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.
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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 (312) fund unreserved fund balance to:
312.9660.51670.30206 State Grant Funding HRC
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4. Fiscal Impact
The total expenditure for the Agreement is $2,970,000 and will be funded through SB2-Building Homes & Jobs Act (312):
312.9660.51670.30206 State Grand Funding HRC
Upon approval of this appropriation, the estimated unreserved balance of the SB 104 state grant accepted by the City Council on March 26, 2024, at June 30, 2024 will be $0.
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 has partnered with The HUB OC (HUB) to oversee and manage the HUB Resource Center (HRC), located at 517 W. Struck to provide operations and services for individuals and families experiencing homelessness, including but not limited to:
• 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, 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 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 to support 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.
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 SB 104 funding will allow the supportive services to continue at the HRC after June 2024, once the HOME-ARP grant funds are exhausted.
Operating Agreement
The proposed Agreement commences on June 1, 2024, and outlines The HUB’s and the City’s responsibilities relative to operation and maintenance of the HRC and guidelines for use of the funding. The Agreement has an initial term of five years.
The current proposed not-to-exceed amount is $2,970,000. Although the total grant amount is $3 million, staff is proposing that 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. One million dollars of the funding may be used toward site improvements. Any site improvements proposed by the HRC must receive prior approval from the City.
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 accepted by the City Council on March 26, 2024 at June 30, 2024 will be $0. Staff will request to carryover the remaining appropriations in this account year-to-year to continue funding the services.
7. ATTACHMENTS
• Operating Agreement with The HUB OC