TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. Subject
title
Operating Agreement with The HUB OC for support services and use of the property located at 517 W. Struck for the HUB Resource Center. (Continued from May 14, 2024)
body
2. Summary
A five-year Operating Agreement with The HUB OC for operations and use of the property located at 517 W. Struck to continue wrap around services such as, food, shelter referrals, social services, laundry, etc. for those experiencing homelessness.
3. Recommended Action
recommendation
1. Approve the Operating Agreement with The HUB OC to continue supportive services and use of the property located at 517 W. Struck in the amount not to exceed $2,970,000; and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Authorize the appropriation of $3,000,000 from the SB2-Building Homes & Jobs Act Fund (312) unreserved fund balance to expenditure account number 312.9660.51670.30206, SB2-Building Homes & Jobs Act Fund (312) - State Grant Funding HRC.
end
4. Fiscal Impact
The total expenditure for the Agreement is $2,970,000 and will be funded through:
312.9660.51670.30206 SB2-Building Homes & Jobs Act Fund (312)
Upon approval of this appropriation, the estimated unreserved balance of the SB 104 state grant accepted by the City Council on March 26, 2024, will be $0 on June 30, 2024
5. Strategic Plan Goals
Goal 1: Provide for a safe community.
a: Provide staffing and resources to deliver services that ensure public safety.
6. Discussion and Background
Background
The City partnered with The HUB OC (HUB) to oversee and manage the HUB Resource Center (HRC), located at 517 W Struck Ave.to provide onsite operations and services for individuals and families experiencing homelessness, including but not limited to:
• distribution of food, hygiene supplies, and mail
• access to showers, restrooms (including ADA facilities), and laundry services
• facilitation of on-site appointments and referrals for social services, haircuts, medical, dental, vision, COVID-19, and veterinary services
• coordination with shelter providers and partners utilizing the Coordinating Entry System and Homeless Management Information System
• access to clothing providers and phone, facsimile, and phone charging services
The City authorized continued service provisions through the HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) approved by the City Council in May 2023. The federal HOME-ARP funding is expected to be exhausted by June 2024.
Senate Bill 104 (SB 104)
On December 12, 2023, the City received a total of $3,000,000 from Senate Bill 104 through the California Department of Housing and Community Development (HCD). Section 93 of Senate Bill 104 (SB 104) amended Section19.54 of the Budget Act of 2022 and 2023 and added items of appropriation to the California State Legislature’s spending plan.
The $3,000,000 in SB 104 funds received by the City were allocations from Sections19.564(a)(32) and Section19.564(a)(66) specifically for the support of the HRC. The budget allocations were granted in response to a budget request submitted by Townsend Public Affairs on behalf of the City to Senator Tom Umberg and Assemblyman Avelino Valencia. The City acknowledged the funds through Resolution No. 11534 at the City Council Meeting on March 26, 2024. It is important to note that this funding may only be used in support of the HRC. The legislation approving the entitlement does not allow the City to use this funding for any other purposes.
The agreement with the HUB establishes the eligible expenses and activities identified by the City for the support of the HRC in compliance to Section 19.564 of SB104 which delegates the City, as the recipient, the authority to establish the allowable uses of the funds. The SB104 funding will allow the supportive services to continue at the HRC once the HOME-ARP grant funds are exhausted.
Operating Agreement
The proposed Agreement grants the HRC permission to operate on the site and outlines The HUB’s and the City’s responsibilities relative to operation and maintenance of the HUB Resource Center. Additionally, the Operating Agreement includes guidelines for use of the SB 104 state funding received for the HRC. The agreement has an initial term of five years. The current proposed not-to-exceed amount is $2,970,000, $1 million of which may be used toward site improvements and the remaining funds for operations. Any site improvements proposed by the HRC must receive prior approval from the City.
Although the total grant amount is $3 million, staff is proposing the City reserve $30,000 to cover incidental expenses the City may incur during the transition of facility management to the HRC. The expense for this service is the City’s responsibility and would be paid out of the reserved $30,000. Any remaining funding would be added to the HRC’s contract authority via amendment.
In addition, the agreement demonstrates the partnership between a nonprofit entity and a public agency to provide navigation services for the unhoused population. This unique partnership creates opportunities and opens doors to seek and qualify for outside grant funding on Federal, State, and local levels. The HRC will continue to operate unless outside funding can no longer be secured through the partnership, the HRC is no longer serving the needs or goals of the City, or either entity no longer wishes to be a partner.
At this time, staff recommends that the City Council approve the proposed Operating Agreement with the HUB and appropriate the total amount of the SB 104 funding to continue site operations at the HRC. Upon approval of this appropriation, the estimated unreserved balance of the SB 104 state grant at June 30, 2024 will be $0. Staff will request to carryover the remaining SB 104 appropriations in the appropriate expenditure accounts year-to-year to continue funding the services. Staff is not proposing the use of any other City funds to support the HRC when the SB 104 funding is exhausted.
7. ATTACHMENTS
• Operating Agreement with The HUB OC