Community Development Department

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DATE: TO: FROM:

March 29, 2019

Mayor and City Council Members Community Development Department

CONSENT CALENDAR Agenda Item No.: 7j CC Mtg.: 04/09/2019

SUBJECT: RESOLUTION NO. 10269 -A RESOLUTION AUTHORIZING

APPLICATION FOR SB 2 PLANNING GRANTS PROGRAM FUNDS FOR IMPROVEMENTS AND TECHNOLOGICAL ENHANCEMENTS TO THE COMMUNITY DEVELOPMENT DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT TO ACCEPT GRANT FUNDS

BACKGROUND/ISSUE

In 20 l 7, Governor Brown signed a 15-bilJ housing package aimed at addressing the state's housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California. In this first year, those collected revenues are used equally to create State-administered Planning Grants Program and to fund State-administered homelessness programs. Based on current population numbers, Folsom can qualify for up to $310,000 in SB 2 Planning Grants Program Funds. The Notice of Funding Availability was released on March 28, 2019. Applications can be submitted anytime through the end of thjs calendar year and determinations will be made on a rolling basis, within approximately 60 days of application submittal.

The purpose of the Planning Grants Program is to provide funding and technical assistance to all local governments in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. The State

identified six Priority Policy Areas (listed below) for which jmisdictions will receive expedited dete1minations. Local governments are not competing against one another for these grant funds. Rather, all local governments are encouraged to identify projects, programs and services that meet at least one of the following grant purposes and priorities.

State Priority Policies

1. Rezone to Permit By-Right

2. Objective Design and Development Standards

3. Specific Plans or Form Based Codes Coupled with CEQA Streamlining 4. Accessory Dwelling Units or Other Innovative Building Strategies 5. Expedited Processing

6. Innovative Housing Finance, Fees or Infrastructure Strategies

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For Folsom, staff identified several potentially qualifying projects ( e.g. vacant land and constraints analysis, zoning map update) for the SB 2 Planning Grants Program for the priority policy of expediting processing (State Priority Policy #5). We discussed merits of each with State agency representatives and refined our project to include near-term, unfunded improvements that can be implemented in relatively short order to expedite the processing of housing projects in the City of Folsom.

The City has two important efforts· underway that set the stage for this proposed grant project. First, to implement the new Folsom 2035 General Plan, the City Council allocated funds ($329,355) and commenced a comprehensive Zoning Code update in February 2019. As outlined in the scope of work, ~thatefforfwill update allowecluse provisions, developmentsmndards;and-permit procedmes to reflect

best practices in keeping with General Plan policies and relevant State laws for a wide range of housing types, mixed-use development, and development in transit-priority areas. Second, the City previously invested over $800,000 to update and upgrade the software system for Finance, Utilities, and Community Development. The Community Development software (TRAKiT) will enable electronic permit processing for the City's community development services (planning, development engineering, building, and code enforcement). The contract was also amended to include Project Dox electronic plan check software to partner with TRAKiT electronic permit processing for streamlined project review. Over the last 14 months, staff has been working with the software companies and information systems to install, configure and test this new software, expected to launch this summer. Our proposed grant project represents a significant opportunity to further streamline our plan submittal process, increase transparency, and improve the customer experience with new development and redevelopment activity i~ Folsom. Specifically, the City of Folsom is requesting a total of $310,000 in SB 2 Planning Grants Program funding for physical improvements to the Community Development customer service counter with new technologies, expanded and enhanced customer terminals, improved web-based platform for zoning information, and a public kiosk for project submittals and access to data and public records. Planned improvements (in partnership with the City's Zoning Code Update and software conversion) will result in a more efficient, convenient, and cost-effective

customer experience.

POLICY /RULE

The State SB 2 Planning Grants Program application requires the applicant's governing body to certify by resolution the approval of the application before submission.

ANALYSIS

The City proposes to construct physical improvements along with technological enhancements to the Community Development Department customer service counter to streamline the plan submittal process, increase transparency, and improve the customer experience. The proposed project includes the following components:

• Removal of walls and doors between the lobby and Community Development Department public counter for an open fioor plan between the lobby, customer service counter, and conesponding employee workspaces.

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• Reconfiguration and expansion of the customer service counter with 2 or 3 additional spaces for a total of 5 or 6 customer counter spaces with computer terminals for electronic submittal, intake processing, data inquiries, plan transmittals, and permit issuance.

• Addition of cashiering tem1inal for new electronic payment options associated with TRAKiT and Project Dox, which include credit card payments and electronic check scanning.

• Addition of new public kiosk with computer terminal and semi-private screening for electronic plan submittal, data inquiries, plan reviews, and record searches.

• Addition of a small conference room space directly connected to the lobby and front counter for impromptu customer meetings and dedicated space for the City's expedited tenant improvement plan check and approval program (also known as Folsom Accelerated Small Tenant Improvement Review or F.A.S.T.I.R). Desired features include conference calling options and wall-mounted smart TV for electronic plan review and video conferencing. • Creation of a welcome kiosk and navigational signage for efficient wayfinding to appropriate

service counter or other service assistance. Desired features of tl1e welcome kiosk would provide options to contact/notify/message staff about scheduled meeting arrival or new request to meet/discuss plans. This welcome kiosk could also include a phone connection for

administrative support and/or direct extension calling to Community Development staff. • Enhancement of security with scanned employee entries into conference rooms and employee

workspace areas. The City also recently installed secw-ity cameras and panic buttons at each of the City's public counters monitored and comlected directly to the Folsom Police Department. • Software platform enhancement and improvement of web-based a~cess to zoning information

as an upgrade to our existing Code Publishing contract. The City received a demo and

preliminary estimates for the software and data conversion of ow- new Zoning Code, which is scheduled for adoption in 2020.

In December 2018, the City contracted with Perkins, Williams & Cotterill Architects to prepare up to

three conceptual design alternatives for physical improvements to the Community Development

Department customer counter, lobby, and corresponding work spaces. AJI three alternatives include the above listed project components. The City has received three construction estimates for all three alternative designs, ranging in price from a low of $230,000 to a high of $291,000. Those construction estimates are for demolition and reconstruction with electrical, built-in furnishings and finishes

(excluding detailed construction drawings and permit fees). The City is requesting SB 2 Planning Grants Program funding of $285,000 for physical improvements and some unfunded technology and equipment associated with streamlining services for the Community Development Department customer counter. The City also met with Code Publishing to discuss the cost of installing the enhanced platform and uploading the City's new Zoning Code Update (scheduled for adoption in 2020) for enhanced web-based access to Folsom's zoning information. The preliminary cost estimate is $25,000, which we've included in this project request for a total SB 2 Planning Grants Program

funding request of $310,000.

Implementation of these project improvements with grant funding will expand the impact of the City's current investments to update and streamline our development processes in general, housing in

particular. Folsom customers will benefit from a more efficient, convenient, and cost-effective process from planning application through final building inspection and occupancy or operation.

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FISCAL IMP ACT

The total SB 2 Planning Grants Program funding request is $310,000. This grant application does not require a financial match. However, the City Council previously allocated funding to the software, configuration, equipment and maintenance associated with TRAKiT electronic permitting system and to the comprehensive update to the Zoning Code, which will set the stage and partner well with the proposed project. Improvements would be funded initially through General Fund and reimbursed by the SB 2 Planning Grants Program funds in accordance with the reimbursement schedule.

ENVIRONMENTAL REVIEW

The grant application does not qualify as a project, therefore no California Environmental Quality Act (CEQA) analysis has been prepared. Further, implementation of the project does not meet the CEQA definition of a project and as a result, no further environmental analysis would be required.

ATTACHMENTS

1. Resolution No. 10269 - A Resolution Authorizing Application for SB 2 Planning Grants Program Funds for Improvements and Technological Enhancements to the Community Development Department and Authorizing the City Manager to Execute an Agreement to Accept Grant Funds.

RECOMMENDATION /CITY COUNCIL ACTION

Move to Approve Resolution No. 10269 - A Resolution Authorizing Application for SB 2 Planning Grants Program Funds for Improvements and Technological Enhancements to the Community Development Department and Authorizing the City Manager to Execute an Agreement to Accept Grant Funds.

Submitted,

=:JiJtl---

·

PAM JOHNS

Community Development Director

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RESOLUTION NO. 10269 \

A RESOLUTION AUTHORIZING APPLICATION FOR SB 2 PLANNING GRANTS

PROGRAM FUNDS FOR IMPROVEMENTS AND TECHNOLOGICAL ENHANCEMENTS

TO THE COMMUNITY DEVELOPMENT DEPARTMENT AND AUTHORIZING THE CITY

MANAGER TO EXECUTE AN AGREEMENT TO ACCEPT GRANT FUNDS WHEREAS, the State of California, Department of Housing and Community Development (Department) has issued a Notice of Funding Availability (NOFA) dated March 28, 2019, for its Planning Grants Program (PGP); and

WHEREAS, the City of Folsom desires to apply for a SB 2 Planning Grants Program to accelerate the production of housing and will submit a 2019 PGP grant application as described in the

NOF A and SB 2 Planning Grants Program Guidelines released by the Department for the Planning

Grants Program; and

WHEREAS, the Department is authorized to provide up to $1.2 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to cities and counties (as described in the Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)) related to the Planning Grants Program; and

WHEREAS, the City has invested and allocated over a million dollars to implement the new Folsom 2035 General Plan with a comprehensive update to the Zoning Code and purchase of software, equipment and training for electronic permit processing and plan check services that, when

implemented in 20] 9 and 2020, will simplify development regulations and expedite plan reviews and permits throughout the City; and

WHEREAS, the City has identified additional unfunded opportunities to further streamline our

plan submittal process, increase transparency, and improve the customer experience at the Community Development service counter in keeping with the SB 2 Planning Grants Program priority policy of expedited processing.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom: I. Authorizes and directs the City Manager to apply for and submit to the Department the

2019 Planning Grants Program application released March 28, 2019 in the amount of $310,000.

2. Authorizes the City Manager to receive the approved Planning Grants Program and enter into, execute, and deliver a State of California Standard Agreement (Standard Agreement) for the amount of $3 I 0,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the Planning Grants Program, the City obligations related thereto, and all amendments thereto (collectively, the "PCP Grants Documents").

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3. Recognizes that the City shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 Planning Grants Program Guidelines, and any applicable

PGP guidelines published by the Department. Funds are to be used for allowable : . /. ·,.

expenditures as specifically identified in the Standard Agreement. Any and all·activities funded, information provided, and timelines represented in the application will be

enforceable through the executed Standard Agreement. The City hereby agrees to use the funds for eligible uses in the manner presented in the application as approved by the City Manager and in accordance with the Planning Grants NOF A, the Planning Grants Program Guidelines, and the 2019 Planning Grants Program Application.

- 4 .- tto:tlrotize-s-the C:i ry-Mmrnger ro-execure-the-City-ufFrrlsom-Plamrin-g-6rants- Pro-gram-application, the PGP Grant Documents, and any amendments thereto, on behalf of the City as required by the Department for receipt of the PGP Grant.

CEOA FINDINGS

A. IN ACCORDANCE WITH CEQA GUIDELINES SECTION 15061(6)(3), APPLICATION

AND ACCEPTANCE OF THE SB 2 PLANNING GRANTS PROGRAM FROM

CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT IS NOT

A PROJECT UNDER CEQA AND IS EXEMPT FROM ENVIRONMENTAL REVIEW.

PASSED AND ADOPTED on this 9111 _{day of April 2019, by the following roll-call vote:}

AYES: NOES: ABSENT: ABSTAIN: ATTEST: Council Member(s) Council Member( s) Council Member(s) Council Member(s)

Christa Freemantle, CITY CLERK

Resolution No. 10269

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