Title
a. Approve and authorize the County Administrative Officer or designee to execute Amendment No. 1 to Agreement No. A-17195 with the City of King (“King City”) for a one-time funding contribution towards King City’s acquisition of the Days Inn property, the former HomeKey King City, where the amendment increases the Agreement amount by $300,000 for a revised total amount not to exceed $861,000 with no change to the existing term of July 1, 2024 through August 11, 2025; and
b. 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% ($86,100) and do not significantly alter the scope of services as determined by the Director of the Homelessness Strategy and Initiatives Division and subject to approval by County Counsel.
Report
RECOMMENDATION
It is recommended that the Board of Supervisors:
a. Approve and authorize the County Administrative Officer or designee to execute Amendment No. 1 to Agreement No. A-17195 with the City of King (“King City”) for a one-time funding contribution towards King City’s acquisition of the Days Inn property, the former HomeKey King City, where the amendment increases the Agreement amount by $300,000 for a revised total amount not to exceed $861,000 with no change to the existing term of July 1, 2024 through August 11, 2025; and
b. 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% ($86,100) and do not significantly alter the scope of services as determined by the Director of the Homelessness Strategy and Initiatives Division and subject to approval by County Counsel.
SUMMARY/DISCUSSION
This Amendment No. 1 to Agreement No. 17195 (“Agreement”) with the City of King (“King City”) is to provide a one-time funding contribution of $300,000 provided by available funding from the Health Department’s Whole Person Care Pilot funding program to contribute to King City’s acquisition of the Days Inn property (“Property”) located at 1130 Broadway Street in King City.
Upon completion of the acquisition process, the Property will be transferred from King City to the Housing Authority of the County of Monterey to convert it into 45 studio units of permanent supportive housing. Once renovations are completed, the Property will be available for tenant use by the former occupants of an encampment site along the Salinas River adjacent to King City currently living in temporary shelter provided by King City under the original Agreement at the Monarch Inn located at 60 Broadway Street in King City.
The Property, formerly known as the HomeKey King City, is a strategically important location for expanding permanent supportive housing in South Monterey County. The California Department of Housing and Community Development and the Central California Alliance for Health, through separate agreements with King City, are also contributing a significant portion of funding for the purchase in the amount of $4,100,000 for a total acquisition cost of $4,400,000. This acquisition will help sustain and preserve this HomeKey project for Monterey County residents experiencing homelessness with mental illness and/or other health conditions.
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 by expanding available permanent supportive housing units in South Monterey County.
OTHER AGENCY INVOLVEMENT:
The Office of the County Counsel has approved the proposed Amendment No. 1 to Agreement No. 17195 as to form, respectively.
FINANCING:
There will be no impact on the General Fund from approval of this action. If approved, this Amendment No. 1 will be financed with the Health Department’s Whole Person Care Pilot Program funding (023-4000-8473-HEA017) in the amount of $300,000. Sufficient appropriations and estimated revenues are included in the Department of Health FY Adopted Budget 2024-2025.
Prepared by: Sarah Federico, Management Analyst II, CAO-HSI Division, ext. 5341
Reviewed by: Roxanne Wilson, CAO-HSI Division, ext. 5445
Approved by: Deborah Paolinelli, Assistant County Administrative Officer, ext. 5309
Attachments: Amendment No. 1 with Exhibits; Agreement A-17195