TO:Andrew P. Powers, City Manager
FROM:Tracy M. Noonan, City Attorney
DATE:February 27, 2024
SUBJECT: Legal Services for Navigation Center Project
RECOMMENDATION:
1. Approve First Amendment to Contract No. 13169-2023 with the law firm of Best, Best & Krieger (BB&K) of Riverside, CA in the amount of $50,000 for continued legal services relating to the Navigation Center to be located at 1205 Lawrence Drive, for a total not-to-exceed amount of $125,000.
2. Authorize expenditure in FY 2023-24 in the amount of $50,000 from A/C #001- 1610-611-51-99 (HSNAVI, Legal Services).
3. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time required to prepare the report and $50,000 is included in the Adopted FY 2023-24 General Fund Budget.
BACKGROUND:
In 2021, City Council prioritized identifying and advancing solutions for emergency sheltering and permanent supportive housing. In pursuit of this priority, City Council previously authorized staff to work on the possible development of the City-owned parcel at 1205 Lawrence Drive to serve as the initial location for the City’s emergency shelter, herein referred to as the Navigation Center. The site will support modular homes for up to 50 persons, an administration office and onsite clinic units, laundry and shower facilities, furnishings, storage, and other necessary equipment.
The approved service-enriched Navigation Center will provide immediate interim housing for residents experiencing homelessness, give onsite support and housing navigation services to each person in either preparing to return to stable traditional housing or to transition into permanent supportive housing based on their unique
Legal Services for Navigation Center Project
February 27, 2024
individual circumstances and needs, and will enhance the City’s enforcement capabilities to preserve public safety and environmental quality.
On December 6, 2022, City Council unanimously approved staff’s recommendation to select DignityMoves (San Francisco, CA), Hope the Mission (Mission Hills, CA), and Many Mansions (Thousand Oaks, CA) (herein referred to as Proposers) to develop, lease, and operate a Navigation Center. DignityMoves will serve as the developer, Hope the Mission will serve as the operator, and Many Mansions will serve as the consultant/leaseholder for the navigation center.
On January 13, 2023, the City hired BB&K to assist in drafting a lease agreement for the Proposers to consider. The legal services Contract No. 13169-2023 (Attachment #1) was entered into for an amount not to exceed $75,000 and was approved by the City Manager as permitted under his authority. Contracts exceeding $75,000 require City Council approval.
The parties then began good-faith negotiations on the terms of the lease. As negotiations continued, the parties agreed to create separate agreements for each of the three entities making up the Proposer team. Due to this change in plans, additional time was needed to draft and negotiate terms with each of the three entities.
On January 12, 2024, City Council approved the Ground Lease with Many Mansions, the Professional Services Agreement with Hope the Mission, and the Development Management Agreement with DignityMoves.
DISCUSSION/ANALYSIS:
The law firm of BB&K has extensive experience in real estate transactions involving affordable housing and has significantly assisted the City in the negotiation and preparation of the legal documents noted above. Due to a myriad of factors, including preparing three separate agreements for the respective parties and spending an extensive amount of time negotiating different drafts of the Development Management Agreement with DignityMoves, the lawyers have expended more hours on the project than staff originally anticipated. To ensure there is adequate funding to properly compensate BB&K for the work already performed and yet to be performed, staff is requesting an additional $50,000 be added to the legal services agreement associated with the Navigation Project for a total not-to-exceed amount of $125,000.
Legal Services for Navigation Center Project
February 27, 2024
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Patrick J. Hehir, Assistant City Attorney
Attachments:
Attachment #1 – First Amendment to Legal Services Agreement CAO: 650-90\pjh\Legal Files\Navigation Center\Staff Report 02.27.2024 First Amendment to Legal Services Agreement.docx