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HomeMy WebLinkAbout2021-04-13 - AGENDA REPORTS - BRIDGE TO HOME FUNDING AGMT (2)Agenda Item: 13 CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: fillI Uâ–º ?J DATE: April 13, 2021 SUBJECT: APPROVAL OF ONE-TIME FUNDING FOR THE RELOCATION OF BRIDGE TO HOME TO A TEMPORARY SITE ON PINE STREET DEPARTMENT: Community Development PRESENTER: Michael Villegas RECOMMENDED ACTION City Council: 1. Appropriate one-time funding in the amount of $100,000 to expenditure account 19000- 5161.001 from the General Fund fund balance for costs associated with the temporary relocation of Bridge to Home. 2. Authorize a one-time, zero interest loan to Bridge to Home in amount not to exceed $110,000, to be repaid in full within six months of payment issuance, for costs associated with the relocation of its homeless shelter; and appropriate $110,000 to expenditure account 19000-5161.001 from General Fund fund balance to facilitate the loan. 3. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND Bridge to Home (BTH) is a local non-profit(c)(3) corporation and year-round homeless shelter in the City of Santa Clarita (City). BTH has resided on Drayton Street since 2011 and is currently in the process of building a permanent shelter, with construction expected to commence later this year. The site of the permanent shelter was donated to BTH by the City in September 2017. In March 2020, as a result of the COVID-19 pandemic and subsequent guidelines established by the Centers for Disease Control and Prevention (CDC), BTH was forced to relocate or shutdown operations. Given the state of emergency and need for shelter services in the Santa ClaritaValley, the City offered the Newhall Community Center (NCC) as a temporary location, which was accepted by BTH and has been used as a temporary homeless shelter since. In January 2021, the Pabe I Packet Pg. 201 City informed BTH that they would need to relocate by March 31, 2021, as the NCC was needed for City operations, specifically enrichment services for the Newhall community as public health orders are being lifted in Los Angeles County. Over the last two months, BTH and City staff have actively pursued potential sites Citywide and explored several locations that could serve as a temporary shelter for up to 24 months while the permanent shelter is constructed. Sites explored included the Los Angeles County Public Works Maintenance Yard, the Santa Clarita and Via Princessa Metrolink stations, the Drayton Street property, and several other privately -owned lots, all of which were deemed infeasible. However, in early/mid-March, City staff identified a potential location at 23850 Pine Street on a property owned by Trammel Crow (TC) and connected both parties for discussions. On March 17, BTH submitted a Temporary Use Permit (TUP) application to use the TC site as a temporary homeless shelter for approximately 18-24 months, which would adequately provide sufficient time for the construction of the permanent shelter. BTH plans to move a total of eight modular buildings, portable restrooms, and showers to facilitate the needed social distancing to meet CDC guidelines. Four of the modular buildings are being donated by the Saugus Union School District in kind to help BTH meet its needs. The site will be secured with fencing and have security 24-hours a day, seven days a week. As part of the process, a 10-day notice was mailed by the City to inform businesses and property owners within a 1,000-foot radius of the TC site of the TUP application. In total, the City received three comments from businesses and residents in the area, with one being completely opposed to the temporary shelter citing concerns with safety. In response to this, City staff has worked with BTH and TC to ensure that the property is properly secured at all times and procedures are in place to minimize the potential impact to the surrounding community. Additionally, the Los Angeles County Sheriff's Department and City's Code Enforcement Programs were both notified of the TUP application to ensure additional precautions are taken in the area. After careful review and consideration, the City approved the TUP application for BTH on April 5. To facilitate the move to the new, temporary location, the estimated cost is approximately $210,000. This includes costs for site preparation, transportation, needed utilities, and administrative expenses. BTH has initiated its capital campaign for its permanent shelter and has limited operating funds to facilitate this move. As a result, they have requested the City's assistance to front all and/or a portion of the costs associated with the move. The recommended action is that the City Council authorize the City to provide BTH with a one- time contribution of $100,000 for costs associated with the move. In addition, as part of the recommended action, City staff is requesting the City Council to authorize a one-time, zero interest loan in an amount not to exceed $110,000 to facilitate the temporary relocation should BTH be unable to secure funding in a timely manner. BTH is actively working with Los Angeles County and the Los Angeles Homeless Services Authority to secure a match contribution and avoid taking a loan from the City. If the loan is provided, BTH would be required to repay the loan, in full, within six months, with a progress payment being made within three months of payment issuance. Page 2 Packet Pg. 202 A lease agreement is currently being reviewed by both parties for the use of the Pine Street property and will be executed prior to the City releasing any funds. With an agreement and funding in place, BTH would be out of the NCC by the end of April. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Upon approval of the recommendation actions, $210,000 will be made available in expenditure account 19000-5161.001 from General Fund fund balance to cover all costs associated with the temporary relocation of Bridge to Home, inclusive of the one-time contribution and one-time loan. ATTACHMENTS Agreement Page 3 Packet Pg. 203 13.a Council Approval Date: Agenda Item: Contract Amount: AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BRIDGE TO HOME CON-4 THIS AGREEMENT, made and entered into by and between the CITY OF SANTA CLARITA, a municipal corporation, hereinafter referred to as "City," and Bridge to Home, a non-profit 501 (c)(3) corporation and homeless shelter, hereinafter referred to as "Bridge to Home." WITNESSETH WHEREAS, the City has requested Bridge to Home relocate its temporary homeless shelter from its present site at the Newhall Community Center, which is needed for enrichment services for the Newhall community; WHEREAS, the Bridge to Home has executed a lease agreement for the use of approximately 28,000 square feet of improved, privately -owned property at 23850 Pine Street, Santa Clarita, California 91321; WHEREAS, the City received a request from Bridge to Home to assist with costs associated with the relocation of its temporary homeless shelter from the Newhall Community Center to the improved, privately -owned property at 23850 Pine Street, Santa Clarita, California 91321; WHEREAS, the City has determined to appropriate General Fund dollars to provide a one-time contribution to Bridge to Home to help facilitate the relocation of its temporary homeless shelter; and WHEREAS, the City has determined to appropriate General Fund dollars to provide a one-time, zero interest loan to Bridge to Home to help facilitate the relocation of its temporary homeless shelter, while Bridge to Home identifies funding from an appropriate source(s). NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS, AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. City agrees to pay to Bridge to Home and Bridge to Home agrees to accept from the City a one-time contribution in the amount of one hundred thousand dollars ($100,000), to facilitate the relocation of the Bridge to Home temporary homeless shelter. El Packet Pg. 204 13.a 2. City agrees to loan Bridge to Home and Bridge to Home agrees to accept from, and repay, the City a one-time, zero interest loan in the amount of one hundred ten thousand dollars ($110,000), to facilitate the temporary relocation of Bridge to Home. 3. Bridge to Home agrees to repay the full amount borrowed from the City on or before six months (180 days) from the date of payment issuance and make a progress payment to the City in an amount equal to no less than 25 percent of the total amount owed on or before three months (90 days) from the date of payment issuance. 4. Bridge to Home certifies the funds remitted to the City for the repayment of its one- time, zero interest loan come from an eligible funding source(s) and Bridge to Home agrees to indemnify, defend (at City's option) and hold harmless the City, its officers, agents, employees, representatives and volunteers from and against any and all claims, demands or actions seeking reimbursement from the City for any amounts improperly received by the City from Bridge to Home. 5. ELECTRONIC TRANSMISSION OF CONTRACT AND SIGNATURE. The parties agree that this Agreement may be transmitted and signed by electronic mail by either/any or both/all Parties, and that such signatures shall have the same force and effect as original signatures, in accordance with California Government Code Section 16.5 and Civil Code Section 1633.7. (SIGNATURES ON NEXT PAGE) Packet Pg. 205 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on this date of April , 2021. FOR BRIDGE TO HOME: MICHAEL FOLEY, EXECUTIVE DIRECTOR By: Executive Director Date: FOR CITY: KENNETH W. STRIPLIN, CITY MANAGER By: City Manager Date: APPROVED AS TO FORM: JOSEPH M. MONTES, CITY ATTORNEY By: City Attorney Date: Packet Pg. 206