STAFF REPORT
DATE: June 4, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director BY: Simone McFarland, Assistant Community Development Director
SUBJECT: Approval of an Exclusive Right to Negotiate with Home Again Los Angeles (HALA); Approval of a Sole-Source Professional Services Agreement with FSY Architects in the Amount of $391,000 for Architectural and Engineering Services for 2244 N. Buena Vista to Cr eate a Homeless Access Center, Partnering with HALA
RECOMMENDATION
1. Approve the Exclusive Negotiation Agreement (ENA) with Home Again Los Angeles (HALA).
2. Approve a sole- source Professional Services Agreement (PSA) with FSY Architects (Attachment 1) in the amount of $3 91,000 to perform program architectural and engineering services needed to complete entitlements and construction improvements at 2244 N. Buena Vista, a City-owned property that will be leased to Home Again Los Angeles (H ALA) for use as a Homeless Access Center that will serve families.
3. Authorize acceptance and appropriation of $64,000 from Home Again Los Angeles (HALA).
BACKGROUND
The City currently owns a building located at 2244 N. Buena Vista (Property) through a “Fee Simple” title1, which contains an approximate 4,500 square foot structure that was
1 A “Fee Simple” title provides the landowner with complete/total ownership of a piece of land and all properties on it. The landowner may make any changes to the property if it falls within all established easements and zoning laws.
COMMUNITY
DEVELOPMENT
2 built in 1949 by the City for use as a Burbank fire station. From 1994 through 2021, the Boys and Girls Club leased the Property for $1.00 per year. In May of 2021, the Boys and Girls Club vacated the Property and moved to a new facility located at 300 E. Angeleno; the Property is currently vacant.
Home Again Los Angeles (HALA), a non-profit homeless service agency, wants to lease the building from the City to utilize as their headquarters and a Homeless Access Center for families that would include four transitional housing units. The project meets a goal in the City’s Five-Year Homelessness Plan (2022-2027) under Strategy 3: Create interim housing that can include shelters and/or transitional housing including a tiny home village.
Additionally, the use of this building by HALA would supplement the proposed Homeless Solutions Center located at N. Front Street. The Property (Homeless Access Center) would provide services to families while the Front Street location (Homeless Solutions Center) would focus on individuals.
At the April 5, 2022, Council meeting, staff was directed to issue a Request for Proposal (RFP) to lease the Property to a non- profit that would provide services in alignment with the City’s goals. On November 1, 2022, Council directed staff to award the RFP to HALA for the purpose of negotiating a long- term lease. HALA is proposing to develop a Homeless Access Center for families and children that will include four transitional housing units that would be added to the outside of the property . The development will convert the m ain facility into an Access Center that will include a community room, job center, case management and intake rooms , and a community partner’s room . The existing trailers and storage sheds on the property would be removed.
The building on the Property is in severe disrepair and needs substantial updates , including (but not limited to) the air conditioning system, plumbing, and electrical panel.
Additionally, life safety systems will need to be updated to include fire sprinklers, removal of asbestos flooring, and structural retrofitting. The Property will also need interior and exterior painting along with energy upgrades. Since November 2022, staff has been conducting studies to fully assess the Property’s condition and identify funding to assist in the rehabilitation of the building. Additionally, staff has been discussing with HALA their desires and needs for the property along with developing and negotiating the scope of work with the proposed architect.
On April 9, 2024, Council approved the plan for transitional housing units at the 323 Front Street location along with declaring a Shelter Crisis Emergency. The Emergency Shelter Crisis declaration authorizes the City to streamline the entitlement process by exempting the projects from California Environmental Quality Act ( CEQA) and certain zoning requirements along with enacting Appendix P of the building code, allowing for the development of transitional housing units along with supportive services. The Emergency Declaration also applies to the Buena Vista Property.
DISCUSSION
Per Council ’s direction to negotiate with HALA, staff proposes the approval of a n Exclusive Right to Negotiate Agreement (ENA) with HALA. The ENA would legally bind 3 the City and HALA in good faith during the pre- construction phase and require that negotiations for construction fees and future rent continue. Per the agreement, HALA would pay $64,000 towards pre-construction costs, which equates to 10% of the pre- construction estimated cost of $640,000.
As the property owner, t he City has an obligation to ensure the building is in leasable condition before HALA moves in; therefore, the City would pay the remainder of the costs associated with the improvements. The City’s share is estimated to be $576,000 for pre- construction fees only (Attachment 1).
The City recognizes the need for additional housing for the homeless population. The State of California and Los Angeles County have both declared an Emergency Shelter Crises. The City has authority under BMC 2- 2-112(A)(3), to dispense with competitive bidding, if an emergency exists and it is in the public interest to dispense with competitive bidding because of the urgent necessity for the preservation of life, health, or property.
Due to the expected increase in the homeless population and the lack of suitable housing/services within Los Angeles County, the need for additional housing units is imperative to provide the necessities for this vulnerable group.
Staff obtained two proposals for Architectural and Engineering Services . When rated against each other, FSY Architects, Inc. (FSY) was the selected contractor based on their experience, project understanding, qualifications, value, com munication and collaboration, innovative solutions , flexibility, and adaptability. FSY has more than 30 years of experience doing similar projects and is located within Los Angeles County. FSY has excellent references and they have demonstrated the capacit y and knowledge to meet the aggressive timelines required to move into the construction phase of this project.
To streamline projects that focus on creating transitional housing units for the homeless, staff is requesting to issue a sole source contract to FSY to d evelop plans for the renovation and desired tenant improvements , all of which will be required to obtain entitlements for the project . Staff has been working with FSY to clarify and succinctly describe the expectations of the contract, which is reflected in the scope of work in the Professional Services Agreement (Attachment 2).
COMMUNITY OUTREACH
Robust community outreach for this project will occur once the site plans and renderings are developed, enabling the public to clearly understand the proposed project. This will include public meetings both in person and online. Additionally, HALA will speak with adjacent neighbors to explain the program, project, and their experience in the community. It s hould be noted that although the proposed HALA facility will be more significant that their existing office footprint, they currently operate nearby in the same neighborhood on Naomi Street.
ENVIRONMENTAL REVIEW
The ENA and design and development feasibility study of a Homeless Access Center at 2244 N. Buena Vista is statutorily exempt from review under the California Environmental 4 Quality Act (CEQA), because it is a feasibility study for possible future actions that have not yet been adopted or approved by the Council (CEQA Guidelines, Section 15262).
Should Council approve the Homeless Access Center project in the future, the project would be categorically ex empt under CEQA Guidelines Section 15301 as it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities involving no expansion of use. In addition, this project would be exempt from CEQA Guidelines, Section 15269 as it is an emergency project that requires specific actions necessary to prevent or mitigate an emergency. Lastly, Government Code Section 8698.4(a)(4) specifically states that CEQA shall not apply to actions taken by a city to lease, convey, or encumber land, or provide financial assistance to, a homeless shelter constructed or allowed Government Code Section 8698.4.
However, if the PSA is approved by Council, a National Envir onmental Policy Act Environmental Assessment will be completed in anticipation of using federal funding during construction and Planning will require a Health Risk Assessment.
FISCAL IMPACT
HALA will contribute 10% of the estimated pre- construction cost totaling $6 4,000 to be deposited into account number 001. CD000.45025.1036 and appropriate d to expense account 001.CD23A.62170.0000.24054. The City has allocated funding for the pre- construction portion of this project in the amount or $391,000, which includes the funding from HALA.
Additional funding will be required to complete the construction of the project. The City and HALA will negot iate additional construction cost funding and the monthly rent once construction cost estimates are acquired. Staff is currently identifying state or federal grants and other sources of funding to complete the project. The construction cost will be estimated as the final plans are completed. The Project completion date is estimated for June 2026.
CONCLUSION
In partnership with HALA, t he Project will create a Homeless Access Center for families in Burbank along with four proposed transitional housing units. This is aligned with the City’s Five-year Homeless Plan which calls for the addition of transitional housing units .
These units would support homeless families , including parents and children suffering from domestic abuse. Staff recommends C ouncil approve both the ENA with HALA and the Sole Source contract with FSY to complete the pre-construction work needed at 2244 N. Buena Vista.
ATTACHMENT
Attachment 1 – Exclusive Negotiation Agreement
Attachment 2 – Professional Services Agreement with FSY Architects