Approved as to Form and Legality
Jordan Flanders
Jordan Flanders (Oct 3, 2024 14:58 EDT)
City Attorney’s Office
OAKLAND CITY COUNCIL
RESOLUTION NO. C.M.S.
RESOLUTION AMENDING RESOLUTION NO. 90204 C.M.S., WHICH
AWARDED A GRANT AGREEMENT TO HOUSING CONSORTIUM
OF THE EAST BAY IN AN AMOUNT NOT TO EXCEED $6,800,000
FOR FISCAL YEAR (FY) 24/25 AND AN ADDITIONAL $6,800,000 FOR FY 25/26, CONTINGENT ON FUND AVAILABILITY IN THE
BIENNIAL BUDGET, TO OPERATE AND MOVE AN EXISTING
EMERGENCY SHELTER PROGRAM TO THE 110 -ROOM JACK
LONDON INN, TO: (A) INCREASE THE AMOUNT PER FY UP TO
$7,900,000 (B) AUTHORIZE THE CITY ADMINISTRATOR TO
CHANGE THE LOCATION OF THE PROGRAM IF THE NUMBER OF
SHELTER BEDS IS GREATER THAN OR EQUAL TO 88 AND IF THE
TOTAL COST DOES NOT EXCEED THE INCREASED PER FY
AWARD AND (C) EXTEND THE INITIAL TERM THROUGH
DECEMBER 31, 2025
WHEREAS, the City acknowledges that it is facing a serious affordable housing crisis, with thousands of residents living unhoused or in substandard housing conditions; and
WHEREAS, the number of homeless persons in the City of Oakland continues to increase, with the latest 2024 point-in -time count of 5,493 individuals experiencing homelessness in Oakland, an increase of 2,731 individuals from 2017; and
WHEREAS, the homelessness problem affects Oakland's population disproportionately, a majority of the homeless identify as Black or African American, while Black and African American households are a minority in the City's overall population; and
WHEREAS, the City has contracted with Housing Consortium of the East Bay (HCEB) since May 1, 2021, to operate an emergency shelter program prioritizing medically fragile and/or age 60 and older unsheltered Oaklanders at Lake Merritt Lodge; and
2 WHEREAS, the City entered into an occupancy agreement to use the Lake Merritt Lodge between April 27, 2021 and June 30, 2024, and is currently in holdover status on the expired agreement; and
WHEREAS, the budget for the occupancy agreement at Lake Merritt Lodge averaged $6,000,000 per year, including security deposits, plus an additional $2,277,050 for operating costs of the program; and
WHEREAS, it is no longer financially feasible to continue the emergency shelter program at Lake Merritt Lodge, and the City is therefore in need of an alternate location to operate the program; and
WHEREAS, the City Council adopted Resolution No. 90204 C.M.S. on May 7, 2024, which authorized the City to enter a grant agreement with HCEB for an amount not to exceed $6,800,000 to instead operate the emergency shelter program at the Jack London Inn; and
WHEREAS, the parties negotiating for the occupancy agreement of the Jack London Inn were subsequently unable to reach acceptable terms for the use of that property; and
WHEREAS, HCEB now requires permission under the terms of the grant agreement to operate the emergency shelter program at a new location; and
WHEREAS, this new occupancy agreement will have a term of at least one year, and the term of the program must therefore be extended to cover the term of the occupancy agreement; and
WHEREAS, HCEB must urgently enter into an occupancy agreement with a new property to prevent an interruption of service for the current participants in the Lake Merritt Lodge program; and
WHEREAS, funding for the occupancy agreement and the emergency shelter program in FY 24-25 has been identified in the General Purpose Fund (1010), Community Housing Services Organization (78411), DP780 Administrative Project (1000017); OPR Preservation, Litter Reduction, Homelessness Support Act Measure Q Fund (2244), Community Housing Services Organization (78411), DP780 Administrative Project (1000017); and the State of California Fund (2159), Community Housing Services Organization (78411), HHAP Round 5 Project (1007402); and
WHEREAS, City staff estimates that the FY 24-25 costs for the new program will not exceed $7,900,000 and be provided at a per bed cost less than the prior Lake Merritt Lodge rate; now, therefore, be it
RESOLVED: That the City Council finds and determines that the foregoing 3 recitals are true and correct and an integral part of this Resolution, and be it
FURTHER RESOLVED: That the City Administrator, or designee, is authorized to negotiate and enter into a grant agreement with Housing Consortium of the East Bay (HCEB) to operate an emergency shelter program prioritizing medically fragile and/or age 55 and older unsheltered Oaklanders out of a new location containing at least 88 beds to be approved by the City Administrator in the amount not to exceed $7,900,000 through December 31, 2025; and be it
FURTHER RESOLVED: That, given the urgent need to relocate the emergency shelter program out of Lake Merritt Lodge to a suitable facility on the soonest possible basis to prevent an interruption of service for the current participants, the City Council finds it in the best interest of the City to execute a FY 24-25 grant agreement with HCEB to operate said emergency shelter program; and be it
FURTHER RESOLVED: That the City Administrator, or designee, is authorized to conduct all negotiations; execute and submit all documents, including but not limited to applications, agreements, amendments, modifications, and payment requests; and to take any other related actions consistent with this Resolution and its basic purpose; and be it
FURTHER RESOLVED: Should additional funding be allocated in the 2025-27 Biennial Budget for this purpose for fiscal year 25/26, the City Administrator is authorized to extend the grant agreement for a term of twelve additional months through December 31, 2026 up to an additional $7,900, 000, for a total grant amount ove r the term not to exceed $15,800,000;
FURTHER RESOLVED: That prior to execution, all agreements , grants, and amendments shall be reviewed and approved as to form and legality by the City Attorney and executed copies of same shall be filed with the Office of the City Clerk.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California