HomeMy WebLinkAbout05-20-2014 C10 Reallocate City Funds from Property Acquisition to Development and Construction Costs for a Homeless Services Center
May 20, 2014
FROM: Derek Johnson, Community Development Director
Prepared By: Greg Hermann, Special Projects Manager
SUBJECT: REALLOCATE CITY FUNDS FROM PROPERTY ACQUISITION TO
DEVELOPMENT AND CONSTRUCTION COSTS FOR A HOMELESS
SERVICES CENTER
RECOMMENDATION:
1. Reallocate the $250,000 that was set-aside in the General Fund reserve for the acquisition of
property for a Homeless Services Center located at 40 Prado Road to allow use for the
development and construction costs for the project to the Capital Outlay Fund subject to
future Council action in association with the terms and conditions of funding the
construction of a Homeless Services Center.
2. Make a finding that the reallocation of funds is not a project as defined under section 15378
(b) (4) of the California Environmental Quality Act.
DISCUSSION
Background
In 2009, as a result of the San Luis Obispo Countywide 10-year Plan to End Homelessness (10-Year
Plan) and the deteriorating conditions of the existing Maxine Lewis Memorial Night Shelter and the
Prado Day Center a determination was made by CAPSLO to replace those facilities with a new
Homeless Services Center.
In 2013, CAPSLO reached an agreement with the Regional Transit Authority (RTA) to purchase
and jointly develop a nearly 10 acre site at 40 Prado Road. CAPSLO would use approximately one
third of the site for the Homeless Services Center and RTA would use the remaining portion for
administrative offices and associated operations. Recently the RTA approved acquisition of the site
as evidenced by the attached RTA resolution (Attachment 1)
The site will be purchased for $2.25 million with RTA funding covering 67% of the property
purchase and CAPSLO providing the remaining 33% or $750,000.
On February 18, 2014, as a part of the Mid-Year Budget Review, the City Council approved the
one-time use of $250,000 of the General Fund reserve that exceeds the 20% minimum level to be
set aside as a matching grant in acquiring land at 40 Prado Road for the Homeless Services Center
as proposed by CAPSLO.
Request for Funding
On April 24, 2014, CAPSLO was successful in transferring a State Emergency Housing and
Assistance Program Capital Development (EHAPCD) Grant in the amount of $999,995 to the 40
Prado Road project site. The State has indicated to CAPSLO that it is interested in the grant funds
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Reallocate City funds from property acquisition to development and construction costs for a Homeless Services
Center Page 2
being used for the purchase of the property first with any remaining funds applied to project
construction.
On April 29, 2014, CAPSLO formally requested that the $250,000 originally set aside by the City to
acquire the land for the project be reallocated to fund the development and construction of the new
Homeless Services Center at 40 Prado Road (Attachment 2).
Next Steps
The City set aside the $250,000 with the understanding that other agencies, including the County
and the newly formed Homeless Foundation of San Luis Obispo County (Homeless Foundation)
would also contribute to the project. CAPSLO has requested $500,000 from the County towards
project development and construction. After property acquisition occurs, the Homeless Foundation
will begin the capital campaign to raise the remaining funds for the development and construction
of the project. CAPSLO will be requesting that all of the cities in the county participate in the
campaign.
Staff will return to the City Council at a later date with an agreement with CAPSLO specifying
conditions on how and when the funds will be transacted. As soon as the land is in the control of
CAPSLO, these discussions will begin in earnest.
Moreover, the City continues to work with the County and Homeless Foundation on developing the
framework for raising funds for the ongoing operation.
ENVIRONMENTAL REVIEW
The proposed action consists of the reallocation of budgeted funds for the purpose of using it for
future capital costs rather than land acquisition. The proposed action does not constitute a “Project”
within the meaning of CEQA, pursuant to 14 CCR 15378 (b) (4). The creation of government
funding mechanisms or other government fiscal activities which do not involve any commitment to
any specific project which may result in a potentially significant physical impact on the
environment and 14CCR 15378 (5) Organizational or administrative activities of governments that
will not result in direct or indirect physical changes in the environment. The proposed action is the
reallocation of funding to the proposed Homeless Services Center and this project will be subject to
City policies, including required environmental review during review of all entitlements and permit
requests.
CONCURRENCES
The Police Chief, Public Works Director and Utilities Director concur with the recommendation.
FISCAL IMPACT
On February 18, 2014, as a part of the Mid-Year Budget Review, the City Council approved the
one-time use of $250,000 of the General Fund reserve that exceeds the 20% minimum level to be
set aside as a matching grant in acquiring land at 40 Prado Road for the Homeless Services Center
as proposed by CAPSLO. Therefore, the proposed reallocation of the approved funding from land
acquisition to capital construction will have no fiscal impact. The proposed action would shift the
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Reallocate City funds from property acquisition to development and construction costs for a Homeless Services
Center Page 3
designation of funds to the Capital Outlay Fund and would only be disbursed to CAPSLO in
connection with future Council action in association with specific terms and conditions related to
the proposed Homeless Services Center.
ALTERNATIVES
1. Deny the request. This is not recommended as supporting the establishment of a new
homeless services center is a key objective of the Major City Goal to implement
comprehensive strategies to address homelessness.
2. Modify the request. This is not recommended for the above mentioned reason, but the City
Council may ask that the request is modified to address any Council concerns or issues.
ATTACHMENTS
1. RTA Resolution Authorizing Purchase of Real Property located at 40 Prado Road
2. Request for Funding from CAPSLO
T:\Council Agenda Reports\2014\2014-05-20\Reallocate City Funds - Homeless Service Center (Johnson-Hermann)
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MAY 2 0 2014
Kremke, Kate
From: Mejia, Anthony
Sent: Tuesday, May 20, 2014 3:27 PM
To: Kremke, Kate; Goodwin, Heather
Subject: FW: Item C -10 /Council Agenda
Item C -10 for 05/20/14.
Anthony J. Mejia I City Clerk
goo Palm Street.
San Luis Obispo, CA 9340-1
tel 1805 7817102
From: Marx, Jan
Sent: Tuesday, May 20, 2014 3:26 PM
To: Mejia, Anthony
Subject: FW: Item C -10 /Council Agenda
Agenda correspondence
AGENDA
CORRESPONDENCE
Date -°-_11' > ' Item# / `0
From: Dave Cox [mailtoAcox(ftarnettcox.com]
Sent: Tuesday, May 20, 2014 3:19 PM
To: Marx, Jan; Smith, Kathy; Christianson, Carlyn; dcarpent0)slocity.org:; Ashbaugh, John
Subject: Item C -10 /Council Agenda
Mayor Marx and Councilmembers:
I understand that Consent Agenda item C -10 may be pulled at tonight's City Council meeting for discussion. I cannot
attend the meeting and alternatively provide the following comments.
Knowing each of you, I know you're compassion for the homeless and of your individual commitments to address this
ongoing community problem. Twenty -five years ago San Luis Obispo first stepped up to addressing this problem with
the opening of the Maxine Lewis Memorial Shelter in 1989. In 1997, the Prado Day Center was opened through an
incredible collaborative effort from all corners of the community. We are now at another important milestone where
our community can unite to address the issue of homelessness by acquiring the property at 40 Prado Road for a new
service center.
The City's $250,000 investment to assist CAPSLO is vital to completing the purchase. A unanimous vote for this
reallocation of funds would provide an important message to the community of unity and collaboration in addressing a
significant civic issue.
I urge the council to take the necessary action approve reallocation of funds for this extremely important community
project.
Thank you.
Dave Cox
Executive Vice President /COO
00•
BARNETT COX & ASSOCIATES
711 Tank Farm Road, Suite 210
San Luis Obispo, CA 93401
805.545.8887
805.788.4424 direct
805.545.0860 fax
805.704.1644 Mobile
www.barnettcox.com
Kremke, Kate
From:
Sent:
To:
Subject:
Agenda Item C10 for 05/20/14
Anthony J. Mejia I City Clerk
ia[y 0J' �sati Wit; X1[31 PO
990 Paini St.rec,,t.
Sari Luis Obispo, CA 93401
tel 1805 781.7102
iE; "A,,Y 15 2014
Mejia, Anthony
Thursday, May 15, 2014 2:31 PM
Kremke, Kate
FW: Friends of Prado Day Endorses the 40 Prado Road Homeless Center project
AGENDA
CORRESPONDENCE
Date LD0 - Item# C10
From: Marx, Jan
Sent: Thursday, May 15, 2014 2:04 PM
To: Mejia, Anthony
Subject: FW: Friends of Prado Day Endorses the 40 Prado Road Homeless Center project
agenda correspondence
Jan Marx
Mayor
CITY OF
S-q LUIS OBISPO
Office of the City Council
990 Palm Street, San Luis Obispo, CA 93401 -3249
jmarx@slocity.org
T 805.781.7120
slocity or
From: roy rawlings [rmrawlings2004 @yahoo.com]
Sent: Thursday, May 15, 2014 1:43 PM
To: Marx, Jan; Christianson, Carlyn; Ashbaugh, John; Smith, Kathy; Carpenter, Dan
Cc: DRAMORTEGUY DEBORAH; Russ Levanway; Mary Parker; Hannah Miller; Chuck Crotser; Diana Foch; Paul Wolff;
Corey, Tyler; Rev. Rod Richards; Bartlett Stacy; Mary Matakovich; Roy M Rawlings; Elizabeth "Biz" Steinberg; Jim
Famalette; Grace McIntosh; JOHN SPATAFORE
Subject: Friends of Prado Day Endorses the 40 Prado Road Homeless Center project
To: Honorable members of the San Luis Obispo City Council: Mayor Marx, Vice Mayor Christianson,
Council Member Smith, Council Member Ashbaugh, and Council Member Carpenter.
The Board of Friends of Prado, an organization whose mission is to raise funds to help support the
ongoing operations of the Prado Day Center, has voted to support the construction and operation of
the 40 Prado Road Homeless Center. We encourage the City to contribute to this effort and help
seek the resources necessary to build the project. Further, Friends Board adopted a resolution
endorsing the motion before the City Council, set for May 20, that would change the
previously approved $250,000 designated for the purchase of land at the 40 Prado Road site to now
designate those funds for construction of the new Center. We do not support a proposal advocated
by Councilman Carpenter to keep the Maxine Lewis shelter open indefinitely and not pursue the 40
Prado road project.
The Friends Board has also endorsed the availability of a detox center. We strongly believe that a
detox facility could serve as a resource not only for the homeless, but also others in our community
needing help with substance abuse.
Respectfully submitted.
Roy Rawlings
President, Friends of Prado
May 15, 2014
John Spatafore
Board Chair
Homeless Foundation of San Luis Obispo County
P.O. Box 1444
San Luis Obispo, CA 93406
COUNCIL MEETING: o d 7o kolcl
ITEM NO.: (�,, % 0
Sv1om�l�tc� �o� °�ov,r�
SPa1-a��re
RE: San Luis Obispo Downtown Association Support for Homeless Center
Dear Mr. Spatafore,
As the President of the San Luis Obispo Downtown Association -I speak on
behalf of our membership in our support of the acquisition of the property
located at 40 Prado Lane, San Luis Obispo. The joint efforts of the Regional
Transit Authority and the Homeless Foundation of San Luis Obispo County to
develop centers for both regional transit and homeless services, is a step in the
right direction to helping the chronically homeless members of our
community transition back into a life of dignity and independence. From the
inception of the Prado Day Center, we have been supporters of the efforts to
help those members of our town get back on their feet and the agencies that
oversee those efforts.
We see the consolidation of these services under one roof as imperative to the
housing first solution to homelessness. Communities across the country are
adopting the housing first theory to rehabilitate homeless citizens and get
them back into safe, secure and regular housing. The results of providing
housing goes beyond just putting a roof over somebody's head but expands
into the sense of dignity that can only be afforded by having a home.
Additionally, it makes it easier for caseworkers to find their clients and meet
with them at their home and maintain forward progress.
In our community, this service center will serve as the nexus for getting
people out of our downtown creeks, off the streets and into a transitional
facility that will expedite the journey from homeless to home again. We
recognize the efforts of your foundation to help build this center and we will
be proud to see this center built in our city and support your efforts.
Sincerely,
Marshall Ochylski
Board President
San Luis Obispo Downtown Association