Title
a. Approve and authorize the County Administrative Officer or designee, to execute a non-standard agreement with DignityMoves, a California non-profit corporation, for the development of a 34-unit low-barrier housing navigation center in the City of Watsonville, that provides temporary living facilities to individuals experiencing homelessness in the Pajaro River area, effective upon execution through June 30, 2026, for a total agreement amount not to exceed $5,034,591; and,
b. Authorize and direct the Auditor-Controller to issue a one-time payment to DignityMoves in the amount of $2,000,000 upon execution of this agreement with an invoice to be used for start-up hard costs for the development site and to expedite expenditures to meet a grant deadline by June 30, 2024; and,
c. Approve and authorize the County Administrative Officer or designee, to sign up to three (3) future amendments to this agreement where amendments do not exceed 10% ($503,459) and do not significantly alter the scope of services as determined by the Director of Homeless Services and subject to approval by County Counsel.
Report
RECOMMENDATION:
a. Approve and authorize the County Administrative Officer or designee, to execute a non-standard agreement with DignityMoves, a California non-profit corporation, for the development of a 34-unit low-barrier housing navigation center in the City of Watsonville, that provides temporary living facilities to individuals experiencing homelessness in the Pajaro River area, effective upon execution through June 30, 2026, for a total agreement amount not to exceed $5,034,591; and,
b. Authorize and direct the Auditor-Controller to issue a one-time payment to DignityMoves in the amount of $2,000,000 upon execution of this agreement with an invoice to be used for start-up hard costs for the development site and to expedite expenditures to meet a grant deadline by June 30, 2024; and,
c. Approve and authorize the County Administrative Officer or designee, to sign up to three (3) future amendments to this agreement where amendments do not exceed 10% ($503,459) and do not significantly alter the scope of services as determined by the Director of Homeless Services and subject to approval by County Counsel.
SUMMARY/DISCUSSION:
The County Administrative Office, Homeless Services Program (CAOHS) staff recommends the Board of Supervisors (BOS) approve a non-standard agreement between the County and DignityMoves, a California non-profit organization (DM), for a total agreement amount not to exceed $5,034,591. This non-standard agreement will be funded by an Encampment Resolution Funding (ERF-2-R) grant and will have a term effective upon April 23, 2024 through June 30, 2026 to develop a low-barrier navigation center, hereinafter referred to as Recurso de Fuerza Village (RdF Village), located in Watsonville, California for the public purpose of providing interim housing to individuals experiencing homelessness in the Pajaro River area within the jurisdictional boundaries of the County of Monterey (County), the County of Santa Cruz (COSC) and the City of Watsonville.
The State of California (State) created the ERF grant program in 2022 under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (sections 50250 et seq.), to increase collaboration between the California Interagency Council on Homelessness (Cal ICH), local jurisdictions, and continuums of care (CoC’s) to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments.
In June 2023, Cal ICH selected the CAOHS’s application proposal for the RdF Village program in the amount of $7,986,354 of ERF-2-R and executed an agreement with the County for the ERF-2-R grant program terms and conditions. The State grant agreement contains strict fiscal deadlines to expend 50% and obligate 100% funding by June 30, 2024; while the remaining 50% is to be expended by the grant term ending of June 30, 2026.
In consideration of the fiscal deadlines for the ERF-2-R grant per the State agreement (Attachment A), CAOHS staff recommends the BOS approve the execution of this agreement with DM to subcontract the site development and construction of pre-made modular units for the build of RdF Village. Additionally, CAOHS staff requests the BOS authorize and direct the Auditor-Controller to provide a one-time payment with an invoice in the amount of $2,000,000, upon execution of this agreement.
DM is an established non-profit development management organization that specializes in addressing unsheltered homelessness using state-of-the-art modular and prefabricated components to build individual non-congregate low-barrier service shelter (Tiny Home Villages) for interim housing. DM subcontracts with appropriate vendors who produce these non-congregate units, and who also provide architectural, contracting, and engineering services. DM has been funded by similar jurisdictions using grant funding to develop Tiny Home Villages due to the increased demand on homeless services as emphasized by the State’s investments and major legislative changes that streamline shelter production including the ERF program. DM has a deep understanding of today’s laws, grant funding requirements, and has delivered similar services to other communities in California.
The CAOHS intends to transfer ownership of the modular units for a nominal fee to COSC at the conclusion of the ERF-2-R grant period of June 30, 2026, per the Memorandum of Understanding (MOU) between the County and COSC to establish the roles and responsibilities in this multijurisdictional partnership for the implementation and management oversight of the RdF Village program, approved by the BOS on February 27, 2024.
OTHER AGENCY INVOLVEMENT:
The Office of the County Counsel-Risk Management have approved the proposed agreement as to form and insurance and indemnification provisions. The Contracts and Purchasing Department approved a sole source justification request for DignityMoves in July 2023. The Auditor Controller’s Office has reviewed the proposed agreement but does not agree to the non-standard payment provisions. The CAO Budget and Analyst Division concurs with the Auditor-Controller and does not agree to the non-standard payment provision.
FINANCING:
This action does not impact the General Fund. The proposed agreement will be fully funded by an Encampment Resolution Funding grant program (ERF-2-R) allocation in the amount of $5,034,591.
Upon conclusion of the Encampment Resolution Funding grant period ending June 30, 2026, per the MOU, prior to the transfer of the units, the County of Santa Cruz will work with the selected service provider to identify ongoing sustainable funds to support the operations of the RdF Village program.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This initiative correlates to the Health & Human Services Strategic Initiative adopted by the
Board of Supervisors by working collaboratively to address and develop a plan for ending homelessness.
Mark a check to the related Board of Supervisors Strategic Initiatives
__ Economic Development
__ Administration
X Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Sarah Federico, County Homeless Services MAII, ext. 5341
Roxanne Wilson, County Homeless Services Director, ext. 5445
Approved by: Deborah Paolinelli, Assistant County Administrative Officer, ext. 5309
The following attachments are on file with the Clerk of the Board:
Attachment A -State Grant Agreement
Attachment B - Proposed Agreement with DignityMoves
Attachment C - ERF Award Budget