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06-02-2020 - AGENDA ITEM 05 CONSIDERATION OF RESOLUTION 2020-44 AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDSAGENDA ITEM NO.5 xft AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: June 2, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF RESOLUTION 2020-44 AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS RECOMMENDATION: It is recommended that the City Council adopt Resolution 2020-44 as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS BACKGROUND: Increasing the availability of affordable homes statewide is critical to improving the quality of life of all Californians. In the 2019-20 Budget Act, Governor Newsom allocated $250 million for all regions, cities, and counties to do their part by prioritizing planning activities that accelerate housing production to meet identified needs of every community. With this allocation, the Department of Housing and Community Development (HCD) established the Local Early Action Planning Grant Program (LEAP) with $119 million earmarked for cities and counties. LEAP provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Assessment (RHNA) much like the S132 Planning Grants. Eligible activities must be related to housing planning and facilitate the streamlining and acceleration of housing production. DISCUSSION: Staff is seeking approval to submit a grant application to the California Department of Housing and Community Development under the "Local Early Action Planning" program. If awarded, the LEAP grant will be used to complete a comprehensive re -write of the City's Zoning Ordinance. The last comprehensive update was completed in 1977. A major goal of the new Code will be increased housing production by allowing housing which meets prescribed standards to be permitted "by right." Additionally, the Code will provide supportive services for the new residents. Through the consolidation of commercial zoning categories (e.g. retail, service -commercial, food establishment, and alcohol related, etc.) commercial uses will be more easily established and interchangeable. Streamlining and consolidating uses will allow tenants and property owners to respond to the changing economy and changing consumer preferences more readily. This consolidation will increase economic development activity within the City. The new Code will be a "Development Code" that combines zoning standards and subdivision standards into a single document. Extensive community input will be required as the Development Code is being drafted. City staff and the selected consultant team will lead the community through an extensive visioning process that engages the youth, seniors, and people with disabilities. Drafting and adopting the new Code will be accomplished over a 24-month period and is broken-down into seven major tasks: 1. Project Initiation 2. Community Engagement 3. Technical Analysis and Evaluation 4. Draft Development Code 5. General Plan Analysis 6. Environmental Review 7. Public Review and Code Adoption The new Development Code will reflect the community's vision for the future and be responsive to evolving market needs and consumer preferences. Drafting a new Code is timely. While it is unclear how the COVID-19 pandemic will affect housing, commercial and office development, it is clear that the City's Zoning Code must be retooled to address the "new normal." Staff believes the new Code will increase housing production by removing barriers to housing production and simultaneously increase commercial economic development activity. LEGAL REVIEW: The City Attorney's Office previously reviewed the State's "Standard Agreement" as part of the SB 2 grant. The State requires all entities receiving funding to execute the same Agreement. OPTIONS: Options available to the City Council include: 1. Approve submittal of the grant application. 2. Provide alternative direction. ENVIRONMENTAL REVIEW: This project is exempt from the California Environmental Quality Act (CEQA) and the CEQA Guidelines under Section 15060 (c)(2) "the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment." Prepared by: Mark Persico, Assistant City Manager Fiscal Impact FISCAL IMPACT: The grant funds must be used for planning projects that "facilitate the acceleration of housing production." The maximum amount of the grant is $500,000 based upon our population and there is no required match for the funds. The funding will be utilized to hire a consultant team to draft the new Development Code. If the grant is awarded, a subsequent budget amendment will be processed. Attachments Attachment No. 1 - Resolution 2020-44 (Authorization to Submit LEAP Grant Application) CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Enhance the City Image and Effectiveness RESOLUTION NO.2020-44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA 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 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 West Covina, California desires to submit a LEAP grant application package ("Application"), on the forms provided by the Department, 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 has issued a NOFA and Application on January 27, 2020 in the amount of $119,040,000 for assistance to all California Jurisdictions; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ("APPLICANT") DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to apply for and submit to the Department the Application package; SECTION 2. In connection with the LEAP grant, if the Application is approved by the Department, the City Manager of the City of West Covina 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 $500,000, 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 SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the NOFA, andthe Standard Agreement provided bythe Department afterapproval. 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 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. SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED ANDADOPTED this 2"dday ofJune, 2020 Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-44 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21d day of June, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk