EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: January 18, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Victor Ramirez, Rent Stablization Program Administrator SUBJECT: Measure O Contract-Anti-Displacement Services Agreement, Clarifying Resolution
Recommendation
Adopt a resolution clarifying that the total amount of the two-year contract for anti-displacement services with Nuestra Casa, Youth United for Community Action, and Community Legal Services in East Palo Alto, dated April 1, 2020 and subsequently amended on July 1, 2021, is Six Hundred Eighteen Thousand and One Hundred Seventy Six Dollars ($618,176).
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
A. Priority #6: Create a Healthy and Safe Community
Background
On February 18, 2020, the City Council adopted the Resolution No. 17-2020 directing the City Manager to enter a one-year contract for anti-displacement services with Nuestra Casa, Youth United for Community Action, and Community Legal Services in East Palo Alto for an amount not to exceed $279,088 (Attachment 2). Furthermore, the resolution also authorized the City Manager to renew the contract for another year upon successful achievement of the first-year contract deliverables and subject to available General Fund revenues and the appropriated Rent Stabilization Program’s funds.
On April 1, 2020, the City executed an anti-displacement services agreement (“Measure O Contract”) with the above-mentioned non-profit organizations for the activities described in the Anti-Displacement Services Agreement Scope that was also approved at the February 18 Council meeting (Attachment 3). The City Council staff report is available online for reference1. 1 February 18, 2021 Council Meeting Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1061&MediaPosition=&I D=1108&CssClass=
As described in the February 18, 2020 staff report, upon the successful achievement of the first-year contract deliverables and pursuant to the City Manager’s authority under Resolution No. 17-2020, the Measure O Contract with Nuestra Casa, Youth United for Community Action, and Community Legal Services in East Palo Alto (“Measure O Contract organizations”) would be extended for another year.
On January 29, 2021, the State of California adopted Senate Bill 91 (“SB 91”). This law created a program for the administration of $2.6 billion that California would be receiving from the US Treasury under the US Coronavirus Response and Relief Supplemental Appropriations Act, 20212. Due to the need to assist the community residents to access the SB 91 funds and to prevent the displacement that would be likely caused by the economic impact of the COVID 19 pandemic, staff contacted the Measure O Contract organizations to discuss their interests and capacity to amend the Measure O Contract to add SB 91 outreach and education activities to the scope of the contract.
On March 16, 2021, the City Council adopted the Resolution No. 34-2021 (Attachment 4). The City Council staff report is available online for reference3. The resolution authorized the City Manager to amend the April 1, 2020 contract with Nuestra Casa, Youth United for Community Action, and Community Legal Services in East Palo Alto to add to the contract scope of work services related to landlord and tenant outreach and education regarding the rental relief fund program created via SB 91. Furthermore, the resolution increased the total amount of the Contract from $279,088 to $339,088 and appropriated an additional amount of $60,000 from the General Fund revenues to cover any additional administrative costs incurred by Nuestra Casa, Youth United for Community Action, and Community Legal Services in East Palo Alto.
On July 1, 2021, the City executed an amendment to the Measure O Contract extending the contract for a second year and increasing the contract amount for the extended term of the contract to $339,088 (Attachment 5). The contract amount for the extended term of the contract brings the total amount of the contract for the two years to $618,176.
In October, upon the submission of the first quarter invoice by the Measure O organizations for the activities that they are performing during the current second year of the contract, the Finance Department raised concerns about the Resolution No. 34-2021 not clearly stating what the total amount of the contract for the two years. Thus, the purpose of this staff report is to clarify the intent of Resolution No. 34-2021 and confirm the total amount of the Measure O Contract.
Analysis
Due to the concerns raised by the Finance Department and upon consultation with the Office of the City Attorney, staff now seeks Council adoption of the clarifying resolution to clarify that the total amount of the Measure O Contract for the two-year term is $618,176.
As previously reported to Council, during and through the Measure O Contract, East Palo Alto residents facing eviction and at risk of displacement have been able to access legal services 2 SB91: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB91 3 March 16, 2021 Council Meeting Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1359&MediaPosition=&I D=1620&CssClass=
and have been empowered to exercise their rights. The City has also been able to count on the services being provided through the Measure O Contract to promptly refer and assist residents when facing legal challenges that impact them collectively.
In coordination with the Measure O Contract organizations, City staff was able to engage in education and organization efforts with the residents of Palo Mobile Estates mobilehome park after the park owners started the conversion process of the park to a resident owned park in May of 2020 through the actual conversion last August and has been able to continue assisting residents with post-conversion matters. With the collaboration of the Measure O Contract organizations, the Rent Stabilization Program was also able to promptly respond to tenant inquiries and quickly mounted an outreach and education campaign after tenants received notices to pay rent or quit under new state laws adopted in response to the COVID19 pandemic as well as their rights and obligations under the City’s and County’s eviction moratoria. The City was also able to count on the services being provided through the Measure O Contract to assist coordinating and educating residents at Courtyard At Bay Road regarding their rights on habitability and rent increases.
Attachment 6 to this report specifically shows some of the other many Measure O Contract accomplishments and activities directed to the realization of the two main goals of the agreement: 1) provide legal services and 2) advance tenant advocacy and education to prevent displacement in the City.
Next Steps
If the proposed clarifying resolution is adopted by City Council, the Finance Department will process the first invoice already submitted by the Measure O organizations and any future invoices for the activities performed during the second year accordingly.
Fiscal Impact
The total fiscal impact associated with the Measure O Contract for the two years of the contract is $618,176. Council already appropriated an amount of $279,000 with the adoption of Resolution No. 17-2020 for the first year of the contract. Council then authorized the appropriation of an additional amount of $60,0000 augmenting the amount of the contract for the second year to $339,088. City staff seeks an additional appropriate of $279,000 for the second year of the contract. These funds are appropriated from the General Fund revenues and the Rent Stabilization Program Fund as directed by said resolutions.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. RESOLUTION re Measure O Contract
2. RESOLUTION 17-2020
3. Measure O CONTRACT - Anti-Displacement Services Agreement
4. RESOLUTION 34-2021
5. Measure O CONTRACT - Amendment No 1
6. Accomplishments Through the Measure O Contract