City Council - Regular Meeting

The speed meeting is now called to order of uh April 21st, 2026. City council meeting is available in for instant translation using Wordley in over 60 languages. And if you want to see what the agenda can be, it's on the QR code on your upper left lefthand corner. So, back to today's business. City clerk Gazetta, please take the role. Vice Mayor Barbadio here. Council member Chua here. Council member Lamb here. Council member Leanne here. Mayor Montano here. So, before we adjourn to close session, City Attorney Curtis, please brief the public on the close session items for today.

Thank you, Mayor. There are three items coming before the council for close session. The first is the public employee appointment and hiring which is pursuant to government code section 54957B. The employee position is the city manager. The second is conference with labor negotiator pursuant to government code section 54957.6. The agency's designated representatives are Christian Curtis, city attorney, and Wendy Brown, WBCP. The employee organizations are the unrepresented city manager. The third item is the conf is also a conference with labor negotiator and that's pursuant to government code section 54957.6. The agency's designated representatives are Jared Hernandez, acting city manager, Matt Kono uh assistant city manager and Rick Bologanos Liber Cassidy Whitmore. The employee organizations are the professional and technical employees, mid management and confidential employees, militus employees association, international association of firefighters, Milpedus uh police officers association, and the unrepresented employees.

Thank you. And now call for public comment on the closed agenda items. We have no public speaker cards, mayor. Okay. So I will um give folks three minutes for tonight for later on when folks come. All right. So we will adjourn to close session. Thank you.

Oh, what? Oh, I think it's too late now. Anyways, no, I had it. Oh,

man. I need Okay,

I'm waiting for Mr. William. All right. This meeting is now called to order of uh April 21, 2026. So, we had already adjourned to close session. So, uh city attorney, can you report out? Uh yes, mayor. There's no reportable action at this time. Okay. Uh so, now we will Where am I at? Okay. So, now it's 7:12. Oh, now we will rise for the pledge of allegiance.

You ready? I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, liberty and justice for all.

Okay. Thank you. You may be seated. And so now we will do the invocation and we have Vice Mayor Barbara Deio that will provide the invocation this evening. Let us all put ourselves in the presence of God. Uh we thank you Lord for everything that uh we had received all the blessings uh that each and every one of us uh has nourish uh throughout the week. Uh at this point we want to ask uh for a fiscal wisdom a divine wisdom from you as this council is uh tackling uh the budget process. hopefully give us uh the necessary uh information and and wisdom to uh do uh the right budget for this city. We also uh want to uh ask for world peace with uh the things going on uh in the world. Uh we just uh ask that uh peace uh reigns uh in uh the minds and hearts of our leaders and uh have a peaceful world to live in. In his name we ask. Amen.

Amen. Thank you for Thank you for that uh vice mayor. So now we will do the proclamations and we have uh on the list uh black April black April proclamation, Militus Performing Arts Center presentation, arts, culture and creativity month and Earth Day proclamation. So my colleagues can join me on the So, welcome everyone and it's good to see the school board here and the majority of the school board. It's great. Welcome everyone. All right. So our first one will be um uh Black April. So Black April signifies a somber chapter in history reminding us of the anguish and sacrifice endured during the final days of the Vietnam War. As we commemorate this solemn occasion, let us honor the memory of those who face displacement, persecution, and unimaginable hardships. Let us ensure that the lessons of Black April are never forgotten. Standing in solidarity for peace, reconciliation, and human rights. So, join me, Mayor Carmen Montano and the Malpa City Council in proclaiming April 2026 as Black April month. And we have who is going to come up here to come on up. Come on up. So, you're going to say a few words. Okay. And then um well, actually, let's do the practice. Take a picture first. Anybody else?

Good evening everyone and thank you to the um city of Militus for this proclamation. My name is Quan and I'm the founder and director of VSFS, a the first currently and the first and only Vietnamese American dance school in the entire Bay Area. Um today as we honored um Black April, we honor the lives lost, families separated, and the resilience it um for resilience of our Vietnamese American community. It is not only a day about remembrance, but also um about the courage it took to rebuild and preserve a culture and also to pass on stories to our future generations. Um thank you again. YES.

OKAY. Thank you so much for that those words. So now we're moving on to the arts, culture, and creativity month. Not sure if you have a representative here, but I will still read it. So tonight we are proud to recognize April as arts, culture, and creativity month in the city of Mel Pedas. This proclamation highlights the important role that arts and creativity play in our community, not just as a form of expression, but as something that supports our health, strengthens our sense of connection, and contributes to overall well-being. We also recognize the value of our partnerships with local and regional arts organizations whose work helps expand access and create opportunities for all members of our community. So join me, Mayor Carmen Montano and the Melpita City Council in proclaiming April 2026 as arts, culture, and creativity month in the city of Melpas. Is there someone here to accept this uh commendation or proclamation action? If not, we will save it and mayor or I'll present it to SV creates.

Thank you. The next one is Earth Day. So on April 22, this we recognize Earth Day and the vital importance of environmental protection in Mitas and around the world. This year's theme, our power, our planet, reminds us that we all have a role to play in accelerating clean energy and sustainability. I invite our community to reflect on what we can do, what each of us can do. So, individually and together to invest in our planet and to ensure a cleaner, greener future for generations to come. So join me, Mayor Carmen Montano and the Militas City Council in proclaiming April 22nd, 2026 as Earth Day in the city of Militas. And we have someone here.

Oh, Elaine, come on up. Come on up, Elaine. Thank you, mayor and city council. Um we had a really great Earth Day event this past Saturday at Murphy Park um here in Militus. Um, it was a beautiful day, sunny and blue skies, and it was great seeing hundreds of Militus families and residents uh, learning about and excited about what they can do for the environment. Um, I also want to encourage everyone to check our website. We have lots more events coming up, including creek cleanups, neighborhood cleanups, and then a lot of information about the Go Electric Militus program. So, lots of ways to continue to be sustainable and to do um good things for your families and for the planet. All right. Thank you.

Okay. So, now we have the Militus Unified School District Performing Arts Center. It was such a great great event and we are so proud of the school district for putting a performing arts center in the city of Malpas. So, so on behalf of the city of Mel Pedas, we mayor Carmen Montano, Vice Mayor Gary Barbadadio, council member Evelyn Chua and council member Han Lynn and council member William Lamb congratulate the Malpus Unified School District Performing Arts Center on their ribbon cutting ceremony on Thursday, March 19th, 2026. This moment represents more than a building opening. It reflects years of vision, care, and belief in the power of the arts to shape students and strengthen community. Within these walls, creativity will come alive through music, theater, and dance, giving our community the strength that we need to give in promoting the cultural arts. So with this, your commitment has created a vibrant home for talent and a lasting legacy of inspiration. Congratulations on this wonderful event. So come on up to give you this proclamation. Isn't this nice? You're going to hang you're going to hang this up over there at the at the performing arts. I hope. Yes, please.

Thank you, Mayor Montano and city council, and on behalf of our board and all of our MUSD team members and the community, thank you for recognizing the importance of our MUSD Milita latest performing arts center. We are thrilled to have this in our school district and look forward to, as you said in the proclamation, we look forward to building pathways for learners that involve cre involve creativity, theater, arts, dance, communications, debate, speeches, presentations, and many more durable skills that will benefit them in their careers and life. Thank you. Thank you very much.

Okay, everyone. We're back back on track. So, now let's move on to the public forum. Members of the public are invited to speak on any item that does not appear on today's agenda. Please note that oral public comment may only be provided live at the city council meeting in person. Public forum will be limited to two minutes. So, call for speakers. City clerk, I have no public speaker cards. Mayor,

no speaker cards, but but is there anyone in the public that would like to speak on any item that is not on on the agenda? If not, we'll close the um public forum time. And moving on to the announcements of conflict of interest and campaign contributions, we have our city attorney, Curtis. Thank you, mayor. At this time, I would ask the mayor and each council member whether he or she has any financial or personal conflict of interest related to any of the items on tonight's agenda. Vice Mayor Barbadio, none. Council member Chua, none. Council member Lamb, none. Council member Leanne, none. Mayor Montto,

I would also ask the mayor and members of the Milpita City Council to please disclose any campa camp campaign contributions of $100 or more received within the last 12 months from any of the parties entering into contracts with the city on tonight's agenda or contributions received from the development project applicant for development projects on tonight's agenda. Vice Mayor Barbadio, I have none. Council member Chua, none. Council member Lamb, none. Council member Leanne, none. Mayor Montano, none. I would then ask that the clerk have the record reflect no reported conflicts.

Okay. Thank you. Um U M um Attorney Curtis. Still got to get used to your name. So this is Christian. Christian Curtis. Okay. Um uh so this is your second meeting with us now. So that's just wonderful. This everyone if you don't know this, this is our new city attorney, Christian Curtis. Let's give him a big old round of applause. Thank you very much, mayor.

You're welcome. Okay, so now it's moving on to the Malpus uh code of conduct. Is anyone would any of my colleagues would like to take that on? We have uh Council Member Chua. Thank you, Mayor. Mira City Council code of conduct. Be respectful and courteous. Model civility. Avoid avoid surprises. Praise publicly and criticize privately. Focus on the issue, not the person. Use electronic devices appropriately while on the council dis. Disclose conflicts of interest and affiliations related to agenda items. Separate governing from campaigning. The council speaks with one voice after making policy on issues. Respect the line between policy and administration. Council will hold one another accountable to comply with this code of conduct. Thank you, mayor. Thank you. So, now moving on to the approval approval of the agenda. There is one item that I would like to ask uh council member to um move item 19 to be heard immediately after this consent calendar. Would you guys be okay with that?

So was motioned by council member Chua and seconded by vice mayor. So let's uh call for the vote. Vice Mayor Barbadio I. Council member Chua I. Council member Lamb I. Council member Leanne I. Mayor Montenno and I'm an I. Thank you for that. So now next we'll uh consider the consent calendar. Any staff have any comments, changes to make?

Is there a sec? Is there a second? So it was moved by um council member Chua and seconded by council member Leen. Let's call for the vote. Mayor, we have to call for public comment first and then we have a disclosure on item C8 that we need to make. Okay. Okay. So, uh our city manager will make uh disclosure.

Thank you, mayor. There is one item on the consent calendar. It's item C8 and uh pursuant to government government code section 54953. It requires a verbal um it requires a verbal statement of of what that item is. this item and its resolution before the city council approves a 3% salary increase for certain um unrepresented mis miscellaneous classifications to include a retroactive to the first payment pay pay period in July of 2025 at an and at an estimated annualized cost of approximately $270,000. It's already budgeted in the existing fiscal year 2526 adopted operating budget, but I'm required to state that before you take action.

Okay, great. Now, do we need to make a motion? I mean a motion in a second. No, I was gone to public comment now. I have no public speaker cards. Anyone from the public that would like to make any comments on this item? Okay. Well, see none. And we have a motion from Council Member Chua and seconded by Council Member Leanne. Right. Let's call for the vote. Vice Mayor Barbado. I. Council member Chua. I. Council member Lamb. I. Council member Leanne I. Mayor Montano and I am an I. Thank you. So now we're moving on to public hearings. City manager.

Um 19. Okay. We're going to move to uh public hearings on actually it's going to be leadership and support services item 19. We'll do that one first. Thank you, mayor. So item 19 before the council is going to be a presentation from the county of Santa Clara on their community plan to end homelessness and we have county representatives here to uh facilitate the presentation.

Thank you, city manager Hernandez. Um Matt Kano, assistant city manager and with me tonight is Laura Arthuriaga Fuentes and Hillary Armstrong from the county office of supportive housing. And I we appreciate both of your time um to come and share the draft plan on the community plan to end homelessness and receive any feedback you have this evening. And with that, I'll turn it over to the county team to go through the presentation.

Thank you so much. Good evening, mayor, vice mayor, and council members. My name is Hillilary Armstrong. Thank you for the introduction. I'm a deputy director with the county office of supportive housing. And I'm here with my colleague, Laura Ortega Fuentes, our continuum of care program manager. We're here tonight representing our community's continuum of care, who convenes this effort alongside many partners. Next slide, please. So, tonight we will try to quickly go through a great deal of information, and we thank you for your time. Uh, we're going to be covering a few key topics. Um, starting with the progress from the last community plan to end homelessness, diving into some data about the households served in our system from Militas, and introducing you all to uh the draft community plan and our next steps going forward. Next slide, please. So, before we get started, we wanted to provide an overview of our supportive housing system in our county. The Office of Supportive Housing was founded in 2015 as uh part of an effort to really coordinate services and the limited resources that our community has available to address homelessness and to leverage those resources. Before the development of our supportive housing system, an individual who was experiencing homelessness on any given night might have to call or go to a number of different shelter locations to see if they could find a bed for the night. Then they might have to reach out to a nonprofit that they might be aware of to try to be placed in some sort of housing, but there was no real coordinated system. the the county forming this office really was taking those resources and centralizing them. And in this system, if you're

experiencing homelessness, we have streamlined processes for you to get in touch with shelter resources with our homelessness prevention system and to be assessed for housing programs that might meet your needs. And those housing programs have a broad array of offerings and different components. Next slide, please. So, as I mentioned, we are here tonight not just in our role with the county, but as the continuum of care, which is a broad group of stakeholders in our community who are dedicated to ending and preventing homelessness. You can see that this group includes people with lived experience of homelessness, many government partners, nonprofit partners, philanthropic community, the private sector, and our overall community. This really ensures that our implementation of our programs and policies and resources is really communitywide and ensures our effectiveness as a system and accountability. The county of Santa Clara in our community serves as the lead agency um for the continuum of care. There are different models in different communities. It is sometimes with a community- based organization, but here in our county, we do have that role at the county. Next slide, please. We also want to talk about our collective impact model, which is our um building on our many successes bringing together this diverse group of stakeholders. all of this work, there's no one entity that can can do this work alone. And I think you all know that as a city, you have certain resources in certain roles. As a county, we have certain resources in certain roles. No one has enough resources, frankly, to meet the intense needs that we see. But bringing together all of these partners

across all of these different sectors helps us to make sure that we are maximizing and leveraging our approach to ending homelessness. Next slide, please. Uh, next slide. Thank you. So, every 5 years we work on a communitywide plan to end homelessness, which is why we're here tonight to give you a preview of our upcoming draft community plan and the community feedback that we're looking for. The first plan was developed in 2015 and the second was developed in 2020 and just wrapped up at the end of 2025. We wanted to quickly share some results of that plan with you. Next slide. So, one of our top goals of the 2025 community plan was to house 20,000 people, which we are very pleased to report to you tonight that we did achieve. Um, you can see in the graph the number of folks that were housed by year. And um we are just incredibly pleased that this is 20,830 people in our community who were formerly unhoused and they are in some sort of permanent placement that effectively ended their homelessness. Another thing we want to raise up to all of you is that our results are showing that this work is really helping our community. Over 90% of the people that we're placing into long-term housing are staying housed over time. Next slide, please. We also wanted to share some information about the people who make up the 20,000 people who are housed. So 47% of those folks were chronically homeless, which is a person who's experienced homelessness for more than a year and has a disabling condition. We also saw

that about a quarter of them were families with children. Um 13% were young adults, 15% were veterans, and 9% were seniors. And of course, some of these categories can be overlapping, so someone could fall into multiple categories. What this shows us is that we need a broad array of housing solutions for folks because we see folks in a variety of situations that have led to their homelessness and who need different types of interventions to end or prevent their homelessness. So, we'll talk a little bit more about that throughout our presentation. Next slide, please. We also established a goal to double our temporary housing and shelter capacity across the county. And we are pleased to report that while we didn't quite double it, we did increase capacity by 82%. So before 2020, we had about 1,800 shelter beds across the county and as of 2025, we have 3,400. Also during that time, we had 27,000 people who we were serving in temporary housing or shelter programs over that 5-year period. So, we also saw a really broad array of different types of interventions. And I think one of the things that we're seeing is more shelters that include things like like kitchenetses and uh private bathroom space, which really helps for the dignity of folks who are experiencing homelessness and coming off the streets and transitioning into more stable and permanent housing. We've also seen a lot of new safe parking programs and safe RV parking programs come online. So just again different types of interventions to meet the different needs. Next slide please. We also served over 38,000 people in our homelessness prevention programs over

those 5 years of the plan. And one of the most effective and trauma avoiding approaches to homelessness and ending homelessness is preventing it before it begins in the first place. It's also incredibly effective from a financial and economic perspective as well to prevent households from becoming homelessness. prevents a lot of need of using public systems and other services that are much higher costs to deliver. We're pleased to say that over 93% of families remain stably housed while they're receiving our homelessness prevention services and over only one year later only 5% of households became homeless. One of our community plan goals was to increase our capacity in our homelessness prevention program and that has increased 75% since January of 2020 and we are serving over 25 households per year in these programs. Our community is a model that is being replicated nationwide in 10 different communities. Now we have um built this from the ground of a pilot program back in 2017 that served a few hundred families and tried to prove up this model of providing flexible and right-sized financial assistance to folks to help them stabilize their living situation and keep them housed and case management to help them address any of the issues that led to instability in their housing and legal services as needed to prevent eviction. Um, and so we're just thrilled that the model is proven up by research and is being replicated nationwide. Next slide, please. And finally, one of the most difficult issues that we face is just the ongoing

inflow of folks entering homelessness each year. And when the plan began, for every one household that was being housed, another two and a half households became homeless. So obviously that is not a ratio that we like to see. We would prefer that no one became homeless in the first place. But for those who do become homeless, we would like to be able to be housing folks at the same rate so that we reach what we call functional zero. We have reduced the new households becoming homeless by 19%, we were hoping to reduce it by 30% over the plan. And I think this really just speaks to some of the very challenging and intractable issues that we face and that are faced across California and across the nation, but in particular in high-cost communities such as ours where it is very difficult to find affordable housing. We've definitely made strides on that by hugely increasing our supply of supportive and affordable housing through the 2016 measure affordable housing bond that the voters passed and that has been um very successfully implemented across our community. But we're also facing huge challenges and headwinds as I know all of you are very aware. So with that I'm going to hand the presentation over to my colleague for some detailed information about Militus. Thank you so much and thank you again for having us. Um, as Hillary Matt said, I'm Laura Tea Fuentes. I'm the continuum of care program manager that sits in the office of supportive housing. Um, so Hillary shared some really great outcomes of our community plan and I just wanted to share what this means for the residents of Milpas. Um, as you can see on the Oh, next slide please. Thank you. Um, as you can see on this slide, we've broken out um, some of the

services that are offered. And so over the plan um, over the 5 years, 855 people were housed. Of those 20,000 um, that were Malpa's residents. For people that were served in temporary shel temporary housing or shelter, we have um, 1,500 uh, families and individuals that were served out of that total. Um and then 991 families were prevented from or households and people were prevented from experiencing homelessness in the first place. As Hillary shared um we wanted to reduce our um inflow numbers. Those coming into the system for the very first time. Um for Milita's residents it was um in 2025 for every one household housed another 1.6 became homeless. So again more work to do but we have reduced um some of that inflow over time. Next slide please. Thank you. I also wanted to share a snapshot of um people served household serves over the last years um over the last year in 2025. So if we're looking at those um people coming from Milita and you can Milpidas and you can see um what Milita's affiliated means in the um left bottom corner there. Um and I just like to highlight a few of them for permanent supportive housing. This was 185 households that were placed in that program um providing rental assistance and supportive services. Rapid rehousing served 90 households and we prevented 66 households um from experiencing homelessness. On the shelter front, we housed um sorry, we um served 237 families and individuals um over the

last um 2025 year. Next slide, please. If we're looking at this in terms of numbers, um you can see that um housing and um serving folks from Milpetas um resulted in over um $10.5 million investment over these three programs. The 185 households that were served with permanent supportive housing, long-term supports and supportive services for the most um critical in need was 6.5 million in investment. Rapid rehousing for those 90 households was 2.6 million. And again, as we um helped to have um households prevent preventing them from falling into homelessness in the first place um was a million dollars for those 66 households. This next slide, please. We also wanted to highlight um partnerships between the county and Milpas and the great investments that have happened um for these sitebased placements in affordable housing development. There was $69.5 million um invested in um developments like Hillview Court and the Millan Maine. And um you can also see on the right the supportive services um over $2 million just that goes to supportive services to support those residents at the developments. These are um sites that are placed here in um Militas and um a lot of our other um uh the other data that we covered are um tenant based vouchers that can be used anywhere in the community. Um but we track those residents um as residing and originating from Milpas but these are um actually placed here in Milpas themselves. Next slide please.

Thank you. So we've been working um for over the last year on the next iteration of the five-year plan. Like Hillary said, every 5 years we um do this together to update our plan and make sure that our strategies are working for what our community looks like. Now, we want to really start by thanking Milita's um staff for being involved in this process. We've been working with um many staff across the uh various cities across the county on um getting their thoughts early on in the process and getting their feedback and um Milita staff was no exception. they joined in and were deeply engaged along with many um nonprof nonprofit partners um people with lived experience etc that have gotten us to this point. So we really are thankful for to them. Next slide please. You can see in our timeline that we started last spring. Um this process so far has included a lot of different types of qualitative and um quantitative data collection and analysis and really deep engagement from our partners. Like I said, there was um all of our cities have been engaged. There's community based organizations, lived experience partners, youth and young adults, um behavioral health, criminal legal sector, like there's been a lot of different partners involved in coming to the table to make sure that we shape our community plan. um in the most informed way possible. We are now excitingly in the committee input phase of the draft plan. You have the draft plan attached, but it's also available on our website. Um and so over the next couple of months, we'll be finalizing the plan based on community input. We will bring the finalized plan to the continuum of care board, which is this decision-making body of the COC. um and they will adopt the plan and then we

will come back to you other cities and other partners for endorsements um in the fall. Next slide please. I want to go over the four key focus areas. Um so we start number one with the most trauma-informed humane cost-effective intervention that is available to us prevention. and um building on ways that we can prevent people from um becoming homeless in the first place. Number two, we want to focus on the continuum of housing programs from helping people from safe parking and temporary housing all the way to permanent housing and also helping them retain their housing over time. Third, while we know that permanent housing is the solution to homelessness, we also know that there's many people experiencing unsheltered homelessness and that are outside today on our streets and it's important to improve access to critical services as they work on their homelessness. Um, and then we know that while we do this work, we know that it's um the people that know what's most effective, what should be prioritized, what the real challenges are are those that experience homelessness and housing instability themselves. And so we are working with them to lead on these strategies, which is um strategy 4. Next slide, please. As I mentioned, we are in the community input phase of our timeline. Um we will touch on the subregional plans but we are also going to be developing subregional um plans um in the next few months and then again coming back to the COC board for final adoption once the plan is finalized and coming to the fall to um seek endorsements from our partners at the

cities and other key partners like the housing authority. Next slide please. So subregional plans is a new aspect of the community plan and it's something that we're really excited about. Um we've looked at the county and um seen that there's shared characteristics, priorities and populations in um these different groupings. So, we've been working with a north county group, a west valley group, a south county group, and s um city of San Jose um and really working with them um over the next few months to um create a plan um that's really going to serve as a roadmap in ways um to help us align with the community plan. So, it's not going to replicate the plan. It's just really going to help these sub regions work together and um on their shared goals and strategies and priorities that align with the plan. Um so we're excited to to explore what this means for each um region um as we're working on how we can address these challenges together. Next slide, please. As I mentioned, we are in the community input plan um or community input phase and there are four in-person convenings. Um the north county convening is going to be next week on Thursday. Um and it will be in the Mitchell Park Community Center in Palo Alto. Um there will be anyone can come to any of the sessions. It doesn't have to be, you know, split up by by any sort of region. Um, it's open and welcome to all. We will also have a virtual convening on May 21st for those that cannot make any of the in-person convenings. Uh, we also have a form on our website for those that cannot make any convening, whether

virtual or in person, and um, still wants to receive a survey to to um, submit their input. The plan is posted on our website. Each of the convenings has um their own flyer in translate into multiple languages. Um and there will be um language resources on site for translation services. Um and we will also compensate those that have lived experience of homelessness for attending as well. Last slide, please. And of course, we're interested in hearing your feedback on the plan. um once you've reviewed it and we'd love for you to consider these questions as you are reviewing it. Um one is are the focus areas included in the plan reflective of the needs and goals of your community. Um next, what kind of information or strategies would you like to see included as part of your subreional plan? And also, how can we work with you to get the information out to your community about the work that we do collectively? Thank you so much for your time and we look forward to answering any questions you may have.

Okay, thank you very much for that presentation. Um, see is there any anyone from the public that would like to comment on this presentation? I have no public speaker cards, mayor.

Okay. And I don't see anyone from the public. Right now is the time. Anyone? Okay. So, we will um go ahead and uh take some questions from the city council. Any questions? We have a vice mayor. Thank you for the very informative information you provided. So I'm uh I didn't know uh that at least uh the statistics for uh homelessness in Milpas. Uh would you have uh any data as to the sub uh population uh what are rampant in Milpas as to the chronically homeless families with children, young adults, veterans and seniors? Do we have that data about Militas?

Thank you, Vice Mayor Barbadio, for the question. Um, I am checking, we did bring our city report with us. Um, and I am checking that now to see if that has information about chronic homelessness. Um it does show that of the folks who were assessed from the city of Militus about 138 um so about 60% qualified for permanent supportive housing which would indicate that they have a chronic uh disability and are experiencing um chronic homelessness. But in terms of the folks who were housed over that time period, we can get back to um staff with that breakdown in terms of their household characteristics.

Okay. Yeah. Uh if if you could uh please just I I just want to know uh what percentages are young adults so we can develop uh you know programs or policies to more help them uh strategically as to their classification. uh the veterans. So maybe we could coordinate with our veterans commission if we know the data and the seniors and and everybody. So we know the the subcategory of what kind of homelessness is uh being experienced by Milpas and we can you know channel resources probably specifically for those uh uh subcategories.

Thank you very much. And I do have information about the age tiers. So we do um we do show that 12% were young adults between the ages of 18 to 24 and um about 22% were 55 or older. So you've got um some portion um about almost a quarter who are seniors and then about 12% who are young adults. And I will look to see if I have the veterans info on hand, but I don't know that I do. So we can follow up with that. And you have been coordinating with uh which department uh with the city. So it's the office of housing out of the city manager's office.

Okay. Yeah. If you have more information later on it's I calculated the percentage about 5% uh of uh the data is coming from Militas. So maybe that's something that uh we could look on. Thank you. Thank you for the information. Thank you, uh, Vice Mayor. Is there anyone else that would like to make any comments? We have, uh, Council Member Lamb.

Uh, yes. Um, after going through your plan, seems that your plan is focused on housing. If if I understand correctly, 70 80% of the homelessnesses um they have um either mental issues or alcohol issues or um drugs issues. I don't see any um plans on um mental health rehabs. Um I would like to see more of those. Um yes,

thank you council member for your feedback. Um one thing that I do want to state um and then we can certainly look in the plan. But I I think all of those services, behavioral health services, substance use services are all included and critical parts of supportive housing. So when we house someone in supportive housing, we're wrapping them with services that meet them where they are. And those include intensive case management and connection with those behavioral health services and substance use services and medical home if all of those are needed. Um, you know, our community operates on a housing first model and that is a proven model that has shown that it is the most effective way to treat folks who are experiencing some of those issues. And I do want to be clear, not everyone experiencing homelessness and not everyone experiencing chronic homelessness has either mental health or substance use issues. But we do see that for those folks who do have mental health and substance use services, the most effective model is to get a roof over their head so that then they have that stability and have that sightbased or intensive case management that is connecting them to services and getting them those services they need while stabilizing them in permanent housing where they can live for the rest of their lives. So, but we will certainly look at the plan and I believe in um focus area three which is really focused on um on the um unsheltered population but also um just expanding service delivery options to reach those folks. And sub

strategy C on focused area 3 looks at coordinating between behavioral health, homeless service providers and public safety. um and also just expanding access to behavioral health services. But we'll certainly keep looking at ways we can integrate those critical services into the plan.

Um yeah, it's critical that uh even you put a roof um on top of the head, but you just threw them into a room and um those surfaces are very important. A lot of homelesses uh well the homeless people who might not um like to be refined in a room. So even you put them in a room they might not be happy. So um yeah that's why I bring that up. U the mental issue could be a major issues. Thank you, council member. And absolutely, that is one of the core components of supportive housing is that folks aren't just left isolated, that they're both wrapped around with services and also in our sitebased supportive housing, really working to create vibrant communities. And so some of our um site-based supportive housing is in buildings where everyone is formerly unhoused and some of it is a blend of folks who are in affordable units and folks who have previously experienced homelessness. But either way, we have on-site teams both for services teams who are providing those wraparound intensive services and also property management and resident services where it's really building that community so folks aren't isolated so they have support so they have on-site meetings and activities and enrichment and for folks who are ready for you know kind of job training or other services they have the access to those.

Okay. Thank you. Thank you very much. Okay. Thank you, uh, Council Member Lamb. Anyone else? We have a Council Member, um, Leanne.

Hi, Hillary. So, can you share with us out of the, um, 855 micians that you housed, how did you find them or what outreach um, to get them there? and also share the details of the prevention um in that for that 991 members. Thank you.

Thank you, Council Member Lean. So for the 855 folks who were housed, these are folks who were experiencing homelessness and we know that because they came into our system through one of our no wrong door coordinated entry uh providers. And so we have a really broad network of community- based organizations throughout the county where folks can undergo this assessment um for um services and housing if they're experiencing homelessness. So that homeless management information system is how we know that folks are in need of this service. And then when a housing opportunity becomes available, we're able to connect with them either directly through their contact information that's in the system or through case managers or like you said outreach workers who are able to know where folks are staying and reach out to them, let them know that a housing opportunity is available. And then we have a client engagement team at the office of supportive housing that works handinhand with folks to get them ready to apply for apartments because getting into supportive housing it is applying for an apartment and it's getting a lease and so getting folks all of their documents getting them document ready um getting them any information they need and also frankly getting them ready to live in a home. And so, um, they h they do everything from, like I said, all of those documents to welcome packages, making sure that their clients moving into a home have pots and pans and sheets for the bed and all of those things that you think about um, someone coming off the streets wouldn't have or from a shelter. Um, and so that is one of the components. Um, you know, there's also outreach folks throughout the county who are connecting with folks who

are unsheltered, making sure that they have been assessed. Um we have a um really unique component of our HMIS system where someone who's unhoused can have essentially like an it's a version of an electronic health record where they can say oh here I like have this app and I can tell my case worker where I'm staying how to reach me if a housing opportunity comes up and I can communicate with my case manager that way. So, it's kind of trying to meet everyone where they're at. Some folks obviously won't be able to navigate that type of system, but for some folks, that's really great and empowering way. For other folks who may be experiencing um more symptoms of a disability, um the outreach workers would do more to kind of help guide them through the system. Um and then for your second question about details regarding prevention, um so we have a really robust countywide prevention system. um with an investment from various partners including the county cities um in particular the city of San Jose um and um different health like our managed care plans are invested in it and we're leveraging sources of funding like medical and um cow works for folks who are already receiving those benefits. Um so those folks would um access services through a network of 20 community- based organizations. This program also has a no wrong door approach where um there is a centralized intake line but they can also access any of the individual agencies which many of them are basic needs providers that are known in the community um and say you know I'm behind on my rent. I'm facing a a risk of homelessness. I'm being evicted. Um and then they are assessed

for eligibility and they are provided with um very quick turnaround financial assistance that can help them catch up on their rent. Um can help with other expenses that are getting in the way of their housing stability. And then they're connected with case management to help resolve the situations that led them like was it a job loss? Was it a a medical emergency in the family and really make sure that that household is stabilized? and then legal services if they need it for if they're already in court proceedings.

Council member just may oh sorry briefly add um part of the outreach teams in Milpus specifically are um we hope who is a partner that we use as a city for outreach and uh the nonprofit hope for the unhoused. So those are two of the partners that are in Militus that are part of the network that was mentioned. Okay. I thought so too. Um one one more question for you Hillary. Um, and Matt, you cut me and I forgot what the question is. Sorry.

No, no, no. Okay. Um, what is the capacity that you can house and how long is your weight list? And do you prioritize case by case or you going from the list, top down? Those are excellent questions, council member. Thank you. So, I'll start with the prioritization. Um, so the way that coordinated entry um and the assessment for housing work is the prioritization is based on vulnerability. Um, and so it's looking at folks who are the most in need of a roof over their heads to basically stay alive, stabilize their health and um, you know, address any kind of of the multiple factors that are leading to their homelessness. So it is not a first come first served in order weight list. it is um tied to this assessment and their score on the assessment which will put them in a band for the housing intervention. And so permanent supportive housing is the most intensive intervention that we've talked a bit about that model tonight. And that really um is for folks who have this chronic homelessness um have a chronic disability or multiple disabilities um probably aren't going to be able to work full-time again. Although many people do work um who are experiencing homelessness and need those wraparound supportive services. The next level of intervention is rapid rehousing. And so that's really um for folks whose homelessness may be more situational like a job loss or a change in family composition

um or other you know kind of medical challenges that are not permanent or ongoing. Um and so that model includes a subsidized um a housing subsidy for a period of usually two years um to help people find housing, stay get placed in that housing, subsidize their housing, and then provide those intensive services to help them stabilize so that then they can take over the rent for that housing going forward. Um and then if folks don't score in either of those ranges, there's also um you know kind of more timelimited interventions that we have such as housing problem solving which is also a shelter diversion model where it's really trying to provide someone with flexible financial assistance that might be able to quickly resolve their homelessness. Um you know and sometimes that's just enough money to get a first and last month deposit. um and um or like relocation assistance if they have um somewhere stable to go and just need help to get there. So, those are some of the examples. Um for your first question on the capacity, I might need to pull that up, but our I believe Oh, I do have that with me tonight. Um so, let me if I can just have a minute on that one, I can tell you our capacity level. Well, you look up for that. Um, one other question too. So, when you talk about the diversion program, you do work with the DA office. So there's um there are definitely criminal legal diversion programs and we are um we do work with the criminal legal system and including um our county's office of re-entry and diversion services who are connected with the DAS. Um this in terms of shelter diversion, it's it's more of

just if folks are in need of shelter um we work with them to see if there's another way that we can help them resolve their homelessness. So great. Thank you. Um, okay. So, I have our program capacity. Um, and as of January 2026, we have 400 4,667 uh units of permanent supportive housing in our community and 1,622 rapid rehousing and about 350 transitional housing. Um and then in terms of emergency shelter, we've talked about we have about 3,000 beds um and and a few more. And then um homelessness prevention, we're serving over 200 households. Um in terms of the wait time, it very much depends on um the availability and turnover of units. And so with the implementation of our measure A housing bond, we have large um lease ups that happen kind of all in one chunk. So when a new building like Sango Court opened in Milpas over the last couple of years and so when a building like that is opening up that has a number of units for folks who are formerly unhoused then you know a lot of people will be pulled from the queue who are eligible for whichever service is being provided at that building. Um, but we are coming to the board of supervisors later, I believe in May, um, with information about weight times and so I can check in with our staff who are pulling that information from the community queue and follow up with staff here.

Thank you. Thank you, mayor. Okay. Thank you very much. Anyone else? We have council member Lamb.

Hi. Um, I have one more question for you. Um there are number of um a number of people has mentioned to me in the past. Um there are some mental health or mental hospital in Sur has been closed in the past years. Um have you guys thought of reopen those facility and and use those facility to house some of the um mental uh people with mental health uh and drugs addictions into those facilities.

Thank you for the question, Council Member Lamb. Um, I am aware actually of efforts to bring on more beds to that provide services across kind of the continuum of behavioral health services, including inpatient treatment in our community. We can reach out to our colleagues at behavioral health to get a little more solid information on those numbers. Um, but I know that they report quarterly to our board on the efforts to expand capacity. um for mental health, behavioral health beds. Um that being said, your point is taken on kind of making sure that we're maximizing use of any available facilities that might be good for housing. So either um we look at this two different ways. So either in terms of facilities that could be converted to temporary shelter um or that could become permanent housing either through like a conversion process or land. Um and so we have a number of projects funded through the measure A affordable housing bond that are taking advantage of um publiclyowned land. And so um that can look a couple of different ways. So, we work with like the VTA transit agency and we have a number of transit oriented development projects in the works. Um, we just had an opening at Tomian Station in San Jose and there are a couple of others coming online um over the next few years. We also have county-owned land um that we're looking to develop into affordable housing throughout the community. So, I think um very well taken and I think we're always open to thinking through the different models that can be used for housing. I think one of the challenges with expansion of shelter which we are very much focused on is ensuring sustainability of operations because it is very expensive

to operate um and to wrap folks with around with those services that they need. Um and funding shelter is different than funding affordable housing because there's not like an income source and you're not able to finance it the way you can finance affordable housing. So that's just one of those uh challenges that we have to balance as we look at developing the different models. But your point is very well taken in terms of maximizing um any sort of spaces in our community that can be kind of easily adapted to provide shelter and permanent housing. Okay.

Thank you, Council Member Lamb. Is there anyone else? Okay, I have a couple of questions. Thank you very much. Um, so what is your annual budget for the Office of Supportive Housing? Thank you for that question, Mayor Montano. Um, I will have to look that up. I know I just recently did, but I believe it's in the $130 million range. I'll look it up. It might take me a moment. And just I want your opinion. And what do you what do you feel is the main reason or the keep for people becoming homeless?

Thank you, mayor. We see and the research shows that the lack of affordable housing is the main reason for people becoming homeless.

Yeah. Okay. Um, and then, um, I know that you guys provide subcontractors. You you pay subcontractors to provide beds and I'm just wondering how much do you pay those these sub how much do you pay these subcontractors? So, in our presentation where we show the um the cost of providing services, that's kind of an average and that includes the rental assistance, but I could get back to you with the um amounts for um like the the rate for instance for services for someone who's receiving supportive housing.

Yeah. Uh then and the reason why I asked it was um was a an agency I guess the county cut their budget or you know everybody's cutting cities, counties, state and so they the county cut the budget on um for these subcontractors cuz they provide beds for the homeless. And um I and I remember they he was he was telling me that they that the county was paying like $500 a week for them to provide a bed. I go, "Wow, that's a lot of money." Or I think he said $500 a day or $500 a week. I I don't remember. But um that I think that was pretty pretty expensive. Um I'm wondering Yeah. So, it it just seems to me that uh when the governor started providing more assistance, then then all of a sudden these all these nonprofits popped up because the count the state was giving money, a lots lots of money to the to the counties to provide housing. But the but the one of the things that happened is a lot of nonprofits showed up popped up to help these help the unhoused. But I'm wondering in that case um you know how how do you how do you prioritize because there's different types of homelessness. You have the working poor, you have the mentally ill, you have the criminal element, especially when they closed down all the pu a lot of the prisons. Then you have um people that are you know disabled and and then you have the veterans. So you have different types of stuff. Who do how do you prioritize who gets the housing?

Thanks so much for that question, Mayor Monto, and you're speaking to the real kind of cross-section of our community that's impacted by homelessness and um at risk of homelessness. And so I think there's a couple of things that go into this. First of all, I think that speaks to the importance of having a broad array of interventions and services available to folks. So, I think, you know, our prevention programs serve folks in each of those categories that you've described. Um, you know, permanent supportive housing, like I said, is really focused on folks who are experiencing more chronic homelessness and may have more disabilities. Um, and then you know when you're speaking of folks who are are working and either at risk of or experiencing homelessness, we know many folks who are unsheltered or at risk of homelessness or couch surfing who are working full-time um and going out to do the pit count. You know, speaking to people who are sleeping in their cars and getting ready for work. Um, so that's that's a real reality for our community. And I think you know that those many folks who are working and experiencing homelessness really fall into that rapid rehousing category where it's like how can we help you kind of get to where you can either like find an affordable unit or you know in and increase your income so that you can sustain that unit after the subsidy um is is concluded in terms of specific subops. So it's it as the there's a process called matchmaking. So as someone is assessed for housing and their vulnerability score kind of qualifies them in a certain range, then they're matched. So first of all, there's family size. So we have everything from studios to three-bedroom apartments available. Um and so that's a component is what is the family size? There are certain units that are set aside for veterans. um either, you know,

through certain funding sources like the Home Key Plus program from the state or from the VASH um HUDVASH vouchers. Um and then there are other units that are specifically for folks with serious mental illness um through the um PLA, no, not PLA, but a different I understand that, but my question was how do you prioritize them? Um, so I think that's what I'm trying to say, and apologies if I wasn't clear, that it's about having an array of options for folks so that when we're matchmaking, we're able to meet their needs in that. And so that's

Yeah. And the reason why I'm asking is because for me, uh, you know, you're right. It's it's the the the lack of affordable housing is is one of the biggest, um, precursors to homelessness. And, uh, I'm I'm really concerned about the working poor, people that are working, you know, hard and they just can't seem to pay the rent because it's just so expensive. Uh, but I think the county needs to focus on the working poor. Um, because I I know some people that work have worked in the office of supporting housing and you guys have a a a priority priority and the ones that have the priority are the people that you know have uh substance abuse problems that people that are prostitutes and people that are out in the street. You know, you talk about prevention, but if you really really want to stop or or make a dent in homelessness, it's you you got to focus on the working poor because we're trying to prevent them from becoming homeless. And um I really would like to see the county focus on children, families, families that are um that are working and they're working hard, but they just can't seem to pay the rent. That's what I would like the county to to focus on. And we have a home key here in Militas. I'm sure well you you have it listed here but um I'm hoping I have we haven't had a meeting for a couple of week a couple of maybe four months now but um yeah I'm hoping that if things have improved you know I guess we'll we'll find out next week but uh yeah so when I think it's focus area number two I think prioritize development of housing for extremely lowincome individuals and family and families families making 30% % of the area median income. Those those are the people that the working poor bottom line is the working poor. They need help and

they're they're not uh they're not getting prioritized. So those are my thoughts. Okay. Anyone else? We have uh you have you have a question. We have our city manager. Just a quick yes no question on on the data sets. So for the 27,000 and 27,037 temporary housing over the 5year span, if somebody was in temporary housing in 2024 and also in 2025, are they counted twice? I believe the number is unduplicated. Oh, it's but I can double check that. Thank you for the question. We'll follow up.

The other question would also be if somebody was in temporary housing and then they transition to permanent housing in that same 5-year period, are they counted in both categories? Yes, they would be because we're serving them in temporary housing, but then we don't consider them housed until they're in permanent housing. Okay. And then uh I know that the uh assistant city manager mentioned we hope and hope for the unhoused, which are city funded uh one is a volunteer organization, the other one's city funded through contract. And you had mentioned that the county has employees and contract entities that you guys deal with. How frequently are the county entities or county employees in Malpus working on assessments or is it solely on we hope and hopefully the unhoused?

Um I go thank you for that question. I could follow up with our team. I know that one of our specific outreach teams is very focused on kind of high needs high acuity folks. Um, and I know that they're in in, you know, kind of regular contact with city funded outreach services, but I could follow up to learn a little bit more about that.

Yeah, one of the things that would probably help us as a city knowing the fiscal situation and and the county's funded to operate h homeless prevention and outreach countywide. It would be nice to see some of those resources here. And my last question is with the um introduction of BART into Santa Clara County, we do see homelessness from Alama County, even San Francisco County coming into um Santa Clara County and Milpus is, you know, the first stop from Alama County. So, how does your plan interact with Alama County or other counties being that transient folks move across the Bay Area?

Thank you, city manager, and you're absolutely right. I think um homelessness doesn't know kind of city boundaries, county boundaries and that is a challenge because we are kind of set up our systems around funding and the way that our public entities are kind of set up to operate. So what I would say to that is that we are constantly working across the Bay Area with other um entities, other COC's to understand the kind of es and flows and trends of homelessness. Um in your um I think the the northernmost and southernmost parts of our county really see more of that cross county lines. You see that with Alama County and um in up the peninsula we see that with um Sanonteo County. So we think um that is something that we could probably work into these subregional plans um to really have that crossount collaboration more called out. Appreciate that.

Thank you Hillary. Thank you Laura. Okay. Any anyone else? All right. That's the end of that presentation. Thank you so much for that presentation and um hopefully we can make some improvements. Okay. Um now we're moving on to uh the 16 the uh hold on a minute. It's the public public hearings. Okay. Go ahead.

Thank you, mayor. So the the next uh item for council this evening is item number 16 is to conduct a public hearing and approve the reissuance of a tax equity and fiscal responsibility act uh tax exempt revenue bond by the California Municipal Finance Authority for an amount not exceeding $47 million for an affordable housing development located at 308 Sango Court. And the presenter will be assistant city manager Matt Kino. Oh, there we go. Thank you. Have a brief presentation for you this evening. Next slide, please. As background, the California Municipal Finance Authority issues tax exempt bonds for projects such as affordable housing. On April 19th, 2022, the MPUA City Council authorized these bonds um 47 million of these bonds for a project at 308 Sango Court. These bonds are to provide assistance for acquisition, construction, improvements, and equipment. Next slide, please. 308 Sango Court is uh the borrow is borrower, a developer, Milpedita Pacific Associates, and the developer is Pacific West Communities. There's 84 affordable uh apartment units with one manager's unit, 80% lowincome and 20% moderate income households. The city council approved the overall project on in 2021 and we executed an agreement to govern the affordability of the project in November 2024. Next slide, please. So the even though those bonds were already issued and approved by the city council, the state and the borrower are proposing to extend the maturity date uh the payment date of the previously issued bonds which requires the reissuance of the bonds. Um, per state regulations, this requires a publicly noticed hearing and it requires it to be approved by the Milita City Council as the responsible government representative, the elected body with

the jurisdiction over the area where the project is located. Next slide, please. Some important notes and there's much more detail in the agenda report on this as well. The borrower and developer will continue to be solely responsible for the repayment of the bonds. The city will not have any financial or other obligation, liability, or responsibility for the project or the repayment of the bonds. The financing documents carry this disclaimer that the debt is not the obligation of the city. We don't bear any costs related to the issuance of the bonds. We are not going to issue uh receive an additional fee for this extension of the the maturity date, but we did receive a onetime $20,000 payment um handful of years ago when the bonds were first issued. Next slide, please. So, our recommendation this evening is to conduct a public hearing under the requirements of TERA and adopt the resolution approving the reissuance of taxexempt revenue bonds by the California Municipal Finance Authority for the benefit of Malpedus Pacific Associates for an amount not to exceed $47 million for a multifamily affordable housing development located at 308 Sango Court pursuant to the requirements of TERA. And I'm here this evening um to answer any questions you may have um on this project.

Okay. Thank you. Um, Matt Kano, um, I have one question. Why Why is the Is it Tet is it Tetra? Terra, are they the ones asking for an extension or is it the Is it the state? It's the So, TERA is the um the type of bonds. It's the name of the program that the state runs. And so it's a combination of the borrower um and the state of California together have agreed that they want to extend the maturity date of these bonds. So it's just together it's likely the borrower um that has asked the state but it's basically the joint request from both of them for to extend the date of these bonds.

So but what's the advantage of that to extend it? So I do have uh we do have on Zoom a representative the developer for more detailed questions but ultimately the it's a timeline um issue is for the repayment um additionally the bonds had a certain timeline incorporated into them regarding when they needed to be repaid and they're extending that timeline likely due to the just the schedule for the project not being what they originally expected. Okay. And the project is already done. People are living in the project already. Correct. Okay. All right. Anyone have any questions? But it's not going to cost the city anything. Correct.

And you mentioned something about 20,000. What's that? What was that? Yes. So, when these um are originally issued um typically there's a onetime dollar amount that the governing jurisdiction will receive as part of this package. And so, we did receive that onetime dollar amount um back in um when these bonds were originally issued a handful of years ago. And um we don't per the state guidelines for these bonds, we don't receive another one-time dollar amount just because they're extending the maturity date. Okay. But we did receive that dollar amount already. So, but who who's at the end of the day, who owns that property? Who's going to own it? Is it the is it the since it's a bond, who's going to who's going to own it?

So, yeah. So, the city does not have any ownership interest in the property. it's the um um the developer or or the well I can find out the exact answer and get back to you but it's either it's a combination of the borrower and developer um one of them or the entity Pacific West Associates and so what I can do mayor is I can get back to you with the specific name of the entity that will own it but it's the developer not the city.

Yeah. It's just I'm just concerned because in the short term, you know, it sounds good. You're providing homes for the unhoused or for people that are low income, but I think after like 50 years and it goes then it goes back to the owner. Just the same thing that happened with Sunny Hills, you know, and then you get then the homeless become or the low income become displaced or so. I'm just curious about that. Yeah, it's after. Anybody else have any questions? We have council member Lamb. Are are those uh a rental units? Yes, they are. And they are different than session.

Um I'll see if uh someone else could help me with that question. But also um uh Suzanne, could you promote Mike Kelly on Zoom? He's representing the owner or developer and he may be able to answer the questions a little more detailed. But it is um I can get you a better a detailed response on that after the meeting on the difference on the difference between this and section 8.

I this go Mike are you on and if are you able to answer that question?

Yeah. Hi, thank you for the question. This is Mike Kelly with the Pacific Companies. Yes, it's a rental uh project and it's not programmed to be section 8. Um I don't as of right now I don't think we have any section 8 tenants. I can confirm. I mean, we can't deny uh any applicants that have section 8 and uh you know, meet all the qualification standards, but uh to rent there, they have to demonstrate income. Uh and that's usually in the form of, you know, of job and you know, they have background checks and landlord checks. So, I'd say out of our portfolio, we have over 10,000 units. I mean less than 5% uh contemplate section 8. This is not a PSH uh uh project. Um so anyway, it's it's generally 30% AMI up to 80% of the area median income is what this project targets. So hopefully that's that's helpful for you.

They say 30% a month. Mhm. How much is it is is a moderate income.

Um I don't have the I can check for you. Um but that 80% is definitely moderate. In fact, we're probably bumping up against 70% on there. We It's programmed for 80%, but 80% is mostly um it's right there bumping up against market rate. So sometimes we bring the rents down to 70% just to be competitive in the marketplace. A lot of folks uh would not want to rent there and go through all the resertification requirements if our rent is exactly the same as a market rate project say across the street. So I can confirm but the program allows for up to 80% and not above 80%. But I think that, you know, the vast majority of the higher income tenants are probably right around 70%. Just so that we can remain competitive in the marketplace.

And council member, I can follow up with the exact dollar amounts that these percentages are in a email memo to council after after tonight. Yeah. I just want to get a ballpark idea. Is it under 100,000 for moderate income or is 50,000 75,000? What is the number?

It um Well, give me a second here. I can probably pull it up. You caught me flatfooted. I apologize. So the um while I'm looking that up, I can address the ownership question for you. It is a partnership and the ultimate owner will be uh the entities that are involved in the partnership. Uh there's three uh entities right now. Uh it's myself and the Pacific Companies. I'm Kelly Ventures. And then you also have the limited partner which is a tax credit uh investor and they are uh an owner in the project. They're the ones that put in the vast majority of the tax credit equity. So let's see here.

Is that it? Yeah. Um yeah, I guess I'll wait for the staff to get Yeah. I'm I'm scrolling through. We have a a spreadsheet on our website that shows all the counties in California and the income level. And so, but DM just got a note. So, the so I'll um I'm scrolling through it to find the response. So, for a for a family of four, median income is 184,000 right now. Low income is 146. Very low is 92,000. Extremely low is 55. That's That's more than income. It's not

and your and your rents on that um you're looking at say on the low end, let's just take a twobedroom for example because you have ones, twos, and threes. Uh on the low end for a twobedroom it's uh about $1300, a little bit over and some change. Um and then at a for 50% AMI, it's a little over $2,200. 2261 to be exact. And then I would just say let's do the 70% because I think honestly I think the majority of the folks there will be right at the 70% am probably not the 80. Um is 3,165. So that's their rent for a twobedroom.

Yeah. And if you want to look at the 80%, excuse me, the 80% that's 3,618. Um, and Mike, if you don't mind, um, council, I'd be happy to, uh, work with Mike offline to get like a spreadsheet summary together showing the income levels, um, and then the rents for those income levels and provide that to the city council through an email next week. Okay. Okay. Thank you. Um, so I have a question for Mike. Mike Kelly, is that

Yes. So, um, the question is, you know, you have the partnership and you and, um, you know, it's supposed to be a win-win situation for for for for both of you or for whoever's involved, but my question is who who decides who gets to go in there be because from is it the county or the city or the city does the city have any say so because we have we have some a few well maybe not a few after this last presentation, but we some folks that are homeless and they're looking for places to rent, but the city is why aren't the residents from this city the first why don't why don't they get priority to be able to rent one of those units? Well, um, so we have I mean we have a management company and they will take applications as they are received and then they will, you know, they'll vet them based on, you know, their their qualifications. Um, I mean, fair housing law doesn't allow us to deny anybody um, you know, if if they're qualified. Um, and we don't have any type of, you know, preference or arrangement with the city. you know the the city does not have uh any uh you know any financial contribution in this project. Um so I mean so we don't have an agreement with you folks

to have preferences or anything like that. Could that have had could that could that have had happened? I mean when you guys did the contracts and all that yeah I I approached the city. It's fine. we made it work. I don't think I can ask that question. Yeah, no, no worries. I mean, I I had met with a variety of folks um when we were developing this and we made a formal request for financial assistance from the city and it was declined. Um so we accepted the decline and were able to uh develop the project without any city financial assistance. Right. All right. All right. Thank you.

You're welcome. Uh, Mayor, if I may, we I believe we still need to open the public hearing. Yes, we're going to open the public hearing now. I have no public speaker cards. Mayor, go ahead. We have Monttoayor. You're late. Thank you. I This one is the Lions Club and Knife of Columbus and of course the city.

I missed it. I had this meeting I had to go to. Anyway, um I can see here we're covered. Um if you see the terra big body, big uh big institution and then uh we're just the one doing the referee, I think. Um yeah, because there's an owner developer, but they need that amount to make it going. So, uh, let's have the ball rolling. So, the business will go. Thank you. The project will go there. All right. Thank you. All right. So, we've already done council discussion. Is there no addition speakers? Mayor,

I'm sorry. There are no additional public speakers. We can close the public hearing. Okay. We will close the public hearing now. And now going back to our council. Oh, wait. Hold on. Hold on. Sorry. All right. Go ahead. I would like to move to approve a recommendation by staff on item 16, including recommendation one and two. Okay. It was motioned by council member Chua. Is there a second? Council member Lynn. It was seconded by council member Lean. And let's call for the vote. Vice Mayor Barbadio. I. Council member Chua. I. Council member Lamb.

I. Council member Leanne I. Mayor Montano I. Okay. Thank you. So now um we'll uh move on to announcements and future agenda items. We're on item 17. 17. I wanted to hurry up and get out of here. I got you. Okay. I got you. I got you. All right. Item 17. I wanted to look what time it is. It's already going to be 9:00. We always All right. Mayor.

Okay. Go ahead. Moving on to item number 17, which is to conduct a public hearing and adopt a resolution approving the fiscal year 2627 development storm impact impact fees. schedule for the transit area specific plan and the Calveris Boulevard widening traffic impact fee and the storm drain impact fee and presenting is going to be our finance director LSE compressi.

Good evening Mayor Montano Vice Mayor Bio Council members Chuen and Lamb. I am so happy that you're you want to see us so much. So we appreciate your attention. This is our annual uh item that we bring to you. It's very standard. So, we're going to go quickly through this presentation. This is the annual increase that's dependent on a construction contract the change in a construction contracting in index year-over-year. Next slide, please. So, this is this all these fees are are governed by the cal the state of California mitigation act and our own municipal code and the city has established the following mitigation fees. the transit area specific plan, the TAS impact fee, the Calaveris Boulevard widening impact traffic impact fee, and the storm drain fee. Next slide, please. So, we'll go through these each one by one. We're starting with the task fee. To the right of your slide, you see the map of the coverage areas. In the on the left, we go through a small history of how this was all developed. And at the end of the day, the fee is a development impact fee the builders must pay for infrastructure improvements in the particular task area. The fee paid depends on the size of the respective project and helps to cover the cost of upgrading infrastructure to support those developments. The next slide please that shows you demonstrates the increase. The increase will be the same for all three fees. It's a it's based on a city construction cost index change from December to December. So the fee change, the percentage change that you're looking at is from December 24 to December 25. It's published in an industry publication of record, the engineering news record and it is for San Francisco. So it is specific to the Bay Area. And this year it is a nominal 62 basis points or it's under 1%. If you

remember last year we actually had a decrease in the construction cost index of roughly the same number. And once again just a quick explanation of that construction cost index. We always talk about the CPI which has a basket of goods. This also represents a construction cost. The construction cost index also represents a basket of goods and activities. So it represents labor the cost of materials that go into construction. So it's very specific for this use. The next slide please. Uh now the next piece is the Cal Calaveris Boulevard widening traffic impact fee. This is specific to about a onemile area segment. Uh it spans Ael Street to Milpedas Boulevard and Calveris Boulevard. And so next slide please. This following table lays out how uh the changes for the same um activities are from year-over-year. And once again it's the 62 basis points. We're using the same index. Next slide, please. This is our final storm development fee we'll be talking about today. Uh storm drainage fees are charges levied to manage costs associated with the storm water systems which protect the community from flooding during rain events. We have 112 mile miles of pipelines, about 1,400 mantles, 3,500 storm drain inlets, and 13 pump stations. uh the storm drain impact fee nexus study was uh approved by you on February 6, 2024. We taught that and it incorporated future development areas and once again these are charges to developers for pro to support projects that are in those particular areas. Next slide please. This is the table for the increase once again the 62 basis points based on the activities that are on the top half of the slide. And then the last slide please. The last slide please, is the

recommendation to conduct a public hearing which will need to open and adopt a resolution approving the FY202627 development and storm impact fee schedule for the transit area specific plan task impact fee, the Calaveris Boulevard winding traffic impact fee, and the storm drain impact fee. And with that, my presentation and over is over and we will entertain questions at your pleasure. Okay. Thank you. U finance director Cortez Corpy. So we have questions. Oh public hearing

volter mayor militas since I'm wish I was here when the homeless think but anyway forget that part. Yeah, that I'll just mention two words. Impact fee is needed in any project. Thank you. We have no additional public speaker cards. Mayor, we can now close the public hearing.

Okay, I'm going to close the public hearing and now moving it on to the console. I think you need to turn yours on. Sorry. Thank you, mayor. Seeing there are no comments for my my co colleagues, move to approve uh the recommendation by staff on item 17.

Second. Okay. Call for the vote. Well, it's let me let me let me backtrack. Mo motion by council member Chua, seconded by Mayor Montano is call for the vote. Vice Mayor Barbado I. Council member Chua I. Council member Lamb I. Council member Leanne I. Mayor Montano I. Okay. Item 18. Thank you, Mayor. Uh item 18 and the final final item of the night is to conduct a public hearing and adopt a resolution updating and establishing various users and regulatory fees. Again, our presenters, the finance director, Miss Lesio.

Good evening again. Uh this one might take us a little bit longer. Um this is the annual this is with this also comes to you on an annual basis. The difference between between the what you've seen in the past at least with this council and this this sitting of this council is you have been seeing what are called interim interim changes from year-over-year tied to inflation of salary and benefits. So this year we went out and did what we supposed to be doing every 5 years or five to seven years. The last one was done in 2019 and we did a comprehensive study of the fees and the user and regulatory fees in the city of Midas. So we do have a technical source that did that work for us and supported us in doing that work. It is clear source. They are on the line for any technical questions. And then we also have in our audience or online our representatives from each and every department that has a fee and is being changed or even left alone in the fees in the fee schedules that will be for you today. Right now I'm going to turn it over to Alice Boritch who is a budget manager who will take you through the presentation. So if we could we'd like to complete the presentation and then we can of course take any questions at your pleasure afterwards. Thank you.

Thank you Liz. Good evening um council and mayor um Alice Vir the budget manager. Can I get the next slide? So, I'm going to briefly go through the background and approach that we'd use for the fee study and the fee schedule. We're going to go over the fee schedule overview for the 2627 user and regulatory fees. Going to give you a handful of fee examples and then we're going to go through our recommendation. Next slide, please. So, this is a user and regulatory fee schedule. A user fee are the amounts that we charge for the government activity that we per that we use to perform the service um for individual business or group. This is not for a service performed on the community as a whole. The regulatory fees are amounts charged for city costs for licensing, permits, inspections and other regulatory activities that the city pro provides. And then this fee schedule does exclude the development impact fees and utility rates. Um the development fee impact fees you just heard from LSE um just before this next slide. So a little background, our communities use our tax revenues to fund the services on a broad scale. So your public works, your public safety, your police and fire and your parks and maintenance of those parks. The fees and charges that we are looking at here are to fund services that provide a direct benefit such as plan review, permit processing, permit inspections and so on. Next slide, please. Some of the guidance that we use is for our cost of service. These are costs that the payer um our taxpayers should bear based on a fair and reasonable relationship of their burdens or benefits received by the government

activity. Our cost recovery guidance are that fees should not exceed the reasonable cost to provide that service that we're charging the fee for. Next slide, please. The fee update process that we usually go through here in Milpedus is we have every five years typically um we do a comprehensive fee study which that's what we are currently looking at today. Um then between those five years we do inflationary adjustments applied in between and then we have our 2627 proposed fees which I mentioned are based on our recently completed fee study. Next slide please. the general overview. Um, we did take we council approved the 2526 fee schedule back in December. So, the what we're looking at now are the changes between what you approved in December and what you're we're asking you to approve tonight. And this is um for the recreation and community services. There's no change to the city policy. 3-2. Public safety activities increased on average about 1.33% and all other fees and charges based on the cost of service for typical staff review time increased about 1.87%. Next slide, please. So, some of these specific examples, um, I'm not going to go through each and every one of these, but our building, an example would be an occupancy for tenant tenant improvement, um, for a 500 ft² tenant improvement for plan review and inspection fees combined would increase this with this new proposed fee schedule from $4,229 to $4,820, which would give you an increase of

$591. Another um would be the plan review and inspection fees for an alarm system on a building of 5,000 square ft would increase from $1,475 an increase of about $33 to $1,5008. Um in planning we have um a minor conditional use permit would increase from about 1526 to 3,646. This is a large increase of 2,120 but that's due to the um need for public hearing requirement which raises the cost of that service that we're performing and we are including that cost. Um lastly, police alarms permits and false alarm response. Police permits are looking to increase I'm sorry, police reports we're looking to increase for a 10page report um from $13 to $15. Um, and administrative tow fees for an impounded vehicle would increase approximately $19 from $346 to $365. Next slide, please. So, here's a broad overview of all of the fees that we looked at in this fee study with Clear Source with all of our individual departments. We looked at 655 fees. Um, majority of these fees that we looked at, about 70% 71% were fees that either remained unchanged or had very minor increases up to 10% or within $10. Um, we had another about 10% that changed based on project criteria. So, these would have either increased or decreased. We also restructured a significant amount of fees that ended up resulting about 4% We have new fees um

of six new fees and then um we have about 46 fees that are increased about over 10%. And I missed the big biggest one. The fees to decrease was about 45 fees and almost 7%. Approximately 78% of the fees for user and regulatory fees are proposed to decrease remain unchanged or increase by less than 10%. And most of the feed changes are due primarily to um the existing cost recovery models changes made to that. Next slide please. So the in I want to focus on the fees that increased more than 10%. We had 46 fees that are we're recommending to increase by more than by more than 10%. Majority of those are in our planning fees. We had 24 for planning. You can see here building we had 11 engineering nine uh utilities and fires each had one. These fees are regulatory in nature um and they are governed by the California building code, subdivision, California fire code and city zoning code, municipal codes. Next slide please. We also had six new fees that we're proposing. Majority of these are done are for recreation. Um and it's just you know I services that we see a need for in the department in this in the um city and we're bringing them forward so that we can recover those costs. Next slide please. So the fiscal impact of our recommendations will generate approximately 304,000 in additional general fund revenue per year. Our increased revenues are not intended to fund new services. Excuse me. It's important to note that the increases that we're looking at are just to maintain the current services

that we provide and to be as cost rep cost recovery as as possible. Um they're off and they they are intended to offset the costs for providing those existing services and our fee adjustments are simply intended to avoid degragation of existing cost recovery levels um and ensure that the city is recouping as many of our costs to provide those services. Next slide please. Lastly, our recommendation that we're asking of you is to adopt a resolution approving the fiscal year 2627 user and regulatory fee schedule effective July 1, 2026, authorize inflammatory, I'm sorry, inflationary adjustments in an interim years in between their next fee study and conduct our public hearing, which is what we're doing here. And we that concludes our presentation and we're open for questions. Thank you.

Okay. Thank you for that presentation. And so now open up the public hearing. Is there anyone? I have no public speaker cards. Anyone from the public? Okay. Mr. Montayor.

So what do you got to say? I'm used to this partner. This is my partner. Anyway, Rene is there. They're good in their department. Um yeah, they always take care of me. My voice is familiar with your name when I go there and rent a park. But anyway, the planning permit it jumped right. I don't know. But we have have to accept the inflationary is that the term and um at least a big percentage of the non nonchanged part. So um this group are doing good. Thank you. Okay. Thank you. Anyone else?

No additional public speakers. Mayor, we can close the public hearing.

Okay. I will close the public hearing. And now moving on to our city council discussion. Anyone? I I I do have something that I know of that which is the slide that had a really high was it the planning permits. So that one I I I get complaints from people that wow the city charges way too much for this permit or that permit. Um even somebody with a fence just to put a fence I think the fence the permit costs more than the fence. So

in the meantime, could we get slide eight, please? On up on the screen. So uh yeah, for me I'm just not other ones, but it's just that one area, that one department.

And you're speaking about the one that we demonstrated on slide eight that spoke to needing and it is a second bullet under planning per it's a third bullet under planning permits. It's a segment bullet sub bullet under that which is where a minor conditional use permit would increase from 1526 to 3646 and this is because of a public hearing requirement and if I could lean on Jay um the director of planning to re to provide some response. I do want to remind folks that this is about cost recovery and so uh we did have clear source that did quite a lot of in interviewing with us. They collaborated with the finance department and individual departments to speak to the people who were actually performing these activities. And so that's how these costs were generated. And with that if

Yeah. Um Jay is on Zoom. Mayor, if if you would like a further explanation of why these um costs have increased on these two items, would you? Yeah. U just you know the the you mentioned here the degradation of the cost for the fees. Yeah. But really it's degradation of the people that are paying the fees, you know. That's the way I see it. It's way it's just way too much. It's not even it's just um 1,526 to 3,646. Way too much. Let us have Jay speak to it and because he can provide you the level of detail that was discussed.

Good evening, mayor and council. Um appreciate the opportunity to uh provide some background and explanation. Uh so I'll go over both. I I chose the two permits that probably are increasing the most just out of a desire to be transparent. Um so I totally understand that kind of shock. Uh but the variance, I'll start with the variance. Um that one was totally undercharged. Uh a variance goes all the way to the planning commission. So um this involves all the hours that we put in to review variance requests. It involves uh other departments that also review these projects. Um, anytime there's a hearing that goes to the planning commission, it involves uh preparing a staff report with all the analysis and the findings that are required for a variance per our code. It requires preparing the presentation. Um,

oh, was there a I'm just wonder that the reports that'll help. So, using with the new relatively new like the Madison AI that'll help in the speed in drafting the reports. Um, but I assure you, uh, variances in other cities cost way more than 1,128. Um, that was totally an anomaly. Uh, so yeah,

but it's not just a report. Like community members sometimes are, you know, not okay with it. So like we have to spend hours speaking to community members, you know, like and especially when there's neighbors who are not agreeing with the property owner. Um there are a lot of things that go involved like that are involved in a project that is discretionary that goes to a hearing not just the report writing. I'm I'm mentioning that as like one aspect of it. Um but uh yes so uh I would say for the variance we were totally completely undercharging. Um so it's to fix that mistake because 100 1,128 you look at the hourly hourly rate for like any staff not just planning. I mean that's just like a a few hours. So um we certainly spend a lot more time than that for variance request. Um it also includes the time of going to right the the hearing itself. Um so and I'm I'm I'm sure I'm missing other items as well like conditions of approval drafting that. Um yeah so it the variance I think you know it was long overdue. Um the minor conditional use permit also goes to a zoning administrator hearing. Um so similarly even it's even though it's a zoning administrator hearing uh we were completely undercharging it um because we knew that we were spending a lot more time on these minor conditional use permits than um than the 1,526. Um there are these are massage permits, alcohol permits and you know there's even been a desire to raise the level of review of these even higher. So, um, I would say these fees resulting right now, it it seems like a large increase, but I would say the end result is very much in line with what other cities charge, if not even lower.

Um, so but but in general, I think the the fence one I totally understand, but I think the the ones that I've heard most complaints about are the ones that are in the hillsides. And unfortunately our hill or or not unfortunately just I guess no opinion just the hillside ordinance requires uh council approval for for uh metal fences and if we have to take it all the way to council and it's per the hillside ordinance which we cannot change um because it was voter approved um that that is I think the main reason for that one.

Yeah. Yeah. I still I still feel for me my one vote I still feel that the 1,00 where is it at 1,500 26 to 3,000 that's huge but anyway that's just me I'm I'm um I'm really cognizant of the consumer the residents so anyway anyone else I have council member Chua thank you mayor I know you have feedback uh from our resident Uh on the other hand, I have feedback from other residents, I mean other city's residents, and they complain to me that their fees are too high, ours are too low. So, and this is one of the actually planning commissioners on one of the cities and they started building their ADUs and they were surprised to find out how low our fees are. So, that's just another information for us. I think uh what Jay said about the variance I I agree totally and and I don't know we did we do a statistical analysis on other cities obviously we did right with a consultant we did a very it benchmarking was not per se the scope of work because it it it's important to understand here this is about cost recovery for the city of Malpus

and so we did do sort of a very informal scan of our other cities and we use that as an internal work product because it was way a level of detail that's distinct which which is where Jay's remarks come from about and to some extent that support your position where our fees are too low. Um I will also if I may respond to the mayor's comment about uh fees being too high. We have done in particular cases and certainly in recreational and community services, the city has taken proactive action and and determined that even though cost recovery is is what the way that we should be going and full 100% cost recovery for people and enterprises that are seeking these particular services. We have determined and the council has determined and approved a policy that basically reduces some costs and especially in the area of recreation and community services. So we don't do full cost recovery there. The difficult and challenging part of that is when we don't do cost recovery no matter where it is whether it's in recreation and community services or other areas such as planning permits or anything like that. the burden falls on g the general fund to make up those costs because those costs are paid. And so that means that we would have we could conceivably have somewhat some some reduction of services in other areas. That is a policy choice that the cost that the city council makes when they make those decisions. I understand.

But yeah, so we did do a very light touch on looking at benchmarks from our our our our colleagues in the Bay Area and uh we are not out of line. Okay. Thank you. Thank you, mayor.

Yeah, you're welcome. Yeah, I recall there was a time when we did not do cost recovery for the parks and reccks department, but then that changed uh when our budget changed. So anyway, um any more questions? We have u vice mayor sophist increase uh and and there's about 46 of them uh that were uh increase more than 10% according to uh the study. And if you look further on the methodology that they use, uh again uh uh supplement my my my understanding, it seems that it the the increase was about uh increase in labor cost or majority of it.

Yes. And if we could pull up slide five, please, whoever is running the presentation. Pardon me, slide nine. Yes. Next slide, please. So, where while you're pulling it out, where in uh the process of determining increases in fees uh was the input of the community? I heard several times uh throughout the report that there were input to the community. So what relevance was were the input from the community relate to uh the proposed increases by this study.

This was posted as is required by law 10 days in advance. So these schedules are posted to the public and they are also advertised 10 days um 10 days and I can give you the dates. They're in the agenda report and this information was publicly available at least 10 days before. So not just the agenda report but the detail behind these schedules. So the public had an opportunity to provide some information and Susan uh city the city clerk has not received any any uh requests for for speakers or inquiries from either res residents or communities or developers who would be affected by these fees. So the public does have sufficient opportunity and they can choose to interact with us as they wish. So, we do we do provide the opportunity for the public to contribute.

That's great. We complied with the notice requirement, but did we receive any feedback from the public? Council member, if we'd received any feedback from the public via email, it would have been provided to you with your packet or before the meeting.

Right. How about my comment will be the public comment, right? And I I echo uh you know the methodology uh that uh we use to uh determine whether a fee increases remain stagnant or a decrease is uh very complicated to my uh layman's understanding and even if we did comply with the notice requirement without uh further uh reaching out to uh the community that may be affected uh by is right. I don't think that just compliance with the rule uh would uh justify that there's no input from the public. We cannot blame the public for not uh responding because even if I read this now I won't understand it much more uh you know you give me notice uh about you know a possible increase of what I don't understand at least that's my one thing and uh looking at that as I said the methodology used uh although the report mentioned there was a you know sort of of of public input to it is just b mostly on how much time we spend how which we pay the staff that that performs these services and there you go we decided to increase the fees. I understand cost recovery uh you know we're going to hit them with almost a 40% increase and if you look at uh the report uh these are mostly what uh people uh need you know uh 46 of uh the increases uh more than 10% uh includes building fees planning fees engineering fees is utility service fees and fire fees.

So because uh we determine that we pay uh a higher rate to staff that perform these services, we pass it on to to uh the consumers. Is that something that again uh okay to do?

Yeah. So, so again this is based on um cost recovery and as I have said many times before in this in this forum staff we don't sell merchandise at the city of Mitus we provide services and so the services that are delivered are as Jay was speaking uh somebody who's reviewing that permit somebody who's preparing the materials to take it to a commission to take it to this organization for example this council and so all that takes time All that takes staff effort and all that takes and we what we do when we're looking at these fees is we take an average over to we're not always looking at the most complicated transaction. What we do is we look at an average across all the transactions and seeing how much time that takes and who who is qualified and knowledgeable enough to deliver th those services. So again uh I yes it's it's accurate uh that this reflects effectively increased cost and salary sal and compensation but I will point out that 78% of these were also proposed to decrease remain unchange or increase by 10%. and the increases of focus in a particular area around developers. And I will also point out again with all due respect, these are services that people come and ask to build in our city and this is not and to further uh um you know further emphasize what uh the director of planning said, we are not out of line with our compet with our co colleague our our Bay Area colleagues,

right? We're not directly imposing it to them but it's a consequence of raising the fees because of you know uh the personal providing services has a high uh compensation. Maybe that's where the council should look at right

we have a the city attorney wants to make a comment. Yeah, I I I just want to make sure the council's aware. Um yes, um changes to the compensation of employees may impact the struct or the amount of the fees that get charged, but there's another factor that comes into play there as well, which is that in some situations, the amount of work that's required to complete the same task may increase uh in many cases due to changes in state legislation. So, um, in the planning field in particular, I just note the state frequently is passing new law that's requiring more work on the city side and they specifically the state specifically indicates that it does not need to fund those new services because it is expecting the cities and the counties to pass those costs on through the fees um to the to the fee payers. Um, so, um, I just want you to be aware the the overall factors can be more complex as I think your your plan director alluded. Um, as can be the case with your ordinances as well. So, um, you don't have control over what the state legislature might do to make it more complicated. Um, but your own ordinances also might impact the amount of work that goes into uh, any particular permit. So uh

your speaker on

right. So if I remember it right a part of our house cleaning uh for purposes of trying to uh make good of our projected structural deficit is to make sure that uh we dip on the right bucket. So hopefully uh you know as we implement uh you know the the increases in in fees uh we make sure if there's and I don't know you uh staff would know better if there are certain uh buckets like funds uh dedicated solely for certain project like the task fund instead of dipping into uh the general fund uh at least that would uh hopefully lesser lessen the impact of of uh the increased fees. uh we use I I'm going to emphasize again that these are fees that are charged by people and or enterprises that come and ask specifically for these services. So we're not burdening the entire organization or taking away other fund other funds from other services that the city provides that the city provides such as public safety, parks maintenance and other activities. So um we we use the funds and th and those funds are also regulated by um by our own municipal code and wherever it and wherever if whatever's happening at the state level as well. But we are very conscious of how we spend our money and our time because we are very conscious that we need to encourage folks to come to the city not just residents and businesses. And so um there you have also not seen this sort of examination of the time that it takes to deliver this work for seven years. And I would venture to say and probably the city attorney will agree with me that if we're looking at that particularly set

of fees um which are being proposed to increase there may in those areas where there's been a s there has been a significant amount of legislation at the state level that has and those costs the state doesn't pay for those costs. the individual the individuals and or enterprises that that are asking for those services unfortunately are burdened with those expenses because it takes us more time to deliver them

right understood and I I don't uh dispute that that there's some uh intervening forces like the state uh that uh we cannot uh go against and we can only do as much right I'm just trying to see how we can temper uh its effect to the community as much as we could within the boundaries of what we can do as a Right. Thank you. Me. Oh, no. Council member, go out. I have a quick question. Um, the 370 thou 370,000? Is Is that It's 304,000. That's an estimated revenue because also 304

304,000,000. Is that the estimated revenue for a year? That's the estimated revenue for a fiscal year. That does not mean that we will collect that. If you notice that there is no appropriation action with this. Okay. That's good. Uh do we know how much we the revenue was last year for the same? Yeah, I we don't know offhand but we can provide you that information. less or more or again it depends on the number of of activities that we were asked to do. If you want us to focus on these areas, we can provide that information that I can give that to you. Yeah. Yeah. Yeah.

The reason why I'm asking is if it's 304,000 um that's the hit to the general fund, right? That would be if we had pretty much the same type of permit activity because once again this is based on individuals or enterprises coming to ask us to for X to be performed on their behalf. We would recognize around $34,000.

If you can look at if you can give us in just an info memo maybe for the last three years. At your pleasure. We will do that. Thank of course. Thank you. Thank you, Councilman Rich. We have a council member Lamb.

Um I have question on this. Oh, page eight. Um the planning permits a a variance for single family districts. Can you explain can you give me some examples of uh variance for single family districts why the fee increased so much? So the note there is that there is a need for planning commission approval and increased staff analysis time. I will once again defer to Jay that he provided a discussion about this earlier but Jay if you could please provide some additional information if you can. We are on the third bullet of planning permits and the first sub bullet of that, the variance for single family districts would increase from $1,128 to $4,98. And if you can provide some color for that for the council member and the council, that would be great, Jay.

Mhm. And I just want to clarify that um this was to fix what we believe was an undercharging. Um so I know that seems like a big increase, but I just wanted to clarify that. I would also say an example is if somebody wants to uh add to their home and uh have a smaller setback than what is required. Um so you know that involves uh presentations and I mean I I already talked about all the things that it involves. Um but uh but I would I'll just say this one thing. Um, for variances in particular, because of the work that that a variance involves, we actually created a new process through the comprehensive zoning ordinance update to allow for minor modifications. So any any kind of a variance that was minor in nature and for certain types of development standards, the most common ones that homeowners would face, we allow those without any hearings and those are significantly cheaper, don't require public hearings, can be approved uh at the director level. Um, so it I I think the focus some of these fees are increasing, the ones that I think we're undercharging, but I think a big thing that isn't reflected in this um in the fees is that more projects now are streamlined and actually don't even require a variance or a minor conditional use permit through the zone changes that we've recently gone through um with the the zoning ordinance update, but also even our specific plans. So, I just want to highlight that because I think that's a big factor and a big part of this conversation. And we targeted especially the permits that are most relevant for our homeowners, our residents and small businesses.

Um, yeah, I'm I'm trying to think of why um modification in a home require planning commission's approval. Modifications of homes do not. It's if they cannot meet our standards. So we have these standards for a reason which the council approved but if a project wants to do something different than these standards and not follow our stand our typical rules that's why all this extra analysis and a higher level of approval is required. Um so to be to clarify if it's a an addition that meets our standards this this is not a variance is not required.

Okay. So if if the variance is not required, it will go back to a a thou about $1,100 permit fee cuz that's the old variance fee. So for example, if it's um if it's a change that is uh like less what we not what we consider just a remodel rather than a essentially a whole rebuilding of a new home because some people change their home so much that it could almost be considered a new home. Anything less than that um is typically approved with a minor site development permit. And that fee, I believe, is much lower than even the $1,128. Oh, okay. Less than $1,000.

Yeah. A variance is not something that is super common because we we don't want people to not meet our standards. Um Yeah. Oh, okay. Now I understand. Okay. As long as um All right. Thank you. Yeah. most of the uh modification will be under $1,000. Okay. Um and then uh page 11 um Barn's house permit. Why do we need a permit for Barn's house?

Uh I'll let Director Lorenson respond to that. the director of parks and and community services and uh and she'll be right down. Yeah. I'm also interested in how much would the fee be.

Good evening and I'm glad I brought my glasses. Give me one second. Um so good evening mayor and city council. We are adding a new fee for a bounce house permit. Um these are commonly asked for in association with picnic rentals. Um it is more work for staff to process these requests, designate the areas where they can um load in the bounce house. There's also wear and tear on pathways and turfs when people drag in the the large bounce houses. This is a common fee that you see in other cities um to review and allow a bounce house to be at a park. Uh we also have to review the kind of um the way that they power the bounce house. Is it gas operated? Is it electrical? So there is staff time associated with these requests. Um and it is a permit um request that's a fee in other cities. So, I did not memorize the fees in their entireity. Do you have it? Oh, here it is. Um, it is uh $60 for the day for residents and $100 a day for non-residents and you rent the picnic area from 8 to 8. It's 12 hours.

I would also add to it, it provides an enforcement mechanism for the police department if let's say they go build it on the baseball fields or something like that, right? it it's already pre-approved by the parks department and community services department. So now they're in a confined space. It allows us the authority to move people. Um I think there might be also a present is there a presentation of um insurance requirement if it's on city property? Yeah, additional insurance um that comes along with having another company bring their property on city property. So

okay seems like um additional cost even someone want to throw a party for kids. Yeah

yes they are paying for the bounce house. They're paying um in some cases $150 for a 12-hour use of the picnic area. So our fees are are pretty uh comparable for that. Um but this is um a wide request and um there is additional staff work that comes with it. Um our cost recovery model for private rentals does ask that we bring in 80 to 100% of what it costs us to process and produce rentals for residents. And so we're staying in line with our cost recovery policy by adding this permit fee. Okay. All right. Thank you.

You're welcome. All right. Thank you very much, Council Member Lamb. Is there anyone else? Mayor, if I could ask your indulgence if there are no more count questions from the council or you. Yes. Anyone else? That's it. Okay. Anyone? Is this an action item? Yeah.

But if I could ask Erin Dul, I do want to extend my deep gratitude and thanks to the departments. They again this had not been done in 7 years. So this was a really deep examination of exactly how long it took them to do these tests and it was led and with our extraordinary team of clear source and the departments. Um this was a lot of work. This was a fivemonth project. It was a city essentially a citywide project and we got to a really good place. So I do want to thank you but I did want to acknowledge them because this was not done finance was the lead but they were the they just did a great job. So I just wanted to acknowledge them.

We have council member five month project involving a lot of departments. It it involved uh probably just it would it involved every every department that had a fee. So we we met with them at least twice if not more um with our consultant and discussed each of their fees and had them do work on their end.

Out of that $34,000, do you think there is an ROI left on that one? Remember these fees are going to be in place along with interim adjustments over the next five years. But the other issue is and thank you for pointing this out. This is really dependent on cost recovery. And if you go back to the prior slide, we did have occasions where we reduced it. And so more inclined, I mean right now I'm more inclined not to not to even pass and approve the increase in fees,

you know, wave this year and see what happens next year. We will once again be degrading the service and those staff will still have to provide those services. um we won't have the new fees, so we won't have the bounce house permit fees because again, we'll be in a position where we get further and further behind on cost recovery. And as we get further and further behind on cost recovery, it does degrade the services that people are can that the staff can provide in other areas. Am I correct in the assumption that we haven't done this in did you say seven years?

2019. This is supposed to be done every 5 years. So it was not unexpected that there would be an extra effort. Um but this did require a lot of thinking. Okay, that makes sense. Okay, thank you. Thank you. We have director loose. Thank you, Mayor. City manager wants to make a comment.

Yeah, real quickly. I I just want to make sure um one I want to highlight something that um Jay Lee said and it touches on what the city attorney said as well. Um, it looked like one of the areas of most concern was the permitting fees and the biggest concern was the impact to residents. And I just want to highlight something one more time that Jay Lee said is through the comprehens comprehensive zoning ordinance update. It actually actually reduced some of the red tape, some of the requirements for residents specifically. It doesn't so much help the big builders that want to come to town, but there are other ways through um our our rules and regulations, our ordinances where we can take action to protect our residents more in some of those fee areas where you saw the big jumps. And the other part too is just a reminder that it's not all residents that are paying these fees. It's only the people that are using those services.

Okay. Anyone else? So for for me it's um it's like the consumer well there's a lot of small businesses that come to town and I know that these fees are going to impact them because the whole point is they open up a business and at the end of the day we get the revenue for their sales. So um just I just wish that those fees would be lower but anyhow we're going to call. Anyone have a a motion to make? Oh. Oh, we have council member Lamb has one more question.

I'm wondering is it possible to group them? Um, so we could approve certain fees. You are you talking about peacemealing it or something? Yeah. You know, instead of approved items, let me ask the city attorney if we can do that. Um yeah because some of the items uh I I don't feel comfortable of approving. Yeah.

So you you do have the ability to approve some and not others. I would say just administratively um and to have a clean record. Um what we would do is likely take direction and then bring it back in consent. You've already conducted the public hearing. So um what we would we would want a resolution that clearly captures what it is that your action is and then we would bring that back in the following meeting. It's a good idea. I I like that idea.

Yeah. And if I add one more thing, um I think at a minimum you're going to need to address the fee decreases because part of part of the reason of this exercise is to address cost recovery and and you know, as it's been discussed, make sure that you're minimizing subsidy, but that's ultimately a policy choice. The other part of this exercise is to make sure that you're not overcharging because in those cases, you actually would be running a foul of, you know, various legal requirements, Prop 26 chief among them. And so, uh, usually there's a little bit of cushion built into the fees, um, because you're not capturing at your indirect cost. So, there's an inherent subsidy that, um, gives you a little bit of additional, uh, legal, uh, defensibility. But, you really do want to be going through this exercise every so often to make sure that you are reducing as you find efficiencies, as you find ways to bring down the cost of the service so that you don't end up overcharging the user.

Yeah. You know, you you did mention find ways to bring down costs and services and that also means that staff management needs to find ways to make things more efficient so that way you don't have to be spending hours and hours and hours. Uh so yeah, that's we would like to see that. Yeah. All right. Did you have a motion to make or somebody has a comment? We have council member Chua. No. Council member Chua. So, uh, City Attorney Christian Curtis, can you put that in motion, please?

Well, I I actually would need more direction um from the council. If you're going to improve part of them, we would need to know which ones uh you're approving and which ones you're not. Can Can we focus on who which ones the department ideally we can get consensus from the council on which ones there's concern about, right? And then that way we can bring back a I think it's the building permit. Can you um can you uh table table two can refresh table two? I'm sorry, Vice Mayor. What slide is that? Table two on the executive summary. Table two on the executive summary. William, you want to check table two? Table.

Executive summary. Which one is that? Uh executive summary. It is the one that's the on the on the screen right now. It is slide number 10. Oh, slide number 10. So, this would this would be the fees that are proposed increase by more than 10%. Yeah, that we're good. That's the right one. Is this right? Yes. Yeah. Okay. Check if that's what you want. Is this and then if I may, we would also need direction on any new fees studied. That's

real quickly for clarification within planning there's a series of fees. I I it may be I mean there's probably fees within planning that you're okay with but there might be some that you're not um I think the variance is okay because I know that's a lot of work. Okay. Yeah. Is there a way um for whoever's controlling the slides to display the sub fees for each for planning for example since that seems to be the most what are those 24 count

it it is a subset of the of the schedule that's in your packets what we can do and I propose if I may with the permission of the council is that we would look at these 46 fees and then if we could advance the slide please as well as the six new fees that's a total of 52 fees and we can bring you back additional detail on the certainly on the 46 fees. Okay. It I don't know that that will get us to where we need to be because there may be some fees within building or within planning that they're okay with. There's some that they may not. Can we defer this uh for the next session and just uh break it down? If you will,

we can defer it for the next session. This becomes effective 60 days after the action. So the reason you're seeing it today is our expectation was to for it to take effect early in the next fiscal year. But of course if that's the pleasure of the council, we can do that and I'm looking at the city manager who wants to provide direction.

Ideally not only because the upcoming council agendas are going to be very full as we move through the budget process and we go into the July recess. If we are able to get consensus on those fees that need to change, those could come to you on consent very easily on the next agenda. The reason why this I I understand the importance what you said but it's also important that we address the concerns of the residents and we're hearing that from all over and yeah I'm I'm I'm good for I I think I think we should bring this back as well and the reason being it we have to be mindful of what the res what we have to get feedback from the residents as well.

Yes. And if you you can start with an info memo, we can do that and we'll study the info memo and give it feedback. It's not going to take

if I may repeat the expectations of the information memo that it would be if I get get slide 10 up please that we be would be looking at detail of these particular 46 because the other 78% are either decreased stay the same or are increased by less than 10%. It's mostly the um like I guess the building fees, planning fees, engineering fees that those ones the other ones are okay from in my opinion. Did you have a hand? We have a con. We have a

council member. According to uh our finance director staff spent five months um going through you know all due diligence to make sure that this is just cost recovery. And the only thing that you really see um you know the fee increase out of proportion is in the planning and city attorney also city manager already addressed that that's for the developers the builders. This has nothing to do with our residents in our city. Actually I don't agree with the sentence cost recovery but we are we are paid by taxpayer already and then this is uh

the cost recovery is for our staff that spent the time working on pay already they have paid that's why we've recovered that cost the resident just a friendly reminder everybody's mic is on Yes, everybody's wait I'm okay everybody talk well anyway I yeah I think resident of Mus already pay us and then this is uh okay so we yeah just don't with the sentence we okay

I need a motion to defer this yes yes you do you guys see No, but the thing is it's defense. Yes, your mic is on now. I would like to defer this. I need assistance from city attorney on how to defer this item, please.

Yeah. So, I I see a few options. All right. One is if if there are fees, if you know that there's only a subset of these that are a concern, you could give us direction to bring back um a resolution on consent that's going to adopt all the other ones. So, for example, if it's just the ones that are 10% or more, we could hold off on those at the moment, um, uh, we could bring back a resolution on consent that's going to, um, adopt the rest of those, uh, changes, and then we could bring forward an item that gives you a more detailed analysis of each of those. Um what I would probably recommend at that time is that we budget time for what the city manager had suggested, which is to run through those one at a time and to get um basically a yes or no vote as to um where the the council wants to go on each of those individually so that we can then put that in a clean resolution uh for your final adoption.

So move Well, I'd like the 10. Yeah, the 10%. Just the 10%. And then they're going to break it down. Okay. So second, okay, I'll I'll I'll second that. Just to be clear, uh everything goes except uh the anything that is about 10. Vice Mayor, this is to defer and then bring back on consent everything but those 46, right? I'm just uh laying it out. So if that's the motion, I'm second. If forgive me, can I get a clarification of the motion? It's to defer or we passing the 78% today

if I may. Um because we're going to need a clean resolution. I believe any all of it will end up being deferred. However, everything but the 46 is coming back on consent at the next meeting. The remaining 46 we're going to have to address through more detailed discussion. What do you mean 46? Anything that's 10% 46. And if again, forgive me, we do need to get some some direction on slide number 11, which are the six new fees as well. We would be bringing back the Okay, greater than 10%. They're new, so there is no percentage. Um, these are, as I understand it, new services. This is new.

Defer that one, too. Yeah. Go ahead and defer this one, too. Yeah, we might not want it. Yeah. Yeah, I I I don't want to charge $60 for a bounce house. See, and this is part of this. I just defer this, please. Okay. So, there's we have a motion by council member Chua and a second by vice mayor. I'll second that amended motion including uh these uh six additional new uh fees. Okay. All right. So, let's call for the vote. Oh, wait. Is do public hear? Do I do? We did that. Yes, Mayor. Uh, call for the vote. Vice Mayor Barbadio, I.

Council member Chua, I. Council member Lamb, I. Council member Leanne, I. Mayor Montano, I. Thank you. So, now that was the last one. And what time is it? Almost 10. Almost 10. 9:47. All right. And now it's time for announcements. Yes or no? Next, we'll move on to our announcements and future agenda items. City manager, do you have anything to add? No announcements. Thank you. Uh any council members? I I just have one. We need to

Mayor I would like to ask uh to look at the policy council policy on bike safety if the current uh bike policy includes ebikes cuz I got feedback from residents when I was at the Earth Day and they came to me and they were concerned about ebikes on on our streets. And I want to make sure that we we updated our ebike policy. I mean our bike policy to include ebikes.

We we haven't contracted with a provider. They're here. No, no, no. She's talking about uh residents riding ebikes. Oh, yeah. I thought there there's also pending legislation. It's a big problem with ebikes all across the state. It's Yeah, you guys are welcome to um to get the consensus vote. We can also provide information on what some of that state laws already exist. Um they said they had a couple or or a few um accidents. Yes. Yes. Yeah. We're very aware the police department deals with explore that. Okay. Is anyone else? This is calling for consensus on that item. Consensus. Oh yeah.

Vice Mayor Barbadio. So consensus and exploring uh ebikes on bike lanes is that to see what's the current would it be helpful if we provided a info memo on um options uh what they were talking no for for the council would it be helpful if we provided an memo on state laws that that there are maybe the state law covers it and then we can decide if it's something to put on the prior tree and yeah make Sure. And I have to respond to them. Okay. Okay.

That's easy peasy. We'll get an info memo. Um actually, we'll make it informal. We'll just get an email response from the police chief to the council uh individually so you all understand the rules so you can uh reply to constituents and then we'll develop a long-term plan. Perfect. Thank you. Can does that include the um service providers that place their bikes along the city uh without city permission? Can you look into that, too? You know those those gold bikes? I don't know what they are. You see them up see them every so oft San Jose. They're they're all all there. The bike the bike. What are they called? The little scooters like the bird scooters and things like that.

Yeah. Yeah. Cuz I think that's they're here illegally. They're not because they have to have a contract with the city, right, to place Yeah. So, um I I actually haven't uh many jurisdictions do have an ordinance that requires that. Um I haven't uh looked at ours. If you want, you know, you could add that item. Um, frankly, I could also just do a quick review and give you similar info about we should do that. Okay. Thank you. Consensus. Okay. Okay. Uh, we don't need consensus. We're just we're just getting the info. Okay. Okay. That's

the next thing is I just wanted to mention that uh California League of Cities is uh starting tomorrow till Friday. So, I think Council Member Chua and Lamb and myself will be attending that. Are you going? So, um hopefully next time the city manager can go home. This is pretty good. And the city's attorney. All right. Well, I don't see anything else. Well, meeting is we have council member Lyn. Oh, Black Friday. Invite them. Okay. So, Black April is on the 30th. She said Black Friday. He said invite

next Thursday. is black uh April and it's at the community center. Please drop in. Uh we will have kids performing good music. Um last year was very very good and we invite the same group back and there's food. That's good. Thank you. Okay, seeing that meeting is adjourned. Good night everyone. Let's drive safe over there to the Sacramento.