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HomeMy WebLinkAboutAgenda Report - November 17, 2021 C-15AGENDA ITEM CIO015 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Regional Early Action Planning (REAP) Cooperative Agreement with San Joaquin Council of Governments, Accept Grant Funding in the Amount of $132,470 and Authorize Necessary Revenue and Expenditure Appropriations MEETING DATE: November 17, 2021 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Regional Early Action Planning (REAP) Cooperative Agreement with San Joaquin Council of Governments, accept grant funding in the amount of $132,470, and authorize revenue and expenditure appropriations BACKGROUND INFORMATION: On June 2, 2021, City Council adopted Resolution No. 2021-158 approving the participation and allocation of funding for the Regional Early Action Planning (REAP) grant funds award to San Joaquin Council of Governments (SJCOG) on behalf of member agencies, including the City of Lodi. This Resolution also authorized the City of Lodi Community Development Department and the Economic Development Davison to submit a concept proposal for REAP grant funds to support the production of affordable housing and increase opportunities for low to moderate income households to access quality affordable housing, including homeownership. The requested resolution follows Resolution 2021-158 and is necessary to execute the REAP cooperative agreement and its administration, accept grant funds, and authorizes revenue and expenditure appropriations. FISCAL IMPACT: This grant fully funds the planning activities. No local match is required. FUNDING AVAILABLE: Revenue appropriation account code is 35500000.56007 and expenditure appropriation is account code 35587000.72450. Andrew Keys Andrew Keys Deputy City Manager/Internal Services Director BA Trupovnieks Astrida Trupovnieks Business Development Manager APPROVED: Steve Schwabauer Stephen Schwabauer, City Manager C-22-004 Page 1 of 54 City of Lodi REAP Funds C-22-004 REGIONAL EARLY ACTION PLANNING ("REAP") FUNDS COOPERATIVE AGREEMENT (C-22-004) FOR THE CITY OF LODI This COOPERATIVE AGREEMENT (hereinafter "Agreement"), effective as of AUGUST 13, 2021 is made and entered into by and between SAN JOAQUIN COUNCIL OF GOVERNMENTS a Joint Powers Authority established under California Government Code section 6500 et seq. (hereinafter "SJCOG") and, CITY OF LODI, a municipal corporation (hereinafter "Sponsor"); RECITALS WHEREAS, the California Department of Housing and Community Development (HCD) has provided funds for the Regional Early Action Planning Program; and WHEREAS, the provided funds by HCD have been made available through the San Joaquin Valley REAP Committee on behalf of Fresno Council of Governments, Kern Council of Governments, Kings County Association of Governments, Madera County Transportation Commission, Merced County Association of Governments, Stanislaus Council of Governments, Tulare County Association of Governments, and San Joaquin Council of Governments (SJCOG); and WHEREAS, the San Joaquin Valley REAP Committee signed a Memorandum of Understanding (MOU) to facilitate regional sub -allocations; and WHEREAS, SJCOG has been delegated the responsibility for administration of the grant allocation, establishing necessary procedures; and WHEREAS, HCD awarded the allocation to SJCOG on behalf of the region and San Joaquin County Member Agencies (City of Escalon, City of Lathrop, City of Lodi, City of Manteca, City of Ripon, City of Stockton, City of Tracy, and County of San Joaquin); and WHEREAS, SJCOG and participating member agencies, will conduct planning activities that will accelerate housing production and housing -related initiatives. NOW, THEREFORE, in consideration of the mutual promises and undertakings herein made and the mutual benefits to be derived therefrom, the parties hereto agree as follows: This Agreement is fully comprised of these terms and the attached exhibits which are incorporated by herein by reference. The exhibits attached to this Agreement are: Exhibit A- Scope of Work Exhibit B- Signed Resolution Exhibit C- Final REAP Guidelines C-22-004 Page 2 of 54 City of Lodi REAP Funds C-22-004 AGREEMENT 1.1 Project Description. The project description, scope of work, delivery schedule, and the anticipated timing for release of REAP funds are specified in Exhibit "A" and incorporated herein by this reference. 1.2 Change In Project Scope. A change in the project scope as described by Exhibit "A" may not be implemented until it has been approved by SJCOG. 1.3 Eligible Reimbursement Costs. Eligible reimbursement costs shall be those costs as defined by the statutes, rules and regulations of the State of California Housing and Community Development Department. 1.4. Use of Funds. Sponsor shall use REAP funds consistent with the Project Scope of Work, as described in Exhibit "A" or approved by SJCOG pursuant to Section 1.2. 1.5 Timely Use of Funds.. REAP funds are one-time housing planning funds with an expenditure deadline of December 31, 2023. SJCOG staff will monitor expenditures on an annual basis to minimize the risk of losing funds that are intended to benefit the region. If expenditures are behind schedule, SJCOG staff may reach out to Sponsor to determine a schedule to expend funds or whether it may be appropriate to reprogram funds. To meet the state expenditure deadline and submit required reporting and invoicing, all REAP funds shall be expended by August 31, 2023. 1.6 Completion of Project. Sponsor shall be responsible for the timely completion of the Project and to provide management of consultant and contractor activities, including responsibility for schedule, budget and oversight of the services, consistent with the scope of work. The Cooperative Agreement end date is December 31, 2023. 1.7 invoices and Progress Reports. Sponsor shall submit an invoice and progress report on a quarterly basis for eligible expenses incurred for activities conducted over the Cooperative Agreement period. C-22-004 Page 3 of 54 City of Lodi REAP Funds C-22-004 IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the day and year first written above. CITY OF LODI SAN JOAQUIN COUNCIL OF GOVERNMENTS BY: BY: NAME: Stephen Schwabauer, City Manager NAME: Diane Nguyen, DATE: ATTEST BY: NAME: Jennifer Cusmir, City Clerk DATE: APPR VED AS TO FORM anice D. Magdich, City Attorney DATE: 10(rk---oa4 Executive Director DATE: ATTEST BY: NAME: Steve Dial, Deputy Executive Director/CFO DATE: EXHIBITS A -C Please see attachment. C-22-004 Page 4 of 54 City of Lodi REAP Funds C-22-004 EXHIBIT A: SCOPE OF WORK CITY COUNCIL ALAN NAKANISHI, Mayor MARK CHANDLER, Mayor Pro Tempore MIKEY HOTHI SHAK KHAN DOUG KUEHNE June 24, 2021 CITY OF LODI 2015 "Wine Region of the Year" Community Development Department CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6714 — Building (209) 333-6711 — Planning & Neighborhood Services FAX (209) 333-6842 www.lodi gov To: San Joaquin Council of Governments 555 East Weber Avenue Stockton, CA 95202 From: City of Lodi, Community Development Department John R. Della Monica Jr., Community Development Director 221 W. Pine Street Lodi, CA 95240 RE: CONCEPT LETTER INTENDING TO FULFILL REAP REQUIREMENTS C-22-004 Page 5 of 54 STEPHEN SCHWABAUER City Manager JENNIFER CUSMIR City Clerk JANICE D. MAGDICH City Attorney The City of Lodi respectfully submits its REAP program allocation concept letter and resolution approved by the City Council on June 2, 2021. The implementation of this concept represents in many ways a new order of business in helping meet the housing needs of a sizeable portion of Lodi residents. Recent data shows that over 36 percent of Lodi residents spend greater than 30 percent of income on housing. With these and other measures of housing need in mind, we are enthusiastic to begin our quality affordable housing initiative to accelerate affordable housing production. This funding opportunity will help in blending the new with the existing housing stock to achieve cohesive neighborhoods and Interaction among residents and neighborhood oriented services, including recreation, transportation access, walkability, and shopping. We look forward to hearing from you following your review of our submission below. Section 1: Description and outline of tasks This concept letter is intended to fulfill the Regional Early Action Planning (REAP) requirement though identifying feasible approaches to increase the housing supply and accelerate the production of quality affordable housing in Lodi. This includes homeownership in the Opportunity Zone through shared equity approaches and the development of affordability ordinances to meet local housing objectives. Should only the initial allocation be awarded, shared equity homeownership feasibility study will be the first priority for completion under the REAP grant resource and the affordable housing ordinance and planning feasibility study will be secondary. . C-22-004 Page 6 of 54 Description: Priority 1- Shared Equity Homeownership Feasibility Study Shared equity homeownership offers an alternative option to renting and traditional homeownership. The term can refer to an array of homeownership typologies that create long-term, affordable homeownership opportunities by imposing restrictions on the resale of housing units. Typically, a nonprofit provides a subsidy to lower the purchase price of a home making it affordable to a lower-income buyer. In return for the subsidy, the buyer agrees to share any home price appreciation at the time of resale with the entity providing the subsidy, which helps preserve affordability for subsequent homebuyer. According to Rick Jacobus, Cornerstone Partnership Initiative and NCB Capital Impact, and Jeffrey Lubell, Center for Housing Policy, there are two basic approaches; shared appreciation loans and subsidy retention program. Programs under these approaches include second mortgages by a public or nonprofit that buyers repay in full at the time of resale along with a percentage of home value appreciation, community land trusts, deed -restricted housing and limited equity housing cooperatives. A third approach to shared equity homeownership is beginning to capture attention although it has been less tested. This approach is a new method of land assemblage and land ownership known as land readjustment implemented in other parts of the world. While implementation has variations, broadly defined, property owners generally transfer ownership rights to an entity for redevelopment, the entity rezones, and upgrades and repurposes the land according to a masterplan approved by the original property owners and importantly, clears the mortgages. A land trust or land cooperative is formed, and the property owner's ownership share depends upon the equity built up in that owner's individual property. Outline of Tasks: Priority 1- Shared Equity Homeownership Feasibility Study In this study, preconditions for shared equity homeownership within the City of Lodi's Opportunity Zone will be examined. A preliminary market study of valuation and an analvsis of the investment opportunity for all parties will be previewed. A consultant with demonstrated experience in public and private real estate development sectors, subsidized affordable housing, and redevelopment of residential and business districts will be selected to bring approaches to shared equity homeownership that balances economic, policy and community perspectives specific to Lodi and its opportunity zone. The study will detail the manner by which current property values, and individual home equity positions may yield a continued return and greater property values, and while sustaining affordability and creating wealth for individual owners and their heirs. The study will describe best practices for community engagement, which have facilitated the shared equity approach. Finally, the study will identify geographic areas within the opportunity zone that maximizes the development opportunity in terms of housing delivery, and blends building massing with appropriate scale and proportion to neighboring homes and businesses. This will be displayed of imagery of a future development. Mixed-use retail opportunities which support residential will be a part of the shared equity land assemblage analysis. Description: Priority 2 - Affordable Housing Ordinance and Planning Feasibility Study The City of Lodi currently has no 'affordability' ordinances in place, requiring participation in the C-22-004 Page 7 of 54 development of affordable housing stock, meeting the current legislation. We are now preparing to take the steps necessary towards the establishment of ordinances dedicated to meeting housing goals found in our Annual Action Plan. These goals focus on a fair share of affordable housing, to a wider cross-section of our community's population, as directed by the Department of Housing and Community Development (HCD). The City of Lodi is looking at a blended approach to meet our local housing objectives. Due to the unique range of residential, commercial and industrial developments within the City, determining the best application to fit project specifics will be the focus of the feasibility study. Established approaches designed to meet the Federal and State mandates are varied and are briefly outlined as follows: Development Agreements: As established through an annexation process, a Planned Unit Development (PD) platform allows by design, the ability to negotiate on land use designations, zoning overlay and development standards, offering the City the greatest opportunity to achieve affordability -housing goals. Considerations of affordable housing for rent and/or for sale can be realized much faster through this process but require management to maintain the 'affordability' mandates tied to deed restricted development. Inclusionary Housing: An inclusionary housing program would develop local policies that tap the economic gains from rising real estate values to create affordable housing for lower income families. An inclusionary housing program generally requires developers to sell or rent 10 to 30 percent of new residential units to lower-income residents. Many inclusionary housing programs partially offset the cost of providing affordable units by offering developers one or more incentives such as tax abatements, parking reductions, or the right to build at higher densities. Most programs recognize that it is not always feasible to include affordable on- site units within market -rate projects. In some cases, developers can choose among alternatives, such as payment of an in -lieu fee or provision of affordable off-site units in another project. In -lieu of Fees: In -lieu of fees are deposited in a local affordable -housing trust fund, which through accumulation facilitates the construction of affordable housing stock within the community. The greatest impediment to goal of achieving affordable housing numbers is the time needed to accumulate adequate funding that support construction. Outline of Tasks: Priority 2 - Affordable Housing Ordinance and Planning Feasibility Study The affordable housing feasibility study would analyze the relationship, between new market rate rental housing development and the need for additional affordable housing in the City of Lodi. This would be done using the industry standard approach of estimating the new employment generated by the new development due to new household spending, then by estimating the likely combined household incomes associated with new worker households. The study would also evaluate: The cost of providing new affordable housing units and translate those costs to represent the maximum per square foot fee that would need to be assessed on new residential, commercial, industrial, etc. development to adequately offset induced demand for affordable housing. C-22-004 Page 8 of 54 2. Based on this nexus, the study would then evaluate the impact of these "maximum justifiable" fees on the financial feasibility of new development. 3. The study would outline recommendation for: a. Development of an inclusionary housing policy and fee schedule that are intended to ensure that the ordinance is justifiable and legally defensible b. that impact fees (also Known as in -lieu fees) are set at levels that adequately account for the cost of providing affordable housing and encourage on-site production of affordable housing units, while not creating undue constraints to the financial viability of new market rate housing developments Section 2: Priority tasks fall under The tasks within this concept letter fall under the Planning and Coordination to Develop a Regional Project Pipeline. The concept letter outlines the use of grant funds to perform feasibility studies to determine the most achievable approach to quality affordable housing, determine the most efficient locations to site housing, and to recommend local planning, permitting, and land use policies to accelerate housing production. The studies will also perform infrastructure planning to support new housing as needed. These tasks all fall under the eligible activities as outlined below and in the Regional Early Action Planning (REAP) Guidelines. Regional Project Pipeline Eligible Activities 1. Accommodate the development of housing and infrastructure that accelerate housing production. a. Establishing pro -housing policies. 2. Activities must demonstrate a nexus to increasing housing and accelerating housing production. 3. Outreach, education, priority setting, and other related activities in consultation with SJCOG and HCD to carry out the overall program consistent with statutory objectives. 4. In consultation with local jurisdictions and/or HCD, develop and/or conduct a planning study roluted to roninnul tho urrnlerntinn of kniiicina nrnrhirtinn Section 3: How much funds will be used? First Allocation: $44,144 W Priority 1: Shared Equity Homeownership Feasibility Study Final Allocation (Pending): $88,326 e Priority 2: Affordable Housing Ordinance and Planning Feasibility Study Section 4: Schedule of tasks Expenditure deadline: December 31, 2023 December 1, 2021: Approximately 1/3 of allocated funds expended o Projected Schedule: „ September 1, 2021 — Contracts with consultants awarded and executed. Anticipate full award amounts encumbered. October -November 2021: C-22-004 Page 9 of 54 ■ Preconditions for shared equity homeownership within the City of Lodi's Opportunity Zone will be examined. December 1, 2021— + October 2021 and November 2021 Invoices received to demonstrate 1/3 d of allocated funds expended. * December 1, 2022: Approximately 2/3 of allocated funds expended o Projected Schedule: December 1, 2021 to November 30, 2022: • A preliminary market study of valuation and an analysis of the investment opportunity for all parties will be previewed. e Determine the cost of providing new affordable housing units and translate those costs to represent the maximum per square foot fee that would need to be assessed on new residential, commercial, industrial, etc. development, to adequately offset induced demand for affordable housing. 0 Evaluate the impact of identified "maximum justifiable" fees on the financial feasibility of new development. December 1, 2022 — • December 2021 — November 2022 invoices received to demonstrate a minimum of 2/3rds of allocated funds are expended. June 1, 2023: Approximately 85% of allocated funds expended o Projected Schedule December 1, 2022 — May 31, 2023 Final draft of Shared Equity Housing Feasibility Study will describe best practices for community engagement, which have facilitated the shared equity approach and identify geographic areas within the opportunity zone that maximizes the development opportunity in terms of housing delivery, and blends building massing with appropriate scale and proportion to neighboring homes and businesses. • Final draft of Affordable Housing Ordinance and Planning Feasibility Study demonstrating a recommendation for: o Development of an inclusionary housing policy and fee schedule that are intended to ensure that the ordinance is justifiable and legally defensible and; o In -lieu of fees are set at levels that adequately account for the cost of providing affordable housing and encourage on-site production of affordable housing units, while not creating undue constraints to the financial viability of new market rate housing developments. • June 1, 2023 — o December 2022 - May 2023 invoices received to demonstrate a minimum of 85% of allocated funds are expended. • December 31, 2023 all allocated funds expended o Project would be scheduled for completion no later than September 1, 2023 to ensure final Invoices received and processed no later than November 2023 to guarantee all allocated funds are expended by expenditure deadline of December 31, 2023. C-22-004 Page 10 of 54 Section 5: Contact Information Project Manager: Astrida Trupovnieks, Economic Development Manager Email: atrupooy_nieks@lodi,gov Phone: 209-333-6874 Lead Staff: Jennifer Rhyne, Neighborhood Services Manager Email: Lhyne@ladi,gov Phone: 209-269-4519 Respectfully submitted, V JohnDella Monica Jr. Community Development Director, City of Lodi Email: idellamonica@lodi.gov Phone: 209-269-4526 EXHIBIT B: SIGNED RESOLUTION RESOLUTION NO, 2021-158 C-22-004 Page 11 of 54 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE PARTICIPATION AND ALLOCATION OF FUNDING FOR THE REGIONAL EARLY ACTION PLANNING (REAP) GRANT FUNDS AWARDED TO SAN JOAQUIN COUNCIL OF GOVERNMENTS (SJCOG) ON BEHALF OF THE SAN JOAQUIN VALLEY REGIONAL EARLY ACTION PLANNING COMMITTEE MEMBER AGENCIES; AND AUTHORIZING ECONOMIC DEVELOPMENT AND COMMUNITY DEVELOPMENT TO SUBMIT A CONCEPT PROPOSAL TO REQUEST REAP GRANT FUNDS AS STIPULATED IN TABLE 1 OF THE SJCOG REAP GRANT TO SUPPORT THE PRODUCTION OF AFFORDABLE HOUSING AND INCREASE OPPORTUNITIES FOR LOW TO MODERATE INCOME HOUSEHOLDS TO ACCESS QUALITY AFFORDABLE HOUSING, INCLUDING HOMEOWNERSHIP WHEREAS, the Housing and Community Department (HCD) have provided funds for Regional Early Action Planning (REAP); and WHEREAS, the provided funds by HCD have been made available through the San Joaquin Valley REAP Committee on behalf of Fresno Council of Governments, Kern Council of Governments, Kings County Association of Governments, Madera County Transportation Commission, Merced County Association of Governments, Stanislaus Council of Governments, Tulare County Association of Governments, and San Joaquin Council of Governments (SJCOG); and WHEREAS, the San Joaquin Valley REAP Committee signed a Memorandum of Understanding (MOU) to facilitate the regional sub -allocations of grant funds; and WHEREAS, SJCOG has been delegated the responsibility for the administration of the grant allocation and establishing necessary procedures; and WHEREAS, HCD awarded the allocation to SJCOG on behalf of San Joaquin County Member Agencies (City of Escalon, City of Lathrop, City of Lodi, City of Manteca, City of Ripon, City of Stockton, City of Tracy, and County of San Joaquin); and WHEREAS, SJCOG and participating member agencies will conduct planning activities that will accelerate housing production and housing -relative initiatives; and WHEREAS, the technical assistance provided by the participating San Joaquin Valley Metropolitan Planning Organizations (MPOs) represents staffing for the program that is reimbursable by the grant; and WHEREAS, the SJCOG Board and staff developed program guidelines and eligible activities to plan and accelerate affordable housing production in San Joaquin County, and has allocated $44,144 to the City of Lodi in initial program funding with a maximum funding opportunity of $132,470, pending final allocation approval from HCD as stipulated in Table 1 of the SJCOG REAP Grant guidelines; and WHEREAS, income and the housing affordability index data reflected in Lodi's Development Prospectus indicates that while residents of the Opportunity Zone in Lodi are able to afford a home of a median average sales price within the zone, the supply of quality affordable homeownership opportunities is insufficient; and C-22-004 Page 12 of 54 WHEREAS, the initial sub -allocation of $44,144 will fund a feasibility study to identify an achievable approach to the provision of affordable housing including homeownership, sustaining affordability, identifying the most efficient locations, and identifying local planning and land use processes necessary to support new housing; and WHEREAS, any secondary allocation as stipulated in Table 1 of the SJCOG REAP guidelines will fund a study to identify development opportunities to increase affordable housing stock, such as development agreements, best practices in permitting and land use, inclusionary housing, and in -lieu of fees; and WHEREAS, these processes are eligible housing activities for REAP funding. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the following actions: 1. Staff to conduct activities consistent with REAP grant requirements; and 2. Commits to providing documentation of work completed and other deliverables consistent with REAP grant requirements; and 3. Total invoicing shall not exceed the allotted share as stipulated in Table 1 of SJCOG REAP Grant Guidelines. BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize Economic Development and Community Development staff to submit a concept paper to request REAP Grant funds as stipulated in Table 1 of the SJCOG REAP Grant guidelines to support the production of affordable housing and increase opportunities for families and individuals to access quality affordable housing, including homeownership, in the City of Lodi, as well as in the Opportunity Zone Dated: June 2, 2021 ------------------------------------------------------------ ------------------------------------------------------------ I hereby certify that Resolution No. 2021-158 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 2, 2021 by the following votes: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None JENNIFER USMIR City Clerk 2021-158 �Lr EGIONAL EARLY ACTION PLANNIN (REAP) GUIDELINES t r RE 'ice ,,�•,� ; i � I I i f i C-22-004 Page 14 of 54 Table of Contents Background.......................................................................................................................................... 3 Purpose...............................................................................................................,,.................................4 Development of a Regional Housing Trust Fund..........................................................................4 Streamlining the Development Process.........................................................................................5 Planning and Coordination to Develop a Regional Project Pipeline...........................,:.::.::,....5 Supporting Local Jurisdictions Impacted by COVID-19..............................................................5 EligibleActivities..................................................................................................................................5 Regional Housing Activities (Up to 35% of initial REAP allocation or $300,000) ........................5 Local Jurisdiction Housing Activities (Up to 65% of initial REAP allocation or $545,097, distributedby formula)...................................................................................................................... 7 IneligibleActivities...........................................................................................:...................................8 Local Grant Timing and Process........................................................................................................9 Shortlisted Consultants Available to Local Jurisdictions—, ........................................................ 10 TAresources......................................................................................................................................10 Timeline...............................................................................................................................................10 C-22-004 Page 15 of 54 REAP Guidelines. INITIAL REAP ALLOCATION: $845,097 TOTAL REAP ALLOCATION: $2,404,628 (estimated) These guidelines outline how SJCOG proposes to utilize its allocation of funds from the Regional Early Action Planning (REAP) program. The guidelines outline regional and local planning activities that are eligible for funding and that help to advance SJCOG Regional Housing Priorities, as adopted by the policy board in September of 2020. Ultimately, REAP funds should be used to plan and accelerate housing production throughout the region, specifically more infill housing, more housing product choices, and to better leverage future funding opportunities. Background The State of California Department of Housing and Community Development (HCD) has made available $125,000,000 in local government planning support grants to regional entities and working groups. The San Joaquin Valley Regional Early Action Planning Committee for Housing (Committee), comprised of the eight Regional Transportation Planning Agencies (RTPAs), is one of the working groups identified in statute. On June 26, 2020, the Committee approved submission of an application for initial grant funding to HCD. On August 14, 2020, HCD approved the application and an allocation of $10,218,830.75 in grant funds to the members through Fresno COG, the fiscal agent on behalf of the Committee. The member agencies comprising the Committee agreed to allocate the Initial Grant as follows: ■ Fresno COG will retain $5,475,000 to lead the preparation of a comprehensive San Joaquin Valley housing report and policy recommendations for implementation, conduct regional planning, coordination, and technical assistance, and grant administration • Fresno COG will distribute the remaining $4,743,830 of the Initial Grant directly to each member agency in proportion to each member's relative population Accordingly, SJCOG's initial allocation of REAP funds will be in the amount of $845,097. Pending HCD approval, a second and final round of funding allocations is expected in Spring 2021 and is anticipated to make additional REAP funds available to the SJCOG C-22-004 Page 16 of 54 region in the approximate amount of $1,559,531. With the second round of REAP funding, SJCOG intends to use the same allocation formula applied to the initial round of funding (Table 1). The Committee has recommended that each MPO receiving its share of the Initial Funding Application allocate funds accordingly: 1. Allocate funds to its RHNA (regional housing needs allocation) process. 2. Sub -allocate funds to its County and Cities. Furthermore, according to HCD guidelines, a council of governments that receives an allocation of REAP funds shall establish priorities and use those monies consistent with priorities. Funds must be used for housing planning activities and demonstrate a nexus to increasing housing planning and accelerating housing production. With direction and guidance from the Board, SJCOG staff developed program guidelines and budget allocations in accordance with Committee recommendations above and adopted SJCOG Board priorities for use of REAP funds by SJCOG and its member agencies. SJCOG Regional Housing Priorities are outlined in the Purpose section of the document. Purpose In September of 2020, the SJCOG Board adopted Regional Housing Priorities. The priorities are a mix of strategies that can be implemented regionally or locally to plan and accelerate housing production. REAP funds will be used to advance SJCOG Regional Housing Priorities. Development of a Regional Housing Trust Fund Funding for affordable housing has significantly declined since 2007 making it extremely difficult to build. Affordable housing developers in the region have consistently expressed the need to enhance and expand local programs to close the gap in financing projects and provide much needed leverage to compete for other funds. A housing trust fund can be established to support the preservation and production of affordable housing and increase opportunities for families and individuals to access decent affordable homes. While ineligible to seed a housing trust fund, REAP funds may be used to develop the framework for a housing trust fund which may entail a rigorous planning process to define the parameters of the program, including goals, administration, fund distribution, as well as funding sources. Additionally, housing trust funds are distinct funds established by city, county or state governments that receive on-going dedicated sources of public C-22-004 Page 17 of 54 funding to support the preservation and production of affordable housing and increase opportunities for families and individuals to access decent affordable homes. Streamlining the Development Process HCD has emphasized the need for improving development processes through streamlining as an important strategy for reducing the cost of development. While each jurisdiction in the region may be at varying stages of identifying and implementing streamlining in their own departments, REAP funds may be used to support these activities. These may include the preparation of Specific Plans with an accompanying Environmental Impact Report, objective design and/or development standards to comply with SB 35 and provide more certainty for applicants, and other strategies intended to reduce the time for application approval. Planning and Coordination to Develop a Regional Project Pipeline In regional transportation planning, a list of projects is developed with the help of various stakeholders in order to coordinate and facilitate the process of funding each project through planning, environmental review, design and engineering, and finally, construction. Analogous to transportation planning, programming, and project delivery, the development of an affordable housing project pipeline may facilitate the project finance process. While there are no precedents for this type of activity in staff's research, HCD has identified other best practices which may elevate regional planning and coordination to support housing development. These Refining a Regional Housing Approach to Housing best practices include feasibility studies to determine the most efficient locations to site housing, the development of regional toolkits on a variety of housing -specific topics, establishing consulting benches or circuit rider programs to provide targeted technical assistance in housing policy areas, and developing a regional peer-to-peer learning exchange. Supporting Local Jurisdictions Impacted by COVID-19 In addition to the three priorities outlined here, a fourth priority was identified by SJCOG staff in response to the impact COVID-19 may have on local jurisdiction budgets and staffing levels. To the extent that REAP funds can be used to support the ongoing activities of local jurisdictions regarding the production of housing, this may be an opportunity to offset any negative impacts introduced by COVID-19. Eligible Activities Eligible activities must be related to housing planning and facilitate the acceleration of housing production. Eligible activities conducted by applicants must fall under one or more of the following main categories: C-22-004 Page 18 of 54 Regional Housing Activities (Up to 35% of initial REAP allocation or $300,000) REAP Grant Administration 1. Administrative costs related to the categories listed below. 2. Covering the costs of administering any programs described in Health and Safety Code section 50515.02. a. Recipients shall use no more than 5% of the allocation (s) for costs related to the administration of the activity(ies) for which the allocation(s) were made. Staff and overhead costs directly related to carrying out the eligible activities are 'activity costs' and not 'administrative costs'. Regional Housing Needs Assessment (RHNA) Process Develop an improved methodology for the distribution of the sixth cycle regional housing needs assessment (RHNA), to further the objectives described in subdivision (d) section 65584 of the Government Code. a. Activities under this category must demonstrate a nexus to an improved methodology that furthers the RHNA Objectives. b. Activities under this category may include implementation measures associated with an improved methodology that furthers RHNA Objectives. Regional Housing Trust Fund Establish a regional housing trust fund for affordable housing (e.g. planning activities and processes, guidelines, and charters). a. Inclusion of a feasibility study to determine regional housing trust fund parameters. 2. Establish a regional housing task force. Regional Project Pipeline Accommodate the development of housing and infrastructure that accelerate housing production. a. Establishing pro -housing policies. 2. Activities must demonstrate a nexus to increasing housing and accelerating housing production. 3. Outreach, education, priority setting, and other related activities in consultation with SJCOG and HCD to carry out the overall program consistent with statutory objectives. C-22-004 Page 19 of 54 4. In consultation with local jurisdictions and/or HCD, develop and/or conduct a planning study related to regional housing and/or the acceleration of housing production. Local Jurisdiction Housing Activities (Up to 650 of initial REAP allocation or $545,097, distributed by formula) Streamlining Permit Process 1. Technical assistance in improving housing permitting processes, tracking systems, and planning tools (i.e. pre -stamped ADUs, zoning code updates, recording fees, CEQA, Specific Plans/Master Plans/GP Amendments). o 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. 2. Performing infrastructure planning, including sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents. 3. Performing feasibility studies to determine the most efficient locations to site housing consistent with Government Code sections 65040.1 (State Planning Priorities) and 65080 (regional transportation plans). 4. Revamping local planning processes to speed up housing production. 5. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65862.2 of the Government Code. COVID-19 Relief To the extent that REAP funds can be used to support the ongoing activities of local jurisdictions regarding the production of housing, this may be an opportunity to offset any negative budgetary impacts introduced by COVID-19. 1. Covering the costs of temporary or permanent staff and/or consulting needs associated with eligible activities. 2. Other eligible activities include: a. Update local planning and zoning documents, expediting application processing, and other actions to accelerate additional housing production. 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 C-22-004 Page 20 of 54 standards modifications proposed for significant areas, or development standards proposed for significant areas of a locality, such as corridors, downtown, or priority growth areas. ii. Rezoning to meet requirements pursuant to Government Code Section 65583(c) (1), and other zoning efforts to comply with Housing Element requirements, including Government Code Section 65583(c) (AB 1397, Statues of 2018). iii. Upzoning or other implementation measures to intensify land use patterns in strategic locations, such as close proximity to transit, jobs or other amenities. iv. Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps). v. Establishing pre -approved architectural and site plans. vi. Zoning for by -right supportive housing, pursuant to Gov. Code section 65651 (Chapter 753, Statutes of 2018). vii. Zoning incentives for housing for persons with special needs, including persons with developmental disabilities. b. Establish 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) or Chapter 3 of Divisions 1 of Title 7 of the Government Code, or a housing sustainability district pursuant to Chapter 1 1 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code. Ineligible Activities 1. Activities unrelated to accelerating housing production; 2. Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production (The Department may consider proposals that include activities under (1) and (2) if a significant housing component is also present and the net effect on accelerating housing production is positive. For example, an applicant may propose combining an open -space designation, downzoning, preservation or anti -displacement measures with by - right upzoning that has a significant net gain in housing capacity); 3. Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly C-22-004 Page 21 of 54 impact approval certainty and timing, planned development, or other similarly constraining processes; 4. Capital financing, operation or funding related to programs of individual housing development projects; and 5. Administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed activity or activities. Local Grant Timing and Process In order for a local jurisdiction to receive an allocation of REAP funds, the following is required to be submitted to SJCOG: • Letter outlining concept proposal for funds (Attachment 1). • A signed council resolution (Attachment 2). The purpose of this letter is to provide SJCOG with enough information to determine whether a project meets the requirements of the program. The letter must either be accompanied by a board or council resolution, or be signed by a city manager, county executive, city councilmember, or county supervisor. SJCOG will review and respond to concept proposal letters within 30 days of receipt. Prior to initiating work on REAP funded activities, SJCOG and local jurisdiction shall execute an agreement (Attachment 4). This grant application period is tentatively targeted to begin on a rolling basis in February 2021 through June 2021. Timely Use of Funds REAP funds are one-time housing planning funds made available to the region with an expenditure deadline of December 31, 2023 in statute. SJCOG reserves the right to reprogram funds in order to minimize the risk of losing funds that are intended to benefit the region. To ensure timely use of funds, SJCOG requests that each grantee submit invoicing and progress reports on a quarterly basis. Please see sample REAP reporting form (Attachment 3). Additionally, SJCOG staff will monitor expenditures according to the following schedule: • December 1, 2021: Approximately 1/3 of allocated funds expended • December 1, 2022: Approximately 2/3 of allocated funds expended • June 1, 2023: Approximately 85% of allocated funds expended C-22-004 Page 22 of 54 According to the schedule, SJCOG staff will notify recipients who have not met the expenditure milestone and will require submission of a funding expenditure plan for its remaining allocation within 30 days. SJCOG staff will review the expenditure plan and determine if funds need to be reprogrammed. Shortlisted Consultants Available to Local Jurisdictions The Committee issued a Request for Qualifications to establish a pre -qualified bench of consultants that can perform REAP eligible activities. The consultant bench will primarily support San Joaquin Valleywide housing planning activities, but may also be utilized by local jurisdictions depending on availability and interest: • AECOM • Cascadia Partners • EPS-VRPA • Estolano Advisors • HDR-Calthorpe • Mintier Harnish • Precision Engineering • QK • Raimi and Associates Technical Assistance Resources • Eli ible Activities Best Practices • Contact Information o HCD: Marisa Prasse, Marisa.Prasse@hcd.ca.gov o SJV REAP Committee: Robert Phipps, snoco .oj- o SJCOG: Christine Corrales, corrales@sjcog.org Timeline The timeline of the REAP program includes the following dates: • Final REAP Guidelines Release: February 2021 • Concept letters for local allocations rolling deadline through June 2021 • Final Invoice to SJCOG: September 30, 2023 • Expenditure Deadline: December 31, 2023 • Technical Assistance: Ongoing through December 2023 C-22-004 Page 23 of 54 Table 1: SJCOG REAP Allocation SJCOG REGIONAL HOUSING ACTIVITIES INITIAL ALLOCATION FINAL ALLOCATION*** ESTIMATED TOTAL Funding Amount Estimate Grant Administration 5%1 $ 42,705 $ 78,807 $ 121,512 RHNA Process $ 100,000 $ 250,000 $ 350,000 Regional Housing Trust Fund $ 117,918 $ 120,000 $ 237,918 Regional Planning & Coordination $ 39,377 $ 104,809 $ 144,186 REGIONAL SUBTOTAL $ 300,000 $ 553,616 $ 853.616 LOCAL JURISDICTION FORMULA DISTRIBUTION Population Percentage Jurisdiction Estimate* Share Funding Amount Estimate Stockton 318,522 41% $ 206,992 $ 414,158 $ 621,150 San Joaquin County 156,209 20% $ 101,513 $ 203,111 $ 304,623 Trac. 95,931 12% $ 62,341 $ 124,734 $ 187,075 Manteca 84,800 11% $ 55,107 $ 110,261 $ 165,369 Lodi 67,930 9% $ 44,144 $ 88,326 $ 132,470 Lathrop" 26,833 3% $ 25,000 $ 34,890 $ 59,890 Ripon** 15,930 2% $ 25,000 $ 20,713 $ 45,713 Escalon** 7,478 1 % $ 25,000 $ 9,723 $ 34,723 LOCAL SUBTOTAL 773,632 100% $ 545,097 $ 1,005,915 $ 1,551,012 GRAND TOTAL $ 845,097 $ 1,559,531 $2,404,628 *DOF 2020 Estimates **Initial grant allocation minimum of $25,000 established for small cities. ***Final allocation pending HCD approval. ATTACHMENT 1: SAMPLE REAP CONCEPT LETTER [PLEASE. PUT ON AGENCY LETTERHEAD] DATE CONTACT NAME/TITLE ADDRESS RE: CONCEPT LETTER INTENDING TO FULFILL REAP REQUIREMENTS Section 1: Please describe and outline tasks. Section 2: Please describe which priority above tasks fall under C-22-004 Page 24 of 54 C-22-004 Page 25 of 54 Section 3: Please describe how much funds will used. Section 4: Please provide schedule of tasks. Section 5: Please provide contact information for project manager/lead staff person. C-22-004 Page 26 of 54 Section 6: Please provide signature and date. C-22-004 Page 27 of 54 ATTACHMENT 2: REAP COUNCIL RESOLUTION RESOLUTION (Name of Metropolitan Planning Organization) APPROVING THE PARTICIPATION AND ALLOCATION OF FUNDING FOR THE REGIONAL EARLY ACTION PLANNING GRANT (REAP) FUNDS AWARDED TO SAN JOAQUIN COUNCIL OF GOVERNMENTS ON BEHALF OF THE SAN JOAQUIN COUNTY MEMBER AGENCIES. WHEREAS, the Housing and Community Department (HCD) have provided funds for the program shown above; and WHEREAS, the provided funds by HCD have been made available through the San Joaquin Valley REAP Committee on behalf of Fresno Council of Governments, Kern Council of Governments, Kings County Association of Governments, Madera County Transportation Commission, Merced County Association of Governments, Stanislaus Council of Governments, Tulare County Association of Governments, and San Joaquin Council of Governments (SJCOG); and WHEREAS, the San Joaquin Valley REAP Committee signed a Memorandum of Understanding (MOU) to facilitate the regional sub -allocations (Exhibit A); and WHEREAS, SJCOG has been delegated the responsibility for the administration of the grant allocation, establishing necessary procedures; and WHEREAS, the Housing and Community Development Department (HCD) awarded the allocation to SJCOG on behalf of San Joaquin County Member Agencies (City of Escalon, City of Lathrop, City of Lodi, City of Manteca, City of Ripon, City of Stockton, City of Tracy, and County of San Joaquin); and WHEREAS, SJCOG and participating member agencies, will conduct planning activities that will accelerate housing production and housing -relative initiatives; and WHEREAS, the technical assistance provided by the participating Valley MPOs represents staffing for the program that is reimbursable to the grant. NOW, THEREFORE, BE IT RESOLVED THAT THE [INSERT LOCAL AGENCY]: 1. Conducts activities consistent with the grant requirements; and 2. Commits to providing documentation of work completed and other deliverables consistent with the grant requirements, and; 3. Total invoicing shall not exceed the allotted share as stipulated in Table 1 of SJCOG REAP Grant Guidelines. Approved and adopted the _ of _, 2021. I, the undersigned hereby certify that the foregoing Resolution was duly adopted by the (Name of the Local Agency) Following Roll Call Vote: {Name of CITY MANAGER} Clerk/Secretary for the Governing Board Ayes: Nos: Absent: signature) C-22-004 Page 28 of 54 C-22-004 Page 29 of 54 EXHIBIT A: San Joaquin Valley REAP MOU MEMORANDUM OF UNDERSTANDING San Joaquin Valley Regional Early Action Planning Committee for Housing This memorandum of understanding ("MOU") is made this 19th day of November 2020 ("Effective Date"), by and between the agencies ("Members") comprising the San Joaquin Valley Regional Early Action Planning Committee for Housing ("Committee") set forth below: Fresno Council of Governments 2035 Tulare Street Suite 201 Fresno, CA 93721 Email: tboren@fresnocog.org Kings County Association of Governments 339 W D Street Lemoore, CA 93245 Email: terri.king@co.kings.ca.us Merced County Association of Governments 369 W 18th Street Merced, CA 95340 Email: stacie.guzman@mcagov.org Kern Council of Governments 1401 19th Street, Suite 300 Bakersfield, California 93301 Email: ahakimi@kerncog.org Madera County Transportation Commission 2001 Howard Road, Suite 201 Madera, CA 93637 Email: patricia@maderactc.org San Joaquin Council of Governments 555 E Weber Avenue Stockton, CA 95202 Email: achesley@sjcog.org Stanislaus Council of Governments Tulare County Association of 1111 "I" Street, Suite 308 Governments Modesto, CA 95354 210 N Church Street, Suite B Email: rpark@stancog.org Visalia, CA 93291 Email: tsmalley@tularecog.org RECITALS A. Under section 50515.02, subdivision (a), of the Health and Safety Code, the State of California Department of Housing and Community Development ("HCD") has made available one hundred twenty-five million dollars ($125,000,000) in local government planning support grants to regional entities and working groups as outlined by the statute. B. The Committee is one of the working groups identified in section 50515.02, subdivision (a), of the Health and Safety Code. C On June 26, 2020, the Members approved submission of an application for grant funding ("Application") to HCD by Fresno Council of Governments ("FCOG") as the fiscal agent on behalf of the Committee. C-22-004 Page 30 of 54 D. On August 14, 2020, HCD approved the Application and an allocation of $10,218,830.75 in grant funds (the "Initial Grant") to the Members through FCOG. E. On August 20, 2020, FCOG and HCD executed grant funding agreement number 19 -REAP -14029 ("Agreement"). A true and correct copy of the Agreement is attached hereto as "Exhibit A." F. This MOU is intended to reflect the Members' understanding of the distribution of the Initial Grant and to facilitate the subsequent implementation of activities by the Members in furtherance of the purposes for which the Initial Grant was approved by HCD. The Members therefore agree as follows: Allocation of Initial Grant. The Members agree to allocate the $10,218,830.75 of the Initial Grant as follows: FCOG will retain $5,475,000 of the Initial Grant to perform the following tasks: FCOG shall prepare a comprehensive housing report and policy recommendations for implementation, as stated in the Application. FCOG may enter into agreements as necessary to perform its obligations under this provision of the MOU and under the Application and Agreement. ii. FCOG shall conduct regional planning and coordination, and provide technical assistance, as stated in the Application. FCOG may enter into agreements as necessary to perform its obligations under this term of the MOU and under the Application and Agreement. iii. FCOG shall administer of the Application, Agreement, this MOU, and the Initial Grant, as stated in the Application. b. FCOG shall distribute the remaining $4,743,830.75 of the Initial Grant directly to each of the Members, as more particularly described in "Exhibit B," in proportion to each Member's relative population using California Department of Finance population estimates updated as of January 2020. 2. Compliance with the Agreement and MOU. Each Member hereby acknowledges its cognizance of and its understanding of its obligation to comply with the terms and conditions of the Agreement and MOU. Each Member agrees to abide by the terms and conditions of the Agreement and to undertake all actions requested by FCOG pursuant to the Agreement or MOU, in order to facilitate FCOG's compliance with the terms and conditions of the Agreement. 3. Compliance with the Law. Each Member agrees to comply with all Federal, State, and local laws in the performance of its obligations under this MOU. C-22-004 Page 31 of 54 4. Sub -Agreements. Copies of all agreements between any Member and any sub - recipient, contractor or subcontractor shall be submitted to FCOG, so that they then may be provided to HCD's Program Manager as required by Exhibit D, section 8, paragraph B of the Agreement. 5. Quarterly Reports. Each Member also shall deliver to FCOG, on a quarterly basis, status reports and accounting records reflecting any expenditure of the Initial Grant by that Member or by a sub -recipient of that Member. Each Member shall deliver its status reports and accounting records within thirty (30) days following the end of the period covered by the document. Each member's quarterly status reports shall, at a minimum, include discussion of any allocations or sub -allocations of the Initial Grant, a description of any project initiated in whole or in part with the Initial Grant and a description of the progress made on any such project. 6. Retention of Records. Each Member shall maintain public records (as that term is defined in Government Code section 6252) (collectively, "Records") required under the Agreement, relating to any matter contained in this MOU, or demonstrating that the Initial Grant was used in a manner consistent with the Agreement. Each Member shall make the Records available to FCOG, HCD or the State Auditor upon demand. Each Member shall maintain the Records and make them available for inspection for a period of at least one (1) year following the termination of this MOU or the time specified in Government Code section 8546.7, whichever is later. Records relating to any audit or litigation relevant to this MOU or the Agreement shall be retained by each Member for five years after the conclusion or final resolution of such matter, as required by Exhibit D, section 3, paragraph E of the Agreement. 7. Disallowed Costs. Each Member shall return to FCOG any funds which HCD has disallowed within 90 days following notice to the Member. 8. Indemnity. a. Each Member shall indemnify FCOG, along with FCOG's officers, directors, and employees, for any costs or liabilities (including without limitation for damages, court costs, attorneys' fees, and expert witness fees) arising from, resulting from, or in connection with that Member's actions with respect to subject matter of this MOU or relating in any way to the use of the Initial Grant proceeds by that Member or any sub -recipient, contractor, or subcontractor of that Member. b. Notwithstanding, the obligation to indemnify shall not apply to any costs or liabilities caused solely by the active negligence or willful misconduct of FCOG or any of its officers, directors, and employees. 9. Duration of MOU. This MOU shall be in effect from the Effective Date until December 31, 2024 unless its term is extended by written modification in accordance with the provisions of section 12, paragraph c of this MOU. C-22-004 Page 32 of 54 10. Subsequent MOUs. The Members understand and agree that subsequent MOUs may be necessary to facilitate the distribution of further grant funding from HCD under section 50515.02, subdivision (a), of the Health and Safety Code. The Members hereby commit to negotiate the terms and conditions of such subsequent MOUs in good faith, in order to achieve concurrence and ensure execution of same in a timely fashion. 11. Notices. All notices provided for or permitted under this MOU must be in writing and delivered either by personal service, by first-class United States mail, by an overnight commercial courier service, or as a PDF attachment to an email sent to the addresses provided for the Members above. Any Member may change its address for receipt of notice by providing notice of that change as provided in this section 11. a. A notice delivered by personal service is effective upon service to the recipient. b. A notice delivered by first-class United States mail is effective three business days after deposit in the United States mail, postage prepaid, addressed to the recipient. c. A notice delivered by an overnight commercial courier service is effective one County business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient. d. A notice delivered by email is effective when sent, if the email is sent between the hours of 8:00 am and 5:00 pm on a business day. If sent outside the hours of 8:00 am and 5:00 pm on a business day, a notice delivered by email becomes effective on the first business day following. 12. General Provisions. a. This MOU is binding upon and shall inure to the benefit of any successors or assigns of the Members. b. This MOU represents the entire understanding of the Members as to those matters contained in this MOU. No prior oral or written understanding shall be of any force or effect with respect to those matters covered in this MOU. c. This MOU may not be modified or altered except by writing signed by all Members. d. No Member may assign, delegate or transfer its rights and duties in this MOU without the written consent of all other Members, except that any Member may enter into one or more sub -agreements with any sub -recipient, contractor, or subcontractor to implement activities in furtherance of the C-22-004 Page 33 of 54 purposes for which the Initial Grant was approved by HCD without the necessity of obtaining such consent. e. Any dispute arising under this MOU, which is not resolvable by informal mediation between or among the Members, shall be adjudicated in a court of law under the laws of the State of California. f. For all claims arising from or related to this MOU, nothing in this MOU establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810). g. This MOU shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this MOU shall only be in California. Any action brought to interpret or enforce this MOU, or any of the terms or conditions hereof, shall be brought and maintained in the Fresno County Superior Court. h. If any part of this MOU is found by a court of competent jurisdiction to be unlawful or otherwise unenforceable, the balance of this MOU remains in full force and effect, and the Members shall make best efforts to replace the unlawful or unenforceable part of this MOU with lawful and enforceable terms intended to accomplish the Members' original intent. i. Section headings are provided for convenience only and are not part of this MOU. j. This MOU does not and is not intended to create any rights or obligations for any person or entity except for the Members. k. Each Member represents and warrants that the individual signing this MOU is duly authorized to do so and their signature on this MOU legally binds that Member to the terms of this MOU. I. This MOU may be signed in counterparts, each of which is an original, and all of which together constitute this MOU. [Signature pages follow.] C-22-004 Page 34 of 54 The Members have caused this MOU to be executed as of the date and year first above written. Fresno Council of Governments By:�.. Tony Boren, Director Approved as to Legal Form: By: Print Kings County Association of Governments By: Terri King, Director Approved as to Legal Form. By: Print: Kern Council of Governments By Ahron Hakimi, Director Approved as to Legal Form: By Print: Madera County Transportation Commission Patricia Taylor, Director Approved as to Legal Form: By: Print: Merced County Association of Governments Stacie Guzman, Director Approved as to Legal Form: Print: Stanislaus Council of Governments Rosa Park, Director Approved as to Legal Form By: Print: C-22-004 Page 35 of 54 San Joaquin Council of Governments By: Andrew Chesley, Director Approved as to Legal Form: By: Print: Tulare County Association of Governments By: Ted Smalley, Director Approved as to Legal Form By: gr" Print C-22-004 Page 36 of 54 Exhibit A Grant funding agreement number 19 -REAP -14029 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES - -- -- -- STANDARD AGREEMENT AGREEMENT NUMBER STD 213 (Rev. 0312019) 19 -REAP -14029 1. This Agreement is entered Into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME — ~-- DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTRACTOR'S NAME — Fresno Council of Governments C-22-004 _ - - Page 37 of 54 PURCHASING AUTHORITY NUMBER (if applicable) 2. The term of this Agreement is: START DATE Upon HCD Approval THROUGH END DATE 12/31/2024 3. The maximum amount of this Agreement is: v $10,218,830.75 _�__• _..-_... _ _. 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. EXHIBITS TITLE Exhibit A Authority, Purpose and Scope of Work — Exhibit B Budget Detail and Payment Provisions Exhibit C" State of California General Terms and Conditions Exhibit D REAP General Terms and Conditions Exhibit E Special Conditions TOTAL NUMBER OF PAGES ATTACHED — Items shown with an asterisk ('), are hereby incorporated by reference and made part of this agreement as if attached hereto. These documents can be viewed at https://www.dgs.ca.gov/OLS/Resources IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO. CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a corporation, parinership,etc.) Fresno Council of Govemments CONTRACTOR BUSINESS ADDRESS 2035 Tulare St., #201 PRINTED N F PERSQN SIGNING �- CONTRACTOR XORI SIGNATURE CONTRACTING AGENCY NAME Department of Housing and Community Development CONTRACTING AGENCY ADDRESS 2020 W. EI Camino Ave., Suite 130 PRINTED NAME OF PERSON SIGNING Shaun Singh PAGES 3 3 GTC - 04/2017 9 0 15 CITY STATE ZIP Fresno CA 93721 TITLES t . - - - ---- - DATE SIGNED] .�pQ _STATE OF CALIFORNIA— CITY STATE ZIP Sacramento CA 95833 TITLE Contracts Manager, Business & Contract Services Branch CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED 9/3/2020 �California Department of General Services Approval (or exemption, if applicable) Exempt per; SCM Vol. 1 4.04.A.3 (DGS memo dated 6/12/1981) AUTHORITY PURPOSE AND SCOPE OF WORK 1. Authority C-22-004 Page 38 of 54 The Local Government Planning Support Grants Program is established for the purpose of providing regions and jurisdictions with one-time funding, including grants for planning activities to enable jurisdictions to meet the sixth cycle of the regional housing needs assessment. Up to two hundred fifty million dollars ($250,000,000) shall be distributed under the program in accordance with Health and Safety Code sections 50515.02 and 50515.03. Of this amount, approximately one hundred twenty-five million dollars ($125,000,000) is available to councils of governments and other regional entities. The Department of Housing and Community Development (Department or HCD) shall administer the Program (referred to herein as the Regional Early Action Planning Grant Program, or "REAP") to councils of governments and other regional entities in accordance with the Notice of Funding Availability ("NOFA") pursuant to Health and Safety Code section 50515.04, subdivision (f). Pursuant to Health and Safety Code section 50515.02, subdivision (d)(3), a council of governments or a fiscal agent of a multiagency working group, as defined in section 50515.02, may request up to 25 percent of its available funding in advance. This Standard Agreement authorizes the encumbrance of full funds available to the applicant pursuant to the NOFA, subject to all statutory requirements and all applicable provisions including the NOFA, initial application and award for advance payment, subsequent advance payment application and award, application and award for the full remaining fund amount and amendment to this agreement. The Grantee shall consult with the Department on any amendment or other provision related to the implementation of the Program. The Department decisions related to the administration of the Program shall be final pursuant to Health and Safety Code section 50515.04, subdivision (g). 2. Purpose In accordance with the authority cited above, the Grantee has been awarded financial assistance in the form of a grant from the Program. The Department has agreed to make the grant for planning activities pursuant to the NOFA and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Grantee agrees to comply with the terms and conditions C-22-004 Page 39 of 54 of the NOFA, this Agreement, subsequent amendments to this Agreement, the representations contained in the initial advance payment and subsequent full application(s), and the requirements of the authority cited above. Based on all representations made by the Grantee, the Department shall encumber the full amount pursuant the NOFA and provide advance payment and subsequent payments in accordance with Exhibit B. All terms, conditions and other relevant provisions will be subject to amendments as a result of subsequent applications and awards for remaining funds after the initial application up to 25 percent of the full amount described in Exhibit B. 3. Definitions Terms herein shall have the same meaning as defined by the NOFA. 4. Scope of Work Grantee shall use the awarded funds in accordance with the approved Scope of Work as contained in the timeline and budget and related information outlined in the application for 25 percent advance payment and any subsequent applications for partial or full funding. The Scope of Work may be amended in compliance with statutory requirements subject to approval by the Department. 5. Monitoring A. The Grantee shall maintain books, records, documents, and other evidence that demonstrates the funding was used for the appropriate purposes, as described in the Scope of Work, approved application, subsequent approved applications and all other pertinent documents. These books, records, documents and other evidence shall be made available for audit and inspection by the Department at any point during the term of the agreement and subject to any amendments to this agreement. B. The Department may request additional information, as needed, to meet the statutory requirements of the Program and facilitate amendments to this agreement, including but not limited to reporting or audit requirements, progress in implementing advance payment(s), or award of the full amount available to the Grantee. C-22-004 Page 40 of 54 C. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with statutory or Department requirements. 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 statutory or Department requirements. E. 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. F. Monitoring provisions may be amended and are subject to additional provisions in accordance with this agreement or subsequent amendments. 6. Qepartment Contract Coordinator The Contract Coordinator of this Agreement for the Department is the Housing Policy Development Manager, or the Manager's designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the Department Contract Coordinator at the following address: Department of Housing and Community Development Housing Policy Development Division Land Use Planning Unit Attention: REAP Program Manager 2020 West EI Camino Avenue, Suite 500 Sacramento, CA 95833 P. O. Box 952050 Sacramento, CA 94252-2050 C-22-004 Page 41 of 54 BUDGET DETAIL AND PAYMENT PROVISIONS 1. Application for Funds A. The Department is entering into this Agreement on the basis of, and in reliance on facts, information, assertions and representations contained in any application and award and any subsequent modifications or additions thereto approved by the Department. All awarded applications for funding and any approved modifications and additions thereto are hereby incorporated into this Agreement. B. The Grantee warrants that all information, facts, assertions and representations contained in any approved application and approved modifications and additions thereto are true, correct, and complete to the best of the Grantee's knowledge. In the event that any part of an application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect the Department's approval, disbursement, or monitoring of the funding and the grant or activities governed by this Agreement, the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof. 2. Grant and Reimbursement Limit A. The maximum total amount encumbered to the Grantee pursuant to this Agreement shall not exceed $10,218,830.75. B. This Agreement authorizes an initial advance payment(s) for eligible activities as described in the application. C. This Agreement authorizes subsequent award amounts or advance payment up to the total award amount as described in Section 2A, of this Exhibit, and subject to Department approval. D. The Grantee shall submit and follow a schedule for the expenditure of the advance payment, any subsequent payment and the total amount prior to C-22-004 Page 42 of 54 disbursement of funds. The schedule is subject to Department approval and may be revised as the Department deems necessary. 3. Grant Timelines A. This Agreement is effective upon approval by the Department representative's signature on page one of the fully executed Standard Agreement, STD 213, (the "Effective Date"). B. All Grant funds must be expended by December 31, 2023 pursuant to Health and Safety Code section 50515.04(c )(1). C The Grantee shall deliver to the Department all final invoices for reimbursement on or before November 1, 2023, to ensure the Department meets the December 31, 2023 expenditure deadline. Under special circumstances, approved by the Department, the Department may modify the November 1, 2023 deadline and may provide exception, including, but not limited to, advance payment to carry out the terms of this agreement. D. It is the responsibility of the Grantee to monitor the project and timeliness of draws within the specified dates. 4. Allowable Uses of Grant Funds A. The Department shall not award or disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the NOFA which includes associated forms and guidelines and this Agreement. B. Grant funds shall only be used by the Grantee for project activities approved by the State that involve planning activities in accordance with the NOFA. C. Grant funds may not be used for administrative costs of persons employed by the Grantee for activities not directly related to eligible activities. D. The Grantee shall use no more than 5 percent of the total grant amount for costs related to administration of the project. C-22-004 Page 43 of 54 E. A Grantee that receives funds under this Program may use a subcontractor and Grantee shall be accountable to the Department to ensure subcontractor's performance. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the Grantee of its responsibilities under the Program. F. After the contract has been executed by the Department and all parties, approved and eligible costs for eligible activities may be reimbursed for the project(s) upon completion of deliverables or paid in advance in accordance with the scope of work and subject to the terms and conditions of this Agreement. G. Only approved and eligible costs incurred for work after October 1, 2019, continued past the date of execution and acceptance of the Standard Agreement and completed during the grant term will be reimbursable. 5. Performance The Grantee will be subject to amendments to this section as a result of future applications and awards. 6. Fiscal Administration A. The Grantee will be subject to amendments to this section as a result of subsequent applications and awards, in consultation with the Grantee. B. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall immediately terminate and be of no further force and effect. In this event, the State and Contractor shall be relieved of any and all obligations under this Grant Agreement. C. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the State, or amend the current Grant Agreement and amount allocated to Contractor. REAP TERMS AND CONDITIONS Reporting C-22-004 Page 44 of 54 A. During the term of the Standard Agreement the Grantee shall submit, upon request of the Department, a performance report that demonstrates satisfaction of all requirements identified in this Standard Agreement. B. The Grantee will be subject to amendments to this section as a result of subsequent applications and awards. 2. Accounting Records A. The Grantee, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. B. The Grantee shall establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required. C. 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 GAAP. D. 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. E. Subcontractors employed by the Grantee and paid with moneys under the terms of this Standard Agreement shall be responsible for maintaining accounting records as specified above. 3. Audits A. At any time during the term of the Standard Agreement, the Department may C-22-004 Page 45 of 54 perform or cause to be performed a financial audit of any and all phases of the award. At the Department's request, the Grantee 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 and over the project life. 1) The Grantee agrees that the Department or the Department's designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. 2) The Grantee agrees to provide the Department or the Department's designee, with any relevant information requested. 3) The Grantee agrees to permit the Department or the Department's designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, Program guidelines, and this Agreement. B. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in Exhibit D, Section 8 subsection A. of this Standard Agreement. 1) The Grantee shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers. 2) The Grantee is responsible for the completion of audits and all costs of preparing audits. 3) If there are audit findings, the Grantee shall submit a detailed response acceptable to the Department for each audit finding within 90 days from the date of the audit finding report. C. The Grantee agrees to maintain such records for possible audit after final payment pursuant to Exhibit D, Section 3, subsection E. below, unless a longer period of records retention is stipulated. C-22-004 Page 46 of 54 1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained by the Grantee, contractors and sub -contractors until completion of the action and resolution of all issues which arise from it. The Grantee shall include in any contract that it enters into in an amount exceeding $10,000.00, the Department's right to audit the contractor's records and interview their employees. 2) The Grantee shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Contracts Code section 10115.10. D. The determination by the Department of the eligibility of any expenditure shall be final. E. The Grantee shall retain all books and records relevant to this Agreement for a minimum of (3) three years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five years after the conclusion or resolution of the matter. 4. Remedies of Non- erformance A. Any dispute concerning a question of fact arising under this Standard Agreement that is not disposed of by agreement shall be decided by the Department's Housing Policy Development Manager, or the Manager's designee, who may consider any written or verbal evidence submitted by the Grantee. The decision of the Department's Housing Policy Development Manager or Designee shall be the Department's final decision regarding the dispute, not subject to appeal. B. Neither the pendency of a dispute nor its consideration by the Department will excuse the Grantee from full and timely performance in accordance with the terms of this Standard Agreement. C. In the event that it is determined, at the sole discretion of the Department, 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. C-22-004 Page 47 of 54 D. 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 shall submit any requested documents to the Department within 30 days of the early termination notice. E. A strong implementation component for the funded activity through this Program is required, including, where appropriate, agreement by Grantee and its subcontractors to formally adopt or complete a planning or other activity consistent with the NOFA. The Grantee must carry out provisions to ensure the adoption or completion of activities in accordance with the NOFA, including activities subcontracted to localities. Grantee may be subject to repayment of the grant should the Grantee or any of its subcontractors under this agreement fail to adopt or complete activities set forth in its application, this Agreement or any amendments to this Agreement. F. The following shall each constitute a breach of this Agreement: 1) Grantee's failure to comply with any term or condition of this Agreement. 2) Use of, or permitting the use of, grant funds provided under this Agreement for any ineligible costs or for any activity not specified and approved under this Agreement. 3) Any failure to comply with the deadlines set forth in this Agreement unless approved by the Program Manager in writing. G. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may at its discretion, exercise a variety of remedies, including but not limited to: 1) Revoke existing REAP award(s) to the Grantee; 2) Require the return of unexpended REAP funds disbursed under this Agreement; 3) Require repayment of REAP Funds disbursed and expended under this agreement; 4) Seek a court order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance C-22-004 Page 48 of 54 with the REAP Program requirements; and 5) Other remedies available at law, by and through this agreement. All remedies available to the Department are cumulative and not exclusive. 6) The Department may give written notice to the Grantee to cure the breach or violation within a period of not less than 15 days. H. The Grantee may be subject to amendment of this section as a result of subsequent applications and awards. 5. Indemnification Neither the Department nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents, its contractors, its sub -recipients or its subcontractors under or in connection with any work, authority or jurisdiction conferred upon the Grantee under this Standard Agreement. It is understood and agreed that the Grantee shall fully defend, indemnify and save harmless the Department and all of the Department's staff from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortuous, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents contractors, sub -recipients, or subcontractors under this Standard Agreement. 6. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions. 7. Relationship of Parties It is expressly understood that this Standard Agreement is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. 8. Third -Party Contracts C-22-004 Page 49 of 54 A All state -government funded procurements must be conducted using a fair and competitive procurement process. The Grantee may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law. B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in this Agreement and shall be applicable to the Grantee's sub -recipients, contractors, and subcontractors. Copies of all agreements with sub -recipients, contractors, and subcontractors shall be submitted to the Department's program manager. C. The Department does not have a contractual relationship with the Grantee's sub - recipients, contractors, or subcontractors, and the Grantee shall be fully responsible for monitoring and enforcement of those agreements and all work performed thereunder. 9. Compliance with State and Federal Laws Rules Guidelines and Regulations A. The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant, the Grantee, its contractors or subcontractors, and any other grant activity. B. During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations. C. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub -recipients, contractors, and subcontractors, and shall include a requirement in all agreements that each of them in turn include the nondiscrimination and compliance provisions of this C-22-004 Page 50 of 54 clause in all contracts and subcontracts they enter into to perform work under REAP. D. The Grantee shall, in the course of performing project work, fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) E. The Grantee shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the REAP project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351. 10. Litigation A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable. B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department, and shall take such action with respect to the claim or action consistent with the terms of this Agreement and the interests of the Department. 11. Changes in Terms/Amendments A. The Grantee may be subject to amendments to this section as a result of subsequent applications and awards. B. This Agreement may only be amended or modified by mutual written agreement of both parties. 12. State -Owned Data A. Definitions C-22-004 Page 51 of 54 1) Work The work to be directly or indirectly produced by the Grantee, its employees, or by and of the Grantee's contractor's, subcontractor's and/or sub -recipient's employees under this Agreement. 2) Work Product All deliverables created or produced from Work under this Agreement including, but not limited to, all Work and Deliverables conceived or made, either solely or jointly with others during the term of this Agreement, which relates to the Work commissioned or performed under this Agreement. Work Product includes all deliverables, inventions, innovations, improvements, or other works of authorship Grantee and/or Grantee's contractor subcontractor and/or sub -recipient may conceive of or develop in the course of this Agreement, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. 3) Inventions: Any ideas, methodologies, designs, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by the Grantee or jointly with the Grantee's contractor, subcontractor and/or sub - recipient and/or Grantee's contractor, subcontractor, and/or sub -recipient's employees with one or more employees of the Department during the term of this Agreement and in performance of any Work under this Agreement, provided that either the conception or reduction to practice thereof occurs during the term of this Agreement and in performance of Work issued under this Agreement. B. Ownership of Work Product and Rights 1) All work Product derived by the Work performed by the Grantee, its employees or by and of the Grantee's contractor's, subcontractor's and/or sub -recipient's employees under this Agreement, shall be owned by the Department and shall be considered to be works made for hire by the Grantee and the Grantee's contractor, subcontractor and/or subrecipient for the Department. The Department shall own all copyrights in the work product. 2) Grantee, its employees and all of Grantee's contractor's, subcontractor's and sub -recipient's employees agree to perpetually assign, and upon creation of each Work Product automatically assign, to the Department, ownership of all United States and international copyrights in each and C-22-004 Page 52 of 54 every Work Product, insofar as any such Work Product, by operation of law, may not be considered work made for hire by the Grantee's contractor, subcontractor and/or subrecipient from the Department. From time to time upon the Department's request, the Grantee's contractor, subcontractor and/or subrecipients, and/or its employees, shall confirm such assignments by execution and delivery of such assignment, confirmations or assignment or other written instruments as the Department may request. The Department shall have the right to obtain and hold in its name all copyright registrations and other evidence of rights that may be available for Work Product under this Agreement. Grantee hereby waives all rights relating to identification of authorship restriction or limitation on use or subsequent modification of the Work. 3) Grantee, its employees and all Grantee's contractors, subcontractors and sub -recipients hereby agree to assign to the Department all Inventions, together with the right to seek protection by obtaining patent rights therefore and to claim all rights or priority thereunder and the same shall become and remain the Department's property regardless of whether such protection is sought. The Grantee, its employees and Grantee's contractor, subcontractor and /or subrecipient shall promptly make a complete written disclosure to the Department of each Invention not otherwise clearly disclosed to the Department in the pertinent Work Product, specifically noting features or concepts that the Grantee, its employees and/or Grantee's contractor, subcontractor and/or subrecipient believes to be new or different. 4) Upon completion of all work under this Agreement, all intellectual property rights, ownership and title to all reports, documents, plans, specifications and estimates, produced as part of this Agreement shall automatically vest in the Department and no further agreement will be necessary to transfer ownership to the Department. 13. Special Conditions The State reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved, in consultation with the Grantee. C-22-004 Page 53 of 54 Exhibit B Pro -rata Initial Allocations to Each Regional Transportation Planning Agency Based on January 2020 California Department of Finance Population Estimates REAP PLANNING GRANT INITIAL ALLOCATIONS MPO Share by Population' Fresno Council of Governments Kern Council of Governments Kings County Association of Governments Madera County Transportation Commission Merced County Association of Governments San Joaquin Council of Governments Stanislaus Council of Governments Tulare County Association of Governments MPO DISTRIBUTION 1,032,227 23.50% $1,114,737.62 927,251 21.11% $1,001,370.41 156,444 3.56% $168,949.28 160,089 3.64% $172,885.65 287,420 6.54% $310,394.79 782,545 17.81% $845,097.40 562,303 12.80% $607,250.45 484,423 11.03% $523,145.14 Total 4,392,702 100.00% $4,743,830.75 C-22-004 Page 54 of 54 ATTACHMENT 3: DRAFT REAP REPORTING FORM REAP REPORTING FORM Agency: Name: Title: Date: Quarterly Report: Q1 -Q4 - Make sure the following is complete before submittal: ^I Form Complete u Backup Attached Send attachments electronically to Hailey Lang at lang[a sjcog.org. Q 1: FUNDING $$ Q 2: FUNDING $$ Q 3: FUNDING $$ Q 4: FUNDING $$ Task List Funding Used Funding Available Notes INSERT TASK INSERT TASK INSERT TASK INSERT TASK INSERT TASK Please describe what funding was used for: RESOLUTION NO. 2021-307 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE REGIONAL EARLY ACTION PLANNING (REAP) COOPERATIVE AGREEMENT WITH SAN JOAQUIN COUNCIL OF GOVERNMENTS; ACCEPTING GRANT FUNDING; AND AUTHORIZING REVENUE AND EXPENDITURE APPROPRIATIONS WHEREAS, the Housing and Community Development Department (HCD) have provided funds for Regional Early Action Planning (REAP); and WHEREAS, San Joaquin Council of Governments on behalf of San Joaquin County Member Agencies (City of Lodi, City of Escalon, City of Lathrop, City of Manteca, City of Ripon, City of Stockton, City of Tracy, and County of San Joaquin), have been delegated the responsibility for the administration of the grant allocation and establishing necessary procedures; and WHEREAS, the SJCOG has allocated $132,470 to the City of Lodi to accelerate quality affordable housing stock, including affordable homeownership opportunities, in accordance with State of California affordable housing legislation; and WHEREAS, from the total allocation of $132,470, $44,144 will fund a Shared Equity Homeownership Feasibility Study, and the remainder of the allocation ($88,326) will fund the development of a local legislative and policy approach for City Council review to facilitate the construction of quality affordable housing in Lodi. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the following actions: 1. Authorize the City Manager to sign the Regional Early Action Plan (REAP) Cooperative Agreement; and 2. Accept grant funding from SJCOG in the amount of $132,470 to fund planning efforts to accelerate affordable housing opportunities in the City of Lodi; and 3. Authorize revenue appropriation in account code 35500000.56007 and expenditure appropriation in account code 35587000.72450. Dated: November 17, 2021 I hereby certify that Resolution No. 2021-307 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 17, 2021 by the following votes: AYES: COUNCIL MEMBERS — Chandler, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Hothi ABSTAIN: COUNCIL MEMBERS — None 1.4� JENNIFP' CU City Clerk 2021-307