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April 15, 2025
ITEM TITLE
Capital Improvement Project and Appropriation: Establish CIP Project GGV0277 for Chula Vista Village at Otay Phase II Improvements, Appropriate Funds Therefor, and Authorize the City Manager to Execute All Necessary Grant and Project Documents
Report Number: 25-0062
Location: 205 27th Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities), Section 15303 class 3 (New Construction or Conversion of Small Structures), Section 15304 Class 4 (Minor Alterations to Land), and Section 15061(b)(3). Under NEPA, pursuant to Title 24, Part 58.40, the Environmental Assessment has been prepared, and a Findings of No Significant Impact has been made pursuant to Title 24, Part 58.43(a) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing and Urban Development Environmental Guidelines. Thus, no further environmental review is required.
Recommended Action
Adopt a resolution: 1) Amending the fiscal year 2024-25 CIP budget by establishing CIP Project GGV0277— "Shelter Phase II Improvements” to further develop the City’s emergency bridge shelter, Chula Vista Village at Otay and appropriating funds therefor; and 2) Authorizing the City Manager to execute all documents and agreements necessary to accept and implement the grant funds and complete the CIP Project GGV0227 improvements. (4/5 Vote Required)
SUMMARY
In June of 2023, construction of Phase I of the City’s emergency bridge shelter, Chula Vista Village at Otay , was completed. Phase I of the Village consisted of the installation of the infrastructure and development of the 65-unit shelter and utilized a portion of funding from the Emergency Shelter Capital Grant funds received from the County of San Diego . This i tem seeks to establish a new capital improvement project ( CIP) and P a g e | 2
appropriate remaining funds to Phase II for additional site improvements to support cost and operational efficiencies.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 1530 1 Class 1 ( Existing Facilities), Section 15303 Class 3 ( New Construction or Conversion of Small Structures), Section 15304 Class 4 (Minor Alterations to Land), and Section 15061(b)(3) because the proposed action would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, be located on a site pursuant to Section 65962.5, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required.
Under NEPA, pursuant to Title 24, Part 58.40, the Environmental Assessment has been prepared, and a Findings of No Significant Impact has been made pursuant to Title 24, Part 58.43(a) of the Code of Federal Regulations and pursuant to the U.S. Department o f Housing and Urban Development Environmental Guidelines. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing & Homeless Advisory Commission was provided with an update on the Village and this proposed action at their February 24, 2025 meeting.
DISCUSSION
The number of unsheltered in our region has been consistently rising in the last decade, further accelerated by the COVID -19 pandemic. Since 2016 , the City has been addressing the imp acts of unhoused in the community through a multifaceted approach inclusive of initiatives, programs , and projects to address th e needs of the unsheltered, including the creation of emergency housing opportunities.
As a response to the pandemic and the impacts to the community, the U.S. Department of Housing and Urban Development released Coronavirus Aid, Relief, and Economic Security Act grant funds to entitlement communities. These funds supplemented the Community Development Block Grant and Emergency Solutions grant funds received on an annual basis. The purpose of these funds was to prepare and respond to the impacts generated by the COVID-19 pandemic, particularly those most impacted, the unsheltered.
In May of 2022 the City broke ground on the Chula Vista Village at Otay (the “Village”) , the first homeless bridge shelter in the City, with use of these funds. Phase I consisted of the design and development of a 65 - unit shelter at 205 27 th Street. The project consisted of the purchase and installation o f individual sleeping cabins, common and case management areas, bathrooms, showers, and laundry facility.
The Village opened its doors on May 15, 2023, and has successfully served over 80 unsheltered individuals with case management, employment reentry and permanent housing placement. The goal is to continue to build on the success of the shelter and to expand on its amenities, services and efficiency.
In December of 2022, the City successfully applied for and was awarded $2,000,000 in Emergency Shelter Capital Grant (ESC) funds from the County of San Diego (the “County”) to complete Phase I improvements of P a g e | 3
the Village development and provide enhancements through a Phase II if any funds wer remaining. The grant funds were designed to complete capital and infrastructure improvements to emergency housing. On January 24, 202 3, the City Council approved and appropriated $1,845,300 for this project under GGV0254 via Resolution No. 2023-005. An additional $154,700 was approved and appropriated on August 8, 2023, via Resolution No. 2023-119 also under project GGV0254. While the additional funds were formally accepted, final execution of the amendment grant agreement was not completed.
The previous project, GGV0254, has been completed, with a remaining County ESC grant funding of $667,340.
Additionally, $154,700 from the County ESC grant funding has been redistributed. This item seeks to amend the fiscal year 2024-25 CIP budget establishing CIP GGV0277, and appropriating remaining and redistributed County grant funds for Phase II identification, in a total amount of $822,040 . This action will also authorize the City Manager to execute all documents necessary to implement the grant acceptance and implementation, as well as all agreements necessary to complete the “Shelter Phase II Improvements.” The Village’s Phase II prioritizes operational efficiencies and enhancing service quality. Key improvements have been prioritized to include:
- Solar Panel purchase and installation
- Upgrade automatic gate motor
- Expansion of the community room
- Purchase and installation of two (2) new bathroom structures each containing two (2) full baths
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property, which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of 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 fiscal impact to the City's General Fund as all costs associated with the Village Phase II development will be covered by the County of San Diego Emergency Shelter Capital grant.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as all costs associated with the Shelter Phase II development are covered by the respective grant. Any associated maintenance costs will be included in future year’s annual budget development process which may be offset by energy cost savings.
ATTACHMENTS
None.
Staff Contact: Carlos Rodriguez, Management Analyst II, Housing and Homeless Services Department Angelica Davis, Homeless Solutions Manager, Housing and Homeless Services Department