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June 7, 2022
ITEM TITLE
Housing and Urban Development (HUD) Action Plan Amendment: Amend the HUD 2021/2022 Annual Action Plan, the Sub-Recipient Agreement with SBCS for Emergency Shelter Operations and Approve an Agreement with Clean the World for Mobile Shower Services
Report Number: 22-0181
Location: No geographic location.
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding t he foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the CEQA State Guidelines.
Recommended Action
Adopt a resolution amending the HUD Annual Action Plan to reallocate $1,418,000 in ESG-CV funds for staff outreach services, homeless emergency shelter operations, and mobile shower services and authorize the City Manager to execute agreements with SBCS Corporation and Clean the World Foundation, Inc. and make further revisions as needed.
SUMMARY
The City of Chula Vista’s Annual Action Plan ( “Action Plan”) describes the funding strategy for use of the City’s U.S. Department of Housing and Urban Development (“HUD”) three entitlement block grant programs:
Community Development Block Grant (“CDBG”); Home Investment Partnerships Act (“HOME”); and Emergency Solutions Grant (“ESG”). The Action Plan is a tool to assist in implementing the City’s five -year Consolidated Plan, and each Action Plan is developed through public input, analyses and planning. Any significant funding changes in the approved Action Plan constitutes a substantial amendment and must be approved by the City Council prior to submittal to HUD. This process must be in accordance with the City’s Citizen Participation Plan which ensures that the City takes the necessary steps to encourage public participation.
This item includes an amendment to the 2021/2022 Annual Action Plan to increase funding through the ESG- CV program to assist homeless families and individuals in response to the growing need for services through P a g e | 2
the following programs: 1) outreach services provided by the Homeless Outreach Team; 2) emergency shelter operations by SBCS, Corporation; and 3) an agreement with Clean the World Foundation, Inc. for the Fresh Start Wash & Wellness Program to provide mobile showers in the community.
ENVIRONMENTAL REVIEW
The Director of Development Services reviewed the proposed legislative action for com pliance with CEQA and determined that the action is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwith standing the foregoing, the Director of Development Services has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The HUD CDBG, HOME, and ESG programs were created to assist cities in creating viable urban communities by providing decent housing, a suitable living environment and expansion of economic opportunities, principally, for low/moderate -income persons, defined as persons earning 80 percent or less of the Area Median Income ( “AMI”). As of April 1 8, 2022, 80 percent of AMI for a family of four is $ 106,900 per year.
Specifically, the ESG program was designed to engage homeless individuals and families living on the street through outreach, rapidly re-house, help operate and provide essential services in emergency shelters, and prevent individuals from becoming homeless.
As a recipient of these HUD funds, the City is required to develop and submit four planning documents (collectively, the HUD Plans) to HUD for approval.
1. Citizen Participation Plan (“CPP”)
2. Five-Year Consolidated Plan (“Con Plan”)
3. Annual Action Plan (“Action Plan”) and
4. Consolidated Annual Performance Evaluation Report (“CAPER”) On June 15, 2021 , the City Council approved the CPP, Con Plan and Action Plan. P er HUD regulations, any change in the previously established funding strategies and/or an increase in funding of 10% or more to an activity constitutes a substantial amendment and necessitates amendments to the associated planning documents. Any time a substantial change is made, public participation is essential. The process requires a public notice and a comment period prior to submission to HUD. A public notice was published on June 3, 2022, initiating the public comment period which runs through June 8, 2022.
Under the 2021/22 Annual Action Plan, the City allocated ESG-CV funding for outreach and shelter operation activities. Due to a critical growing need for outreach and shelter services and the amount of available ESG- CV funding, staff is recommending increasing the amount allocated to both activities respectively.
Furthermore, ESG-CV funding regulations require that the funds must be expended within a certain time frame ensuring that the funds are effectively used for the intended purpose of responding to COVID-related issues such as homelessness. In anticipation of this spending requirement, this item also seeks to provide the P a g e | 3
City Manager authorization to execute and make any necessary amendments to the new and existing ESG subrecipient agreements. This will provide the necessary flexibility to adjust project funding as necessary to ensure timely expenditures.
This item includes the consideration of an a mendment to the 202 1/2022 Annual Action Plan to reallocate available ESG funds to the following projects:
Homeless Outreach Services - $325,000: Funding will be used to cover costs associated with staff outreach response to an increase in the number of unsheltered in the city. SBCS Emergency Homeless Shelter Operations - $780,000: Funding will be used to increase the existing contract with SBCS to cover the substantial increase in emergency shelter operational costs for victims of domestic violence and homeless youth. An amendment to the existing SBCS, Corporation contract is necessary and provided as Attachment No. 1. Fresh Start Wash & Wellness Program (“FSWW”) - $313,000: Funding will initiate a new program within the City to provide a mobile shower unit. The service, provided b y Clean the World Foundation, Inc. will provide service up to six (6)-hours, two (2) times per week from a Fresh Start Mobile Shower Unit (the “Unit”) with a minimum of two ( 2) stalls. Due to current fabrication schedules, the unit may provide 3 or 4 stalls, however the contract amount shall not change. The Unit contains an onboard generator to meet all electrical needs, including a tankless water heater and air conditioning units. The City will have full discretion over the location of services and will work with the contractor to establish best practices for water disposal and client management, inclusive of wrap around services on all service days. Additional information regarding the FSWW is provided in Attachment No. 2 and the service agreement as Attachment No. 3.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disquali fying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact to the City's General Fund . A ll costs associated with the projects, programs and administration of the ESG program are covered by the respective grant.
Recommended funding reallocations in the ESG Program are summarized below:
Grant From
To
Project/Program Amount
ESG
272534-7141-
BGS1148
272534-7141-
BGS1196
Homeless Outreach Services $325,000
SBCS Emergency Homeless
Shelter Operations
$780,000
Fresh Start Wash & Wellness
Program
$313,000
TOTAL REALLOCATION $1,418,000
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund. All costs associated with the administration of the ESG program is covered by the respective grants.
ATTACHMENTS
1. Amendment to Subrecipient Agreement with SBCS Corporation
2. Fresh Start Wash & Wellness Program Flyer
3. Contractor Agreement with Clean the World Foundation, Inc.
Staff Contact: Tiffany Allen, Deputy City Manager & Director of Development Services Angélica Davis, Senior Management Analyst