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HomeMy WebLinkAbout01-20-2015 B1 Homeless Services Center Grant Jan. 20, 2015 B1 FROM: Derek Johnson, Community Development Director Prepared By: Greg Hermann, Special Projects Manager SUBJECT: HOMELESS SERVICES CENTER DESIGN AND CONSTRUCTION GRANT RECOMMENDATION: 1. Approve a grant of $250,000 from the City to the Community Action Partnership of San Luis Obispo County, Inc. for design and construction costs of a Homeless Services Center; and 2. Authorize the City Manager to execute the grant agreement. 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 consolidated Homeless Services Center (HSC). 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 will use approximately one third of the site for the HSC and RTA will use the remaining portion for administrative offices and associated operations. A public lot subdivision was processed creating the two separate lots in May 2014. The site was purchased for $2.25 million with RTA funding covering 67% of the property purchase and CAPSLO providing the remaining 33% or $750,000. Addressing homelessness is one of the City’s 2013-2015 Major City Goals and 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 HSC as proposed by CAPSLO. This amount was appropriated within the General Capital Outlay Fund and remains available for this purpose. On May 20, 2014, the City Council approved the reallocation of the $250,000 that was identified above for the acquisition of property to the development and construction costs for the project, subject to future City Council action in association with the terms and conditions of the grant. The reason that this action was taken was that CAPSLO was able to change the use of approximately $1 million in State grant funds to both property acquisition and site development. Since the purchase price was less than the state grant amount, the state funding essentially covered all of the acquisition costs and thus CAPSLO needed funding for site development. B1-1 Homeless Services Center Design and Construction Grant Page 2 Use Permit Approval On December 10, 2014, the Planning Commission approved a use permit for the Homeless Services Center and Safe Parking Program at 40 Prado Road (Attachment 2). Grant Terms and Conditions The grant agreement specifies various terms and conditions to both protect the interests of the City and maximize other fundraising efforts. The terms for the disbursement of grant funds include: Grant Amount and Allowed Expenses The City agrees to pay CAPSLO a one-time only grant, in the sum of $250,000, to be used only for approved design and construction costs directly related to the HSC. Progress payments for design or “soft” costs to be paid from City grant funds will be limited to $50,000. Design or “soft” costs are expense items that are not considered direct construction costs. Design or “soft” costs will be limited to architectural and engineering expenses directly associated with the HSC. Progress payments for construction costs will be limited to $200,000. Construction costs are defined as contractor expenses for labor, project management, material, equipment, services, utilities and other direct construction costs. Milestones and Fundraising Goals The $50,000 in City funds for design or “soft” costs associated with the HSC will be available for progress payments when a signed grant agreement is received from CAPSLO, along with corresponding contracts for services. The $200,000 in City funds for construction costs associated with the HSC will be a “matching grant.” These funds will be available upon certification that an equivalent amount of $250,000 has been raised by CAPSLO and the Homeless Foundation of San Luis Obispo for construction of HSC, that the raised funds are readily available for those purposes, and once evidence of executed construction contracts is presented. Program and Operating Plan Progress payments for construction costs are also contingent upon an approved program and operating plan for the HSC. The program and operating plan will be considered approved after review and approval by the CAPSLO Board of Directors and the City Manager or designee. The program and operating plan must include at a minimum: - Scope of services and corresponding budget for the first three years of operations - Operating expenses for the first three years of operations - Revenue sources sufficient to support the first three years of operations Additional terms are included in the Draft Grant Agreement (Attachment 1). These terms have been reviewed in concept with CAPSLO executive staff and will be approved by the CAPSLO Board of Directors prior to execution of the agreement by the City. Next Steps The HSC is scheduled for review by the Architectural Review Commission on January 21, 2015. CAPSLO currently plans on submitting construction documents for a building permit in February B1-2 Homeless Services Center Design and Construction Grant Page 3 2015 and building permits are expected to be issued by June 1, 2015. Construction is anticipated to begin in late fall of 2015. 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. On May 20, 2014, the City Council approved the reallocation the funds to the Capital Outlay Fund to be used for design and construction costs of a Homeless Services Center. The recommendation is to now make those funds available under specific conditions specified under the grant agreement. Should CAPLSO be unsuccessful in their fundraising campaign for HSC, the City’s financial liability would be limited to $50,000 for the project, as the remaining $200,000 is tied directly to construction costs, which would not be incurred if the fundraising campaign is unsuccessful. 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. Draft Grant Agreement for the Homeless Services Center 2. Planning Commission Resolution No. 5624-14 T:\Council Agenda Reports\2015\2015-01-20\Homeless Services Center (Johnson-Hermann)\ECAR- Homeless Services Center.docx B1-3 Attachment 1 HOMELESS SERVICES CENTER GRANT AGREEMENT This agreement dated January ___________, 2015 is between COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC., a California nonprofit public benefit corporation (“CAPSLO”) and City of San Luis Obispo, a California Municipal Corporation and Charter City (“City”) with reference to the following: WHEREAS, CAPSLO, has requested City to contribute to a Homeless Services Center (“HSC”) to provide the services described in "Exhibit A" attached hereto, and WHEREAS, said services will be available to residents of the City, thereby serving both a public and municipal purpose, and WHEREAS, CAPSLO intends to construct the HSC at 40 Prado Road, San Luis Obispo; WHEREAS, addressing homelessness is one of the City’s 2013-2015 Major City Goals, and WHEREAS, City has approved the HSC project subject to various conditions and development standards, which include compliance with the City’s Good Neighbor Policy and Safe Parking Program, and WHEREAS, City has determined the HSC can help to satisfy the shelter and service needs of homeless individuals in the community by providing beds, food service, case management and other services, and NOW, THEREFORE, CITY and CAPSLO for and in consideration of the mutual benefits, promises and agreements set forth herein, do agree as follows: 1. Construction of the HSC On or before the date which is two (2) years following the execution of this Agreement, CAPSLO shall complete construction of a shelter with up to 150 beds, food service, case management, a safe parking program and other services designed to assist the homeless. The HSC shall be constructed at 40 Prado Road in San Luis Obispo. 2. Construction at Other Sites If CAPSLO determines that construction of HSC at the site specified in Section 1 above is impractical or inadvisable for any reason, then CAPSLO may not use these funds for a HSC at other locations within the City without prior written approval of City. 3. Grant Amount and Allowed Expenses City agrees to pay CAPSLO a one-time only grant, in the sum of $250,000, to be used for the design and construction of the HSC and may only be used for approved design and construction costs directly related to the HSC. The grant will be paid in progress payments when a signed grant agreement between the City and CAPSLO and copies of executed contracts for design and construction services between CAPSLO and contractors are received. B1-4 Attachment 1 Progress payments for design or “soft” costs to be paid from City grant funds will be limited to $50,000. Design or “soft” costs are expense items that are not considered direct construction costs. Design or “soft” costs will be limited to architectural and engineering expenses directly associated with the HSC. The minimum progress payment for design costs will be $10,000. Progress payments for construction costs to be paid from City grant funds will be limited to $200,000. Construction costs are defined as contractor expenses for labor, project management, material, equipment, services, utilities and other direct construction costs. The minimum progress payment for construction costs will be $25,000. Progress payment requests for the amounts shown above shall be submitted to Community Development Director at the City and shall include documentation that includes copies of contractor invoices and evidence that the work progress has been accepted by CAPSLO. Progress payment requests reviewed and approved by the City shall be paid within 10 days from the time of that approval. 4. Milestones and Fundraising Goals The $50,000 in City funds for design or “soft” costs associated with the HSC will be available for progress payments when a signed grant agreement is received from CAPSLO, along with corresponding contracts for services. The $200,000 in City funds for construction costs associated with the HSC will be a “matching grant.” These funds will be available upon certification that an equivalent amount of $250,000 has been raised by CAPSLO and the Homeless Foundation of San Luis Obispo for construction of HSC, that the raised funds are readily available for those purposes, and once evidence of executed construction contracts is presented. 5. Program and Operating Plan Progress payments for construction costs are also contingent upon an approved program and operating plan for the HSC. For the purposes of this agreement, the program and operating plan will be considered approved after review and approval by the CAPSLO Board of Directors and the City Manager or designee. The program and operating plan must include at a minimum: - Scope of services and corresponding budget for the first three years of operations - Operating expenses for the first three years of operations - Revenue sources sufficient to support the first three years of operations 6. Return of Funds The grant shall not be subject to repayment as long as the HSC shelter is used for the purposes intended (emergency shelter, transitional housing and support services). If, within 10 years of operation, the HSC is no longer used for the originally intended purposes, the City shall require the immediate repayment of the funds and any accrued interest at a rate of 3% per year. 7. Ownership of Assets While CAPSLO will be the owner of the property, building and all assets, the State of California B1-5 Attachment 1 will hold a promissory note secured by a deed of trust against the project property for the first 10 years of operation. In case of financial distress after 10 years of operation, CAPSLO may transfer operation to another service provider for other social services subject to the prior written approval of City, which approval shall not be unreasonably withheld. 8. Permits CAPSLO shall apply for and obtain all necessary building and other related permits to construct the HSC in conformance with local, state, and federal laws. This agreement does not authorize the construction of the HSC or otherwise alter or impact the exercise of the City’s independent regulatory or permitting authority over the project. 9. Funding Source Recognition The CAPSLO will insure recognition of the roles of the City in providing funding through this Agreement. The City shall be identified as a funding source in all publications, press releases, etc. In addition, the CAPSLO will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. 10. Amendments The City and CAPSLO may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the City Council. Such amendments will not invalidate this Agreement, nor relieve or release the City or CAPSLO from its obligations under this Agreement, except as expressly provided in writing in any subsequent amendments. 11. Periodic Reports The CAPSLO, at such times and in such forms as the City may require, will furnish the City such periodic reports as it may request pertaining to project undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement. 12. Civil Rights Title VI of the Civil Rights Act of 1964: Under Title VI of the Civil Rights Act of 1964, no person will, on the grounds of race, color, creed, religion, sex or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Section 109 of the Housing and Community Development Act of 1974: No person in the United States will on the grounds of race, color, creed, religion, sex or national origin be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. Age Discrimination Act of 1975, as Amended B1-6 Attachment 1 No person will be excluded from participation, denied program benefits, or subjected to discrimination on the basis of age under any program or activity receiving federal funding assistance. (42 U.S.C. 610 et. seq.) Section 504 of the Rehabilitation Act of 1973, as Amended No otherwise qualified individual will, solely by reason or his or her disability, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal funds. (29 U.S.C. 794) Public Law 101-336, Americans with Disabilities Act of 1990 Subject to the provisions of this title, no qualified individual with a disability will, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity. 13. Assignability The CAPSLO will not assign or transfer any interest in this Agreement without the prior written consent of the City. 14. Conflict of Interest No member of the City’s governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the project, will have any personal financial interest, direct or indirect, in this agreement; and the CAPSLO will take appropriate steps to assure compliance. CAPSLO agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which includes maintaining a written code or standards of conduct that will govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. 15. Severability If any provision of this Agreement is held invalid, the remainder of the Agreement will not be affected thereby and all other parts of this Agreement will nevertheless be in full force and effect. 16. Entire Agreement This Agreement constitutes the entire agreement between the City and the CAPSLO for the use of funds received under this Agreement and it supersedes all prior communications and proposals, whether electronic, oral, or written between the City and the CAPSLO with respect to this Agreement. 17. No Agency or Employment The CAPSLO is solely responsible for all activities supported by the Grant. Nothing in this Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship. The CAPSLO shall not represent itself as an agent of the City for any purpose, and has no authority to bind the City in any manner whatsoever. CAPSLO and all of its agents, representatives, or participants in any manner in the B1-7 Attachment 1 performance of its obligations and duties hereunder, shall be employees, independent contractors, or volunteers solely of CAPSLO. They shall not for any purpose be considered employees or agents of the City. 18. Indemnification The CAPSLO agrees, to the fullest extent permitted by law, to defend, indemnify, and hold harmless the City its officers, directors, affiliates, employees, and agents, from and against any and all claims, liabilities, losses and expenses (including reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of the CAPSLO, its employees or agents, in applying for or accepting the grant, in expending or applying Grant funds, or in carrying out the project as set forth. 19. Termination The City Manager may terminate this agreement at her sole discretion, after a public hearing and upon ten (10) days written notice to CAPSLO. Said termination shall be effective thirty (30) days after City mails notice of termination of agreement to CAPSLO. Any remaining funds in excess of costs actually incurred as of the date of notice of termination pursuant to section 3 above shall revert to City upon said termination. 20. Compliance with Human Relations Commission “By Laws” CAPSLO hereby certifies and agrees that it will comply with the Human Relations Commission’s “Bylaws” which creates an environment within the City in which all persons can enjoy equal rights and opportunities regardless of race, religion, sex, national origin, sexual orientation, age, physical, mental or economic status. 21. Notices For purposes of notice under this agreement, all notices shall be considered effective upon being sent by certified mail to the following addresses: City: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attn: Community Development Director Grantee: Community Action Partnership of San Luis Obispo County, Inc. 1030 Southwood Drive San Luis Obispo, CA 93401 Attn: Chief Operating Officer CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION By: ________________________________ Katie Lichtig, City Manager B1-8 Attachment 1 COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION By: ________________________________ Elizabeth “Biz” Steinberg, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________ Christine Dietrick, City Attorney B1-9 Attachment 1 Exhibit A Type of Proposed Activities CAPSLO provides the comprehensive day services at Prado Day Center and night shelter at the Maxine Lewis Memorial night shelter. Also CAPSLO partners with the Interfaith Coalition (ICH) for the homeless overflow (women and children night services at designated churches in SLO City). All of these facilities are spread throughout the city. The distance between facilities along with the limited space of each structure has been a barrier for our clients as they travel daily from one source of assistance to the other, often times clients may be turned away due to lack of space. Having all services located on one site will enable clients to remain on-campus instead of traveling across town and placing additional burdens on the local neighborhoods. An increase in the number of beds available will address the issue of clients being turned away due to lack of space. These individuals most likely spent the night somewhere outdoors in the community. With the additional space available at the campus this issue should be significantly resolved. The CAPSLO Homeless Services Campus at 40 Prado Road will incorporate all activities currently being conducted at the existing Prado Day Center site and the Maxine Lewis Memorial Shelter. The Campus will operate 24-hours a day, seven days a week. The facility will be configured in such a way to allow for a central courtyard that will provide clients with outside active and passive space. This courtyard will be in the center of an inward focused building which will have minimal impact on the surrounding neighborhood. Day Services Breakfast and Lunch will be provided by volunteer groups or prepared on-site in the commercial kitchen. Meals will be served in the dining room, which may also serve as a multi-use room during all other times. • Case management activities (includes assistance in accessing community resources for housing, employment, training and counseling) will be conducted in private offices as well as a multi- purpose community day room/library equipped with computers, telephones, mailroom, information/resource area and lounge. • Children's activities will be conducted in a children’s area and a separate outdoor children’s play area. • Clients will have use of laundry facilities located on-site. • Partner agency activities and services will occur in private offices. Examples would include mental health counseling, drug/alcohol out-patient activities and medical examinations. • Clients would have day-use storage for their belongings, enabling them to safely store their belongings should they need to go to job interviews and community appointments. • Shower and bathroom facilities will be available for clients to use. Overnight Shelter Services • Dinner will be provided by volunteer groups or prepared on-site in the commercial kitchen. • Shower and bathroom facilities will be available for clients to use. • Male dormitories housing up to 70 individuals. • Female dormitories housing up to 40 individuals. • Family dormitories housing up to 40 individuals. Outdoor Area A total of 80 auto and 50 bicycle parking spaces will be available during business hours. B1-10 Attachment 1 A pet kennel area will allow clients to bring their pet’s on-campus, a major reason why many individuals do not come to the shelter and are instead sleeping outdoors throughout the community. Client Rules/ Security Currently both Prado Day Center and the MLM Shelter operate on a "sobriety behavior based" approach. Unless clients are behaving inappropriately or are clearly under the influence or intoxicated they will be allowed to remain on-campus. Should a client not be willing to leave the premises without incident, the police are contacted. A professional security system, which will include cameras and video, will be installed in common areas, outside the building and in the parking area to monitor the facility and surroundings and will help to ensure safety and security of the immediate vicinity. CAPSLO staff has an excellent relationship with SLO Police and staff has been in discussion with the Department to provide a designated space at the HSC for officers. This would allow for a more consistent presence throughout the day and night time hours. The Homeless Service Center Campus will be the base for 24 fulltime employees, 12 part-time employees, 6 case managers and support staff of volunteers. B1-11 Attachment 2 B1-12 Attachment 2 B1-13 Attachment 2 B1-14 Attachment 2 B1-15 This page is intentionally blank. B1-16 Homeless Services Center Grant City Council Meeting – January 20, 2015 1 Recommendation 1.Approve a grant of $250,000 from the City to the Community Action Partnership of San Luis Obispo County, Inc. for design and construction costs of a Homeless Services Center; and 2.Authorize the City Manager to execute the grant agreement. Policy Background County 10-Year Plan to End Homelessness 2013-15 Major City Goal Project Background 2009 Determination to replace Maxine Lewis Night Shelter and Prado Day Center 2013 Agreement between CAPSLO and RTA to purchase 40 Prado Road June 2014 State grant funding switched to property acquisition and site purchased December 2014 Planning Commission Use Permit approval Grant Terms and Conditions Grant Amount and Allowed Expenses Milestones and Fundraising Goals Program and Operating Plan Amount and Allowed Expenses One-time only grant of $250,000 $50,000 for design or “soft” costs $200,000 for direct construction costs Milestones and Fundraising Goals Matching grant $50,000 available now $200,000 available after $250,000 is raised Construction Agreement Program and Operating Plan Contingent on approved operating plan Scope of services and budget Operating expenses Revenue sources Next Steps Architectural Review Commission on January 21, 2015 Building permit application in February Building permits issued by June 1, 2015 Construction in late fall 2015 10 11 12 Recommendation 1.Approve a grant of $250,000 from the City to the Community Action Partnership of San Luis Obispo County, Inc. for design and construction costs of a Homeless Services Center; and 2.Authorize the City Manager to execute the grant agreement.