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HomeMy WebLinkAbout2003-11-04 - AGENDA REPORTS - WINTER SHELTER LEASE AGMT (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval: / Item to be presented by: Vincent Bertoni DATE: November 4, 2003 SUBJECT: EMERGENCY WINTER SHELTER LEASE AGREEMENT DEPARTMENT: Planning and Building Services RECOMMENDED ACTION Council direct the City Manager or designee to enter into a one year agreement for an emergency winter shelter on City owned land at the Via Princessa Metrolink Station. Council direct staff to continue to work with the Santa Clarita Community Development Corporation (SCCDC) to find a permanent location. BACKGROUND From 1997 to 2002, the City of Santa Clarita has allowed the SCCDC to utilize the Santa Clarita Sports Complex as a Temporary Winter Shelter. Due to construction of the Santa Clarita Aquatic Center, that site is no longer available for use. During the winter of 2002 through 2003, the facility operated on a portion of the Princessa Metrolink Station. On September 16, 2003, the Planning Commission approved a minor use permit to operate an Emergency Winter Shelter at the Via Princessa Metrolink Station. The Minor Use permit approval was not appealed to the City Council and is currently in effect. By separate minute action, the Planning Commission made a recommendation to the City Council for approval of a one year lease to the Santa Clarita Community Development Corporation (SCCDC) to operate the facility. ANALYSIS A number of factors were considered prior to making a recommendation for a one year lease. The eastern end of the Santa Clarita Valley is one of the fastest growing areas of the City. Although parking is adequate to support the Emergency Winter shelter today, future needs for parking cannot be accurately projected. Additionally, a five year lease would commit City resources designed and designated for another use. The emergency shelter will be located on the western side of the parking lot nearest the bus turn around (see Attachment 1). The shelter will operate out of modular units. No direct cost to the General Fund is anticipated as a result of this lease request. The MTA plays no role at the Princessa station. The Southern California Regional Rail Authority (SCRRA) provides service at the City's station. Staff acted as liaison between the SCCDC and Metrolink customers, including Metrolink Community Relations staff, in all discussions. As part of the Minor Use Permit process, SCCDC notified Princessa Metrolink Station patrons, Friendly Valley HOA and Vista Del Canon HOA. In addition, the SCCDC conducted community meetings with the Friendly Valley HOA and the residents of Vista Del Canon about the proposed use of the Princessa Metrolink Station for an Emergency Winter Shelter. In general, Friendly Valley residents were supportive while Vista Del Canon residents expressed strong opposition. The SCCDC will continue to work with the City to identify and obtain suitable land for a permanent transitional living center to serve the homeless population. ALTERNATIVE ACTIONS 1. Decline to enter into a one year agreement for an Emergency Winter Shelter. 2. Enter into a multi-year agreement for an Emergency Winter Shelter 3. Other direction as detennined by the City Council. FISCAL IMPACT The SCCDC was awarded $31,000 in CDBG funds through a previous City Council action. These funds are in the 2003-20004 budget and staff recommendation does not increase the budget allocation. The SCCDC has submitted a letter outlining the increased financial hardship of a one year agreement instead of a multi-year agreement (see attached letter). In light of this hardship the SCCDC is requesting that the City consider incurring the cost of this potential financial short fall. This unknown level of supplemental fiscal support has not been previously approved or appropriated by the City Council, and would be in addition to the $31,000 in CDBG funding already appropriated to the Emergency Winter Shelter Project. ATTACHMENTS Map of Princessa Metrolink Station -Attachment 1 Letter from Santa Clarita Community Development Corporation R 3_ b Ulf � 4 p.. O U n n 0g \ A O % U •F � q _O Q 9 3 sn 8 a R. �c� l2•xF& 3,s, „y � rojyz 12 sonrp. 15 SCCDC "Making Santa Clarita Better One Life at a Time" President Timothy A. Davis Vice President Mark T. Young Secretary Laurel Davis Treasurer Barbara Preheim Executive Director David R Tumilty Board of Directors Richard M. Assad Dana Coen Javonda Cronenwett Rev. Lynn lay Lois Jucksch Lyle C. Lodwick Deborah L. Mahoney Peter Mahoney Michael G. McFadden Daniel J. Morefield Claire O'Garro Andy Pattantyus Stephen K. Peeples Mary E. Sandoval Stephen C. Schmidt SANTA CLARITA COMMUNITY DEVELOPMENT CORPORATION A California Non -Profit Public Benefit Corporation (I.R.C. §501(c)(3)) • Tax Identification No. 95-4587823 October 20, 2003 RECE City of Santa Clarita PLANNING DIVISION City Hall, Suite 300 OCT 2 0 2003 23920 Valencia Boulevard PLANNING AND BUILDING SERVICES Santa Clarita, California 91355-2196 CITY OF SANTA CLARITA Re: Five -Year Lease for Emergency Winter Shelter Dear Council Members and City Staff. Approval of a five-year lease for the Emergency Winter Shelter ("EWS") is critical for several reasons. 1. Financing? and Funding. The modular building described in the approved Minor Use Permit ("MUP") will cost approximately $170,000. SCCDC does not have the resources to write that kind of a check, nor would such an expenditure be wise with only a one -season commitment on the site. The units described in the MUP must be financed by the SCCDC. No financing is available without proof that the purchaser/lessee will have the legal ability to conduct its operation involving the modular buildings for at least the term of the financing. SCCDC has analyzed its current and projected budget in detail, and has explored many possible funding and financing sources. The additional expense associated with the modular buildings ($170,000, plus financing costs) can be borne by SCCDC, if the cost is amortized over five years. Given SCCDC's budget, a five-year lease is the minimum occupancy commitment which is acceptable to lending sources. With only a one -winter commitment, SCCDC is prevented from being able to execute the plan described in the approved MUP. 2. Cost Containment and Efficiency. Purchasing a modular building (or leasing one on a five-year basis) is far less expensive than the recurring costs inherent in a seasonal structure model (e.g., the trailers or "Sprung Shelter" tents used in prior winters). For example, the winter -by -winter approach requires a number of repeated actions each fall: rented shelters must be contracted for, 24901 ORCHARD VILLAGE ROAD • SANTA CLARrrA, CALIFORNIA 91355 TELEPHONE 661-259-1298 • FACSIMILE 661-297-8394 SCCDC ONLINE: www.sccdc.org City of Santa Clarita October 20, 2003 Page 2 transported, set up, and seismically secured; stairs and ADA -compliant ramps must be rented (or constructed) and installed; temporary electric, telephone, and water services must be brought in; and all required permits and approvals must be obtained. Then, at the end of the 105 -day EWS season, many of these steps must be reversed: the utility connections must be taken down, and the units pulled up and transported away. The additional cost of the one -winter setup/teardown cycle, in comparison to a five-year setup/teardown cycle, is at least $15,000 per winter. So, over five winters, the additional costs of a season -by -season approach will be at least $75,000. The five-year approach will make it possible to have an all-new, better -looking, better -functioning facility, in place of the rental units used in past winters, for a smaller overall expenditure. 3. Time and Effort. In addition to the out-of-pocket dollar expenditures described above, setting up and tearing down the EWS each season represents a vastly inefficient use of human resources in comparison to setting up a structure that can be used over a number of winters. Hundreds of hours of City staff and SCCDC volunteer time are consumed in actions that would not have to be repeated annually if a longer-term approach than season -by -season were utilized. City staff time is necessary every winter due to the pre -construction site approval and building permitting process, and post -construction inspection and permitting requirements. This time cost would occur only once in five years, not annually, if a five-year lease is approved. The economic cost of this time is more difficult to gauge than the direct out-of- pocket expenses described above, but is easily greater than $10,000 per winter. 4. Long -Term Planning. Under even the most optimistic project timelines, opening a permanent location for a shelter is at least a two-year process, starting from when the site is located and acquisition rights (such as purchase or lease terms) are negotiated. The first several months of any timeline will be used in taking the steps needed to obtain an appropriate use permit obtained from the City. The two-year projection assumes that the shelter is to be housed in a "rehabbed"existing building -- for brand-new construction, the timeline expands to at least three years, from acquisition of rights to opening the doors. By approving a five-year lease, the City will allow the volunteer energies of the SCCDC board to be directed toward presenting a long-term solution fully addressing the findings of the City's Homelessness Advisory Task Force, rather than being consumed in a perpetual short-term cycle of temporary site acquisition, set-up and tear -down. A five -winter lease makes practical and economic sense, and will ultimately be to the advantage of all parties concerned. The detailed plans that we have been working on since last 24901 ORCHARD VILLAGE ROAD • SANTA CLARITA, CALIFORNIA 91355 TELEPHONE 661-259-1298 • FACSIMILE 661-297-8394 SCCDC ONLINE: www.sccdc.org City of Santa Clarita October 20, 2003 Page 3 winter, which were incorporated into the MUP application, depend upon a five-year commitment to the site. If, however, the City chooses to grant only a one -season lease, SCCDC will work hard to set up and operate a facility for an Emergency Winter Shelter for the winter of 2003-2004. At this point, we believe that a one -winter facility can be set up once again, although there are numerous challenges and uncertainties. Thank you for your ongoing support of the disadvantaged in our community. Very truly yours, SANTA CLARITA COMMUNITY DEVELOPMENT CORPORATION By: ! w T q�� MARK T. YOUNG pc: SCCDC Board of Directors 24901 ORCHARD VILLAGE ROAD • SANTA CLARITA, CALIFORNIA 91355 TELEPHONE 661-259-1298 • FACSIMILE 661-297-8394 SCCDC ONLINE: www.sccdc.org