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Planning and Building Department, Tahoe Planning and Building Division, recommending the Board approve and authorize the Chair to sign a budget transfer increasing appropriations for Professional Services and Revenues by $273,000 for Phase 1 of the development of the Tahoe El Dorado Area Plan. (4/5 vote required) (Refer 3/4/2025, Item 9)
FUNDING: Local Early Action Planning Grant Funds - 100%.
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DISCUSSION / BACKGROUND
On February 9, 2021 (Legistar file 21-0025), the Board accepted a Local Early Action Planning (LEAP) grant award in the amount of $500,000 from the California Department of Housing and Community Development (HCD) for use with projects that assist with the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment, with an expenditure deadline of December 31, 2023 (reimbursement request deadline of September 30, 2023), and authorized the Planning and Building Department (Department) Director to execute Standard Agreement 20-LEAP-14912.
As part of the initial LEAP scope of work, the Department had opted to utilize the $500,000 in LEAP grant funds to complete three (3) housing projects: Project 1 - Infill Incentive Ordinance, Project 2 - Expansion of County’s Pre-Approved Accessory Dwelling Unit (ADU) Program, and Project 3 - ADU Ordinance Update. In November of 2023, the Department came to the determination that completion of Project 1 was not feasible within the term of the LEAP grant and submitted a re-scope request to HCD to revise Project 1 from Infill Incentive Ordinance to Phase 1 of the Tahoe El Dorado (TED) Area Plan. The Department immediately began work towards Project 1 - Phase 1 of the TED Area Plan.
On March 19, 2024 (Legistar file 24-0448), following a Governor-issued extension to LEAP grant expenditure deadlines, the Board approved Amendment 1 to Standard Agreement 20-LEAP-14912, extending the expenditure deadline by twelve (12) months from December 31, 2023 to December 31, 2024 and the term of the Agreement by eighteen (18) months from February 16, 2021 through June 30, 2024 to February 16, 2021 through December 31, 2025. Due to this extension, the Department submitted an additional re-scope request to HCD to expand the scope of work for Project 1, allowing the completion of additional reports, studies, and community engagement events. All items associated with the additional scope of work were submitted for reimbursement by the deadline of September 30, 2024.
This budget transfer request to increase appropriations for Professional Services and Revenues in the amount of $273,000 for Fiscal Year 2024-25 will allow the Department to balance their budget after an unanticipated increase in expenditures and revenues that resulted from a grant deadline extension, allowing a broadened scope of work. Phase 1 of the TED Area Plan has been completed and work has begun on Phase 2. Phase 2 is included in the Planning and Building Department's FY 24-25 budget. Partial funding for Phase 3, the last phase, has been secured through funding from TRPA. The Department is actively researching grant opportunities and additional funding sources for the remaining unfunded portion of Phase 3.
ALTERNATIVES
The Board may elect not to approve the budget transfers as proposed, if so, the Department expenses and revenues will not reflect actual project expenses in the correct fiscal year.
PRIOR BOARD ACTION
On February 9, 2021 (Legistar file 21-0025), the Board accepted a LEAP grant award in the amount of $500,000 from HCD, with an expenditure deadline of December 31, 2023 (reimbursement request deadline of September 30, 2023), and authorized the Department Director to execute Standard Agreement 20-LEAP-14912.
On March 19, 2024 (Legistar file 24-0448), the Board approved Amendment 1 to Standard Agreement 20-LEAP-14912, extending the expenditure deadline from December 31, 2023 to December 31, 2024 (reimbursement request deadline of September 30, 2024).
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost as a result of this item. The increase in Professional Services would be offset by the Revenue received from HCD as part of a reimbursement request from the County.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board will obtain the Chair's signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Develop a comprehensive plan for affordable housing opportunities
CONTACT
Brendan Ferry, Chief Deputy Director
Planning and Building Department