DATE: MARCH 21, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: EMERGENCY MOTEL PROGRAM ROOM RENTAL AGREEMENTS
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
the City Manager to execute a Room Rental Agreement with JS Inc. for the purpose of providing emergency housing to unhoused City residents in an amount not to exceed $1,500,000; and the City Manager to execute Amendment No. 2 to Agreement No. 22MoCoARPA03 with Marina Hotels Ci, LLC to add an additional $115,000 of Encampment Resolution Funds (ERF) and $135,000 of American Rescue Plan Act (ARPA) funds dedicated to the Homeless Motel Program for a total amount not to exceed $907,000.
EXECUTIVE SUMMARY:
Currently, as a result of the City’s competitive H2A environment, the City is operating a jointly funded City/County Emergency Motel Program (EMP) at the Country Inn in the City of Marina. In October 2022, Council approved the acceptance of County ARPA funds and the execution of an initial Room Rental Agreement with Marina Hotel Ci, LLC to rent up to sixty (60) motel rooms through February 28, 2023 to support the EMP in providing much needed emergency shelter to unhoused residents as they navigate to permanent housing options. In consideration of available funding, persistent inclement winter weather, and ongoing City homeless services initiatives, Amendment No. 1 to the agreement was executed on January 27, 2023, to extend the term of the Agreement through the winter months to April 30, 2023.
Since its inception, staff have worked diligently to identify a new EMP location within the City’s jurisdiction and have finally been able to negotiate a viable, affordable option with JS Inc. for use of the Steinbeck Lodge at 109 John Street with a start date of April 1, 2023. In order to prevent a gap in housing for current EMP participants during the relocation of the program an increase to the current Agreement with Marina Hotels, Ci, LLC is necessary. Prior Council directed ARPA for the Homeless Motel Program and ERF funding will support continued EMP operations at the new Salinas location.
BACKGROUND:
The City of Salinas has been administering an EMP at the Country Inn in the City of Marina since October 2021. The City and County of Monterey have jointly funded the program through a mix of Council designated City ARPA for the Homeless Motel Program , HUD ESG-Covid, HCD CESH and Cal ICH ERF funds and contractually allocated County of Monterey Project Roomkey (PRK) and ARPA funds.
Initially based upon a PRK model, the EMP program has been instrumental in providing emergency housing opportunities, housing navigation and subsidies to vulnerable unhoused residents throughout the Covid-19 pandemic. The program also serves as a significant supportive resource to other priority City initiatives such as Health & Safety Days, the resolution and restoration of the Natividad Creek Park encampments and developing Salinas Soccer Complex, and much needed emergency shelter in times of inclement weather. In more recent months, following the full expenditure of PRK funds, the City has incorporated a more robust housing navigation component within the program and, to date, has transitioned more than forty-five (45) EMP participants to permanent housing.
DISCUSSION:
Since its inception, and due to the competitive H2A motel contracting environment in the City, the EMP has been forced to operate at a location outside of the City’s jurisdiction, the Country Inn in the City of Marina. This has not been optimum for program residents as most are Salinas residents and would prefer to relocate and receive services within the Salinas community. With this in mind, Community Development Department (CDD) staff have persistently continued to explore and identify potential options to allow for movement of the program to a new location within the City’s jurisdiction and have been able to successfully negotiate a proposed agreement with JS Inc. to rent all of the forty-three (43) rooms of the Steinbeck Lodge located at 109 John Street.
Execution of the proposed Room Rental Agreement would allow for the full movement of all existing EMP participants and existing service providers, CSUMB CHE and CCCIL. Similarly, the City will also seek to amend the scope of its existing agreement with Benitez Security Services, Inc. to transfer the provision of EMP site security services to the new location at a reduced rate considerate of the facility’s size and capacity.
Supportive funding to continue EMP operations for an additional year are in place through a mix of City ARPA and Cal ICH ERF1 funds. The City has also requested additional supportive funding as part of its recently submitted Cal ICH ERF2 grant application. It is anticipated that an additional fourteen (14) EMP participants will move to a permanent Homekey housing opportunity in April making way for additional program participants to take advantage of the effective, results-oriented service model.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed Agreement with JS Inc. and Amendment No. 2 with Marina Hotels Ci, LLC each support the City of Salinas Strategic Plan 2022-2025 goal of Housing/Affordable Housing.
DEPARTMENTAL COORDINATION:
CDD’s Economic Development and Housing & Community Development Divisions have jointly coordinated on this item under consultation with the City Attorney.
FISCAL AND SUSTAINABILITY IMPACT:
Authorization to execute the proposed Agreement with JS Inc. not to exceed $1.5 million from appropriated funding through the American Rescue Plan Act dedicated to the Homeless Motel Program, Project Roomkey Motel Program (County ARPA division), and Encampment Resolution Fund. Amendment No. 2 with Marina Hotels Ci, LLC will require the continued use of existing American Rescue Plan Act (ARPA) dedicated to the Homeless Motel Program and use of Encampment Resolution Fund (ERF) funds. Funds are appropriated and available in the appropriate expenditure accounts. No matching City funds are required.
ATTACHMENTS:
Resolution
Room Rental Agreement with JS Inc. - draft
Amendment No. 2 Room Rental Agreement with Marina Hotels Ci, LLC.
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