PowerPoint PresentationHOMEKEY 2.0
Presentation Overview Background Project Homekey Palo Alto: Specifics Site Plan Budget Other
Process Streamlining Grant Timeline Recommendation
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Background: City Council Action on August 9, 2021 A. Support advancing an application for the Project Homekey Program for an emergency shelter in a portion of the Former Los Altos Treatment Plant (LATP) site with specific steps as follows:
i. Pursue partnership with LifeMoves as the nonprofit partner; ii. Pursue zoning changes necessary to allow for an emergency shelter at the LATP site; iii. Direct Staff to identify funding sources and to include that information in the return report to the City Council; iv. Return to City Council in September with sufficient time to make an application and include all application details, including the explanation of all costs; and
B. Continue City Council discussion on the rest of this item to a date uncertain.
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Background: Project Homekey 2.0 Major Notes in the NOFA $200M for Bay Area Applications open October 1st 2021 Awards announced on rolling basis so a very competitive process is expected Initial deadline is January 31, 2022 Homekey will provide $150k/door up to $200k for 3 bed family units in capital subsidy
towards constructing the units Homekey Operating Subsidy for 2 years - $1,000/door (singles) + $1,400/door (family),
providing funding commitment demonstrated for five (5) years Homekey Operating Subsidy could potentially expand over 3 years providing funding
commitment demonstrated up to seven (7) years Any unspent capital subsidy could be allocated towards operating expenses
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• LifeMoves is dedicated to helping homeless families, individuals and veterans return to stable housing and self-sufficiency.
• Exceptional provider of wrap-around services in Silicon Valley.
• Specializes in Interim Supportive Housing for homeless (90-180 days)
• 86% of our families and 67% of all those engaging in our Programs return to stable housing
• Extensive experience 26 sites + additional programs 1,500+ beds, serving over 10,000 clients every year 1/3 of shelter beds occupied by children.
Background: LifeMoves – Provider of Services and Programs
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• Physical structure designs are critical from the start and throughout the project and LifeMoves will provide:
• Program design • Staffing patterns • Human user interface
• Program spaces are designed with the case manager and clients firmly in focus at all times as they are the ultimate “consumers” of the project.
• A plan or roadmap for exiting homelessness and achieving housing is created by the case manager and the client.
• Support often focuses on building skills, accessing resources, and decreasing barriers.
Project Homekey Palo Alto Specifics: Site Plan, Budget, etc.
www.cityofpaloalto.org
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Site plan reconfigures the LATP Area C land for: - The Proposed Homekey site adjacent to the
roadway - Green Waste facilities at the rear
Reasons for the proposed reconfiguration: - Fire access to the rear and a turnaround - Egress paths at the back side of the property
were unavailable - 72-inch utility line along the side of the site - 60-inch utility line at the back of the site
Current LATP Area C Layout
Previous Site Layout
Draft Site Plan
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Updated Site Plan Layout with 88 doors and reconfiguration of Area C
Draft Site Plan – By the Numbers
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The site plan is a two-story design with a total of 88 doors (64 singles/couples units and 24 family units).
The site could serve around 136 individuals.
Site design could accommodate a three-story design if desired.
Modular Unit Design
13 LIFEMOVES | BREAKING THE CYCLE OF HOMELESSNESS
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Site remediation Utility connections FEMA Flood Zone and Palo Alto Sea Level Rise Policy Site Appraisal in Progress
Site Plan - Other
Budget – Estimated Operating Expenses Estimated operating expenses based on LifeMoves calculations are $3.76 Million in year 1 and $3.79 Million in year 2 for 88 doors (servicing ~136 individuals, including families).
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Year 1 Year 2 Year 3 Year 4 Year 5 Total Program Expense Program Salary & Benefits 1,523,786$ 1,599,975$ 1,679,974$ 1,763,973$ 1,852,171$ 8,419,879$ Direct Client Expenses 362,800$ 362,800$ 362,800$ 362,800$ 362,800$ 1,814,000$ Site Operating Costs 848,854$ 814,925$ 826,084$ 865,458$ 850,277$ 4,205,598$ Operations Labor and Fringe 635,553$ 667,171$ 700,370$ 735,228$ 771,829$ 3,510,151$ Programs Estimate Salary and Fringe Increase -$ -$ -$ -$ -$ -$ Total Program Expense 3,370,993$ 3,444,871$ 3,569,227$ 3,727,459$ 3,837,078$ 17,949,628$
Administration Expense Administration Expenses 337,099$ 344,487$ 356,923$ 372,746$ 383,708$ 1,794,963$ Development Expense -$ -$ -$ -$ -$ -$ Admin and Development Estimate Salary and Frin -$ -$ -$ -$ -$ -$ Total Administration Expense 337,099$ 344,487$ 356,923$ 372,746$ 383,708$ 1,794,963$
Total Expenses 3,708,092$ 3,789,358$ 3,926,150$ 4,100,205$ 4,220,786$ 19,744,591$
Capital Costs Capital Costs - Van 55,000$ -$ -$ -$ -$ -$ Total Capital Costs 55,000$ -$ -$ -$ -$ -$
Total Costs Including Capital 3,763,092$ 3,789,358$ 3,926,150$ 4,100,205$ 4,220,786$ 19,744,591$
Expenses Roll-Up
Year 1
Year 2
Year 3
Year 4
Year 5
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
County
$ - 0
$ - 0
$ - 0
City
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
Private
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ - 0
$ 1,171,200
$ 1,171,200
$ 1,171,200
$ - 0
$ - 0
$ 3,513,600
Gap
$ 2,591,892
$ 2,618,158
$ 2,754,950
$ 4,100,205
$ 4,220,786
$ 16,230,991
Assumptions:
YR2: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR3: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR4: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR5: +5% for labor; +3% Repairs & Maint, Ins & IT allocations; +10% Furniture
Expense by Line Item
Overtime Premium
Temp Labor
$ 315,000
$ 315,000
$ 315,000
$ 315,000
$ 315,000
$ 1,575,000
$15k gift cards-Connect; Rental Assistance @ $2K per client for 150 clients
Food
$ - 0
$ - 0
Rent
$ - 0
$ - 0
Utilities
$ - 0
$ - 0
$ 47,800
$ 47,800
$ 47,800
$ 47,800
$ 47,800
$ 239,000
Based on avg. 2 kids per familty unit (42 kids/10 teens); Summer Camp, Stem/snacks, virtual programs, tablets
Total Direct Client Expenses
$1.35/meal; 3 times daily for 136; Assumes no food donations
Rent
$ - 0
$ - 0
Utilities
$ 123,000
$ 123,000
$ 123,000
$ 123,000
$ 123,000
$ 615,000
$ 55,000
$ 55,000
$ 55,000
$ 55,000
$ 55,000
$ 275,000
Includes $20K for food supplies + $30K cleaning & maintenance supplies + $5K for signs/Misc.
Communications
$ - 0
$ - 0
$ 32,000
$ 5,000
$ 5,000
$ 32,000
$ 5,000
$ 79,000
$2,000 per laptop for FT staff; 3 year life span; $5k year replacements
Training/Conferences
$ 4,800
$ 4,800
$ 4,800
$ 4,800
$ 4,800
$ 24,000
Phone/Internet/TV
$ 13,440
$ 13,440
$ 13,440
$ 13,440
$ 13,440
$ 67,200
phone allowance for 16 employees; ofc phone through IT allocation
Employee Food/Meals
Miscellaneous
$ 109,000
$ 110,000
$ 114,000
$ 119,000
$ 122,000
$ 574,000
Equip. Lease and Rental
Dues & Subscriptions
Overtime Premium
Severance Pay
$ 635,553
$ 667,171
$ 700,370
$ 735,228
$ 771,829
$ 3,510,151
County
City
Private
$ 1,171,200
$ 1,171,200
$ 1,171,200
$ - 0
$ - 0
$ - 0
Gap
$ 2,591,892
$ 2,618,158
$ 2,754,950
$ 4,100,205
$ 4,220,786
$ 19,744,591
Assumptions:
YR2: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR3: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR4: +5% for labor; +3% Repairs & Maint, Ins & IT allocations & Furniture
YR5: +5% for labor; +3% Repairs & Maint, Ins & IT allocations; +10% Furniture
Staffing plan
Singles (Ensuites)
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72
2
$ 165,682.40
2
4.2
$ 174,720.00
($450 English speaking/$550 bilingual) + $70/month phone
Budget – Estimated Operating Expenses Operations up to Year 15: By applying for and accepting the grant, the City would commit to a 15-year covenant on the site and to operating the shelter for at least five (5) years.
Operating expenses are projected to be supported by a variety of agencies, which could include: State (Homekey through Housing and Community Development Department), Santa Clara County, LifeMoves, and the City of Palo Alto.
Projected Operating Revenue for Years 1 thru 5 • Homekey (State): $1,171,200 in year 1 and year 2 • Santa Clara County: Commitment to fully fund 2 operating years • LifeMoves and City of Palo Alto: Each committed to working together to identify funding
and solve for any operational gaps • Operating Gap: Estimated to be an operating gap in years 1, 2, and 3. Staff and
LifeMoves seeking options to close the funding gap. • Donations: Individuals can donate to unhoused services or this project (lifemoves.org).
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Capital expenses estimated at $17.6 Million (equates to $200,000/door)
Homekey grant (if awarded) may award up to $14.4 Million Private donor pledged $5 Million towards any capital gap Additional Capital expenses are anticipated for relocating
Green Waste operations to a different part of Area C – some of these costs could be covered by the private donor pledge. The City and LifeMoves would need to solve for this together.
City Lease Revenue: Current contracts at LATP site are ~$115,000 in lease
revenue to General Fund Revenue earning opportunity would be lost going forward
Budget – Capital Expenses and Other
Process Streamlining Projects funded under AB 140 (Homekey) are automatically deemed consistent with all
local requirements and no discretionary approvals can be required and therefore California Environmental Quality Act (CEQA) review not required*
Declaration of an Emergency Shelter Crisis would exempt the signing of the lease with LifeMoves from CEQA review and provide further streamlining of other future Council actions to address homelessness (resolution attached)
Staff and LifeMoves will collaborate to ensure the project's design respects and aligns as closely as possible with the City's design and policy objectives related to protecting and stewarding the Baylands
Relocation of the Green Waste facilities may require a Comprehensive Plan Map Amendment to change the land use designation of a portion of the site CEQA review, staff time for review and permitting required for GW site improvements.
*(Health and Safety Code section 50675.1.3, subsection (i))
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1. Adopt a resolution declaring an emergency shelter crisis; 2. Adopt a resolution authorizing the City Manager to apply for California Project
Homekey funds in conjunction with LifeMoves for an 88-unit emergency shelter project at a portion of the LATP site (1237 North San Antonio Road);
3. Direct staff to complete due diligence necessary for the application; 4. Direct staff to return with necessary actions related to capital and operating
costs for the project and include the City’s portion of the operating expenses as part of the City’s Long Range Financial Forecasting, taking into account the funding from LifeMoves as a partner as well as financial support from other agencies (e.g., the State, and Santa Clara County).
5. Direct staff to identify the costs associated with moving Green Waste operations within LATP Area C and to work with LifeMoves to identify funding sources for the relocation.
Recommendation