Navigation Center Progress Update
April 29, 2025
TO:Andrew P. Powers, City Manager
FROM:Ingrid Hardy, Assistant City Manager
DATE:April 29, 2025
SUBJECT: Navigation Center Progress Update
RECOMMENDATION:
1. Approve First Amendment to Ground Lease Contract No. 13555-2024 between the City of Thousand Oaks and Many Mansions.
2. Approve First Amendment to Professional Services Contract No. 13544-2024 between the City of Thousand Oaks, and jointly, Hope the Mission and Many Mansions.
3. Approve First Amendment to City Council Cost Sharing Contract No. 13200- 2023 between the City of Thousand Oaks and County of Ventura.
4. Authorize City Manager to execute said agreements.
5. Approve budget appropriation and expenditure in the amount of $837,333 from A/C #001-0000-311-0000 (General Fund, Fund Balance) to A/C #001-0960-644- 5699 (HSNAVI, General Fund, Navigation Center) for additional costs related to the construction of the Navigation Center.
6. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
$837,333 Increase to the Adopted FY 2024-25 General Fund Budget. An additional $837,333 increase to the Adopted FY 2024-25 General Fund Budget is requested to pay DignityMoves for increased construction costs. Original
Navigation Center Progress Update
April 29, 2025
development budget was $8,146,529. $390,111 of this amount was approved to be funded by the Solid Waste Fund to pay for its share of the Food Recovery Storage Facility, however the location was since moved to the Thousand Oaks Transit Center. Additional change orders increased total development budget to $8,593,751. This is partially offset by State Encampment Resolution Fund (ERF) grant dollars in the amount of $5,828,740.80 and County of Ventura’s commitment to pay up to $2,000,000 towards construction. Fee waivers from Conejo Recreation and Park District and Conejo Valley Unified School District have helped to offset some of the overall construction cost. The General Fund is paying the balance of the construction costs.
Per the Professional Services Agreement between the City and Hope the Mission (HTM), the initial annual operating budget is $1,171,373. The operating costs from opening through the end of FY 2024-25 are completely offset by ERF grant funding. The Professional Services Agreement allows for an annual consumer price index adjustment, up to 5 percent annually. It is estimated the annual operating budget for FY 2025-26 will be $1,206,514. The majority of this will be paid for with the balance of the ERF grant. The City and the County will share the balance of the costs 50/50, with the City’s share paid for by the General Fund.
Budget for operating costs will be requested as part of the upcoming and future biennial budget processes.
BACKGROUND:
On September 27, 2022, City Council authorized staff to issue a Request for Proposals/Qualifications (RFP/Q) for the construction and operation of a Navigation Center at 1205 Lawrence Drive. City staff issued the RFP/Q on October 7, 2022. On December 6, 2022, City Council unanimously approved staff’s recommendation to select Many Mansions, Hope of the Valley Rescue Mission (now Hope the Mission), and DignityMoves (Proposer) to develop, lease, and operate a Navigation Center and directed staff to develop an Exclusive Negotiations Agreement (ENA).
On February 28, 2023, City Council authorized the ENA, approved staff to work with the County and the Proposer to submit a grant application to the State of California for the ERF grant program and authorized the City Manager to execute a cost-sharing agreement with the County of Ventura to provide up to $2.0 million in funding towards construction and 50 percent of annual operating costs.
In August 2023, the City was awarded a $5.8 million ERF grant to support the construction and operations of the Navigation Center.
Navigation Center Progress Update
April 29, 2025
On October 23, 2023, the Planning Commission unanimously approved a Special Use Permit (SUP) for the construction and operation of a navigation center, support facilities, supportive services, and associated improvements. Planning Commission approval of the SUP was required for this proposed project as emergency shelters are not permitted by right in the City’s M-1 zone. The SUP outlines conditions of approval of this proposed use at this location within the M-1 zone. These conditions of approval provide the foundation for more detailed agreements between the City and Proposer.
On January 16, 2024, City Council approved definitive agreements between the City and the Proposer. These agreements consisted of a Ground Lease with Many Mansions, a Development Management Agreement with DignityMoves, and a Professional Services Agreement with Hope the Mission and Many Mansions jointly. City Council also approved specified expenditures and budget appropriations to support initial project implementation.
On September 24, 2024, City Council received a construction progress update highlighting the challenges and obstacles that added time to the project, as well as several ensuing accomplishments, demonstrating the project’s forward progression. During the September update, staff also indicated that they would continue to support Hope the Mission and Many Mansions as they prepare to assume site management and operational responsibilities. This included facilitating communication with the County of Ventura, local law enforcement, other local service providers, and community stakeholders to support critical relationship development, inform operational procedures, and identify fundraising opportunities.
DISCUSSION/ANALYSIS:
As City staff, County staff, and law enforcement works with Hope the Mission and Many Mansions to prepare for operations, staff recommends several contractual amendments that ensure necessary insurance coverage, facilitate cohesive oversight, streamline execution of required documents, and ensure compliance with City and County of Ventura standards.
The First Amendment to Ground Lease Contract No. 13555-2024 (Attachment #1) includes easement rights within the agreement instead of executing a separate lease agreement, requirements for volunteer waivers, lien rights on the units to secure the faithful performance of the lease by Many Mansions, a waiver of loss and damages in the event that Many Mansions has any property damage or loss, and other minor amendments to ensure the protection of the City as landlord and provide clarity to Many Mansions as the tenant.
Navigation Center Progress Update
April 29, 2025
The First Amendment to Professional Services Contract No. 13544-2024 (Attachment #2) includes amendments that allow Many Mansions and Hope the Mission to provide a single policy of insurance and waive separate insurance policies if each type of coverage meets the City’s coverage requirements, changes the daily occupancy performance metric from 70 percent to 90 percent per new County of Ventura cost sharing agreement requirements, allows for volunteers to provide transportation for participants, and provides clarification on agencies who can refer participants to the navigation center.
City Council previously authorized the City Manager to enter into a Cost Sharing Agreement with the County of Ventura. Since the Agreement was executed, the County Board of Supervisors has adopted new performance metrics for shelter operators receiving county funding. County staff will bring an item before their board in June 2025 for implementation of these new metrics in FY 2025-26. The County of Ventura remains committed to sharing the cost of shelter operations and would also like to ensure shelter operators are being held accountable to metrics that facilitate shelter participants move towards the goal of permanent housing.
Staff does not anticipate that execution of a revised agreement will change the City’s 50 percent contribution, rather, the County of Ventura is requesting that the City reduce invoice payment by 5 percent, should fewer than four of the following five goals be attained:
1. Exits to Positive Destinations: Facilitate exits to permanent housing or other positive destinations for at least 30 percent of shelter residents.
2. Housing Plans: Housing plans will be developed for each shelter resident within 30 days of entering the shelter.
3. Length of Stay: Ensure an average length of stay of 180 days or less for non- Permanent Supportive Housing clients entering the facility on or after January 1, 2025.
4. Occupancy Rate: Maintain a minimum shelter occupancy rate of 90 percent.
5. Enrollment in Coordinated Entry System: Clients will be entered into the Coordinated Entry System within one week of entering the shelter.
The requested General Fund budget increase of $837,333 adjusts the development budget to $8,593,751. Nearly half of this budget request is due to the elimination of the Food Recovery and Storage Facility from the project site.
The Solid Waste Fund was paying $390,111 in shared costs, such as the road, due to being located at the project site. With this elimination, the General Fund now has to pay 100 percent of the previously shared costs. Another significant portion of the requested budget increase is due to the delay in ordering units from the manufacturer until the State Housing and Community Development Department (HCD) approved the units. This business decision was made by staff in order to ensure the efficacy of the units before paying the manufacturer for a Navigation Center Progress Update
April 29, 2025
product that may not have been approved by the HCD. Other increased costs were due to Ventura County Fire Department requirements, City building and planning requirements, and a small amount attributed to the accent painting that will be completed before the facility starts receiving clients. Approval of the contract amendments is in alignment with the recently-adopted City Council priorities which call for staff to oversee and carefully adjust site operations as needed during its first year of operations. The requested budget adjustments are a result of changes beyond the City’s control and due to business decisions made in the best interest of expending City dollars.
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.
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
Attachments:
Attachment #1 – First Amendment to Ground Lease Contract No. 13555- 2024
Attachment #2 – First Amendment to Professional Services Contract No. 13544-2024
CMO:585-50\H:\COMMON\Council Items\2025Staff Reports\04 29 25\042925 Navigation Center Progress Update