Title
Support adding the 855 East Laurel-Emergency Shelter, Project No. 8875, to the approved FY 2018-2019 Facilities Master Plan (Fund 404) Project list, with estimated expenditures in the amount of $315,000.
Report
RECOMMENDATION:
It is recommended that the Capital Improvement Committee support adding the 855 East Laurel-Emergency Shelter, Project No. 8875, to the approved FY 2018-2019 Facilities Master Plan (Fund 404) Project list, with estimated expenditures in the amount of $315,000.
SUMMARY/DISCUSSION:
On August 28, 2018, the Board of Supervisors directed staff to pursue funding under the Homeless Emergency Aid Program (HEAP). On September 25, 2018, the Board of Supervisors committed County staff, under the terms of a Memorandum of Understanding (MOU), to coordinate with City of Salinas (City) to establish a homeless shelter, permanent supportive/transitional housing and funding for operation of a warming shelter in the City of Salinas. The MOU also commits County and City to share costs and funding for activities related to the predevelopment, programming and design of an emergency homeless shelter in Salinas which are not covered by HEAP or other private funding, with the distribution of costs to be determined later.
Since December 2018, the Resource Management Agency (RMA) has committed approximately $315,000 from the Facilities Master Plan Projects Fund (Fund 404) for staff hours and professional service agreements with design and engineering professionals, geotechnical engineers, and other reporting testing and permitting. These activities all serve to better position the County among other agencies competing for the same HEAP funding.
While the deadline to fully expend HEAP funds has not changed (June 30, 2021), the award date has moved further and further back. Award of HEAP funds is not anticipated until June 2019. Not all project costs will be supported by HEAP funds if awarded, and no costs incurred in advance of an executed contract between the County and the Coalition of Homeless Services Providers are reimbursable. Furthermore, the requirements of the grant dictated that the RMA expedite development and design of the shelter at 855 East Laurel in order to meet strict timelines for construction. The longer it takes to award the funds, the more challenging it becomes to meet the timeline and the more important it is to proceed with completing plans.
With the support of the Capital Improvement Committee, RMA will go before the Budget Committee and full Board of Supervisors with recommendations for FY 2019 funding of the emergency shelter project. RMA has submitted a worksheet for the project for inclusion in the Capital Improvement Program for FY2020-2024.
OTHER AGENCY INVOLVEMENT:
The recommended action will be presented to the Budget Committee on June 26, 2019. The County Administrative Office-Housing Programs Manager lead the HEAP application process with support contributed by Department of Social Services, RMA and City of Salinas staffs.
FINANCING:
Although the 855 East Laurel-Emergency Shelter Project was not included in the approved project list for FY 2018-2019, staff anticipated to incur expenditures up to $315,000 for necessary design activities through June 30, 2019. County anticipates reimbursement up to $100,000 from the City of Salinas pursuant to the County-City MOU executed and amended in 2018. Net cost to the County in FY 2018-2019 is estimated at $215,000 to continue design activities through June 30, 2019. Funding is available from the unassigned fund balance within the Facilities Maintenance Projects (Fund 401), Appropriation Unit RMA004 which functions as a cost center for County facility maintenance and repair projects.
Project cost for FY 2019-20 and FY 2020-21 is estimated to be $6,563,905 with the potential funding by HEAP grant and additional cost reimbursement up to $100,000 from the City of Salinas. Staff will be returning to the Budget Committee for updates in FY 2019-20.
Prepared by: Dave Pratt, Project Manager II (831)796-6091
Approved by: Neville Pereira, Interim RMA Deputy Director, Public Works, Parks & Facilities
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Project Budget
Attachment B - Location Map