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File #: 20-1799    Version: 1
Type: Administrative Items Status: Passed
File created: 7/27/2020 In control: City Council/Public Financing Authority
On agenda: 8/3/2020 Final action: 8/3/2020
Title: Authorize and direct the City Manager to take the following actions needed to begin operating an expanded 174-bed shelter facility at the Cameron Lane / Beach Boulevard site effective the first week of November 2020: (1) execution of a homeless shelter operator contract with Mercy House with a first year cost of $2,596,240 (utilizing CDBG, SB2, and COVID-19 response funds); (2) expenditures in an amount not to exceed $2,220,000 for site work / FF&E costs related to expanding the Cameron Lane / Beach Boulevard shelter (utilizing COVID-19 response funds); (3) execute a ground lease agreement in an amount not to exceed $120,000 for accelerated use of 17642 Beach Boulevard (utilizing COVID-19 response funds); and (4) allocation of $3,214,035 in housing funds for acquisition of 17642 Beach Boulevard (utilizing Low-Moderate Income Housing Asset Funds)
Attachments: 1. Att#1 - 174-Bed Shelter - Final Site Plan, 2. 7.31.20 Sup Com - Emails, 3. 8.03.20 Sup Com - Emails, 4. 8.03.20 Sup Com Luna-Reynosa PPT, 5. 8.03.20 Sup Com - Luna-Reynosa Memo
REQUEST FOR CITY COUNCIL ACTION

SUBMITTED TO: Honorable Mayor and City Council Members

SUBMITTED BY: Oliver Chi, City Manager

PREPARED BY: Ursula Luna-Reynosa, Director of Community Development

Subject:
title
Authorize and direct the City Manager to take the following actions needed to begin operating an expanded 174-bed shelter facility at the Cameron Lane / Beach Boulevard site effective the first week of November 2020: (1) execution of a homeless shelter operator contract with Mercy House with a first year cost of $2,596,240 (utilizing CDBG, SB2, and COVID-19 response funds); (2) expenditures in an amount not to exceed $2,220,000 for site work / FF&E costs related to expanding the Cameron Lane / Beach Boulevard shelter (utilizing COVID-19 response funds); (3) execute a ground lease agreement in an amount not to exceed $120,000 for accelerated use of 17642 Beach Boulevard (utilizing COVID-19 response funds); and (4) allocation of $3,214,035 in housing funds for acquisition of 17642 Beach Boulevard (utilizing Low-Moderate Income Housing Asset Funds)
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Statement of Issue:
On April 20, 2020 the City Council took action to work in partnership with the County of Orange (the "County") to stand-up and operate a 75-bed shelter facility in Huntington Beach on the Cameron site. As part of that partnership project, the City would allow the County to use the Cameron site (which is being acquired by the City), and the County would construct (and eventually transfer to City ownership) a 75-bed shelter facility.

Since that time, several developments have created an opportunity to accelerate and expand the process by which the City would begin operating the proposed shelter facility. Based on current developments, it is now possible for the City to begin operating a 174-bed shelter facility starting on Monday, November 2, 2020.

Financial Impact:
The City currently has restricted funding in the following amounts available for use towards establishment and operatio...

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