HomeMy WebLinkAbout06/01/1993, C-16 - HOMELESS SHELTER EMERGENCY FUNDING ��I�iIII����INIIIIIIIuII _� MEETING SATE:
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Nunn STEM COUNCIL AGENDA REPORT NUM
FROM: Ken Hampian, Assistant City Administrative Officer
Prepared By. Deb Hossli, Administrative Analyst
SUBJECT: Homeless Shelter Emergency Funding
CAO RECOMMENDATION:
1. Approve and authorize an appropriation from the General Fund fund balance to
"advance" $4,000 to the Economic Opportunity Commission to keep the Homeless
Shelter open the last two weeks of this fiscal year.
2. Direct staff to reduce the budget for the 1993-94 contract by a like amount, resulting
in no net additional cost to the City.
DISCUSSION:
The Economic Opportunity Commission's (EOC) Homeless Shelter Program recently
learned that they will lose approximately $40,000 in expected 1992-93 funding from the
Federal Emergency Shelter Grant Program (FESG). FESG has unilaterally opted to
terminate grants throughout the State in mid-May of this year (as opposed to June 30)
resulting in a loss of six weeks of expected operational funds. This represents the equivalent
of a 10% reduction in the overall Shelter budget. The loss of funding will require the EOC
to close the Shelter for twelve days before the end of the fiscal year to balance their budget.
The EOC's first response to this news was to seek assistance from our local legislators to
appeal this decision (the program is managed by the State). The EOC recently learned that
this appeal was denied. While the EOC intends to continue to work toward reversing this
decision, they are not optimistic about the results. As such, EOC has begun to implement
cost saving measures to balance the Shelter budget. The Shelter is opening two hours later
(6:30 pm as opposed to 4:30 pm); fewer staff are being used to directly oversee the Shelter;
and the Shelter Director and Case Manager are being paid for 10 fewer hours per week.
Even with these reductions, however, the Shelter still needs $4,000 to fund the Shelter's
direct staffing costs associated with twelve days of operation.
The EOC recently advised the Human Relations Commission (HRC) of this dilemma as
part of their regular third quarterly report. After discussing the options available to the
EOC, the HRC is recommending that the City "advance" the Shelter $4,000 from the EOC's
expected 1993-94 contract allocation of $120,000. The 1993-94 contract would then be
reduced by a like amount, resulting in no net additional cost to the City.
The HRC feels this is an appropriate course of action for the City to take for several
reasons. Most importantly, it will allow the Shelter to maintain continuity in its services
through the end of the fiscal year and live up to its neighborhood relations commitments.
It will also give the EOC more time to plan and hold fundraisers to cover the shortfall.
I city of San luiS OBispo
gumbo COUNCIL AGENDA REPORT
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CONCURRENCES:
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The Human Relations Commission unanimously endorses this recommendation.
FISCAL IMPACT:
Monies from the General Fund fund balance available will be appropriated to fund this
request. The $4,000 will be subject to the same terms and conditions as the current
agreement between the City and the EOC. Because the 1993-94 allocation to the Shelter
will be reduced by $4,000 to $116,000, there will be no net change to the beginning General
Fund balance for 1993-94.
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_ ME __ .NG 3 AGENDA.e./(
DATE ITEM #
MEMORANDUM
May 27, 1993
TO: CITY COUNCIL
FROM: JOHN DUNN, CITY ADMINISTRATIVE OFFICER
SUBJECT: REQUEST TO PULL ITEM C-16 (HOMELE ER)
At the request of the Economic Opportunity Commission (EOC), staff is requesting to
pull item C-16 from. the City Council's June 1, 1993 agenda. After further
deliberations, the EOC Board of Directors has opted to close the Shelter for the last
twelve days of June as opposed to taking an advance from the City to solve the
Shelter's recent budget dilemma (as proposed in the staff report). The EOC Board
feels that the financial problems at the Shelter will persist into the next fiscal year
(based on expected reductions in Federal Emergency Shelter Grant Program) and,
therefore, feel taking the advance in funding will only aggravate the problem in 1993-
94.
The EOC intends to send a letter to the neighbors of the Shelter by June 1, 1993
advising them of the EOC's need to close the Shelter for the last two weeks of June.
Contact Deb Hossli at extension 151 if you have questions.
COPIMTO:
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Y' READ
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MAY 2 7 1993
CITY CLERK
SAN LUIS OBISPO,CA