CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: April 8, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Jim Munro, Police Commander
Megan Martin, Community Development Director
SUBJECT: Homelessness Response Update and Development Impact Fee Payment Request for Temporary Housing Project
RECOMMENDATION
Receive an update on the City’s response to homelessness and consider a request from Dignity Moves regarding waiver of required Development Impact Fees for the Barca Street temporary housing project.
BACKGROUND
Camping Ordinance Implementation Summary
On March 27, 2023, the City Council adopted an ordinance to address camping and vehicle habitation on public lands and private property. The ordinance set regulations relating to time, place, and manner of camping. Prior to the ordinance, the City experienced unregulated and unauthorized camps in various areas of the City including public parks, wooded areas along El Camino Real, and many other areas on public and private property.
Over the past year, the Police Department has led the City’s efforts to educate community members of the ordinance, provide resources, and when necessary, conduct enforcement efforts.
The department’s efforts, led by civilian Community Service Technicians, focus on compliance before citations are issued and/or camps are removed. Consistent with the City’s longstanding commitment to addressing this issue with compassion and order, the Police Department partnered with the Public Works Department to develop a plan regarding enforcement and removal of camps.
Since March 2023, the Police Department has issued 29 citations related to the camping ordinance. Additionally, over 50 crew hours have been used to remove 25 truckloads of debris from public lands within the city. On average, 5 to 10 camps are contacted and tagged each week within the city, which is down significantly from 30 to 40 camps prior to the ordinance. Most of these camps are located in areas not visible to the public. Since implementation, the Police Department has experienced a decline in the number of complaints from residents, most notably in the El Camino Real area.
The camping ordinance has been an effective tool in helping to maximize outreach while also helping to minimize the impacts of encampments within the city. Variations of the City’s ordinance have been adopted in other communities including Morro Bay and Solvang and staff was asked to present a summary of the ordinance to a meeting of Santa Barbara County elected officials.
Staff Report: Homelessness Response Update and DIF Request for Barca Street Facility Page 2 April 8, 2024
Update on Cabins for Change Temporary Housing Facility
In December 2022, the “Cabins for Change” temporary emergency housing facility opened in Grover Beach. This 20-unit facility was developed and is operated by the 5Cities Homeless Coalition (5CHC) on County property at 1523 B Long Branch Avenue behind the County Health Agency campus. The facility includes bathing and bathroom facilities, administrative offices, communal spaces, and a storage area. The site is not a drop-in shelter but a reservation-based temporary housing facility with case management services and onsite facility management and security. The facility is intended to help clients find more permanent supportive housing within 90 days though more time may be needed in some cases.
Below are key metrics of the Cabins for Change facility to date:
• 84 total participants with 58 (72%) from Grover Beach • 2.2 years was the average amount of time during which participants were unhoused before staying at the Cabins
• 46 participants (70%) have graduated to stable housing • Average length of stay upon exit is 108 days
• 61 participants connected with primary care provider with 36 participants connected with Behavioral Health services and 25 participants connected with Drug and Alcohol services • 38 participants are currently employed.
This facility is the first use of small cabins as a shelter site in the county and is the first temporary housing facility of any kind in South County. The success of this facility provided impetus for the 5CHC to create a second site with 30 additional units along South 4th Street which will be further described below. The City would continue to urge other communities throughout the county, particularly in the South County, to expand the number of temporary housing units beyond the 50 units in Grover Beach as more units countywide will be needed to provide sufficient housing for unhoused individuals.
However, while one-time funding was utilized to create these temporary housing facilities, ongoing funding will be needed to continue their operation beginning in FY 2024-25. The County Homeless Services Oversight Committee (HSOC) is reviewing County funding recommendations to determine how to meet these funding needs for temporary housing facilities throughout the county to continue operating these facilities. Staff would invite the City’s HSOC representative, Council Member Weirick, to provide further perspective on this issue along with 5CHC representatives.
Development Impact Fees Waiver Request for Temporary Emergency Housing Project In line with the City’s commitment to address homelessness and housing insecurity, the City Council in March 2022 allocated $425,000 in funds from the American Rescue Plan Act towards the acquisition of property located at 955 South 4th Street next to Barca Street (hereafter referred to as “Barca Street facility”). The Council subsequently approved a 55-year ground lease with 5CHC to develop and operate a non-congregate housing shelter or low barrier navigation center.
The long-term ground lease was a vital component that would function as a financing agreement for 5CHC and was necessary for fulfillment for the construction of this non-congregate temporary housing facility.
The City’s funding covered property acquisition while 5CHC would seek alternative funding for the development and operation of the emergency shelter from a variety of sources, most notably the Project Homekey funds from the State. Following initial concept and project designs, the Balay Staff Report: Homelessness Response Update and DIF Request for Barca Street Facility Page 3 April 8, 2024
Ko Foundation donated approximately $2.6 million to 5CHC and the project and appointed Dignity Moves, a San Francisco-based company, as the developer of the facility. In November 2023, 5CHC and Dignity Moves broke ground on a 30-cabin temporary emergency housing facility. Each cabin will house a single adult while they find permanent housing. 5CHC will provide a similar level of management and monitoring as they do for Cabins for Change through management services, connecting residents to health benefits, counseling, and CalFresh benefits. The Police Department will serve as the lead in responding to safety issues.
All new development projects are subject to Development Impact Fees (DIFs) which serve an important role in mitigating the potential impacts of new development on essential City infrastructure and services. The City is responsible for collecting DIFs to address the impacts of new development on City services and facilities, including transportation improvements, water system improvements, law enforcement facilities, administrative facilities, fire protection facilities, park facilities, recreation facilities, and wastewater facilities.
Staff calculated DIFs for the project which amount to a total of $68,157.05 (Attachment 1).
However, Dignity Moves has submitted a request, pursuant to Article X, Chapter 13 of the Grover Beach Municipal Code, for consideration of waiving DIFs in the amount of $49,229.54 (Attachment 2). These fees primarily cover the cost of General Fund-related services such as technology support and transportation. To date, Dignity Moves has paid approximately $18,927.51, toward some of the impact fees primarily for water and wastewater impacts. Dignity Moves has conveyed that in each community where they have built temporary housing similar to this facility, they have worked with the jurisdiction on some degree of fee waiver given the unique nature of this facility relative to a market rate development project. Dignity Moves has also conveyed that if they were required to pay this additional $49,229.54 in DIFs, the funding to pay this would come from the facility budget as it was not included in the Balay Ko Foundation’s funding for this project.
While DIFs play a crucial role in supporting essential infrastructure and services, the City acknowledges the unique circumstances surrounding projects aimed at addressing homelessness. The project is expected to provide significant benefits to the community by addressing homelessness and housing insecurity. The provision of shelter and support services for vulnerable individuals aligns with the Major City Goal of Housing and Homelessness along with the compassion and social responsibility demonstrated by City policies regarding homelessness. Further, this initiative would facilitate the timely implementation of this critical project and positively impact the lives of those in need within our community.
Staff would suggest that the Council’s review of this request should be done in the context of the financial impacts of this decision. Waiving DIFs for the project would result in a loss of revenue for the City, thereby requiring the City to offset this loss from an alternative funding source. If the Council approved this request, staff would recommend using General Fund reserves to fund this payment. This request raises equity issues particularly as it pertains to distributing the costs associated with growth and development. A recent example of another agency which appealed the imposition of DIFs for an affordable housing project (Cleaver and Clark Commons) led to a deferral of DIFs consistent with State law (AB 1600).
Granting the waiver could establish a precedent that may have broader implications for future development projects within the City as the cumulative impact of waived DIFs could strain the City’s finances over time. To this end, if the Council approved this request given the unique circumstances, staff would recommend adding language in the Development Code to only enable future requests for affordable housing projects. Staff is intending to begin an update on the Development Code this spring and can include such language at the Council’s direction.
Staff Report: Homelessness Response Update and DIF Request for Barca Street Facility Page 4 April 8, 2024
FISCAL IMPACT
The cost of implementing the camping ordinance is included in the Police Department budget for enforcement and Public Works Department budget for periodic cleanings. The costs for such cleaning have been lower than originally projected though the level of ongoing funding needed for this purpose is unknown. The loss of $49,229.05 in DIF revenue would reduce funds available for City services and programs and thus staff would recommend an appropriation of General Fund reserves to offset this cost if the Council approved the waiver request.
ALTERNATIVES
1. Receive an update on the City’s response to homelessness and adopt a Resolution to support a waiver of Development Impact Fees for the Barca Street temporary emergency shelter housing project; and appropriate $49,230 in General Fund reserves to pay fees being waived for the project; or
2. Adopt a Resolution to defer Development Impact Fees for the Barca Street temporary emergency shelter housing project and authorize the City Manager to execute the agreement; or
3. Direct Dignity Moves to remit all Development Impact Fees for the Barca Street temporary emergency shelter housing project to the City; or
4. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
2. Calculation of Barca Street Project Development Impact Fees
3. Dignity Moves Development Impact Fee Waiver Request
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, APPROVING THE REQUEST BY DIGNITY MOVES TO WAIVE
DEVELOPMENT IMPACT FEES FOR THE BARCA EMERGENCY SHELTER LOCATED AT 955 SOUTH 4TH STREET
WHEREAS, the City Council of the City of Grover Beach (the “City”) acquired the property at 955 South 4th Street, and entered into a 55 year long-term ground lease with 5 Cities Homeless Coalition (5CHC) to develop and operate a non-congregate housing shelter or low barrier navigation center (the “Project”); and
WHEREAS, construction of the Project is a vital component in helping the City to fulfill its goal of addressing housing and homelessness; and,
WHEREAS, the City desires to encourage development of projects that will fulfill its goal of addressing housing and homelessness; and,
WHEREAS, the Project was conditioned and required to pay Development Impact Fees (DIFs) in the amount of $68,157.05 to support city services and facilities, including transportation improvements, water system improvements, law enforcement facilities, administrative facilities, fire protection facilities, park facilities, recreation facilities, and wastewater facilities; and WHEREAS, Dignity Moves submitted a request to the City for consideration to waive the requirement of Development Impact Fees (DIFs) on the Project in the amount of $49,229.54; and, WHEREAS, the amount of any fee waiver for Development Impact Fees (DIFs) will require restoration of funds from non-impact fee sources to ensure compliance with the Mitigation Fee Act (Gov’t Code §§ 66000, et seq.); and
WHEREAS, City Council has the authority to waive or defer DIF fees on a case-by-case basis.
NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby :
1. City Council finds and determines that the foregoing recitals, incorporated herein by reference, are true and correct.
2. City Council waives applicable Development Impact Fees for the Project in an amount not to exceed $ 49,229.54.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
Attachment 1
Resolution No. 24- Page 2
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 8TH day of April 2024.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
**DRAFT**
Permit Statement
Permit Statement Date:
BP-23-00357 : Commercial New
955 S 4TH ST 03/04/2024
Emergency Shelters
Description Item Amount Amount Due
1Fire Protection Review (5Cities Fire) -
Comm
$178.00 $0.00
Administrative DIF: MH/O $2,105.40 $2,105.40
B/C/D/E - Electrical Permit Inspection
11%
$461.12 $461.12
B/C/D/E - Electrical Plan Review 11% $383.38 $0.00
B/C/D/E - Mechanical Permit Inspection
11%
$461.12 $461.12
B/C/D/E - Mechanical Plan Review 11% $383.38 $0.00
B/C/D/E - Plumbing Permit Inspection
11%
$461.12 $461.12
B/C/D/E - Plumbing Plan Review 11% $383.38 $0.00
B - R3 Res New Construction/Room Add
INSP
$4,192.00 $4,192.00
C - Commercial/Non-Res - New
Const/Addition PR
$3,485.24 $0.00
F14 - Address Change or New Address $68.00 $68.00
F1 - Permit Processing Fee $83.00 $83.00
F2 - General Plan Maintenance Fee $209.60 $209.60
F3 - Technology Fee $209.60 $209.60
F4a - SMIP - Residential $110.50 $110.50
F5 - Green Building Standards (SB 1473)
Fee
$34.00 $34.00
F6 - Temporary Certificate of Occupancy
Fee
$7,440.00 $7,440.00
Fire Protection DIF: MH/O $4,139.70 $4,139.70
G1 - Public Works Bldg Plan
Review-Minor/Major Prj
$525.00 $175.00
G2 - Planning Bldg Plan Review-New
Res/DetachedADU
$3,296.00 $2,987.00
Law Enforcement DIF: MH/O $2,545.80 $2,545.80
Sanitation District Fee: Commercial 1" $6,187.00 $6,187.00 Meter
Stormwater DIF $2,332.53 $2,332.53
Transportation DIF: MH/O $27,801.74 $27,801.74
Wastewater DIF: 1" $2,682.77 $2,682.77
Water Meter - 1" $573.99 $573.99
Water System DIF: 1" $2,896.06 $2,896.06
Totals $73,629.43 $68,157.05
From: Marge Cafarelli
To: Matthew Bronson
Cc: Gabriel Munoz-Morris; Derek Troya; Marge Cafarelli; Megan Martin; Janna Nichols Subject: Re: Dignity Moves- Grover Beach
Date: Monday, March 18, 2024 2:03:00 PM
Attachments: image001.png
image003.png
image004.png
image005.png
image006.png
image007.png
image009.png
image010.png
image011.png
image012.png
Importance: High
Matt, good morning.
I wanted to reach out about the fees for the Balay Ko/5Cities project. I appreciate Megan sending over the list of fees that Grover Beach charges for developments and for the fee deferral information for the affordable housing project that Grover Beach. In my experience over the last 17 months of working on these interim housing projects many of the fees are waived not deferred.
The difference here is that these projects are not income producing. 5Cities will not be charging rents, they will not be taking vouchers, and the residents will be living in these units without the requirement of rent. We do understand that there are a few of the fees that need to be paid, like sanitary sewer hook up fees. We have meter fees waived and other fees associated with construction and development waived for these projects.
I would like to ask that the following fees for this Grover Beach project be waived.
Administrative DIF: MH/O $ 2,105.40
B – R3 Res New Construction/Room Add Inspection $ 4,192.00 F2 – General Plan Maintenance Fee $209.60
F3 – Technology Fee $209.60
F4a – SMIP – Residential $110.50
F5 – Green Building Standards (SB 1473) $34.00
F6 – Temporary Certificate of Occupancy $ 7,440.00
Fire Protection DIF:MH/O $ 4,139.70
G2 – Planning Bldg Plan Review – New Res/Detached ADU $ 2,987.00 Transportation DIF:MH/O $27,801.74
TOTAL $49,229.54
This will leave approximately $18,928.00 in fees to be paid. This number includes MEP inspection fees, address change and permit processing fees. It also includes law enforcement, Sanitary District fees, Stormwater DIF, Wastewater DIF, Water meter and Water System DIF, fees.
Thank you, Matt for your consideration of our request to wave the fee’s listed above.
Marge
Attachment 3