City Council
March 15, 2022
AGENDA REPORT
TO: Edward D, Reiskin FROM: Sara Bedford
City Administrator Director, Human Services
SUBJECT: Supplemental Report - Lake Merritt
Lodge Lease Extension
DATE: March 7, 2022
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Accept A Supplemental Report To Update The Staff Report That Published On March 4, 2022 For The March 15, 2022 City Council Meeting.
REASON FOR SUPPLEMENTAL
On March 1, 2022 the Biden Administration issued a memo extending the time period of the Federal Emergency Management Agency (FEMA) reimbursements for COVID response activities, including emergency non congregate shelter, through June 30, 2022. As a result, the costs of the proposed policy alternatives need to be adjusted. The full White House Memo can be found here: https://www.whitehouse.gov/briefing-room/presidential- actions/2022/03/01/memorandum-on-maximizing-assistance-to-respond-to-covid-19-2/
ANALYSIS AND POLICY ALTERNATIVES
Policy Direction for FY 22-23
Staff recommends that the City Council provide some policy direction during its mid-cycle budget deliberations on the final disposition of the building. The updated chart below (Table 2) identifies three policy alternatives for Council consideration and their associated costs for supporting the building and providing permanent housing placements for all clients. All alternatives assume 6 months are necessary to successfully place all clients and estimates the cost of those placements at $2.2 million. All three options below have been updated to reflect full FEMA reimbursement through June 30, 2022.
Mar 10, 2022
Edward D, Reiskin, City Administrator
Subject: Supplemental Report - Lake Merritt Lodge Lease Extension Date: March 7, 2022 Page 2
City Council
March 15,2022
Table 2: Policy Alternatives
Policy
Alternatives
Scenario 1: 6
Months Scenario 2: 9 months Scenario 3: 15
months
Term April 2022-
September 2022
April 2022-December
2022 April 2022-June 2023
Actions
Building does not
backfill vacancies
starting April 1, 2022
and closes in
September 2022.
Building does not
backfill vacancies
starting July 1, 2022
and closes in Dec
2022.
Building does not
backfill vacancies
starting January 1,
2023 and closes in
June 2023
Building Lease*** $1,140,000 $2,280,000 $3,420,000
Client Support
Services
$569,262 $1,138,524 $1,707,786
Exit Resources $2,200,000 $2,200,000 $2,200,000
Total Funding
Needed $1,709,262 $5,618,524 $7,327,786
Resources
already budgeted
and available **
$2,200,000 $2,200,000 $2,200,000
Funding Gap* +$500,000 $3,418,524 $5,127,786
*Funding Needed to be identified
**Funding Currently Available
***Maximum costs as lease terms may lead to lower leasing costs as individual floors are vacated.
During the mid-cycle budget deliberations, staff recommends that the City Council identify the funding to adopt policy alternative #2 that will support LML through December 2022 and provide sufficient funding for exit strategies for all households in the facility. With this plan, LML would maintain current clients and continue work on exit strategies. During the six months between July and December no backfill of rooms will take place and all residents will be supported to have a safe and stable exit to permanent housing. The cost of this scenario is estimated at a maximum of $5,618,524 and of this cost, $2.2 million is already available for the exit in Measure W, requiring additional funding of $3.4 million to be identified.
In addition, keeping the building open through December 2022 provides time for staff to explore any new opportunities for using the building on a permanent basis (through purchase or long term tease). This could include HomeKey round three funds from the state or other new funding opportunities. Without a permanent funding source identified to buy and operate the building, staff does not recommend keeping the building open past December 2022.
Edward D, Reiskin, City Administrator
Subject: Supplemental Report - Lake Merritt Lodge Lease Extension Date: March 7, 2022 Page 3
Ci
ty Council
March 15,2022
ACTION REQUESTED OF THE CITY COUNCIL
Staff R
ecommends That The City Council Accept A Supplemental Report To Update The Staff Report That Published On March 4, 2022 For The March 15, 2022 City Council Meeting.
For ques
tions regarding this report, please contact Lara Tannenbaum, Community Homelessness Services Manager, at 510-238-6187.
Res
pectfully submitted,
SARA B
EDFORD
Director, Human Services Department
Rev
iewed by:
Lara Tannenbaum, Manager
Community Homelessness Services
Rev
iewed by:
Brendan Moriarty,
Real Property Asset Manager
Economic & Workforce Development
Department
Pr
epared by:
Lara Tannenbaum, Manager
Community Homelessness Services