CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
Grow Long Beach Initiative
Grow Long Beach Initiative
• On March 7, 2023, City Council approved the Grow Long Beach Initiative , a strategy to increase local revenues and catalyze economic growth to prepare for the transition from fossil fuel production
• The Grow Long Beach Initiative asks the City Manager to work with the Economic Development Department to develop targeted strategies, policies, and benchmarks to propel the growth of five key industries, including:
o Aerospace and aviation (Space Beach)
o Ports and supply chain
o Entertainment and hospitality (arts, culture, tourism, restaurants) o Healthcare and hospitals
o Education
• To implement the Grow Long Beach Initiative, the Long Beach City Council revamped the structure of its committees by creating the Arts, Culture, and Tourism Committee and the Economic Development and Opportunity Committee, appointed a deputy mayor of economic development, and kicked off the “Launch Beach” initiative to recruit 100 startups in the next five years, aligned with the five key industries mentioned above
• The Grow Long Beach Initiative also requests the City Manager to work with the Financial Management Department to identify a menu of alternative revenue generating strategies and opportunities to offset projected reductions in oil revenues and its associated impacts over the next decade and grow the City of Long Beach’s revenues in the short, medium, and long term, and refer to the Budget Oversight Committee for input and discussion
Oil Revenues & Oil Well Abandonment Costs
• Long Beach’s oil revenues is projected to decline 9-10% each year until 2035 • This presents a significant challenge to the city’s fiscal outlook, as nearly $12 million of existing General Fund city services are funded directly by revenues tied to the production of oil, including the Fire D epartment; Police Department ; Office of Youth Development ; and implementation of the City’s Climate Action and Adaptation Plan
• Because the City must set aside a portion of each year’s revenue to cover eventual abatement costs associated with closing down oil wells, the revenue available for city services will actually decline faster than the total revenue, at closer to 20-25% each year, on average, although this can vary year-to-year due to the fluctuation of oil prices
• The total abandonment costs ass ociated with ending oil operations in the Wilmington Oil Field are a substantial financial liability for all parties, estimated at an aggregate of $1.36 billion • Long Beach’s share to fully fund its own oil well abandonment liability is $154 million (the Ci ty currently has $98 million set aside)
• The State’s share to fully fund its own oil well abandonment liability is currently estimated at $700 million (the State reserves $2 million per month from state oil revenues in an Oil Trust Fund) o At this rate of monthly savings, the State’s estimated shortfall will be fully met around the year 2050—five years after the Governor’s original goal to end oil production by 2045
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
Revenue Implications of SB 1137
• Long Beach plans to halt its oil production by 2035—10 years ahead of the state’s goal of 2045 • SB 1137 (Gonzalez) establishes a 3,200 -foot health and safety zone around new and reworked existing oil wells and prohibits drilling of new wells and improvements to existing wells within that radius
• SB 1137 presents major fiscal challenges for the City’s efforts to fund oil well abandonment, as well as critical local programs and projects in the Tidelands • The Energy Resources Department and the State’s Geologic Energy Management Division (CalGEM) estimate that the legislation’s required 1.15-square-mile health and safety setbacks will apply to about half of the City’s oil wells, and accelerate the elimination of oil production before the previously projected year
• Under SB 1137, Tidelands and Uplands annual revenue los ses of more than $15 million are expected by 2029, resulting in insufficient revenue to support current operating expenses, required debt service on municipal bonds, and the City’s abandonment liability • More than 623,000 valid signatures were gathered to put a referendum on the Nov. 5, 2024, ballot, allowing voters to weigh in on whether to approve or reject SB 1137 • The challenge means the law, which took effect in January, will be on hold until after voters decide • Long Beach is committed to identifying alternative revenue streams to prepare for the transition from fossil fuel production
Asks
• Priority 1: Modify the timeline to responsibly plan for and execute the phase-out of oil; • Priority 2: Accelerate state abandonment savings;
• Priority 3 : Reinvest state oil funds back into Long Beach communities most impacted by oil production;
• Priority 4: Support the climate transition using oil fund interest; • Priority 5: Prioritize orphaned Well Funding to Long Beach and Workforce Development Opportunities; and,
• Priority 6: Expedited Coastal Commission and State Lands review for climate and ec onomic transition plans.
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
Housing & Homelessness
Declaration of the Emergency
• On January 10, 2023, the Long Beach City Council proclaimed a state of emergency for homelessness in Long Beach
• The City established an Incident Command structure, led jointly by the Health Department and Public Works Department, and comprised of various work groups consisting of more than 100 City staff across departments to take on the various aspects of homelessness emergency response • The emergency proclamation strived to reduce the number of persons experiencing homelessness in the City and the region by increasing housing opportunities and by enhancing current initiatives that provide field -based outreach, engagement, an d supportive services while maintaining the safety and security of the people experiencing homelessness, the general public and staff, and improving overall public safety for the entire community • The declaration allowed the City to move more quickly in approving contracts and projects related to homelessness
• The declaration allowed the City to move city employees into different roles to help Long Beach’s efforts to combat homelessness
• The City initiated conversations with the City’s legislative delegations and sent letters to county, state and federal leaders regarding Long Beach’s priorities related to the emergency on homelessness
• The emergency proclamation officially came to an end on February 28, 2024 • The next phase of addressing this crisis will include updating the Homelessness Strategic Plan, building a new governance structure (Office of Homeless Strategy and Partnerships), and continued coordination across City departments, external agencies, and community stakeholders • The City Manager’s office intends to formalize and staff the new office of Homeless Strategy and Partnership by late spring or early summer 2024.
2023 Point in Time Count
• Findings of the 2023 Homeless Point in Time Count reveal that Long Beach identified 3,447 people experiencing homelessness in January 2023, which represents a 4.6% increase from last year • In comparison to the 2022 Count, the number of people experiencing first -time homelessness increased by 18%, from 1,549 to 1,827
• The largest percentage of those surveyed identifi ed as Latinx (35.2%), followed by Black (32.4%) and white (23.1%)
• Findings of the 2023 Homeless Point in Time Count revealed that the number of students experiencing homelessness increased from 4.9% to 7.4%
• Findings of the 2023 Homeless Point in Time Count revealed that the number of LGBTQ+ folks increased from 10.7% to 11.2%
• In comparison to the 2022 Count, the number of females experiencing homelessness increased from 928 to 1,162
Homelessness in the Gateway Cities Region
• 8 Gateway Cities joined together to invest in reserving 40 shelter beds in Bell • Nearly 2,300 (or 85%) of all people experiencing homelessness in SPA 7 cities are unsheltered
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
• There are several Gateway Cities that have underutilized the emergency housing vouchers through their Housing Authorities
Accomplishments
• In June 2023, the City purchased the former Long Beach Rescue Mission, Inc. to be utilized as a permanent, year -round shelter for people experiencing homelessness, made possible by $6.5 million from LA County, $5.7 million from the City's Measure A Funds and the remaining $1 million dollars from the City’s General Fund
• The City launched the Homelessness Text Alert program in an effort to connect residents who are unhoused with housing and support services and other r esources, resulting in over 300 people reached with updates and services in English and Spanish • The City unveiled a new data dashboard showcasing local homelessness data, including demographics of people experiencing homelessness and data on the various housing and support services offered by the City
• The City was awarded $5.3 million from the State of California in Encampment Resolution Funding (ERF) to address key areas of need in Downtown
• The City expanded its Safe Parking Program, which provides a safe, dignified environment for people currently sheltering in their vehicles to park overnight while receiving access to basic needs and being connected to services
• The City deployed a Mobile Access Center in key areas of the City connecting nearly 500 people to services
• The proclamation of a local homelessness emergency in Long Beach allowed the City to reduce the time entitled to an affordable housing project to 60 days from 6-12 months pre-pandemic • Since the emergency declaration, we have enrolled nearly 600 people in permanent housing programs and nearly 2,000 people in interim housing programs • The City has expanded shelter capacity by more than 250 additional temporary shelter and interim units
o 85+ bed emergency shelter
o Project Homekey funding: 78 -unit Luxury Inn, 30+ modular units at the Multi -Service Center, 60 additional temporary overnight beds at the MSC, spaces at the overnight parking site
Prevention Policy Opportunities
Affordable Housing & Tenant Protections
• $3.8B in housing investments and development
• Between 2017 and 2022, the City facilitated the construction of 593 new affordable units, preserved 96 units, and rehabilitated 66 units
• Provided $71.3 million in assistance to tenants and landlords through the Long Beach Emergency Rental Assistance Program, in addition to $3 million in utility payments for households impacted by the pandemic
• Enhanced Density Bonus Ordinance and Inclusionary Housing Policy passed to expand access to affordable housing
• One in every two affordable units built in the Gateway Cities region has been built in Long Beach, while our City represents less than one-quarter of the region’s population
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
• Administered permanent housing allocations through SB 2 to expand the supply of low- and very- low income housing within the City
• Established a Right to Counsel program to assist tenants facing eviction and at risk of falling into homelessness (serving nearly 2,500 people through July 2023) and invested $1.5M in the FY 24 budget
• 583 people permanently housed utilizing Emergency Housing Vouchers – 100% of voucher utilization
• Adopted an Accessory Dwelling Unit (ADU) Ordinance that permits ADUs in all residential use zones with development standards varying by type of zone and ADU • Updated the Zoning Code (partially funded by State SB 2 and LEAP programs) with pro -housing policies, streamlined review, expanded areas for housing production, and other reforms to encourage housing development and implement the recently updated General Plan Land Use Element
• The Department has initiated an "Omnibus Housing and Zoning Code Update" effor t that will be released to the public in October and at City Council before the end of the calendar year • Achieved a Pro-Housing Designation from the California Department of Housing and Community Development (HCD) for the City’s commitment to policies and practices that remove barriers to housing production
• Recognized by the American Planning Association (APA) for the City’s Housing Element. The City was the first large jurisdiction in the SCAG region to have its 6th Cycle Housing Element Update certified by the California Department of Housing and Community Development (HCD) in April 2022
Long Beach Housing Promise
• The City launched a new initiative in partnership with California State University, Long Beach; Long Beach City College; and the Long Beach Unified School District called the Long Beach Housing Promise, to collaborate over the next five years to ensure that qualit y, affordable housing is available for all residents, students, and families of students in Long Beach • The coalition plans to achieve their goals through strategies that include strategic collaborations and advocacy, long -term planning, joint use of spaces , layered funding opportunities, development of shared public private partnerships, policy innovations, technical assistance, and streamlining of proposal reviews
Interim Housing
• Atlantic Bridge Facility: In October 2020, the City unveiled the Atlantic F arms Bridge Housing Community, a year -round supportive facility with room for 125 people experiencing homelessness, made possible by $8 million in State Homeless Emergency Aid Program (HEAP) funding and over $3 million in Los Angeles County Measure H funding • Temporary Emergency Shelter: In April 2023, the City opened a temporary emergency shelter for people experiencing homelessness, which holds more than 85 beds and offers a variety of onsite amenities and access to services
• Villages at Cabrillo: Century Villages at Cabrillo is a residential community whose mission is to break the cycle of homelessness and encourage self -sufficiency, dignity, and the highest human potential for residents. More than 1,600 people call Villages a t Cabrillo home, including 696 veterans
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
HHAP Funding
• Long Beach has been a strong advocate for ongoing funding to address homelessness through the Homeless Housing, Assistance and Prevention (HHAP) Program • The FY 25 Budget proposal includes another $1 billion for a fifth round of HHAP • Long Beach is dedicated to utilizing HHAP funds to continue building out critically needed infrastructure to address unsheltered homelessness, such as expanding outreach, bridge housing and emergency shelter supports, and more
• Cities have collectively funded through HHAP, nearly 16,000 shelter and interim housing beds, served over 121,000 people and placed nearly 20,000 people into housing or shelter from the streets
• The big 13 cities have set a statewide goal to reduce uns heltered homelessness by 16% and increase exits to housing by 16% through accountability plans, with a target of housing over 34,000 people a year
• Funding in the HHAP large cities category is fundamentally inequitable to cities that have their own continuum of care—Long Beach and San Francisco
• Because Long Beach is both a large city and has its own CoC, we receive significantly less large city HHAP funding than others
• For the HHAP Round 4 large city category, some cities will receive well over $5,000 per p erson experiencing homelessness
o With the recent inclusion of Irvine in the large cities category, the City of Irvine receives $84,882.59 in funding per person experiencing homelessness, despite only having 60 people experiencing homelessness based on the 2022 point-in-time count • Long Beach only receives $2,672.06 in funding per person experiencing homelessness, while the median per city funding across the large cities is $4,125.74 per person experiencing homelessness Asks
• Make distribution of state homeless funding more equitable for Long Beach through sources like the Homeless Housing, Assistance, and Prevention program • Expand state efforts to incentivize and produce affordable housing and shelter in the Gateway Cities region
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
Mental Health
Mental Health in Long Beach
• The 2023 point in time count revealed an increase in the number of people experiencing homelessness with serious mental health conditions
• Of the 3,447 people experiencing homelessness in Long Beach, 31.8 percent reported being affected by substance misuse, and 34.7 percent by a serious mental illness • Between 2018 and 2020, about 15.8 percent of Long Beach residents 18 years and over reported not having good mental health for 14 days or more, with ZIP Code 90813 having the highest rate of reporting this issue
• In October of 2022, the Long Beach DHHS issued over $3 million in funding to address factors that contributed to COVID -19 hospitalizations as well as the impacts of COVID -19, including mental health supports and trauma recovery
• Received $1.35 million in grant funding from the Hilton Foundation to support a mobile mental health and substance use treatment program for people experiencing homelessness • Launched the city-wide “Mental Health Matters” awareness campaign designed to normalize and destigmatize mental health conditions and improve access and connection to mental health supports in Long Beach
• Through the Long Beach Recovery Act, the DHHS provided $300,000 in funding to contract with six Black Mental Health Providers to increase access to mental health care by connecting uninsured and underinsured Black residents to culturally affirming, quality mental health services at no cost
• Currently, the administration and location of mental health and substance use services falls within Los Angeles County’s jurisdiction, rather than the City’s Health & Human Services Department (DHHS), creating disconnected systems of care for those needing mental health services • We have consistently asked the County to increase resources and access to mental health resources locally, but we have not seen significant movement in this direction
Localizing Mental Health Services
• Given the lack of local mental health resources, in 2021 the City began the process to research options to bring more localization of mental health resources • On November 9, 2021, the Long Beach City Council directed the City Manager to work with the Long Beach Health & Human Services Department (DHHS) and local mental health providers to explore the feasibility of establishing a more robust infrastructure for mental health services in collaboration with the County of Los Angeles
• In response to this directive, the DHHS began convening a Mental Health Advisory Group in May of 2022, and hosted meetings to obtain input regarding the strengths and challenges of the mental health system, focusing on the following populations of concern: children and youth in schools, adults living with depression and anxiety, people experiencing homelessness, and those in crisis
• Between May 2022 and February 2023, the DHHS convened and facilitated a planning process intended to develop recommendations for a more robust mental health system in Long Beach • One recommendation includes identifying and supporting legislation to provide funding for the coordination of local mental health system efforts
CITY OF LONG BEACH ADVOCACY TRIP
MEETING BRIEFING NOTES
April 8, 2024
Mental Health Services Act/Proposition 1
• Gov. Newsom championed a 2024 ballot initiative (Proposition 1) to improve how California treats mental illness, substance abuse, and homelessness
• Proposition 1 passed by the narrowest of margins, 50.2% to 49.8% • Proposition 1 would fund a $6.4 billion bond to drastically expand the state’s me ntal health and substance abuse treatment infrastructure
• A majority of Proposition 1 funding , $4.4 billion, would be used to build 10,000 in -patient and residential treatment beds across the state. The remainder would fund permanent supportive housing with half set aside for veterans with mental illness or addiction disorders • Proposition 1 also requires counties to change the way they spend existing mental health dollars by directing them to prioritize housing for people who are chronically homeless • Current MHSA rules don’t allow funds to be used to meet the housing needs for people with serious behavioral issues
• The MHSA funds 30% of the mental health system, but it’s never undergone reform in the 20 years since voters passed it
• Modernizing the MHSA presen ts a unique opportunity to re -envision how the state funds California’s behavioral health system
• Current MHSA rules do not provide direct resources to local city health jurisdictions despite the overwhelming need for mental health services for large cities like Long Beach • The City of Long Beach is committed to working with the Governor to revise the MHSA to allow for the provision of direct resources to local city health jurisdictions and large cities for mental health services
Long Beach’s Priorities for MHSA Funding
• Funding for a service coordination hub – staffing, technology, facility • Funding neighborhood based mental health clinicians – located in existing city or CBO facilities where people already go. Not based on insurance so not nee ding to bill. Direct funding of clinicians
• Funding technology supports for data sharing and system access, including virtual treatment • Funding people who can do the assessments in locations around the City to increase understanding of need and connection to services
• Funding for facilities to offer to residential/crisis service providers for treatment • Funding for crisis response teams
Asks
• Expand local mental and behavioral health resources in Long Beach, including access to funding and services
• Include a pathway for cities with their own health departments to access direct allocations of future MHSA funding