HomeMy WebLinkAbout05/01/1990, C-9 - CONSIDERATION OF A REQUEST BY THE ECONOMIC OPPORTUNITY COMMISSION TO THE CITY FOR $16,808 IN ADDITI �IIIIVIIIIII�+I.f IUIII MEETING DATE:
�01N�� ipNuN cityo san LUIS oBIspo - May 1 1990
COUNCIL AGENDA REPORT 1T°"NUMeERC_
FROM: John Dunn, City Administrator
Prepared by: Alison Lloyd, Administrative Analyst
SUBJECT: Consideration of a request by the Economic
Opportunity Commission to the City for $16,808 in additional funds
to operate the homeless shelter program for the remainder of FY
1989-90.
CAO RECOMMENDATION:
1. By motion, approve the request by the Economic Opportunity
Commission for additional funding and amend agreement to
appropriate $16,808 from the General Fund Balance to operate
the homeless shelter program for the. remainder of FY 1989-90,
at a total City cost of $116,808.
2. By motion, approve and authorize the Mayor to sign a letter to
the Chairperson of the Economic Opportunity Commission Board of
Directors expressing the City's concerns and urging the Board
to initiate further efforts to contain costs and identify
additional revenue sources.
DISCUSSION:
Background
On April 2, 1990, the City received a formal request from the
Economic Opportunity Commission (EOC) for additional funding to
meet a $33, 616 cash deficit expected by May 15 to operate the
homeless program. The City has been requested to contribute one-
half of the shortfall ($16,808) . EOC has also requested the same
level of support from the County of San Luis Obispo as outlined in
Attachment No.l (The amount of $16,858 requested in the EOC letter
was in error; EOC concurs that $16,808 is the actual request) . The
request by EOC for additional financial support is primarily based
on two factors:
1. Due to an oversight, the 1989-90 operating budget for the
homeless shelter did not include construction/site
preparation expenses for the Orcutt Road site.
Since the 1989-90 operating budget did not allow for these
expenses, $33, 386 which had been allocated for shelter
operations was used to pay site preparation costs.
2. The average number of people served by the shelter increased
substantially since July 1989.
city of San LW S OBISPO
COUNCIL AGENDA REPORT
Agenda Report
Page Two
The 1989-90 operating budget was based on providing services
to an average of 35 people per night. However, the actual
number of people requiring shelter services has averaged
more than 45 persons per night which represents a 28.5%
increase in the original number budgeted.
The increase is attributed in part to the closing of the
People's Shelter Program, reduction in the sheltering
capacity at Roandoak due to mandatory compliance with County
building code requirements, and an influx of people formerly
living along San Luis Creek.
eeportina the Deficit
EOC reported they have been without a Finance Director and support
staff. In addition, they have experienced personnel changes in
management of the shelter program. These factors in conjunction
with the fact that this was a first year program, resulted in a
negative impact on their fiscal and managerial responsibilities in
operating the homeless program. As a result the deficit was not
reported until March.
EOC assured both City and County staff that the necessary steps
have been taken to ensure that a problem of this magnitude will not
happen again. The steps are listed below:
1. EOC has filled the vacancies in their Finance Department.
2. EOC will begin producing quarterly financial reports which
will be submitted to City and County staff for review 15
days after the end of each quarter.
3. The same EOC Shelter Supervisor has been managing the
shelter program for four months which has contributed to
operational stability.
4. EOC has been working directly with the part-time Homeless
Coordinator for the County to investigate available funding
such as additional Emergency Shelter Program (ESP) and
Federal Emergency Shelter Grant (FESG) money.
5. EOC has prepared a detailed proposed budget for 1990-91
which includes all anticipated expenses, sources of funding,
and explanations for specific line items.
The 1990-91 proposed budget for the homeless shelter program
includes a $120, 000 contribution from the City which
represents a $20, 000 increase to the current budgeted
"'""i�AN11111�p � I► city of San tuts o8ispo
COUNCIL AGENDA REPOFIT
Agenda Report
Page Three
amount. The proposed budget also includes a $120, 000 County
contribution. A copy of the 1990-91 budget has been
submitted to City and County staff .for review.
Alternatives Investigated to Meet Current Deficit
On March 27, 1990, the Homeless Committee of the EOC Board of
Directors (EOC Board) , met to discuss alternatives to requesting
additional funding from the City and County. The alternatives
discussed were:
1. Limit the maximum number of people served by the shelter
program.
The EOC Board determined that this was not a viable
alternative because the fixed operating costs of operating
the shelter program would remain the same. Although
approximately $6.00 would be saved for each person on a
nightly basis, the savings would not be enough to meet the
shortfall. The EOC Board also noted that senior citizens
and families with children are currently given priority for
shelter services.
2. Reduce staffing/use volunteers.
The EOC Board rejected this alternative because program
staffing is already at a minimum. The EOC Board determined
that due to the amount of time needed to train as well as
the the question of reliability, it would not be cost
effective to replace shelter program staff with volunteers.
3. Close the shelter.
The EOC Board determined that the loss of shelter services
to homeless people would prove devastating if the shelter
were closed. The EOC Board was also concerned that there
would be a negative community response if the Orcutt Road
Shelter were closed so soon after its approval.
Due to the urgency of obtaining the funding necessary to meet the
$33 ,616 deficit, as well as the lack of viable alternatives, the
EOC Board determined it would have to request additional financial
assistance from the City and County. County staff is recommending
that the Board of Supervisors approve the contribution.
1111111$110p 11111) city of san tuts owpo -
COUNCIL AGENDA REPORT
Agenda Report
Page Four
Consequences of Not Taking Recommended Action
The $33, 616 deficit represents approximately six weeks of operating
expenses, for the homeless shelter program. If the request for
$16,808 in additional City funds is not approved, EOC intends to
close the shelter on or about May 15.
Conclusion
In view of the fact that the homeless shelter is a first year
program, and recognizing the number of extenuating circumstances,
staff believes the request by EOC for $16,808 in additional funds
to meet the $33, 616 homeless shelter program deficit by May 15
merits consideration and approval by the City Council.
EOC's for FY 1990-91 Fundina Request
As mentioned previously, EOC has indicated that they will be
requesting an increase in City support in 1990-91, from $100,000
to approximately $120, 000 for the fiscal year.
Although staff recognizes the challenging circumstances faced by
EOC in operating a homeless shelter program, the City cannot afford
to be in the position of perpetually supporting ever increasing
shelter costs. Our financial commitment is already extraordinary
for a .city of our size. In addition, we must be cognizant of the
fact that there are other social programs in the City that are
serving the human service needs of the community and are seeking
support.
In view of this, staff recommends that the attached letter be
forwarded to the Chairperson of the EOC Board of Directors. The
intent of the letter is to urge EOC to initiate further cost
containment and revenue enhancement efforts. Staff also believes
that the City needs to establish a "ceiling" of fiscal
responsibility to the shelter program. Unless Council gives other
direction, staff will recommend that the City contribution for FY
1990-91 represent this "ceiling" . Staff is currently working to
develop an agreement with EOC for FY 1990-91. A draft of the
agreement will be presented for Council consideration before June
30.
FISCAL IMPACT:
Approval of the recommendation to provide EOC with $16,808 in
additional funding will increase the City's total 1989-90
contribution to the homeless shelter program from $100, 000 to
�>>����uitVIIIIIIIIP II�III city of san L-JS OBISPO
8-is COUNCIL AGENDA REPORT
Agenda Report
Page Five
$116,808. A total of $100,000 was approved for the homeless
shelter program as part of the 1989-91 Financial Plan & Approved
1989-90 Budget, page D-67.
It is recommended that $16,808 be appropriated from the General
Fund balance.
ALTERNATIVES:
Ask EOC to request support from other cities in San Luis Obispo
County to offset the deficit. On a philosophical level, this
alternative has a great deal of merit, given that the problem of
homelessness is certainly a regional matter. In response to a
staff inquiry concerning this approach, EOC indicated that previous
requests of other County cities have been unsuccessful. Therefore,
as a practical matter, to pursue this course of action in the face
of the May 15 depletion of funds is not realistic. Staff does
believe, however, that further long-term efforts to involve other
cities should be undertaken by EOC. This point of view is
reflected in the proposed letter from the Mayor.
ATTACHMENTS:
Attachment No.1 EOC Letter Requesting Additional Funding
Attachment No.2 1989790 Homeless Shelter Budget Schedule
Attachment No.3 Proposed Letter From the Mayor
Attachment No.4 Amendment to EOC-City Funding Agreement
Attachment No.5 EOC Letter to Mayor and Councilmembers
al\agendarp
- -s
,- RECEIVED
1990
EO ADMINISTRATION go
ECONOMIC OPPOHTUNITY"
Sao Luis Obispo County. Inc.
490 ndustral Way O San Luis Ob soo. Cahforroa 93401 : 905-544-4355
March 30, 1990
Mr. John Dunn
City Administrator
City of San Luis Obispo
P. 0. Bog 3100
San Luis Obispo, CA 93403-8100
Dear Mr. Dunn:
As a partner in the provision of homeless services to County residents, the City of
San Luis Obispo has provided assistance and support throughout the first year of
program operation and the development of the Orcutt Road shelter site. We now
need to bring you up-to-data and solicit your cooperation as we bring this first
year to a close.
I have attached budgetary documentation which will reveal to you that the
�..' operating budget of the EOC Homeless faces a cash deficit of $33,616 as of June 30,
1990. This is 11.5% of the year's total budget. We are requesting that the City of
San Luis Obispo provide additional funding of $16,858 to meet this shortfall . The
County of San Luis Obispo, as a partner in this project, has been requested to
provide the same support.
There are two primary reasons for the shortage of cash to the shelter's operating
budget.
1. The population of the shelter has increased substantially. The original
operating budget was predicated on services to 35 clients; actual
averages show over 45 persons per night being sheltered (a 2 8.5%
increase).
2. The original operating budget did not encompass site preparation
expenses for Orcutt Road. Funds originally slated for appreciation to
the operating budget had to be diverted to site preparation:
$11,250 ( of County's sham;
2 2.1?6 (ESP (state) ;rant)
33 '86
? : 3G o C � .� .,, .. _ C ., ,. ? :' ,_ ._ '. ^'. 5 CO SLC C C _ _ d
ATT A!`TIMAATT 1 Grp
Mr. John Dunn
-2- March 30, 1990
Fiscal oversight on the part of HOC suffered due to a lack of personnel in the
Finance Department. With the hiring of Linda Asprion in December as Financial
Director and the hiring of support staff, the fiscal oversight of all HOC programs has
come under control and is now of the highest caliber. Management of the shelter
program changed as did personnel at the City and County levels wjfio were directly
involved with the creation of the original budget for this program. Quarterly
monitoring reports will be generated for review by the City and County. This
system will assure that accountability is at the highest level. With this staff now
fully oriented and working closely together along with the County's new homeless
services staff, fiscal and managerial stability has been achieved.
The Homeless Committee of the HOC Board of Directors met to consider the shortfall
of funding on March 27,1990. In that ineeting, various alternatives to requesting
additional funding were discussed.
1. Limiting the number of clients served: Because of the fixed costs in
operating the shelter, each client not served on a nightly basis would
save approximately $6A0, rather than the full cost of each bed at
$16.10 per night. Savings would not, therefore, be significant enough
to either offset the cash deficit or warrant the political consequences.
Note: The Lotte:;F System is still in effect - the number of families
with chidren and senior citizens are highest priorities.
2. Reduce staffing: Staffing is at a bare minimum currently. Volunteers are
valuable to augment this skeleton staffing pattern, but could not
replace staff. Volunteers in the capacity of staff would require extensive
training which would be time intensive, and volunteers are not antiealy
reliable.
3. Close the shelter: The loss of services to homeless clients would be
devastating and corr*nunity response would likely be very negative,
as this would almost have to juxtapose with the opening of the Orcutx
Road Shelter. he cash deficit represents roughtly six weeks of
operating expenses, requiring closure approximately May 15th.
Considering `hese alternat-v4?s the E :":':;ruei2Ss C,Jrnmittee 1-4Aeterrrdzad4 it iS v:-ar
that the only alternalIve `hat preserves services t�^ the in-crease-11 popular.on c',I
homeless people in our county is to request support from the partners, the Coll r.
U0-9-7
i
Mr. john Dunn -3- March 30, 1990
and the City,, to offset the 11.5% shortfall in the operating budget of the Shelter for
1989-90. In view of the increase of clients within the program of almost .30%, the
unanticipated shifts of funding to site preparation and the management stability
achieved by ECC, we believe this to be a fair and responsible request.
Please assist me in scheduling Lhis request on the City agenda for April 17, 1990, as
I believe additional funding would require Council approval. I look forward to
meeting with you concerning this issue at our scheduled appointment on April 5.
Thank you in advance for your consideration. I know that we all look forward to
the new year at Orcutt - serving the Homeless in a quality program which will
enable self sufficiency.
Sincerely,
Elizabeth " " ' teinber
g
Executive Director
ESmp
Attachment
cc: Mayor Ron Dunin
C
0 �o� c,:✓s
PERSONNEL �l
I Shelter Coordinator ($1 , 749/mo. x 12 mos. ) f 20.988
6 Shelter Workers : 4 per night; 2x7 fir. 'shifts
118 days (S/S 6 Holidays) 2x$49 . 00/shift 23. 128
247 days (M-F) 2x$46 . 69/�-irift
I P-t-Malntenance/l_aundr M+kr. l$530/mo. x 46. 0
1 P t Cook ($596/m6. x 12 mos. ) 12 mos. ) 6.3660
___7 152
Benefit Accruals (i1ol . , Vaca., Sk ) Subtotal : 103, 758
Fringe Benefits: 311 10.631
Total : _35,467
-- ' - 149,856
UTHER EXPENSES
Food $ 12,240
Laundry
rrngrom S1rPPlles 5.400
5,466
Vehicle Insurance
Gen. I.lablllty Ins. 3. 180
Vehicle Malnt. 9 Repair 1 .020
700
Office Supplles 540
. Xerox -260
Postage 360
Utilities 8,400
Gasoline 900
Total : _38,466 36,466
Subtotal : 188,322
COMPREfiENSIVE SERVICES INCLUDEO
Shelter fcxxl service/nutrltlon
Case msrurgement/Referral too
5e.1vatlon Army lbrrieless Outreach Private Industry Councll/JTPA
Nlecrm Community Medical Center EmPloyment Oeve'lo
nt Dept.
SI.O bounty Mental Health Services Department of Rehabilitation
Transltlons, Inc. OePartment Soc. Serv./AFDC Program
County Drug Atrrse Program Food Bank of SLO County
Alcohol Services of SLO County Transportat.lon to services
Case Solana, Inc. Child Care
Co. Veterans Services Transitional housing
E.O.C. 71 Administration 139178 13. 118
GRAND TOTAL: ZO 500
(CON211cm)
1989-90 HOMELESS PROGRAMS: SAN LUIS 081SPO
finanr.ing Requirements:
------------------------
E.O.C. Shelter Operations ; 201 ,500
E.O.C. Shelter Facility Lease 24,000 �•
Shelter EquIpment lease-Purchase
27, 102
Salvatlnn Army Case Management 50,000
total Financing Requirements ; 303,202 !1t
. ,r
Means of Financing: ,
-------------------
E.O.C.
-------------E.O.C. Grants = 71 ,000 -�
E:O.C. Donations 10,000 '
Salvation Army Grants 24,500
Salvation Army Donations 500
Total Private Grants 9 Donations ; 106.000 �II'111'I'
City of Sari I.uls Obispo 98.601 til
County of San Luis Obispo 98,601 it
Total Means of Financing ; 303,202
Distribution of County Contrlbutlon:
--------------------------------
Shelter Equlpnent Lease-Purchase ; 27,702
Salvation Army Case Management 25,000
E.O.C. Shelter Facility Lease 24,000
E.O.C. Shelter Operations 21 ,899
Total County Contribution ; 98,601
Distributlon of City Contrlbutlon:
----------------------------------
E.O.C. Shelter Operations f 98,601
(CnN716xn 1
-14-
SHELTER OPERATIONS
EXPENSES
89/90
Fixed Costs �cC � %%,
1. mowlulars $27,701.00
2. Pent 8 x 1,875 = $15,000.00
4 x 1,988 7,952.00
22,952.00
3 Salvation Army 0000.0.0
E80,653.00
Expenses 7/89-2/90 3/9`66/90
I. Transportation $11,613.00
Food Pick-up/Delivery (Gasoline)
'Maintenance 267.00 134.00
Auto Insurance 4,140.00 2,070.00
G,a.:oline 11791.00 896.00
Lutrication 1,010.40 505.00
2. Food Preparation/Procurement = $4.1,071.00
Kitchen Rent (Achiev. House) 5, 122.00 878.00
Food 13,323.00 6;662.00
,applies (paper products) 1.759.00 587.00
20,204.00 $8,127.00
Cook Sa.l�ry 12.740.00
$32,944.00
Officce Supplies/Expenses $1,204.00
S'�FPlies 45.00
Medical Exams/St 54,00 37.00
Equip Repair/Maint. 145.00 73.00
Advertising 243-00
Copying 280.00 190.00
Printing 23.00 19.00
Postage 00.00 _30.00
$355.U0 $349.00
4. Telephone = $I,I0o.00 738.00 369.00
5 p .nk (P:a?roll) = $117.00
78.00 39.00
l
�, er�cxss2s
�6. Utilities = $3,943.00 `1 `
PG&E (Electric)
San Luis Garbage 2,632,12 1,316.00
Water (Orcutt St.)
*Unknown-Water/Garbage
after move to city
7. Insurance $545.00
Liability 328.00 164.00
Bonding .00 18.00
$362.00 $182.00
8. Laundry = $8,913.00 $2,121.00 $1,805.00
*Gwen now using $95.00/wk
195 x 19 wks = 1805
*112 maintenance salary (4987)
9. Miscellaneous = $7923.00
Janitorial Supplies 252.00 126.00
Auto. Alarms 43-50
Supplies 2,115.12
�
License. 499-00
*112 maintenance salary (4987) $2,910.00 $126.00
10. Indierct/Admin. = $13,695.00 9,130.00 4,565.00
Payroll
Accounting
Audit
Personnel
Executive Director
Overhead
11. Salaries - Gwen + Shelter Workers = $12 4,890.00
Wages 2/1-20/90 72,925.00 J5,262.00
Payroll Tames 6,886.00 3,444.00
Health Ins. 51999.00 3,001.00
Workers Comp. 11,391.00 6,696.00
$99,201.00 $48,403.00
(Minus 12 mos. Cook & Maint.) - ($224714.00)
Total $295,675.00
i i1�.�irli2
rity $ 1nr�,094 nii 5295,675.00 Total Expense
County $ �5,9�51.00• $262.059.00 Total Income
EOC 11,700.00 _ Donations $33,616.00 (cash deficit) 6/30/90
11,806.00 - D10
12,000-00 - DEO'
0,000.00 - Energq
10,702.00 - Loan + PESG
Total $262,059.00
rdc;teS
Coot por rod per night (total minus Salvation Army allotment) = $16. 17
C,,� t of 10 person (ppr night) population increase.a.t $;16.17 per person/night
.00
F:'pulation increase of ;5 to 45 person is 28.5%
INCOME STATEMENT
Shelter Operations: City County EOC
Salvation Army $ 5,000 $25,000 0
Modular Lease Purchase 0 27;702 0
Site Lease 11,250 10,702
Operations 95,000 21.899 65.506
$100,000 $85,851 $76,208
Site Preparation:
Cash 0 11,250 • 36,386*
In Kind 4,000 0 . 40,626 (as of 3120)
s ($14,250 loan; $22,136 ESP)
Total Cash Income $104,000 $98,601 $102,594
Total Income (Inc. In Kind) $104,000 $98,601 $143,220
1
TEMPORARY SITE EXPENSES
Rent $500.00
Water 500.00
Toilets 500.00
Material 150-00
$1,650.00
x_9441
�ii�I I II II I Iflll��������plllii Ii�il City O SAn IUIS OBISA0100
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
April 13, 1990
Joel Diringer,Chairman
Economic Opportunity Commission
880 Industrial Way
San Luis Obispo, CA 93401
Dear Mr. Diringer:
On May 1, 1990 the San Luis Obispo City Council approved additional
funding in the amount of $16,808.00 to support the EOC Homeless
Shelter Program through the end of this fiscal year. This approval
increased City funding of the program to $116,808.00 for FY 1989-
90. The Council also understands that you will be requesting
$120,000.00 from the City for the next fiscal year, which is
$20,000.00 more than originally anticipated.
The City Council strongly supports the program to provide shelter
to the homeless. Our contribution is extraordinary for a City of
our size, as has been evident both in state and nationwide surveys. -�
However, the EOC Board of Directors must recognize that we have
limitations. These limitations frequently prevent the City from
supporting funding requests from other very worthy organizations.
These limitations also require us to refer most social service
providers in search of funds to our Grants-In-Aid process, where
they compete against numerous programs for scarce social service
dollars. Given these limitations, it is essential that the City
establish a "ceiling" relative to our long term support for: EOC
shelter operation. We cannot afford to be faced with continually
escalating funding requests from the EOC, with the option being the
imminent closure of the shelter. It's an untenable position to be
in, to say the least.
Consequently, the San Luis Obispo City Council strongly recommends
that the EOC Board of Directors make cost containment and revenue
enhancement an immediate priority for the Homeless Shelter
operation. We suggest that the EOC solicit assistance from other
successful homeless shelter providers to accomplish these
objectives. For example, we are aware of a Family Shelter program
located in Fresno which provides temporary shelter to women and men
with children from two weeks to one month. Income for the program
is derived entirely from private support (individuals and
churches) . The program has an aggressive fundraising campaign and
has found solic '_ting contributions by direct mail to be especially
successful. Last ,year revenues for the program totaled almost
$650, 000.
ATTACHMENT 3
Diringer
Page Two
We also urge EOC to aggressively pursue funding from other cities
in San Luis Obispo County. The problem of homelessness is a
regional one, and thus involves every city in this county.
Finally, a review of the homeless program by a management/financial
consultant might also be appropriate. The City would consider
using a portion of our contribution to the program for this
purpose.
We commend the EOC for its efforts in providing shelter to the
County's homeless population. The concerns and suggestions
contained in this letter are intended to help keep the program
viable and manageable for those of us involved in its support.
Only through a more stable cost and revenue structure will there
be assurance that the shelter's door will remain open to serve
those in need.
Sincerely yours,
Ron Dunin
Mayor
c: Board of Supervisors
\homeless
J
1 1
AMENDMENT
Paragraph 5 of the Agreement dated Sept. 7, 1989, is amended to read: City agrees to pay
EOC $116,808 (one hundred_ sixteen thousand, eight hundred and eight dollars), to be used
as described in "Exhibit.A'. This grant shall be distributed in three installments, to be paid
as follows, and subject to receipt of a summary of the previous six months activities.
October 18, 1989
January 1, 1990
May 11, 1990
IN WITNESS WHEREOF, the parties hereto have executed this amendment by their
proper officers duly appointed-
THE ECONOMIC OPPORTUNITY COMMISSION
By:
THE CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION:
City Administrative Officer
ty to ey
AL\amena
ATTACHMENT 4
P_9-/7
A G R E E M E N T
THIS AGREEMENT, dated Sept. 7, 1989, for the convenience of the
parties hereto, is between the CITY OF SAN LUIS OBISPO, a chartered
municipal corporation (referred to herein as CITY) , a
OPPORTUNITYnd the ECONOMIC
COMMISSION (referred to herein as EOC) . '
W I T N E S S E T H :
WHEREAS, EOC has requested City to contribute to a program to provide
the services described in "Exhibit All attached hereto and;
WHEREAS, said services will be available to residents of the City,
thereby serving. both a public and a municipal purpose:
NOW, THEREFORE, City and . EOC, in consideration of the mutual
benefits, promises, and agreements set forth herein, do agree as
follows:
� 1. EOC shall make its services, as described in "Exhibit A" herein,
- ' available for the period of Jul 1 1989 through June 31 199
0.
2 . EOC will provide the City with summary program reports two
times during the period covered by this agreement (January 1, 1990
and a final report on July 1, 1990) . These reports shall describe
the type and quantity of services provided, as well as the
expenditure of City funds, and shall be in the form described in
"Exhibit All attached hereto.
3 . EOC and all of its agents, representatives , or participants in
any manner in the performance of its obligations and duties
hereunder, shall be employees, independent contractors, or volunteers
for EOC. They shall not for any purpose be considered employees or
agents of the City.
4 - EOC agrees to hold City harmless, and to defend City against,
from, and in any claim, action, proceeding, or hearing wherein there
is an allegation charging liability on the part of the City as a
result of any act of omission, negligent or otherwise, of EOC.
5. City agrees to pay EOC $100 , 000 (one hundred thousand dollars) ,
to be used as described in "Exhibit A." This grant shall be distributed
in two installments, to be paid as follows, and subject to receipt of
a Summary of the previous six months ' activities.
Cctober 18 ,1989 : $50, 000
January 1, 1990: $50, 000
X
AGREEMENT: ECONOMIC OPPORTUNITY COMMISSION
Page 2 _
6 . E.O.C. agrees to expend additional funds for this program, equal
to or greater than the City' s grant. Such funds may include other
agency grants and charitable contributions, but .may not include funds
received from the Mungy of San Luis Obispo. The City reserves the
right to withhold r a portion of the payments covered herein if
E.O.C. fails to meet this obligation.
7. The City Administrative Officer may enter into supplemental
understandings and agreements with E.O.C. ,bn behalf of the City,
which serve to implement and further the purposes of this agreement
and remain consistent with City Council policies and direction.
S. The City Administrative Officer may unilaterally terminate this
agreement at his sole discretion, upon thirty (30) days written
notice to EOC. Any funds not paid pursuant to paragraph 5 above shall
revert to City upon said termination.
9 . For purposes of notice under this agreement, all notices shall be
considered effective upon being sent by certified mail to. the
following addresses:
CITY: ECONOMIC OPPORTUNITY COMMISSION: ,
City Clerk Economic Opportunity Commission
P.O. Box 8100 880 Industrial Way
San Luis Obispo, Ca. 93406 San Luis Obispo, Ca. 93401
IN WITNESS WHEREOF, . the parties hereto have executed this agreement
by their proper officers duly appointed:
THE ECONOMIC OPPORTUNITY COMMISSION, A NON-PROFIT CORPORATION:
THE CITY OF .SAN-LU-IS OBISPO, A MUNICIPAL CORPORATION:
City A min strative Officer
HRCII:eocshelt
rwv/12july89
EOC '
ECONOMIC OPPORTUNITY COMMISSION
^_n_Lws Ob,spo County. Inc.
9?O Industrial Way c> San 1\LV"b ma 93401 805!544-4355
April 18;1990 APR i ;;11990
ADMINISTRATION
SAN LNC Gomm rA
Mayor Ron Dunin
Councilwoman Peg Pinard
Councilwoman Penny Rappa
Councilman Jerry Reiss
Councilman Bill Roalman
City of San Luis Obispo
P.O. Bos 8100
San Luis Obispo,CA 93403-8100
Dear Mayor Dania and City Council Members:
For the past two years, the County of San Luis Obispo and the City of San Luis
Obispo have joined EOC and the private sector in a community partnership to
1 provide services to our homeless residents. Through a joint funding arrangement,
BOC has been operating the Homeless Shelter Program since 1989,providing
emergency housing and services to over 45 residents per night,
We have found that the partnership of local governments, the private sector and
our community action agency to solve the pressing homeless problem is unique in
California. Our collaborative effort is serving as a model for other communities
throughout the State. Our experiences here have also been noted by State officials,
and are serving as the basis for revised State guidelines on homeless programs.
Support from the local private businesses, organizations and individuals has been
outstanding. As you will note on the attached list of contributors,almost$50,000
in goods and services has been donated for the Orcutt Road shelter project. Many
thousands more has been donated for support of the homeless program. Without
the local show of support, we would have undoubtedly fallen short of our goal of
establishing a shelter on Orcutt Road.
When we began planning the Homeless Shelter Program with County and City staff
in 1988, none of us understood the extent of the homeless problem, nor the real
costs of opening a new shelter site. The original budgets submitted to you by staff
predicted that the shelter would serve 35 clients per night. The actual average
1 number of clients is over 45 per night (a 28.5X increase). Even with the increased
usage, we are still turning needy homeless persons away due to lack of space.
V1,�YtL W�f S l C_1 C ri u n t . c n C I q •,THr / lori
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Mayor Dunin and City Council Members
Page Two-
April 18, 1990
The original budgets also did not anticipate the site preparation costs for the Orcutt
Road project, which have amounted to approximately $88,262. While much of this
cost was absorbed by the private sector donations,funds originally stated for the
operating budget had to be diverted to site preparation.
Because of the underestimated need for homeless services, as well as the
unanticipated site preparation costs,the Homeless Shelter Program is facing a
$33,616 deficit as of June 30, 1990. This 11.5x shortfall is actually rather small
given that service levels have increased 28.5X over the original budget To keep
the program in operation, we are asking both the City and.the County to each
provide S 16,858 to adjust the Homeless Shelter Program budget to correct the
original underfunding. We look forward to your support of this increase.
We also want to make you aware of the planning for fiscal year 1990-1991. E0C
staff has been working diligently with County and City staff to plan a program at
the Orcutt site that will serve up to 55 persons a night. This would entail a funding
increase of approximately 2 51t over last year by the City and County to meet the
homeless needs.
For the coming year, BOC is involved in another project to assist homeless families
attain self-sufficiency. In conjunction with the City of Atascadero, the City Housing
Authority and the County, was are planning a transitional housing project. The
North County Women's Shelter, the San Luis Obispo Women's Shelter and the ROC
Shelter will be able to refer families to this innovative project which is the next .
step beyond a temporary emergency shelter. We are also challenging other cities
in the County for support of other projects to aid the County's homeless population.
As was learn from this project, and come to fully understand the magnitude of the
resources necessary for this undertaking, it is vitally important that we not lose
sight of our purpose. Our vision was to provide shelter and food to homeless
people from throughout our area. Each night for the past year, we have provided
those services to an ever-increasing population. The need for the Homeless Shelter
Program has exceeded what the City, County or BOC originally anticipated, and
occasionally goes beyond our ability to meet the needs.
cii
Mayor Dania and City Council Members
Page Three
April 18, 1990
Let's recognize our success and continue to provide quality services to homeless
people is need. Thank you in advance for your continued support and that of your
staff. Joel Diringer, BOC Board, Chair, Gwen Guyre and I will be scheduling
appointments with you and the Council Members to answer any questions.
Sincerely,
C
1 agar Mi2abeth -Biz- Steinberg
BOC Board Chair Executive Director
JD-FSmp
Encl.
cc: John Dunn
i
f
ECONOMIC OPPORTUNITY COMMISSION
San Lu:s Obispo County. Inc.
850 Industrial Way O San Luis Obispo. Cal.!orn:a 9301 805'544-4355 April 100 1990
ORlJJTT ROAD SHELTER REHABILITATION PROJECT: IN-KIND/DDNATIONS/VOIIJNTEER.S
*figures are estimates vhere exact sums still to be determined.
1. Air--Vol Block Company, SLO $ 600.00*'
2. Arbor Tree Surgery, Atascadero 490.00
3. Curt J. Bailey Masonry Inc., Arroyo Grande 630.00*
4. Beehive Mobile Home Sales, Atascadero 10350.00
5. Burke Construction Company, SLO 2,554.00
6. California Conservation Corps, SLO 149313.00*
7. Consolidated Electrical Distributors, SLO 600.00*
8. Courtney b Associates, Architects, SLO 39265.00
9. Cowboy, Incorporated,. Arroyo Grande 2,500.00*
10. Engineering Development Associayes, SLO 19000.00*
11. Intl Brotherhood of Electrical Workers, SLO 39000.00* .
12. J.W. Design b Construction 19200.00
13. F . Muff Co., Concrete Saving b Breaking, Atas. 108.00
lei. Plumbers S Steamfitters Local 403, SLO 29500.00*
15. Al Rizzoli, Sal Luis Garbage, SLO 250.00*
16. San Luis City Planning Department 50.00
17. San Luis City Water Department 3,100.00*
18. San Luis Ready Mix 165.00*
19. Sunderland Construction, SLO 750.00*
20. Thoma Electric, SLO 500.00*
21. Thomas b Sons Mobile Home Service, Atascadero 365.00
22. CalPoly Architecture Club, SLO 750.00*
23. H. E. Robinson, Construction Supervisor 84125.00
Estimated minimum TOTAL: $48,165.00
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Cc _, Ac P � s . a , - . o 5 0 C . L - t
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SUPPORTERS OFEOC HOMELESS SHELTER
City of San Luis Obispo
County of San Luis Obispo
Alcohol Services
Alpha Video
Cal Poly Architecture Club
Cal Poly Residence Residence Hall Students
Cal Poly Student Community Services
Carpenter's Local Union *1632
Casa Solana, Inc.
Channel 15 TV
Church of Christ
Church of Religious Science -.Atascadero
Church of the Latter Day Saints, San Luis Obispo
Courtney& Associates, Architects
Department of Rehabilitation
Department of Social Services
Domino's Pizza
El Polio Loco
Emergency Shelter Program
Employment Development Department
Federal Emergency Management Agency
Food Bank of San Luis Obispo County
Gideon Productions
House of Prayer
International Brotherhood of Electrical Workers IBEW Local *639
Laborers' International Union *1464
Lion's Club, Cambria, CA
Nipomo Health Services
Old Mission Church, San Luis Obispo
PG&E
Pacific Home Improvement Center
Plumbers and Steamfitters Local ' 403
Presbyterian Church of SLO
Private Industry Council
Quaglino's True Value Hardware
St Peter's by the Sea Episcopal Church, Morro Bay
Salvation Army
SLO Baked
State Department of Economic Opportunity
Transitions, Inc.
Unity Church - San Luis Obispo
Veteran's Services Office of San Luis Obispo
Vineyard Christian Fellowship, San Luis Obispo
Women's Medical Auxiliary
Numerous individual donors