Title
Support the request to:
a. Authorize County of Monterey Department of Social Services (DSS) to engage County financial advisors in the development of financing strategies for the Broadway Family Connection Project (BFCP) that will replace the County building located at 1281 Broadway Ave, Seaside; and
b. Provide direction to staff to work with the County’s financial advisors on evaluating options for financing the development and construction of the building; and
c. Recommend that the ensuing financing options be presented to the Board of Supervisors for consideration.
Report
RECOMMENDATION:
It is recommended that the Budget Committee support the request to:
a. Authorize County of Monterey Department of Social Services (DSS) staff to engage County financial advisors in development of financing strategies for the Broadway Family Connection Project (BFCP) that will replace the county building located at 1281 Broadway Ave, Seaside; and
b. Provide direction to staff to work with the County’s financial advisors on evaluating options for financing the development and construction of the building; and
c. Recommend that the ensuing financing options be presented to the Board of Supervisors for consideration.
SUMMARY/DISCUSSION:
The BFCP is a new 60,000 square foot community services center that will replace the 11,000 square foot County facility located at 1281 Broadway Ave, Seaside, CA. In Fiscal Year 2022-2023, the Capital Improvement Program (CIP) work plan included the BFCP as one of the County’s priority projects with the goal of replacing the current County facility located at 1281 Broadway Ave, Seaside. To date, the County has committed $5,152,500 for planning, design, engineering, and environmental tasks. At present, the County-owned building houses a portion of the Department of Social Services (DSS). The new, larger facility will co-locate County services provided by multiple departments including but not limited, but not limited to, DSS, the District Attorney’s Family Justice Center, Monterey County Free Libraries, and Women, Infants and Children (WIC) office. The building will also serve as a hub for public hearings and meetings, as well as a broad range of County services and community programming and will have a multi-level public parking structure.
According to the U.S. Department of Housing and Urban Development (HUD) FY2023 ACS 5-Year 2011-2015 Low- and Moderate-Income Summary Data, 44.67% of Monterey County residents are low-and moderate-income (LMI). DSS touches the lives of approximately 262,000, or 60%, of the County's approximately 430,000 residents. In the Seaside area alone, DSS issues approximately $194 million in benefits annually. Co-location of services in the new County facility presents an opportunity to further magnify impact for low-income individuals and families by serving as a hub for multiple County programs and services.
FINANCIAL CONSIDERATIONS:
The total estimated cost of the center is $112,362,324. To date, the County has invested $5,152,500 for the planning, design, engineering, and environmental tasks. As per the CIP, $3,312,419 of that total is the planned expenditure amount for FY 2024-25 and would accommodate consulting fees for the development and structuring of a financial strategy to address the estimated remaining unfunded $107,209,824 amount needed to complete the project. The BFCP was approved as a County project supported by the County Legislative Committee and, as such, staff is working with County lobbyists to pursue state and federal appropriations to support the project.
Given these options, staff would request that the Budget Committee support and provide direction to work with the County’s financial advisors to develop and evaluate financial options for funding the completion of the Broadway Family Connection Project.
OTHER AGENCY INVOLVEMENT:
DSS staff have collaborated with the County Legislative Committee, Capital Improvements Committee, Health Department, District Attorney’s Office, Public Works, Facilities, and Parks, and Monterey County Free Libraries.
FINANCING:
The Department of Social Services is recommending that the consulting fees for the development and structuring of a financial strategy be covered under Capital Projects funding for this project to develop and evaluate financial options for the remaining funding to complete this project. Sufficient appropriations of $3,467,153 for the BFCP are included in the Capital Project Fund 404, Appropriation Unit PFP057, Budget Unit 8564 FY 2024-25 Adopted Budget.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This action correlates to strategic Administration, Infrastructure and Health and Human Services initiatives. The building supports physical infrastructure that improves the quality of life for county residents and supports the economy while promoting the administration of county services and access to services and programs that will support health and the quality of life of residents through collaboration with the community.
Mark a check to the related Board of Supervisors Strategic Initiatives:
Economic Development
X Administration
X Health & Human Services
Infrastructure
Public Safety
Prepared by: Lauren Suwansupa, Finance Manager II, x 4404
Approved by: Lori A. Medina, Director, x4430