City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01177 June 28, 2022
Title: Emergency Solutions Grant (ESG) Funding for North Fifth Street Navigation Center Expansion and Ongoing Operations
Location: 700 North Fifth Street, District 3
Recommendation: Adopt a Resolution to accept $776,797 in Emergency Solutions Grant (ESG) funding from the Sacramento Housing and Redevelopment Agency (SHRA) for the North Fifth Street Navigation Center expansion and ongoing operations, including the necessary authority for the City Manager, or the City Manager’s designee, to execute the necessary documents to receive and allocate this funding to Shelter Inc., the operator of the Navigation Center.
Contact: Danielle Foster, Housing Policy Manager, 916-808-1869, [email protected], Office of Innovation and Economic Development
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: In accordance with the Comprehensive Siting Plan, adopted by the City Council in August 2021, staff has taken the necessary steps to expand the available beds at the North Fifth Street Navigation Center. The one-time expenses and initial expansion from 104 to 145 beds is being funded through this COVID-expanded funding source under ESG. With the relocation of the Interim Care Program (ICP) beds to the new Wellspace location, available shelter beds will increase to 163 starting in July. This report is being brought to the City Council for authorization to receive and utilize this federal funding source for this purpose.
Policy Considerations: This action is consistent with the Comprehensive Siting Plan adopted in August 2021 and the ongoing Shelter Crisis response, as acknowledged by the City Council in January 2022. There continues to be ongoing need for this navigation center and additional access to shelter beds.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The current action is the establishment of a funding mechanism to finance various activities, including the environmental review necessary for the development of the ultimate housing project.
The establishment of a funding mechanism is not a project pursuant to CEQA Guidelines section 15378(b)(4). The establishment of this funding mechanism does not constitute an approval of any particular project and does not foreclose the adoption of alternatives or mitigation measures because environmental review, as necessary, was conducted as part of the Comprehensive Siting Plan adoption. (CEQA Guidelines, § 15004(b).)
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Accessing federal funding for the expansion of local shelter beds is consistent with our objectives in the locally adopted Comprehensive Siting Plan, the 2021 Housing Element adoption, and the use of Emergency Solutions Grant funding. Utilizing these funds accomplishes local goals while leveraging federal resources.
Financial Considerations: On August 10, 2021, Council adopted Resolution No. 2021-0251 which included direction to expand the capacity at the North Fifth Street Navigation Center as part of the City’s response to the local shelter crisis. The actions in this report would introduce a new revenue source of federal Emergency Solutions Grant (ESG) funding totaling $776,797 to the City and appropriating these funds to the North Fifth Street Navigation Center.
Therefore, staff recommends increasing the revenue and expenditure budget of the ESG North 5th Shelter Services Project (I02000200) by $776,797 in the Operating Grant Fund (Fund 2702) for the expansion and operations for the shelter through June 30,2022.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
June 28, 2022
AUTHORIZATION TO RECEIVE AND ALLOCATE $776,797 OF EMERGENCY
SOLUTIONS GRANT (ESG) FUNDING FROM THE SACRAMENTO HOUSING &
REDEVELOPMENT AGENCY (SHRA) FOR THE NORTH FIFTH STREET NAVIGATION
CENTER EXPANSION AND ONGOING OPERATIONS AND TO EXECUTE THE
NECESSARY AGREEMENTS AND RELATED DOCUMENTS FOR THE RECEIPT AND
USE OF THESE FUNDS
BACKGROUND
A. On August 10, 2021, the City Council adopted the Comprehensive Siting Plan that included direction to staff to expand capacity at the North Fifth Street Navigation Center as part of the City’s response to the local shelter crisis.
B. With these funds, the accommodations at the North Fifth Street Navigation Center are increased from 104 to 145 beds for adult men and women.
C. The Sacramento Housing & Redevelopment Agency (SHRA) received additional funding through the Emergency Solutions Grant (ESG) Program as part of the federal COVID-19 pandemic response.
D. ESG funds are being provided to the City for purposes of expanding and operating the North Fifth Street Navigation Center, consistent with the goals of the ESG Program.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City is authorized to receive $776,797 of Emergency Solutions Grant (ESG) funding from SHRA for the North Fifth Street Navigation Center expansion and operations.
Section 2. The City Manager, or the City Manager’s designee, is authorized to deposit $776,797 in Emergency Solutions Grant (ESG) to the City in the Operating Grant Fund (Fund 2702) to be used for the North Fifth Navigation Center project, (Project I02000248).
Section 3. The City Manager, or his designee, is authorized to increase the revenue and
expenditure budgets for the use of ESG funding to the North Fifth Street Shelter Services (I02000248) in the amount of $776,797 from the Emergency Solutions Grant (ESG) to the Operating Grant Fund (Fund 2702).
Section 4. The City Manager, or his designee, is authorized to negotiate, enter into, execute, and amend, as necessary, the documents required to receive and utilize this funding for the authorized purposes.