, led by Santa Clara County, saved significant City costs and staff time for conducting these projects. The alternative would have been for the City to hire and manage our own consultant, with overlapping and inconsistent regional outreach efforts. The City is working on a revenue sharing agreement with Santa Clara County to pay approximately $38,600 for these services. The costs for these services can be recovered through this year’s CDBG entitlement grant under the 20% cap for program administration. Revenue from the HTF is primarily funded through the repayment of promissory notes secured by and trust deeds recorded on property titles and equity share payments from sale, or resale, of Below-Market Rate (BMR) properties. There is an adequate fund balance to conduct HTF grant activities for the FY 2020-2021 period. NEXT STEPS Final action by City Council is anticipated on June 15, 2020, when the 2020-2025 ConPlan and FY 2020-2021 Annual Action Plan will be adopted. PUBLIC OUTREACH Extensive community participation occurred as part of the process to prepare the Draft ConPlan, as described above. Specifically, a joint meeting of the Community & Neighborhood Revitalization Committee (CNRC) and Housing Advisory Committee (HAC) on December 8, 2019 was held to conduct Community Forum for community members to have an opportunity to provide input to identify and prioritize community needs for the next five-year period. The CNRC and HAC have since been combined to form the Housing & Neighborhood Advisory Committee (HNRC). Staff presented the HNRC recommendations to the Parks & Recreation Commission on May 19, 2020 and the Bicycle & Pedestrian Commission on May 26, 2020. Both commissions were informed of the availability of the Draft ConPlan and FY 2020-2021 Action Plan, the comment period, and anticipated hearings before City Council. Attachments: 1. Draft 2020-2025 Consolidated Plan 2. Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11- 20) 8.A Packet Pg. 129 City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 1 TABLE OF CONTENTS Executive Summary ................................................................................................................. 5 ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ...................................................................... 5 The Process ............................................................................................................................17 PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) ....................................................................... 17 PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and 91.315(I) ........................... 18 PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c) ................................................. 27 Needs Assessment .................................................................................................................33 NA-05 Overview ...................................................................................................................................... 33 NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c) ................................................................. 38 NA-15 Disproportionately Greater Need: Housing Problems – 91.205 (b)(2) ......................................... 49 NA-20 Disproportionately Greater Need: Severe Housing Problems – 91.205 (b)(2) ............................ 52 NA-25 Disproportionately Greater Need: Housing Cost Burdens – 91.205 (b)(2) .................................. 55 NA-30 Disproportionately Greater Need: Discussion – 91.205(b)(2) ...................................................... 57 NA-35 Public Housing – 91.205(b) .......................................................................................................... 59 NA-40 Homeless Needs Assessment – 91.205(c) .................................................................................. 64 NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) .......................................................... 72 NA-50 Non-Housing Community Developm ent Needs – 91.215 (f) ........................................................ 76 Housing Market Analysis........................................................................................................78 MA-05 Overview ...................................................................................................................................... 78 MA-10 Number of Housing Units – 91.210(a)&(b)(2) .............................................................................. 79 MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) ............................................................... 82 MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) ...................................................... 85 MA-25 Public and Assisted Housing – 91.210(b) .................................................................................... 87 MA-30 Homeless Facilities and Services – 91.210(c) ............................................................................. 90 MA-35 Special Needs Facilities and Services – 91.210(d) ..................................................................... 94 MA-40 Barriers to Affordable Housing – 91.210(e) ................................................................................. 98 MA-45 Non-Housing Community Development Assets – 91.215 (f) ....................................................... 99 MA-50 Needs and Market Analysis Discussion..................................................................................... 105 MA-60 Broadband Needs of Housing occupied by Low- and Moderate-Income Households - 91.210(a)(4), 91.310(a)(2) ................................................................................... 109 MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3) .......................................................................... 110 Strategic Plan ........................................................................................................................ 111 SP-05 Overview ..................................................................................................................................... 111 SP-10 Geographic Priorities – 91.215 (a)(1) ......................................................................................... 112 8.A.a Packet Pg. 130 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 2 SP-25 Priority Needs - 91.215(a)(2) ...................................................................................................... 114 SP-30 Influence of Market Conditions – 91.215 (b) .............................................................................. 119 SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2) ................................................................ 120 SP-40 Institutional Delivery Structure – 91.215(k) ................................................................................ 122 SP-45 Goals Summary – 91.215(a)(4) .................................................................................................. 124 SP-50 Public Housing Accessibility and Involvement – 91.215(c) ........................................................ 129 SP-55 Barriers to affordable housing – 91.215(h) ................................................................................. 130 SP-60 Homelessness Strategy – 91.215(d) .......................................................................................... 132 SP-65 Lead-based Paint Hazards – 91.215(i)....................................................................................... 134 SP-70 Anti-Poverty Strategy – 91.215(j) ............................................................................................... 135 SP-80 Monitoring – 91.230 .................................................................................................................... 136 Expected Resources ............................................................................................................. 137 AP-15 Expected Resources – 91.220(c)(1,2)........................................................................................ 137 AP-20 Annual Goals and Objectives ..................................................................................................... 140 Projects.................................................................................................................................. 144 AP-35 Projects – 91.220(d) ................................................................................................................... 144 AP-38 Project Summary ........................................................................................................................ 145 AP-50 Geographic Distribution – 91.220(f) ........................................................................................... 150 Affordable Housing ............................................................................................................... 151 AP-55 Affordable Housing – 91.220(g) ................................................................................................. 151 AP-60 Public Housing – 91.220(h) ........................................................................................................ 152 AP-65 Homeless and Other Special Needs Activities – 91.220(i)......................................................... 153 AP-75 Barriers to Affordable Housing – 91.220(j) ................................................................................. 155 AP-85 Other Actions – 91.220(k) .......................................................................................................... 157 Program Specific Requirements .......................................................................................... 159 AP-90 Program Specific Requirements – 91.220(l)(1,2,4) .................................................................... 159 Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1)................... 159 Reference 24 CFR 91.220(l)(2) ............................................................................................................. 159 8.A.a Packet Pg. 131 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 3 LIST OF TABLES Table 1 Responsible Agencies .......................................................................................... 17 Table 2 Agencies, groups, organizations who participated ................................................25 Table 3 Other local / regional / federal planning efforts ......................................................26 Table 4 Citizen Participation Outreach ...............................................................................32 Table 5 Housing Needs Assessment Demographics .........................................................38 Table 6 Total Households Table ........................................................................................38 Table 7 Housing Problems Table .......................................................................................39 Table 8 Housing Problems 2..............................................................................................39 Table 9 Cost Burden >30% ................................................................................................40 Table 10 Cost Burden >50% ................................................................................................40 Table 11 Crowding Information – 1/2 ...................................................................................40 Table 12 Crowding Information 2/2 ......................................................................................41 Table 13 Disproportionately Greater Need 0 - 30% AMI ......................................................49 Table 14 Disproportionately Greater Need >30 - 50% AMI ..................................................50 Table 15 Disproportionately Greater Need >50 - 80% AMI ..................................................50 Table 16 Disproportionately Greater Need >80 - 100% AMI ................................................50 Table 17 Severe Housing Problems 0 - 30% AMI ................................................................52 Table 18 Severe Housing Problems >30 - 50% AMI ............................................................53 Table 19 Severe Housing Problems >50 - 80% AMI ............................................................53 Table 20 Severe Housing Problems >80 - 100% AMI ..........................................................54 Table 21 Greater Need: Housing Cost Burdens AMI ...........................................................55 Table 22 Public Housing by Program Type ..........................................................................60 Table 24 Characteristics of Public Housing Residents by Program Type .............................60 Table 25 Race of Public Housing Residents by Program Type ............................................61 Table 26 Ethnicity of Public Housing Residents by Program Type .......................................61 Table 31 Residential Properties by Unit Number .................................................................79 Table 32 Unit Size by Tenure ..............................................................................................79 Table 33 Cost of Housing ....................................................................................................82 Table 34 Rent Paid ..............................................................................................................82 Table 35 Housing Affordability .............................................................................................82 Table 36 Monthly Rent ........................................................................................................83 Table 37 Condition of Units .................................................................................................85 Table 38 Year Unit Built .......................................................................................................85 Table 39 Risk of Lead-Based Paint .....................................................................................86 Table 40 Vacant Units .........................................................................................................86 8.A.a Packet Pg. 132 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 4 Table 41 Total Number of Units by Program Type ...............................................................87 Table 42 Public Housing Condition ......................................................................................88 Table 43 Facilities and Housing Targeted to Homeless Households ...................................90 Table 44 Supportive Housing Programs ..............................................................................96 Table 45 Business Activity ................................................................................................. 100 Table 46 Labor Force ........................................................................................................ 101 Table 47 Occupations by Sector ........................................................................................ 101 Table 48 Travel Time ......................................................................................................... 101 Table 49 Educational Attainment by Employment Status ................................................... 101 Table 50 Educational Attainment by Age ........................................................................... 102 Table 51 Median Earnings in the Past 12 Months .............................................................. 102 Table 52 Geographic Priority Areas ................................................................................... 112 Table 53 Priority Needs Summary ..................................................................................... 118 Table 54 Influence of Market Conditions ............................................................................ 119 Table 55 Anticipated Resources ........................................................................................ 120 Table 56 Institutional Delivery Structure ............................................................................ 122 Table 57 Homeless Prevention Services Summary ........................................................... 122 Table 58 Goals Summary .................................................................................................. 127 Table 58-B Goal Descriptions ............................................................................................... 128 Table 59 Expected Resources – Priority Table .................................................................. 138 Table 60 Goals Summary .................................................................................................. 142 Table 61 Project Information .............................................................................................. 144 Table 62 Geographic Distribution ...................................................................................... 150 Table 63 One Year Goals for Affordable Housing by Support Requirement ....................... 151 Table 64 One Year Goals for Affordable Housing by Support Type ................................... 151 8.A.a Packet Pg. 133 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 5 EXECUTIVE SUMMARY ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The City of Gilroy combines its annual Community Development Block Grant (CDBG) entitlement grant with local Housing Trust Fund (HTF) dollars to maximize its ability to address high priority housing and social service needs within the community. The Gilroy HTF is a local fund and does not include any state or federal monies. The HTF was established to assist with affordable housing opportunities, such as first - time homebuyer loans and below market rate (BMR) homes. In addition, the City is always looking for and open to partnerships that encourage the creation or preservation of affordable housing units. The CDBG Entitlement Program provides formula funding to cities and counties to address community development needs. Seventy percent of gross funding must be used to serve low- to moderate-income households. Eligible activities must meet one of the national objectives for the program:  Benefit low- and moderate-income persons.  Prevention or elimination of slums or blight.  Address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available. 2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview The Consolidated Plan serves the following three functions:  Be a planning document for the City of Gilroy which builds on a participatory process.  Serve as the application for federal funds under HUD’s CDBG formula grant program.  Offer a strategy in carrying out CDBG programs. The Consolidated Plan consists of three primary sections:  Community engagement process and feedback.  Community needs assessment and market analysis.  Strategic plan. The Consolidated Plan also includes required HUD and Census data, which are provided in the tables. The community engagement section describes how the City of Gilroy complies with HUD’s requirements for public involvement in the process that determines how federal funds will be used. The Needs Assessment section analyzes data from the US Census Bureau and feedback from the community engagement process to assess the City’s affordable housing, social services, and community development characteristics to create a data-driven outcome of determining the City’s priority needs and primary goals. Through data collection, community engagement, and analysis presented in this Consolidated Plan, the housing and community development needs of the City’s most vulnerable populations, including low-to moderate-income (LMI) households, assessment of the City’s affordable housing stock, needs of homeless persons and those at imminent r isk of homelessness, non-homeless 8.A.a Packet Pg. 134 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 6 special needs populations, along with the City’s non -housing community development needs, can be understood and form a clear outline of priority needs. As explained in further detail in the Needs Assessment section, the priority populations in Gilroy are as follows:  Extremely low and low-income households  Hispanic households  Homeless populations The needs of these populations are assessed against the availability and accessibility of public services and programs, community assets, facilities, and infrastructure, and informed by needs and priorities expressed through the community engagement process. Needs include:  Employment training services  Housing for elderly residents and persons with disabilities  Public improvements to commercial and industrial sites  Emergency housing assistance to prevent homelessness, such as rental assistance  Addressing the lack of housing diversity and options  Attracting higher paying jobs to the City so people can work where they live , rather than spending time commuting  Additional shelter space for homeless persons 3. Evaluation of past performance During the last five-year Consolidated Plan period, the City of Gilroy had several priorities to maintain and revitalize the neighborhood within the Neighborhood Revitalization Strategy Area (CDBG target area) of the City. The CDBG target area is within census tracts 5126.03, 5126.04, and 5126.06 (see Map 1). Prior to the award of public service and housing rehabilitation funds, the City created the Community and Neighborhood Revitalization Committee (CNRC) to aid in the rating and review process of applications submitted by nonprofit agencies for CDBG and HTF grants. At the start of 2020, the CNRC was replaced by the Housing and Neighborhood Revitalization Committee (HNRC), which will continue the rating and review process previously conducted by the CNRC. Over the course of the 2015-2020 five-year Consolidated Plan, the City’s goals included: 1. providing technical assistance to developers producing affordable rental housing 2. overseeing the Housing Element implementation 3. providing affordable homeownership opportunities a. supporting efforts such as the Residential Development Ordinance Exemption Procedure, which requires market-rate developers to also build below market-rate housing within certain zoning districts 4. providing homebuyer education programs 5. providing housing rehabilitation funds to low-income homeowners 8.A.a Packet Pg. 135 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 7 a. The Rebuilding Home Repair program and Rehabilitation and Accessibility Modification program aim to address health/safety issues, code corrections and accessibility issues , with preference given to eligible households in the CDBG target area 6. providing housing for the homeless; the City will support the efforts of developers of transitional and supportive housing facilities through technical assistance, as well as their applications for state and federal funding. The City will utilize any HOME funds for which they qualify, for this purpose. 7. funding housing, services, supportive services, and basic needs for homeless persons 8. providing emergency rental assistance to prevent homelessness 9. supporting job training programs for homeless persons 10. supporting of basic need services for special needs populations and LMI households – fund social service organizations 11. supporting services for special needs populations and homeless 12. supporting youth activities 13. supporting code enforcement services to eliminate blight in the neighborhood revitalization strategy area 14. funding landlord/tenant mediation 15. supporting capital improvements in the CDBG target area 16. mitigating lead-based paint hazards 17. promoting fair housing choice 18. conducting fair housing zoning 19. conducting analysis of impediments 20. conducting workforce development 21. conducting small business development 22. conducting neighborhood revitalization strategy Below are the accomplishments during the 2015-2020 five-year Consolidated Plan period. Affordable Housing  Goal 1 - During the 2015-16 program year, Gilroy staff worked with KB homes to facilitate the sale of BMR units at its Oak Place development.  Goal 5 – 50 low-income homeowners received rehabilitation services to their home for health and safety issues. These health and safety issues, if unaddressed, could have led to their homes becoming unhealthy and uninhabitable. This goal was exceeded by 10 households (125 percent). Homelessness  Funding was provided from both CDBG and the City’s local HTF to the Gilroy Compassion Center to assist the following individuals: o Goal 8 - 686 persons received emergency rental assistance to prevent homelessness. o Goal 11 - 308 persons received supportive services. o Goal 9 - 15 persons received job training. o Goal 10 - 826 homeless and non-homeless persons with special needs received basic need services. 8.A.a Packet Pg. 136 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 8 o Goal 7 - 511 persons received additional services. Special Needs Households  Goal 11 - 103 domestic violence survivors and their children received emergency shelter and supportive services.  Goal 11 - 107 youth received free swim lessons through the City’s Aquatics Program, allowing them to learn water safety following the American Red Cross curriculum. Non-housing Community Development  Goal 13 - 187 foreclosed properties were maintained through the Housing Code Enforcement Enforcement/Foreclosed Property Care program in the NRSA area, which aims to curb deterioration. This exceeded the goal of 100 properties (187 percent).  Goal 17 - 117 residents received services regarding fair housing choice.  Goal 18 - 1,049 residents received landlord/tenant mediation services .  Goal 20 - 124 residents participated in workforce development.  Goal 12 - 822 youth received services at the youth center program .  Goal 16 - sidewalk gaps were repaired, and curb ramp improvement project was completed.  Goal 20 – the workforce development program was funded.  Goal 22 - trailway improvements were made at Las Animas Park.  Goal 22 - park enhancements were completed at San Ysidro Park, including a new internal pathway and new LED lighting to improve safety in and around the park . Fair Housing Goal 17 - 59 persons received fair housing services to increase fair housing choice . 4. Summary of citizen participation process and consultation process The City participated in a collaborative; countywide public engagement effort guided by the County of Santa Clara Community Engagement Plan. Robust community engagement was achieved through engaging a diverse group of stakeholders to identify priorities, concerns, and values. The feedback received through the community engagement process supported the development of this plan, including defining housing and community development needs, priorities, goals, and strategies to stipulate how funding will be allocated. Targeted outreach was provi ded to youth, elderly, racial/ethnic groups, residents and property owners, and business owners across the County. The City and County collaborated with existing stakeholders to leverage their contacts to ensure a broad depth of participation from these pr iority groups. The City and County offered a variety of engagement opportunities including small group meetings, an online survey, pop-up events, and regional community meetings. Community engagement opportunities were announced through Twitter, Facebook, and Instagram posts, and email. The following opportunities for participation and comment were offered throughout Santa Clara County through the Consolidated Plan Process: 8.A.a Packet Pg. 137 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 9  Regional Community Engagement Public Meetings: Regional walk-in meetings were held at four different locations across the County (Morgan Hill, Cupertino, Palo Alto, and San Jose). Interactive engagement stations created opportunities to share personal stories, suggest ideas for strengthening neighborhoods, prioritize community needs, and review Consolidated Plan data and maps.  City-hosted Community Meetings: Similar in format to the regional meetings, Gilroy hosted a community meeting to receive feedback specific to the City.  Stakeholder Focus Groups: Focus groups with six to ten attendees from target populations, including persons with disabilities, racial/ethnic groups, elderly, low-income families, and other targeted populations as discovered through preliminary data research.  Pop-Up Events: Structured for short interactions, the pop-up events usually took the form of a booth at an event to allow access with a specific stakeholder group. Feedback from pop -up events was typically collected through interactive exercises (dot votes, etc.) or verbal responses to big picture questions.  City Council and Board of Supervisor Meetings: Announcements or workshops were added to the agenda of regularly scheduled public meetings and hearings, including City Council meetings or the Board of Supervisors meeting.  Online Feedback Collection (Survey and Form): To broadly access a large number of geographically distributed stakeholders, an online survey was prepared to efficiently obtain feedback for this plan. The survey included specific and open-ended questions about the public review draft and provided an opportunity to leave additional, relev ant comments. The survey was announced through City media outlets and was also disseminated through key community liaisons or stakeholders with access to resident and community groups, business owners, interest groups, etc. A detailed summary of community engagement, including participation, methods, and feedback, can be found in sections PR-10 (Consultations) and PR-15 (Citizen Participation) of this Consolidated Plan. 5. Summary of public comments See above regarding specific community engagement efforts us ed to collect public comments. Each group discussed priorities and needs for the City as well as ideas and recommendations (solutions) to help solve some of the City’s more pressing concerns. This section summarizes the efforts of the community to be heard regarding this five-year plan. These comments can also be found through various sections of the Consolidated Plan. Target Areas  East Gilroy and Glenview neighborhoods  Downtown Gilroy, 1st to 10th Streets on Monterey Boulevard Affordable Housing Top priorities  add units of affordable housing through housing rehabilitation and new housing construction  address the lack of housing diversity and options  convert larger dwellings to multiple units  allocate City lands for housing developments  support rehabilitation for healthier homes (free of mold, lead, etc.) 8.A.a Packet Pg. 138 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 10 Needs  expand affordable rental housing inventory  increase healthy homes (free of mold, lead, etc.)  create less expensive starter homes  create diversity of housing types, i.e., variety of si zes and income levels, particularly for extremely low- and very low-income and special needs populations  provide more homeownership opportunities  develop both affordable and market-rate housing  resolve land issues, so developments can be built  transitional housing to permanent housing gap reduced  amend zoning code to allow for housing alternatives  develop more middle-income housing, something between apartments and luxury homes Solutions  increase accessory dwelling units for special needs populations, p articularly people with disabilities  create affordable housing zoning  create grant or loan programs for property maintenance  City works with developers to target specific lands  increase funding for rental subsidy programs  City connects with rent affordability resources such as grants and loans  collaborate with other organizations to reach solutions  build more housing for the “missing middle,” housing for middle income, between apartments and luxury homes  change zoning laws to allow tiny homes, particularly for agricultural workers and transitioning youth Homelessness Top priorities  create more emergency solutions, including transitional housing  create homelessness prevention programs including education and job/housing placement  add more shelter space  improve interim housing and services options  add funding for staff salaries  create permanent housing  create job training programs for people who are homeless 8.A.a Packet Pg. 139 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 11 Needs  increase in permanent supportive housing  support for transitioning homeless, i.e., financial, medical, and social  support is needed for those at risk of homelessness due to high cost of living; e.g., college students, former homeless, those who cannot afford to live alone, and those with a criminal history. Once this population loses their current housing, it is very difficult to find a new housing unit  decrease family displacement  create an inclusive Anti-Homeless Strategy, particularly including special needs populations  increase social service entities to handle hom elessness issues  more provider staff – high turnover rates within provider agencies  additional County resources – resources are strained  increase communication between CoC, County, and service providers  let homeless know what services are available  have a less complex system to house the homeless within the County  no food in certain areas of the County  more housing units for transitional housing, permanent supportive housing, rapid re -housing programs Solutions  create viable alternative temporary housing options for homeless, e.g., tiny homes  create a resource navigation center for all social service agencies to use  provide appropriate training for intake staff (navigators) that includes a variety of individual needs  increase communication on needs, gaps, and accomplishments  create nutrition programs, cooking instruction, and food delivery assistance where homeless exist  provide safe parking areas for unsheltered homeless populations with vehicles and RVs  develop a comprehensive wrap-around services program for a variety of social service organizations to use  increase the number of shelters in the City  greater communication and integration of social service entities  update County resource guides and websites that point to the right agency – the resources could be listed by “need” and include contact with address and email  prepare a list of the probable food desert areas and collaborate with service entities that can provide routine nutrition and food delivery service  create and/or expand food storage spaces  work with local grocers to create secondary outlets in designated food deserts  provide food subsidies to individuals with chronic health issues, particularly those at risk (drug/alcohol/chronic health conditions) and those under 60 where other organizations cannot provide services 8.A.a Packet Pg. 140 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 12  increase transitional housing, rapid re-housing units, and services  create program for those at imminent risk of homelessness – serve residents that can no longer afford to remain in their homes (due to rising housing bills, rents or property taxes, or when residents are forced out due to causes such as eminent domain, lease non-renewals, and or mandatory evictions to make way for new development)  County and its cities should create displacement policies when new (re)development is occurring  create County-driven transitional housing programs and services, and rainy-day funds for LMI households (most LMI families are at risk for homelessness). Special Needs Households Top priorities  increase programs for housing rehab and housing maintenance to keep residents in their homes  create services for special needs populations – particularly single-income families, elderly, persons with disabilities, and homeless youth  improve health and safety – particularly mental health options for low-income families  create affordable housing that includes supportive services for special needs populations  improve assistance programs for persons with disabilities Needs  housing for special needs individuals (i.e., elderly, persons w/disabilities)  an increase in services for victims of domestic violence  services for immigrants new to the City, particularly housing assistance  employment services for special needs populations  decrease language barriers  more elderly (aging) services  services to help the increase of at-risk youth  aid persons with disabilities in finding housing Solutions  create subsidies or prevention programs for families at risk of displacement  increase earning capacity of the LMI City residents  stabilize rent costs  increase funding for more training for counseling and referral personnel  increase funding for services for victims of domestic violence  services that help families with credit establishment and rental history for housing placement  provide community ESL courses  establish funding assistance for elderly care and housing  provide traveling classes that engage elderly persons in technology 8.A.a Packet Pg. 141 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 13  create nutrition programs and food delivery assistance to hom ebound elderly persons  housing and employment assistance for foster care youth who age out of system  create housing units for elderly/disabled by providing elevators, at-grade front entrances or first floor bedrooms, and housing units with ADA-accessible kitchens and bathrooms  provide separate emergency shelter space for transition age youth  create safe spaces for foster youth Non-Housing Community Development Top Priorities  revitalize older City infrastructure, particularly accessibility for elderly persons and persons with disabilities  create higher paying jobs in the City so residents can work where they live  create and maintain enough youth centers and services in the City  create and maintain enough mental health care facilities and services in the City  create and maintain enough homeless facilities and services (temporary housing and emergency shelters)  create and maintain enough healthcare facilities  create and maintain enough education facilities  create and maintain enough facilities and services for children who are abused, abandoned and/or neglected  employment training services  veteran services  crime awareness/prevention services  neighborhood cleanups (trash, graffiti, etc.)  street improvements  cleanup of contaminated sites Needs  recreation and open spaces  more accessible neighborhoods  clarification on fair housing laws  downtown renovation  creeks and trails cleanup  streets to be repaired  infrastructure to be built along with new housing and businesses, i.e., proper streets, stop signs, lighting  alley cleanup and pavement repair 8.A.a Packet Pg. 142 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 14 Solutions  private sector funding for City or service programs  subsidized auto repair and medical services  job training for young farmers, i.e., education and support for new ag technologies  create or revitalize neighborhoods with new housing and needed amenities including parks, lighting, and good infrastructure o particularly on the east side – a dog park and water feature were promised  update city accessibility – wheelchair ramps, bathrooms, curbing, sidewalks, handrails  hire Project Sentinel to hold a public forum on fair housing  designated campground or tiny home village for the homeless  drop-in care center for persons with dementia  enforcement of vagrancy and littering laws  hire additional public safety personnel  enforce City traffic laws Broadband Needs Top Priorities  bring more access to the City; only one trunk line exists, so if there is a shutdown, the whole City goes out  technology education for elderly persons Needs  more options other than Spectrum  high speed/affordable access  more competitive prices  internet in more rural areas, for those that live on larger lots  better cell phone coverage; many are doing away with landlines and cell coverage is slow  high speed access for all Solutions  introduction of more providers  add more towers  add more satellites  add fiber  add the infrastructure needed  expand to urban areas  faster internet for rural areas  City facilities should provide free internet access 8.A.a Packet Pg. 143 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 15  free internet access throughout the City  build new affordable housing wired for low-cost Wi-Fi, particularly the elderly  fund computer hardware and software upgrades in schools Hazard Mitigation Top Priorities  flood and fire insurance assistance for people cannot afford it due to a past crisis  campgrounds for displacement assistance  creating City policies around emergency/natural disaster preparedness  identify where vulnerabilities in the community or neighborhood exist, so they can be assisted first o determine specific needs – mobile homes parks are particularly at risk o basic needs such as food and water will need to be provided o interpreters will need to be provided, particularly Spanish  engage in post-disaster planning, particularly for family displacement, housing, food and health needs; create places to park vehicles owned by displaced families  engage in outreach to the community to hold preparedness classes, particularly to vulnerable households Needs  create services to replace household basics Solutions  create a rapid emergency grant program that fills the gap between government aid and insurance for LMI households  create programs to rehabilitate properties that experience frequent damage from disasters  create programs that fund LMI homeowners’ rebuilding projects  create more County-driven emergency management employment opportunities and positions 6. Summary of comments or views not accepted and the reasons for not accepting them The City did not receive any public comments that were not accepted. The City attempted to incorporate feedback received from outreach efforts throughout the Consolidated Plan. 7. Summary This 2020-2025 CDBG Consolidated Plan combines demographic data, community engagement responses, community stakeholder involvement, consideration of countywide goals and policies, and City staff’s coordination and communication with community entities and resources. The plan uses each of these factors to accurately develop a list of the City’s needs and priorities, particularly regarding the most vulnerable of populations and locations. Additionally, the Consolidated Plan is used to meticulously depict the most effective strategic approaches to the allocation of CDBG funds for the next five years. 8.A.a Packet Pg. 144 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 16 During the 2020-2025 time frame, this plan will guide the City toward swift, yet appropriate al locations of its CDBG funds. These funds will focus on developing safe and healthy neighborhoods by providing decent housing, a suitable living environment, and expanding economic opportunities for persons of low and moderate incomes through improvement of public spaces, prevention and elimination of dilapidated conditions, and increased access to public facilities and social/community services in the City. 8.A.a Packet Pg. 145 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 17 THE PROCESS PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) 1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. The City of Gilroy Community Development Department is the agency responsible for preparing the Consolidated Plan and administering the City’s Community Development Block Grant (CDBG), as shown in Table 1. Agency Role Name Department/Agency CDBG Administrator City of Gilroy Community Development Department Table 1 – Responsible Agencies Narrative Lead and Responsible Agency The City of Gilroy (City) is the lead and responsible agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Gilroy. The Housing Division (HD), a division of the City’s Community Development Department, is responsible for administering the City’s CDBG program. Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. By federal law, the City is required to submit a five-year Consolidated Plan and Annual Action Plan to HUD listing priorities and strategies for the use of its federal funds. The Consolidated Plan helps local jurisdictions assess their affordable housing and community development needs and market conditions to meet the housing and community developmen t needs of its populations. As a part of the Consolidated Plan process for 2020-2025, the City has collaborated with the County of Santa Clara (County) as the Urban County representing the Cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga; seven entitlement jurisdictions of the Cities of Gilroy, Cupertino, Mountain View, Palo Alto, Sunnyvale, San Jose, and Santa Clara; and the Santa Clara County Housing Authority (SCCHA) to identify and prioritize housing and community development needs across the region, and to develop strategies to meet those needs. Consolidated Plan Public Contact Information Sue O’Strander, Deputy Director 7351 Rosanna Street Gilroy, CA 95020 408-846-0451 Sue.Ostrander@CityofGilroy.org http://www.ci.gilroy.ca.us/282/Consolidated-Plan 8.A.a Packet Pg. 146 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 18 PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and 91.315(I) 1. Introduction The Consolidated Plan outreach effort is a regional collaborative effort between the County of Santa Clara and seven entitlement jurisdiction cities. The County hired Michael Baker International, in partnership with Circlepoint, to assist them in their community engagement efforts. Community engagement is key for helping the County and cities to identify needs, priori ties, goals, strategies, and activities for future housing and community development activities over the period of the five -year regional plan. Engagement activities included a community survey, public outreach, stakeholder consultations (or meetings), focus groups, and pop-up events. As a part of the stakeholder consultation process, the City consulted with a variety of stakeholders, including City departments, human service agencies, local and regional community-based organizations, housing providers and advocates, and the Santa Clara County Housing Authority (SCCHA). Social service providers were also consulted, including those that provide services to the elderly, persons with disabilities, homeless persons, and other lower-income individuals and at-risk populations. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)). The City works in coordination with many agencies, boards, and governmental entities with the intent of enhancing access to services, learning best practices of activities that would aid the City in developing strategies to meet established goals of providing decent and aff ordable housing, providing a suitable living environment, and expanding economic opportunities. Additionally, the City brings its knowledge and experience as a designee of the Neighborhood Revitalization Strategy Area program to said coordinated activities. The City’s participation includes:  CDBG/Housing Regional Coordinators Meetings – City staff and staff from the other CDBG entitlement cities in Santa Clara County, the County of Santa Clara Office of Supportive Housing, and the SCCHA participate. o These meetings discuss data resources and strive to coordinate requests for information to both public and private countywide agencies. o HUD staff meets with this group to clarify issues and assist in providing ongoing programmatic technical information. o The email listserv for this group enables members to share information and provide technical assistance to one another, thus promoting and creating an environment of cooperation and understanding of differing needs, concerns, and issues among the group. Thi s expansion of knowledge of regional issues and sharing of information benefits each individual jurisdiction represented in the group.  South County Collaborative – Partners with the collaborative, which consists of providers of services to low-income and special needs residents of Gilroy, San Martin, and Morgan Hill. o The collaborative is a nonprofit organization and is able to apply for funding benefitting the communities it serves. o Collaborative members share information through an active listserv and receive notices of public comment periods on the Annual Action Plans and Consolidated Annual Performance and Evaluation Reports. 8.A.a Packet Pg. 147 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 19  Gilroy Police Department – Attends meetings hosted monthly that include representatives from the County of Santa Clara, staff from various nonprofit agencies, health workers, the Santa Clara Valley Water District, and faith-based organizations, as well as individual volunteers. o The focus is on identifying resources and sharing specific information about homeless individuals who have been identified by the police and outreach workers as being ready to get off the streets or who are in particularly dire need. o The sharing of information and resources also has as a goal of conserving resources such as police time spent in rearresting the same homeless person multiple times.  Measure A Bond Board – Attends board meetings for Measure A, which was passed by voters in 2016. Measure A is an affordable housing bond that will provide nearly a billion dollars over ten years to support affordable housing throughout the county.  Continuum of Care (CoC) Participation – Meets monthly with a group comprising governmental agencies, homeless service and shelter providers, homeless persons, housing advocates, affordable housing developers, and various private parties, including businesses and foundations, to identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness. o A Community Plan Implementation Team, which includes members of the CoC and o ther community stakeholders, meets quarterly to evaluate progress toward the Community’s Plan to End Homelessness. o During the development of its Consolidated and Annual Plans and as a general practice, the City coordinated with a variety of housing agencies, public and mental health agencies, and service providers to discuss community needs. These discussions provided an opportunity for these entities to network and learn more about one another’s services and programs. Moreover, their collective feedback was especially valuable in gathering information and shaping priorities for this Plan as it relates to special needs populations, general health, and mental health services in the City of Gilroy and the County of Santa Clara. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Santa Clara County Office of Supportive Housing is the administrator of the regional CoC. The City continuously coordinates with the Santa Clara County CoC to end and prevent homelessness in the City and County. City staff attends monthly meetings. The Santa Clara County CoC is a group comprising stakeholders throughout the County, including governmental agencies, homeless service and shelter providers, homeless persons, housing advocates, affordable housing developers, and various private parties, including businesses and foundations. The CoC is governed by the CoC Board, which takes a systems -change approach to preventing and ending homelessness. This CoC Board is composed of the same individuals who serve on the Destination: Home Leadership Board. Destination: Home is a public -private partnership that is committed to collective impact strategies to end chronic homelessness. Destination: Home is the governing body for the CoC and is responsible for implementing bylaws and operational protocols of the CoC. Regional efforts of the CoC include the development of The Community Plan to End Homelessness, which identifies strategies to address the needs of homeless persons in the County, including chronically homeless individuals and families, families with children, veterans, and unacco mpanied youth. The plan also addresses the needs of persons at risk of homelessness. The CoC is now in the process of updating a new plan for the next five years and the City plans to participate in these efforts. Also, during the development of this Consolidated Plan, the City consulted both the CoC and County Office of Supportive Housing for their expertise and experience in identifying community needs. 8.A.a Packet Pg. 148 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 20 Service providers and organizations that provide services to homeless persons and persons at risk of homelessness were also contacted by the City to attend the Consolidated and Annual Action Plan engagement meetings. This included Destination: Home, the policy group that works on homeless ness prevention and strategies to end homelessness; Eden Housing, a h omeless service provider that provides permanent supportive housing in the City; and City of Gilroy Recreation Department, which provides swimming lessons to low-income households. Describe consultation with the Continuum(s) of Care that serves the jurisdi ction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS. The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that provide assistance to homeless and low-income families in Santa Clara County. The City also helps fund and conduct the Point-in-Time (PIT) count, the biennial regional collaborative effort to count and survey homeless persons. The latest count and survey were conducted in January 2019. The data from the PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness. The Santa Clara County Continuum of Care takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many city service providers across the region to record information and report outc omes. The software meets and exceeds HUD’s requirements for the implementation and compliance of HMIS Standards. The project has a rich array of service provider participation and is utilized to capture information and report on special programming, such as Housing 1000, the County VTA free bus pass program, and prevention service delivery. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities. 1 Agency/Group/Organization Boys & Girls Club Agency/Group/Organization Type Children and Youth Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the Santa Clara focus group meeting on 11/7/19. The agency’s top priority is improved coordination of youth and education programs. 2 Agency/Group/Organization Healthier Kids Foundation Agency/Group/Organization Type Children and Youth Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the Santa Clara focus group meeting on 11/7/19. The agency identified that the lack of financial support efforts is the most pressing housing problem. 3 Agency/Group/Organization Bill Wilson Center Agency/Group/Organization Type Children and Youth Services Family Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan 8.A.a Packet Pg. 149 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 21 How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the Santa Clara focus group meeting on 11/7/19 as well as community meetings on 11/4/19 in Morgan Hill and 11/20/19 in San Jose. The agency identified mental health services for low-income communities as a high priority. 4 Agency/Group/Organization Community Services Agency Agency/Group/Organization Type Senior Services Community / Family Services and Organizations Cultural Organizations What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation conference call meeting on 11/15/19. The agency identified a need for diverse types of affordable housing and improved transportation. 5 Agency/Group/Organization San Jose Conservation Corps Charter Agency/Group/Organization Type Education Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the Gilroy focus group meeting on 11/18/19. The agency provided insight into solutions for homelessness, such as transitional housing, zoning changes, and tiny homes. 6 Agency/Group/Organization CommUniverCity San Jose Agency/Group/Organization Type Education Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation conference call meeting on 11/25/19. The agency attended a regional forum meeting in San Jose on 11/20/19. The agency identified children’s education and care as a priority need. 7 Agency/Group/Organization Health Trust Agency/Group/Organization Type Health Services, HIV/AIDs Services, Disabled Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation meeting on 11/21/19. The agency identified flexibility in funding mechanisms as a need to make affordable housing more attractive to developers. 8 Agency/Group/Organization Rebuilding Together (Silicon Valley) Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan 8.A.a Packet Pg. 150 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 22 How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation conference call meeting on 11/21/19. The agency identified funding for home rehabilitations as a high priority over the next five years. 9 Agency/Group/Organization Servant Partners Agency/Group/Organization Type Neighborhood Organization What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the community meeting on 11/13/19 at the Hillview library. The City will continue to consider Servant Partners as a resource in addressing the City’s needs. 10 Agency/Group/Organization Senior Adults Legal Assistance (SALA) Agency/Group/Organization Type Fair Housing and Legal What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the Palo Alto public engagement meeting on 11/17/19; the San Jose public engagement meeting on 11/19/19; and the regional forum meetings on 11/4/19 in Morgan Hill and 11/7/19 in Palo Alto. The City will continue to consider SALA as a resource in addressing seniors’ needs. 11 Agency/Group/Organization HomeFirst Agency/Group/Organization Type Homeless Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Morgan Hill on 11/4/19. The City will continue to consider HomeFirst as a resource in addressing homeless needs. 12 Agency/Group/Organization Rebuilding Together Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the San Jose Regional forum meeting on 11/20/19. The City will continue to consider Rebuilding Together as a resource in addressing rehabilitation needs. 13 Agency/Group/Organization Heart of the Valley Agency/Group/Organization Type Senior Services What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted through interview questions covering a range of issues such as community needs, areas in need of neighborhood revitalization, housing needs, low-moderate income vulnerabilities, and CDBG and HOME funding priorities. The agency provided emailed feedback. 14 Agency/Group/Organization Santa Clara County Office of Supportive Housing 8.A.a Packet Pg. 151 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 23 Agency/Group/Organization Type County Government and Continuum of Care What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Morgan Hill on 11/4/19. The City will continue to consider the Office of Supportive Housing as a resource in addressing homeless needs. 15 Agency/Group/Organization Santa Clara County Department of Planning and Development Agency/Group/Organization Type County Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Morgan Hill on 11/4/19. The City will continue to consider the County Department of Planning and Development as a partner in addressing the needs of the City. 16 Agency/Group/Organization City of Cupertino Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended a regional forum meeting and provided feedback. The City will continue to consider the City of Cupertino as a partner in addressing the needs of the County. 17 Agency/Group/Organization City of Mountain View Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Palo Alto on 11/7/19. The City will continue to consider the City of Mountain View as a partner in addressing the needs of the County. 18 Agency/Group/Organization City of Palo Alto Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Palo Alto on 11/7/19 and provided emailed feedback. The City will continue to consider the City of Palo Alto as a partner in addressing the needs of the County. 19 Agency/Group/Organization City of Gilroy Recreation Department Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted and provided emailed feedback. The agency provided feedback into problems faced by the residents of the City of Gilroy. 20 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan 8.A.a Packet Pg. 152 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 24 How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The City of San Jose was contacted for consultation. The City will continue to consider the City of San Jose as a partner in addressing the needs of the County. 21 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The City of Santa Clara was contacted for consultation. The City will continue to consider the City of Santa Clara as a partner in addressing the needs of the County. 22 Agency/Group/Organization City of Morgan Hill Agency/Group/Organization Type Local Government What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the regional forum meeting in Morgan Hill on 11/4/19. The City will continue to consider the City of Morgan Hill as a partner in addressing the needs of the County. 23 Agency/Group/Organization Vista Center for the Blind and Visually Impaired Agency/Group/Organization Type Disabled What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation via audio meeting on 12/9/19. The agency identified accessibility to City services and clearer grant application measures as priority needs. 24 Agency/Group/Organization Destination: Home Agency/Group/Organization Type Homeless Services (strategic initiatives) What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the stakeholder consultation via telephone meeting on 11/11/19. The agency identified that building more housing for the extremely low-income population and homelessness prevention are priority needs. 25 Agency/Group/Organization Community Solutions Agency/Group/Organization Type Domestic Violence What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the AFH and Consolidated Plan joint meeting on 12/11/19 at the Gilroy Council Chambers. The City will continue to consider Community Solutions as a resource in addressing the needs of the City. 26 Agency/Group/Organization St. Mary’s Parish Agency/Group/Organization Type Neighborhood Organization What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan 8.A.a Packet Pg. 153 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 25 Table 2 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting . Not applicable. No agency types were intentionally left out of the consultation process. Over 20 agency types were contacted to participate. Other local/regional/state/federal planning efforts considered when preparing the Plan. Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care, Community Plan to End Homelessness in Santa Clara County 2015-2020 Continuum of Care Council Identifies housing inventory count to facilitate the provision of housing services to those experiencing homelessness. 2017 HIV Epidemiology Report County of Santa Clara Santa Clara County Department of Public Health Identifies high-risk populations and plans for reducing HIV diagnoses with increased testing and access to PrEP. Regional Housing Need Plan for the San Francisco Bay Area Association of Bay Area Governments Plans for the number of housing units necessary to accommodate the existing and forecasted population. City of Gilroy General Plan, Housing Element City of Gilroy Determines physical conditions of housing that affect habitability. Identifies the number of affordable units that need to be allocated to households with different income levels. Gilroy has areas disproportionately impacted by environmental justice issues, which have been How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency attended the AFH and Consolidated Plan joint meeting on 12/11/19 at the Gilroy Council Chambers. The City will continue to consider St. Mary’s Parish as a resource in addressing the needs of the City. 27 Agency/Group/Organization Housing Advisory Committee (HAC)- Gilroy Agency/Group/Organization Type Local Government community advisory group What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency cohosted the AFH and Consolidated Plan joint meeting on 12/11/19 at the Gilroy Council Chambers. This group has now been consolidated with the CNRC into the HNRC, which will continue to serve the community in an advisory role to the Housing Division. 28 Agency/Group/Organization Community and Neighborhood Revitalization Committee - Gilroy Agency/Group/Organization Type Local Government community advisory group What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? The agency cohosted the AFH and Consolidated Plan joint meeting on 12/11/19 at the Gilroy Council Chambers. This group has now been consolidated with the HAC into the HNRC, which will continue to serve the community in an advisory role to the Housing Division. 8.A.a Packet Pg. 154 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 26 Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? deemed by the US Environmental Protection Agency (EPA) as part of an Equity and Engagement District. Planning and decision- making community engagement efforts are in process, which will be included in the 2040 Gilroy General Plan. SCCHA Moving to Work Annual Plan Santa Clara County Housing Authority Addresses housing authority updates and strategies pertaining to public housing and vouchers. Table 3 – Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolid ated Plan (91.215(l)) The collaborative implementation of this Consolidated Plan over the course of the next five years begins with the coordinated efforts of multiple public agencies working together to gather feedback and information for both regional and local community needs and priorities. Once needs and priorities are identified, they are incorporated into County- and City-level consolidated plans that form both regional and local strategies for addressing those needs and priorities. The entitlement grantee jurisdictions involved in the collaborative outreach efforts are as follows: City of Cupertino, City of Gilroy, City of Mountain View, City of Palo Alto, City of San Jose, City of Santa Clara, and City of Sunnyvale. Several other government stakeholder agencies were contacted and assisted the City in its efforts to gather feedback. Furthermore, community outreach to local leaders, stakeholders, and residents is a critical first step in implementing this plan’s desired community changes. By successful ly establishing relationships and trust between the government, those providing services or community improvements, and the beneficiaries of these services or improvements, the City and community can move toward a joint vision for what and how to make community improvements. The City along with County and six other entitlement jurisdictions developed a robust community engagement process that involved an online and paper community survey, stakeholder consultations, focus groups, and pop-up events. The agencies, groups, and organizations who participated are listed in Table 2. Other local/regional/federal planning efforts can be found in Table 3. In addition, the City attends the Santa Clara County quarterly informational sharing meeting on the CDBG program implementation, which discusses best practices, new developments, and local and federal legislative changes. A HUD representative is also usually in attendance and provides brief federal grants management technical information. Narrative (optional): The City, the other entitlement jurisdictions, and the County participated in a joint regional effort to conduct consultations and public outreach. City and County staff, with assistance from consultants, worked to involve housing, social service, and other agencies in the community engagement process, including direct solicitation for these agencies to participate in the community survey, stakeholder meetings, and focus groups. Stakeholder participants were asked questions and provided feedback on priorities, issues, and solutions in relation to CDBG-eligible activities such as housing, neighborhood revitalization, and low - to moderate- income household issues. They were asked about their top priorities, neighborhood revitalization, housing problems and their solutions, local organization support, families vulnerable to crisis, broadband internet issues, and how the jurisdiction should spend CDBG funding. Appendix Community Engagement Summary contains a sample of the consultation questions. 8.A.a Packet Pg. 155 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 27 The responses were very helpful for the Needs Assessment and Strategic Plan, to analyze alongside data from the census and HUD, especially for topics pertaining to housing needs, homeless needs, non - homeless special needs and services, and community development needs. For a more extensive list of agencies and other public entities consulted during the Consolidated Plan process, please see Table 2. PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c) 3. Summary of citizen participation process/Efforts made to broaden citizen participation. Summarize citizen participation process and how it impacted goal- setting. Outreach is essential to the City’s ability to create an accurate and effective plan, and to allocate resources appropriately. First, the City attempted to reach as many residents as possible within the CDBG target areas and within specific demographics, such as low-income families, disabled persons, elderly persons, and families with minor children. Receiving feedback directly from residents who may potentially receive assistance from grant funds is crucial for the CDBG program’s effectiveness. Second, the City reached out to practitioners, agencies, leaders, organizations, and companies who may have the specialized knowledge, experience, resources, and c apacity to discuss needs, opportunities, solutions, investments, and how community improvements can be made. Third, the City encouraged all residents to weigh in on community needs and opportunities for improvements through resident participation opportunities. The City offered several opportunities and various methods for participation and public comment throughout the development of the Consolidated Plan. The following is a summary of the efforts made to broaden resident participation through the Consolidated Plan process. Table 4, Citizen Participation Outreach, provides additional detail on the types of outreach conducted and, where applicable, a summary of the comments received. Regional Needs Survey This community survey was noticed in the Mercury News newspaper on October 29, 2019. The online and paper survey was made available to the public between October 29, 2019, and December 20, 2019. The online survey was provided in three other languages besides English: Spanis h, Vietnamese, and Chinese. The data from this survey was useful in obtaining community feedback on local data, housing needs, and community needs. A copy of the survey, along with the final results, can be found at the end of the document under Appendix Community Engagement Summary. Pop-Up Events Pop-up events are temporary events held in public areas. Pop -up events are useful in providing the public with general information and awareness of the Consolidated Plan process and engaging community members with the community survey. Short dialogue and feedback were also obtained from members of the public. Four pop-up/tabling events were held throughout the County. Three were held in the following farmer’s market locations: Santa Clara, Sunnyvale (two), and Palo Alto. Residents were polled on what was most needed in their community. The dates and locations are listed in more detail in Table 4. Flyers announcing community engagement meeting dates and locations were distributed. Regional Forums Four regional forums were held in different cities in Santa Clara County. Flyers were posted beforehand to inform the public of the meetings. They were also advertised in the local Mercury News newspaper. In 8.A.a Packet Pg. 156 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 28 order to maximize the attendance and allow more people to attend, they were offered at different locations and times of the day. One meeting was held during the day and the rest were held in the evening and all were accessible by public transit. They were held in the Cities of Morgan Hill, Palo Alto, Cupertino, and San Jose. Additional information on the locations and results are listed in more detail in Table 2. Additionally, Appendix Community Engagement Summary has a flyer of the public meetings listed. A total of 37 people attended these forums. Those in attendance included local residents, service providers, and members of the business community. The notes and feedback were helpful in identifying priorities, creating a dialogue with the attendees, and gaining input from stakeholders and the public. Focus Groups Two focus groups were held with social service agencies to identify the most pressing community problems, priorities for their clients, and problem areas around the County. These meetings were held in Santa Clara and Gilroy. A total of seven agencies participated. Results of their feedback are provided in more detail in Appendix Community Engagement Summary. Joint Community Meetings on Consolidated Plan Process and Assessment of Fair Housing Two community meetings were held to seek input on the Consolidated Plan and Assessment of Fair Housing. One was held at the San Jose Hillview Library and the other at Gilroy Council Chambers. They were both held in the evening and accessible by public transit. Additional information on the results are listed in more detail in Table 4. Stakeholder Consultations A combination of in-person meetings, one-on-one phone conversations, and emails were used as consultations with a variety of service providers to obtain feedback. The feedback was especially helpful in identifying gaps in services, trends in the local community, and needs relating to specific services and populations. The list of agencies that provided feedback is included in Table 2. A sample list of questions that that were asked during the stakeholder interviews can be found in Appendix Community Engagement Summary. Public Hearings and 30-Day Public Review Period of Draft Consolidated Plan The City Council will hold a public hearing on April 6, 2020 to review the draft Consolidated Plan and on May 4, 2020, to review and approve the final plan. The City posted notice of the public hearings and draft Consolidated Plan on DATE. The 30-day public review period began on DATE and ended on DATE. Citizen Participation Process Impact on Goal Setting Comments and feedback obtained from the resident participation process are very useful in goal setting and strategic planning as they relate to the Consolidated Plan. For example, the comments received from stakeholders provided feedback for the Needs Assessment in the Consolidated Plan especially in sections concerning special needs populations and non-housing community development. The results from the survey and comments provided by the public also helped identify high areas of concern among the community especially as related to local data, housing, public services, and community development needs. The feedback was especially helpful in assessing the priority needs and goal setting for the Strategic Plan section of the Consolidated Plan. The responses obtained from community engagem ent were also helpful in providing more insight into barriers to affordable housing, priority needs, and areas needing the most neighborhood revitalization. 8.A.a Packet Pg. 157 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 29 Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response / attendance Summary of comments received Summary of comments not accepted and reasons URL (if applicable) 1 Regional Forums Non-targeted/ Broad community residents, service providers, business owners or housing professionals. A total of 37 people attended four forums held on the following dates: 11/4/19, 11/7/19, 11/12/19, and 11/20/19. Participants of the regional forums identified the County’s top priorities over the next five years, including transit accessibility, housing maintenance, and services for elderly residents. They also identified the most common housing problems, including housing affordability and homelessness. For additional details see Appendix Community Engagement Summary. All comments were accepted. See Appendix Community Engagement Summary 2 Survey Broad community outreach to members of the public and interested stakeholders. A total of 1,950 Regional Needs Surveys were collected during the open period, 512 of which were collected for Gilroy. The online survey was available in English, Spanish, Vietnamese, and Chinese. The survey results identified that the creation of affordable housing, jobs, and community services were the County’s greatest needs. Results also identified increased housing affordability, housing for special needs individuals, and healthy homes as the most pressing housing needs. All comments were accepted. See Appendix Community Engagement Summary 3 Focus Groups Service providers, business owners or housing professionals. A total of 7 people from various agencies attended two meetings held on the following dates: 11/07/19 and 11/18/19. Participants identified the most pressing community problems to be lack of housing types, transitional housing, zoning regulations friendly to affordable housing, mental health services, career development training for youth, and gentrification. They also identified the high cost of housing, lack of coordination between resource agencies, and unclear fair housing rules as a concern. Participants stated that the following areas should be targeted for improvement: Downtown Gilroy, El Camino Real, Morgan Hills, and transit hubs all around the County. All comments were accepted. See Appendix Community Engagement Summary 4 Community Non-targeted/ Broad A total of 53 people Please see summary in final Analysis All comments were https://www.sccgov 8.A.a Packet Pg. 158 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 30 Sort Order Mode of Outreach Target of Outreach Summary of response / attendance Summary of comments received Summary of comments not accepted and reasons URL (if applicable) Meetings (joint Consolidated Plan and Affirmative Fair Housing) community residents, service providers, business owners or housing professionals. attended the two joint meetings. They were held on these dates: 11/13/19 and 12/11/19. of Impediments report. accepted. .org/sites/osh/Hous ingandCommunity Development/Urba nCountyProgram/P ages/home.aspx 5 Pop-Up Events Non-targeted/ Broad community Four pop-up events were held on these dates: 10/19/2019, 10/26/2019, 11/3/2019, and 11/21/2019. A total of 108 flyers were distributed. A total of 220 attendees were approached for feedback. A total of 3 surveys were completed at the event. See ES-05 All comments were accepted. https://www.sccgov .org/sites/osh/Hous ingandCommunity Development/Urba nCountyProgram/P ages/home.aspx 6 Website Broad Santa Clara County residents, and workers with computer and internet access Announcements posted to the websites of the entitlement jurisdictions to promote regional survey links (English and Spanish) and regional/community forums. See ES-05 All comments were accepted. City of Santa Clara: http://santaclaraca. gov/index.aspx?pa ge=41&recor did=13579 7 Local Advertisemen t (Print Media) Non-targeted / Broad community; Minority population CDBG target area recipients Notice of public meetings and survey availability was posted in Bay Area News Group and the Mercury News on 10/29/19 See PR-15 All comments were accepted. 8 Social Media Broad Santa Clara County community with computer access Announcements posted to Facebook and Twitter accounts of entitlement jurisdictions and community partners. See PR-15 All comments were accepted. https://nextdoor.co m/agency- post/ca/santa- clara- county/county-of- santa-clara-office- 8.A.a Packet Pg. 159 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 31 Sort Order Mode of Outreach Target of Outreach Summary of response / attendance Summary of comments received Summary of comments not accepted and reasons URL (if applicable) of-public- affairs/community- meetings-how- should-federal- funds-be-spent-to- improve-the- community- 129106261/ 9 Printed Flyers Non-targeted/ Broad community; Minority population CDBG target area recipients Over 1,225 print flyers were printed and distributed at community hubs across the County. See PR-15 All comments were accepted. See Appendix Community Engagement Summary 10 Stakeholder Interviews Non-targeted / Broad community residents, service providers, business owners or housing professionals 22 stakeholder interviews were conducted. Stakeholders prioritized the following needs: provide more affordable housing; provide vital services and homelessness prevention; assist families and individuals in transition; increase family income; assist special needs populations; offer emergency relief for vulnerable populations; improve aging community facilities and public infrastructure; and support fair housing. All comments were accepted. See Appendix Community Engagement Summary 11 Public Review Period Non targeted/broad community 30-day public review period. May 15, 2020 - June 15, 2020 TBD 12 Public Meeting Non targeted/broad community On May 19, 2020, a presentation was given at the Gilroy Parks & Recreation Commission meeting to review the draft Consolidated Plan. Approximately XX people were attended. TBD TBD TBD 13 Public Meeting Non targeted/broad community On May 26, 2020, a presentation was given at the Gilroy Bicycle & TBD TBD TBD 8.A.a Packet Pg. 160 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 32 Sort Order Mode of Outreach Target of Outreach Summary of response / attendance Summary of comments received Summary of comments not accepted and reasons URL (if applicable) Pedestrian Commission meeting to review the draft Consolidated Plan. Approximately XX people were attended. 14 Public Meeting(s) Non-targeted/broad community On June 1, 2020, a City Council public hearing was held to review the draft Consolidated Plan. Approximately XX people attended. TBD TBD TBD 15 Public Hearing(s) Non-targeted/broad community A City Council public hearing will be held on June 15, 2020, to review and approve the draft Consolidated Plan. Approximately XX people attended. TBD TBD TBD Table 4 – Citizen Participation Outreach 8.A.a Packet Pg. 161 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 33 NEEDS ASSESSMENT NA-05 Overview 1. Needs Assessment Overview The City of Gilroy (City) was incorporated in 1870 and spent the next 100 years as a ranching and farming town. Cattle ranching and timber from the nearby Santa Cruz Mountains were imported to the economy, but agriculture was the town’s greatest source of income.1 In the 1970s, workers from the Silicon Valley, who were priced out of housing, began to move to the City, which lead to the growth of the City’s residential community. Although still a large producer of garlic, mushrooms, and boutique wine, the largest occupation in the City is the retail trade, with 27 percent of the civilian labor force. Gilroy is the southernmost City in the County of Santa Clara and sits just south of Morgan Hill and north of San Benito County. The City is approximately 16 square miles, with over 1,000 acres remaining of undeveloped land. In 2018, the City’s population was estimated to be 55,525, with a median household income of $94,548.2 The City’s racial and ethnic makeup constitutes a large Hispanic population: 58 percent of the population is Hispanic, 30 percent is White, 1 percent Black/African American, 0.1 percent American Indian and Alaska Native, and 8 percent Asian. This Needs Assessment will look at housing- and income-related data to assess the City’s needs pertaining to disproportionately greater need, public housing, homeless needs, non -homeless special needs, and non-housing community development needs. Most of the data used throughout the Needs Assessment and Market Analysis was provided by H UD. Data from the Comprehensive Housing Affordability Strategy (CHAS) is custom tabulation of data from the US Census Bureau that demonstrates the extent of certain types of housing problems and housing needs in each community, particularly those of lower-income households. Other supplemental data was also used, including direct data derived from the American Community Survey (ACS) five -year estimates. Though the ACS one-year estimates provide the most current data, this report utilizes five -year estimates as they reflect a larger sample size and have a smaller sampling error overall, making that source more reliable and precise. A community survey was made available to residents of the City to discuss the needs specific to this plan. The survey offered four “overall needs”: 1. Improve city facilities that provide public services (such as parks, recreation or senior centers, parking facilities, and street improvements) 2. Create additional affordable housing available to low-income residents 3. Improve nonprofit community services (such as elderly persons, youth, health, homeless, and fair housing services) 4. Create more jobs available to low-income residents Respondents were asked to rank these needs as ‘low’, ‘medium’, and ‘high’ priorities for the City. 1 Gilroy Wine Trail. web site. Retrieved May 22, 2013. 2 2018 ACS 8.A.a Packet Pg. 162 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 34 Overall, 512 residents of the City participated in the survey. Of those residents, 69 percent said creating additional affordable housing was the highest need in the City; 69 percent said creating more jobs for low - income residents was the highest need in the City; 67 percent said improving nonprofit community services was the highest need in the City; and 63 percent of participants said improving City facilities was the highest need in the City. Three focus groups were held at the Gilroy Public Library. Although extens ive outreach was completed, only two residents attended the first of the three meetings, and zero persons attended the other two meetings. During this meeting, the group was asked what the City’s top priorities are over the next five - years. The priorities included housing for the homeless, assistance to disabled persons, and diversity in housing options. Additionally, the group was asked about the most common or pressing housing needs in the City. They listed residential land availability, the transitional to permanent housing gap, current zoning laws for housing alternatives such as tiny homes, lack of affordable housing, the “missing middle” (i.e., housing needed for middle class families, but not LMI or luxury homes), and fair housing law education for the community. Four community meetings were held throughout the County. Although no meetings were held directly in Gilroy, outreach was done to attract Gilroy residents through websites and flyers available in four languages: English, Chinese, Spanish, and Vietnamese. Attendees identified the top priorities for the next five years. These priorities include d: transportation and accessibility, housing rehabilitation and maintenance, services for the elderly and mental health services, workforce development, sustainable housing solutions, affordable housing, more emergency assistance including transitional housing and shelters, services for special needs populations (particularly single-income families, elderly, and transition-age youth), homelessness prevention programs, and shelters including supportive services such as education and job/housing placement. A total of four pop-up events were held in the County: one in Santa Clara, two in Sunnyvale, and one in Palo Alto. From the 220 participants, the following needs were determined: a regional forum on housing; creation of more affordable housing; a development built close to public transportation; mixed -use development along El Camino Real; expansion of public transit routes ; and expansion of code enforcement activities due to residential blight. Twenty-two community stakeholders were interviewed regarding the needs of their clients in the City and how CDBG funds should be spent over the next five years. The following is a l ist of stakeholder funding priorities: creating a citywide wellness program; investing in affordable housing projects that rehab ilitate and create new units; advocating for development of affordable housing projects; converting larger dwellings to multiple units; creating short-term or interim housing, until more permanent housing is available; reducing the number of vacant homes and properties; continuing to fund homeless ness prevention programs; expanding shelter capacities; and expanding housing options for elderly persons and persons with disabilities. The information below gives a basic overview of what is addressed in the Needs Assessment, in order to determine how the City should allocate federal CDBG funding. Housing Needs Assessment At least 70 percent of CDBG-funded activities must go toward benefitting low- to moderate- income (LMI) individuals and households. CDBG funds may be used on housing activities that improve or provide permanent residential structures which, upon completion, will be occupied by low-and moderate-income households.3 These are individuals and households whose incomes do not exceed 80 percent of the HUD area median family 3 24 CFR § 270.208 (a) (3) 8.A.a Packet Pg. 163 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 35 income (HAMFI) as established by HUD. Furthermore, lower-income households include the following groups:  Extremely low-income: Households earning 0-30% HAMFI  Low-income: Households earning 30-50% HAMFI  Moderate-income: Households earning 50-80% HAMFI Throughout the document and in many tables, HAMFI and AMI are used interchangeably. If you see the terms "area median income" (AMI) or "median family income" (MFI) used, assume it refers to HAMFI. Definitions of housing problems and family types that will be analyzed in the sections below are as follows:  Substandard Housing – Lacking complete plumbing or kitchen facilities. This includes households without hot and cold piped water, a flush toilet and a bathtub or shower, or kitchen facilities that lack a sink with piped water, a range or stove, or a refrigerator.  Overcrowded – Households having complete kitchens and bathrooms but housing more than 1.01 to 1.5 persons per room excluding bathrooms, porches, foyers, halls, or half -rooms.  Severely Overcrowded – Households having complete kitchens and bathrooms but housing more than 1.51 persons per room excluding bathrooms, porches, foyers, halls, or half-rooms.  Housing Cost Burden – This is represented by the fraction of a household’s total gross income spent on housing costs. For renters, housing costs include rent paid by the tenant plus utilities. For owners, housing costs include mortgage payment, taxes, insurance, and utilities. o A household is cost burdened if the household is spending more than 30 percent of its monthly income on housing costs, including utilities. o A household is considered severely cost burdened if the household is spending more than 50 percent of its monthly income on housing costs, including utilities. Elderly household – a household where at least one person is at least 62 years of age. Person with a disability – A person who is determined to: (1) have a physical, mental, or emotional impairment that: (i) is expected to be of long-continued and indefinite duration; (ii) substantially impedes his or her ability to live independently; and (iii) is of such a nature that the ability c ould be improved by more suitable housing conditions; or (2) have a developmental disability defined in section 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C 6001-6007); (3) be a surviving member or members of any family that had been living in an assisted unit with the deceased member of the family who had a disability at the time of his or her death.4 Families with children – a household with at least one minor child under the age of 18. Households at imminent risk of homelessness – (1) An individual or family who: (i) has an annual income below 30 percent of median family income for the area, as determined by HUD; (ii) does not have sufficient resources or support networks, e.g., family, friends, faith-based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place … ; and (iii) meets one of the following conditions: (A) has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) is living in the home of another because of economic hardship; (C) has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date 4 24 CFR § 91.5 (1) 8.A.a Packet Pg. 164 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 36 of application for assistance; (D) lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low-income individuals; (E) lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there r eside more than 1.5 people per room, as defined by the U.S. Census Bureau; (F) is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or (G) otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan.5 Disproportionately Greater Need – disproportionate housing needs is defined as “significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups or the total population experiencing that category of housing need in the applicable geographic area” (24 CFR Section 5.152). Specifically, a disproportionately greater need exists when the members of a racial/ethnic group at a given income level experience housing problems at a greater rate (10 percentage points or more) than the jurisdiction as a whole at that income level. This Needs Assessment compares racial/ethnic groups in the City and the jurisdiction as a whole in the areas of housing problems, severe housing problems, c ost burden, and severe cost burden. A narrower comparison of housing problems and severe housing problems by income level are compared to those income levels of the jurisdiction as a whole. Public Housing The Santa Clara County Housing Authority (SCCHA) is the regional Public Housing Authority (PHA) for the City of Gilroy. Public housing was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes a nd types, from scattered single-family houses to high-rise apartments for elderly families. There are approximately 1.2 million households living in public housing units, managed by some 3,300 PHAs. HUD administers federal aid to local housing agencies (HAs) that manage the housing for low-income residents at rents they can afford.6 The City of Gilroy does not have public housing units; however, the PHA does own four units, which are located in the City of Santa Clara, and the PHA has voucher programs. Privately held alternative affordable housing units are also available such as through LIHTC programs. In addition to managing and maintaining public housing units, the PHA also administers the Housing Choice Voucher (HCV) program and owns and manages affordable housing units in the City of Gilroy and throughout the County of Santa Clara. PHAs often provide other services, which might include homeownership opportunities for qualified families, employment training opportunities and other special training and employment programs for residents, and support programs for the elderly. Community stakeholders would like to see additional vouchers allocated to the City of Gilroy to serve homeless persons and LMI households. In 2008, the SCCHA was awarded the opportunit y to participate in the federal Moving to Work (MTW) program, a demonstration program that provides PHAs the opportunity to “design and test innovative, locally designed strategies that use Federal dollars more efficiently, help residents find employment a nd become self-sufficient, and increase housing choices for low-income families. MTW allows PHAs exemptions from many existing public housing and voucher rules and provides funding flexibility with how they use their Federal funds. PHAs in the MTW demonstration have pioneered a number of innovative policy interventions that have been proven to be successful at the local level, and subsequently rolled out to the rest of the country’s PHAs. Currently, there are 39 MTW PHAs nationwide and HUD plans to 5 24 CFR § 91.5 6 https://www.hud.gov/topics/rental_assistance/phprog 8.A.a Packet Pg. 165 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 37 expand the program to addition 100 PHAs by 2022.”7 The MTW program is available and benefits all voucher holders in Santa Clara County, including those households in the City of Gilroy. Homeless Needs Assessment A person is experiencing homelessness if they spend at least one night in a place not meant for human habitation, such as a park or sidewalk (unsheltered), or in emergency housing, transitional housing, or a motel paid for by a social service agency (sheltered). All jurisdictions that receive funding to se rve homeless populations are required to conduct a bi ennial point in time (PIT) count of sheltered and unsheltered people experiencing homelessness on a single night in January. The Santa Clara Continuum of Care (CoC) is the responsible entity for the PIT count, for all cities in the County of Santa Clara. The Santa Clara PIT count was conducted on the night of January 29, through the morning of January 30, 2019. The CoC then produced a comprehensive report of the count, the Santa Clara County Homeless Census & Survey (hereafter referred to as the 2019 County PIT count). The number of homeless living in the City decreased between the years 2017 and 2019 by 2 percent. In 2017, a total of 722 people living in the City were experiencing homelessness compared t o 704 people in 2019. In 2019, 345 homeless were unsheltered and 359 were sheltered. The City continues to participate in countywide efforts to address issues and end homelessness throughout the City and County. Non-Homeless Special Needs Assessment This section of the Consolidated Plan discusses the housing needs of special needs populations that are not homeless but could benefit from supportive housing. These populations include:  Elderly households (defined as 62 and older)  Frail elderly (defined as an elderly person who requires assistance with three or more activities of daily living, such as bathing, walking, or performing light housework)  Persons with disabilities (mental, physical, and/or developmental disabilities)  Persons with alcohol or other drug addiction  Persons living with HIV/AIDS and their families  Victims of domestic violence, dating violence, sexual assault, and stalking Non-Housing Community Development Needs This section of the Consolidated Plan addresses the City’s needs for public facilities, public improvements, and public services. Examples include elderly care centers, centers for persons with disabilities, homeless facilities, youth centers, childcare centers, neighborhood facilities, fire stations/equipment, health facilities, parks, recreational facilities, and facilities for special needs population. 7 https://www.hud.gov/mtw 8.A.a Packet Pg. 166 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 38 NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c) Summary of Housing Needs Demographics Base Year: 2009 Most Recent Year: 2015 % Change Population 48,821 51,645 6% Households 14,403 14,990 4% Median Income $67,317.00 $83,027.00 23% Table 5 – Housing Needs Assessment Demographics Data Source: 2005-2009 ACS (Base Year), 2011-2015 ACS (Most Recent Year) Number of Households Table 0-30% HAMFI >30-50% HAMFI >50-80% HAMFI >80-100% HAMFI >100% HAMFI Total Households 3,130 1,974 1,865 1,445 6,570 Small Family Households 1,315 959 700 615 3,930 Large Family Households 735 449 395 345 1,055 Household contains at least one person 62-74 years of age 470 260 579 225 1,295 Household contains at least one person age 75 or older 530 249 175 95 295 Households with one or more children 6 years old or younger 1,034 634 380 279 1,034 Table 6 – Total Households Table Data Source: 2011-2015 CHSA Housing Needs Summary Tables 1. Housing Problems (Households with one of the listed needs) Renter Owner 0-30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total NUMBER OF HOUSEHOLDS Substandard Housing - Lacking complete plumbing or kitchen facilities 0 0 0 10 10 4 0 0 0 4 Severely Overcrowded - With >1.51 people per room (and complete kitchen and plumbing) 110 85 70 30 295 25 10 10 35 80 8.A.a Packet Pg. 167 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 39 Renter Owner 0-30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total Overcrowded - With 1.01-1.5 people per room (and none of the above problems) 445 170 95 35 745 20 10 25 40 95 Housing cost burden greater than 50% of income (and none of the above problems) 1,230 360 10 0 1,600 450 154 235 50 889 Housing cost burden greater than 30% of income (and none of the above problems) 370 415 260 100 1,145 35 169 260 330 794 Zero/negative Income (and none of the above problems) 45 0 0 0 45 35 0 0 0 35 Table 7 – Housing Problems Table Data Source: 2011-2015 CHAS 2. Housing Problems 2 (Households with one or more Severe Housing Problems: Lacks kitchen or complete plumbing, severe overcrowding, severe cost burden) Renter Owner 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total NUMBER OF HOUSEHOLDS Having 1 or more of four housing problems 1,785 615 175 75 2,650 500 174 270 125 1,069 Having none of four housing problems 535 735 695 465 2,430 230 454 725 785 2,194 Household has negative income, but none of the other housing problems 45 0 0 0 45 35 0 0 0 35 Table 8 – Housing Problems 2 Data Source: 2011-2015 CHAS 3. Cost Burden >30% Renter Owner 0-30% AMI >30- 50% AMI >50- 80% AMI Total 0-30% AMI >30- 50% AMI >50- 80% AMI Total NUMBER OF HOUSEHOLDS 8.A.a Packet Pg. 168 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 40 Renter Owner 0-30% AMI >30- 50% AMI >50- 80% AMI Total 0-30% AMI >30- 50% AMI >50- 80% AMI Total Small Related 1,030 405 110 1,545 130 209 195 534 Large Related 545 340 50 935 90 54 80 224 Elderly 330 80 85 495 270 80 165 515 Other 185 145 25 355 45 0 80 125 Total need by income 2,090 970 270 3,330 535 343 520 1,398 Table 9 – Cost Burden >30% Data Source: 2011-2015 CHAS 4. Cost Burden >50% Renter Owner 0-30% AMI >30- 50% AMI >50- 80% AMI Total 0-30% AMI >30- 50% AMI >50- 80% AMI Total NUMBER OF HOUSEHOLDS Small Related 795 205 10 1,010 130 94 115 339 Large Related 415 30 0 445 90 35 0 125 Elderly 215 40 0 255 240 35 90 365 Other 145 80 0 225 35 0 30 65 Total need by income 1,570 355 10 1,935 495 164 235 894 Table 10 – Cost Burden >50% Data Source: 2011-2015 CHAS 5. Crowding (More than one person per room) Renter Owner 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total 0- 30% AMI >30- 50% AMI >50- 80% AMI >80- 100% AMI Total NUMBER OF HOUSEHOLDS Single family households 450 195 115 65 825 35 14 35 30 114 Multiple, unrelated family households 100 55 55 0 210 10 4 0 44 58 Other, non-family households 10 0 0 0 10 0 0 0 0 0 Total need by income 560 250 170 65 1,045 45 18 35 74 172 Table 11 – Crowding Information – 1/2 Data Source: 2011-2015 CHAS Renter Owner 8.A.a Packet Pg. 169 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 41 0- 30% AMI >30- 50% AMI >50- 80% AMI Total 0- 30% AMI >30- 50% AMI >50- 80% AMI Total Households with Children Present - - - - - - - - Table 12 – Crowding Information 2/2 Describe the number and type of single person households in need of housing assistance. The County 2019 PIT count counted 9,706 homeless individuals (total sheltered and unsheltered) across the County, which included 2,470 chronically homeless individuals, 653 homeless veterans, and 1,456 transition-age youth.8 The PIT count counted 704 individuals experiencing homelessness in the City of Gilroy, specifically, although there is no data showing the demographics of these individuals. Many programs target special needs populations (e.g., chronically homeless, veterans, transition-age youth). However, most single homeless adults do not fall into any of the special needs populations, and actually make up 67 percent of the homeless population nationwide.9 All single homeless individuals (regardless of whether they belong to a special needs population) need housing that is affordable, as well as low or no barrier. Many homeless individuals have zero income, some have a criminal background, and some have pets when coming in off the streets. These are some examples of potential barriers to housing as landlords/owners have a variety of approval requirements when tenants apply for housing. Additionally, most homeless shelters alone do not allow pets; thus, this population tends to stay unsheltered. In addition to housing, homeless individuals need supportive services, which may differ by special needs group. Supportive services may include assessment of service needs, assistance with moving costs, case management, child care, education services, employment assistance and job training, food, housing search and counseling services, legal services, life skills training, mental health services, outpatient health services, outreach services, substance abuse treatment service s, transportation, and utility deposits.10 In addition to homeless households, there are single-person one-income households, many of which may be elderly households. Elderly households have a need for affordable housing as they tend to be on a fixed income. Typically, elderly households have a need to be on the first floor and may need an accessible housing unit. The 2011-2015 ACS reveals that in 2015 there were 14,990 households in the City, and of those households, 4,173 (28 percent) have at least one person 62 or older. Of the elderly households in the City, 7 percent are extremely low-income, 3 percent are very low-income households, and 5 percent are low-income. This would mean the City would need to have approximately 600 affordable senior housing units available. Based on the above data, there is a need for additional affordable housing for the elderly and frail elderly population in the City. The 2017 ACS data shows that 2,469 (16 percent) of Gilroy households are single-person households.11 Of the single-person households in the City, 1,120 households (45 percent) are persons 65 years and older. 8 Santa Clara Office of Supportive Housing. 2019 Santa Clara County Point in Time Count (PIT) & Survey. https://www.sccgov.org/sites/osh/ContinuumofCare/ReportsandPublications/Documents/2015%20Santa%20Clara%20County%20Homeless %20Census%20and%20Survey/2019%20SCC%20Homeless%20Census%20and%20Survey%20Report.pdf 9 https://endhomelessness.org/homelessness-in-america/homelessness-statistics/state-of-homelessness-report/ 10 24 CFR 578.53 11 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF 8.A.a Packet Pg. 170 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 42 Estimate the number and type of families in need of housing assistance who are disabled or victims of domestic violence, dating violence, sexual assault and stalking. Persons with Disabilities: According to 2013-2017 ACS five-year estimates, there are at least 3,863 Gilroy residents living with a disability (hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self -care difficulty, or independent living difficulty). Individuals aged 18-64 make up the most significant portion of Gilroy’s disabled population, with 4.5 percent of persons living with disabilities. Living with disabilities can pose additional hardship for HCV holders, especially for affordable housing options. This population may live on a fixed income and need a housing unit that is ADA-accessible and/or offer enough space for medical equipment and possibly a live -in aide. Additionally, a disabled household needs housing near transportation, grocery stor es, mainstream services, and supportive services. When the many needs of a disabled household are taken into consideration, household choice is often extremely limited due to a limited housing stock in the area, and families must take any available housing unit regardless of whether it is near their support system or meets their specific needs. Stakeholder subject matter experts who engaged in the community outreach interviews saw a need for a variety of options of housing (size and income levels) for the disabled and elderly and would like to see CDBG funds used over the next five years to seek out available housing that would be appropriate for this population. Domestic Violence Households During stakeholder interviews, it was reported that the County has seen an increase in the number of victims of domestic violence and there is a need for additional services. The City does not have the exact count of people facing domestic violence in the City. However, the 2019 County PIT count identified 6 percent of homeless individuals in the County as currently experiencing domestic/partner violence or abuse. Households who experience domestic violence, dating violence, sexual assault, and stalking need emergency housing and potentially long -term housing, as well as specialized case management services. Survivors of domestic violence may need to be housed outside of the City or jurisdiction, in an undisclosed location, or must move one or more times to stay in a safe housing situation. Community stakeholders are also seeing an increase in the number of domestic violence victims and agree with the need for additional services. Currently, the CoC partners with local victim service providers to offer training for all staff that work with homeless clients. Staff are trained on a trauma-informed, victim- centered approach, which is the current best practice. They also discuss safety and planning protocols for serving survivors of domestic violence, dating violence, human trafficking, sexual assault, and stalking, as well as the Violence Against Women Act requirements. The City has an emergency shelter, La Isla Pacifica Shelter for Victims of Domestic Violence and their Children, a bed emergency shelter in a confidential location, which is managed through the nonprofit Community Solutions. The shelter provides a confidential, safe, clean, and sober living environment for survivors and their minor children that provides culturally competent, strengths -based services for wellness and recovery. The shelter can receive referrals from victims themselves (self-referral), as well as from law enforcement, social services, and other services providers. Community Solutions offers a supportive housing program to survivors of domestic violence and their families. This program provides rental assistance to survivors in the City, to obtain and maintain permanent, safe, decent housing. The program also offers supportive services, which include housing 8.A.a Packet Pg. 171 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 43 search assistance, counseling, life skills, jobs skills and education, legal assistance, and c onnection to mainstream services. Community Solutions offers many other services to survivors of domestic violence, intimate partner abuse, sexual assault, commercially sexually exploited children, and human trafficking (both sexual and labor). Services for these populations include a 24-hour crisis line, case management, counseling, legal advocacy, accompaniment to medical, legal, and/or court appointments, advocacy for clients with outside agencies, referral and linkage to additional services and resourc es, community prevention and training, safety planning, and goal planning. In addition to housing and services programs for victims and survivors in the City, Community Solutions offers two education and prevention programs for teens and young adults to he lp the community learn about healthy relationships. What are the most common housing problems? Of the total households in the City, 5,657 (38 percent) experience at least one housing problem. Severe Housing Problems Severe housing problems are when housing units lack a kitchen or complete plumbing, have severe overcrowding, or have severe cost burden. Severe housing problems are the most common housing problem in the City with 3,719 households (25 percent) (Table 8) having one or more severe housing problem. Community members completing the online survey continually addressed the need for additional housing for all income levels. Severe Cost Burden Severe cost burden occurs when a household pays greater than 50 percent of their income toward their gross housing costs. Severe cost burden is the second most common housing problem in the City, with 2,489 (17 percent) (Table 7) of households paying more than 50 percent of their monthly income toward their gross housing costs. Community stakeholders argue that one of the top priorities for use of CDBG funding should be to invest in rehabilitation and newly built affordable housing in the City. Cost Burden Cost burden occurs when a household pays 30 percent or greater of t heir income toward their gross housing costs. Cost burden is the third most common housing problem in the City, with 1,934 households (13 percent) (Table 7) of households paying more than 30 percent of their month income toward their gross housing costs. Agency priorities determined during community outreach included addressing the lack of housing stock, which includes a variety of housing in all sizes and at all income levels. Are any populations/household types more affected than others by these problems? Extremely low-income households (0-30% AMI) are the most impacted by housing problems within the City (see Table 7):  445 renter households are overcrowded  1,230 renter households are severely cost burdened  450 owner households are severely cost burdened 8.A.a Packet Pg. 172 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 44 Describe the characteristics and needs of Low -income individuals and families with children (especially extremely low-income) who are currently housed but are at imminent risk of either residing in shelters or becoming unsheltered 91.205(c)/91.305(c)). Also discuss the needs of formerly homeless families and individuals who are receiving rapid re -housing assistance and are nearing the termination of that assistance Low-income individuals, families with children who are at imminent risk of homelessness, and h ouseholds that are eligible for rapid re-housing (RRH) have similar characteristics and can be discussed together. In all cases, the primary focus is helping the household solve its immediate crisis, in order to stay housed or find and secure housing. Subject matter experts believe these populations can be successful without long-term supportive services. RRH rapidly connects families and individuals experiencing homelessness to permanent housing through a tailored package of assistance that may include the use of time-limited financial assistance and targeted supportive services. The three components include housing identification, rent and move-in assistance, and RRH case management and supportive services. Providing financial assistance and services for a shorter period allows for flexibility and a far less costly program overall. Compared to permanent supportive housing, RRH programs need only provide one, two, or three of the available components, and assistance may be as short as a one-time move-in payment of help with a deposit, or as long as two years of rental assistance or 36 months of supportive services. The program is based on a client’s particular needs and does not provide services that are not needed. Since RRH only provides the minimum of needs, costs are kept to a minimum, which allows a program to serve a greater number of participants than a permanent supportive housing program. RRH programs are also extremely flexible in that not only are they tailored to the client’s particular needs, but a client that needs additional assistance can return and obtain that assistance later. RRH programs allow for a one- time rental deposit, 24 months of rental assistance, and six additional months of supportive services after the completion of rental assistance. The County 2019 PIT count found that the primary cause of first -time homelessness was job loss. When asked what may have prevented homelessness, the answer was rent or mortgage assistance, and then employment assistance. The City does not have its own RRH program ; however, Gilroy residents are eligible for Santa Clara County CoC RRH programs. Although there are no RRH programs managed or funded by the City, the City offers two transitional housing programs: Community Solutions’ El Invierno Transitional Housing Gilroy, a program for 12 single homeless men; and Community Solutions’ Walnut Lane Home Transitional Housing, a program for eight single homeless men. Unlike RRH, transitional housing programs do not provide services for persons at imminent risk of homelessness, but only for those that meet HUD’s definition of homelessness, as discussed in NA-05. Although transitional housing facilitates the movement of homeless individuals and families to permanent housing within 24 months of entering, as RRH does, it does not offer supportive services after the rental assistance stops, and does not offer the same flexibility as a RRH program, which is discussed in further detail below. The CoC’s RRH programs offer housing-focused case management from program entry. RRH is a Housing First program with a goal of helping households obtain permanent housing as quickly as possible, with “just enough” financial assistance to help the household become stable (based on their needs). Housing may be in an apartment, shared housing/room rental, subsidized housing, or living with friends or family members. RRH programs build a client-centered plan that prioritizes employment, builds sustainable support systems, and encourages case management. RRH participants are eligible for continued case management, even after rental assistance is complete. 8.A.a Packet Pg. 173 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 45 The CoC connects clients with:  Employment Services – the gap between high rents and low wages is the primary barrier for retention of housing for RRH participants. Increasing income for RRH participants is the central focus of supportive services if the participant’s current income is inadequate to cover housing costs. o The Living Wage Employment Initiative (LWEI) is a program that holds jobs fairs, engages previously homeless program participants in job training, and connects participants with living-wage employment leading to careers in high growth industries such as healthcare, technology, advances manufacturing, building and construction.  In 2017 and 2018, 30 percent of participants reached the County’s living wage threshold, and 91 percent of those who obtained full-time employment remained employed for at least one year.  LWEI secured 285 employment and job training slots prioritized for people experiencing homelessness or in a housing program.  In 2017 and 2018, 61 percent of LWEI participants obtained full-time employment.  Affordable Housing – some households will be unable to increase their income to pay market -rate rent, even at a cost burdened rate. Therefore, there is a need for some households to seek out subsidized housing options. o Developed with County Housing Bond and other funds, 125 units are set aside for RRH clients with 1,475 additional RRH units planned throughout the County over the next 10 years. o Program providers support tenants through education of landlord/tenant laws to ensure lease compliance in order to stay housed.  Mainstream Services and Systems – complementary supportive services available to homeless families in the jurisdiction. o School districts, child welfare agency, justice system, and victim service providers help clients address root causes of housing instability. o Connecting clients with mainstream benefits to help cover household expenses such as food, utilities, and healthcare.  Landlord Incentive Program – dedicated funding is used to recruit and retain owners/landlords. o The All the Way Home Veterans program has engaged 791 new landlords since 2015. As households near the end of the RRH program, providers work with clients on housing stability. This is done through:  Identifying potential challenges that may arise and troubleshooting them in advance  Scheduling follow-up visits – case management may continue for six months after the competition of rental assistance  Ensuring there is a crisis plan in place  If a household has greater financial barriers or extraordinary housing cha llenges, there may be a need for additional intervention or longer-term assistance. This can be done through: o Transfer to permanent supportive housing program o Referral to HCV with the SCCHA o Move to more affordable housing 8.A.a Packet Pg. 174 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 46 If a jurisdiction provides estimates of the at-risk population(s), it should also include a description of the operational definition of the at-risk group and the methodology used to generate the estimates: Persons at imminent risk of homelessness include: (1) An individual or family who: (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD; (ii) Does not have sufficient resources or support networks, e.g., family, friends, faith-based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place …; and (iii) Meets one of the following conditions: (A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardsh ip; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance; (D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, state, or local government programs for low-income individuals; (E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or (G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan.12 The CoC reviewed local data and national trends regarding imminent risk of ho melessness. These risk factors are used along with the Prevention Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) to assess a household’s eligibility for the County’s Homelessness Prevention System (HPS).13 The VI-SPDAT is a survey administered to homeless persons and those at imminent risk of homelessness to prioritize for services. Ongoing PIT count data show eviction, lack of employment, and low or no income as primary causes of homelessness. As discussed above, housing costs are an issue, with 15 percent of LMI renters and 7 percent of LMI owners experiencing cost burden, 23 percent of LMI renters experiencing severe cost burdened, and 12 percent of owners experiencing severe cost burden. Nationally, people living in poverty who struggle to afford necessities are at the greatest risk of homelessness, which include severe cost burden and living doubled up. “In 2017, 6.7 million households spent more than 50 percent of their income on rent. They were experiencing a ‘severe cost burden’…4.4 million people in poor households were ‘doubled up,’ which means they were living with family and friends.”14 The CoC also cites national research indicating additional factors including low or no income, mental illness, abuse, and criminal justice involvement. Based on the findings discussed above, the following eligibility criteria was created for HPS: low income; self-report of imminent risk of homelessness OR unsafe housing situation; and a Prevention VI -SPDAT score of 8 or greater. The Prevention VI-SPDAT is for those at imminent risk of homelessness and scores the following factors: income and financial health, history of homelessness, eviction risk, abuse and/or trafficking, interaction with emergency services including criminal justice, and acuity of mental and physical needs. HPS includes 13 agencies that offer financial assistance and supportive services that are targeted to client’s needs. Supportive services may include working with a housing specialist to retain housing or possibly relocate. 12 24 CFR § 91.5 13 San Jose/Santa Clara City & County CoC FY2019 CoC Application 14 National Alliance to End Homelessness (2019) State of Homelessness https://endhomelessness.org/homelessness-in- america/homelessness-statistics/state-of-homelessness-report/ 8.A.a Packet Pg. 175 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 47 The County Office of Supportive Housing is the HPS program manager. Other partner agencies include five local victim service providers to assist families fleeing unsafe housing; the Law Foundation of Silicon Valley for eviction prevention services; CalWorks and Supportive Services for Veteran Families (SSVF) to provide financial assistance, case management, connections to benefits , and job training; and the Bill Wilson Center to work with school district homeless liaisons and tra in school staff to identify at-risk families to refer to HPS. The County and the City of San Jose allocated $10 million in new state funding over two years to fund the HPS program, which allows for an annual capacity of 900 households, countywide. HPS tracks data and outcomes in order to continually evaluate system outcomes. HPS has had successful outcomes; in the first two years of the program, 92 percent of participants remained housed one year after assistance. Specify particular housing characteristics that have been linked with instability and an increased risk of homelessness Ongoing PIT count data show eviction, lack of employment, and low or no income as primary causes of homelessness. As discussed above, housing costs are also an issue, as 15 percent of LMI renters and 7 percent of LMI owners are cost burdened, 23 percent of LMI renters are severely cost burdened, and 12 percent of owners are severely cost burdened. The National Alliance to End Homelessness cites overcrowding or “doubled up” as a housing characteristic that leads to homelessness. The CoC also cites national research indicating additional factors including low or no income, mental illness, abuse, and criminal justice involvement. Throughout the County, 22 stakeholders were interviewed as part of this plan’s community engagement, which included nonprofit homeless providers. When asked how CDBG funds should be spent regarding homeless services, stakeholders stated that there is a need for homelessness prevention programs, which may include employment assistance, rental or utility assistance, or legal advocacy. Additionally, providers identified a need for the County to continue to update resource guides and websites that point to correct agencies based on needs, and work with service agencies for quicker response rates to help people in crisis. Last, both stakeholders and community members see a need for an increase in fair housing efforts to decrease evictions that lead to homelessness. This would include education for tenant right s regarding housing conditions and creating engagement activities and programs. There is a need for these activities to be provided in Spanish, and held within non-English speaking communities, as well as LMI communities that typically do not engage in ser vices. This engagement should also include advocacy for persons with disabilities seeking housing resources. When homeless individuals were asked during the PIT count what their primary cause of homelessness was, 30 percent of survey respondents countywide reported job loss as the primary cause, 22 percent cited alcohol or drug use, 15 percent cited a divorce/separation, 14 percent cited eviction, and 13 percent cited an argument with—or being asked to leave by—a family member or friend. When asked what might have prevented their homelessness, survey respondents most commonly reported rent or mortgage assistance (42 percent, an increase from 30 percent in 2017) followed by employment assistance (37 percent). For homeless families, the top three primary causes of homelessness were job loss (32 percent), eviction (25 percent), and a divorce or separation (19 percent). 8.A.a Packet Pg. 176 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 48 Discussion Overall, the City needs to continue to invest in job training programs as well as work to bring higher- paying jobs to the area in an attempt to decrease the number of extremely low-income households in the City. Additional affordable housing, permanent supportive housing for homeless persons, and programs to prevent homelessness and quickly rehouse those that are recently homeless are particularly important. 8.A.a Packet Pg. 177 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 49 NA-15 Disproportionately Greater Need: Housing Problems – 91.205 (b)(2) Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole. Introduction This section examines local income and racial/ethnic group data for the City of Gilroy and compares them to determine if any racial/ethnic groups have experienced a disproportionately greater housing need than the needs of the population of Gilroy as a whole. A disproportionately greater need exists when the members of a racial/ethnic group at a given income level experience housing problems at a greater rate (10 percentage points or more) than the jurisdiction at that income level, as a whole. 0%-30% of Area Median Income Housing Problems Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 2,695 360 80 White 480 80 10 Black / African American 95 0 0 Asian 65 20 0 American Indian, Alaska Native 15 0 0 Pacific Islander 0 0 0 Hispanic 2,005 255 70 Table 13 – Disproportionately Greater Need 0 - 30% AMI Data Source: 2011-2015 CHAS *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost burden greater than 30% >30%-50% of Area Median Income Housing Problems Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 1,369 610 0 White 279 210 0 Black / African American 30 10 0 Asian 50 40 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 1,015 355 0 8.A.a Packet Pg. 178 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 50 Table 14 – Disproportionately Greater Need >30 - 50% AMI Data Source: 2011-2015 CHAS *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost burden greater than 30% >50%-80% of Area Median Income Housing Problems Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 970 900 0 White 335 349 0 Black / African American 10 10 0 Asian 14 50 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 590 485 0 Table 15 – Disproportionately Greater Need >50 - 80% AMI Data Source: 2011-2015 CHAS *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost burden greater than 30% >80%-100% of Area Median Income Housing Problems Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 630 820 0 White 295 320 0 Black / African American 0 0 0 Asian 25 30 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 310 465 0 Table 16 – Disproportionately Greater Need >80 - 100% AMI Data Source: 2011-2015 CHAS *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost burden greater than 30% 8.A.a Packet Pg. 179 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 51 Alternative Table: Disproportionately Greater Need (Jurisdiction) of Households Experiencing one or more Housing Problems: 0-30% AMI Extremely low -income >30-50% AMI Low-income 50-80% AMI Moderate-income 80-100% AMI Middle Income # % # % # % # % Jurisdiction as a Whole 2,695 86% 1,369 69% 970 52% 630 44% White 480 84% 279 57% 335 49% 295 48% Black / African American 95 100% 30 75% 10 50% 0 0% Asian 65 76% 50 56% 14 22% 25 45% American Indian, Alaska Native 15 100% 0 0% 0 0% 0 0% Pacific Islander 0 0% 0 0% 0 0% 0 0% Hispanic 2,005 86% 1,015 74% 590 55% 310 40% Discussion The Alternative Table above shows a summary and comparison of Tables 13, 14, 15, and 16, which list the number of households in the City that experience one or more housing problems, sorted by ethnic/racial group and income category. Based on HUD’s definition of disproportionately greater need, the following populations have a disproportionately greater need due to having one or more of four housing problems: o 100 percent of extremely low-income Black/African American households, as compared to 86 percent of the jurisdiction as a whole. o 100 percent of extremely low-income American Indian, Alaska Native households, as compared to 86 percent of the jurisdiction as a whole. 8.A.a Packet Pg. 180 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 52 NA-20 Disproportionately Greater Need: Severe Housing Problems – 91.205 (b)(2) Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole. 1. Introduction A disproportionately greater need exists when the members of a racial or ethnic group at a g iven income level experience severe housing problems at a greater rate (10 percentage points or more) than the income level as whole. Severe housing problems include overcrowded households with more than 1.5 persons per room, not including bathrooms, porches, foyers, halls, or half-rooms, and households with severe cost burden, i.e., spending more than 50 percent of income on gross housing costs. 0%-30% of Area Median Income Severe Housing Problems* Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 2,285 765 80 White 410 150 10 Black / African American 75 20 0 Asian 65 20 0 American Indian, Alaska Native 15 0 0 Pacific Islander 0 0 0 Hispanic 1,690 575 70 Table 17 – Severe Housing Problems 0 - 30% AMI Data Source: 2011-2015 CHAS *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost burden over 50% 8.A.a Packet Pg. 181 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 53 >30%-50% of Area Median Income Severe Housing Problems* Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 789 1,189 0 White 154 334 0 Black / African American 15 25 0 Asian 30 55 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 590 775 0 Table 18 – Severe Housing Problems >30 - 50% AMI Data Source: 2011-2015 CHAS *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost burden over 50% >50%-80% of Area Median Income Severe Housing Problems* Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 445 1,420 0 White 135 544 0 Black / African American 0 20 0 Asian 0 65 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 300 775 0 Table 19 – Severe Housing Problems >50 - 80% AMI Data Source: 2011-2015 CHAS *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost burden over 50% 8.A.a Packet Pg. 182 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 54 >80%-100% of Area Median Income Severe Housing Problems* Has one or more of four housing problems Has none of the four housing problems Household has no/negative income, but none of the other housing problems Jurisdiction as a whole 200 1,250 0 White 75 540 0 Black / African American 0 0 0 Asian 0 55 0 American Indian, Alaska Native 0 0 0 Pacific Islander 0 0 0 Hispanic 125 655 0 Table 20 – Severe Housing Problems >80 - 100% AMI Data Source: 2011-2015 CHAS *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost burden over 50% Alternative Table: Disproportionately Greater Need (Jurisdiction) of Households Experiencing severe housing problems 0-30% AMI Extremely low - income 30-50% AMI Low-income 50-80% AMI Moderate-income 80-100% AMI Middle Income # % # % # % # % Jurisdiction as a Whole 2,285 73% 789 40% 445 24% 200 14% White 410 72% 154 32% 135 20% 75 12% Black / African American 75 79% 15 38% 0 0% 0 0% Asian 65 76% 30 35% 0 0% 0 0% American Indian, Alaska Native 15 100% 0 0% 0 0% 0 0% Pacific Islander 0 0% 0 0% 0 0% 0 0% Hispanic 1,690 72% 590 43% 300 28% 125 16% Discussion The Alternative Table above shows a summary and comparison of Tables 17, 18, 19, and 20, which list the number of households in the City that experience one or more severe housing problems, sorted by ethnic/racial group and income category. Based on HUD’s definition of disproportionately greater need, the following populations have a disproportionately greater because the population has one or more severe housing problems: o 100 percent of extremely low-income American Indian, Alaska Native households, as compared to 73 percent of the jurisdiction as a whole. 8.A.a Packet Pg. 183 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 55 NA-25 Disproportionately Greater Need: Housing Cost Burdens – 91.205 (b)(2) Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole. Introduction: A disproportionately greater need exists when the members of a racial or ethnic group at a given income level experience housing cost burden problems at a greater rate (10 percentage points or more) than the income level as whole. A household is considered cost burdened if it spends more than 30 percent of its income on gross housing costs. A household is considered severely cost burdened if it spends more than 50 percent of its income on gross housing costs. For renters, gross housing costs include rent paid by the tenant plus utilities. For owners, housing costs include mortgage payment, taxes, insurance, and utilities. Housing Cost Burden Housing Cost Burden <=30% 30-50% >50% No / negative income (not computed) Jurisdiction as a whole 8,615 3,314 2,984 80 White 4,035 1,180 780 10 Black / African American 104 100 90 0 Asian 730 99 70 0 American Indian, Alaska Native 15 0 15 0 Pacific Islander 0 0 0 0 Hispanic 3,535 1,890 1,985 70 Table 21 – Greater Need: Housing Cost Burdens AMI Data Source: 2011-2015 CHAS Alternative Table: Disproportionately Greater Cost Burden (Jurisdiction) <30% of Income 30-50% of Income Cost Burdened >50% of Income Severely Cost Burdened # % # % # % All Households in Jurisdiction 8,615 57% 3,314 22% 2,984 20% White 4,035 67% 1,180 20% 780 13% Black/African American 104 35% 100 34% 90 31% Asian 730 81% 99 11% 70 8% American Indian, Alaska Native 15 50% 0 0% 15 50% Pacific Islander 0 0% 0 0% 0 0% Hispanic 3,535 47% 1,890 25% 1,985 26% 8.A.a Packet Pg. 184 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 56 Discussion The Alternative Table uses the data from Table 21 to show which percentage of each racial/ethnic group in the City may experience a disproportionate cost burden or severe cost burden, compared to the jurisdiction as a whole. All households represented in this section earn betw een 0% to 80% AMI; and the All Households in Jurisdiction number is the total number of extremely low-, low-, and moderate- income households compared to all households in the City. Black/African American households in the City are both disproportionately cost burdened and severely cost burdened. American Indian, Alaska Native households are disproportionately severely cost burdened.  34 percent of Black/African American households pay more than 30 percent of their income toward gross rent, compared to 22 percent of the jurisdiction as a whole.  31 percent of Black/African American households pay more than 50 percent of their income toward gross rent, compared to 20 percent of jurisdiction as a whole.  100 percent of American Indian, Alaska Native households pay more than 50 percent of their income toward gross rent, compared to 20 percent of the jurisdiction as a whole. 8.A.a Packet Pg. 185 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 57 NA-30 Disproportionately Greater Need: Discussion – 91.205(b)(2) Tables 13 through 21 provide Comprehensive Housing Affordability Strateg y (CHAS) data from a five- year period (2011–2015), which is then used to determine whether there are racial/ethnic groups in the City that have a disproportionately greater need than the needs of that jurisdiction as a whole. Sections NA-15, NA-20, and NA-25 addressed specific housing problems. This section will address income categories as they pertain to disproportionately greater need. As defined above, a disproportionately greater need exists when the members of a specific racial/ ethnic group at a given income level experience housing problems or cost burden at a greater ratio (at least 10 percentage points or more) than that income level in the jurisdiction as a whole. Are there any Income categories in which a racial or ethnic group has disproportion ately greater need than the needs of that income category as a whole?  Extremely low-income Black/African American households have a disproportionately greater need when experiencing housing problems than extremely low-income households as a whole.  34 percent of Black/African American households pay more than 30 percent of their income toward gross rent, compared to 22 percent of the jurisdiction as a whole.  31 percent of Black/African American households pay more than 50 percent of their income toward gross rent, compared to 20 percent of jurisdiction as a whole.  Extremely low-income American Indian, Alaska Native households have a disproportionately greater need when experiencing housing problems than extremely low-income households as a whole.  Extremely low-income American Indian, Alaska Native households have a disproportionately greater need when experiencing severe housing problems than extremely low-income households as a whole.  100 percent American Indian, Alaska Native households pay more than 50 percent of their income toward gross rent, compared to 20 percent of the jurisdiction as a whole. If they have needs not identified above, what are those needs? Black/African American and American Indian/Alaska Native households have disproportionately g reater needs compared to other households in the community, and need to be targeted during CDBG program outreach in order to receive needed services, particularly housing repair programs, affordable housing programs, and job training/mainstream resources to increase income. Although Hispanic households are not found to have a disproportionate ly greater need compared to the jurisdiction as a whole, pertaining to housing problems, Hispanic persons make up 58 percent of population, which includes a large population of extremely low-income and low-income farmworkers. Due to the seasonal nature of farmwork, many households have a difficult time securing safe, habitable, and affordable housing. The SCCHA operates the Ochoa Migrant Center in Gilroy, which contains 100 family units, eight months out of the year; additionally, there are 84 units and another 37 beds available in the City and near Gilroy available for farmworkers and seasonal/migrant workers. There is a continued need for permanent affordable housing for this population in the City. 8.A.a Packet Pg. 186 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 58 Are any of those racial or ethnic groups located in specific areas or neighborhoods in your community? As discussed in MA-50, there is a minority concentration of Hispanic households in census tracts 5125.03, 5125.05, 5125.06, 5125.08, 5125.09, 5125.10, 5126.02, 5126.03, and 5126.04. 8.A.a Packet Pg. 187 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 59 NA-35 Public Housing – 91.205(b) 1. Introduction The SCCHA is the regional PHA for the City of Gilroy. The SCCHA assists approximately 11,000 households through the HCV program, operates four public housing units (in the City of Santa Clara), and owns and controls more than 2,700 affordable housing units. The affordable housing units include single, family, and senior/elderly housing units and are found throughout the County of Santa Clara. There are currently 981 Gilroy residents with tenant -based HCVs, and 91 residents on the waiting list. In addition to tenant-based vouchers, several Gilroy housing projects have been awarded project-based vouchers, including Lilly Gardens Apartments, Plum Tree West, and Parkview Apartments. In addition, there are several Low Income Housing Tax Credit properties in the City that offer affordable housing, but are not subsidized through the voucher program , such as the Sunset Gardens Senior Apartments. The City has utilized local HTF monies to fund housing and supportive service needs through local community nonprofit organizations. In the past, these have included homeless prevention, emergency rental assistance, promoting fair housing, and first-time homebuyer assistance. The program serves LMI Gilroy residents living with HIV/AIDS and provides permanent supportive housing to participants and their families. The City works collaboratively with the SCCHA in its efforts to increase federal appropriations for HCV and other affordable housing programs in Gilroy and throughout the County. In addition to the HCV program, the SCCHA manages a homeownership program for HCV participants, supportive service programs, and other affordable housing programs in Gilroy and throughout the County. Countywide efforts that include City residents include the Moving to Work (MTW) program, a federal demonstration program that links broad federal goals with locally designed initiatives. MTW encourages select housing authorities to pro pose and, upon HUD approval, implement innovative changes to the way affordable housing programs are administered. The program’s goal is to promote participants’ self - sufficiency and expand participants’ housing choices. 8.A.a Packet Pg. 188 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 60 Totals in Use Program Type Certificate Mod- Rehab Public Housing Vouchers Total Project - based Tenant - based Special Purpose Voucher Veterans Affairs Supportive Housing Family Unification Program Disabled * # of units vouchers in use 0 48 20 10,212 692 9,267 212 0 36 Table 22 – Public Housing by Program Type *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Data Source: PIC (PIH Information Center) Characteristics of Residents Program Type Certificate Mod- Rehab Public Housing Vouchers Total Project - based Tenant - based Special Purpose Voucher Veterans Affairs Supportive Housing Family Unification Program Average Annual Income 0 20,067 16,342 15,882 13,333 16,112 14,199 0 Average length of stay 0 7 5 8 1 9 0 0 Average Household size 0 2 2 2 1 2 1 0 # Homeless at admission 0 0 1 15 4 4 0 0 # of Elderly Program Participants (>62) 0 10 4 3,859 502 3,315 24 0 # of Disabled Families 0 10 6 1,784 69 1,610 85 0 # of Families requesting accessibility features 0 48 20 10,212 692 9,267 212 0 # of HIV/AIDS program participants 0 0 0 0 0 0 0 0 # of DV victims 0 0 0 0 0 0 0 0 Table 24 – Characteristics of Public Housing Residents by Program Type Data Source: PIC (PIH Information Center) 8.A.a Packet Pg. 189 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 61 Race of Residents Program Type Race Certificate Mod- Rehab Public Housing Vouchers Total Project - based Tenant - based Special Purpose Voucher Veterans Affairs Supportive Housing Family Unification Program Disabled * White 0 33 11 4,885 332 4,420 117 0 14 Black/African American 0 3 3 1,358 46 1,223 80 0 7 Asian 0 11 5 3,698 303 3,375 5 0 14 American Indian/Alaska Native 0 1 1 145 7 134 3 0 1 Pacific Islander 0 0 0 95 4 84 7 0 0 Other 0 0 0 31 0 31 0 0 0 Table 25 – Race of Public Housing Residents by Program Type *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Data Source: PIC (PIH Information Center) Ethnicity of Residents Program Type Ethnicity Certificate Mod- Rehab Public Housing Vouchers Total Project - based Tenant - based Special Purpose Voucher Veterans Affairs Supportive Housing Family Unification Program Disabled * Hispanic 0 20 8 3,217 133 3,038 38 0 7 Not Hispanic 0 28 12 6,964 559 6,198 174 0 29 Table 26 – Ethnicity of Public Housing Residents by Program Type *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Data Source: PIC (PIH Information Center) 8.A.a Packet Pg. 190 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 62 Section 504 Needs Assessment: Describe the needs of public housing tenants and applicants on the waiting list for accessible units: Section 504 of the Rehabilitation Act of 1973 prohibits discrimination on the basis of disability in programs and activities conducted by HUD or that receive financial assistance from HUD. The SCCHA Administrative Plan (Admin Plan) Section 1.8 defines a disability as “A physical or mental impairment that substantially limits one or more of the major life activities of an individual.”15 The applicant or participant must have a record of such impairment or being regarded as having such impairment. Section 1.8 also discusses the PHA’s policy on reasonable accommodations, which is summarized below:  It is designed so that persons with disabilities may fully access and use the housing program and related services.  Reasonable accommodations can be requested beginning when a family applies to a waiting list.  Applicants and participants are notified via certain PHA forms and letters of their right to apply for a reasonable accommodation.  An applicant or participant with a disability must meet the essential obligations of the assisted housing program and the lease with the owner. This requirement can be met independently or with assistance from another person or agency.  An applicant or participant, or a person on their behalf, must first request in writing or verbally the reasonable accommodation before the PHA will provide an accommodation. Currently, 17 percent of HCV participant families report a disability, countywide. Additional data on the needs of those in units or on the wait-list is unavailable. Most immediate needs of residents of Public Housing and Housing Choice voucher holders For HCV holders, the greatest needs include locating a housing unit that will accept a voucher. Voucher holders have a limited amount of time to find a housing unit that accepts a voucher, is at the fair market rent, and meets the Housing Quality Standards required by HUD. Often, voucher holders are forced to transfer their voucher to another location outside of the jurisdiction (Port -Out), accept a unit that is smaller than desirable for their family size, or move farther away from public transportation, a job, or s upport system, or otherwise risk the possibility of losing a voucher. In an attempt to lessen the stress of finding housing units that accept HCVs, the PHA created an initiative under the MTW program. In 2017, the SCCHA piloted a Landlord Initiative to provide vacancy payments to HCV landlords who re-rent their units to SCCHA program participants. In the 2020 SCCHA MTW Annual Plan, the housing authority made a request to HUD to expand upon this initiative and create an incentive program to attract new owners and landlords to rent to HCV participants. Owners and landlords that rent to voucher holders for the first time will receive a one -time bonus payment. This program was created to maintain and increase the number of housing units and choices available to HCV participant households. In 2019, Senate Bill 329 passed and no longer allow landlords/owners to refuse to rent to HCV participants. By advertising that the housing unit is not available to a voucher holder, this is a form of discrimination, and the voucher holder now has the right to apply like everyone else. The voucher holder 15 https://www.scchousingauthority.org/assets/1/6/Chapter_1_-_Policies_and_Objectives_rev._03-22-18.pdf 8.A.a Packet Pg. 191 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 63 does have to pass the same requirements as any non-voucher holder, such as a credit or past rental history check. This law was created to make more units available to voucher h olders and make the process of application fairer. How do these needs compare to the housing needs of the population at large Community stakeholders agree that there needs to be more housing options for both low -income households in the population at large and voucher holders. During stakeholder interviews, needs were discussed that included varieties and sizes of housing units, particularly near employment and transit. Ideas included conversion of larger dwellings to multiple units, as well as allowing tin y homes, particularly for youth and agricultural workers. HCV participants are much like general LMI households, in that voucher holders cannot earn more than 80% AMI in order to keep their voucher. As discussed above, voucher holders have a difficult tim e finding a housing unit, this is the same for LMI households in their search for an appropriate and affordable housing unit. Discussion The SCCHA is the regional PHA for the City of Gilroy. The City works collaboratively with the PHA to serve LMI families and find affordable housing options and solutions in the community. 8.A.a Packet Pg. 192 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 64 NA-40 Homeless Needs Assessment – 91.205(c) 1. Introduction: On a single night and throughout the early morning of January 29-30, 2019, the County of Santa Clara CoC performed the biennial PIT count. The PIT count is a count of sheltered and unsheltered people experiencing homelessness on a single night in January. HUD requires that CoCs conduct a count, every other year, of unsheltered people experiencing homelessness, which is defin ed as sleeping in a place not meant for human habitation, such as a car, park, or abandoned building. The CoC must also conduct an annual count of people experiencing homelessness who are sheltered in an emergency shelter, transitional housing, or a safe haven on a single night. The majority of the information available regarding homeless population in the City is sourced from the 2019 County PIT count. Below, the demographics of homeless persons in the County and City of Gilroy are addressed. Homeless Needs Assessment The City of Gilroy’s homeless population decreased by 2 percent from 2017 to 2019 (see Figure 3 below). In 2017, a total of 722 homeless persons were living in the City, compared to 704 in 2019. In 2019, 345 homeless persons were unsheltered and 359 were sheltered at the City’s winter shelters. The City works collaboratively and provides funding to the nonprofit Community Solutions, which offers a day program for homeless persons in the City. The City participates in countywide efforts to end homelessness by participating the Santa Clara County CoC; however, the City and County continue to have a great need for increased street outreach by a homeless services team. Street outreach by a homeless services team would meet people where they are, in order to build trust and rapport, with an ultimate goal of connecting people to services and housing. Great efforts have been made in the City and throughout the County to decrease homelessness; however, funding is insufficient to cover the amount of services and housing needed to serve the large homeless population in the area. The City does not currently have a year-round shelter, but only shelter during the winter months. Additionally, City does not have a program that participates in the Coordinated Entry System (CES), both of which would help the chronically homeless connect with housing and long -term benefits and services. The following table provides the characteristics of the homeless population at the County level. Approximately 9,706 individuals are experiencing homelessness within the County on any given night, and only 18 percent of those (1,784) will be sheltered. The primary subpopulation of those experiencing homelessness are households with only adults, as compared to households of adults with children. The survey also found that 276 unaccompanied youth are experiencing homelessness. 8.A.a Packet Pg. 193 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 65 Population Estimate the # of persons experiencing homelessness on a given night Estimate the # experiencing homelessness each year Estimate the # becoming homeless each year Estimate the # exiting homelessness each year Estimate the # of days persons experience homelessness Sheltered Unsheltered Persons in Households with Adult(s) and Child(ren) 700 221 921 *See discussion of available data in narrative below * * Persons in Households with Only Children N/A N/A N/A N/A N/A N/A Persons in Households with Only Adults 1,532 6,977 8,509 * * * Chronically Homeless Individuals 371 2,099 2,470 * * * Chronically Homeless Families N/A N/A N/A N/A N/A N/A Veterans 209 444 653 * * * Unaccompanied Youth 14 262 276 * * * Persons with HIV 29 165 194 * * * Source: Santa Clara County 2017 and 2019 Point in Time Count (PIT) and Survey Report, County-wide numbers 8.A.a Packet Pg. 194 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 66 If data is not available for the categories "number of persons becoming and exiting homelessness each year," and "number of days that persons experience homelessness," describe these categories for each homeless population type (including chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth): The following estimates were obtained using data from the 2017 and 2019 Santa Clara County Point in Time Count (Homeless Census & Survey) Estimate the # Becoming Homeless Each Year  An average of 1,420 persons in households with only adults become homeless in the County each year. From 2017 to 2019, the number of adult homeless individuals increased from 5,670 to 8,509.  An average of 74 persons with HIV become homeless in the County each year. From 2017 to 2019, the homeless persons with HIV stayed at two percent of the homeless population, however, the homeless population as a whole increased from 7,394 to 9,706 persons.  An average of 187 homeless persons become chronically homeless persons in the County each year. From 2017 to 2019, the chronically homeless count increased from 2,097 to 2,470 persons.  Overall, 36 percent or approximately one-third of those surveyed indicated that their current episode of homelessness was their first incidence of homelessness. Estimate the # Exiting Homelessness Each Year  An average of 77 persons in households with adults and children exit homelessness in the County each year. From 2017 to 2019, the number of homeless individuals in families decreased from 1,075 to 921.  An average of 187 unaccompanied youth become homeless in the County each year. From 2017 to 2019, the number of unaccompanied youth decreased from 649 to 276.  An average of 4 Veterans exit homelessness in the County each year. From 2017 to 2019, the number of homeless veterans decreased from 660 to 653.  Approximately two-thirds of those surveyed said they had experienced homelessness previously and that this was not their first incidence of homelessness. Moreover, 35 percent experienced homelessness for the first time between the ages of 0 to 24. Estimate the # of Days Persons Experience Homelessness During the 2019 PIT count, 1,335 homeless persons were asked about the length of their current episode of homelessness. Overall, only a small percentage (6%) had been homeless 30 days or less, while most (94%) had experienced homeless for more than a month, and of those 67 pe rcent had experienced homeless for one year or more.  2 percent reported they had been homeless seven days or less  4 percent reported they had been homeless 8-30 days  6 percent reported they had been homeless 1-3 months  12 percent reported they had been homeless 4-6 months  9 percent reported they had been homeless 7-11 months  67 percent reported they had been homeless one year or more 8.A.a Packet Pg. 195 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 67 There is no data available on chronically homeless families or households with only children. Nature and Extent of Homelessness: (Optional) Source: Santa Clara County 2019 Point in Time Count (PIT) and Survey Report Estimate the number and type of families in need of housing assistance for families with children and the families of veterans. The City does not have an estimate of the number and type of families or veterans experiencing homelessness in the area; however, the 2019 County PIT count identified 269 homeless families with children living in the County. Families with children encompassed a total of 921 household members, an average of 3.4 persons per household. The total number of families in the County make up 9.5 percent of all homeless individuals counted. Of these families with children, 24 percent are unsheltered. As discussed in NA-10, LMI households are more likely to become homeless than the general population due to housing problems and special needs. Although there is no data regarding the number of homeless families with children in the City, NA-10 discusses the number of households that identify as families and are also extremely low-, very low-, low, and moderate-income households. The comparisons below are based on the total number of households in the jurisdiction. 8.A.a Packet Pg. 196 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 68  Small families are defined as having 2-4 household members. o There are 2,974 LMI (43 percent) small family LMI households in the City.16  Large families are defined as having 4 or 5 or more members. o There are 1,579 LMI (23 percent) large family LMI households in the City.17  2,048* LMI (29 percent) households in the City report having one or more children aged 6 or younger in the household. *This number is duplicative of the numbers above.  The PIT count also identified 653 homeless veterans, of which 68 percent were unsheltered. Veterans make up 6.7 percent of all homeless, countywide. o In 2015, there were 1,953 total veterans living in the City of Gilroy.18- Describe the Nature and Extent of Homelessness by Racial and Ethnic Group. There are no numbers on the City level for the number of homeless persons by race. However, numbers exist for Santa Clara County as a whole. For 2019, the racial breakout is as follows:  44% white  24% multi-racial/other  19% black  8% American Indian/ Alaskan Native  3% Asian  2% Native Hawaiian or Pacific Islander According to the 2019 County PIT Count, 43 percent of respondents indicated that they were of Hispanic/Latinx origin, which was much higher than the general population (26 percent). Additionally, as discussed in NA-15, NA-20, and NA-25, certain racial/ethnic groups in the City may have a disproportionately greater need than the jurisdiction as a whole, with regard to housing problems that are known to lead to homelessness. Hispanic households in the City are disproportionately cost burdened. Describe the Nature and Extent of Unsheltered and Sheltered Homelessness. Homelessness in Santa Clara County increased 31 percent from 2017 to 2019, with the highest number counted on record, since 2007, of 9,706 persons counted in 2019. Persons experiencing homelessness in the County tend to be longtime residents of the County, as 81 percent reported Santa Clara County as their residence prior to becoming homeless, and 57 percent of persons report ed living in the County for ten years or more. Additionally, 67 percent of persons experiencing homelessness in the County report their current episode of homelessness as lasting one year or longer. Persons experiencing homelessness might be living in a shelter or are unsheltered, as defined below: Unsheltered homeless are persons sleeping at least one night in places not meant for human habitation, such as parks, sidewalks, alleys, fields, abandoned buildings, etc. 16 2011-2015 ACS 17 2011-2015 ACS 18 2011-2015 ACS 8.A.a Packet Pg. 197 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 69 Sheltered homeless are persons sleeping at least one night in one of the following: emergency shelters, transitional shelters for the homeless, domestic violence shelters, residential programs for runaway/homeless youth, or any hotel/motel/apartment voucher arrangements paid by a public/private agency because the person or family is homeless. Within Santa Clara County, 82 percent of homeless persons are unsheltered. During the 2019 County PIT Count, 49 percent of the City’s homeless population were found to be unsheltered, as the homeless population consisted of 345 unsheltered individuals and 359 sheltered i ndividuals. The unsheltered population of the City is concentrated in the east side of the City, as well as in Glenview neighborhood. A considerable number of homeless persons are found in census tracts 5126.03 and 5126.04, including in the downtown and the CDBG target area. Most of Gilroy’s providers of homeless services are located in nearby census tract 5125.06, as is the National Guard Armory, which provides a cold weather shelter. 5126.04 is 0.7 miles from many service providers and 5126.03 is 1.8 mil es from the service providers. CDBG Target Area 8.A.a Packet Pg. 198 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 70 The City does not have a large number of beds available for homeless families. The beds available for single adults or families are seasonal and only available during inclement .19 19 2017 County of Santa Clara Housing Inventory Count (HIC) Type of Housing Name of Program Beds Available Population Served 8.A.a Packet Pg. 199 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 71 2017 County of Santa Clara Housing Inventory Count Focus group participants discussed the idea of the City allowing tiny homes for both transitioning youth as well as agricultural workers as an affordable alternative to housing. Additionally, the group pointed out the large number of transitional housing beds for families but found that one of the most pressing housing problems in the City is the gap between transitional housing and permanent housing. Discussion The 2019 County PIT count showed a 2 percent decrease in the City’s homeless population compared to the previous 2017 count, specifically from 722 persons in 2017 to 704 persons in 2019. By comparison, in the same time frame, the County overall saw an increase of 31 percent. The sections above (NA-10, NA- 15, NA-20, NA-25, NA-30) discuss many housing problems that lead to homelessness as well as possible community solutions that could prevent or decrease homelessness. Additionally, this section (NA-40) addresses the immediate needs of individuals and families currently experiencing homelessness. The City currently has 299 shelter beds available and 20 transitional housing beds for single adults and families with children. However, of these shelter beds, 285 of the shelter beds are seasonal and only available during inclement weather, or during the wint er months. Additionally, there are 345 unsheltered individuals, realistically leaving a need for approximately 630 year-round beds in a variety of locations and types, e.g., single person shelters, harm reduction shelters, transitional housing, car parks, family shelters, and shelters that allow pets. Transitional Housing El Invierno TH Gilroy 12 Single Adults Transitional Housing Walnut Lane Home TH 8 Single Adults Emergency Shelter Gilroy Armory Inclement Weather 50 Single Adults – seasonal beds Emergency Shelter Gilroy Nightly Shelter 130 Single Adults – seasonal beds Emergency Shelter Ochoa Winter Family Shelter 105 Families – seasonal beds Emergency Shelter La Isla Pacifica 14 Families with children 8.A.a Packet Pg. 200 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 72 NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) 1. Introduction: For the purposes of the Consolidated Plan, this section will address special needs populations as defined by HUD. The following section addresses the needs of persons who are not homeless but require supportive housing. The special needs populations considered in this section are the following:  Elderly households (defined as 62 and older)  Frail elderly (defined as an elderly person who requires assistance with three or more activities of daily living, such as bathing, walking, or performing light housework)  Persons with disabilities (mental, physical, and/or developmental disabilities)  Persons with alcohol or other drug addiction  Persons living with HIV/AIDS and their families  Victims of domestic violence, dating violence, sexual assault, and stalking Describe the characteristics of special needs populations in your community: Elderly and Frail Elderly Households As of 2017, the City had 6,714 (13 percent)20 individuals 62 or older and 4,173 (28 percent)21 households with at least one person 62 or older. The previous City five-year Consolidated Plan showed similar numbers, with 9 percent22 of individuals 65 or older and 27 percent23 of households containing at least one person over the age of 62. Of the elderly households in the City, 7 percent are extremely low income, 3 percent are very low income, and 5 percent are low income. Households with Disabilities According to the 2013-2017 ACS 5-Year Estimates, 3,863 persons (8 percent) in the City has one or more disability: 284 (0.63 percent) of residents aged 5-17; 2,036 (4.49 percent) of residents aged 18-64; and 1,543 (3.4 percent) of residents aged 65 or older. Federal nondiscrimination laws define a person with a disability to include any (1) individual with a physical or mental impairment that substantially limits one or more major life activities; (2) individual with a record of such impairment; or (3) individual who is regarded as having such an impairment. In general, a physical or mental impairment includes, but is not limited to, examples of conditions such as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dys trophy, multiple sclerosis, cancer, heart disease, diabetes, human immunodeficiency virus (HIV), developmental disabilities, mental illness, drug addiction, and alcoholism.24 ACS data consists of six broad disability categories that show characteristics of residents with disabilities. Disabled persons in the City reported at least one of the following and, in some cases, more than one: 20 2011-2015 ACS 21 2011-2015 CHAS 22 2008-2012 ACS 23 2007-2011 CHAS 24 https://www.hud.gov/program_offices/fair_housing_equal_opp/disability_overview 8.A.a Packet Pg. 201 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 73  hearing difficulty: 995 (2.19 percent)  vision difficulty: 581 (1.28 percent)  cognitive difficulty: 1,305 (2.88 percent)  ambulatory difficulty: 1955 (4.31 percent)  self-care difficulty: 946 (2.08 percent)  independent living difficulty: 1,345 (2.96 percent) Persons with alcohol or other drug addiction Alcohol and other drug (AOD) addiction is a disability under federal law. The City does not have data on persons or households that experience AOD addiction and narrowing down these numbers in a non- homeless population tends to be a challenge. Even the data that does exist is at the state level and is not current. During the 2006-2007 fiscal year, the State of California collected data from all clients at entry and exit of AOD treatment facilities in all 58 counties. The California Department of Alcohol and Drug Programs then developed the California Outcomes Measurement Systems data collection report, which included the following:  Of the clients entering the AOD facilities, 64.2 percent were male, compared to 35.8 percent female.  Clients tended to be middle-aged with 53.7 percent aged 26 to 45 years old; followed by 24.4 percent aged 46 to 64; then 15.5 percent aged 18 to 25.  Race/ethnicity of those entering an AOD facility were as follows: 43.4 percent white; 33.9 percent Hispanic/Latino; 15.2 percent black; 3.5 percent other; 2.4 percent Asian/Pacific Islander; and 1.6 percent American Indian/Alaska Native. Persons living with HIV/AIDS and their families HIV/AIDS data is available at a County level and state level. In the County, according to the California Department of Public Health, Office of AIDS, there were 156 newly diagnosed cases of HIV in 2017 in Santa Clara County. From 2013 to 2017, the average rate of new diagnoses was 2.9 percent in 2013, 3.2 percent in 2014, 3.1 percent in 2015, 2.7 percent in 2016, and 3.3 percent in 2017.25 Countywide, in 2017, males represent 86 percent of people living with HIV. The prevalence of HIV among males was more than 6 times the prevalence among females. Broken down by race, white represented 34 percent, Hispanic/Latino 40 percent, African American 11 percent, and Asian/Pacific Islander 12 percent. People aged 45 to 64 had the highest rates.26 Victims of domestic violence, dating violence, sexual assault, and stalking City level data is not available; however, state-level data is available through the National Coalition of Domestic Violence. In California, 32.9 percent of women27 (1 in 3 women)28 and 27.3 percent of men29 (1 25 California HIV Surveillance Survey 2017 https://www.cdph.ca.gov/Programs/CID/DOA/CDPH%20Document%20Library/California%20HIV%20Surveillance%20Report%20- %202017.pdf 4 HIV Epidemiology Annual Report County of Santa Clara 2017. https://www.sccgov.org/sites/phd/hi/hd/Documents/hiv-report-2017.pdf 27 Centers for Disease Control and Prevention (2014). Lifetime prevalence of rape, physical violence, and/or stalking by an intimate partner by state of residence—U.S. women, NISVS 2010. Retrieved from http://www.cdc.gov/violenceprevention/nisvs/state_tables_74.html. 28 0 Black, M.C., Basile, K.C., Breiding, M.J., Smith, S.G., Walters, M.L., Merrick, M.T., Chen, J., & Stevens, M. (2011). The national intimate partner and sexual violence survey: 2010 summary report. Retrieved from http://www.cdc.gov/violenceprevention/pdf/nisvs_report2010- a.pdf. 8.A.a Packet Pg. 202 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 74 in 4 men)30 experience intimate partner physical violence, intimate partner sexual violence , and/or intimate partner stalking in their lifetimes. Domestic violence is most common among women between the ages of 18 and 24.31 What are the housing and supportive service needs of these populations and how are these needs determined? Elderly and frail elderly residents generally face a unique set of housing needs, largely due to ph ysical limitations, lower household incomes, and the rising costs of health care. Unit sizes and access to transit, health care, and other services are important housing concerns for this population. Housing affordability represents a key issue for the elderly, many of whom are living on fixed incomes. The demand for elderly housing serving various income levels is expected to increase as the baby boom cohorts further age. Community stakeholders see a very important need for housing for the aging population of the City and made many suggestions to help elderly households stay housed or find affordable housing. These suggestions include classes to teach technology (transportation to the classes included); access to nutrition information and healthy food for homebound households; retrofitting current housing and building affordable housing that is ADA accessible, including bedrooms, kitchens, and bathrooms; and partnerships/oversight of elderly care facilities in the area. Households with disabilities may need affordable housing, particularly if they receive federal Social Security benefits or have additional medical costs. Disabled households may also need an accessible housing unit, which may include being on the first floor or in a complex that has an elevator; have an accessible bathroom and/or kitchen facilities; or be accessible units for the deaf or hard of hearing that include special doorbells, intercoms, and smoke alarms. In addition to housing needs, some households may need supportive services such as transportation, education, life skills, and case management to continue to live independently. Community stakeholders noted the need for more accessibility around town as well. This would include wheelchair ramps, curb cuts, bathrooms, sidewalks, and handrails. Additionally, stakeholders feel there needs to be an increase in advocacy for additional accessible housing units during the planning phase of affordable communities. Persons with AOD addiction need low or no barrier affordable housing when exiting an AOD facility. They may have lost their housing or job or have a criminal background due to their past addiction, and housing stability is important to continue in their recovery or to a harm reduction model of living. The County of Santa Clara offers substance use treatment services through the MediCal and the County Department of Behavioral Health. Stakeholders see a gap in services available for this population and feel that additional supportive services are necessary. Living with a disability or chr onic health condition, there is a need for nutrition and food subsidies, particularly for those under 60 that do not already qualify for additional help. This may mean collaborating with other service entities to provide routine nutrition and food delivery services or creating and expanding food storage areas, particularly to food desert areas. Stable and affordable housing available to persons living with HIV/AIDS and their families helps provide a more consistent level of access to medical care and supportive services that are necessary for the well- being of households directly affected by HIV/AIDS. Stable and affordable housing can also result in fewer hospitalizations and decreased emergency room care. Persons living with HIV/AIDS are at a higher risk 29 Centers for Disease Control and Prevention (2014). Lifetime prevalence of rape, physical violence, and/or stalking by an intimate partner by state of residence—U.S. women, NISVS 2010. Retrieved from http://www.cdc.gov/violenceprevention/nisvs/state_tables_74.html. 30 0 Black, M.C., Basile, K.C., Breiding, M.J., Smith, S.G., Walters, M.L., Merrick, M.T., Chen, J., & Stevens, M. (2011). The national intimate partner and sexual violence survey: 2010 summary report. Retrieved from http://www.cdc.gov/violenceprevention/pdf/nisvs_report2010- a.pdf. 31 iiTruman, J. L. & Morgan, R. E. (2014). Nonfatal domestic violence, 2003-2012. Retrieved from http://www.bjs.gov/content/pub/pdf/ndv0312.pdf. 8.A.a Packet Pg. 203 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 75 of losing their housing due to increased medical costs and limited incomes or reduced ability to keep working due to related illnesses. In addition to affordable housing, housing assistance, such as short -term rental or mortgage payment assistance, may prevent homelessness among persons with HIV/AIDS and their families. Households may also need supportive services such as transportation to medical appointments, and case management particularly for connection to mainstream services and counseling for the family. Victims of domestic violence, dating violence, sexual assault, and stalking can fall into homelessness if they do not have enough support and financial resources when leaving their abuser. The Santa Clara PIT count indicated that 6 percent of all survey respondents reported currently experiencing domestic/partner violence or abuse, and 27 percent indicated they had been abused by a relative or someone they stayed with at some point in their lifetime. Community stakeholders reported seeing a recent increase in domestic violence victims and the need for an increase in services. Vict ims need affordable, safe, and confidential housing which may be a shelter, transitional or rapid rehousing, or permanent housing. Additionally, victims need supportive services such as case management, counseling, transportation, connection to mainstream resources, job training, and life skills. Discuss the size and characteristics of the population with HIV/AIDS and their families within the Eligible Metropolitan Statistical Area: The County of Santa Clara identified a total of 3,502 individuals living with HIV as of 2017. Of those individuals, 2,724 (77.8%) are currently in treatment and 2,315 (66.1%) are virally suppressed.32 Statistics break down further to show that 86 percent persons living with HIV are male, 13 percent are female, and 1 percent are transgender. Furthermore, 34 percent of persons living with HIV are white, 40 percent are Latino, 11 percent are African American, and 12 percent are Asian or Pacific Islander.33 Those with late HIV diagnoses, defined as having an AIDS diagnosis within three months of an HIV diagnosis, are typically older (44% are 40 years or older), female (36%), and African American (38%). The most common transmission modes related to late HIV diagnoses are other/unknown and intravenous drug use.34 Discussion Community stakeholders addressed needs and priorities that encompass all special needs populations. This includes using funding for training of counselors and referral personnel for programs within the Continuum of Care that serve persons in the City. Community members o verwhelmingly voiced concerns over the need for repairs to sidewalks, which would make them safer for both the elderly, and those with physical disabilities. 32 HIV Epidemiology Annual Report County of Santa Clara 2017 https://www.sccgov.org/sites/phd/hi/hd/Documents/hiv-report-2017.pdf 33 California HIV Surveillance Survey 2017 https://www.cdph.ca.gov/Programs/CID/DOA/CDPH%20Document%20Library/California%20HIV%20Surveillance%20Report%20- %202017.pdf 34 HIV Epidemiology Annual Report County of Santa Clara 2017 https://www.sccgov.org/sites/phd/hi/hd/Documents/hiv-report-2017.pdf 8.A.a Packet Pg. 204 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 76 NA-50 Non-Housing Community Development Needs – 91.215 (f) The online survey available as part of the Consolidated Plan’s community outreach was particularly successful in Gilroy. Although not every person answered every question, a total of 157 persons took the online survey and 355 persons submitted a paper survey. Describe the jurisdiction’s need for Public Facilities: Respondents ranked the following public facilities as high priority in regard to adding additional or updated locations in the City:  70 percent – facilities for children who are abused, abandoned and/or neglected  68 percent - mental health care facilities  59 percent – educational facilities  59 percent – senior centers  59 percent – youth centers  56 percent – healthcare facilities  50 percent – drop-in day center for people who are homeless How were these needs determined? Community needs were determined through extensive community engagement efforts including a resident survey, which was available online, and in four languages; stakeholder interviews; community forums; and pop-up events. The survey and pop-up events sought to solicit feedback from County and City residents, while stakeholder interviews and community forums focused on community development practitioners and experts.  512 City resident survey responses were received, of which 286 were in English, 224 in Spanish, 2 in Chinese, and 2 in Vietnamese.  Approximately 22 stakeholders participated in the process.  An additional 45 attendees provided feedback at community engagement workshops and focus groups.  Four total pop-up events were held Countywide, and three surveys were completed.  Two focus groups were held with a total of seven persons in attendance from seven different agencies, including one held at the Gilroy public library. Describe the jurisdiction’s need for Public Improvements: Respondents ranked the following as a high need in regard to public improvements in the City:  77 percent -- street improvements  72 percent – cleanup of contaminated sites  66 percent – sidewalk improvements  66 percent – lighting improvements  66 percent – stormwater and drainage improvements 8.A.a Packet Pg. 205 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 77 Priorities from the Gilroy focus group included revitalizing older City infrastructure, particularly accessibility for elderly persons and persons with disabilities. How were these needs determined? See the description of community engagement above. Describe the jurisdiction’s need for Public Services: Respondents ranked the following as a high need in regard to public services in the City:  73 percent – mental health services  73 percent – services for children who are abused, abandoned, and or neglected  71 percent – neighborhood cleanups (trash, graffiti, etc.)  69 percent – youth services  68 percent – crime awareness and prevention services  67 percent – homeless services  67 percent – emergency housing assistance to prevent homelessness – such as utility assistance and rental assistance  65 percent – employment training services  64 percent – Veteran services  63 percent – access to fresh and nutritious foods  63 percent – batter and abused spouses services  63 percent – childcare services  62 percent – financial literacy  Priorities from the Gilroy focus group included homeless ness prevention programs, including education and job/housing placement; assistance to disabled persons; and services for special needs populations, particularly single-income families, elderly, disabled and homeless youth. Feedback from community members included creating higher -paying jobs in the City so residents can work where they live; and improve health and safety – particularly mental health options for low-income families How were these needs determined? See the description of community engagement above. 8.A.a Packet Pg. 206 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 78 HOUSING MARKET ANALYSIS MA-05 Overview Housing Market Analysis Overview: As discussed in the Needs Assessment, the San Jose-Gilroy-Santa Clara, CA HUD Metro Fair Market Rent Area is one of the most expensive rental markets in the nation. Rental housing throughout the County is becoming increasingly more expensive and the affordability gap is widening. This is also true for the City itself. While home prices have decreased, the City is not immune to increasing problems in the rental market. An adequate housing supply is critical to keeping housing affordable, and affordable housing is among the most important contributors to household welfare. When considering the difference between income growth and rental housing costs, the need for more affordable housing—not just for the lowest-income residents, but also for a large number of low- and moderate- income working families—becomes clear. Overall, there is a strong need for a diverse mixture of new housing stock to serve the needs of the region’s current and future population. 8.A.a Packet Pg. 207 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 79 MA-10 Number of Housing Units – 91.210(a)&(b)(2) 1. Introduction Housing stock in Gilroy mostly consists of single-family units; about 70 percent of housing units fall into this category, and about 30 percent are multi-family units. Overall, the housing stock has slightly increased since the last Consolidated Plan period (2007-2011), rising by 2 percent. In the City, more units are owner-occupied versus renter-occupied, representing 56 percent of the housing stock; however, the number of rental housing units has significantly decreased. To illustrate, the number of owner-occupied units has slightly decreased since 2011 by a rate of 4 percent and, since the last Consolidated Plan period, the growth of rental housing units has increased by 17 percent. All residential properties by number of units Property Type Number % 1-unit detached structure 9,805 64% 1-unit, attached structure 920 6% 2-4 units 1,970 13% 5-19 units 1,495 10% 20 or more units 750 5% Mobile home, boat, RV, van, etc 380 2% Total 15,320 100% Table 31 – Residential Properties by Unit Number Data Source: 2011-2015 ACS Unit Size by Tenure Owners Renters Number % Number % No bedroom 140 2% 180 3% 1 bedroom 45 1% 965 15% 2 bedrooms 705 8% 2,710 43% 3 or more bedrooms 7,730 90% 2,510 39% Total 8,620 101% 6,365 100% Table 32 – Unit Size by Tenure Data Source: 2011-2015 ACS Describe the number and targeting (income level/type of family served) of units assisted with federal, state, and local programs. Approximately 1,050 assisted housing units exist in Gilroy; approximately 220 units of those units are funded through HUD Section 811 Supportive Housing for Persons with Disabilities, HOME funds, or HUD Project-based Section 8 program funds; and approximately 830 housing units are funded through Low- Income Housing Tax Credits (LIHTC).35 The City also houses approximately 980 participants through the HCV program.  The HUD project-based Section 8 program contracts with owners of multifamily rental housing developments. Tenants are families whose income do not exceed 50% AMI and a limited number 35 http://www.ci.gilroy.ca.us/290/Housing-Element 8.A.a Packet Pg. 208 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 80 of available units may be rented to low-income families whose incomes are between 50% and 80% AMI. All households pay no more than 30 percent of their adjusted gross income.36  LIHTC provides tax incentives, written into the Internal Revenue Code, to encourage developers to create affordable housing. Tenants eligible for LIHTC properties in Gilroy have income no greater than 60% AMI. Rent is not based on a tenant’s income but set by the use restriction tied to the unit. Tenants pay 30% of the AMI. This is calculated with an assumed family size of 1.5 persons per bedroom.37  HUD HOME Investments Partnership Program (HOME) rent does not exceed 30 percent of the annual income of a family whose income equals 50% AMI or less.38  HUD Section 811 allows persons with disabilities to live as independently as possible through subsidized rental housing with supportive services. Tenants must be 30% to 50% AMI and have a disability. All households pay no more than 30 percent of adjusted gross income.39  Participants of the HCV program living in the City are assisted through the SCCHA. For this program specifically, general targets according to the housing authority stipulate 75 percent of recipients to be in the extremely low-income bracket (0-30% AMI), while the remaining 25 percent to be no higher than the very low-income bracket (50% AMI or less). However, exceptions can be made on a case-by-case basis, and families up to the 80% AMI bracket will not be barred from assistance.40 HCV participants typically pay 30 percent of their adjusted gross income toward their rent; however, the SCCHA is a Moving to Work (MTW) Housing Authority, and one of the HUD-approved MTW activities is to increase the participant rent amount to 32 percent. Therefore, HCV participants in Gilroy pay 32 percent of their adjusted gross income toward rent.41 Provide an assessment of units expected to be lost from the affordable housing inventory for any reason, such as expiration of Section 8 contracts. There are no units at risk of conversion during this Consolidated Plan period (2020-2025). Does the availability of housing units meet the needs of the population? Availability of housing is not an issue for the City. The housing stock is sufficient to meet the total needs of the population; however, there are other problems which will be explored f urther in following sections. This includes a need for affordable housing units, and issues with housing cost burden. These needs of the population will be explored in sections including MA-15, MA-20, and MA-40. In addition, they are identified in various Public Outreach (PR) sections and Needs Assessment sections. Additional affordable housing units would help low-to-moderate-income (LMI) and special needs populations; however, the housing voucher waiting list is currently closed for the City and County. Describe the need for specific types of housing. Sections in the Needs Assessment outline specific needs for the City, and these also point to needs for housing. This includes housing for the homeless and those at imminent risk of homelessness and special needs populations, such as, elderly and frail elderly households, disabled households, AOD households, persons living with HIV/AIDS and their families, and victims of domestic violence and their minor children. These populations are more likely to need housing assistance. Since the City and County housing 36 https://www.hud.gov/hudprograms/rs8pbra 37 https://www.nhlp.org/resources/lihtc-admissions-rents-grievance-procedures/ 38 https://www.hudexchange.info/programs/home/home-rent-limits/ 39 https://www.hud.gov/program_offices/housing/mfh/progdesc/disab811 40 24 CFR § 982.201 - Eligibility and targeting 41 https://www.scchousingauthority.org/assets/1/6/Chapter_4_-_Factors_Related_to_Total_Tenant_Payment_and_Family_Share_ Determination_rev._08-01-19.pdf 8.A.a Packet Pg. 209 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 81 voucher waiting list is currently closed, these populations continue to represent a specific housing need for the City. Availability of affordable rental housing is important for affordability Citywide. Recent trends outlined in the housing data for this section show a decrease in owner -occupied units, paired with a 17.3 percent rise in renter-occupied units. If a portion of these new rental units are not affordable for LMI populations, it will continue to cause housing cost burden in the City. Discussion Overall, there has been a rise in renter-occupied units in the City, which highlights the need to keep affordability attainable in the rental housing market. Recent state laws have streamlined development of various housing product types, including multi-family units and ADUs. As the above data identifies a significant amount of single-family development units in Gilroy, based on the legislative changes it can be anticipated that the housing stock over the next five-year period may shift to include more variety of housing types. 8.A.a Packet Pg. 210 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 82 MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) 1. Introduction Housing affordability is an important factor for evaluating the housing market as well as quality of life, as many housing problems relate directly to the cost of housing. HUD standards measure affordability by the number of households paying no more than 30 percent of their gross income toward housing costs, including utilities. As stated in the Needs Assessment, cost burden is the most common housing problem in the City. While it can affect the overall population, it is especially prevalent for LMI households in the City. Overall, 31 percent of all households in the City are both LMI and spend too much on their housing. In addition, severe housing cost burden is the second most prevalent housing problem within the City, as 18.5 percent of households are both LMI and severely cost burdened when paying for housing (paying more than 50 percent of gross income toward housing costs). As show in Table 33 renter households must earn high incomes to afford a market -rate apartment. This causes the area to be one of the most expensive rental markets in the nation. Cost of Housing Base Year: 2010 Most Recent Year: 2015 % Change Median Home Value $592,300 $478,500 (19%) Median Contract Rent $1,167 $1,432 23% Median Income $71,340 $83,027 16% Table 33 – Cost of Housing Data Source: 2005-2009 ACS (Base Year), 2011-2015 ACS (Most Recent Year) Rent Paid Number % Less than $500 397 6% $500-999 936 15% $1,000-1,499 2,113 34% $1,500-1,999 1,519 24% $2,000 or more 1,320 21% Total 6,285 100% Table 34 – Rent Paid Data Source: 2011-2015 ACS Housing Affordability % Units affordable to Households earning Renter Owner 30% HAMFI 650 No Data 50% HAMFI 1,920 335 80% HAMFI 4,220 675 100% HAMFI No Data 1,430 Total 6,790 2,440 Table 35 – Housing Affordability Data Source: 2011-2015 ACS 8.A.a Packet Pg. 211 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 83 Monthly Rent Monthly Rent ($) Efficiency (no bedroom) 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Fair Market Rent (City) $1,120 $1,310 $1,670 $2,355 $2,875 High HOME Rent (County) $1,165 $1,250 $1,502 $1,727 $1,906 Low HOME Rent (County) $931 $997 $1,196 $1,382 $1,542 Table 36 – Monthly Rent Data Source: HUD FMR and HOME Rents 2015 (average for Gilroy zip codes 95020 and 95021) – HOME Rents for Santa Clara County overall (Data for Gilroy alone not available) Is there sufficient housing for households at all income levels? In the City, housing need does not align with the availability of affordable housing. This is especially true for LMI households. For example, there are approximately 3,130 extremely low-income households in the City, yet there are only 650 affordable rental units for this population. This disparity represents a cruc ial need for the City to meet its needs for LMI affordable housing. How is affordability of housing likely to change considering changes to home values and/or rents? Data for home values in the City shows that homeownership may be increasingly affordable to residents. Median home value decreased by nearly 20 percent Citywide in just a five-year period from 2010 to 2015, while area income grew over 16 percent. Therefore, growth in area appears to be rising while housing costs appear to be plummeting. However, affordability for rental units is different than the current situation for ownership. Although area income appears to be increasing, the expansion of rental cost in the City is outpacing the growth of income, which could lead to further rental affordability problems. Median rents rose by nearly 23 percent in the five-year period from 2010 to 2015. If rental prices continue to increase more rapidly than income, housing cost burden will continue to be a housing problem for the City. To combat rent gouging and the lack of supply and affordability of housing, and to slow the increase of rent in all areas of California, on October 8, 2019, the California governor sign ed into law AB 1482 Tenant Protection Act of 2019. AB 1482 states: “[subject to division b] an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase.” Although the state has passed a law to protect tenants regarding rent increases, stakeholders would like to see the City create local policies and advocate for rent and housing value stabilization. How do HOME rents / Fair Market Rent compare to Area Median Rent? How might this i mpact your strategy to produce or preserve affordable housing? Median contract rent for the City in 2015 stood at $1,432 per month. This is higher than HUD FMRs for studio and one-bedroom apartments. In addition, the median rent is higher than all Low HOME Rent levels except for four or more bedroom apartments, and higher than 0 -1 bedroom apartments in the High HOME Rent categories. Given the affordability problems that have already been outlined for LMI residents, strategies that preserve affordability for these populations is important for the City. Given that most private market rents are higher than what HUD deems to be affordable, this emphasizes the need for programs such as the 8.A.a Packet Pg. 212 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 84 HCV program in the City. However, this will continue to be a problem until the waiting list for this program reopens. Discussion While home values have decreased in the City since the time of the last Consolidated Plan, rental prices continue to outpace income growth. This has caused a lack of affordable rental housing units in the City, especially for LMI residents. In addition, In November 2016, County voters approved Measure A – the $950 million affordable housing bond. The housing bond provides the County with an unprecedented opportunity to partner with cities, residents, and the affordable and supportive housing community to significantly address the housing needs of the community’s poorest and most vulnerable residents. It will provide affordable housing for vulnerable populations including veterans, the elderly, persons with disabilities, low- and moderate- income individuals or families, foster youth, victims of abuse, the homeless and individuals suffering from mental health or substance abuse illnesses. The bond proceeds would contribute to the creation and/or preservation of approximately 4,800 affordable housing units. The Housing Bond will enhance the County’s ability to achieve its housing priorities which include:  Increasing the scope and breadth of supportive housing for special needs populations, including homeless and chronically homeless persons;  Increasing the supply of housing that is affordable to extremely low-income (ELI) households; and,  Improving coordination and collaboration among the County, the cities, other governmental agencies, and the affordable housing community. The County of Santa Clara and its partners have moved quickly to utilize the bond funds, which are projected to fund 120 new affordable housing developments over ten years, including 4,800 new units dedicated to extremely low-income households and individuals, f amilies exiting homelessness, and other underserved populations. The City has already benefitted from Measure A funding; a 75-unit apartment complex is under construction on Monterey Road. Gateway Senior Apartments is a new affordable housing complex where 37 of the units are reserved for seniors with special needs, and 37 units will go to income-qualifying seniors. 8.A.a Packet Pg. 213 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 85 MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) 1. Introduction The County defines substandard housing as buildings or units that are not in compliance with the California Health and Safety Code. This includes units having structural hazards; faulty weather protection; fire, health and safety hazards; or lacking complete kitchen or plumbing facilities. Standard condition housing is defined as being in compliance with the California Health and Safety Code. Concern for the City would include risk of lead-based paint hazards in households built before 1980, which represents 38 percent of all owner-occupied units in the City, and 50 percent of all renter-occupied units in the City. Definitions HUD defines housing “conditions” similarly to those of housing problems previously discussed in the Needs Assessment. These conditions are: 1. More than one person per room 2. Cost burden greater than 30 percent 3. Lack of complete plumbing 4. Lack of complete kitchen facilities Condition of Units Condition of Units Owner-Occupied Renter-Occupied Number % Number % With one selected Condition 2,910 34% 3,280 52% With two selected Conditions 95 1% 705 11% With three selected Conditions 0 0% 0 0% With four selected Conditions 0 0% 0 0% No selected Conditions 5,615 65% 2,375 37% Total 8,620 100% 6,360 100% Table 37 – Condition of Units Data Source: 2011-2015 ACS Year Unit Built Year Unit Built Owner-Occupied Renter-Occupied Number % Number % 2000 or later 2,030 24% 1,040 16% 1980-1999 3,280 38% 2,140 34% 1950-1979 2,765 32% 2,710 43% Before 1950 555 6% 470 7% Total 8,630 100% 6,360 100% Table 38 – Year Unit Built Data Source: 2011-2015 CHAS 8.A.a Packet Pg. 214 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 86 Risk of Lead-Based Paint Hazard Risk of Lead-Based Paint Hazard Owner-Occupied Renter-Occupied Number % Number % Total Number of Units Built Before 1980 3,320 38% 3,180 50% Housing Units built before 1980 with children under the age of 6 present 2,275 26% 1,135 18% Table 39 – Risk of Lead-Based Paint Data Source: 2011-2015 ACS (Total Units); 2011-2015 CHAS (Units with Children present)Vacant Units Suitable for Rehabilitation Not Suitable for Rehabilitation Total Vacant Units 203 - 203 Abandoned Vacant Units - - - REO Properties 3 - 3 Abandoned REO Properties - - - Table 40 – Vacant Units Data Source: Re.com and Realtytrac.com Need for Owner and Rental Rehabilitation Characteristics commonly used to evaluate the housing supply include age of housing stock, the number of vacant/abandoned units, and the risk of lead-based paint (LBP). Unless carefully maintained, older housing stock can create health and safety problems for occupants. As seen in Table 39, there is nearly an even amount of owner-occupied and renter-occupied units in the City that were built before 1980, representing about 42.4 percent of the housing stock. Estimated Number of Housing Units Occupied by Low or Moderate Income Families with LBP Hazards Building age is used to estimate the number of homes with LBP, as LBP was prohibited on residential units after 1978. For the purposes of this plan, units built before 1980 are used as a baseline for units that contain LBP. A little over 42 percent (6,500) of all housing units were built before 1980 and have potential exposure to LBP. As explained in the Needs Assessment, 46 percent of the households (6,969 households) in the City are LMI (0-80% AMI). Using this percentage as a baseline, it is estimated that 2,958 units with LBP hazards are occupied by LMI families or individuals. Discussion Children six years of age and younger have the highest risk of lead poisoning, as they are more likely to place their hands and other objects into their mouths. The effects of lead poisoning include damage to the nervous system, decreased brain development, and learning disabilities. As shown in Table 39, approximately 3,410 households live in households with risk of LBP and contain children under the age of 6. 8.A.a Packet Pg. 215 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 87 MA-25 Public and Assisted Housing – 91.210(b) Introduction The City does not have public housing units. However, there are 1,200 vouchers being used in the City: 981 tenant-based vouchers (the tenant finds a housing unit that will accept the voucher), 199 project - based (at a specific apartment complex), and 20 tenant-based vouchers allocated specifically to households with disabilities. Although homelessness has decreased by 2 percent from 2017 - 2019, additional HCVs allocated to the City would assist the 704 homeless individuals that currently live in the City a nd aid in further decreasing the population. In addition, NA-10 shows that many LMI renter households in the City are currently experiencing impactful housing problems. Of these LMI renter households, 10 are lacking complete plumbing or kitchen facilities, 295 are severely overcrowded, 745 are overcrowded, 1,600 are severely cost burdened, and 1,145 are cost burdened. HCVs help renters with housing problems find more appropriate housing because the household has more in terms of a selection of housing. If the household obtains an HCV, they can live in an appropriately sized housing unit, and a housing unit that meets HUD’s Housing Quality Standards (HQS) of safe, decent, and sanitary. In addition, there are several Low Income Housing Tax Credit properties in the City that offer affordable housing, but are not subsidized through the voucher program, such as the Sunset Gardens Senior Apartments. Totals Number of Units Program Type Certificate Mod- Rehab Public Housing Vouchers Total Project -based Tenant -based Special Purpose Voucher Veterans Affairs Supportive Housing Family Unification Program Disabled * # of units vouchers available 0 0 0 1,200 199 981 0 0 20 # of accessible units N/A N/A N/A N/A N/A N/A N/A N/A N/A Table 41 – Total Number of Units by Program Type *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Data Source: PIC (PIH Information Center) Describe the supply of public housing developments: As mentioned above, the City does not have public housing. However, the SCCHA does have four public housing units, located in the City of Santa Clara, of which none are ADA-accessible. The City currently has 199 project-based HCV units, 981 residents that receive assistance through the HCV program , and 20 residents that receive special HCVs for persons with disabilities. 8.A.a Packet Pg. 216 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 88 Describe the number and physical condition of public housing units in the jurisdiction, including those that are participating in an approved Public Housing Agency Plan: There are no public housing units in the City of Gilroy. However, the City owns a multifamily apartment complex in downtown Gilroy, called Cherry Blossom, which includes seven residential units. The City currently partners to provide permanent supportive housing to chronically homeless households. Public Housing Condition Public Housing Development Average Inspection Score N/A N/A Table 42 – Public Housing Condition Describe the restoration and revitalization needs of public housing units in the jurisdiction: There are no public housing units in the City of Gilroy. The Cherry Blossom apartment complex needs new roofing, windows, replacement flooring, upgrades to energy-efficient appliances and water-saving toilets and faucets, and accessibility upgrades. Describe the public housing agency's strategy for improving the living environment of low - and moderate-income families residing in public housing: The City has partnered with the County, along with two nonprofits, Community Solutions and Abode Services, to create a pilot program to house homeless individuals at the Cherry Blossom complex. The program provides a rental subsidy through Abode Services and intensive case management through Community Solutions, which focuses on improving participants’ health and increasing their stability. The program specifically serves homeless individuals who have been involved in the criminal justice system and may expand to families that had an adult involved in the criminal justice syst em Since the City does not have public housing, LMI households in the jurisdiction that receive subsidized housing participate in the HCV program. There are 981 HCV holders and 199 project-based voucher holders with the SCCHA in the City. In 2008, the SCCHA was selected by HUD to participate in the Moving to Work (MTW) demonstration program. The program’s goal is to promote participants’ self - sufficiency and expand participants’ housing choices. In the last 10 years, HUD has approved 45 activities in the program. Many community stakeholders spoke of the need to streamline the complex intake processes, which is an ongoing goal of the MTW program. Below is a summarized list of activities the SCCHA implemented that directly impact the positive living environment of LMI families who are HCV participants.42  Expediting the initial income verification process – extends the time period that initial documents are valid, from 60 days to 120 days, to provide relief to applicants.  Exploring new housing opportunities for the chronically homeless – identifies chronically homeless families outside of the HCV waiting list and connects them with case management services and referrals to project-based housing assistance.  Utilization of LIHTC Tenant Income Certification Income and Asset Verification – allows tenants to only have to turn in documents once.  Provide project-based vouchers to 100 percent of units in family projects – for complexes with supportive services available, instead of the 25 percent of the units in any one c omplex that 42 SCCHA Moving to Work (MTW) Annual Plan FY2020 8.A.a Packet Pg. 217 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 89 would be allowed should there be no supportive services offered on -site. This gives low-income families more choices.  Payment standard changes between regular recertifications – if the FMR has increased, the tenant will be able to take advantage of the new payment standard during an interim (if needed) reexamination, instead of having to wait until the annual reexamination.  Excluding asset income from calculations for families with assets under $50,000.  Streamlined approval process for exception payment standard for reasonable accommodation – HCV  Project-Based Voucher Inspection Self-Certification – allows project-based voucher owners and tenants to self-certify the correction of reported HQS deficiencies within the 30-day period after the initial HQS inspection. This activity only applies to the HQS deficiencies which are not life threatening.  Modified elderly definition for project-based vouchers – modified the age of elderly identified by HUD (62 or older) to age 55 or older to align with the definition used by several affordable housing developments in the area.  Special needs population direct referral program – creates an exception to HCV waiting list regulations to create a direct referral program for certain special needs populations who are not best served through a waiting list, such as disabled individuals at risk of institutionalizatio n or transition-age youth.  Family Self-sufficiency (FSS) Program – Waive Contract of Participation Requirements – First, eliminates the requirement to participate in a reexamination within 120 days of enrollment, and instead uses the family income as determined at the last regular reexamination, which may be up to two years before enrollment for families which are not on fixed incomes. Second, allows the successful maintained employment of any adult member of the enrolled family – rather than just the head of household – to count toward the family’s FSS goals. Discussion The Cherry Blossom complex, owned and managed by the City, is used as a pilot program for permanent supportive housing in the City. This program is a collaboration with two local nonprofits. As discussed above, obtaining HCVs helps LMI households to find and live in safe, decent, and sanitary housing units, as required by the voucher. Therefore, to ensure the HCV program continues to operate effectively, the SCCHA works to create and maintain good relationships with owners and landlords. Landlords are often discouraged by the additional administrative burden associated with the HCV program and may not know much about how it works. Therefore, in 2017, the SCCHA MTW piloted a Landlord Initiative to provide vacancy payments to HCV landlords who re-rent their unit to SCCHA program participants. In the 2020 SCCHA MTW Annual Plan, the SCCHA requested HUD to expand upon this initiative and create an incentive program to attract new owners and landlo rds to rent to HCV participants. Owners and landlords that rent to voucher holders for the first time will receive a one -time bonus payment. This program was created to maintain and increase the number of housing units and choices available to HCV participant households. 8.A.a Packet Pg. 218 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 90 MA-30 Homeless Facilities and Services – 91.210(c) 1. Introduction Multiple organizations throughout the County provide housing opportunities to homeless persons, which include emergency shelters, transitional housing, rapid re-housing, and permanent supportive housing. The following chart shows a bed inventory on the City level. As seen below, there are only 14 year -round emergency shelter beds, which are for domestic violence victims and their minor children. Community stakeholders expressed concerns over the need for additional emergency shelter options for the homeless population, as well as transitional housing and permanent housing. Facilities and Housing Targeted to Homeless Households Emergency Shelter Beds Transitional Housing Beds Permanent Supportive Housing Beds Year Round Beds (Current & New) Voucher / Seasonal / Overflow Beds Current & New Current & New Under Development Households with Adult(s) and Child(ren) 14 105 169 - - Households with Only Adults - 180 20 6 - Chronically Homeless Households - - - 31 - Veterans - - - - - Unaccompanied Youth - - - - - Table 43 – Facilities and Housing Targeted to Homeless Households Data Source: Santa Clara County Homeless Census & Survey 2019 Describe mainstream services, such as health, mental health, and employment services to the extent those services are used to complement services targeted to homeless persons Mainstream services are public benefits that all households may be eligible for, regardless of wheth er they are homeless. The most challenging part is connecting homeless persons to mainstream services, in order to complement the housing and services offered through federally funded programs. Community stakeholders feel there is a need for additional non profits to become involved with the Continuum of Care (CoC) as well as additional staff members for the nonprofits in order to obtain smaller caseloads to better to serve the critical needs of some of the long-time homeless members of the community. Each year, housing providers are offered a 12-hour mainstream services training to address eligibility, the application process, and best practices. The training is hosted by the CoC, and taught by local benefit offices, as well as advocates and legal services partners. Gilroy Benefits or Services:  Non-Employment Income: o SSI/SSDI – Social Security/Social Security Disability, General Assistance/Cash Aid, CalWORKS, Veterans Benefits, Tribal TANF, CAPI, EDD  Food Related Assistance: 8.A.a Packet Pg. 219 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 91 o CalFresh/SNAP, WIC o Fresh Approach – mobile farmers market and nutrition education  Legal Services: o Bay Area Legal Aid/Law Foundation of Silicon Valley  Medical: o Medicaid/Medicare/Covered California/Valley Homeless Healthcare Program o Health Mobile – Mobile dental services for homeless and low-income community members through a grant from El Camino Healthcare District o Planned Parenthood Mar Monte  Employment Training Opportunities: o Living Wage Employment Initiative – Provided by the area CoC, this program holds job fairs and engages previously homeless program participants in job training and connects them with living-wage employment leading to careers in high-growth industries.43 o CalWORKS – Job Training Program o Workforce Innovation Opportunity Act (WIOA)  Transportation: o CalWORKS  Childcare: o early childhood providers o CalWORKS Although mainstream services are accessible to all City residents, community stakeholders identified some gaps in services that would benefit homeless families, both previously homeless and sheltered/unsheltered homeless. These benefits include creating nutrition programs, cooking instruction, and food delivery. Stakeholders feel these benefits are particularly important for those staying in areas of possible food deserts, where there is no easy access to fresh groceries, as well as those with chronic health issues who are under the age of 60 and may need additional nutritional support due to their health. Ideas include creating local food storage areas and working with grocers to fill in food desert areas. List and describe services and facilities that meet the needs of homeless persons, particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth. If the services and facilities are list ed on screen SP-40 Institutional Delivery Structure or screen MA-35 Special Needs Facilities and Services, describe how these facilities and services specifically address the needs of these populations. Homeless Outreach All outreach is currently done by law enforcement; however, the City plans to move forward with creating a dedicated outreach team in Gilroy that would interact with homeless individuals and families in order to create relationships and trust to where homeless persons are open to services. Additionally, countywide housing services through the CoC are provided to homeless households via the countywide community queue, which a person would have to join to access said services. In order to join the community queue, a homeless person needs to participate in the coordinated entry process by answering a set of questions, using the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT). A score is given based on length of homelessness and service needs, allowing the CoC to prioritize the household 43 FY 2019 CoC Application 8.A.a Packet Pg. 220 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 92 for program type. More dedicated outreach means quicker assessments and more accurate program placement for homeless households. Emergency Shelter Community Solutions’ La Isla Pacific Confidential Emergency Shelter for domestic violence victims and their minor children. The shelter provides a confidential, safe, clean, and sober living environment that has culturally competent, strengths-based services for wellness and recovery. The shelter can receive referrals from victims themselves (self-referral), as well as law enforcement, social services, and other services providers. Transitional Housing Community Solutions’ El Invierno Transitional Housing Gilroy is a program for 12 single homeless men. Community Solutions’ Walnut Lane Home Transitional Housing is a program for eight single homeless men. Day Center Gilroy Compassion Center is open year-round, Monday through Friday, 8:00 a.m.-3:00 p.m. with extended hours during the winter months, December 1–March 31, beginning at 6:00 a.m. Additionally, Saturday Suppers are offered every Saturday from April through November at 3:00 p.m. The Day Center offers a drop-in center with basic needs such as food, clothing, bathrooms, and personal hygiene supplies. Shower and laundry facilities are on-site; there is also a weekly medical van, support groups, and case management. In addition to supportive services and basic needs, Gilroy Compassion Center offers the Almost Home Camping Program, which provides safe and legal campsites with showers, f ood, transportation, and case management. Lastly, the center is instrumental in putting on the City’s biannual Project Homeless Connect, an event where multiple services providers from around the County come together to offer information and services to homeless persons, as well as a hot meal and clothing distribution. Permanent Supportive Housing The City provides housing to one chronically homeless individual, in partnership with the County, Community Solutions, and Abode Services, in its City-owned Cherry Blossom apartment complex. Community Solutions’ Supportive Housing program for survivors of domestic violence and their families. This program provides rental assistance to survivors in the City, so that they can obtain and maintain permanent, safe, decent housing. The program also offers supportive services, which include housing search assistance, counseling, life skills, jobs skills and education, legal assistance, and connection to mainstream services. Community Solutions’ Glenview Way Home is a shared housing program that provides housing and supportive services for six chronically homeless single men. Community Solutions’ Maria Way is a shared housing program that provides housing and supportive services for six single men. Eden Housing’s Gilroy Sobrato Studios is a housing program that provides housing and supportive services for eight chronically homeless individuals. Eden Housing’s Gilroy Sobrato Studios is a housing program that provides housing and supportive services, specifically mental health services, for 17 chronically homeless individuals. 8.A.a Packet Pg. 221 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 93 Homelessness Prevention St. Joseph’s Family Center’s Homeless Prevention and Safety Net Services program provides emergency rental assistance, utility assistance, food assistance, and other supportive programs that help diminish the overall risk of becoming homeless and increase family well-being. Housing Services for Persons with Disabilities Silicon Valley Independent Living Center (SVILC) assists individuals with disabilities and their families in their housing search for affordable and accessible housing. SVILC provides low-income City of Gilroy residents who have disabilities with education and training on all aspects of how to conduct a housing search to obtain safe, affordable, accessible, long-term housing. Employment Services St. Joseph’s Family Center’s Street Team program prepares homeless and imminently homeless individuals for regular employment. Participants will receive employment readiness and training opportunities that will prepare them for employment. The following are the number of beds allocated to homeless programs within specific demographic categories in the County:  Households with children: 2,907  Single adults: 4,260  Children only: 12  Youth, 18-24 with children: 77  Youth, 18-24 without children: 62  Chronically homeless: 1,614  Veterans: 1,086  Domestic violence: 308 8.A.a Packet Pg. 222 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 94 MA-35 Special Needs Facilities and Services – 91.210(d) 1. Introduction This chapter provides statistics on special needs facilities in the City of Gilroy, including facilities for the elderly, persons with disabilities, and persons with HIV/AIDS and their families. The County overall is a significant funder of housing for special needs populations, such as elderly persons, persons with mental health needs, persons with alcohol or other drug addictions, and those with HIV/AIDS that receive supportive services from the County. The County funds and provides emergency shelters, transitional and supportive housing, and housing for other special needs populations countywide. As of 2015, the City itself provided 609 beds in 23 licensed community care facilities, broken down as follows: 14 adult residential facilities with 97 beds  6 residential care for the elderly facilities with 452 beds  3 group homes with 60 beds Including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, public housing residents and any other categories the jurisdiction may specify, and describe their supportive housing needs Supportive housing for the elderly, frail elderly, persons with disabilities, and those living with HIV/AIDS is designed to allow the individuals to live as independently as possible. Supportive housing services generally involve more accessible units, greater access to transportation and healthcare, and possibly larger units to accommodate those who need assistance with one or more daily activities. More challenging or ongoing conditions might require supportive services that include long -term assisted living as well as transportation and nursing care. Describe programs for ensuring that persons returning from mental and physical health institutions receive appropriate supportive housing As of 2015, the City has a total of 609 licensed community care facility beds available for persons with health-related conditions. This includes the following types of licensed care facilities:  Group Homes: Group homes are facilities that provide 24-hour non-medical care and supervision to children in a structured environment. Group homes provide social, psychological, and behavioral programs for troubled youth. The City has three group homes that provide 60 beds.  Adult Residential Facility: Adult residential facilities are facilities that provide 24 -hour non-medical care for adults ages 18 through 59 who are unable to provide for their own daily needs. Adults may be physically, developmentally, and/or mentally disabled. The City has 14 adult residential facilities that contain 97 beds.  Residential Care Facilities for the Elderly: Residential care facilities for the elderl y (RCFE) provide care, supervision, and assistance with activities of daily living, such as bathing and grooming. They may also provide incidental medical services under special care plans. The City has six RCFEs that contain 452 beds. The facilities provide services to persons 60 years of age and over and persons under 60 with compatible needs. RCFEs may also be known as assisted living facilities, nursing homes, and board and care homes. The facilities can range in size from fewer than six beds to over 10 0 beds. The residents in these facilities require varying levels of personal care and protective supervision. 8.A.a Packet Pg. 223 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 95 SCCHA created an HCV waiting list preference for non-elderly, disabled families referred by the Silicon Valley Independent Living Center and transitioning out of nursing homes or other health care institutions. Outreach is done daily at jails and Veterans Affairs (VA) psychiatric facilities throughout the County to ensure that veterans are not discharged to the street. In addition to these City facilities and services, the County has many other specific programs in place to address the supportive housing needs of special needs groups. Additional Services Available in the County Program Name Services Impact Housing Services (Transitional, Emergency, Support) Bill Wilson Center Since 1973, the organization has provided services to children, youth, young adults and families in Santa Clara County, reaching over 30,000 clients. - Assisted more than 4,100 people through counseling, housing, education, foster care, mental health, shelter and basic needs programs - Helped 154 students and families on the verge of homeless remain in their homes - Helped 238 runaway and homeless youth with counseling and housing services InnVision, Transitional Shelter Program Operates as one of 17 facilities maintained by LifeMoves. Provides adults with children under 18 (families) with emergency and transitional housing. - In 2018, the organization overall provided 9,350 families and individuals experiencing homelessness with shelter, food, clothing, and comprehensive supportive services Family Supportive Housing For 30 years the organization has helped homeless single- and two-parent families with children remain intact, providing support for food, shelter, employment, and education. - In 2018, provided 52,000 shelter nights and 186,000 meals to 237 adults and 393 children InnVision, Julian Street Inn Operates as one of 17 facilities maintained by LifeMoves. Provides adult men and women that are referred with a mental health issue and associated diagnosis with various supportive services. - In 2018, the organization overall provided 9,350 families and individuals experiencing homelessness with shelter, food, clothing, and comprehensive supportive services Sacred Heart Community Service, Homelessness Program Funded by Destination: Home - this program is designed to help vulnerable families avoid - In its second year of the program in 2018, assessed 1,693 8.A.a Packet Pg. 224 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 96 Program Name Services Impact Housing Services (Transitional, Emergency, Support) homelessness through consistent access, assessment and intervention services. households and assisted 215 households with an average of $3,600 each Project Sentinel Since 1976, they have developed and promoted fairness and equality of housing opportunities for all persons and advocated peaceful resolution of disputes for community welfare and harmony. - In charge of over 50 programs to assist people with housing issues including housing discrimination, tenant-landlord dispute resolution, and housing counseling Domestic Violence Services Community Solutions, La Isla Pacifica Shelter for Urban County Battered Women and Children Since 1972, they have provided support through housing services, specifically treating victims of domestic violence and creating solutions to violence programs. - In 2018, assisted 4,636 persons through care, support, and resources Next Door Solutions to Domestic Violence Works to reduce and end domestic violence in the County through comprehensive, compassionate and bilingual services. - On average per year, the organization answers 15,000 crisis calls and serves 3,000 survivors of domestic violence Table 44 – Supportive Housing Programs Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. 91.315(e) Through CDBG funds, the City plans to provide the following programs/services to non-homeless special needs populations. Affordable Housing  Rebuilding Together Silicon Valley’s Safe at Home program addresses home repair and maintenance issues that may otherwise present a safety risk or that limit access to or within the home. The Accessibility/Mobility program particularly focuses on updating homeowner living spaces to allow seniors and the disabled persons to stay in their homes. The fact that many households in these special needs populations are on a fixed income means that they do not have the extra funds to pay for necessary items such as ramps and widening of doorways that are necessary to extend a homeowner’s independence. Supportive Services  Live Oak Adult Day Services provides recreation activities and meals to frail elderly and elderly individuals. These activities help individuals that visit Live Oak with their social experience and stimulation. Adults in this program are those that are unable to live independently, and this program allows individuals to participate in many stimulating activities, while their caregivers go to work, run errands, or complete other necessary daily tasks.  Catholic Charities of Santa Clara County’s Long-Term Care Ombudsman program promotes the rights and well-being of residents in long-term care facilities in Santa Clara County. 8.A.a Packet Pg. 225 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 97  The City of Gilroy Recreation Department Youth Center provides an after-school program and summer day camp programs to keep youth in the area engaged while their parents are at work for the day. The City of Gilroy Recreation Department provides free swim lessons to LMI youth in the area to decrease probability of drownings in the area and teach life skills. Through the Gilroy local Housing Trust Fund funds, the City plans to provide the following programs/services to non-homeless special needs populations. Supportive Services  The City partners with the Silicon Valley Independent Living Center to bolster its su pport for housing and emergency services for persons with disabilities. This helps the City partly answer its need for supportive services and housing services. The center provides low-income City of Gilroy residents who have disabilities with education an d training on all aspects of how to conduct a housing search to obtain safe, affordable, accessible, long-term housing.  The Health Trust Meals on Wheels delivers hot, nutritious meals five days a week, sometimes with the option of a once-a-week frozen meal, to seniors and adults with disabilities. In addition to delivering meals, their drivers also provide daily wellness checks, making sure that their cli ents are safe, alert, and cared for. For entitlement/consortia grantees: Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. (91.220(2)) See above response. 8.A.a Packet Pg. 226 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 98 MA-40 Barriers to Affordable Housing – 91.210(e) Negative Effects of Public Policies on Affordable Housing and Residential Investment The City and other jurisdictions in the County and Bay Area face common barriers to affordable housing. One of the most prominent issues is the lack of land available for development, which increases the cost of real estate that does become available and increases housing development costs. Managing local input for affordable housing investment is also an issue, as neighbors often oppose infill and other aspects of affordable housing development. These oppositions are often misplaced, as they are based upon notions such as a foreseen increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed school systems. However, to ensure a prospering economy, the region must focus on strategies that provide hous ing for much of the region’s workforce—for example, sales clerks, secretaries, firefighters, police, teachers, and health service workers —whose incomes might significantly limit their housing choices. Even when developments produce relatively affordable housing, the area’s constrained housing supply market will often cause higher-income buyers and renter households to generally outbid lower-income households, thus pushing a home’s final sale or rental price higher than the projected value. Therefore, public subsidies are often needed to guarantee affordable homes for LMI households. Aligning with these effects on affordable housing investment, the City identified several potential constraints to the development, maintenance, and improvement of housing and a ffordable housing, in its 2015-2023 Housing Element update:  The General Plan constitutes the highest-level policy document for the City. As such, a City’s General Plan contains several items that can affect the development and distribution of housing, such as land use classifications, and density and intensity standards.  The City’s residential zoning designations control both the use and development standards of each residential parcel, thereby influencing the development of housing. The City has found that the maximum development limits established by the Zoning Ordinance do not pose a constraint to the development of housing, although these regulations do have an obvious effect on the cost and development of housing.  Parking requirements do not constrain the development of housing directly but may reduce the amount of available lot area for residential development. 8.A.a Packet Pg. 227 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 99 MA-45 Non-Housing Community Development Assets – 91.215 (f) 1. Introduction An adequate housing supply is critical to keeping housing affordable, and affordable housing is among the most important cont ributors to household welfare. As housing prices increase, the value of household inco me decreases. One prime example is that the inflation-adjusted value of the federal minimum wage has fallen by more than one-third from its peak and is currently about 20 percent less than it was in 1981. Thus, the federal minimum wage has lost value and h as not kept up with the rising cost of housing, such as rent. Even in states such as California where the state minimum wage exceeds the federal minimum wage, one full-time minimum wage job is usually not enough for a household to afford a two - bedroom unit. As discussed in MA-15, for residents of the City in the San Jose-Gilroy-Santa Clara, CA HUD Metro Fair Market Rent Area (FMR), renter households must earn higher than average wages in order to afford an apartment unit. Strategies for increasing the housing supply must take into account a jurisdiction’s job/housing balance, which is defined as the ratio of number of jobs to number of housing units in a given area. (A more precise ratio is between the number of jobs and the number of employ ed residents, as some households have no workers, while others have multiple workers). There should not only be a sufficient amount of housing at a range of prices, but also a variety of housing types appropriate for a range of needs and in locations that allow access to transportation and employment opportunities. If there is an imbalance of appropriate housing for the number of employees in an area, the results can be a l onger commute and greater traffic congestion as employees must then commute to places of employment. Economic Development Market Analysis Business Activity Business by Sector Number of Workers Number of Jobs Share of Workers % Share of Jobs % Jobs less workers % Agriculture, Mining, Oil & Gas Extraction 979 181 5 1 -4 Arts, Entertainment, Accommodations 2,542 2,865 13 19 6 Construction 1,641 898 8 6 -2 Education and Health Care Services 2,917 2,525 15 17 2 Finance, Insurance, and Real Estate 731 308 4 2 -2 Information 513 165 3 1 -1 Manufacturing 2,562 1,445 13 10 -3 Other Services 684 701 3 5 1 Professional, Scientific, Management Services 1,730 417 9 3 -6 Public Administration 0 0 0 0 0 Retail Trade 2,854 4,006 14 27 12 8.A.a Packet Pg. 228 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 100 Business by Sector Number of Workers Number of Jobs Share of Workers % Share of Jobs % Jobs less workers % Transportation and Warehousing 461 316 2 2 0 Wholesale Trade 915 426 5 3 -2 Total 18,529 14,253 -- -- -- Table 45 – Business Activity Data Source: 2011-2015 ACS (Workers), 2015 Longitudinal Employer-Household Dynamics (Jobs) 8.A.a Packet Pg. 229 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 101 Labor Force Total Population in the Civilian Labor Force 26,894 Civilian Employed Population 16 years and over 24,290 Unemployment Rate 9.66 Unemployment Rate for Ages 16-24 20.15 Unemployment Rate for Ages 25-65 7.14 Table 46 – Labor Force Data Source: 2011-2015 ACS Occupations by Sector Number of People Management, business and financial 5,200 Farming, fisheries and forestry occupations 1,275 Service 2,705 Sales and office 5,790 Construction, extraction, maintenance and repair 3,740 Production, transportation and material moving 1,585 Table 47 – Occupations by Sector Data Source: 2011-2015 ACSTravel Time Travel Time Number Percentage < 30 Minutes 11,590 50% 30-59 Minutes 7,645 33% 60 or More Minutes 3,745 16% Total 22,980 100% Table 48 – Travel Time Data Source: 2011-2015 ACSEducation: Educational Attainment by Employment Status (Population 16 and Older) Educational Attainment In Labor Force Civilian Employed Unemployed Not in Labor Force Less than high school graduate 4,130 545 1,390 High school graduate (includes equivalency) 3,530 515 955 Some college or Associate degree 6,675 655 1,610 Bachelor's degree or higher 5,580 180 775 Table 49 – Educational Attainment by Employment Status Data Source: 2011-2015 ACS Educational Attainment by Age Age 18–24 yrs 25–34 yrs 35–44 yrs 45–65 yrs 65+ yrs Less than 9th grade 20 695 1,050 1,334 828 9th to 12th grade, no diploma 779 960 1,030 1,005 365 High school graduate, GED, or alternative 1,865 1,593 1,255 2,150 1,063 Some college, no degree 1,808 1,730 1,825 2,875 985 Associate degree 385 640 585 1,270 387 8.A.a Packet Pg. 230 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 102 Age 18–24 yrs 25–34 yrs 35–44 yrs 45–65 yrs 65+ yrs Bachelor's degree 285 930 1,420 2,180 835 Graduate or professional degree 15 305 485 1,235 520 Table 50 – Educational Attainment by Age Data Source: 2011-2015 ACSAs shown in Table 50 above, the educational attainment for City residents 25 years of age and older (31,535 residents) is as follows:  23 percent have not graduated high school  19.2 percent have graduated high school (including equivalency,) but not further education  23.5 percent have some college but no degree  9.1 percent have an Associate degree  17 percent have a bachelor’s degree  8.1 percent have a graduate or professional degree Educational Attainment – Median Earnings in the Past 12 Months Educational Attainment Median Earnings in the Past 12 Months Less than high school graduate 20,275 High school graduate (includes equivalency) 88,560 Some college or Associate degree 97,307 Bachelor's degree 159,347 Graduate or professional degree 158,070 Table 51 – Median Earnings in the Past 12 Months Data Source: 2011-2015 ACSBased on the Business Activity table above, what are the major employment sectors within your jurisdiction? As show in Table 45, the major employment sectors in the City include retail trade (27 percent, 4,006 jobs); arts, entertainment, accommodations (19 percent, 2,865 jobs); education and health care services (17 percent, 2,525 jobs); and manufacturing (10 percent, 1,445 jobs). About 75 percent of the total jobs (10,841 jobs) in the City are produced by these four employment sectors. Describe the workforce and infrastructure needs of the business community: Workforce Needs The unemployment rate (2011-2015 ACS data) for the City remains a concern as it has been slow to recover from the Great Recession which resulted in a peak unemployment rate of 10.0 percent in October 2009. According to the data, the unemployment rate for the City stands at 9.9 percent, which is more than 30 percent higher than the rate for the County as a whole. However, the rate for the City is actually equal to the State’s rate, which stands at 9.9 percent according to the same ACS data. Based on the data, the City has a need for Retail Trade jobs. For this sector, there is an estimated 4,006 available jobs, yet som e of these are unfilled since there are only 2,854 workers in the sector. This represents the largest gap between share of jobs and workers of any sector in the City. The second sector with the next largest gap is the Arts, Entertainment and Accommodations sector. Infrastructure Needs The economic health and the social well-being of a community is often reflected in the quality of its public infrastructure, including roads and highways, public transit systems, sewer and sewage treatment 8.A.a Packet Pg. 231 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 103 systems, water distribution systems, schools, parks and recreation areas, libraries, and other public buildings. Adequate public infrastructure is an important foundation for a healthy economy. Improvements to public infrastructure and facilities were identified as a need for the City. Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create. The City has several development projects planned and/or underway that will support the local economy. Projects include:  CineLux Theaters  Shopping center at First and Kelton  200 townhomes - Eagle Garden townhomes on First Street  75 apartments - Gateway Senior Apartments  Hampton Inn (about 100 rooms)  SportsPark Master Plan Amendment is envisioning an ice rink  Downtown Specific Plan update will occur during the ConPlan How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction? In the City, 25.1 percent of residents 25 years and older have a bachelor’s degree or higher. According to the median annual wages, residents in the City who have a high school diploma or less can only expect to be employed in occupations that will provide them with incomes in the 0-50% AMI range. Many people are driving out of town to their jobs. Regardless of earning capacity, the City needs more job opportunities in town for all skill levels. Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan. The Silicon Valley Workforce Investment Network’s Work2Future is the local administrative arm of the Workforce Innovation and Opportunity Act of 2013 (WIOA). Work2 Future operates one-stop centers that serve the areas of San Jose, Campbell, Morgan Hill, Los Altos Hills, Gilroy, Los Gatos, Saratoga, Monte Sereno, and the unincorporated areas of the County. The Department of Labor is the main funding stream for the centers. Other sources include state, local, and federal grants and corporate support. Strategically positioned within the Office of Economic Development, Work2Future addresses the workforce and economic development needs of the local area, in collaboration with small and large businesses, educational institutions, and community-based organizations. Work2Future supports regional collaborative partnerships that include employers from priority industry sectors and targets leveraged investments in quality trainin g in these sectors. Its regional economic and workforce analysis shows San Jose as having great influence on the regional economy. While the report forecasts long-term job growth in most industries, it identifies the following priority industry sectors:  Health  Advanced manufacturing  Information and communication technology and digital media 8.A.a Packet Pg. 232 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 104 Work2Future’s Business Services Plan supports its priority industry sectors through existing and new regional workforce development networks and industry sector partnerships. Work2Future’s adult strategies emphasize career pathway approaches to workforce development in growth industry sectors utilizing earn-and-learn approaches. Its plan includes a robust business service operation that supports training in:  Entrepreneurship  Customized and on-the-job training  Registered apprenticeship training  Technology-based training and attainment of industry recognized certificates and credentials The plan commits at least 25 percent of WIOA Adult and Dislocated Worker funds toward these training approaches and also commits to serving all populations. Work2Future’s youth strategies focus on collaboration with its youth partners to increase high school completion and support higher education and training opportunities in science, technology, engineering and math. Partnerships with programs at Gavilan College in the City support collaboration for serving these populations and allowing them to increase access to higher education and training opportunities. Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)? No If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth. The City provides funding for partner agencies who work in tandem with the City to promote economic development, including Gilroy Economic Development Corporation, Gilroy Welcome Center, and Gilroy Downtown Business Association. The City also works closely with other partners such as the Gilroy Chamber of Commerce and Gilroy Gardens. Discussion Economic development information is readily available on the City website. This includes documents detailing demographic information, economic development guiding principles, economic grow statistics, economic incentives policy, and a quality of life housing market analysis. 8.A.a Packet Pg. 233 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 105 MA-50 Needs and Market Analysis Discussion Are there areas where households with multiple housing problems are concentrated? (include a definition of "concentration") A concentration is defined as a group that is at least 20 percentage points higher than the citywide average. Annually, 30 code enforcement cases are resolved in the CDBG target area, in an effort to maintain the current housing stock. Are there any areas in the jurisdiction where racial or ethnic minorities or low -income families are concentrated? (include a definition of "concentration") Minority concentration is defined as a delineated geography where the percen tage of individuals of a particular racial or ethnic minority group is at least 20 percentage points higher than the citywide average. Minority refers to all racial or ethnic groups other than non-Hispanic white. There is a minority concentration of Hispanic households in all or part of census tracts 5125.03, 5125.05, 5125.06, 5125.08, 5125.09, 5126.02, 5126.03, and 5126.04. LMI concentration is defined as one of the following: a census tract in which the median household income is less than or equal to 80 percent of the statewide median family income, in which the median family income is less than or equal to 80 percent of the metropolitan area’s median family income, or in which the federal poverty rate is 20 percent or greater. There are LMI concentrations in all or in part of census tracts 5125.05, 5125.06, 5125.08, 5125.09, 5126.02, 5126.03, and 5126.05. See maps below for additional geographical information. 8.A.a Packet Pg. 234 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 106 8.A.a Packet Pg. 235 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 107 8.A.a Packet Pg. 236 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 108 What are the characteristics of the market in these areas/neighborhoods? All census tracts are dense with residential housing with the exception of 5126.02, which is mainly industrial/warehouses as well as the Gilroy Premium Outlets. Most homes were built between 1970 and the 2000’s and include 59 percent owners and 36 percent renters and have an average median home value of $463,000. There are a sufficient number of schools, parks, and shopping centers available. Are there any community assets in these areas/neighborhoods? Census tract 5125.05 includes one affordable housing complex and one transitional housing complex. 5125.06 includes the National Guard Armory and the Gilroy Winter Shelter, which offers emergency shelters to single persons during the cold winter months. 5125.08 holds City offices as well as an aged care facility. 5126.02 includes the Gilroy Premium Outlets, Pacheco Plaza shopping center, and an industrial area that holds many other businesses and warehouses. The retail trade is the number one occupation in Gilroy, and additionally brings a great amount of tax revenue to the area. 5126.03 includes the Gilroy Golf Course which was built in 1923 by local farmers and businessmen. 5126.04 is one of three tracts within the HUD-approved Neighborhood Revitalization Strategy Area. It includes parts of downtown Gilroy and features a mix of residential and commercial uses. It also includes many of the nonprofit service providers that offer vital services to City residents. This area also includes an adult school and Headstart preschool. 5126.05 is also part of the downtown area, which includes many shops, eateries and wineries for locals and visitors to enjoy. Are there other strategic opportunities in any of these areas? Gilroy has two Census tracts that are designated as Opportunity Zones; Census tracts 5126.03 and 5126.04. Opportunity Zones are designated census tracts that encourage investment within those areas. Investments made by individuals in these zones through Qualified Opportunity Funds would be allowed to defer or eliminate federal taxes on capital gains in three ways: 1. Temporary Deferral: A temporary deferral of inclusion for capital gains reinvested into a Qualified Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026. 2. Step-Up In Basis: A step-up in basis for capital gains reinvested in a Qualified Opportunity Fund. The basis is increased by 10% if the investment in the Qualified Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation. 3. Permanent Exclusion: A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a Qualified Opportunit y Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an opportunity fund.44 44 http://www.ci.gilroy.ca.us/805/Opportunity-Zones 8.A.a Packet Pg. 237 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 109 MA-60 Broadband Needs of Housing occupied by Low- and Moderate- Income Households - 91.210(a)(4), 91.310(a)(2) Describe the need for broadband wiring and connections for households, including low - and moderate-income households and neighborhoods. The City is surrounded by wooded areas, including the Soquel Demonstration State Forest and Henry W. Coe State Park. The City is more isolated than others in the County, which presents fewer options than other cities. Some residents do not have access to broadband in their homes at all, due to the area, others only have one provider option, so they are not able to compar e prices. Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction. According to Federal Communications Commission (FCC) datasets from internet providers, 72.2 percent of consumers in the City (about 41,000 people) only have access to one or none wired internet providers available at their address. Therefore, increased internet and broadband competition would give consumers in the City more options. Bringing more providers to the jurisdiction would give residents more choices for services and cost. 8.A.a Packet Pg. 238 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 110 MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3) Describe the jurisdiction’s increased natural hazard risks associated with climate change. Due to rising temperatures as a result of climate change, natural hazard risks have become more severe for the area. Most notably, the prevalence of wildfires in the region is a concern for the City. As stated in the previous section, the City is surrounded by large wooded areas including multiple st ate forests and parks. Therefore, the City is vulnerable to wildfires in its immediate vicinity. The City is also vulnerable to earthquakes. According to risk indexes on USA.com, risk in the City for earthquakes is more than twice as high as the rest of the state. Another natural hazard associated with climate change is heavier rains; since the City is vulnerable to floods, heavy rains may also lead to mudslides and landslides. Between 1950 and 2010, the City has been in proximity to 92 extreme flooding events. Describe the vulnerability to these risks of housing occupied by low - and moderate-income households based on an analysis of data, findings, and methods. Typically, LMI households are present in floodplains more often than other types of households. Therefore, they become more vulnerable to extreme flooding events, as well as subjected to higher flood insurance costs. According to the City’s Hazard Mitigation Plan, large portions of the City are subject to flood hazards due to seasonal runoff along Ll agas Creek and Uvas Creek. This problem is particularly acute in the eastern agricultural areas, which is attributed to the richness of soil there. However, these eastern areas of the City also have concentrations of LMI and Hispanic households, as shown i n the maps in MA-50. The City’s LMI populations are less vulnerable to wildfire risks, as western hillside areas represent the areas of highest risk. LMI populations are also present in areas of the City with the highest shaking potential for earthquakes, according to the CA Department of Conservation, whereas the City’s western tracts have a lower risk. 8.A.a Packet Pg. 239 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 111 STRATEGIC PLAN SP-05 Overview Strategic Plan Overview The Strategic Plan identifies the five-year goals that the City of Gilroy expects to achieve during the 2020-2025 Consolidated Plan cycle. These goals are aligned with HUD’s objectives and outcomes and are achieved through the Annual Action Plan, which divides up the five-year goals into annual targets. The City has identified six high-need categories through the Needs Analysis, Market Analysis, and Community Outreach portions of the Consolidated Plan. The Strategic Plan then identifies goals that are aligned to address most of those needs. Not every need identified in the plan can be met and sufficient ly addressed in the next five years. Some of the needs are not feasible, some require much more funding than the City currently receives, and some are simply too large to be addressed in just five years. The Strategic Plan includes goals to address basic needs, supportive services, youth services, economic development, housing services, and infrastructure improvements. 8.A.a Packet Pg. 240 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 112 SP-10 Geographic Priorities – 91.215 (a)(1) Geographic Area 1 Area Name: CDBG target area Other Target Area Description: Target area HUD Approval Data: N/A % of Low/Mod: >51% Revital Type: Comprehensive Other Revital Type: SOCIO-ECONOMIC Identify the neighborhood boundaries for this target area. The CDBG target area is composed of census tracts 5126.03, 5126.04, and 5125.06. General boundaries are Highway 101 to the east and south, Las Animas Avenue to the north, and parts of Wren Avenue, Hanna Street, and Princevalle Street to the west. Include specific housing and commercial characteristics of this target area. The Small Business Administration of Gilroy has deemed this area to be a “Historically Underutilized Business Zone.” How did your consultation and citizen participation process help you to identify this neighborhood as a target area? Consultation of other community plans and input from the community were utilized to determine and define strategies that the City will undertake and address for areas of concern within the CDBG target area. Identify the needs in this target area. Infrastructure needs, specifically safety updates. Supportive services for homeless persons and non- homeless special needs populations. What are the opportunities for improvement in this target area? Opportunities for improvement include infrastructure and service needs. Are there barriers to improvement in this target area? Limited availability of funding makes it difficult to make all necessary improvements. Table 52 – Geographic Priority Areas General Allocation Priorities In general, investments will be made citywide; however, some funding will be allocated to the Gilroy CDBG target area. The map below displays the Gilroy CDBG target area. 8.A.a Packet Pg. 241 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 113 8.A.a Packet Pg. 242 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 114 SP-25 Priority Needs - 91.215(a)(2) Priority Needs 1 Priority Need Name Affordable Housing – Rehabilitation of Existing Units Priority Level High Population Extremely Low Income Low Income Moderate Income Families with Children Elderly Frail Elderly Persons with Disabilities Geographic Areas Affected Citywide Associated Goals Preserve affordable housing for home ownership Description Housing repair/rehabilitation projects for low-income and disabled Gilroy homeowners who otherwise could not afford to make critical repairs in their homes, resulting in health a nd safety issues. Approximately 30 percent of CDBG funds are used for this funding priority. Basis for Relative Priority Elderly persons, frail elderly persons, and persons with disabilities tend to be on fixed incomes and may not have the funds to complete a necessary health and safety related repair or accessibility repair that would keep them in their home. A rehabilitation program helps homeowners with repairs or rehabilitation of these necessary items that would otherwise cause a home to become uninhabitable and may lead to homelessness. Additionally, a home that lacks proper accessibility for its owner may lead to a serious accident that could cause an even larger financial burden. 2 Priority Need Name Special Needs Services – Elderly/Frail Elderly Priority Level High Population Extremely Low Income Low Income Moderate Income Elderly Frail Elderly Geographic Areas Affected Citywide Associated Goals Supportive services for special needs populations Description Recreation, socialization, and meals for frail elderly and elderly City residents that may otherwise not participate in these types of activities. Ombudsman services for long -term care residents in the City. Approximately 6 percent of CDBG funds are used f or this funding priority. Home-delivered meals, social visits/wellness checks, wellness and educational resources. Basis for Relative Priority People are living longer, and the City has a stabilized elderly population that often lives on a fixed income and is need of activities to stay active, as well as advocates to make sure they stay safe. Additionally, many frail elderly and elderly persons have mobility issues and do not have a 8.A.a Packet Pg. 243 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 115 support system to go to the grocery store, which leads to the inability to have hot nutritious meals. Approximately 10 percent of HTF funds are used for this funding priority. 3 Priority Need Name Special Needs Services - Youth Priority Level High Population Extremely Low Income Low Income Moderate Income Youth Geographic Areas Affected Citywide Associated Goals Support services for special needs populations Description Youth services for at-risk youth that address crime prevention, gang intervention, recreational activities, and youth empowerment. Approximately 8 percent of CDBG funds are used for this funding priority. Basis for Relative Priority Community engagement efforts identified youth services as a priority need, including safe places for youth and life skills such as swim lessons to keep youth population safe. 4 Priority Need Name Economic Development Priority Level Low Population Extremely Low Income Low Income Moderate Income Other Geographic Areas Affected CDBG target area Associated Goals Support small business expansion Description Community-based development organization to provide a range of services within an CDBG target area that promote economic development. Basis for Relative Priority Economic development was identified as a priority need during community engagement. Additionally, the Gilroy CDBG target area was identified as an area in need of continued revitalization. 5 Priority Need Name Homeless Supportive Services Priority Level High Population Extremely Low Income Low Income Moderate Income Homeless Geographic Areas Affected Citywide Associated Goals Supportive services for homeless populations Description Provide clothing and personal care items. Approximately 12 percent of HTF funds are used for this funding priority. 8.A.a Packet Pg. 244 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 116 Case management supply basic needs/survival supplies, access to showers, and laundry. Approximately 3 percent of CDBG funds are used for this funding priority. Basis for Relative Priority . The 2019 County PIT count counted 704 homeless individuals in the City of Gilroy. Homeless persons often need case management services to connect them to mainstream services to gain earned or unearned income, as well as health services, and other benefits necessary to prepare to seek permanent housing. Homeless persons often lack clean dry clothing and personal care items due to lack of shelter and income. Receiving clothing and personal care items improves health and quality of life of p articipants 6 Priority Need Name Infrastructure Improvements in the CDBG Target Area Priority Level High Population Extremely Low Income Low Income Moderate Income Non-Housing Community Development Geographic Areas Affected CDBG target area Associated Goals Install safety and enhanced public improvements Description Improve deficient infrastructure in CDBG target area, particularly related to safety concerns. Approximately 36 percent of CDBG funds are used for this funding priority. Basis for Relative Priority Safety improvements to public infrastructure and facilities were identified as a high priority need during community engagement. 7 Priority Need Name Affirmatively Furthering Fair Housing Priority Level Low Population Extremely Low Income Low Income Moderate Income Frail Elderly Elderly Persons with disabilities Persons with alcohol or drug addictions Persons living with HIV/AIDS and their families Victims of domestic violence, dating violence, sexual assault, and stalking Homeless persons Persons at imminent risk of homelessness Geographic Areas Affected Citywide and Outreach and Education in CDBG target area Associated Goals Fair housing support. Description Investigate fair housing complaints from City residents; conduct fair housing consultations; and provide landlord/tenant counseling and dispute resolution, and case management. Outreach and education, particularly in census tracts with concentrations of LMI households and those that experience disproportionately greater housing needs. Approximately 23 percent of HTF funds are used for funding this priority. Basis for Relative Priority As discussed in the needs assessment section, there are particular racial/ethnic groups and LMI households that experience disproportionately greater housing needs that can benefit from fair housing outreach and education. Additionally, landlord/tenant disputes may lead to homelessness. 8 Priority Need Homelessness Prevention and Safety Net Services 8.A.a Packet Pg. 245 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 117 Name Priority Level Low Population Extremely Low Income Low Income Moderate Income Persons at imminent risk of homelessness Frail Elderly Elderly Persons with disabilities Persons with alcohol or drug addictions Persons living with HIV/AIDS and their families Victims of domestic violence, dating violence, sexual assault, and stalking Other Geographic Areas Affected Citywide Associated Goals Supportive services for homeless populations Description Emergency rental assistance and VI-SPDAT Assessments. Approximately 25 percent of HTF funds are used for funding this priority. Basis for Relative Priority Rental housing is often difficult to find and requires a large sum of money to move in, such as a security deposit and application fees. As discussed in NA-10, if a household can stay housed with only a small amount of assistance, it is in the household’s best interest because the alternatives are very costly, which may include the moving expenses listed above; moving can also include an increased rent amount, and the inability to pay current rent can lead to eviction and even homelessness. 9 Priority Need Name Workforce Development Priority Level Low Population Extremely Low Income Low Income Moderate Income Homeless Persons Persons at imminent risk of homelessness Geographic Areas Affected Citywide Associated Goals Workforce development Description Employment readiness and training opportunities that prepare homeless, unhoused, and at-risk individuals for employment. Approximately 17 percent of HTF funds are used for funding this opportunity. Basis for Relative Priority Economic development was identified as a priority need during community engagement. 10 Priority Need Name Special Needs Services – Persons with Disabilities Priority Level Low Population Extremely Low Income Low Income Moderate Income Persons with Disabilities Geographic Areas Citywide 8.A.a Packet Pg. 246 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 118 Affected Associated Goals Supportive services for special needs populations Description Assisting individuals with disabilities and their families in their search for affordable and accessible housing. Providing low-income City of Gilroy residents who have disabilities with education and training on all aspects of how to conduct a housing search to obtain safe, affordable, accessible, long-term housing. Approximately 12 percent of the HTF funds are used for funding this opportunity. Basis for Relative Priority Approximately 8 percent of City residents report having a disability and less than 2 percent of housing units throughout the United States are accessible or ADA compliant. This priority need helps the City’s disabled population to learn about how to find accessible housing, how to request a reasonable accommodation, and what parts of a housing unit may be modified to meet their needs to have a safe and affordable place to live. 11 Priority Need Name Code Enforcement – eliminating health and safety violations Priority Level High Population Extremely Low Income Low Income Moderate Income Geographic Areas Affected CDBG target area Associated Goals Prevention or elimination of slums or blight. Description Aimed at creating suitable living environments and arresting the decline of housing units in LMI neighborhoods. City staff implements the program and focusses on eliminating health and safety violations and increasing adherence to local building codes/sta ndards. Approximately 2 percent of the CDBF funds are used for funding this opportunity. Basis for Relative Priority In 2019, there were 64 housing related Code Enforcement cases in the CDBG target area alone, this year the program will be expanded Citywide. Table 53 – Priority Needs Summary Narrative (Optional) 8.A.a Packet Pg. 247 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 119 SP-30 Influence of Market Conditions – 91.215 (b) Influence of Market Conditions Affordable Housing Type Market Characteristics that will influence the use of funds available for housing type Tenant Based Rental Assistance (TBRA) The City will make TBRA funds available for up to ten households at risk of homelessness through the St. Joseph’s Family Center Emergency Rental Assistance program, funded through the Gilroy local HTF. TBRA for Non-Homeless Special Needs The City will not make funds available for a TBRA for non-homeless special needs program. New Unit Production The City will not make funds available for new unit production. Rehabilitation As discussed in the Market Assessment, 50 percent of the City’s rental housing and 38 percent of the City’s homeowner housing is over the age of 40. Homes may require major repairs starting at 30 or 40 years of age. The City will fund through CDBG funds and Rebuilding Together Silicon Valley’s Rebuilding Home Repair Rehabilitation and Accessibility Modification Program in completing minor repairs of homeowner-occupied homes and larger rehabilitation repairs that otherwise would deem homes uninhabitable. Acquisition, including preservation The City will not make funds available for acquisition, including preservation. Table 54 – Influence of Market Conditions 8.A.a Packet Pg. 248 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 120 SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2) 1. Introduction Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of Consolidated Plan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG Public - Federal Admin and Planning Economic Development Affordable Housing Public Improvements Public Services $468,300 $27,000 $0 $495,300 $1,404,900 - Housing Trust Fund Public - Local Public Services TBRA $200,800 $0 $0 $200,800 $602,400 - Table 55 – Anticipated Resources Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied. The City may utilize local Housing Trust Fund dollars, as appropriate, to leverage and meet the goals determined in this Consolidated Plan. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the need s identified in the plan. The City’s 2015-2023 Housing Element identified three specific plan areas that may be used for housing for different income categories. The Glen Loma Specific Plan is able to accommodate 322 very low-and low-income housing units; the Hecker Pass Specific Plan does not accommodate low-income units; and the Downtown Gilroy Specific Plan can accommodate 455 lower-income units. The 2015-2023 Housing Element also identified vacant and underutilized land outside of specific plans that can accommodate 423 lower -income units. Additional opportunities may appear due to changes in recent housing legislation to streamline multi-family housing and accessory dwelling unit (ADU) developments. 8.A.a Packet Pg. 249 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 121 Discussion HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources to provide services to populations in need. 8.A.a Packet Pg. 250 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 122 SP-40 Institutional Delivery Structure – 91.215(k) Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions. Responsible Entity Responsible Entity Type Role Geographic Area Served City of Gilroy Government Homelessness Non-homeless special needs Neighborhood improvements Public facilities Public services Table 56 – Institutional Delivery Structure Assessment of Strengths and Gaps in the Institutional Delivery System The City is financially constrained and cannot meet all the needs identified in the Needs Assessment; however, the City continues to enter into partnerships with nonprofits to strategically meet some needs of the community. An especially pressing issue is meeting the needs of the City’s homeless population. The City will continue to work with nonprofits to meet the needs of its homeless individuals. Availability of services targeted to homeless persons and persons with HIV and mainstream services Homelessness Prevention Services Available in the Community Targeted to Homeless Targeted to People with HIV Homelessness Prevention Services Counseling/Advocacy X X Legal Assistance X Mortgage Assistance Rental Assistance X Utilities Assistance X Street Outreach Services Law Enforcement X Mobile Clinics Other Street Outreach Services Supportive Services Alcohol & Drug Abuse X Child Care X Education X Employment and Employment Training X X Healthcare X HIV/AIDS X Life Skills X X Mental Health Counseling X Transportation X Other Other Table 57 ‒ Homeless Prevention Services Summary 8.A.a Packet Pg. 251 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 123 Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) There are limited services available within the City to meet the needs of homeless individuals. Furthermore, there are no services available to those living with HIV and their families. Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness, including, but not limited to, the services listed above The City of Gilroy is geographically distant from much of Santa Clara County, including the County’s supportive services. This makes it difficult to provide supportive services to the City’s homeless population. The CoC had adopted the Community Plan to End Homelessness in Santa Clara County (2015-2020), which creates a community-wide roadmap to ending homelessness. The plan was created through a series of community summits related to specific homeless populations in the County. The plan identifies strategies to address the needs of homeles s persons in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth. The plan aims to implement the following three steps: Disrupt Systems: Develop disruptive strategies and innovative prototypes that transform the systems related to housing homeless people; Build the Solution: Secure the right amount of funding needed to provide housing and services to those who are homeless and those at risk of homelessness; and Serve the Person: Adopt an approach that recognizes the need for client-centered strategies with different responses for different levels of need and different groups, targeting resources the specific individual or household. Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs The City continues to engage in strategic partnerships with nonprofits to meet the basic needs of the City’s homeless population and leverage other funding sources in order to effectively use CDBG funds. 8.A.a Packet Pg. 252 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 124 SP-45 Goals Summary – 91.215(a)(4) Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Preserve affordable housing for home ownership 2020 2025 Affordable housing Citywide Affordable Housing – Rehabilitation of Existing Units CDBG: $721,819 Homeowner housing rehabilitated 20 large rehabilitation projects 240 minor rehabilitation projects 2 Install safety and enhanced public improvements 2020 2025 Non-Housing Community Development Citywide Public Improvements CDBG: $849,404 Public facility or infrastructure activities other than low/moderate-income housing benefit 5 safety projects 3 Support small business expansion 2020 2025 Non-Housing Community Development CDBG target area Expanding Economic Opportunities for Lower Income People CDBG: $0 Businesses assisted 5 businesses assisted 8.A.a Packet Pg. 253 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 125 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 4 Workforce development 2020 2025 Non-Housing Community Development Citywide Expanding Economic Opportunities for Lower Income People HTF: $157,500 Public service activities other than low/moderate-income housing benefit – 25 persons 5 Supportive services for homeless populations 2020 2025 Non-Housing Community Development Citywide Homelessness At risk of homelessness CDBG: $79,769 HTF: $332,069 Public service activities other than low/moderate-income housing benefit – 1,000 persons 300 VI-SPDAT administrations to literally homeless persons Tenant-based rental assistance Homelessness prevention – 50 households 40 VI-SPDAT administrations to at- risk of homelessness persons 8.A.a Packet Pg. 254 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 126 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 6 Supportive services for special needs populations 2020 2025 Non- homeless special needs Citywide Public services for non-homeless special needs populations CDBG: $288,204 HTF: $202,500 Public service activities other than low/moderate-income housing benefit 120 Frail Elderly/Elderly/Disabled persons in need of Adult Day Services 360 Long-term Care Residents 4,750 meals served to home-bound, elderly, disabled persons 2,550 Social visits/wellness checks 100 wellness and Education resources 325 Youth after school participants/campers 163 Youth swim lesson participants 170 housing services to consumers in need 50 safety net and emergency needs services 8.A.a Packet Pg. 255 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 127 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 7 Fair Housing Support 2020 2025 Affordable Housing Citywide Fair Housing HTF: $211,500 Public service activities other than low/moderate-income housing benefit 50 Fair housing complaint investigations 40 Fair housing consultations 15 Outreach and Education workshops 1,915 Information and referral calls 175 Case Management 8 Neighborhood Revitalization 2020 2025 Code Enforcement CDBG target area Prevention or elimination of slums or blight CDBG: $38,499 Housing code enforcement/Foreclosed property care 300 Cases Table 58 – Goals Summary Goal Descriptions 1 Goal Name Preserve affordable housing for homeownership Goal Description Homeowner housing rehabilitation 2 Goal Name Install safety and enhanced public improvements Goal Description Non-housing community development projects – safety related 3 Goal Name Support small business expansion 8.A.a Packet Pg. 256 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 128 Goal Description Assisting businesses in CDBG target area 4 Goal Name Workforce development Goal Description Job training programs – expanding economic opportunities for lower-income people 5 Goal Name Supportive services for homeless populations Goal Description Public services for homeless populations; TBRA for homelessness prevention using HTF funding 6 Goal Name Supportive services for special needs populations Goal Description Public services for non-homeless special needs populations 7 Goal Name Fair housing support Goal Description Fair housing complaint investigations and landlord/tenant counseling and dispute resolution 8 Goal Name Neighborhood Revitalization Goal Description Housing code enforcement/Foreclosed property care Table 58-B – Goal Descriptions Estimate the number of extremely low -income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) The City does not expect to provide affordable housing using HOME funds over the next five years. 8.A.a Packet Pg. 257 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 129 SP-50 Public Housing Accessibility and Involvement – 91.215(c) Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement) Not applicable. Activities to Increase Resident Involvements The SCCHA incorporates residents’ input into the decision-making process though the involvement of tenant commissioners and board members. The SCCHA has also created a Resident Counsel, comprising five residents from HUD-funded programs, which evaluates the effectiveness of the SCCHA’s rental assistance programs. The SCCHA also operates a Family Self Sufficiency Program designed so residents can be involved in the development of self-sufficiency goals, job training, and other services. Is the public housing agency designated as troubled under 24 CFR part 902? No. Plan to remove the “troubled” designation Not applicable 8.A.a Packet Pg. 258 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 130 SP-55 Barriers to affordable housing – 91.215(h) Barriers to Affordable Housing Generally, the City faces the same affordable housing barriers as the rest of the Bay Area, including:  High costs that constrain the development of affordable housing units in favor of higher -end units;  Lack of developable land, which prevents housing development and increases the price of land;  Local opposition that prevents affordable housing from being built in high-resource areas. Specifically, the City has identified constraints to the affordable housing and residential investment in its 2015-2023 Housing Element update. They include General Plan land use controls that constrain distribution of housing, density, and intensity as well as parking requirements that reduce the amount of available lot area for residential development. Stakeholders echoed these barriers and further identified that private companies that can contribute to the construction of affordable housing are not always approached. City residents reported experiencing discrimination in accessing housing. During community engagemen t, the City surveyed residents for their input on various community and housing needs. Of the 421 respondents, 30 percent of those surveyed said they personally experienced housing discrimination with 63 percent of those incidences occurring at an apartment, as opposed to a single-family home or other locations. Other types of housing where respondents reported discrimination include when applying for City/County programs, public or subsidized housing project, single-family home, and shared space. The two most common types of reported discrimination were racial (49 percent) and familial status (8 percent), and 64 percent of reported incidences were at the hands of a landlord , and 15 percent of discrimination reports named a City or County staff. Also, at regional community engagement meetings, City residents reported the most common or pressing housing problems to be lack of affordable housing supply, lack of affordable housing zoning, rising housing costs due to technology companies, and insufficient priva te sector funding for government/nonprofit programs. The City has not identified any local policies that constitute a barrier to affordable housing. Strategy to Remove or Ameliorate the Barriers to Affordable Housing The City has identified strategies to remove or ameliorate barriers to affordable housing in its 2015-2023 Housing Element, including:  Commitment to reviewing and revising the residential development ordinance to ensure it does not pose a constraint on the maintenance, development, and improvement of housing;  Coordination with private and nonprofit developers to encourage construction of residential development;  Evaluation of permit requirements with engagement from housing builders;  Conducting a study of the appropriateness of “micro-units” in Gilroy;  Development of affordable housing incentives, including parking reductions and reduced setback; and  Pursuit of additional funding sources from local, regional, state, and federal sources. 8.A.a Packet Pg. 259 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 131 To address discrimination against tenants, the City will c ontinue to promote fair housing services to residents through its website, monthly e-newsletter, online, brochures, and through outreach events every April. By contacting these service providers, residents can request information, assistance, and even advocacy related to foreclosure preventions, tenancy rights, and financial education. Last year, brochures were distributed to city-owned buildings and other public locations (e.g., City Hall, Library, post office, other community facilities) and by posting information on the City website. 8.A.a Packet Pg. 260 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 132 SP-60 Homelessness Strategy – 91.215(d) Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The Santa Clara Office of Supportive Housing surveys homeless individuals every two years and writes strategic plans every five years, both of which involve extensive community engagement. Addressing the emergency and transitional housing needs of homeless persons Peninsula Healthcare Connection provides integrated primary and mental healthcare and intensive case management for homeless individuals or those at risk of becoming homeless in Santa Clara County. New Directions is a community-based case management program for chronically homeless individuals with complex medical and psychosocial needs that aims to decrease the number of emergency room visits and hospital admissions. Community partners include Good Samaritan Hospital, Santa Clara Family Health Plan, Valley Homeless Healthcare Program, El Camino Hospital, Santa Clara Office of Supportive Housing, and Downtown Streets Team. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. It is recommended that chronically homeless individuals receive intensive case management that will assist them in finding housing, resources, and services that help them stay in housing. Case management is person-based rather than shelter-based and contains the goal of rapid re-housing. The five-year goals of the Community Plan to End Homelessness include creating approximately 5,500 housing opportunities for chronically homeless individuals, homeless veterans, and homeless children, youth, and families as well as access to the services that help keep them in housing. Additionally, part of the City’s local funds go toward funding publ ic services to address the supportive housing needs of very low-income and homeless individuals. Help low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are likely to become homeless a fter being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health, social services, employment, education or youth needs Services for those discharged from publicly funded institutions include the following:  The Valley Homeless Healthcare Program (VHHP) is part of the Santa Clara Valley Medical Center and provides medical services to homeless individuals, including primary care and urgent care. VHHP also manages a Medical Respite program for homeless individuals discharged from hospitals as well as a Backpack Homeless Health Care Program for those in encampments.45.  The County’s Social Services Agency has expedited the review process of homeless households’ CalFresh applications so that they may receive benefits within three days. 45 Valley Homeless Healthcare Program. Santa Clara Valley Medical Center. https://www.scvmc.org/clinics-and-locations/Valley-Homeless- Health-Program/Pages/overview.aspx 8.A.a Packet Pg. 261 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 133  The County’s Behavioral Health Services Department (BHS) has multiple programs to connect homeless individuals with housing or shelter assistance. BHS also treats those going throu gh behavioral health crises.  The County’s Reentry Resource Center provides services to those who have been previously incarcerated and to individuals who are homeless upon release. Services include referrals to drug treatment, housing assistance, food assistance, counseling, and other benefits.  The County’s Office of Supportive Housing’s (OSH) mission is to increase the supply of housing and supportive housing that is affordable and available to extremely low-income and/or special needs households. OSH supports the County mission of promoting a healthy, safe, and prosperous community by ending and preventing homelessness. 8.A.a Packet Pg. 262 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 134 SP-65 Lead-based Paint Hazards – 91.215(i) Actions to address LBP hazards and increase access to housing without LBP hazards The City provides information about lead-based paint hazards at the Community Development counter and inspects properties being rehabilitated or acquired for affordable housing. How are the actions listed above related to the extent of lead poisoning and hazards? As discussed in MA-20, there are approximately 3,400 homes in the City of Gilroy built before 1980 with possible lead-based paint hazard and children present. Children under six years of age are vulnerable to lead-based paint hazards. How are the actions listed above integrated into housing policies and procedures? The City complies with HUD lead-based paint testing requirements and tests housing developed prior to 1978 when being rehabilitated, especially when a child under six years of age is present in a household. 8.A.a Packet Pg. 263 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 135 SP-70 Anti-Poverty Strategy – 91.215(j) Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families Each goal and program identified above helps address poverty directly or indirectly. Additional programs currently operating within the City include:  Work2Future – operates a One-Stop Career Center in the City of Gilroy  SCCHA Family Self Sufficiency Program – participants are able to access job training and other services and are required to maintain employment or school enrollment. The goal of the program is to ultimately increase a household’s income and direct them to buying a house.  Sacred Heart Community Services – provides financial training, family services, emergency assistance loans, job search assistance, and essential services.  CDBG target area – includes actions to address poverty in areas of the City with a poverty rate of at least 25 percent. How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan The City will continue to implement the 2015-2023 Housing Element to provide housing opportunities to Gilroy residents and will implement the goals identified above to provide housing and supportive services to low-income households and special needs populations in Gilroy. 8.A.a Packet Pg. 264 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 136 SP-80 Monitoring – 91.230 Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long -term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements Every year, City staff conducts a desktop review of all subrecipients and on -site monitoring of all newly funded agencies for that program year, as well as agencies receiving $15,000 or more from City CDBG funds. Desktop review that indicates substandard performance will be followed up with phone contact and on-site review if needed. This will ensure long-term compliance with requirements of the programs involved. For any subrecipients that do not otherwise require on-site monitoring, City staff will provide specific technical assistance regarding benchmarks, reporting, and record keeping, prior to signing agreements. This assistance will be repeated in the ensuing years covered by the Consolidated Plan if there are new subrecipients or new agency staff responsible for administration of the Gilroy activity. Staff will monitor multifamily properties rehabilitated through past CDBG loans annually in accordance with the terms of the loan agreements. 8.A.a Packet Pg. 265 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 137 EXPECTED RESOURCES AP-15 Expected Resources – 91.220(c)(1,2) 1. Introduction The City anticipates receiving $468,300 in CDBG entitlement funds for the 2020-2021 program year. Table 59, Expected Resources – Priority Table, below lists all anticipated funding resources intended for community development activities during the 2020-2021 program year in the City of Gilroy. 8.A.a Packet Pg. 266 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 138 Expected Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG Public- Federal Admin and Planning Economic Development Housing Public Improvements Public Services $468,300 $27,000 - $495,300 $1,702,135 Funds will be used to support various community development activities including rehabilitation of existing units, helping homeless persons, and supporting the needs of the elderly/frail elderly and youth in the community. Local Housing Trust Fund (HTF) Public- Local Fair Housing Public Services $200,800 - - $200,800 $702,769 Funds will be used to support various community development activities including helping homeless persons, homelessness prevention, supporting the needs of the elderly/frail elderly/elderly and youth, and persons with disabilities in the community, and providing fair housing and landlord/tenant counseling and dispute resolution services. Table 59 – Expected Resources – Priority Table 8.A.a Packet Pg. 267 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 139 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City of Gilroy does not have a match requirement. There are additional federal grant programs the City can leverage to fund community development activities and increase the project efficiencies and benefits from economies of scale. These programs include:  Housing Choice Voucher Program;  Section 202;  Section 811; and  Affordable Housing Program through the Federal Home Loan Bank. These programs would not be provided to the City but rather the SCCHA and affordable housing developers. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Discussion The 2015-2023 Gilroy Housing Element identified a surplus capacity of 3,451 units throughout the jurisdiction. This capacity can be found in vacant and underutilized sit es, the Glen Loma Ranch Specific Plan area, Hecker Pass Specific Plan area, and the Downtown Specific Plan area. 8.A.a Packet Pg. 268 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 140 AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Preserve affordable housing for home ownership 2020 2021 Affordable housing Citywide Affordable Housing – Rehabilitation of Existing Units CDBG: $144,364 Homeowner housing rehabilitated: Minor Repairs – 48 housing units Larger Rehabilitation – 4 housing units 2 Install safety and enhanced public improvements 2020 2021 Non-Housing Community Development Neighborhood Revitalization Citywide Other Community Development Efforts CDBG: $169,881 Public facility or infrastructure activities other than low/moderate-income housing benefit – 1 Community Development Project 3 Workforce development 2020 2021 Anti-poverty strategy Homelessness Citywide Expanding Economic Opportunities for Lower Income People HTF: $35,000 Public service activities other than low/moderate-income housing benefit – 5 persons 4 Supportive services for homeless 2020 2021 Homelessness Citywide Homelessness At risk of homelessness CDBG: $15,954 HTF: $73,800 Public service activities other than low/moderate-income housing benefit – 200 persons Tenant-based rental assistance Homelessness prevention – 10 persons 8.A.a Packet Pg. 269 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 141 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 5 Supportive services for special needs populations 2020 2021 Non-homeless special needs Citywide Special Needs Services – Elderly/Frail Elderly Special Needs Services - Youth CDBG: $58,341 HTF: $45,000 Public service activities other than low/moderate-income housing benefit Meals on Wheels – 14 persons Housing and Emergency Services for Persons with Disabilities – 34 persons Adult Day Care – 24 persons Youth Center – 65 persons Swim Program – 15 persons Long Term Care Ombudsman – 72 persons 6 Fair housing support 2020 2021 Affirmatively Furthering Fair Housing Citywide Fair Housing HTF: $47,000 Public service activities other than low/moderate-income housing benefit Consultations/Complaint Investigations – 18 persons Information, Referral, Case Management – 118 persons 8.A.a Packet Pg. 270 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 142 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 7 Neighborhood Revitalization 2020 2021 Code Enforcement CDBG target area Prevention or elimination of slums or blight CDBG: $7,700 Housing code enforcement/Foreclosed property care 75 Cases Table 60 – Goals Summary 8.A.a Packet Pg. 271 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 143 Goal Descriptions 1 Goal Name Preserve affordable housing for homeownership Goal Description Homeowner housing rehabilitation 2 Goal Name Install safety and enhanced public improvements Goal Description Non-housing community development projects – safety related 3 Goal Name Workforce development Goal Description Job training programs – expanding economic opportunities for lower-income people 4 Goal Name Supportive services for homeless Goal Description Public services for homeless populations TBRA for homelessness prevention using HTF funding 5 Goal Name Supportive services for special needs populations Goal Description Public services for non-homeless special needs populations 6 Goal Name Fair housing support Goal Description Fair housing complaint investigations and landlord/tenant counseling and dispute resolution 7 Goal Name Neighborhood Revitalization Goal Description Housing code enforcement/Foreclosed property care 8.A.a Packet Pg. 272 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 144 PROJECTS AP-35 Projects – 91.220(d) 1. Introduction Projects # Project Name 1 Rebuilding Home Repair, Rehabilitation and Accessibility Modification Program 2 Adult Day Care (Gilroy) 3 Day Center 4 Long Term Care Ombudsman 5 Gilroy Youth Center 6 Swim Program 7 Meals on Wheels 8 Homelessness Prevention & Safety Net Services 9 Gilroy Street Team 10 Housing and Emergency Services for Persons with Disabilities 11 Day Center for the Homeless 12 Fair Housing 13 Landlord/Tenant Counseling & Dispute Resolution 14 Public Improvements 15 Planning and Administration 16 Neighborhood Revitalization Table 61 – Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Allocation priorities are determined based on the needs identified by analyzing data from HUD, ACS, and other sources and soliciting feedback from community members and local stakeholders. The City awards CDBG funds to organizations to provide public services and housing for low-income and special needs households. Additionally, the City leverage in the form of its HTF funds to fill necessary gaps in funding to offer programs that address additional priority programs that otherwise may not be addressed during the program year. HUD requires that 70 percent of all CDBG funds be spent on activities that would benefit low - to moderate income (LMI) households, which are those making 0-80% of AMI. The City allocates its CDBG funds to projects and programs that will primarily benefit 0-50% AMI households, the homeless, and special needs populations. 8.A.a Packet Pg. 273 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 145 AP-38 Project Summary Project Summary Information 1 Project Name Rebuilding Home Repair, Rehabilitation and Accessibility Modification Program Target Area Not applicable Goals Supported Affordable Housing – Rehabilitation of Existing Units Needs Addressed Affordable Housing Funding CDBG $144,364 Description Rebuilding Together Silicon Valley will make minor repairs to 48 low-income, single-unit, residential owner-occupied homes in Gilroy and larger rehabilitation repairs to 4 low-income, single-unit, residential owner-occupied homes in Gilroy, for owners who could not otherwise afford to make critical repairs in their homes, thus potentially resulting in health and safety issues. Grants may include funding for the addition of accessible features for disabled and/or elderly homeowners who may otherwise not be able to stay in their homes. Estimate the number and type of families that will benefit from the proposed activities Minor Repair Maintenance Goal: 48 Larger Rehabilitation Repair Goal: 4 Location Description Citywide Planned Activities See above description. 2 Project Name Adult Day Care (Gilroy) Target Area Not applicable Goals Supported Supportive services for special needs populations Needs Addressed Non-Homeless Special Needs Funding CDBG $11,292 Description Live Oak Adult Day Services will provide recreation activities and meals to 24 frail elderly and elderly unduplicated individuals. These activities keep individuals that visit Live Oak active and help with their social experience and stimulation. Adults in this program are those who are unable to live independently, and this program allows individuals to participate in many stimulating activities, while their caregivers go to work, run errands, or complete other necessary daily tasks. Estimate the number and type of families that will benefit from the proposed activities 24 frail elderly/elderly individuals Location Description Citywide Planned Activities Recreation activities and meals 3 Project Name Day Center Target Area Citywide Goals Supported Homelessness Needs Addressed Homeless Supportive Services Funding CDBG $15,954 Description The Gilroy Compassion Center’s Day Center is a drop-in center with basic amenities including bathrooms, personal hygiene supplies, shower and laundry facilities, manna bags, a weekly medical van, and case management. Estimate the number and type of families that will benefit from the proposed activities 200 homeless and chronically homeless individuals 8.A.a Packet Pg. 274 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 146 Location Description Gilroy Compassion Center – 370 Tompkins Court, Gilroy, CA 95020 Planned Activities Basic needs – 8,000 units, Case Management and VI-SPDAT – 60 individuals, Showers and Laundry – 670 total 4 Project Name Long Term Care Ombudsman Target Area Citywide Goals Supported Supportive services for special needs populations Needs Addressed Public services for non-homeless special needs populations Funding CDBG $9,410 Description Catholic Charities of Santa Clara County’s Long-Term Care Ombudsman program promotes the rights and well-being of residents in long-term care facilities in Santa Clara County. Estimate the number and type of families that will benefit from the proposed activities 72 persons living in long-term care Location Description Long term care centers - citywide Planned Activities Facility visits, visits with residents, and complaint resolution 5 Project Name Gilroy Youth Center Target Area Citywide Goals Supported Supportive services for special needs populations Needs Addressed Public services for non-homeless special needs populations Funding CDBG $36,884 Description The City of Gilroy Recreation Department Youth Center provides an after- school program and summer day camp programs to keep youth in the area engaged while their parents are at work for the day. Estimate the number and type of families that will benefit from the proposed activities 65 youth Location Description Gilroy Youth Center – Cesar Chavez Gym 227 Ioof Ave, Gilroy, CA 95020 Planned Activities Homework help, reading help, lunch, recreational activities, educational workshops, arts and crafts, field trips and events 6 Project Name Swim Program Target Area Citywide Goals Supported Supportive services for special needs populations Needs Addressed Public services for non-homeless special needs populations Funding CDBG $755 Description The City of Gilroy Recreation Department provides free swim lessons to LMI youth in the area to decrease probability of drownings in the area and teach life skills. Estimate the number and type of families that will benefit from the proposed activities 15 youth Location Description Christopher High School Aquatics Center – 850 Day Rd, Gilroy, CA 95020 Planned Activities Swim lessons 7 Project Name Meals on Wheels Target Area Citywide Goals Supported Supportive services for special needs populations Needs Addressed Public services for non-homeless special needs populations Funding HTF $20,000 Description The Health Trust Meals on Wheels delivers hot, nutritious meals five days a week, sometimes with the option of a once-a-week frozen meal, to seniors and 8.A.a Packet Pg. 275 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 147 adults with disabilities. In addition to delivering meals, their drivers also provide daily wellness checks, making sure that their clients are safe, alert, and cared for. Estimate the number and type of families that will benefit from the proposed activities 14 frail elderly/elderly persons and/or persons with disabilities Location Description Citywide Planned Activities Delivery of hot meals, five days a week, daily wellness checks 8 Project Name Homelessness Prevention & Safety Net Services Target Area Citywide Goals Supported Supportive services for homeless Needs Addressed Homelessness, at risk of homelessness Funding HTF $50,000 Description St. Joseph’s Family Center’s Homeless Prevention and Safety Net Services program provides emergency rental assistance, utility assistance, food assistance, and other supportive programs that help decrease the overall risk of becoming homeless and increase family well-being. Estimate the number and type of families that will benefit from the proposed activities 10 households at imminent risk of homelessness Location Description Citywide Planned Activities Emergency rental assistance, VI-SPDAT Assessments 9 Project Name Gilroy Street Team Target Area Citywide Goals Supported Workforce Development Needs Addressed Expanding economic opportunities for lower income people Funding HTF $35,000 Description The Gilroy Street Team project provides workforce development to low- income, vulnerable clients, including an opportunity to improve their job readiness through beautification projects across the City while gaining access to services and programs. Estimate the number and type of families that will benefit from the proposed activities 5 low-income persons Location Description Citywide Planned Activities Job readiness through beautification efforts/community clean-ups, totally approximately 1,500 hours. Connecting participants with services and programs. 10 Project Name Housing and Emergency Services for Persons with Disabilities Target Area Citywide Goals Supported Supportive services for special needs populations Needs Addressed Public services for non-homeless special needs populations Funding HTF $25,000 Description Silicon Valley Independent Living Center (SVILC) assists individuals with disabilities and their families in their housing search for affordable and accessible housing. SVILC provides low-income City of Gilroy residents who have disabilities with education and training on all aspects of how to conduct a housing search to obtain safe, affordable, accessible, long -term housing. Estimate the number and type of families that will benefit from the proposed activities 34 persons with disabilities 8.A.a Packet Pg. 276 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 148 Location Description Citywide Planned Activities Housing services, safety net and emergency needs services 11 Project Name Day Center for the Homeless Target Area Citywide Goals Supported Supportive services for homeless Needs Addressed Homelessness Funding HTF $23,800 Description The Gilroy Compassion Center’s Day Center is a drop-in facility with basic needs including clothing and personal care items. Estimate the number and type of families that will benefit from the proposed activities 200 persons experiencing homelessness Location Description Gilroy Compassion Center – 370 Tompkins Court, Gilroy, CA 95020 Planned Activities Clothes closet, personal care items 12 Project Name Fair Housing Target Area Citywide Goals Supported Fair housing support Needs Addressed Fair housing Funding HTF $21,000 Description Project Sentinel’s Fair Housing Center provides education and counseling to community members, housing providers, and tenants about fair housing laws. They also investigate complaints and advocate for those who have experienced housing discrimination. Lastly, Project Sentinel works with both landlords and tenants to help them understand their rights and responsibilities under the laws and ordinances that affect the rental relationship. Estimate the number and type of families that will benefit from the proposed activities 18 LMI households Location Description Citywide Planned Activities Fair housing complaint investigations, fair housing consultations, outreach and education 13 Project Name Landlord/Tenant Counseling & Dispute Resolution Target Area Citywide Goals Supported Fair housing support Needs Addressed Fair housing Funding HTF $26,000 Description Project Sentinel’s Landlord/Tenant Dispute Resolution program explains the rights and responsibilities of landlords and tenants, contact the other party and connect both parties with a mediator to assist tenants and landlords with settlement discussions around the pending unlawful detainer claims, mediate between Small Claims litigants and work with parties asking for restraining orders. Estimate the number and type of families that will benefit from the proposed activities 118 LMI households Location Description Citywide Planned Activities Information and referral calls and case management 14 Project Name Public Improvements Target Area CDBG target area Goals Supported Install safety and enhanced public improvements Needs Addressed Non-housing community development projects – safety related 8.A.a Packet Pg. 277 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 149 Funding CDBG $169,881 Description Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 15 Project Name Planning and Administration Target Area Citywide Goals Supported Not applicable Needs Addressed Not applicable Funding CDBG $99,060 Description Administer the administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. Estimate the number and type of families that will benefit from the proposed activities Not applicable Location Description Citywide Planned Activities See description above 16 Project Name Neighborhood Revitalization Target Area Citywide Goals Supported Prevention and elimination of slums or blight Needs Addressed Code Enforcement – eliminating health and safety violations Funding CDBG $7,700 Description Aimed at creating suitable living environments and arresting the decline of housing units in the CDBG target area. City staff implements the program and focuses on eliminating health and safety violations and increasing adherence to local building codes/standards. Estimate the number and type of families that will benefit from the proposed activities 75 housing units Location Description Citywide Planned Activities Respond to reports of regarding housing problems in the City. Inspect premises and work with owner to remedy housing problems to eliminate health and safety violations and adhere to local building codes/standards in order to prevent and eliminate slums or blight. 8.A.a Packet Pg. 278 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 150 AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed Geographic Distribution Target Area Percentage of Funds Citywide 64 CDBG target area 36 Table 62 - Geographic Distribution Rationale for the priorities for allocating investments geographically The CDGB target area was identified for economic development projects and to help small businesses because the area is a historically underutilized business zone and is also in need of additional revitalization. Additionally, the CDBG area consists of at least 51 percent LMI residents. All public service and affordable housing projects serve LMI households citywide. Discussion 8.A.a Packet Pg. 279 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 151 AFFORDABLE HOUSING AP-55 Affordable Housing – 91.220(g) 1. Introduction The one-year goal for the first year of the 2020-2025 Consolidated Plan will include two programs that support the City’s priority needs for homeless and special needs populations, and affordable housing. CDBG funds will be used to provide minor rehabilitation projects for 48 LMI homeowners and larger rehabilitation projects for 4 LMI homeowners. These rehabilitation projects are for homeowners who otherwise could not afford to make critical repairs in their homes, thus potentially resulting in health and safety issues that could cause a home to become uninhabitable and may lead to homelessness. Additionally, a home that lacks proper accessibility for its owner may lead to a serious accident that could cause an even larger financial burden. HTF funds will be used for homelessness prevention and safety net services, which will provide emergency rental assistance to 10 households in the City that are imminent risk of homelessness. One Year Goals for the Number of Households to be Supported Homeless 10 Non-Homeless 0 Special-Needs 52 Total 62 Table 63 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 10 The Production of New Units 0 Rehab of Existing Units 52 Acquisition of Existing Units 0 Total 62 Table 64 - One Year Goals for Affordable Housing by Support Type Discussion A detailed summary of projects can be found under the Projectl Summary (AP-38) of the Annual Action Plan. 8.A.a Packet Pg. 280 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 152 AP-60 Public Housing – 91.220(h) 1. Introduction While residents of the City may use Housing Choice Vouchers (formerly Section 8), these programs are managed and administered by the public housing authority, Santa Clara County Housing Authority (SCCHA). The SCCHA assists approximately 17,000 households through the Housing Choice Voucher program countywide. The SCCHA has four public housing units, but they are located in the City of Santa Clara. The SCCHA also develops, controls, and manages over four affordab le rental housing properties throughout the County. Actions planned during the next year to address the needs to public housing Not applicable; there are no public housing developments in the City. Actions to encourage public housing residents to become more involved in management and participate in homeownership While the majority of its units have been converted to affordable housing stock, the SCCHA is proactive in incorporating resident input into its policy-making process. An equitable and transparent policy-making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners on the SCCHA board. If the PHA is designated as troubled, describe the manner in which finan cial assistance will be provided or other assistance Not applicable. Discussion While the City does not operate any public housing, the City works closely with and supports the SCCHA. 8.A.a Packet Pg. 281 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 153 AP-65 Homeless and Other Special Needs Activities – 91.220(i) 1. Introduction Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including The 2020-2025 Consolidated Plan identifies providing basic needs and supportive services to homeless persons as a high priority need. The Consolid ated Plan identifies that 704 persons are experiencing homelessness in the City and 9,706 persons are experiencing homelessness countywide. The City participates in the County of Santa Clara Continuum of Care (CoC), which is administered by the Santa Clara County Office of Supportive Housing. The CoC has the primary responsibility to address homelessness regionally. Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The Santa Clara County Office of Supportive Housing conducts biennial Point in Time (PIT) counts to estimate the prevalence of homelessness in the jurisdictions in Santa Clara County, including the City. The CoC includes the results of the PIT count and survey reports to HUD in its annual application for funding to provide housing services, including homeless services. Currently, the Santa Clara County CoC receives approximately $26 million annually in federal funding. The most recent PIT count took place in January 2019. Every five years, the CoC prepares a community plan focused on ending homelessness in Santa Clara County. The current plan is for the five-year time period starting in 2015. The plan was developed through a series of community summits addressing specific homeless populations in the County. The CoC conducts extensive community engagement with the homeless populations in the development of both the PIT count and the strategic plan. Addressing the emergency shelter and transitional housing needs of homeless persons The City currently operates a temporary congregate cold weather shelter for six months out of the year, a small year-round family shelter, and two transitional housing programs. The Gilroy Compassion Center is open year-round and offers a day program that provides basic needs to persons experiencing homelessness, such as restrooms, showers, laundry, food, and clothing. The one -year goals of the City, to provide case management and administer the VI-SPDAT to 60 homeless individuals so that those individuals may be able to address and overcome barriers that prevent them from obtaining permanent housing and also become eligible for rapid rehousing or permanent supportive housing with local nonprofits throughout the County once they are entered into the Coordinated Entry Syst em. This goal will be met through the tow Day Center projects. More information can be found in project summary in AP-38. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The Gilroy Compassion Center is open year-round and offers a day program that provides basic needs to persons experiencing homelessness, such as restrooms, showers, laundry, food, and clothing. The one year goals of the City, are case management and to administer the VI-SPDAT to 60 homeless individuals 8.A.a Packet Pg. 282 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 154 so that those individuals may be able to address and overcome barriers that prevent them from obtaining permanent housing and also become eligible for rapid rehousing or permanent supportive housing with local nonprofits throughout the County once they are entered into the Coordinated Entry System. These goals will be met through two programs at the Day Center. More information can be found in the project summary in AP-38. Additionally, HTF funds will be used for a homelessness prevention and safety net services program to provide emergency rental assistance to 10 households. The St. Joseph’s Family Center oversees the homelessness prevention program and will also administer the VI-SPDAT to households that present at the center to seek services for homelessness prevention. These households may not qualify for the City’s emergency rental assistance program, but they may qualify for another homeless ness prevention program with a CoC program that participates in the Coordinated Entry System. Helping low-income individuals and families avoid becoming homeless, especially extremely low - income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs City funding will continue to support the following existing services:  The Valley Homeless Healthcare Program (VHHP) is part of the Santa Clara Valley Medical Center and provides medical services to homeless individuals, including primary care and urgent care. VHHP also manages a Medical Respite program for homeless individuals discharged from hospitals as well as a Backpack Homeless Health Care Program for those in encampments.  The County’s Social Services Agency has expedited the review process of homeless households’ CalFresh applications so that they may receive benefits within three days.  The County’s Behavioral Health Services Department (BHS) has multiple programs to connect homeless individuals with housing or shelter assistance. BHS also treats those going through behavioral health crises.  The County’s Reentry Resource Center (RRC) provides services to those who have been previously incarcerated and to individuals who are homeless upon release. Services include referrals to drug treatment, housing assistance, food assistance, counseling, and other benefits.  The County Office of Supportive Housing’s (OSH) mission is to increase the supply of housing and supportive housing that is affordable and available to extremely low-income and /or special needs households. OSH supports the County mission of promoting a healthy, safe, and prosperous community by ending and preventing homelessness. Discussion 8.A.a Packet Pg. 283 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 155 AP-75 Barriers to Affordable Housing – 91.220(j) 1. Introduction The City is subject to the same barriers to affordable housing that e xist across the Bay Area. These issues include the high cost of development, constraining the development of affordable housing units in favor of higher-end units, and the lack of developable land, which prevents housing development and increases the price of land. Additionally, the County’s Assessment of Fair Housing identified the following contributing factors to fair housing issues, including affordable housing, through analysis of data and community engagement feedback:  Displacement of residents due to economic pressures  Land use and zoning laws  Source of income discrimination  Community opposition  Availability, type, frequency, and reliability of public transportation  Lack of access to opportunity due to high housing costs  Lack of affordable, accessible housing in a range of unit sizes  Lack of affordable housing for individuals who need supportive services  Lack of assistance for housing accessibility modifications  Lack of resources for fair housing agencies and organizations  Location and type of affordable housing  Loss of affordable housing  Private discrimination The most relevant contributing factor to the City of Gilroy’s barrier to affordable housing is the high cost of land and lack of funding for affordable housing. Survey results also identified discrimination as a barrier to acquiring affordable housing. Respondents expressed that they were discriminated against on the basis of sex, familial status, or other reasons. Actions it planned to remove or ameliorate the negative effects of public p olicies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In its 2015-2023 Housing Element update, the City of Gilroy identified opportunities and potential solutions for providing housing:  Develop a task force for development plans for housing.  Day laborers can call the Compassion Center and Maria Day Worker Center in Mountain View to get more information.  More money for affordable housing; partner with the County and City for housing money. 8.A.a Packet Pg. 284 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 156  San Francisco is seeing micro units (small units with a bedroom and the rooftop garden is the “family room”). This type of housing could work in Gilroy’s climate. The City could do a study of micro units and revise the zoning code to allow them.  High-density housing in the downtown area has been well received by the community because it supports businesses downtown.  At the County, CDBG money is used for grants for housing rehabilitations (about 10 homes/year); the Planning Department reaches out to owners with code issues.  Gilroy has a home access program and $10,000 of CDBG for compliance issues. Discussion See above 8.A.a Packet Pg. 285 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 157 AP-85 Other Actions – 91.220(k) 1. Introduction: Actions planned to address obstacles to meeting underserved needs The Needs Assessment and Market Analysis of the 2020-2025 Consolidated Plan helped develop the City’s priority needs for LMI persons, persons exper iencing homelessness, special needs populations, and community development needs. Actions planned to foster and maintain affordable housing Rebuilding Together Silicon Valley will receive CDBG funds which will be used to provide minor rehabilitation projects for 48 LMI homeowners and larger rehabilitation projects for 4 LMI homeowners. These rehabilitation projects are for homeowners who other wise could not afford to make critical repairs in their homes, thus potentially resulting in health and safety issues that could cause a home to become uninhabitable and may lead to homelessness. Additionally, a home that lacks proper accessibility for its owner may lead to a serious accident that could cause an even larger financial burden. St. Joseph’s Family Center will receive HTF funds which will be used for homelessness prevention and safety net services, which will provide emergency rental assistance to 10 households in the City that are at imminent risk of homelessness. Actions planned to reduce lead-based paint hazards The City provides information about lead-based paint hazards at the Community Development counter and inspects properties being rehabilitated or acquired for affordable housing. Additionally, any homeowner units that participate in Rebuilding Together Silicon Valley’s affordable housing project will be assessed for possible lead-based paint prior to rehabilitation. Actions planned to reduce the number of poverty-level families The City works to reduce the number of poverty-level families through all projects by making the projects available to LMI households citywide. Some projects were created to address the need of expanding economic opportunities for lower-income people and others may offer additional benefits in reducing poverty, simply by way of design.  The Gilroy Street Team project provides workforce development to low-income, vulnerable clients, including an opportunity to improve their job readiness through beautification projects across the City while gaining access to services and programs.  The Live Oak Adult Day Care program provides recreation and socialization for persons who are unable to live independently. This program allows their caretakers to go to work during the hours that the program is open. Were it not for this program, the caretaker may not be able to earn an income for the household because the person using the day program does not have anywhere else to go during that time.  The Rebuilding Together Silicon Valley program will aid low-income homeowners in making necessary health and safety and accessibility repairs to their homes that they otherwise would not be able to afford and which may otherwise may lead to uninhabitability and then homelessness.  The Gilroy Youth Center program provides an after-school program and summer day camp programs to keep youth in the area engaged while their parents are at work for the day. 8.A.a Packet Pg. 286 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 158 Actions planned to develop institutional structure The City is financially constrained and cannot meet all the needs identified in the Needs Assessment; however, the City continues to enter into partnerships with nonprofits to strategically meet some needs of the community. An especially pressing issue is meeting the needs of the City’s homeless population. The City will continue to work with nonprofits to meet the needs of its homeless individuals. Two projects during the plan year, Day Center and Homeless Prevention & Safety Net Services , will administer the VI-SPDAT, which will connect persons experiencing homelessness and those at imminent risk of homelessness to nonprofits that provide housing and supportive services. Actions planned to enhance coordination between public and private housin g and social service agencies Local nonprofits are partnering with sister city Morgan Hill to operate a Safe Parking Program for South County. Morgan Hill has developed and fine-tuned an operational model that could be replicated in Gilroy. These nonprofits are also developing camping programs that are run out of county campgrounds outside of city limits. Discussion See discussion above 8.A.a Packet Pg. 287 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) City of Gilroy Draft 2020 - 2025 Consolidated Plan │ 159 PROGRAM SPECIFIC REQUIREMENTS AP-90 Program Specific Requirements – 91.220(l)(1,2,4) 1. Introduction Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $27,000 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan $0 3. The amount of surplus funds from urban renewal settlements $0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0 5. The amount of income from float-funded activities $0 Total Program Income $27,000 Other CDBG Requirements 1. The amount of urgent need activities $0 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: N/A 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: N/A 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: N/A 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: N/A 8.A.a Packet Pg. 288 Attachment: Draft 2020-2025 Consolidated Plan (2851 : CDBG and HTF Funding Priorities FY20-21) Memorandum Date: March 11, 2020 To: Housing and Neighborhood Revitalization Committee From: Sue O’Strander, AICP, Deputy Community Development Director Subject: Recommendations for FY 2020-2021 Capital Project Grants In late February 2020, the Community Development Department sent out a Call For Projects to all City Departments to identify potential capital improvement projects. Earlier, the federal government released a formula allocation of $468,000 to Gilroy for fiscal year (FY) 2020-2021 Community Development Block Grant (CDBG) funding. To align with the goals and objectives of the City’s 5-Year Consolidated Plan, proposed capital projects must consist of “Install safety and enhanced public improvements within low/moderate income blocks.” (This is the proposed goal language at the time of report preparation.) In past years, the Public Works, Community Development, and Recreation Departments have typically been key participants in this process. PRELIMINARY PROJECTS A meeting was conducted on February 26, 2020 with staff members representing the Public Works and Community Development Departments. In total, 7 potential capital projects were identified. Due to limited funding and staff workload, not all projects can proceed in the 2020- 2021 Program Year. The Committee is requested to prioritize the projects based on recommended criteria: compliance with ConPlan goals, level of benefit to low/mod income individuals and families, and project timing. The costs and details of each project are summarized below for committee consideration, and presented in no particular order. For convenience, criteria factors are also included: Project Name/ Brief Description Anticipated Timing/Durat ion Low/Moderate Income Percentage of Project Area Meet City’s Consolidated Plan Goal(s)? Estimated Cost Miller Crossing and Uvas Creek Pedestrian Improvements: Enhance pedestrian safety at Miller Ave/Uvas Park Drive intersection, including raised concrete sidewalk for levee trail users to cross Miller, new concrete sidewalk with ADA- compliant curb ramp and retaining wall at southwest corner of the intersection. Complete project design FY 2020-21 and build-out FY 2021-22 51.1% (Citywide) Yes $154,000 ($19,000 through design; $135,000 through construction) Mantelli & Church Bulb-Out and Crosswalk Improvements: Enhance pedestrian safety crossing Mantelli Drive at Mantelli & Church intersection, including new bulb-out with ADA- Complete project design FY 2020-21 and build-out 63.9% Yes $142,000 ($18,000 through design; $124,000 through construction) City of Gilroy Housing Division 8.A.b Packet Pg. 289 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities Project Name/ Brief Description Anticipated Timing/Durat ion Low/Moderate Income Percentage of Project Area Meet City’s Consolidated Plan Goal(s)? Estimated Cost compliant curb ramps at northwest corner of the intersection, and relocation of stop sign to be closer to travel lane. FY 2021-22 Sidewalk Gap Closure – 8340 Swanston Lane: Close a gap location with construction of approximately 1,200 square feet of new sidewalk and 240 linear feet of curb and gutter on the east side of Swanston Lane, between Leavesley Rd and Casey Ln. 76% Yes $106,000 ($13,000 through design; $93,000 through construction) Murray Ave Sidewalk Gap Closure: Construct approximately 2,000 linear feet of sidewalk on the west side of Murray Avenue between Kishimura Drive and Leavesley Road. This project would complete the pedestrian network on this segment so that pedestrian access would be provided on both sides of the street. Complete project design FY 2020-21 and build-out FY 2021-22 76% Yes $1,235,000 ($131,000 through design; $110 for Right-of-Way acquisition; $994,000 through construction) Annual Sidewalk/Curb Ramp Program: This project will install new sidewalk (gap closures) and curb ramps, both new and replacement of non- compliant existing ramps, where eligible for annual Community Development Block Grant (CDBG) funding. Currently, these improvements can happen only in the City’s NRSA zone. Depending on the potential adoption of a city wide neighborhood revitalization area designation, these funds may be used more broadly throughout the City in the future. Annual program 51.1% (Citywide) Yes $175,000 annually Monterey Gateway Senior Apartments: Provide new pedestrian connections from the new development, currently under construction, in response to a letter received by the federal Housing and Urban Development (HUD) to provide such connections. HUD recommendations include northerly connection to 10th Street, southerly connection to Luchessa, and westerly across Monterey Road. Multi-year 73.7% Yes $365,000 ($37,000 through design, $328,000 through construction) El Rancho Foods Sidewalk Gap Closure: Create a dedicated connection from the public sidewalk on the west-side of Church St (north of the alley adjacent to El Rancho Foods) to the public sidewalk at the northwest corner of Church and First Street. Multi-year 77.7% Yes $118,400 ($14,000 through design, $104,400 through construction) NEXT STEPS Recommendations made by the Committee will be presented to the City Council at a public hearing on April 6, 2020. The final projects will be incorporated into the FY 2020-2021 Annual Action Plan, which will be part of the 5-Year Consolidated Plan for 2020-2025. The Consolidated Plan is anticipated to be completed and available for public review and comment in early April. At a subsequent public hearing, on May 4, 2020, the City Council will consider approval of the Consolidated Plan along with the FY 2020-2021 Annual Action Plan. 8.A.b Packet Pg. 290 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Miller Crossing & Uvas Creek Pedestrian Improvements Project No. EN2115 Category Streets/Traffic Control Department Public Works/Engineering Project Type New Project Manager Nirorn Than Council Priorities Ensure Financial Stability, Ensure Neighborhoods Benefit Equally from City Services Location Miller Avenue / Uvas Creek Levee Trail Intersection Project Description and Purpose This project would enhance pedestrian safety at the Miller Avenue/Uvas Park Drive intersection. The scope of work would include: • Install raised concrete crosswalk for levee trail users to cross Miller Avenue • Install concrete sidewalk and retaining wall at the southwest corner of the intersection • Install ADA-compliant curb ramp at the southeast corner of the intersection Project Justification Staff has received multiple complaints from residents as well as comments from the Bicycle and Pedestrian Commission regarding the safety of pedestrians crossing at this intersection. It was reported that drivers are not making a complete stop at the intersection, more specifically at the west leg of the intersection. As this intersection serves nearby neighborhoods, Gilroy High School, Solarsano Middle School, and Christmas Hill Park, it is important to investigate and identify possible solutions for this intersection. This project would also provide for ADA-compliant improvements at this intersection. Master Planning Documents This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. Project Funding (Public Works) (EN2115) Uvas Park Drive Miller Avenue Conceptual Rendering of Similar Improvements Levee Trail 8.A.b Packet Pg. 291 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Pre-Design $1,000 $1,000 Design $15,000 $15,000 CEQA $3,000 $3,000 Construction $129,000 $129,000 Const. Support $6,000 $6,000 Total $ $$19,000 135,000$ $ $ $ $154,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ Financial Comments Due to potential impacts to the Uvas Creek Levee, this project would require permitting with Valley Water as well as the US Army Corps of Engineers. Estimated Project Schedule Timeline Project Design FY2020-21 Project Advertisement FY2021-22 Project Construction FY2021-22 Project Completion FY2021-22 Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 292 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Mantelli & Church Bulb-Out and Crosswalk Improvements Project No. EN2113 Category Streets/Other Concrete Features Department Public Works/Engineering Project Type New Project Manager Nirorn Than Council Priorities Ensure Financial Stability, Ensure Neighborhoods Benefit Equally from City Services Location Mantelli Drive / Church Street Intersection Project Description and Purpose This project will install improvements to enhance the safety of pedestrians crossing Mantelli Drive at the intersection of Mantelli Drive and Church Street. The scope of work includes: • Install concrete bulb-out at the northwest corner of the intersection • Install ADA-compliant directional curb ramps at the northwest corner of the intersection • Relocate the stop sign at the northwest corner so it is closer to the travel lane Project Justification Staff has received multiple complaints from residents regarding pedestrian safety at this skewed intersection, including observations of drivers turning right from southbound Church Street to westbound Mantelli Drive without stopping at the stop sign (i.e., treating it as a “free” right-turn). The crosswalk on the west leg of the intersection is also unusually long due to the skewed geometry of the intersection. These improvements would discourage drivers from treating the southbound right-turn movement as a “free” right-turn. Master Planning Documents This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. Project Funding (Public Works) (EN2113) Project Corner 8.A.b Packet Pg. 293 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Pre-Design $1,000 $1,000 Design $16,000 $16,000 CEQA $1,000 $1,000 Construction $118,000 $118,000 Const. Support $6,000 $6,000 Total $ $18,000 $124,000 $ $ $ $142,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ Financial Comments Estimated Project Schedule Timeline Project Design FY2020-21 Project Advertisement FY2021-22 Project Construction FY2021-22 Project Completion FY2021-22 Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 294 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Sidewalk Gap Closure – 8340 Swanston Lane Project No. EN2120 Category Streets/Curbs & Sidewalk Department Public Works/Engineering Project Type New Project Manager Eric Argamaso Council Priorities Enhanced Public Safety, Ensure Neighborhoods Benefit Equally from City Services Location Swanston Lane between Leavesley Road and Casey Lane Project Description and Purpose This project will construct approximately 1,200 square feet of new sidewalk and 240 linear feet of new curb and gutter on the east side of Swanston Lane between Leavesley Road and Casey Lane to close the existing gap in continuous sidewalk. This project would complete the pedestrian network on this segment so that pedestrian access would be provided on both sides of the street. Project Justification Residents have expressed safety concerns regarding the lack of continuous sidewalk along this segment of Swanston Lane. This project will enhance safety, connectivity, and access in low- and moderate-income neighborhoods that fall within the City’s Neighborhood Revitalization Strategy Area (NRSA), as designated by the US Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program. Master Planning Documents This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. Project Funding (Public Works) (EN2120) 8.A.b Packet Pg. 295 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Pre-Design Design $13,000 CEQA Construction $89,000 Const. Support $4,000 Total $ $ $ $ $ $ $106,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ Financial Comments Estimated Project Schedule Timeline Project Design Project Advertisement Project Construction Project Completion Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 296 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Murray Street Sidewalk Gap Closure Project No. EN2117 Category Streets/Curb & Sidewalk Department Public Works/Engineering Project Type New Project Manager Eric Argamaso Council Priorities Ensure Financial Stability, Enhanced Public Safety, Ensure Neighborhoods Benefit Equally from City Services Location Murray Avenue between Kishimura Drive and Leavesley Road Project Description and Purpose The Murray Avenue Sidewalk Gap Closure Project will construct approximately 2,000 linear feet of sidewalk on the west side of Murray Avenue between Kishimura Drive and Leavesley Road. This project would complete the pedestrian network on this segment so that pedestrian access would be provided on both sides of the street. Project Justification Numerous residents and businesses on the west side of this segment of Murray Avenue do not have pedestrian facilities along their property’s frontage. The lack of a continuous sidewalk on this segment of Murray Avenue also impacts the ability of transit users to access the bus stops in the area. This project will enhance safety, connectivity, and access in low- and moderate-income neighborhoods that fall within the City’s Neighborhood Revitalization Strategy Area (NRSA), as designated by the US Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program. Master Planning Documents This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. Project Funding (Public Works) (EN2117) 8.A.b Packet Pg. 297 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Pre-Design $9,000 $9,000 Design $122,000 $122,000 ROW $110,000 $110,000 Construction $912,000 $912,000 Const. Support $82,000 $82,000 Total $ $241,000 $994,000 $ $ $ $1,235,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ Financial Comments Estimated Project Schedule Timeline Project Design FY2020-21 Project Advertisement FY2021-22 Project Construction FY2021-22 Project Completion FY2021-22 Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 298 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Annual Sidewalk/Curb Ramp Project Project No. EN2147 Category Streets/Curb & Sidewalk Department Public Works Project Type New Project Manager TBD Council Priorities Enhance Public Safety Capabilities, Ensure Neighborhoods Benefit Equally from City Services Location NRSA Zone Project Description and Purpose This project will install new sidewalk (gap closures) and curb ramps, both new and replacement of non-compliant existing ramps, where eligible for annual Community Development Block Grant (CDBG) funding. Currently, these improvements can happen only in the City’s NRSA zone. Depending on the potential adoption of a city wide neighborhood revitalization area designation, these funds may be used more broadly throughout the City in the future. Project Justification The City is required to install and maintain ADA accessible curb ramps and accessible sidewalk along publicly accessible pathways within the City. This project will focus on installing and upgrading ADA curb ramps in areas approved for CDBG funds expenditure. Consideration will also be given to locations along streets scheduled to be paved under the annual Street Resurfacing Project, which is funded using Measure B and SB-1 funds. This will allow the maximum use of the paving funds for asphalt rehabilitation. Construction of these compliant new curb ramps will improve the accessibility and safety for the pedestrians in Gilroy. Master Planning Documents This project is not specifically listed in any master plan document. Project Funding (Public Works) (EN2147) 8.A.b Packet Pg. 299 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Pre-Design Design CEQA Construction Const. Support Total $ $ $ $ $ $ $175,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $175,000 Financial Comments Estimated Project Schedule Timeline Project Design Project Advertisement Project Construction Project Completion Operational Cost Impact No impact. 8.A.b Packet Pg. 300 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name Gateway Senior Apartments Pedestrian Crossing Safety Improvements Project No. EN2154 Category Streets/Street Lights Department Public Works Project Type New Project Manager Council Priorities Enhance Public Safety Capabilities Location Monterey Street between Tenth Street and Luchessa Ave Project Description and Purpose This project will install a High-Intensity Activated Crosswalk (HAWK), high visibility crosswalk improvements, and curb ramps to provide a safe pedestrian crossing of Monterey Street in front of the Gateway Senior Apartments. Project Justification The location of the Gateway Senior Apartments currently has challenges and safety issues in terms of the surrounding pedestrian infrastructure along Monterey Street. The project was approved without any adjacent sidewalk improvements. In a letter from the US Department of Housing and Urban Development (HUD) received on February 13th, 2020, the Office of Fair Housing and Equal Opportunity expressed concerns over the lack of pedestrian accessibility in that area . This project addresses these accessibility gaps by providing safe pedestrian access to the west side of Monterey Road where there are existing pedestrian improvemen ts that lead to the Downtown. This project meets the City Council goal of ‘Enhance Public Safety Capabilities’. Master Planning Documents 8.A.b Packet Pg. 301 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. Project Funding (Department) (Project No.) Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Design $37,000 CEQA Construction $291,000 Const. Support $37,000 Total $ $ $ $ $ $ $365,000 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ - Financial Comments This project is located within the NRSA zone, and is eligible to be fully funded using CDBG Capital funds under the CDBG Matrix Code 3K (Street Improvements). Estimated Project Schedule Timeline Planning FY20-21 Project Design FY20-21 Project Advertisement FY21-22 Project Construction FY21-22 Project Completion FY21-22 Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 302 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Name El Rancho Foods Sidewalk Gap Closure Project No. EN2155 Category Streets/Curb & Sidewalk Department Public Works Project Type New Project Manager Council Priorities Enhance Public Safety Capabilities Location Church St. (Along eastern façade of El Rancho Foods Supermarket) Project Description and Purpose This project will construct new sidewalk, curb and gutters along the eastern facade of the El Rancho Foods Supermarket along Church Street between the head of the parking bay and the building. Parking will be shifted partially out into the street to accommodate the new walkway against the building. The sidewalk will tie into the existing sidewalk north and south of the building site. Project Justification The City has had a number of complaints over the past several years regarding the lack of continuous sidewalk along the Church Street frontage of this property. Due to the existing diagonal parking configuration against the building, pedestrians are forced out into the street to travel along this portion of Church Street. The project has the potential to be funded by Community Development Block Grant (CDBG) Funds because of its location in the City’s Neighborhood Revitalization Strategy Area, and its benefit to low-income residents in the City. This project meets the City Council goal of ‘Enhance Public Safety Capabilities.’ Master Planning Documents This project is not specifically listed in any master plan document, but it is consistent with the City’s General Plan goals and policies. These goals and policies include correcting deficiencies and ensuring pedestrian facilities serve the function they are intended to serve. 8.A.b Packet Pg. 303 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities CITY OF GILROY 2021-2026 CAPITAL IMPROVEMENT PROGRAM Project Funding (Department) (Project No.) Project Costs Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Design $13,000 CEQA $1,000 Construction $85,400 Const. Support $19,000 Total $ $ $ $ $ $ $118,400 Funding Source Total Prior FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Project Total Total $ $ $ $ $ $ $ - Financial Comments This project is located within the NRSA zone, and is eligible to be fully funded using CDBG Capital funds under the CDBG Matrix Code 3L (Sidewalks). Estimated Project Schedule Timeline Planning FY20-21 Project Design FY20-21 Property Acquisition FY20-21 Project Advertisement FY21-22 Project Construction FY21-22 Project Completion FY21-22 Operational Cost Impact There are no operational costs associated with this project. 8.A.b Packet Pg. 304 Attachment: Memo to HNRC, Capital Improvement Projects for FY20-21 CDBG Funding (3-11-20) (2851 : CDBG and HTF Funding Priorities City of Gilroy STAFF REPORT Agenda Item Title: General Fund Financial Recovery Plan - Sustainable Budget Recommendations Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Bryce Atkins Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve the City of Gilroy General Fund Financial Recovery Plan and direct staff to commence implementation of the recovery plan’s recommendations. BACKGROUND At the May 4th and May 18th, 2020 regular City Council meetings, staff brought before the City Council reports that detail both a funding shortfall due to the COVID -19 emergency incident, as well as an ongoing structural deficit. As reported at the May 4th meeting, there is a projected shortfall of $7.0 million in revenue in FY20, with an additional shortfall in FY21 of $4.3 million. These shortfalls are in the City’s General Fund, which is the primary funding source for essential services, 9.A Packet Pg. 305 including police, fire, emergency medical, planning, building safety, streets and park services. In addition, staff presented at the May 18th meeting that the City is forecasting (separate from, and in addition to, the COVID-19 impacts) a structural deficit amounting to an annual average of $8 million, where expenditures exceed revenues each fiscal year in to the future. Below is the 5-year General Fund Forecast, including the one-time solutions and use of the Economic Stability Reserve. The totals of the Budget Solutions and use of reserves are presented below the model. FY20 FY21 FY22 FY23 FY24 FY25 Beginning Fund Balance 21,258,870$ 17,354,504$ 12,309,713$ 4,368,697$ (3,900,222)$ (11,461,698)$ Add: Revenues 48,658,145$ 52,666,803$ 51,956,202$ 53,870,605$ 56,696,956$ 58,236,185$ Less: Expenditures (59,087,511)$ (57,711,594)$ (59,897,218)$ (62,139,524)$ (64,258,432)$ (66,431,992)$ Budget Solutions 6,525,000$ -$ -$ -$ -$ -$ Ending Fund Balance 17,354,504$ 12,309,713$ 4,368,697$ (3,900,222)$ (11,461,698)$ (19,657,505)$ Operating Margin/ Use of Reserves $ (3,904,366) $ (5,044,791) $ (7,941,016) $ (8,268,920) $ (7,561,476) $ (8,195,807) The $10.4 million in budget solutions include:  $2.0 million – Transfer from Capital Outlay Fund  $0.6 million – Sports Park Expansion  $1.7 Million – Land Acquisition  $1.7 million – Glen Loma Fire Station  $0.5 million – ERP Savings  $3.9 million – Use of Economic Stability Reserve This amount helps resolve the current fiscal year’s revenue shortfalls, but does not address the amounts going forward for the recession or the ongoing structural deficit. As part of the staff reports, staff introduced that a recovery plan would be brought back before Council in June to consider a series of staff recommended adjustments to the expenditures of the City to resolve these matters. This proposed recovery plan identifies the recommended reductions and the service impacts that would result from these measures to resolve the structural deficit going forward. RECOVERY PLAN FUNDAMENTALS Recovery Plan Philosophy In crafting the recovery plan staff identified a series of five concepts that have been identified as the Recovery Plan Philosophy. These concepts have shaped the formation of the plan and the essential nature of the reductions that are proposed in the plan. Below are the five concepts. 1. Maintain Services to the Greatest Extent Possible 9.A Packet Pg. 306 To form the plan, maintaining service to our residents was confirmed a s a top priority. In furthering that philosophy, staff focused on reductions with the least impacts to the services being delivered by the City. While none of the reductions are devoid of impacts, they are the reductions staff believes provide the least amount of disruption to the services our residents are accustomed to receiving. 2. Protect Vulnerable Populations In many of the City's departments, services are provided to what are considered vulnerable populations. These include at risk youth, senior citize ns, and citizens with underlying health (physical and/or mental) concerns. In evaluating the services being provided by the City, consideration was made to ensure services to these vulnerable populations are maintained despite the reductions being proposed. 3. Functional Priorities Staff have attempted to classify the services that are provided by the City into categories that recognize the differing nature of the services, specifically the nature of why the service is being provided. These categories are ide ntified below:  Fundamental Services A fundamental service is a service categorized as being required by law or necessary for basic, minimum public safety and health services. Fundamental services benefit the general public, and the private sector does not or cannot provide them. Good examples of these include police services, fire services and street maintenance.  Supportive Services Supportive Services are those that provide support to fundamental services, either being required to facilitate the provision of fundamental services in the first place, or they improve the quality or level of fundamental services in a very noticeable manner. These typically serve a broad group of beneficiaries. An example of this type of service include regular financial reporting.  Discretionary Services Discretionary services are those where no requirement to provide them exist. These services either improve the quality of government and/or its community. They may be part of a modern, efficient, and effective government. They also provide at times a “convenience” and/or enhanced customer service that could be provided by the private sector or another public or non-governmental organization. The cost-benefit ratio for these types of service are not typically high. These categories have been identified for the reductions that are proposed within this recovery plan. 9.A Packet Pg. 307 4. Service Delivery – “boots on the ground” In considering the concepts described above staff has proposed that part of the philosophy for the recovery plan should be to keep service delivery as a focus. As part of this there is a need to keep those positions that directly serve residents, whether through direct contact (i.e. police and fire services, front counter customer service positions) or provision of basic services (i.e. water and sewer utility service, back office customer service support positions) to be preserved to the best extent possible given the financial needs of the City. As such, the reductions below attempt to keep the impacts to these types of positions to a minimum. Conversely, management positions, both executive and mid -management, have been a predominate focus in the consideration of reductions. This does not mean that manager positions are the only positions to be reduced, but rather where opportunities exist for management functions to be redistributed to other positions, whether other managers or to empowered line staff, such opportunities are the first option for reductions. 5. Recreation Philosophy Recreation has a significant role in providing services to the vulnerable populations and these should be preserved and supported by the General Fund. Namely services like the Senior Center, Adaptive Program, San Ysidro Park and Cesar Chavez center for at-risk youth services among others, are important to continue and are not services residents can obtain elsewhere. Beyond these programs, all other recreation programs should have full cost recovery. As such, a reset of the Recreation Department’s services is necessary and is explained more in the discussion regarding the Recreation Department cost reductions. Sustainable Finances: Fixing Issues Now In addition to the philosophy of the reductions, it is also critical to ensure that the budget is sustainable into the future and addresses critical service issues Council has identified as a priority for the community. Below are a few of the fixes staff is attempting to address as part of this recovery plan:  Fire Alternative Service Model (ASM) As Council will recall, the ASM for the Fire Department was developed around a quick response vehicle to provide rapid emergency medical services for residents in the Glen Loma area as the City worked with and waited for the developer to reach a point to construct the Glen Loma Fire Station. This ASM started as a pilot program that was operated through a one-time appropriation of overtime for the use of existing firefighters to staff the ASM. The ASM has produced positive results as relates to Fire Department response times in the area, as well as throughout the City when the ASM is staffed. However, the use of overtime to provide this service on an ongoing basis is not recommended and has had consequences. As the pilot program has progressed 9.A Packet Pg. 308 with overtime, increased exhaustion and workplace injury has been noticed within the Fire Department which is attributable, in part, to the ASM. This places the long-term sustainability of the ASM in jeopardy. In considering options, and in light of the delay in the Glen Loma Fire Station construction, staff is proposing to increase staffing in the Fire Department to allow the ASM to be staffed with firefighters and captains as part of their normal hours, increasing the viability of the program into the future. This adjustment is the only increase that that is being proposed as part of the financial recovery plan and is taken into account when looking at the reductions to other departments. While it is challenging to increase costs in a one department at the expense of others, the lifesaving services of the ASM, coupled with reduced re sponse times, provides an overall benefit to the entire community. The ASM meets a critical public safety need given the overall growth of the community and increased number of calls for service.  Reorganizations to Achieve Efficiency Staff is proposing as part of this recovery plan a series of reorganizations, culminating in the elimination or extreme conversion of a few departments. These are discussed later in the department reductions section of this staff report. In summary, staff has already presented to Council the first component of the reorganization which is the elimination of the Deputy City Administrator position which will be replaced by a less costly Economic Development Manager position who will report directly to the City Administrator. Other changes include: 1. Department Consolidations Staff proposes to remove Human Resources and Information Technology from department standing and consolidates them as sections of a combined Administrative Services Department. Additionally, Fleet and Facilities sections will also be part of the Administrative Services Department given their primary internal service focus. 2. Recreation Division – New Approach General Fund support for Recreation services will be reduced to a level that sustains funding for those programs serving Gilroy’s vulnerable populations (at-risk youth, seniors, and those with physical and mental disabilities). Coordination of city-wide volunteers and park/facility rentals will also remain given the service enhancements and/or revenues provided. Additional recreation programs may be re-established in the future if the program can truly pay for itself. Recreation changes are discussed in more detail below.  Contract Savings Staff has identified significant savings from the use of contractors to ens ure that where City employees can provide the same services City employees will be used. Contract services that are highly specialized or of limited in the amount of use (i.e. historical buildings consultant), will need to remain available to the City 9.A Packet Pg. 309 as needed. The use of contractual services will be carefully evaluated in light of the budget constraints.  Reversible Staff has constructed the proposed Financial Recovery Plan to, as much as possible, allow for the reductions to be reversible should economic conditions improve. Staff is proposing that positions should be frozen, and the funding for those positions be un-appropriated. However, staff is requesting that the positions remain on the authorized positions list as frozen. Should the financial outlook of the City improve, staff will return to Council as funding is identified and sustainable to obtain approval to reinstate the position(s) needed.  One-time Capital Improvement Projects City staff will be bringing to Council the updated Capital Improvement Plan sometime in late June or early July. As part of this Financial Recovery Plan, staff is not advancing any projects that draw on the City’s General Fund. Most projects in the CIP plan involve water and sewer projects as well as streets. The few projects that were identified for the General Fund and assigned fund balance are being rolled back or postponed to help offset the fiscal impact from COVID -19. The exception to this approach is the $1.5 million project for the downtown parking lot which Council identified as a priority for completion at the May 18, 2020 Council meeting. All other capital improvement projects that would be funded from the General Fund will be presented to Council in future years as funding becomes available.  Fleet/Vehicles Currently, Fleet purchases are being funded through the use of the Fleet Fund balances. There are no General Fund vehicle purchases remaining to be spent this fiscal year. Future vehicle purchases for FY21 will be water, sewer, and SCRWA funded vehicles, and a replacement fire engine with funding already allocated. As the City prepares to begin the budgeting process for FY22, the plan for replacement vehicles will be reviewed and adjustments made as needed to ensure fiscal sustainability, while accounting for vehicle user safety.  Pay Freeze and Furloughs The Financial Recovery Plan operates under an assumption that $4 million will be derived from labor cost savings, generally in the form of a pay freeze for two years (includes negotiated salary increases and merit step increases), furloughs (pay reduction in exchange for time off), and other benefit reductions. However, should the concessions and labor cost reductions not be successfully obtained from each bargaining group, additional cost reduction measures will be required which may include additional position reductions, additional furloughs, or other means that may be available at the City's disposal to close the financial gap. If the pay freeze and furloughs anticipated in this plan are not obtained as part of implementation, staff will return to Council with a second round of reductions to 9.A Packet Pg. 310 fill the remaining portion of the $8 million in reductions that are needed to bring the City into a sustainable financial structure. Risks Inherently, with any plan as complex and involving third parties and negotiated resolutions, there are some risks present in these approaches. Staff does not presume to know of all potential risks, but has identified a few below.  Labor Cost Savings The reliance on labor savings is an essential element that is needed in order to help reduce the impacts on services provided to residents, and in keeping with the philosophies that were described earlier. Should one or more of the bargaining groups determine that they are not willing to implement a pay freeze over the next two years, this would present a risk to the plan. Should this risk become a reality, further modifications will be needed to identify additional reductions in staff and/or services to reach the target amount needed to eliminate the structural deficit.  California Public Employee’s Retirement System (PERS) increases PERS’ funding structure assumes a rate of return on investments to fund the benefit plans of member agencies, like the City of Gilroy. Those assumed rates of return are used to determine the amount that each agency will be paying into PERS for the benefits that are provided. Due to the COVID-19 pandemic, there were likely losses experienced by the PERS investment portfolio. It is also possible that PERS will eventually lower their assumed rate of return, also called the discount rate, which would drive up the City's PERS annual payments. Such an increase would jeopardize the City’s financial position and increase the structural deficit. Should this occur, staff would then revise the Financial Recovery Plan to make sufficient reductions in the City’s costs to offset the increases related to PERS.  Additional Loss of Revenue (COVID-19 or other causation) As included in previous reports, there is the potential for a resurgence of COVID- 19. At this time, it is unknown if there will be a resurgence in the fall of 2020, however it is a risk that if such a resurgence occurs additional shelter in place orders may likely be instituted. This would greatly impact revenues and furthe r reduce them below what was projected during this incident of the pandemic. This presents a risk, as there is not a great level of capacity in the Financial Recovery Plan to recover additional uses of reserves in future years. In order to replenish the reserves if used more heavily than projected, additional cuts may be required in order to bring the reserves back up to established policy levels. Follow -up As part of the Financial Recovery Plan staff is proposing to come before Council quarterly for updates and follow-up regarding how the Financial Recovery Plan 9.A Packet Pg. 311 implementation is performing. As part of these updates, staff will be reporting on how far into implementation the City has progressed, what the level of savings have been, and if the conditions of the plan are being met. If components of the plan are not able to be obtained (primarily those requiring negotiation), or further revenue shortages are experienced, staff will seek Council direction regarding additional cost reductions, or other approaches to reach the goal of financial sustainability. Additionally, any changes that require approval of Council will be presented in these quarterly updates. PROPOSED DEPARTMENT REDUCTIONS Administration The City Administrator’s Office (CAO) is proposing reductions in the Administration Department, including:  Converting the Deputy City Administrator into an Economic Development Manager (recently approved by Council). Service impact: removal of succession planning benefit, but conversely allows more focus on economic development.  Freeze and defund the Office Assistant I/II position. Service Impact: less front counter coverage and general city phone line answering. Other department positions will provide coverage, which may impact their production.  Freeze and defund the confidential Management Assistant position Service Impact: City Administrator will provide his own administrative support to include scheduling and will rely on support from other staff in Administration and Administrative Services when needed.  Sharing of the Senior Management Analyst with the Public Works Department Service Impact: less analytical support capacity for City Administrator’s Office; however, there is a greater need for analytical support in the Public Works Department at this time. There are two additions to the CAO. However, although these show in the CAO section as cost additions, these all come from cost reductions in other departments from the General Fund. All that is changing is the supervision and how they fit into the overall organizational structure. These “additions” include:  Full-Time Program Administrator Service Impact: position will be housed in the CAO budget, but will only have a portion of the costs within this budget. The position will be leading and administering the South County Youth Task Force, Housing and Community 9.A Packet Pg. 312 Development Block Grant/Housing Trust Fund operations, as well as serving as a community liaison for homelessness issues, GUSD, and other community organizations. Reductions in other departments, as o utlined in the descriptions below, form the establishment of this position.  Part-time Emergency Management Coordinator Service Impact: increased attention and focus on EOC coordination and training to support the EOC functions; frees a sworn Fire Captain position to return to front line service in the community on the ASM, saving general funds. Total reductions for the CAO are $312,700 annually. Figure 1 – Proposed Administration General Fund Reductions Reduction Ongoing Amount Position Level Functional Priority Part Time Emergency Management Coordinator 57,330$ Part-time Fundamental Convert Deputy City Administrator to Econ. Dev. Mgr. (100,000)$ Management - Unrep Support Reallocation of Sr. Mgmt. Analyst to PW Support (75,600)$ Management - Unrep Support Management Assistant - Confidential (121,100)$ Non-Exempt - Unrep Support Program Administrator Addition 25,000$ GMA Support Office Assistant II (98,300)$ AFSCME Support Total Increase/ (Reduction)(312,670)$ Human Resources The Human Resources Department (HR) is proposing to eliminate the following position:  Freeze and defund Human Resources Analyst Service Impact: Recruitment activity will be greatly reduced due to staffing reductions; some impact to operational capacity and response to other human resources related requests/project. A total reduction of $121,000 annually. Figure 2 – Proposed HR General Fund Reductions Reduction Ongoing Amount Position Level Functional Priority Human Resources Analyst (121,000)$ Management - Unrep Support Total Increase/ (Reduction)(121,000)$ 9.A Packet Pg. 313 City Department Reorganization (HR, IT, Fleet and Facilities) An additional change proposed in the centralized services of the City’s administration is to consolidate two departments (Human Resources/Risk Management (HR/RM) and Information Technology (IT)) into a single department and bring in two sections from the Public Works Department (Fleet and Facilities) into the newly formed Administra tive Services Department. As a result of this change, the following reductions are proposed:  Reclassify IT Director to IT Manager Service Impacts: cost savings for the reclassified position; IT initiatives would be funneled through an additional layer of oversight. A savings of $43,400 annually. Figure 3 – Proposed City Department Reorganization General Fund Reductions Reduction Ongoing Amount Department Position Level Functional Priority IT Director to IT Manager (43,400)$ IT Management- Unrep Support (43,400)$ Finance Finance is proposing to eliminate two management level positions. These positions were identified as two with duties that have reduced direct impact on customer service compared to other positions, but can also have their duties redistributed to other staff members in the department with the least amount of additional technical training than other managers within the department that are not customer service positions. These positions include some of the higher compensated positions in the department, with half the cost borne by the General Fund. These positions are:  Freeze and defund Finance Manager – Budget Service Impact: This is one of the two Finance Manager positions. While the workload is large that will be spread from this position, it can be learned by other staff, and can be dispersed into smaller components, making it easier to dissolve across multiple positions. Negative impacts include a general, moderate decrease in speed of internal responsiveness as it relates to budget processes, purchasing, and financial analysis. May impact customer problem resolution speed. Should funding be identified at a later date, this position would be a high priority to fund and fill.  Freeze and defund Revenue Officer Service Impact: Decreases speed in completing revenue processes, revenue analysis, and other support functions. As with the Finance Manager elimination noted above, essential duties/tasks will be dispersed in smaller components to other staff within the department. 9.A Packet Pg. 314 Total cost savings of $154,000 annually. Figure 4 – Proposed Finance Department General Fund Reductions Reduction Ongoing Amount Department Position Level Functional Priority Finance Manager - Budget (100,000)$ Finance Management - Unrep Support Revenue Officer (54,000)$ Finance Management - GMA Support Total Increase/ (Reduction)(154,000)$ Public Works The Public Works Department is proposing to reduce five positions and reduce the City’s landscaping contract. Additionally, the proposal for Public Works entails the reallocation of an Engineer to serve in support of utility (water and sewer) capital projects. Additional support to the utilities sections include partial positions as described below. The Water and Sewer utilities have more robust fund balances ($20.8 million and $17.5 million, respectively) that have built up over years to support the proposed work. Below are the proposed changes:  Freeze and defund Maintenance Worker I/II position in Parks Service Impact: Reduced labor hours in parks maintenance; one current Maintenance Worker in Parks will transfer into a vacant Maintenance Worker position the Water section to complete needed assignments in this utility section.  Freeze and defund Maintenance Worker I/II position in Streets Service Impact: reduced labor hours in streets and tree maintenance; one current Maintenance Worker in Streets will transfer into a vacant Maintenance Worker position in the Water section to complete needed assignments in this utility section.  Eliminate Limited Term Engineer I/II position Service Impact: Position was limited term, while there will be less engineering support, the position was planned to only be working for up to a three-year duration. Currently, this position is vacant.  Freeze and defund Engineering Tech/Inspector I/II position Service Impact: The work of this position will be spread to the other Inspector I/II position and engineers in the Department. This will cause minimal to moderate time extensions to complete permit applications, plan reviews, and inspections as a result of fewer inspectors available to share the workload. Currently, this position is vacant.  Freeze and defund Deputy Public Works Director 9.A Packet Pg. 315 Service Impact: Staff is proposing that the three Operation Services Supervisors (section supervisors) that reported to the Deputy Director now report to the Public Works Director. Fleet and Facilities sections will be the exception, as they will be reorganized to the new Administrative Services Department. As of June 5, 2020, the Deputy Director position will be vacant.  Repurpose Engineer I/II land development position to support utilities CIP Service Impact: Reduced engineer labor hours to support land development projects. Work will be spread to the Senior Engineer and the remaining engineer in the section, which may increase wait times for engineering work to be completed. Engineer will be moved into the Engineering CIP section to help design and manage several transportation and utility projects.  Reduce mowing frequency in landscaping contract Service Impact: grass in public properties and rights-of-way will become taller generally, as the time between mowing will now increase to two weeks between each service date. Immediate needs can be addressed by City staff.  Public Works will gain some needed administrative support through the sharing of two positions across departments. The Senior Management Analyst in the City Administrator’s Office will be shared with Public Works (45%) to assist with complex utilities analysis and reports and the Management Assistant for Community Development will also be shared with Public Works (45%) to provide administrative support for Public Works Engineering and Administration. Overall, Public Works will be reducing General Fund expenditures by $1,053,000. Figure 5 – Proposed Public Works Department General Fund Reductions Reduction Ongoing Amount Department Position Level Functional Priority Freeze MW I/II Position in Parks (Move to Water)(153,920)$ Public Works AFSCME Support Freeze MW I/II Position in Streets (Move toWater)(153,920)$ Public Works AFSCME Support Eliminate Limited Term Engineer I/II position (195,520)$ Public Works AFSCME Support Freeze Eng Tech/Inspector I/II position (153,920)$ Public Works AFSCME Support Freeze Deputy PW Director (49,200)$ Public Works GMA Support Repurpose Engineer I/II in Land Development to Utilities (178,880)$ Public Works AFSCME Support Reduce landscaping - mowing every other week (168,000)$ Public Works Contractor Support Total Increase/ (Reduction)(1,053,360)$ Community Development The Community Development Department (CDD) is focusing on reductions at the middle and upper management levels and administrative support staff, as well as 9.A Packet Pg. 316 reorganizing front counter staff support to help maintain and enhance customer service related to permit processing. Overall, the CDD is reducing 5 positions, sharing two positions with other functional areas, reducing a large contract and reorganizing the Fire Prevention and Hazardous Materials Section. Below is a listing of the proposed cost reductions:  Fire Prevention and Hazardous Materials Section Reorganization This is a multi-faceted reorganization, resulting in a General Fund cost reduction of $43,000. The changes include: o Vacant Fire Marshal position converts to a Fire Prevention Inspector I/II position o Deputy Fire Marshal now supervises Hazardous Materials and Fire Prevention Inspectors o Three Hazardous Materials Inspector positions will balance their inspection activities better against pre-treatment and other hazardous materials concerns Service Impact: Minimal to no impact anticipated. Overall number of staff remains the same. Increased number of inspectors, which will retain inspection service capacity and service to the community. Management support may be needed for work associated with the Fire Marshal role and may be provided by the Building Official or Community Development Director.  Freeze and defund two Office Assistant I/II positions Service Impact: automate inspection scheduling; reduced in -person answering of the main CDD phone line; other duties reassigned to Management Assistant, Permit Technician, and Building Inspector positions.  Freeze and defund a Building Inspector I/II position Service Impact: This reduction would lessen the number of inspectors to conduct building inspections. Inspection wait times may increase moderately, depending upon the level of activity, complexity of building inspections, and efficiency gains in the use of the new Land Management System (scheduled to go -live late summer 2021).  Reduce Consultant Contract (CSG/4-LEAF) Service Impact: Reduced front counter staffing and services; over-the-counter service and minor permit processing times may be extended to complete reviews and other work completed by consultant. Some duties reassigned to Permit Technician and Building Inspector positions.  Share Management Assistant with Public Work’s Utilities need 9.A Packet Pg. 317 Service Impact: Administrative support will be diminished proportionately with the loss of time. Administrative support will be increased for Public Works.  Eliminate the Planner I/II position Service Impact: An increase in to project processing time, and completion of City- driven workload. Other planning staff will carry the workload from this eliminated position.  Create a GIS Coordinator position to maintain the City’s GIS system Service Impact: Offset by the savings from the Planner I/I I position, this addition will create efficiencies expected in data availability for deployment of the Land Management System, and support GIS in Public Works Operations section as well. Costs shared between General Fund, Water and Sewer Enterprise funds.  Freeze and defund the Deputy Director of Community Development position Service Impact: reduced housing and CDBG services, reduced project management. Housing and CDBG services will be transferred to the Program Administrator in the CAO in Administration. Housing Trust Fund and CDBG Funding will go with the management of these services. Not a General Fund impact. Management of Fire Prevention and Hazardous Materials and Code Enforcement sections will be reassigned.  Freeze and defund the Planning Manager position Service Impact: Reduction in long-term planning capacity, as well as short-term planning review time. Short-term planning review offset with Customer Service Manager. Increased time for special planning projects such as the Downtown Specific Plan update. Other planning duties will be spread across remaining planning staff.  Add a Customer Service Manager position Service Impact: offset from savings in the Deputy Community Development Director and Planning Manager positions; enhanced customer service fo r permit processing, application review, and continued process improvement; aids in completing the objectives in improving the Community Development Department with customer service and implementing development service center concepts. Position will ensure Land Management System is set-up and implemented to enhance customer service and 24/7 self -service features. Overall Community Development Department reductions total $822,000. Figure 6 – Proposed Community Development Department Reductions 9.A Packet Pg. 318 Reduction Ongoing Amount Department Position Level Functional Priority Fire Prevention/HazMat Reorg (43,000)$ Community Development N/A Support Office Assistant I/II (80,696)$ Community Development AFSCME Support Office Assistant I/II (89,138)$ Community Development AFSCME Support Building Inspector I/II/III (141,400)$ Community Development AFSCME Support Reduce CSG/4-LEAF (100,000)$ Community Development Contractor Support Management Assistant - PW Help (60,000)$ Community Development AFSCME Support Eliminate a Planner I/II Position (153,000)$ Community Development AFSCME Support Add GIS Coordinator 63,000$ Community Development AFSCME Support Eliminate Deputy Director (220,000)$ Community Development GMA Support Add Customer Service Manager 217,400$ Community Development AFSCME Support Eliminate Planning Manager (215,000)$ Community Development GMA Support Total Increase/ (Reduction)(821,834)$ Fire Fire is recommended to decrease administrative personnel, but bolster operational positions to maintain Alternative Service Model (ASM) staffing while reducing overtime. The increases are to offset overtime and implement improved response times on an ongoing basis with the continuance of the ASM in the Glen Loma service area for twelve hours each day. The ASM is proposed to continue beyond the first year pilot program that started in FY20. The construction of the Glen Loma Fire Station has conditions that must be met before construction can be compelled by the City upon the developer. At this time these conditions have not been met, and construction will be delayed for what could be a significant amount of time. In the intervening period, staff is proposing to convert the Technical Environmental Education Center (TEEC) building at Christmas Hill Park into a temporary fire station to provide services in the Glen Loma area, as well as the rest of the City as needed. The investment to improve the building to serve this purpose is minimal compared to a new site, and will be less disruptive than a location within an existing neighborhood. The ASM will be operated out of this facility. The below additions and reductions to the Fire Department are proposed:  Freeze and defund Management Assistant position Service Impact: additional workload will be transferred to the Management Analyst.  Continue current ASM staffing without overtime by increasing one Fire Captain and two Firefighter (Licensed Paramedic) positions, and conver ting the Administrative Captain position to front line service. Service Impact: Increased General Fund cost, but would maintain the ASM service in a sustainable form. Administrative Captain’s role in EOC coordination would be alleviated by the part-time emergency services coordinator position in 9.A Packet Pg. 319 the CAO department, which grants net savings over the hiring of an additional Fire Captain position. Overall, the Fire Department is anticipated to increase in cost by $698,700. Figure 7 – Proposed Fire Department Changes Reduction Ongoing Amount Department Position Level Functional Priority Fire - Alternative Service Model Addition 808,000$ Fire IAFF Fundamental Fire - Management Assistant (109,321)$ Fire AFSCME Support Total Increase/ (Reduction)698,679$ Police The Gilroy Police Department is focusing its reductions in positions that, due to the increase in turnover, have been vacant during the past year. These positions are less of a priority than mandated patrol and investigative services. Below are the proposed reductions from the Police Department:  Freeze and defund two Quality of Life Police Officer positions Service Impact: Homelessness and quality of life issues will continue to be provided through weekly overtime assignments. Service levels in this area would not be improved by adding a full-time dedicated team of two officers.  Freeze and defund a Community Services Officer position Service Impact: Will result in a roughly 25% reduction in CSO related activities which includes graffiti abatement, animal control, parking enforcement and cold report taking. One CSO is currently attending the Police Academy, and, if successful, will fill a vacant Police Officer position thereby vacating a CSO position.  Freeze and defund a Traffic Police Officer position Service Impact: Will result in a roughly 25% reduction in directed traffic enforcement to include our Safe Routes to School program activities.  Freeze and defund Police Part-time staffing Part-time support staff will be unavailable, increasing some of the workload on remaining regular positions. Reductions include: o PT Property Evidence Technician – result in property and evidence functions being cut back to immediate, high-priority functions. Property and evidence purging and destruction will largely stop, increasing the 9.A Packet Pg. 320 amount of stored materials. Eventually storage area will run out and we will need to hire staff to complete this purging and destruction function. o PT Office Assistant in Police Administration – Critical tasks will be absorbed by the two full-time clerical staff. Some workload can be accomplished by using other department employees who are on limited work capacities due to medical/injury issues. However, this is not reliable and consistent. o PT Office Assistant in Traffic – Clerical work to include grant management and reporting activities will be absorbed by the full-time sworn Traffic Unit staff. This will further reduce traffic enforcement capacity. Also coordinates all activities related to the Community Academy which would be abs orbed by other full-time department staff. Some tasks may take more time to complete. The Police Department is proposing to reduce costs by $961,000. Figure 8 – Proposed Police Department Reductions Reduction Ongoing Amount Department Position Level Functional Priority 2 Quality of Life Officers (370,000)$ Police POA Support Community Services Officer (104,000)$ Police AFSCME Support Part Time (Police)(270,000)$ Police Part-time Support Traffic Officer (217,000)$ Police POA Support Total Increase/ (Reduction)(961,000)$ Recreation Staff’s recommendation regarding the Recreation Department (which would be converted to the Recreation Division) is different in approach than the other departments. The Recreation Department (Division) is serviced by the General Fund through a transfer to the Recreation Fund to pay for services. The City has budgeted in FY21 for $2.7 million to be transferred. Staff is proposing that only $1.5 million be transferred in FY21, a reduction of $1.2 million. This is a significant reduction to the Recreation Department (Division) and represents a fundamental shift pertaining to how and what services the Recreation Department (Division) will deliver to residents. As part of the Citywide reorganization, the Recreation Division would be located under the City Administrator’s Office. As mentioned previously in this staff report, a new approach for the Recreation Department is centered on two core principles: 1. Protect Vulnerable Populations, similar to the philosophy of the City as a whole in this reduction process; and, 9.A Packet Pg. 321 2. All other services are to be 100% cost recovery to be restored. In order to bring Recreation to this approach, and to accommodate the reduced budget, staff is proposing severe reductions to both the staff and programs that the Recreation Department (Division) will provide initially and going forward in the new fiscal year. Below is a list of those positions and programs that are being recommended for freezing and defunding:  Positions being frozen and defunded: o Recreation Director o Two Recreation Supervisors o Two Recreation Coordinators o One Recreation Specialist o One Management Assistant o One Office Assistant  Programs being frozen (until a suitable cost-recovery strategy is identified): o Aquatics o Adult Sports o Cultural Arts o Early Childhood Recreation o Gilroy Museum o Progressive Classes and Sports o Solorsano After School o Summer Day Camp o Special Events However, in keeping services to residents that fall under vulnerable populations, and recreation programs that can evidence 100% cost recovery with no General Fund contributions, below are those positions and programs that are remaining, and are to be funded with the General Fund allocation of $1.5 million:  Positions remaining: o Recreation Manager o Management Analyst o Community Coordinator 9.A Packet Pg. 322 o Two Recreation Coordinators o Small team of part-time, grant funded positions (no General Fund cost)  Programs remaining: o Adaptive/Special Needs o Senior Center o Youth Center o Park and Facility Reservations o Contract Classes (if 100% cost recovery) o Volunteer Program These changes amount to a reduction of 8 full-time positions out of 13 total. As a result, Recreation will be providing limited services to meet the needs of vulnerable populations. As the department (division) identifies other recreation programs that can be delivered without the use of any General Fund contribution, i.e. programs which recover 100% of its costs, staff can request for the reinstatement of such programs with approval of the City Administrator. Overall, this new approach will reduce the General Fund costs for the Recreation Department (Division) by $1.2 million Figure 9 – Proposed Recreation Department Reductions Reduction Ongoing Amount Department Position Level Functional Priority Recreation Reduction from $2.7M to $1.5M (1,200,000)$ Recreation Mixed Discretionary Total Increase/ (Reduction)(1,200,000)$ Cross-Departmental There are four recommendations for budget reductions and recognition of costs that cross departmental lines. These are described more fully below:  Unemployment, Contra Personnel Costs, and Economic Stability Reserve Replenishment With the adjustments that are being made in the various departments, and the response to the COVID-19 pandemic, there are three types of cost adjustments that are associated with these activities that must be accounted for in this Financial Recovery Plan. These are: 1. As employees are laid off, the City incurs a liability for the payment of unemployment insurance benefits for those employees. These costs may be continued for up to eighteen months, if not extended further due to recession. 9.A Packet Pg. 323 2. The Contra Personnel Costs included in the budget and forecast that account for vacancy savings must be reduced, as there are not as many positions that might be having a vacancy within the next fiscal year 3. The replenishment of the Economic Stability Reserve (ESR) for any amount that is used will be required over the next three years. There must be enough surplus revenue to restore the ESR to its policy level. Staff is proposing $700,000 annually in costs to account for these adju stments. Should revenues not be sufficient over expenditures in a particular year, this amount may be decreased.  Non-Police Part-Time Reductions The City has furloughed nearly all part-time employees throughout the City beginning May 1, 2020. The Police Department’s cost reductions include their part time staff. However, the remaining part-time positions for the other departments within the General Fund amount to $750,000, which are savings as these positions are proposed to be frozen and defunded. Service Impact: These part-time positions often assist in the administrative functions for the various departments. With their elimination, this workload will pass to full-time employees, which increase their workload and may increase the time for performance of routine and administrative activity.  Two Year Pay Freeze Staff is recommending to negotiate with bargaining groups to obtain a two -year pay freeze, which would include negotiated salary increases for FY21 and FY22, as well as merit/step pay increases for the same time period. Of the options provided, this one greatly depends on bargaining groups to partner with the City to achieve savings. Should the bargaining groups not agree to the pay freeze, additional position reductions, additional furloughs or additional cuts will become needed to close any remaining structural deficit. Staff is projecting that by freezing pay for two years, approximately $2 million of the deficit will be reduced annually.  Furloughs Furloughs (pay reduction in exchange for time off) are also a recommendation that staff is presenting as another component of the Financial Recovery Plan. Furloughs may not work for all bargaining groups given the nature of their work, however, other labor cost reductions will need to be substituted. An add itional $2M in labor cost reductions through the use of furloughs or other labor cost reductions are needed to close the structural deficit gap for the next two years. Furloughs have a noticeable service impact, with scheduled closures during normal working days. 9.A Packet Pg. 324 Overall, for the cross-department proposed reductions, staff is projecting $4.1 million in cost reductions from these options. Figure 10 – Proposed Cross-Department Reductions Reduction Ongoing Amount Department Position Level Functional Priority Unemployment and Contra Personnel Adjustments/ ESR Replenishment 700,000$ Multiple Multiple Support Part-time reductions (excluding Police already in PD)(750,000)$ Multiple Part-time Support Two Year Pay Freeze (Elimination of COLAs, step increases)(2,000,000)$ Multiple All Positions Fundamental Furloughs (one day, every other week)(2,000,000)$ Multiple All Positions Fundamental Total Increase/ (Reduction)(4,050,000)$ Total Amount of Proposed Reductions Below is a summary table that shows the proposed cost reductions from the tables above. Additionally, attached to this staff report is a combined listing from all the reductions provided above. The total reductions identified are valued at $8.0 million. Figure 11 – Total Proposed Reductions and Changes Reduction by Department Ongoing Amount Figure 1: Proposed CAO Reductions (312,670)$ Figure 2: Proposed HR Reductions (121,000)$ Figure 3: Proposed City Department Reorganization Reductions (43,400)$ Figure 4: Proposed Finance Department Reductions (154,000)$ Figure 5: Proposed Public Works Department Reductions (1,053,360)$ Figure 6: Proposed Community Development Department Reductions (821,834)$ Figure 7: Proposed Fire Department Changes 698,679$ Figure 8: Proposed Police Department Reductions (961,000)$ Figure 9: Proposed Recreation Department Reductions (1,200,000)$ Figure 10: Cross Department Reductions (4,050,000)$ Total Cost Reductions Proposed (8,018,585)$ 5-Year General Fund Forecast with Financial Recovery Plan Below is the 5-Year General Fund Forecast inclusive of the reductions proposed above. 9.A Packet Pg. 325 FY20 FY21 FY22 FY23 FY24 FY25 Beginning Fund Balance 21,258,870$ 17,354,504$ 18,952,365$ 18,981,111$ 19,046,153$ 19,774,612$ Add: Revenues 48,658,145$ 52,666,803$ 51,956,202$ 53,870,605$ 56,696,956$ 58,236,185$ Less: Expenditures (59,087,511)$ (51,068,942)$ (51,927,455)$ (53,805,563)$ (55,968,497)$ (57,984,622)$ Budget Solutions 6,525,000$ -$ -$ -$ -$ -$ Ending Fund Balance 17,354,504$ 18,952,365$ 18,981,111$ 19,046,153$ 19,774,612$ 20,026,174$ Operating Margin/ Use of Reserves (3,904,366)$ 1,597,861$ 28,747$ 65,042$ 728,459$ 251,563$ The reductions allow the City to attain fiscal sustainability, assuming revenue projections hold true and all proposed reductions are approved by Council, and agreement is reached with the labor bargaining groups on those proposals that are subject to negotiation. Although FY21 has a larger operating margin, the following two years are much smaller , as the revenues decrease from the delayed impact of property taxes. Expenditures continue to increase, anywhere from a total of 3.6% to 4.0% each year after FY22. Revenue increases, based on the 2009 recession, fluctuate. Revenue in FY24 increases dramatically, based on the recovery rates from 2009. This is a combination of recovering property taxes, sales taxes, transient occupancy taxes, and user fees. Increases begin to slow in FY25, while expenditures continue to increase steadily. Overall Position Impacts Overall, the Financial Recovery Plan proposes a net reduction of the City’s full-time positions by 24 positions, which includes 33 total position reductions (12 vacancies) and an addition of 9 new positions. As mentioned previously, should the other concessions not be obtained, further reductions will be needed. Below is a table that shows the reductions by bargaining group. FT Reducttions by Employee Group Current Total # in Employee Group # of Positions Reduced (-) # of Positions Added (+) Net Change in FT Positions Percentage of Net Change Staffing Level After Reductions AFSMCE 127 -18 3 -15 -11.81%112 GMA 31 -7 3 -4 -12.90%27 GPOA 70 -3 0 -3 -4.29%67 IAFF, Local 2805 35 0 3 3 8.57%38 Unrepresented (Department heads, confidential exempt; confidential non-exempt) 21 -5 0 -5 -23.81%16 Total 284 -33 9 -24 -8.45%260 12 vacant Below is a table showing the reductions by department. 9.A Packet Pg. 326 Department Current Total # in Department # of Positions Reduced (-) # of Positions Added (+) Net Change in # of Positions Percentage of Net Change Staffing Level After Reductions Administration 8 -3.45 2 -1.45 -18.13%6.55 Community Development 28 -8.45 3 -5.45 -19.46%22.55 Finance 14 -2 0 -2 -14.29%12 Fire 41 -1 3 2 4.88%43 Human Resources/Risk Management 5 -1 0 -1 -20.00%4 Information Technology 4 -1 1 0 0.00%4 Police 105 -4 0 -4 -3.81%101 Public Works 66 -5 0.9 -4.1 -6.21%61.9 Recreation 13 -8 0 -8 -61.54%5 City Wide FT Headcount 284 -33.9 9.9 -24 -8.45%260 ALTERNATIVES There are many alternatives for Council to consider or propose. However, staff spent significant time evaluating service delivery options, costs and other factors affecting the delivery of City services to residents in developing the above recommended recovery plan for Council’s consideration. A change to the recovery plan will require additional evaluation and consideration in order to develop the most effective staff recommendation possible for Council, as well as to report out potential service delivery impacts. FISCAL IMPACT/FUNDING SOURCE Approximately $8 million in General Fund savings. These savings will enable the City to remain operational within the confines of the projected revenues in future years, while keeping potential service cuts to a minimum. CONCLUSION The financial state of the city is tied intimately with the revenues it receives from its taxpaying residents, as well as taxes and fees from tourists and others coming from outside of the city. As these revenues and payments from the citizens decrease due to their economic challenges, the City should, in proportionality, reduce its costs to “live within its means” as supported by these revenues. These costs maintained, in keeping with the philosophy, should be focused on the services provided to residents, remain focused on functional priorities, such as fundamental services and those supportive services that make them efficient, and protect vulnerable populations. When the economy and resident’s financial hardships are alleviated, and economic activity increases, other services (and their costs) may be increased in the future as Council may choose to allow. 9.A Packet Pg. 327 The need to adjust services to remain sustainable, and at the same time lessen the impact on residents, is a reality that we cannot avoid. The cuts, while deep, will allow the City to continue to offer a mix of services to the City's residents while maintaining public health and safety into the future. Should Council approve the recovery plan this evening, staff will then proceed to implement the recovery plan. Implementation is expected to begin July 1, 2020, but some of the reductions will take time to effectuate as some positions and services that are being reduced will require some wind down time for effective adjustments to be made. The adjustments to reapportion the workload of reduced positions or services onto other employees will take time to better transition the work to accommodate the shifting responsibilities that they will have in carrying out the service delivery expectations of the City Council and its residents. NEXT STEPS If approved, staff will proceed to implement the recovery plan, to include discussions with labor groups. Staff also continue to update Council on the financial position of the City monthly, as well as report on the progress of the recovery plan and its results quarterly. Additionally, should any conditions or assumptions that were used to develop the recovery plan be substantially different, staff will return to Council seek further adjustments to ensure the City stays financially sustainable. Again, if concessions are not able to be negotiated with the labor bargaining groups, additional reductions, to include additional furloughs or layoffs, will be necessary. PUBLIC OUTREACH Upon Council’s adoption of the Financial Recovery Plan, staff will conduct a community engagement initiative to release this information to residents and local stakeholders to inform how such reductions may impact services, and if any changes to the City’s procedures for the public to request services. Communication will be frequent as the plan is implemented, and provide the same updates that Council receives to the public. Attachments: 1. Draft Reduction List Attachment 9.A Packet Pg. 328 DRAFT City of Gilroy - Proposed Cost Reductions DRAFT June 1, 2020 Reduction Ongoing Amount Department Position Level Functional Priority Part Time Emergency Management Coordinator 57,330$ Administration Part-time Fundamental Fire - Alternative Service Model Addition 808,000$ Fire IAFF Fundamental Elimination of COLAs for two years (2,000,000)$ Multiple All Positions Fundamental Furloughs (one day, every other week)(2,000,000)$ Multiple All Positions Fundamental Convert Deputy City Administrator to Econ. Dev. Mgr.(100,000)$ Administration Management - Unrep Support Reallocation of Sr. Mgmt. Analyst to PW Support (75,600)$ Administration Management - Unrep Support Management Assistant - Confidential (121,100)$ Administration Unrep Support Program Administrator Addition 25,000$ Administration Management - Unrep Support Office Assistant II (98,300)$ Administration AFSCME Support Fire Prevention/HazMat Reorg (43,000)$ Community Development N/A Support Office Assistant I/II (80,696)$ Community Development AFSCME Support Office Assistant I/II (89,138)$ Community Development AFSCME Support Building Inspector I/II/III (141,400)$ Community Development AFSCME Support Reduce CSG/4-LEAF (100,000)$ Community Development Contractor Support Management Assistant - PW Help (60,000)$ Community Development AFSCME Support Eliminate Planner I/II Position (153,000)$ Community Development AFSCME Support Add GIS Coordinator 63,000$ Community Development AFSCME Support Eliminate Deputy Director (220,000)$ Community Development GMA Support Add Customer Service Manager 217,400$ Community Development AFSCME Support Eliminate Planning Manager (215,000)$ Community Development GMA Support Finance Manager - Budget (100,000)$ Finance Management - Unrep Support Revenue Officer (54,000)$ Finance Management - GMA Support Fire - Management Assistant (109,321)$ Fire AFSCME Support Human Resources Analyst (121,000)$ Human Resources Management - Unrep Support IT Director to IT Manager (43,400)$ IT Management- Unrep Support Unemployment and Contra Personnel Adjustments/ESR Replenish 700,000$ Multiple Multiple Support Part-time reductions (excluding Police already in PD)(750,000)$ Multiple Part-time Support 2 Quality of Life Officers (370,000)$ Police POA Support Community Services Officer (104,000)$ Police AFSCME Support Part Time (Police)(270,000)$ Police Part-time Support Traffic Officer (217,000)$ Police POA Support Freeze MW 1 position in Parks (move to work in Water/Sewer)(153,920)$ Public Works AFSCME Support Freeze MW 1 Position in Streets (Move to work in Water)(153,920)$ Public Works AFSCME Support Eliminate Limited Term Engineer I/II position (195,520)$ Public Works AFSCME Support Freeze Eng Tech/Inspector I position (153,920)$ Public Works AFSCME Support Freeze Deputy PW Director (49,200)$ Public Works GMA Support Repurpose Eng I position in Land Development to Utilities (178,880)$ Public Works AFSCME Support Reduce landscaping - mowing every other week (168,000)$ Public Works Contractor Support Recreation Reduction from $2.7M to $1.5M (1,200,000)$ Recreation Mixed Discretionary Total Increase/ (Reduction)(8,018,585)$ 9.A.a Packet Pg. 329 Attachment: Draft Reduction List Attachment (2849 : Recovery Plan Implementation) City of Gilroy STAFF REPORT Agenda Item Title: Approve Recommendations for Coronavirus Aid, Relief, and Economic Security (CARES) Act Funding for Small Business COVID-19 Relief Program Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Sue O'Strander Strategic Plan Goals ☐ Fiscal Stability  Downtown Revitalization  Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve Gilroy’s Small Business COVID-19 Relief Program for Small Business Assistance, and authorize the City Administrator to enter into an agreement with a selected program administrator. EXECUTIVE SUMMARY As a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Gilroy received $275,486 in additional Community Development Block Grant (CDBG) programing. With unassigned and unspent CDBG funds, this amount was leveraged to $619,715. On May 4, 2020, the City Council directed $150,000 for rent relief efforts and the remaining $469,715 for small business assistance /relief. 9.B Packet Pg. 330 The Small Business COVID-19 Relief Program will provide a one-time emergency grant of $5,000 or $10,000 to small businesses to hire, maintain, or re -hire employees who are earning 80% of the area median income (AMI) or below. The grant is not intended as a long-term solution, but can help to fill gaps or bridge delays from other sources of revenues (e.g. Paycheck Protection Program and Economic Injury Disaster Loans). Several agencies around the Bay Area have set up programs to distribute CDBG-CV funds to support small businesses. This agenda report presents the various program aspects and seeks Council approval on a recommended program. BACKGROUND At a publicly noticed meeting on May 4, 2020, the City Council approved allocation of $469,715 in CARES Act funding to provide support to small businesses affected by the COVID-19 pandemic. The City received the federal CARES Act funding as additional Community Development Block Grant (CDBG) programming for FY 2019-2020. Council members discussed some preliminary expectations for the program, including availability of monetary assistance to support more businesses, the importance of a valid City business license, possible interest in a forgivable loan, and the intention for the funds to result in economic development benefits to the overall Gilroy community. Survey of Nearby Agencies With these expectations in mind, staff researched other Bay Area agencies and potential nonprofit partners to determine program parameters for Gilroy. A survey of nearby agencies indicates that most agencies are considering or providing grant funding typically with amounts of $5,000 and $10,000. Several cities are also setting up opportunities to provide small business relief, although most are using General Fund and/or private sector donations for monetary assistance. Currently, the only other agency in Santa Clara County that has committed to utilizing CDBG funds for this purpose is Cupertino. Fremont and South San Francisco are some other nearby agencies utilizing CDBG funds for small business grants and loans. The table below presents a sampling of several small business relief programs around the Bay Area. These programs are in various stages of launch, and some possible programming considerations are summarized below: CITY Cupertino Fremont South SF Hayward Sunnyvale Mountain View FUND TOTAL** $229,017 $400,000 $650,000 $380,000 $1.3 million $1 million FUND SOURCE CDBG CDBG CDBG General Fund General Fund & private sector donations General Fund & Los Altos Community Foundation ADMINISTATOR SVSBDC City Dept City Dept City Dept SVSBDC Main 9.B Packet Pg. 331 CITY Cupertino Fremont South SF Hayward Sunnyvale Mountain View Enterprise Foundation (ED & City Manager) (ED & CD) (ED) Enterprise Foundation Street Launch LOAN OR GRANT Grant $5,000 Grants $5,000 (2-10 employees) and $10,000 (11-50 emp) Loans $10,000 (to retain 1 low- inc emp) or $15,000 (retain 2) Grant $5,000 (biz w/25 or less emp or restaurant w/any # emp) Grants $5,000 (1-5 emp), $10,000 (6- 30 emp) & $15,000 (31-50 emp or 100 for restaurants) Loans up to $10,000 with 0% int and no fees for 3 year term APPLICATION PROCESS TBD Point system Lottery First-Come Lottery First-Come LAUNCH DATE (not yet) 5/18/20 5/8/20 (1st round of 3) 5/11/20 5/27/20 4/29/20 ** Program administration costs, which vary amongst agencies, are typically included in this amount. Programming parameters are described more thoroughly in the Analysis section, below. Of note, there are some valuable “lessons learned” from agencies that have had early launches and are now administering their respective programs. Various considerations relating to the small business relief funding are described – including Grants versus Loans, application process options, application eligibility, award amounts, and qualifying criteria. ANALYSIS Service Administration Options Some agencies have opted to administer the small business assistance program in - house. Typically, staff from Economic Development and/or City Manager’s office serves as the project lead. Unfortunately, Gilroy does not have such dedicated staffing and would not be able to conduct the work efficiently without additional assistance. A number of potential program service providers have expressed interest and availability to assist with administration of Gilroy’s Small Business COVID-19 Relief Program. The Silicon Valley Small Business Development Center (SBDC), Main Street Launch (MSL), and the National Development Council (NDC) were responsive to staff inquiries and discussions. Each of these nonprofit organizations is dedicated to supporting small businesses, stimulating economic growth in low-to moderate income communities, and have local experience providing such services. SBDC currently provides training and mentoring services to small businesses and entrepreneurs throughout Santa Clara County, including Gilroy. Through their Enterprise Foundation, they have recently initiated a small business program with 9.B Packet Pg. 332 Sunnyvale and are working on an agreement with Cupertino to administer a grant program using CDBG funds. MSL has a contract with Mountain View to underwrite and administer small business resiliency loans (although these do not utilize CDBG funding). NDC administers ongoing small business lending programs for the cities of Morgan Hill and Santa Cruz. Preliminary discussions indicate that the program administration fee varies, and is dependent on the level of service anticipated/offered. Generally, the range is from 5 to 15%. As the program is about $470,000, the administration fee would reduce the funding for small business assistance by $23,500 - $70,500, resulting in about $399,500 - $446,500 for disbursement to small businesses. Depending on program parameters, this amount could provide monetary assistance to approximately 55 - 70 businesses. At the time of the writing of this agenda report, staff requested of the potential service providers additional details including requested fees/costs and timing for Gilroy’s small business grant program. These details will be presented at the Council meeting. It should be noted that the contract amount of $23,500 to $70,500 is within the Interim City Administrator’s approval authority and does not need Council approval. Grant versus Loan The objective of small business relief funding is to address the current community need resulting from the COVID-19 outbreak. The funding is not intended as a long-term solution, but can help to fill gaps or bridge delays from other sources of revenues (e.g. Paycheck Protection Program and Economic Injury Disaster Loans). As such, staff recommends distribution of the CDBG-CV funds in the form of a grant to small businesses to hire, maintain, or re-hire employees who are earning 80% of the area median income (AMI) or below. Discussions with other agencies and potential service providers indicate there are benefits and concerns with both grant and loan options. One concern with the grant option is that this may be treated like free money as there is no promise or requirements once the funding is dispersed. However, a grant requires minimal reporting and tracking, resulting in faster dispersion of funds. A forgivable loan provides additional assurance of a business’ intentions and can be arranged so that the criteria or conditions for forgiveness are not overly burdensome. As with any loan, this would involve extra effort relating to necessary underwriting. Similar to grants, the funds would result in a one-time use or otherwise be quickly depleted. Several agencies that had launched small business assistance in response to COVID - 19 offered forgivable loans, as it was thought to be a requirement of such funding. Due to the fluid situation of the funding, it is now believed that such funds can be off ered as a grant. Therefore, to streamline the process, staff recommends the funds be made available in the form of a grant. 9.B Packet Pg. 333 There may be an interest to utilize the funds to initiate a long-term revolving loan resource for Gilroy small businesses. According to one of the potential providers, several cities (e.g. Oakland, San Francisco, Stockton) are using CDBG funds for ongoing small business assistance. While intriguing, much more analysis would be needed to fully understand the ramifications for use of CDBG funds for such a program here in Gilroy. As such, use of these funds for long-term small business assistance is not recommended. Application Process According to several cities that have recently launched their applications, they recommend closing the application period within a short time frame. Usually, extensive outreach is conducted in advance to ensure all businesses have prior notice of the upcoming application period. The outreach can be conducted rapidly as news of the available funding spreads quickly. Several different approaches have been taken by nearby agencies with regard to the application process and selection of awardees. Each of the approaches considered is discussed in more detail, below: First-Come First-Serve System Due to the high volume of responses, cities utilizing a first-come first-serve approach close down the application portal within 12 to 48 hours. This approach results in a fast turnaround of funds, as the first applications submitted will be evaluated and considered for award funding. Some fairness issues have been raised with this approach, such as access to high-speed internet. Lottery System Some agencies establish an application period (typically 1 week). These dates are announced along with eligibility criteria. Applications are received during the open period, and upon verification of eligibility, the applicant will receive a lottery number. Any subsequent clarifications or documentation will need to be provided or finalized prior to finalizing an agreement. Selections are based on a lottery system. This process provides a more equitable approach (than first-come first-serve) to the application and awardee process. However, the lottery approach has also received scrutiny and allegations of behind-the-scenes favoritism. To provide more transparency, many agencies are conducting live-broadcast of the lottery selections. Point-Based System This approach includes an established application period (1 or 2 weeks). The application eligibility and evaluation criteria are both posted in advance and provide full transparency for potential awardees. While the approach is a bit more unique than other systems, the process provides up-front transparency and eliminates the randomness 9.B Packet Pg. 334 present in a lottery system. Also, there is no room for favoritism, as the applicant either does or does not meet the posted criteria. While the eligibility criteria clarifies the requirements needed to submit an application (e.g. demonstrate financial burden resulting from COVID-19), the evaluation criteria can emphasize important aspects that necessitate prioritization (e.g. those businesses not designated as essential services under the initial County Health Order). With each criteria as a possible point, this will likely result in several applicants with the same score. In this situation, higher ranking would be provided and based on the length of time a business has operated in the City (as evidenced by a valid City business license). Under a points-based system, ambiguity is removed due to increased transparency, and awardee selection can be streamlined based on certain criteria. Therefore, due to expediency and transparency, staff recommends a points-based application process for the small business assistance program. Award Funding At the May 4, 2020 meeting, staff provided Council with preliminary information on funding allocations of $15,000 or $10,000. These amounts were anticipated to support up to 41 and 57 businesses, respectively. The Council indicated an interest to limit the funding amount to $10,000, and focus relief efforts on small businesses, specifically those with up to 25 full-time equivalent employees (FTE) on payroll. With Council’s preference to provide smaller awards to more businesses, staff has provided a more in- depth evaluation of potential grant awards. As indicated previously, program administration is expected to range from $25,000 to $70,000, resulting in about $400,000 - $445,000 available for small businesses assistance. Most nearby cities are offering grants as low as $5,000, based on number of employees. It seems reasonable to include a lower tier for businesses with fewer employees. With inclusion of a $5,000 grant, Gilroy’s available funding could be stretched to support an estimated 70 businesses. Assumptions are provided below (using $445,000 funding) to illustrate potential scenarios that may result in benefits to Gilroy’s small businesses (actual distribution will depend on the administration fee and number of applications received): Maximum Grant Availability of $445,000** Scenario 1: 30% $10,000 70% $5,000 76 Total Grants: 13 grants ($10,000) 63 grants ($5,000) Anticipated Funding: $130,000 $315,000 Scenario 2: 50% $10,000 50% $5,000 67 Total Grants: 22 grants ($10,000) 45 grants ($5,000) Anticipated Funding: $220,000 $225,000 9.B Packet Pg. 335 Maximum Grant Availability of $445,000** Scenario 3: 100% $5,000 89 Total Grants: 89 grants ($5,000) Anticipated Funding: $445,000 Scenario 4: 100% $10,000 44 Total Grants: 44 grants ($10,000) Anticipated Funding: $440,000 ** Scenarios provided only to demonstrate potential ability to assist Gilroy small businesses. Depending on the number of employees, a business may apply for a $5,000 or $10,000 grant. Employee count would be calculated based on full-time equivalent (FTE) on payroll as of March 17, 2020: $5,000 for businesses with 2-10 employees $10,000 for businesses with 11-25 employees Grants may be used for inventory, equipment, or working capital (such as payroll, rent, utilities, or other operating expenses) for the subject small business location. T he funds cannot be used to for any of the following:  Refinancing debt of any kind  Investments in real or personal property  Payment of delinquent taxes, including payroll taxes and sales taxes  Changes of ownership/business acquisition RECOMMENDED PROGRAM DETAILS Based on the research and analysis conducted since early May, staff recommends the points-based approach for Gilroy’s Small Business COVID-19 Relief Program. As described above, this system includes an Application Eligibility and Evaluation Criteria, both of which are disclosed in advance for maximum transparency. Specific criteria for Gilroy’s recommended program are presented below. These items align with Council direction and also incorporate federal reporting requirements by the Department Housing and Urban Development (HUD) for the CDBG program. Qualifying Criteria Application Eligibility To initiate the process, potential awardees will submit preliminary information as part of an application intake process. The intake period will be advertised for at least a one week period. The following minimum application requirements are recommended for incorporation into Gilroy’s Small Business COVID-19 Relief Program. An applicant must:  Operate a permanent physical commercial storefront (open to the public) location within the City of Gilroy. 9.B Packet Pg. 336  Be a for-profit business in good standing (no outstanding code violations or compliance orders, etc.)  Be a business that is not otherwise prohibited or restricted in the City.  Have a valid City of Gilroy business license at the location for at least one year.  Have at least 6 months remaining on current lease.  Have between 2 and 25 FTE employees on payroll at the time of the initial Santa Clara County Shelter in Place order was issued on March 17, 2020  Generate less than $5 million in annual gross receipts.  Demonstrate that 51% employees are low-moderate income.  Demonstrate a financial burden resulting from COVID-19  For business owners with multiple businesses, they may only apply for funding assistance for one business. At the end of the application period, all submittals received dur ing this time will be evaluated to ensure they meet the eligibility requirements, as stated. Those that do not meet eligibility criteria, would not be considered further. Evaluation Criteria Applications that meet the eligibility requirements would then be ranked in accordance with stated criteria and scored accordingly. In a tie-breaker situation, priority will be given based on the length of time a business has operated in the City (as evid enced by a valid City business license). The following criteria are recommended be used to establish a ranking of eligible applications received for Gilroy’s Small Business COVID-19 Relief Program. Each criterion is worth one (1) point:  Non-Essential Designation (businesses in an industry designed as non-essential based on the County’s extended Shelter In Place Order. This includes dine -in restaurants)  Business is located within the City’s Neighborhood and Revitalization Strategy Area (business geographically located in recognized LMI census tract)  Job Creation/Preservation (business has laid off employees or will imminently)  Ownership Status (business is veteran, woman, or minority-owned)  Other Funding (business has applied for other financial assistance such as Paycheck Protection Program or SBA Economic Injury Disaster Loan) In order to expedite review and ranking of applications, staff does not envision inclusion of too many ‘points’ here. This 5-point system is intended to streamline review of applications so that selection of awardees can ensue quickly. Selection Process Once the ranking of applications is completed, businesses starting with the top ranking would be contacted to complete the award process. This is envisioned to include 9.B Packet Pg. 337 verification of information stated in the preliminary application. At this stage, additional documents may be required to complete the process. Once all necessary information is obtained, an agreement can be signed and the funding will be released to the awardee. ALTERNATIVES 1. The City Council may wish to adjust grant limits so that there is just one amount, either $5,000 or $10,000, that is offered. 2. The City Council may wish to modify or otherwise adjust recommended criteria under Application Eligibility. 3. The City Council may wish to modify or otherwise adjust recommended criteria under Evaluation Criteria. FISCAL IMPACT/FUNDING SOURCE None associated with this staff report. Subsequent administration of the program by a nonprofit partner will be covered by a fee, taken out of the CDBG-CV funding allocation. NEXT STEPS Upon City Council approval of the small business relief grant program, the City Administrator will finalize details of the program and enter into an agreement to initiate Gilroy’s Small Business COVID-19 Relief Program. 9.B Packet Pg. 338 City of Gilroy STAFF REPORT Agenda Item Title: Standing Report on Operational Impacts and City/Community Efforts Related to the COVID-19 Pandemic Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Mark Bisbee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Receive report. EXECUTIVE SUMMARY The COVID-19 pandemic continues to play a major role in influencing in how local government responds to the current health and fiscal crisis. Having timely and accurate situational awareness is paramount for elected officials to make informed decisions on how best to allocate resources for maximum effectiveness within our community. This report is the introduction to a standing Council discussion concerning the various impacts of the Covid-19 pandemic. Various presentations will be given on related topics including health/safety, the City’s finances, business and economic recovery to name a few. POLICY DISCUSSION 9.C Packet Pg. 339 Policy discussions as the result of information contained in this report may include service levels, fiscal decisions and employee relations, among others. FISCAL IMPACT/FUNDING SOURCE Fiscal impacts are directly tied to, and occur as the result of, pandemic conditions region-wide and within our community. CONCLUSION This standing report is to inform our elected leaders and to keep them updated on changes to COVID-19 conditions within the clinical and operational spheres of local government. NEXT STEPS This report will continue to be updated at all Council Meetings as long as it’s needed. PUBLIC OUTREACH Public education and outreach regarding COVID-19 is a regular and ongoing feature of our Community Engagement team. 9.C Packet Pg. 340 City of Gilroy STAFF REPORT Agenda Item Title: Adoption of a Resolution Temporarily Rescinding and Modifying Sections of the Gilroy City Code to Implement a Business Stimulus Package to Support and Assist Businesses Affected by COVID-19 Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Strategic Plan Goals  Fiscal Stability  Downtown Revitalization  Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a resolution of the City Council of the City of Gilroy to temporarily suspend enforcement of certain sections of the Gilroy City Code in an effort to support businesses and development activity and aid in the economic recovery of the City resulting from the impacts of COVID-19. EXECUTIVE SUMMARY Gilroy businesses have been hard hit by COVID-19 and the effects resulting from compliance with County and State orders which have shut-down or severely impacted operations. Although most construction activities were able to resume at the beginning of the month, the implementation of County and State requirements on operations as 10.A Packet Pg. 341 well as challenges resulting from reduced operations of supporting businesses have had a significant impact on development and the construction industry. The Community Development and Public Works Departments are offering most services, however changes to our operations as a result of compliance with County orders has resulted in modifications to our processes and methods of communication. We continue to work closely with the business and development community and sincerely appreciate the flexibility and exchange of ideas and best practices. To further support the business and development community, several temporary measures are proposed to stimulate economic activity and reduce the burden on businesses. These measures are unique in that they do not rely on outside funding sources or programs, but rather temporarily suspend enforcement of certain ordinances and regulations for businesses that meet certain criteria, as well as take advantage of existing city assets. These measures also provide a quick and efficient means of accommodating the business needs that have arisen as a result of COVID-19 and adherence to County and State orders. In most cases, the measures proposed are no cost and require only a small amount of staff time to manage. Some measures can take effect immediately, whereas others will be implemented when County restrictions are modified and allow for additional business activity such as limited sit-down dining. All measures are temporary and will end once restrictions have been lifted b y County and State orders or, in some cases, will extend for one year in anticipation of the ongoing need to support businesses and development. BACKGROUND COVID-19 continues to have devastating impacts on businesses and the construction industry. Many businesses remain closed and even those that remain open have in most cases, dramatically changed operations in response to County and State orders. Small businesses are particularly hard hit. According to a recent survey of small business owners conducted by Main Street America, nearly 80 percent of businesses responding to the survey indicated that they had already closed temporarily as a result of the crisis. Nearly two-thirds of businesses responding to the survey indicated that they would be at risk of closing permanently if business disruption continued at the current rate for up to five months, and over 30 percent indicated they would be at risk of closing permanently if business disruption continued at the current rate for up to two months. Nationwide, this could mean that nearly 7.5 million small businesses will be at risk of closing permanently over the coming five months, and 3.5 million are at risk of closure in the next two months. The construction industry lost 975,000 jobs in April, according to an Associated Builders and Contractors analysis of data released earlier this month by the U.S. Bureau of Labor Statistics. This was the largest recorded decrease in construction jobs since the government began tracking employment in 1939, despite const ruction remaining an essential industry in much of the nation through April. The construction unemployment 10.A Packet Pg. 342 rate was 16.6% in April, up 11.9 percentage points from the same time last year. Unemployment across all industries rose from 4.4% in March to 14.7% last month. Supporting Gilroy businesses and development related activities is critical not only to the local economy, but has a direct impact on the city’s financial health. As noted in previous presentation to Council on the state of the City’s budget, two significant and heavily impacted sources of revenue for the City are sales tax and user fees. To assist in the “soft landing” approach, and stimulate business and development activity, several temporary measures are proposed. These measures are spec ifically aimed at encouraging activity that will result in generating sales tax, construction and permits fees and overall economic activity. ANALYSIS Following is a summary of the proposed measures, followed by details on program criteria. Finally, a list of specific city ordinances that would be affected by these temporary measures is noted including the specific provisions that would be temporarily modified. SUMMARY OF MEASURES Measures to go into effect immediately Automatic Planning Entitlement Permit Extensions.  Automatically extends life of permits for projects considered “active” during shelter-in-place order and that are approved with expiration dates. Extension is through May 31, 2021. This applies to Tentative Maps, Architectural and Site Review and Planned Unit Developments. Expedited Review of dedicated paths of travel for vehicles and pedestrians (retail or other customer-serving commercial buildings or centers)  Administrative review & approval of plans that restrict or direct paths of travel for vehicles or pedestrians within private parking lots, such as within retail centers, for businesses that wish to make such modifications in order to implement criteria established for the operation of businesses by Santa Clara County and/or the State orders. Temporary Sign Waiver  Allows temporary banner signs and waives requirement for obtaining a permit for banner signs through May 31, 2021. Businesses must adhere to all applicable banner sign criteria related to size, type, and location, as well as standards for maintaining signs in good condition. This waiver eliminates the requirement to apply for and obtain a permit and allows continuous use of banners meeting City criteria through May 31, 2021. 10.A Packet Pg. 343  Allows portable free-standing/A-frame signs and waives requirement for obtaining a permit for portable free-standing/A-frame signs though May 31, 2021. Businesses must adhere to all applicable portable free -standing/A-frame sign criteria related to size, type, and location, as well as standards for main taining signs in good condition. This waiver eliminates the requirement to apply for and obtain a permit and allows businesses to have one additional portable free - standing/A-frame sign for the purpose of designating curb-side pickup.  Allows for addition of temporary on-site directional/informational signs on private property, such as within retail centers. These signs are limited to providing business operational information or directing pedestrians and vehicular traffic (i.e., directing to curbside pick-up; notice that masks are required for entry) and may not be used for promotions or advertisement of products. Signs must adhere to all applicable on-site directional/informational sign criteria related to size and location. Use of Parking Spaces and Parking Lots for Curbside Pickup  Allows for the temporary use of privately-owned parking lots and parking spaces for curbside restaurant, food and retail merchandise pick-up. For Downtown businesses or businesses that cannot provide customer access to privately maintained parking spaces, allows for the temporary use of city-owned non-ADA public parking spaces and city-owned parking lots for curbside restaurant, food and retail merchandise pick-up. No permit or fee will be required.  Temporary signs may be used to designate a parking space used for curbside pick-up. Increase Local Contract Preference  Temporarily increases the local contract preference per the City’s Purchasing Policy when the city is evaluating bids for supplies, equipment, and services to support local businesses. Local vendor increase would increase to 10% from the current 5% for bids of $500,000 or less. Local preference for bids over $500,000 would remain unchanged at 5%. This temporary increase would be effective through May 31, 2021. Creation of a City of Gilroy Economic Recovery Task Force The task force would include city staff as well as representatives from existing partnerships including the Chamber of Commerce, Gilroy Downtown Business Association, Visit Gilroy and local business owners.  Business Retention/Reopening: Helping businesses reopen quickly and provide general guidance and resources to successfully meet County and State requirements; sharing best practices and examples of creativity and flexibility; marketing support via existing partnerships. Creation of a business “toolbox” that 10.A Packet Pg. 344 includes predesigned forms, signs, checklists and other materials to assist businesses in compliance with applicable County or State requirements.  Business Resources - Permitting and Costs: Sharing ideas for reducing costs and obstacles to the opening and reopening of businesses; propose additional business stimulus concepts; building on and expanding the existing Chamber - City of Gilroy Alliance effort involving a number of City departments.  Community Economic Development: Creating opportunities, such as job fairs or web-based resources, to connect displaced workers to prior/new jobs and promoting resources and support for those who have lost jobs due to COVID-19 impacts.   Communications and Marketing: Coordination of messaging campaigns focused on business resilience and businesses reopening using an array of communications strategies.  Federal & State Resources: Leveraging technical assistance for local businesses and accessing loans, grants, and stimulus resources. Measures to go into effect when County Orders allow additional business activity Use of City-owned Public Properties and Right-of-Way for Business Use in the Downtown Area  Allows city-owned public properties and right-of-way, such as outdoor plazas, public sidewalks and public parking spaces, to be used temporarily for outdoor dining and limited retail display once sit-down dining and retail sales are permitted by Santa Clara County. Restaurants must obtain a permit from the Community Development Department and follow requirements and criteria established by the City of Gilroy as well as comply with all applicable County and State orders. Use of Private Parking Lots or Private Streets for Business Use  Allows temporary closure of a portion of private parking lots, driveways or streets to be used temporarily for outdoor dining once sit-down dining is permitted by Santa Clara County. Restaurant and retailers and/or retail center owners must obtain a permit from the Community Development Department and follow requirements established by the City of Gilroy as well as comply with all applicable County and State orders. Use of Public Streets for Business Use  Allows temporary closure of a portion or entire sections of city streets to be use d temporarily for outdoor dining and limited retail display, once sit-down dining and 10.A Packet Pg. 345 retail is permitted by Santa Clara County. Restaurant and retailers must obtain a Special Event Permit from the Community Development Department and follow established requirements for Special Event Permits, however, some requirements, such as submitting an application 30 days in advance, will be reduced. The closure of streets will only be considered in areas where there is demonstrated support from affected businesses and will not affect life/safety of the community. Temporary Use of City-Owned Park for Use by Fitness and Recreation Businesses  Allows for the temporary use of city-owned park and open space for fitness and recreation related businesses. Existing businesses with a current business license that rent, lease or own commercial space can conduct classes or instruction in certain city owned parks. This generally includes grass areas and trails and does not include buildings, amenities such as sport courts or playground equipment. PROGRAM CRITERIA Please note that program criteria may be modified as needed to facilitate compliance with County and State Orders or to facilitate the practical application of the temporary measures. Minor modifications may be made by the Community Development Director. Measures to go into effect immediately Expedited Review of dedicated paths of travel for vehicles and pedestrians (retail or other customer-serving commercial buildings or centers) Until termination of County or State orders, commercial centers that choose to restrict or direct paths of travel for vehicles or pedestrians within private parking lots, such as within retail centers, in order to implement criteria established for the operation of businesses by Santa Clara County and/or the State orders shall submit the following to the Community Development Department; 1. Dimensioned plan, diagram or map of the affected area indicating how space will be modified or restricted including any barriers or signs. 2. All fire lanes shall be noted and may not be restricted in any manner. 3. No permanent items shall be installed within parking lots or sidewalks without express written approval by the City. 4. Modifications shall not impede maintenance of or cause deterioration of approved landscape. 10.A Packet Pg. 346 5. Plans shall be reviewed by applicable City staff within three business days and upon determination of compliance, shall issue written approval of the plan. 6. The City is not responsible for providing barriers or signs or any other equipment and will not enforce modified paths of travel. Temporary Sign Waiver Allows certain temporary signs and waives requirements for obtaining permits related to temporary signs through May 31, 2021 subject to the following criteria;  Banner Signs. Businesses must adhere to all current temporary banner sign criteria per Section 30.37.20 (d)(6) subsections c., d., and e. of the Gilroy Municipal Code related to size, type, and location as well as standards for maintaining signs in good condition. This waiver eliminates time limitations as stated in subsections a. and b. and waives the requirement to apply for and obtain a permit for banner signs that meet these criteria.  Portable Freestanding/A-Frame Signs. Businesses must adhere to all current portable freestanding/A-frame sign criteria per Section 30.37.90 of the Gilroy Municipal Code. In addition to this criteria, businesses may have one (1) additional portable freestanding/A-frame sign for the purpose of designating curbside pick-up. The curbside portable freestanding/A-frame must be adjacent to the parking space used for curbside pick-up and must maintain an open accessible travel path of at least four (4) feet in width. This waiver eliminates the requirement to apply for and obtain a permit for portable freestanding/A-frames that meet these criteria.  Directional/Informational Signs. Allows for addition of temporary on-site directional/informational signs on private property, such as within retail centers. The signs must adhere to current criteria for on-site directional signs per Section 30.37.20 (d)(14) and may be up to four (4) square feet in area and not exceed four (4) feet in height. These signs are limited to providing business operational information or directing pedestrians and vehicular traffic (i.e., directing to curbside pick-up; notice that masks are required for entry). These directional/informational signs may not be used to advertise or promote products or services and shall not be placed on any portion of a street, sidewalk, or public right-of-way or impede line of sight. Criteria for Use of Public Parking Spaces and City-Owned Parking Lots for Curbside Pickup (Downtown) Until termination of County or State orders, City-owned non-ADA public parking spaces may be used temporarily for curbside pick-up of food from restaurants and retail goods and merchandise in accordance with applicable County and State Orders, subject to the following requirements: 10.A Packet Pg. 347 1. Businesses located in the Downtown Specific Plan area with existing storefronts desiring to use public parking spaces or public parking lot for curbside pick-up and delivery shall submit a request, with photographs, drawing or depiction of the proposed location and layout, and obtain a temporary permit from the Community Development Department. Plans shall be reviewed by City staff within three business days and upon determination of compliance, shall issue written approval of the plan. 2. A temporary sign may be placed at the curb to designate the use of public parking spaces for pick-up and delivery purposes, however the City will not enforce exclusive use of parking spaces for such purposes. 3. The City will review each request to ensure public health and safety, including pedestrian and traffic movements, equitability and the orderly conduct of business. If necessary, staff will work with businesses to find suitable alternatives, allowed shared use of a parking space for curbside pickup or other alternatives. 4. The use of City-owned public parking spaces for curbside pickup shall not interfere with vehicular and pedestrian traffic, or access under the Americans with Disabilities Act. 5. No permanent item or structure may be installed on City-owned public parking spaces. 6. Businesses must have a current business license as well as any other applicable licenses or permits from outside agencies such a County Health or Alcohol Beverage Control. 7. No real property right is provided, given, or otherwise conveyed to any person or entity using City-owned public parking spaces as provided herein. Any such use shall cease upon termination of applicable County and/or State orders, and the permittee shall return City-owned public parking spaces to the condition existing at the time of permit issuance. 8. Should County or State orders be modified to allow additional businesses to implement curbside pickup, those businesses shall be subject to the same criteria above. 9. These provisions shall be in effect until termination of County or State orders. Criteria for Use of Private Parking Spaces and Parking Lots for Curbside Pickup Until termination of County or State orders, privately owned and maintained non -ADA public parking spaces may be used temporarily for curbside pick-up of food from restaurants, as well as curbside pick-up of retail goods and merchandise from Essential Businesses (as defined in the latest Santa Clara County Health Order), subject to the following requirements: 1. Curbside pickup is allowed only for businesses with an existing storefront within the commercial center and is subject to any approvals or requirements of the building or commercial center owner. 2. A temporary sign may be placed at the curb to designate the use of public parking spaces for pick-up and delivery purposes, however the City will not enforce exclusive use of parking spaces for such purposes. 10.A Packet Pg. 348 3. The use of parking spaces for curbside pickup shall not interfere with vehicular and pedestrian traffic, access under the Americans with Disabilities Act or fire/emergency access. 4. No permanent item or structure may be installed in the parking lots without written city approval. 5. Businesses must have a current business license as well as any other applicable licenses or permits from outside agencies such a County Health or Alcohol Beverage Control. 6. Should County or State orders be modified to allow additional businesses to implement curbside pickup, those businesses shall be subject to the same criteria above. 7. These provisions shall be in effect until termination of County or State orders restricting restaurant patron spacing. Measures to go into effect when County Orders allow additional business activity Criteria for Use of City-owned Public Properties and Right-of-Way for Restaurant Use in the Downtown Area At the time sit-down dining is permitted by Santa Clara County, certain City owned public properties including sidewalks, plazas, public parking lots and other right-of-way may be used temporarily for outdoor dining until termination of County or State orders, subject to the following requirements: 1. Prior to creating an outdoor seating area, the business owner shall submit to the Community Development Department a dimensioned diagram of the outdoor seating area which indicates the number of tables and chairs and provisions for access, fencing, screening and shade, as applicable. Outdoor dining shall not begin until approval has been received from the Community Development Department. 2. For outdoor seating proposed on a public sidewalk, the area shall be contiguous to the current occupied restaurant space. 3. If the business owner is not the property owner, property owner approval shall be provided. 4. If the outdoor seating area extends into space occupied or otherwise used by an adjacent business, approval by the adjacent business shall be provided. 5. Outdoor tables and chairs must not block or restrict access to or from any building, interfere with vehicular or pedestrian traffic and must comply with Building, Fire, Health, State and Federal codes and requirements as may be applicable. 6. The outdoor seating area shall be maintained free of trash and other debris. 7. If outdoor music is provided, it shall be as muted background music. 10.A Packet Pg. 349 8. Any outdoor alcohol consumption shall be in compliance with the rules and regulations of the Department of Alcoholic Beverage Control including fencing requirements. Fencing shall be temporary in nature and information on the location and materials used shall be included in the information submitted to the Community Development Department. 9. The City reserves the right to determine on a case-by-case basis the suitability and appropriateness of the public property requested by the restaurant for outdoor dining. 10. No permanent item or structure may be installed on City property. 11. Restaurants and outdoor dining, including spacing between tables, shall comply with all applicable State and County laws and regulations. 12. No real property right is provided, given, or otherwise conveyed to any person or entity using public property for outdoor dining purpose. Any such use permitted hereunder shall cease upon termination of applicable County, State or Federal orders, and the permittee shall return public property to the condition existing at the time of permit issuance. 13. These provisions shall be in effect until termination of County or State orders restricting restaurant patron spacing or until May 31, 2021, whichever is sooner. Criteria for Use of City-owned Public Properties and Right-of-Way for Retail Use At the time retail sales are permitted by Santa Clara County, the City will temporarily suspend Section 20.34 of the City Code that prohibits sidewalk exhibition of merchandise, subject to the following requirements: 1. The area for sidewalk exhibition of merchandise shall be contiguous to the occupied retail space. 2. If the area for sidewalk exhibition of merchandise extends into space occupied or otherwise used by an adjacent business, approval by the adjacent business shall be provided. 3. In cases where a retail business does not front a sidewalk or it is impractical to use the sidewalk adjacent to a business, use of city-owned plazas, public parking lots or other right-of-way may be granted upon written approval from the Community Development Department. 4. Display of merchandise may only take place during business hours and all merchandise and displays must be removed when business is not open. 5. Outdoor tables and chairs must not block or restrict access to or from any building, interfere with vehicular or pedestrian traffic and must comply with Building, Fire, Health, State and Federal codes, including ADA access and other requirements as may be applicable. 6. The outdoor area shall be maintained free of trash and other debris. 10.A Packet Pg. 350 7. The City reserves the right to determine on a case-by-case basis the suitability and appropriateness of the public property requested by the retail business to ensure public health and safety. 8. No permanent item or structure may be installed on City property. 9. All displays and operations shall comply with all applicable State and County laws and regulations. 10. No real property right is provided, given, or otherwise conveyed to any person or entity using public property for outdoor dining purpose. Any such use permitted hereunder shall cease upon termination of applicable County, State or Federal orders, and the permittee shall return public property to the condition existing at the time of permit issuance. 11. These provisions shall be in effect until termination of County or State orders restricting restaurant patron spacing or until May 31, 2021, whichever is sooner. Criteria for Use of Private Parking Lots or Private Streets for Business Use At the time sit-down dining and/or retail sales is permitted by Santa Clara County, private parking lots, sidewalks and walkways, plaza areas and other outdoor spaces may be used temporarily for outdoor dining or limited retail displays until termination of County or State orders, subject to the following requirements: 1. Prior to creating an outdoor seating or retail display area, the business owner shall submit to the Community Development Department a dimensioned diagram of the outdoor seating/display area which indicates the number of tables and chairs and provisions for access, fencing, screening and shade, as applicable. Outdoor dining or retail sales shall not begin until approval has been received from the Community Development Department. 2. For outdoor seating or retail display proposed on a sidewalk or walkway, the area shall be contiguous to the current occupied restaurant or retail space. In cases where a restaurant or retail business does not front a sidewalk or it is impractical to use the sidewalk adjacent to a business, plazas or other publicly accessible areas within the retail center may be considered. 3. If the business owner is not the property owner, property owner approval shall be provided. 4. If the outdoor seating or retail display area extends into space occupied or otherwise used by an adjacent business, approval by the adjacent business shall be provided. 5. Outdoor tables and chairs must not block or restrict access to or from any building, interfere with vehicular or pedestrian traffic and must comply with Building, Fire, Health, State and Federal codes and requirements as may be applicable. 10.A Packet Pg. 351 6. The outdoor seating/retail display area shall be maintained free of trash and other debris. 7. If outdoor music is provided, it shall be as muted background music. 8. Any outdoor alcohol consumption shall be in compliance with the rules and regulations of the Department of Alcoholic Beverage Control including fencing requirements. Fencing shall be temporary in nature and information on the location and materials used shall be included in the information submitted to the Community Development Department. 9. The City reserves the right to determine on a case-by-case basis the suitability and appropriateness of the property requested by the restaurant or retailer for outdoor dining or retail display to ensure public health and safety. 10. No permanent item or structure may be installed on the property without prior approval from the Community Development Department and property owner. 12. Restaurants and outdoor dining, including spacing between tables , shall comply with all applicable State and County laws and regulations. All retail displays and operations shall comply with all applicable State and County laws and regulations. 13. These provisions shall be in effect until termination of County or State o rders restricting restaurant patron spacing or until May 31, 2021, whichever is sooner. Criteria for Use of Public Streets for Business Use The City may allow temporary closure of a portion or entire sections of City streets for the temporary use of outdoor dining and limited display of retail merchandise, subject to the existing requirements for Special Use Permits. Certain requirements of the Special Use Permit process will be modified to accommodate the unique needs of restaurants and retail businesses modifying business operations to comply with County and State requirements. Temporary modifications include; 1. Faster processing of applications. Review of completed applications will be reduced from 30 days to 10 days. 2. Staff assistance will be available to consult with applicants and assist with preparing the required information such as a diagram of proposed area for closure, traffic control plan, etc. 3. Diagrams and descriptions must include information demonstrating compliance with applicable County and State requirements such as minimum distances between tables, location of hand-washing or sanitation requirements. 4. Once approved, a signed copy of the application and a permit card will be emailed to the applicant. Criteria for Use of Community Parks for Recreational and Fitness Business Use 10.A Packet Pg. 352 At the time fitness and recreational businesses are permitted by Santa Clara County, certain City owned public properties may be used temporarily for outdoor recreational and fitness business use, subject to the following requirements: 1. Existing recreational and fitness businesses with a current business license that rent, lease or own commercial space may conduct fitness, health or recreational related instructional classes in city owned Community Parks. This generally includes grass areas and trails and does not include buildings, amenities such as sport courts or playground equipment. 2. Recreational and fitness businesses wishing to utilize space within the City of Gilroy Community Parks shall submit a request, with photographs, drawing or depiction of the proposed location. The applicant shall also submit a description of the activities to be conducted, dates and times. A permit must be issued by the Recreation Department prior to use of park space. 3. Available park sites include Christmas Hill Park, Gilroy Sports Park and Las Animas Park and space is limited to grass/turf areas, trails or hard surface areas such as parking lots. 4. A rental fee of $35 per hour will be charged to cover administrative costs and must be paid in advance. Reservations can be made and fees paid either on a weekly or monthly basis. 5. Businesses must provide a copy of insurance and name the City of Gilroy as additionally insured. 6. This program is temporary and will not be extended beyond May 31, 2021 unless otherwise approved by the City Council. 7. Rentals are available to existing businesses with a current City of Gilroy business license. 8. Temporary signage may be placed at the location during times of class or instruction to direct patrons to the site. 9. The City reserves the right to determine on a case-by-case basis the suitability and appropriateness of the public property requested by the recreational or fitness businesses to ensure the health and safety of the public. 10. The use of City property shall not interfere with vehicular and pedestrian traffic, or access under the Americans with Disabilities Act. 11. Businesses must comply with all applicable County and State health orders as well as park rules and regulations per Chapter 18 of the Gilroy Municipal Code. Failure to comply will result in cancellation of rentals. 12. No permanent item or structure may be installed on City property. 13. If music is used, music shall only be loud enough for class participants to hear and shall be away from any residential properties. 14. No real property right is provided, given, or otherwise conveyed to any person or entity using public property for outdoor dining purpose. Any such use permitted 10.A Packet Pg. 353 hereunder shall cease upon termination of the local emergency, and the permittee shall return public property to the condition existing at the time of permit issuance. 15. The City will not provide any onsite staffing, materials or equipment. AFFECTED ORDINANCES Automatic Planning Entitlement Permit Extensions 21.41 Action on tentative map. (i) Initial approval of a tentative map is valid for twenty-four (24) months. Said approval may, at council discretion, be conditionally extended for three (3) periods not to exceed an additional twelve (12) months each. Automatically extends any permits expiring to May 31, 2021. 30.50.47 Terms of approval (Architectural and Site Permit) (a) Time Limits. If any development for which architectural and site approval has been granted has not obtained building permits within one (1) year from the date of notification of approval, the approval shall be deemed automatically revoked. Upon application, an extension of time may be granted by the planning director. Automatically extends any permits expiring to May 31, 2021. 30.50.50 Planned unit development approval (e) Time Limits. If any development for which a planned unit development approval has been granted has not obtained building permits within one (1) year from the date of notification of approval, the approval shall be deemed automatically revoked. Upon application, an extension of time may be granted by the city council. Automatically extends any permits expiring to May 31, 2021. Temporary Signs Temporarily suspends time limitations as described in Section 30.37.20 (d)(6) a. and b. Temporarily suspends requirement for banner permit as described in subsection b. Allows for temporary banners that meet all other applicable criteria as described in subsections c., d., and e. through May 31, 2021. Temporarily suspends requirement for permit for portable freestanding/A-frame signs in commercial and industrial zoned districts that comply with all other requirements of Section 30.37.90. Temporarily allows businesses to have one (1) additional portable freestanding/A-frame sign for the purpose of designating curbside pick-up. The 10.A Packet Pg. 354 curbside portable freestanding/A-frame must be adjacent to the parking space used for curbside pick-up and must maintain an open accessible travel path of at least four (4) feet in width. Applicable through May 31, 2021. Allows for additional temporary on-site directional/informational signs on private property. Signs must comply with requirements of Section 30.37.20 (d) (14). These signs are limited to providing information or directing pedestrians and vehicular traffic to operations that have been modified as a direct result of implementing County or State orders and may not be used to advertise or promote products and shall not be placed on any portion of street, sidewalk, or public right-of-way or impede lines of site. Applicable until termination of County or State orders allowing normal operation of business or until May 31, 2021, whichever is sooner. 30.37.20 Sign permits. (a) Issuance. Permits shall be required for all signs in Gilroy, except those specifically exempted by subsection (d) of this section. 30.37.20 (d) related to banner signs (6) Temporary banners located over private property to advertise sales and special promotions which meet the following criteria: a. Allowed Banners. Within the ten (10) identified periods below, temporary banners may be displayed without obtaining a sign permit or prior approval by the city for a maximum of ten (10) consecutive calendar days for each period as follows: February 14th, and the preceding 9 days The third Monday of February, and the preceding 9 days The first Sunday following the first full moon occurring on or after the March equinox, and the preceding 9 days The last Monday in May, and the preceding 9 days July 4th, and the preceding 9 days The first Monday in September, and the preceding 9 days October 31st, and the preceding 9 days The fourth Thursday of November, and the preceding 9 days December 25th, and the preceding 9 days January 1st, and the preceding 9 days b. Other Banners. The display of other banners outside the periods identified under subsection (d)(6)(a) of this section, Allowed Banners, shall be allowed for no more than four (4) periods per calendar year. A banner permit is required for each banner display period which is limited to increments of ten (10) consecutive days, which may include ten (10) day periods, or combined into twenty (20), thirty (30) or forty (40) consecutive 10.A Packet Pg. 355 days per display period. Other banners may be displayed no more than a total of forty (40) days each calendar year. c. No more than three (3) temporary banners shall be allowed for each business at any one (1) time. If more than one (1) banner is used at a time, the total area of all banners shall be limited as shown in Column 1, and in no case may the total banner area exceed the limits set forth in Column 2, as described in the table below. d. Banners may be mounted on any side of a building, except no sign shall be mounted on the side of a building abutting and facing a freeway. e. Banners shall meet the following size limitatio ns: COLUMN 1 COLUMN 2 Maximum total banner area permitted (in square feet) for each lineal foot of building frontage.* Maximum total banner area permitted (in square feet) regardless of building frontage* PO and CCA Districts 1 1/2 90 C1, TD and CD Districts 1 1/2 90 DHD and DED Districts 1 1/2 150 C3, HC, CM and GD 2 150 M1, M2 2 150 *Building frontage shall be defined pursuant to section 30.37.50(b). 30.37.90 Portable freestanding open house real estate signs and A-frame signs. Portable freestanding open house real estate signs and A-frame signs are allowed in all zoning districts, as follows: (a) Placement of portable signs shall not be any closer than one (1) foot from the street curb edge, where sidewalks exist. Such signs shall not be placed any closer than seven (7) feet from the street curb edge, where no permanent walking path exists. In no case shall such signs be placed within a sidewalk intersection (as defined under section 20.60); (b) Portable signs shall not block any alley right-of-way, driveway, parking stall, or building exit; (c) Under no circumstances shall portable signs be located in a manner which poses a traffic vision hazard. Portable signs shall not block the corner sight distance triangle as described in adopted city standards, unless otherwise approved by the traffic engineer; 10.A Packet Pg. 356 (d) Portable signs placed on a public sidewalk must maintain an open accessible travel path for pedestrian and bicycle passage of at least four (4) feet in width, and shall comply with the current Department of Justice requirements, describing Americans with Disability Act (ADA) accessibility standards. Prior to placing a portable open house sign on a public sidewalk, the signage owner shall procure insurance and submit to the city a certificate of insurance in an amount and form acceptable to the city’s risk manager, and adding the city of Gilroy as an additional insured to the owner’s comprehensive general liability policy; (e) In no case may a portable sign be allowed where less than a minimum four (4) feet of unobstructed sidewalk width is provided and maintained for safe pedestrian passage; (f) Except as otherwise limited, the maximum height for a portable sign shall be four (4) feet, with a maximum width of two and one-half (2 1/2) feet. Portable signs shall be constructed of wood (or other stout material) and metal hardware, with all surfaces painted. All signs shall be professionally manufactured, and maintained in good repair at all times. Portable signs shall have no electrical, mechanical, or fixed attachments, including objects that move with the wind; (g) Portable signs shall not be attached or secured to public property, placed over any utility box, or within thirty-six (36) inches of a fire hydrant; (h) Landscaping shall not be modified or damaged to accommodate portable signs; (i) Specific to portable freestanding open house real estate signs, such signs may be off site and are permitted in all districts except the downtown historic district and expansion district under the following conditions: (1) Portable open house signs may only be erected on the day(s) and time on which the property is available for public showing and shall be taken down during all other times; (2) For purposes of this section, “open house” means a scheduled period of time in which a house, condominium, townhome, or other residential dwelling unit offered for resale is available for viewing by potential buyers. This term does not apply to such offers in newly developed communities with model homes or sales offices; (j) Specific to portable freestanding A-frame signs, such signs are permitted in commercial and industrial zone districts under the following conditions: (1) Each tenant located within a commercial complex or building may have a single portable A-frame sign, providing that their business has a distinct individual storefront and separate front entrance for customers; (2) In the downtown historic district, downtown expansion district, and downtown civic/cultural arts district, portable A-frame signs are allowed on a public sidewalk immediately in front of a business; (3) In the downtown historic district, a single A-frame sign per side street direction is allowed, with that single sign offering the opportunity to represent multiple businesses on that side street; 10.A Packet Pg. 357 (4) In all other areas of the city, portable A-frame signs are allowed on private property within fifteen (15) feet of the front door of the business that it advertises. For purposes of this section, “front door” means the primary entrance to a busine ss entity that is most often used by its patrons or customers; (5) Portable A-frame signs may be displayed only during hours that the business is open to the public, and shall be stored away from public views at all other times; (6) To implement this section, specifications and standards for portable A-frame signs, including type of frames, sign height and size and font size/type, may be adopted by the council by resolution; (7) An exception to the allowed placement of A-frame signs may be granted by the community development director or designee if a specific geographic constraint to the property exists such that the business frontage immediately faces a street from which access to the business is not possible, and the exception is supported by findings and substantial evidence of such geographic constraints. In this case an A -frame sign may be permissible, subject to substantial evidence required herein, allowing an A - frame sign to be placed on private property at the business entryway or driveway, which entryway or driveway is located on an adjacent street. Under extreme circumstances, such exception may be considered on public property, consistent with all pertinent requirements of this section. Exceptions shall not apply to shopping centers or strip malls generally. The denial of an exception may be appealed to the planning commission as provided by section 30.51.50 and the planning commission shall base its determination consistent with the provisions of this section. 30.37.20 (d) (14) On-site directional signs, including no trespassing and no dumping signs, up to four (4) square feet in area and not exceeding four (4) feet in height. Four (4) such signs are permitted for developments under one (1) acre, eight (8) for developments over one (1) acre, and twelve (12) for developments over fifteen (15) acres. Outdoor Seating/Dining Allows for administrative review and approval of temporary outdoor seating proposed on both private property and public property and right-of-way. Section 30.47.50 (e) of the municipal code allows for temporary outdoor uses that meet all conditions of the chapter and where the zoning administrator determines no safety hazards will result from the proposed use. Temporarily suspends the 30 day limitation specifically for outdoor dining that meets all other criteria listed and receives approval from the Community Development Department and allows such use until termination of County or State orders restricting restaurant patron spacing or until May 31, 2021, whichever is sooner. Also modifies Section 30.44 of the municipal code that regulates and reviews Street Furniture Objects to expedite such review and allow modifications on a temporary basis. Section 30.47.50 Other temporary uses. 10.A Packet Pg. 358 Any of the following uses may be permitted, subject to a specific time limit not to exceed thirty (30) consecutive days per calendar year: (a) Neighborhood bazaar, exhibition, celebration or festival in any district, when sponsored by an organized group of residents or tenants in the vicinity. (b) Booth for charitable, welfare, civic or patriotic purposes. (c) Open-air sale of seasonal items, such as (but not limited to) flowers for Valentine’s Day, Mother’s Day and graduation, Christmas trees and pumpkins, except in residential districts. For purposes of this section “seasonal items” means those items not typically sold by the on-site permanent retail establishment and/or by the same retailer. (d) Sales of fireworks, as regulated by all applicable city policies and ordinances. (e) Other temporary outdoor uses that meet all other conditions of this chapter, and where the zoning administrator determines that no safety hazards will result from the proposed use. Section 30.44 Street Furniture Objects 30.44.10 Statement of intent. It is the intent of this article to provide specific standards for setting street furniture objects in the downtown and commercial zoning districts. This chapter recognizes that: (a) For some businesses, setting street furniture objects is an integral part of doing business in the downtown and commercial zoning districts; (b) The appearance of the public right-of-way in the downtown and commercial zoning districts is protected by providing measurable standards for street furniture object compliance with this chapter and policies referenced herein; (c) Street furniture objects set out by one (1) merchant should not distract from the business operations of other merchants; and (d) These standards are intended only to regulate the setting and placement of street furniture objects. (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13) 30.44.15 Street furniture objects defined. A “street furniture object” shall mean any object, other than a portable sign as regulated under section 30.37.90 or street merchandising under Article XLIII, which is placed in the public right-of-way. (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13) 30.44.20 Permitted where. Street furniture objects are allowed under the following conditions: 10.A Packet Pg. 359 (a) Businesses eligible to place street furniture object in the public right -of-way in accordance with the “Policy for Placement of Street Furniture Objects in the Public Right-of-Way” shall comply with all provisions of that policy, as it is amended from time to time, including but not limited to the location of street furniture objects, insurance and indemnification requirements, permit approval, and all conditions of approval. Sidewalk Exhibition of Merchandise Temporarily suspends Section 30.24 of the Gilroy Municipal Code regulating display of merchandise on sidewalks. Temporarily allows sale or exhibition of merchandise on sidewalks subject to certain requirements as noted above. Applicable until termination of County or State orders allowing normal operation of business or until May 31, 2021, whichever is sooner. 20.34 Sidewalk exhibition of fruit and merchandise prohibited; exception. No person owning or occupying any building or premises fronting on any public street in the city shall place or cause to be placed, kept or maintained for sale or exhibition any fruit, vegetables, goods, wares or merchandise of any kind on any sidewalk in the city except as specifically provided by the City of Gilroy Zoning Ordinance; provided, that merchants, tradesmen and persons engaged in receiving, forwarding and expressing goods and other commodities, may use a portion of the sidewalk in front of their respective places of business for depositing such goods or commodities for a period of time not exceeding four (4) hours in any one day. Use of Community Parks for Recreational and Fitness Business Use Temporarily suspends a portion of Section 30.25.20 (b) of Article XXV. Of the Gilroy Municipal Code regulating uses within the PF Park/Public Facilities District. Temporarily suspends the requirement to obtain a conditional use permit for the purpose of conducting outdoor recreation service or exercise/fitness related classes or instructions for businesses with a current City of Gilroy business license. Applicable until termination of County or State orders allowing normal operation of business or until May 31, 2021, whichever is sooner. Section 30.25.20 (b) Conditional Uses. The following uses are permitted only with a conditional use permit from the planning commission. The planning commission, or its designee, shall determine, upon written request, whether or not any use not listed below is similar in character to a described use for the purpose of applying the regulations and conditions of this section. (1) Facilities of all public utilities, and corporations or other organizations whose activities are under the jurisdiction of the Federal Communications Commission or the Interstate Commerce Commission. (2) Any of the following uses, when conducted on property owned by the City of Gilroy, the County of Santa Clara, the State of California, the government of the United States, 10.A Packet Pg. 360 the Gilroy unified school district, or any other governmental agency, and leased for the following uses: a. Private educational facilities. b. Day care centers. c. Community centers. d. Residential care facilities, when utilizing existing structures on the site. e. Business or trade schools. f. Outdoor recreation service. g. Neighborhood recreation center. h. Art, dance, gymnastic, exercise or music studios or classes. i. Special education classes. ALTERNATIVES 1. The City Council may choose not to adopt some or all of the recommended measures. 2. The City Council may choose to modify some or all of the recommended measures. FISCAL IMPACT/FUNDING SOURCE Automatic Planning Entitlement Extensions – no staff costs as no work is necessary with an automatic extension. Minor loss of revenue for projects which would have requested an extension between now and May 31, 2021. Permit extensions are $380 plus publication costs. Expedited Review of Dedicated Paths of Travel – minor staff costs for review of plans. This is a new need that some businesses may have due to COVID -19 regulations. It is not anticipated there will be a significant number of businesses that request this service. Temporary Sign Waivers – negligible staff costs as the proposal eliminates staff review for signs that comply with the measure. There may be some staff costs associated with contacting businesses not in compliance with the measure. Minor loss of revenue for businesses that would have otherwise obtained a permit for temporary b anner or A- frame signs. Sign permits are $126/first 25 SF + $29/each addl 25 SF. 10.A Packet Pg. 361 Use of Parking Spaces and Parking Lots for Curbside Pickup - minor staff costs for review of plans. This is a new need that some businesses may have due to COVID-19 regulations. It is anticipated that review would be no more than two hours total review time for the various departments that would review such requests. Increase Local Contract Preference – no staff costs. Would result in increase of contract costs should contract be awarded to a qualifying Gilroy business. Increase dependent on total amount of contract. City of Gilroy Economic Recovery Task Force – minor staff costs for time to participate and coordinate meetings. Use of City-Owned Public Properties and Right-Of-Way for Business Use - minor staff costs for review of plans. It is anticipated that review would be no more than two hours total review time for the various departments that would review such requests. Some potential loss of revenue for businesses that would have otherwise obtained a permit for permanent placement of outdoor dining, however most that implement temporary outdoor dining would not have likely applied for permanent outdoor dining. Use of Private Parking Lots of Private Streets for Business Use - minor staff costs for review of plans. It is anticipated that review would be one to two hours total review time for the various departments that would review such requests. Some potential loss of revenue for businesses that would have otherwise o btained a permit for permanent placement of outdoor dining, however most that implement temporary outdoor dining would not have likely applied for permanent outdoor dining. Use of Public Streets for Business Use - minor staff costs for review of plans. It is anticipated that review would be three to four hours total review time for the various departments that would review such requests. It is not anticipated that there will be a significant number of these requests. Temporary Use of City-Owned Park and Open Space for Use by Fitness and Recreation Businesses – minor staff costs for review of plans. It is anticipated that review would be about one hour of staff time and would be largely covered by a proposed $35 hour fee. CONCLUSION The proposed measures are temporary in nature and are intended to support local businesses, stimulate economic activity and to bolster the overall economic health of the City of Gilroy. As new orders are issued by the County and as we implement these measures, staff may modify measures and bring back additional recommendations to Council. Staff will provide Council with regular updates on these measures. NEXT STEPS Begin measures noted for immediate implementation. Other measures will be implemented as County orders allow. 10.A Packet Pg. 362 PUBLIC OUTREACH Staff has reached out to the Chamber of Commerce and Gilroy Downtown Business Association. Attachments: 1. Resolution - Business Stimulus 10.A Packet Pg. 363 -1- RESOLUTION NO. _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY, CALIFORNIA, IMPLEMENTING A BUSINESS STIMULUS PACKAGE TO ASSIST LOCAL BUSINESSES AFFECTED BY COVID-19 WHEREAS, on January 30, 2020, the World Health Organization declared the COVID-19 outbreak a Public Health Emergency of International Concern, and on January 31, 2020, the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS, on March 13, 2020, the Director of Emergency Services issued a proclamation declaring the existence of a local emergency within the City relating to COVID-19, pursuant to the Emergency Services Act (Government Code Section 8550, et seq.), and on March 16, 2020, the City Council adopted a resolution ratifying the declaration of local emergency; and WHEREAS, the Centers for Disease Control and Prevention recommends social distancing measures to slow the spread of COVID-19, including by maintaining a physical distance of at least six (6) feet from other people; and WHEREAS, on March 16, 2020, the Santa Clara County Health Officer issued a shelter-in-place order to address COVID-19, directing all residents of the County to shelter in their places of residence except to engage in essential activities as allowed under the order; and WHEREAS, on March 19, 2020, the Governor issued a statewide shelter- in-place order; and WHEREAS, as State and County restrictions are relaxed to allow businesses that were closed as a result of the shelter-in-place orders to resume, businesses will be expected to establish social distancing protocols to help prevent the spread of COVID-19; and 10.A.a Packet Pg. 364 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -2- WHEREAS, Gilroy’s local economy has suffered significantly during the current local emergency, and on June 1, 2020, the City Council considered recommendations for temporarily modifying certain requirements to support business and development activity and to aid in the economic recovery of the City arising from the COVID-19 pandemic, including by facilitating businesses to implement social distancing protocols; and WHEREAS, Government Code Section 8634 states that during a local emergency, a local agency governing body “may promulgate orders and regulations necessary to provide for the protection of life and property,” and that “[s]uch orders and regulations and amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice”; and WHEREAS, regulatory flexibility to stimulate the local economy and to facilitate local businesses to remain open with social distancing protocols in place throughout the current COVID-19 epidemic is necessary to provide for the protection of life and property because, (i) a vibrant economy is a necessary component of community health, and is necessary to avoid significant urban decay and decreased property values; and (ii) social distancing protocols are necessary to slow the spread of COVID-19 during the current pandemic; and WHEREAS, Vehicle Code Section 22507 authorizes cities to adopt local rules for parking on public streets; and WHEREAS, Vehicle Code Section 21101(e) authorizes the governing body of a local agency to close portions of public streets temporarily by ordinance or resolution as necessary for the safety and protection of persons who are to use such portions of streets during the temporary closing; and WHEREAS, Government Code Section 66452.6 states that tentative subdivision tract maps shall expire after 24 months, which may be extended by local rule for up to an additional 12 months; and 10.A.a Packet Pg. 365 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -3- WHEREAS, the City of Gilroy, as a municipal corporation and charter city, has inherent authority to govern and control the use and enjoyment of its own property; and WHEREAS, Article XI, Section 7 of the California Constitution states that: “A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws. NOW, THEREFORE, be it resolved that: 1. The City Council hereby finds that each of the foregoing recitals is true and correct. 2. As used herein, “County and State Orders” means any shelter-in-place order or other public health order issued under the authority of and officer of the County or State that is applicable within the City of Gilroy, and that restricts public gatherings and business activities for the purpose of slowing the spread of COVID-19. 3. The expiration dates of all tentative maps, architectural and site permits, and planned unit development permits that are considered to be active during the pendency of County and City Orders are hereby extended through May 31, 2021, and the application of the following provisions of the Gilroy City Code are hereby suspended to the extent contrary herewith, as set forth in the staff report attached to this Resolution as Exhibit A: Sections 21.41, 30.50.47, and 30.50.50. 4. Until termination of County and State Orders, commercial centers that choose to restrict or direct paths of travel for vehicles or pedestrians within private parking lots, such as within retail centers, may apply for expedited administrative review and approval of dedicated paths of travel for vehicles by submitting to the Community Development Department the application materials set forth in Exhibit A. 10.A.a Packet Pg. 366 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -4- 5. Temporary banner signs shall be allowed within the City limits without a permit through May 31, 2021, subject to the criteria set forth in Exhibit A, and the application of the following provisions of the Gilroy City Code are hereby suspended to the extent contrary herewith, as further set forth in Exhibit A: Sections 30.37.30 and 30.37.90. 6. Until termination of County and State Orders, privately owned parking lots and non-ADA parking spaces may be used for curbside restaurant, food, and retail merchandise pickup, subject to criteria set forth in Exhibit A. For downtown businesses or businesses that cannot provide customer access to privately maintained parking spaces, City owned public parking spaces may be used instead, subject to criteria set forth in Exhibit A. No permit fee will be required. 7. The City of Gilroy Economic Recovery Task Force is hereby established to include city staff and representatives from existing partnerships including the Chamber of Commerce, Gilroy Downtown Business Association, Visit Gilroy, and local business owners. The Task Force shall be empowered to perform such functions as set forth in Exhibit A, and shall be subject to the Brown Act (Government Code Section 54930, et seq.). The City Administrator is hereby authorized to take all steps necessary or convenient to constitute the Task Force in coordination with local business associations. 8. Until May 31, 2021, the local contract preference per the City’s Purchasing Policy for evaluating bids for supplies, equipment, and services shall be increase to ten (10) percent for bids of Five Hundred Thousand Dollars ($500,000) or less. Local preferences for bids over this amount will remain unchanged at five (5) percent. 9. At the time that County and State Orders permit sit-down dining, the City 10.A.a Packet Pg. 367 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -5- shall make certain City owned public properties, including sidewalks, plazas, public parking lots, and other rights-of-way, available for outdoor dining during the pendency of the County and State orders, subject to requirements set forth in Exhibit A, and the application of the following provisions of the Gilroy City Code are hereby suspended to the extent contrary herewith, as further set forth in Exhibit A: Sections 30.44.10, 30.44.15, 30.44.20, and 30.47.50. 10. At the time retail sales are permitted under the County and State Orders, the application of Section 20.34 of the Gilroy City Code shall be suspended during the pendency of the County and State orders, as set forth in Exhibit A, to allow for sidewalk exhibition of merchandise subject to requirements further set forth in Exhibit A. 11. At the time sit-down dining and/or retail sales are permitted under the County and State Orders, private parking lots, sidewalks, walkways, and plaza areas, or similar outdoor spaces, may be used for outdoor dining or limited retail displays during the pendency of the County and State Orders, subject to requirements set forth in Exhibit A. 12. At the time sit-down dining and/or retail sales are permitted under the County and State Orders, portions of public streets may be used for outdoor dining or limited retail displays during the pendency of the County and State Orders, subject to requirements set forth in Exhibit A; provided, however, that no portion of any street shall be closed entirely to through traffic except as authorized by subsequent resolution of the City Council pursuant to Vehicle Code Section 21101(e). The City Council hereby directs staff to place consideration of any such resolution on the consent calendar. 13. At the time fitness and recreational businesses are permitted under County 10.A.a Packet Pg. 368 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -6- and State Orders, the Recreation Department shall be authorized to issue permits for use of City property by such businesses, on terms and conditions set forth in Exhibit A. The application of Section 30.25.20 is hereby suspended to the extent contrary herewith. This program will not be extended beyond May 31, 2021, without further approval of the City Council. 14. To the extent necessary or convenient to implement any provision of this resolution, the City Engineer or designee is hereby authorized to modify the rules for use of any parking space located within a public street, which modified rules shall become effective upon the posting of appropriate signage advising the public thereof. 15. This Resolution shall be construed liberally to effectuate its purposes. If any provision of this Resolution is found by a court of competent jurisdiction to be invalid or unenforceable, that provision shall be severed and deleted, and the remaining portions of this Resolution shall remain in full force and effect. Nothing in this Resolution shall be construed to authorize a violation of the County and State Orders. 16. City staff shall publicize this Resolution by posting it on the City’s website and at City Hall, and by providing copies hereof to local media outlets. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 1st day of June, 2020, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTENTIONS: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 10.A.a Packet Pg. 369 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -7- [Signatures on Following Page] APPROVED: _____________________________ Roland Velasco, Mayor ATTEST: ______________________________ Shawna Freels, City Clerk 10.A.a Packet Pg. 370 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) -1- EXHIBIT A CITY COUNCIL STAFF REPORT JUNE 1, 2020 10.A.a Packet Pg. 371 Attachment: Resolution - Business Stimulus (2836 : Gilroy Business Stimulus Package) City of Gilroy STAFF REPORT Agenda Item Title: Consent of the Appointment of Scot Smithee as Interim Police Chief (Retired Annuitant) Effective June 2, 2020 and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety  Workforce Stability ☐ Public Engagement RECOMMENDATION a) Consent of the Interim City Administrator's recommendation to appoint Scot Smithee as Interim Police Chief (as a retired annuitant) effective June 2, 2020. b) Adopt a resolution approving the appointment of Scot Smithee as Interim Police Chief (Retired Annuitant) pursuant to California Government Code Section 21221(h) and authorizing the Interim City Administrator to execute his employment agreement. BACKGROUND 10.B Packet Pg. 372 Recently, Scot Smithee announced his retirement from the position of Police Chief effective June 1, 2020. As most know, Chief Smithee retired in 2015 from the position of Police Captain and later came out of retirement in 2017 to serve as Gilroy’s Police Chief. Chief Smithee has kept his commitment to serve as Chief for at least three years and is now ready to restart his retirement. He has agreed, however, to aga in serve as the Interim Police Chief while the City conducts a recruitment for a new Police Chief. California Government Code Section 21221(h), allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need f or expertise and specialized skills and a recruitment is underway for the position. At this time, the City has initiated a recruitment for a new Police Chief and plans to complete the selection process in the next three to four months. Further, the retired annuitant may not work more than 960 hours in a fiscal year and cannot receive any compensation other than the hourly rate of pay for the work performed by other employees performing comparable duties. In the Interim Police Chief role, and as an officer of the City, Scot Smithee agrees to perform the following duties related to the Gilroy Police Department: a. Plan, direct, and coordinate the activities of the Police Department. b. Prioritize, administer, and prepare the departmental budget, to include budget reductions in light of the current general fund structural deficit. c. Develop and provide recommendations for training programs for City and Department staff. d. Present before City Council, public agencies, civic groups, and other organizations regarding Police Department projects and programs. e. Complete the Garlic Festival After Action Report with FEMA. f. Mentor Police Captains. g. Complete and Publish the Department Annual Report. h. Initiate the Records Management System (RMS) replacement process. i. Train staff on grant cycles for 2020. j. Any other duty or assignment typically completed by the Police Chief. As Interim Police Chief, Scot Smithee will continue to report directly to the Interim City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. ALTERNATIVES The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Police Chief. This alternative is not recommended. 10.B Packet Pg. 373 FISCAL IMPACT/FUNDING SOURCE This interim appointment provides a cost savings to the City as only the hourly rate for the position is paid to the retired annuitant and not any benefits. It is estimated that this interim appointment will save the City approximately $8,500 per month, which is all General Fund savings. Over a four-month period, the savings will total approximately $34,000. Further, the recruitment will be conducted by the City Human Resources Department to further save costs (typically $20,000 -$24,000) associated with hiring an outside executive search firm. CONCLUSION To ensure continuity in the management of the Police Department during a critical time period, it is recommended that the City Council consent to the appointment of Scot Smithee as Interim Police Chief (retired annuitant) effective June 2, 2020 and approve the resolution consenting the appointment and a uthorizing the Interim City Administrator to execute the employment agreement. NEXT STEPS Upon Council approval, the Interim City Administrator and Scot Smithee will sign the employment agreement. Other than administrative paperwork, the shift to Interim Police Chief will be seamless. In addition, staff will work to complete the Police Chief recruitment process. Given the reputation of the department and continue d community support, staff believes there will be both internal and external candidates interested in the position. Attachments: 1. Resolution to Approve Scot Smithee (Retired Annuitant) as Interim Police Chief 2. Scot Smithee Employment Agreement Exhibit A 10.B Packet Pg. 374 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING SCOT SMITHEE AS INTERIM POLICE CHIEF AND APPROVING EMPLOYMENT AGREEMENT WHEREAS, Government Code Section 21221(h) permits the City Council to appoint a retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, Scot Smithee is retiring from the position of Police Chief and his last day of work is June 1, 2020; and WHEREAS, the position of Police Chief will become vacant on June 2, 2020; and WHEREAS, the Gilroy City Council desires to consent the Interim City Administrator’s recommended appointment of Scot Smithee as an interim appointment retired annuitant to the vacant position of Police Chief for the City of Gilroy under Government Code Section 21221(h), effective June 2, 2020; and WHEREAS, Scot Smithee has over 30 years of experience in law enforcement and extensive expertise in Police Department management for a local government, including having most recently served as Police Chief for the City of Gilroy for over three years; and WHEREAS, an appointment under Government Code Section 21221(h) requires an active, publicly posted recruitment for a permanent replacement; and WHEREAS, the current status of this recruitment is open and accepting applications; and WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Scot Smithee; and WHEREAS, the entire employment agreement between Scot Smithee and the City of Gilroy has been reviewed by this body and is attached hereto as Exhibit A; and WHEREAS, no matters, issues, terms, and/or conditions related to this employment and appointment have been or will be placed on the consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum base monthly salary for this position is $17,180.00 and the hourly 10.B.a Packet Pg. 375 Attachment: Resolution to Approve Scot Smithee (Retired Annuitant) as Interim Police Chief (2840 : Appointment of Scot Smithee as Interim RESOLUTION NO. 2020-XX equivalent is $99.12, and the minimum base monthly salary for this position is $12,793.00 and the hourly equivalent is $73.81; and WHEREAS, the hourly rate to be paid to Scot Smithee will be $99.12; and WHEREAS, Scot Smithee has not and will not receive any other benefit, incentive compensation in lieu of benefit or any other form of compensation in addition to this hourly pay rate. NOW, THEREFORE, the City Council of the City of Gilroy hereby finds, determines, and resolves as follows: 1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference. 2. The City Council hereby certifies the nature of the employment of Scot Smithee as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Police Chief for the City of Gilroy by June 2, 2020 to provide the specialized skills necessary to manage the City’s Police Department. 3. The City Council hereby consents the Interim City Administrator’s recommended appointment of Scot Smithee as interim Police Chief effective June 2, 2020 pursuant to the authority provided under Government Code Sections 21221(h), which shall end on the date immediately preceding the date on which the permanent replacement for the vacant position of Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Scot Smithee. 4. The employment agreement with Scot Smithee, a copy of which is attached hereto as Exhibit A and will be maintained on file with the Human Resources Department, is approved by the City Council, effective June 2, 2020. 5. The Interim City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the Interim City Administrator and City Attorney. PASSED AND ADOPTED this 1st day of June, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ____________________________ Roland Velasco, Mayor 10.B.a Packet Pg. 376 Attachment: Resolution to Approve Scot Smithee (Retired Annuitant) as Interim Police Chief (2840 : Appointment of Scot Smithee as Interim RESOLUTION NO. 2020-XX ATTEST: _________________________ Shawna Freels, City Clerk 10.B.a Packet Pg. 377 Attachment: Resolution to Approve Scot Smithee (Retired Annuitant) as Interim Police Chief (2840 : Appointment of Scot Smithee as Interim EXHIBIT A RETIRED ANNUITANT EMPLOYMENT AGREEMENT The Retired Annuitant Employment Agreement (“Agreement”) is made by and between the City of Gilroy, a municipal corporation of the State of California (“City”) and Scot Smithee, an individual (“Retired Annuitant”) as of June 2, 2020 (“Effective Date”). RECITALS A. Retired Annuitant previously was employed by the City of Gilroy for three (3) years, serving as Police Chief; and B. Retired Annuitant retired from the City of Gilroy effective June 1, 2020 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City has a vacancy in the position of Police Chief, a regular position for which the City is conducting a recruitment for a permanent appointment; and D. The City has an immediate need for an employee to temporarily perform the position of Police Chief, a position involving specialized skills and training and which is critically necessary to the on-going duties and functions of the City’s Police Department; E. Retired Annuitant has the necessary qualifications, experience and abilities to assist City in the duties of management of the Police Department; and F. Retired Annuitant’s employment is authorized by Government Code section 21221(h), which permits the City to appoint a CalPERS retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent replacement. G. City desires to retain the services of Retired Annuitant in accordance with California Government Code Section 21221(h) and Retired Annuitant agrees to provide certain services to City under the strict terms and conditions set out in this Agreement. In consideration of this matter described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties of this Agreement agree as follows: AGREEMENT Section 1. Term of Services The term of this Agreement is from June 2, 2020 until such time as a permanent replacement for the position of Police Chief has been selected and has commenced employment, unless terminated sooner as provided below. 10.B.b Packet Pg. 378 Attachment: Scot Smithee Employment Agreement Exhibit A (2840 : Appointment of Scot Smithee as Interim Police Chief) Section 2. Scope of Services Retired Annuitant, as an officer of the city, agrees to perform the following duties related to the Gilroy Police Department: a. Plan, direct, and coordinate the activities of the Police Department. b. Prioritize, administer, and prepare the departmental budget, to include budget reductions in light of the current general fund structural deficit. c. Develop and provide recommendations for training programs for City and department staff. d. Present before City Council, public agencies, civic groups, and other organizations regarding Police Department projects and programs. e. Complete the Garlic Festival After Action Report with FEMA. f. Mentor Police Captains. g. Complete and Publish Department Annual Report. h. Initiate the Records Management System (RMS) replacement process. i. Train staff on grant cycles for 2020. j. Any other duties or assignments typically assigned to the Police Chief. Retired Annuitant will report directly to the Interim City Administrator. Retired Annuitant shall comply with all City rules, policies, guidelines, regulations, and laws. Section 3. Compensation; Hours City agrees to compensate Retired Annuitant at $99.12 per hour for all services provided under this Agreement. Payments from City to Retired Annuitant shall be made during the normal payroll cycles of other City employees. City has reviewed and compared the hourly rate set forth in this Section with other employees performing comparable duties and the hourly rate set forth in this Section does not exceed such other employee’s compensation. Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement exceeding a total of nine hundred sixty (960) hours during any fiscal year (July 1 to June 30) inclusive of any hours worked during the same period for other CalPERS employers as a retired annuitant. Retired Annuitant shall record his hours on a pre-approved timesheet that shall be submitted to the City every month. The position is a temporary, hourly assignment which is generally not expected to exceed 40 hours per week. The City, through the Interim City Administrator, will assign Retired Annuitant hours to work. Due to the nature of the position, it is understood that the workday and workweek hours may vary, however Retired Annuitant shall not work overtime (i.e. in excess of 40 hours per week) as payment of overtime is prohibited under Government Code Section 21221(h). 10.B.b Packet Pg. 379 Attachment: Scot Smithee Employment Agreement Exhibit A (2840 : Appointment of Scot Smithee as Interim Police Chief) There are no other benefits, incentives, compensation in lieu of benefits or other forms of compensation in addition to the hourly pay rate set forth in this Section. Section 4. Location The primary location for services will be at the following address: Gilroy Police Department, 7301 Hanna Street, Gilroy, California 95020 Section 5. Compliance with Laws This Agreement will be construed in accordance with and governed by the laws in the State of California. In the event that suit shall be brought by any of the parties, the parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California. Retired Annuitant shall comply with all applicable laws, rules, policies, and guidelines. Retired Annuitant agrees and acknowledges that the State of California and the governing body of the California Public Employees’ Retirement System enact strict laws, regulations and guidelines relating to services provided by “retired annuitants” to public agencies contracting with the California Public Employees’ Retirement System. Retired Annuitant agrees to comply with all applicable laws, regulations and guidelines relating to the services provided under this Agreement. Section 6. Termination This Agreement may be terminated by either party for convenience by providing written notice to the other party. Section 7. Miscellaneous a. Retired Annuitant has read each and every part of this Agreement and Retired Annuitant freely and voluntarily has entered into this Agreement. This Agreement is a negotiated document and shall not be interpreted for or against any party by reason of the fact that such party may have drafted this Agreement or any of its provisions. b. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjusted shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. c. This Agreement represents the entire and integrated agreement between City and Retired Annuitant and supersedes all prior negotiations, representations, or agreements, either written or oral. In witness where of the parties have duty affixed their signatures on this __ day of _______, 20__. 10.B.b Packet Pg. 380 Attachment: Scot Smithee Employment Agreement Exhibit A (2840 : Appointment of Scot Smithee as Interim Police Chief) Employer: City of Gilroy Jimmy Forbis, Interim City Administrator Retired Annuitant: Scot Smithee Approved as to Form: Andrew L. Faber, City Attorney Attest: Shawna Freels, City Clerk 10.B.b Packet Pg. 381 Attachment: Scot Smithee Employment Agreement Exhibit A (2840 : Appointment of Scot Smithee as Interim Police Chief) City of Gilroy STAFF REPORT Agenda Item Title: Pay Freeze for Unrepresented Department Head and Council- Appointed Employees for Fiscal Year 2021 and Fiscal Year 2022 Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: LeeAnn McPhillips LeeAnn McPhillips Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a resolution of the City Council of the City of Gilroy freezing the salaries for unrepresented Department Head and Council-Appointed employees for Fiscal Year 2021 and Fiscal Year 2022. BACKGROUND Effective July 1, 2020, the unrepresented Department Head employees are scheduled for a 3% salary increase. This increase was approved by the City Council last year on August 19, 2019 (Resolution 2019-57). In addition, the Interim City Administrator’s employment agreement includes a 3% salary increase effective July 1, 2020. Furthermore, the City Clerk is typically evaluated annually and provided a salary increase based on her performance. Executive managers can also receive a 10.C Packet Pg. 382 performance-based increase within their established salary range if not yet at the top of the range. In light of the budget constraints and structural General Fund budget deficit the City is experiencing at this time, it is recommended that the pay of all executive managers (department heads and Council-appointed employees), be frozen for fiscal years 2021 and 2022 to include both across the board and performance-based increases. ANALYSIS The scheduled 3% pay increase for executive managers is valued at approximately $74,000 to include salary and salary-related benefits (i.e. CalPERS). A few executive managers are not yet at the top of their salary range so freezing performance -based increases will save another $34,000 annually. Therefore, freezing the executive management compensation will save approximately $108,000 per year. ALTERNATIVES The alternative is to not implement an executive management pay freeze and move forward with the FY 2021 increase noted in Resolution 2019-57. This alternative is not recommended. FISCAL IMPACT/FUNDING SOURCE The fiscal impact of implementing the recommended pay freezes (across the board and performance based) for executive managers is estimated to be approximately $108,000 annually. Approximately, $70,000 of the $108,000 is charged to the General Fund. Therefore, a two year freeze will realize a $140,000 in ongoing savings to the General Fund and a savings of $216,000 overall to all funds. CONCLUSION The executive management pay freeze is important. It demonstrates that the executive managers are willing to take the lead and forgo future wage increases in an effort to provide savings to the General Fund in order to help the City continue to provide essential services and get through this difficult economic time. Attachments: 1. Department Head and Council-Appointed Employee FY 2021 and FY 2022 Pay Freeze Resolution 10.C Packet Pg. 383 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY FREEZING THE SALARIES FOR THE UNREPRESENTED DEPARTMENT HEADS AND COUNCIL-APPONTED EMPLOYEES FOR FISCAL YEARS 2021 AND 2022 WHEREAS, City of Gilroy Resolution 2019-57 provides a three percent (3%) salary increase for unrepresented department heads effective July 1, 2020; and WHEREAS, the employment agreement for the Interim City Administrator provides for a 3% salary increase effective July 1, 2020; and WHEREAS, the City Council of the City of Gilroy typically evaluates the City Clerk and provides an annual salary increase based on her work performance; and WHEREAS, some executive managers are eligible for performance-based salary increases within their established salary range; and WHEREAS, the executive management team is recommending that the City Council approve a pay freeze, to include across the board and performance-based increases, for all executive managers for fiscal years 2021 and 2022 to provide savings to the General Fund to assist with addressing the structural budget deficit. NOW, THEREFORE, BE IT RESOLVED that the salaries effective June 30, 2020 for the department heads and council-appointed employees shall be frozen for fiscal years 2021 and 2022, to include the elimination of the July 1, 2020 three percent (3%) increase approved by Resolution 2019-57. PASSED AND ADOPTED this 1st day of June, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ____________________________ Roland Velasco, Mayor ATTEST: _________________________ Shawna Freels, City Clerk 10.C.a Packet Pg. 384 Attachment: Department Head and Council-Appointed Employee FY 2021 and FY 2022 Pay Freeze Resolution (2839 : Pay Freeze for City of Gilroy STAFF REPORT Agenda Item Title: Pay Freeze for City Council Members for Fiscal Year 2021 and Fiscal Year 2022 Meeting Date: June 1, 2020 From: Jimmy Forbis, Interim City Administrator Department: City Council Submitted By: Roland Velasco Prepared By: Roland Velasco LeeAnn McPhillips Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a resolution of the City Council of the City of Gilroy freezing City Council and Mayor stipends at July 1, 2019 amounts for Fiscal Year 2021 and Fiscal Year 2022. BACKGROUND Annually, consistent with Gilroy City Council Ordinance 99-01, the stipend received by the Mayor and City Council members is adjusted in accordance with the regional cost of living index using the April All Urban Consumer (CPI-U) index. In the recent years, this adjustment percentage ranged from 2.7% - 4.0%. The annual percentage change for the period April, 2019 – April, 2020 is 1.1%. I am recommending the City Council freeze their compensation at the July 1, 2019 amounts and not implement the CPI adjustment identified in Ordinance 99 -01 for the 10.D Packet Pg. 385 next two years. This action is needed to demonstrate to call levels of the City that the Council is addressing the necessary budget reductions to close the General Fund deficit. ANALYSIS The stipend received by the Mayor is currently $1,349 per month and the Council Member stipend is $900 per month. Freezing the salaries for FY 2021 will save approximately $1,250 annually based on the current stipend and stipend related benefits (i.e. CalPERS). Savings in FY 2022 is estimated to be similar, but could change depending on what happens with the California economy over the next year. ALTERNATIVES The recommended alternative is to implement the City Council pay freeze for FY 2021 and FY 2022. The alternative is to not implement a City Council pay freeze and move forward with the adjustments noted in Ordinance 99-01. This alternative is not recommended. FISCAL IMPACT/FUNDING SOURCE The fiscal impact of implementing the recommended pay freeze for the Mayor and City Council members is estimated to be approximately $1,250 annually in FY 2021 and FY 2022 for a total savings to the General Fund of approximately $2,500. CONCLUSION The City Council pay freeze is important. It demonstrates that the City Council is willing to forgo future wage increases in an effort to provide savings to the General Fund. Further, while the overall amount of the savings is modest, it supports that all levels of City Hall will be evaluated for budget reductions. Attachments: 1. Resolution for City Council Pay Freeze for FY 2021 and 2022 10.D Packet Pg. 386 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY FREEZING THE SALARIES FOR THE MAYOR AND CITY COUNCIL MEMBERS FOR FISCAL YEARS 2021 AND 2022 WHEREAS, City of Gilroy Ordinance No. 99-01 establishes the salaries of the Mayor and City Council Members; and WHEREAS, City Gilroy Ordinance No. 99-01 provides that adjustments to the salaries for the Mayor and Council Members shall occur each fiscal year based on the San Francisco/Oakland Consumer Price Index (CPI); and WHEREAS, the City of Gilroy has a structural General Fund budget deficit beginning in fiscal year 2021; and WHEREAS, the City Council wants to implement a City Council pay freeze for fiscal years 2021 and 2022 to provide savings to the General Fund. NOW, THEREFORE, BE IT RESOLVED that the salaries effective July 1, 2019 for the Mayor and City Council Members shall be frozen for fiscal years 2021 and 2022 and the CPI adjustment for each year will not be implemented. PASSED AND ADOPTED this 1st day of June, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ____________________________ Roland Velasco, Mayor ATTEST: _________________________ Shawna Freels, City Clerk 10.D.a Packet Pg. 387 Attachment: Resolution for City Council Pay Freeze for FY 2021 and 2022 (2838 : City Council Pay Freeze)