HomeMy WebLinkAboutD-3 Staff Report - ARC update and operation costsSCHEDULED ITEM
D-3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: LUCY DEMIRJIAN, SENIOR PROJECT MANAGER
DATE: MAY 6, 2024
SUBJECT: UPDATE ON THE AZUSA RESOURCE CENTER PROJECT AND
OPERATIONAL COSTS
BACKGROUND:
The City adopted Resolution 2023-C27 on June 5, 2023, declaring the existence of a local
emergency and has continued the declaration as it works to address the continuing homeless
crisis. The City received technical assistance from the San Gabriel Valley Regional Housing
Trust (SGVRHT) to evaluate potential sites for an interim housing center and determine the
appropriate number of units. Based on the site analysis, the City identified the property at 975 W.
Foothill Blvd. as the appropriate location for the proposed development site – Azusa Resource
Center or known as “ARC.”
On September 18, 2023, the City Council provided input on the project and authorized staff to
move forward with design and development of the project. City-owned property at 975 W.
Foothill Blvd. was determined to be the most-appropriate for development of a temporary
navigation center based on an assessment of access to basic needs, availability of utilities, on-site
parking, and neighborhood context. The unimproved property was ready for development with
minimal site work. ARC is a 25-unit interim housing site which will provide temporary housing
and onsite supportive services to persons experiencing homelessness while they are connected to
permanent housing.
The San Gabriel Valley Council of Governments (SGVCOG) assisted the City with the
procurement process and selection of a Site Operator based on the SGVCOG’s experience
managing multiple housing sites and ability to bring diverse collaborative partners to provide
inclusive, wrap-around homeless services. A Request for Proposals (RFP) was initially released
on October 19, 2023 for an interim housing site operator. An agreement was not reached and the
RFP was released for a second time in January. Staff worked with the SGVCOG in negotiating a
contract with the Los Angeles Center for Alcohol and Drug Abuse (L.A. CADA) for onsite
supportive services beginning May 2024.
Approved
City Council
May 6, 2024
Update on Azusa Resource Center
May 6, 2024
Page 2
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1)Receive and file an update on the Azusa Resource Center (ARC); and
2)Authorize staff to explore and secure potential grants in the amount of $190K for the
ARC anticipated first year operations funding shortfall; and
3)In the event grant funding is not available, authorize staff to use General Funds reserves
or budget savings.
PROJECT UPDATE:
All development costs for the project are being paid through the American Recovery Plan Act
(ARPA) State and Local Fiscal Recovery Funds previously earmarked by the City Council for a
local resource center. The major cost was the purchase of pre-fabricated modular structures.
LifeArk’s product was selected due to their innovative and durable quality of their product, made
of post-consumer recycled plastic and HCD-approved for use as shelter, interim or permanent
housing. The modules were factory assembled locally, delivered and installed at the project site.
All modules include finished interiors and fixtures. At the time of this report, the contractor has
completed the anchoring of the units and has begun the utility connections.
City staff from the Public Works Department and Light and Water have contributed to the
project with the preparation of utility stubs for connection to the modules. The City also relied on
contractors for the asphalt work and fencing of the site. Portable lighting poles were purchased
for the site and staff opted for boxed trees and plants for light landscaping.
Furnishings for the site include beds, mattresses, small desk and chair for each unit, as well as
furniture for the office and common areas. Large appliances include commercial refrigerator,
heating oven, and washer/dryers. While the City received some donated items from local
business partners, additional supplies and items are being purchased to prepare the center for
opening.
ARPA Funding for Site Work
ARPA TOTAL $1,954,843
Modular units $1,654,984
Site Asphalt $96,614
Site Fencing $61,900
Site Lighting & Landscape $40,000
Furniture and Appliances $30,000
Site supplies & Misc costs $15,000
City utility connections TBD
SITE OPERATIONS:
The technical evaluation committee (TEC) included SGVRHT and City of Azusa staff. The TEC
recommended contracting with L.A. CADA given their demonstrated experience in operating
similar sites, their proposed data reporting and responsiveness to inquiries, and their ability to
quickly onboard qualified staff.
Update on Azusa Resource Center
May 6, 2024
Page 3
L.A. CADA is a California nonprofit public-benefit corporation and licensed substance use and
behavioral treatment provider. The agency offers critical services across a wide continuum of
care and treatment, including outpatient, intensive outpatient, and residential programs. Their
staff of licensed, certified, and registered professionals provide client-centered, trauma-informed,
recovery-orientated services.
As the ARC Operator, L.A. CADA will provide case management and supportive services, with
the goal of stabilizing participants and moving them into permanent housing. This effort includes
intake and assessment of participants to develop individualized housing and services plans to
help participants work toward housing and health goals. Case management includes linkage to
services such as health care, behavioral or mental health services, substance use treatment,
employment services. The operator will maximize connections to programs for which
participants are eligible, getting them document ready, increasing income opportunities, and
offboarding participants into permanent housing placements. L.A. CADA will operate the site in
accordance with the approved Operations, Staffing, and Services Plan. The operator will provide
clients with daily meals and provide 24/7 trauma informed staffing, security and property
management.
The SGVCOG executed an initial contract with L.A. CADA at the end of March 2024 to enable
L.A. CADA to begin hiring efforts. The SGVCOG then assigned the contract to the City of
Azusa to facilitate payment of the sources held by the City. The SGVCOG and SGVRHT will
continue to assist the City with implementation and oversight as the operator is onboarded and
the ARC is ready to open. The total cost of the contract is not to exceed $1,019,104.80 for the
first year, $111.68 bed rate. The contract provides two, one-year options to extend the term upon
mutual agreement of the parties.
Due to the unique nature of the project and escalated timeline, funding for the contract is in
various phases of approval. Funding sources for ARC operations include $207,286 from Year 3
of the Permanent Local Housing Allocation (PLHA) program, approved by the City Council in
November 2023. Approval of allocation from PLHA Year 4 in the amount of $212,152 is set for
public hearing at the next City Council meeting, scheduled for June 3, 2024. The City has also
applied for funding through SGVCOG’s Rapid Housing Development Program (RHoD). Award
of RHoD funds are scheduled for the end of May, and the City may receive funding up to
$410,000 or $45 per bed/per night.
Funding Sources for Operations
TOTAL CONTRACT $1,019,104.80
PLHA Year 3 $207,286.00 Approved November 6, 2023
PLHA Year 4 $212,152.00 Public Hearing June 3, 2024
RHoD (SGVCOG) $410,000.00 SGVCOG Board meeting May
Other grants ($189,666.80) TBD
Staff is reviewing and applying for additional grants to offset the shortfall in year one of
operations as well as search for funding for on-going operations. Staff has developed
applications for various grants, including the Homeless Housing, Assistance and Prevention
Update on Azusa Resource Center
May 6, 2024
Page 4
(HHAP) Grant Program, and the Encampment Resolution Funding Program which accept
applications on a rolling basis.
FISCAL IMPACT:
The City is on track to fully expend the ARPA funds by the statutory deadline. These costs
include mainly site development and one-time purchases to establish the ARC. For year one
operation costs, the City may require a commitment from the General Fund up to $190,000.
Account 28-10-110-004 has been established with the approved PLHA Year 3 funds. Staff will
utilize this funding source as the contract commences and while we await the approval of other
funds. Nevertheless, a long-term funding solution for ongoing operations will need to be
identified. If grants and other funding opportunities do not materialize, a significant ongoing
commitment will be required from the City’s General Fund.
Prepared by: Review by:
Lucy Demirjian Talika M. Johnson
Senior Project Manager Administrative Services Director
Reviewed and Approved by:
Sergio Gonzalez
City Manager