HomeMy WebLinkAboutStaff Report 13731
CITY OF PALO ALTO
Supplemental Report - Item 14
MEETING DATE: NOVEMBER 1, 2021
TO: HONORABLE CITY COUNCIL
FROM: CHANTAL GAINES-LYNCH, DEPUTY CITY MANAGER
SUBJECT: CITY COUNCIL RECEIVE AN UPDATE ON HOMEKEY, ADOPT AN
AMENDED 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), AND
RELATED DIRECTION TO STAFF AS APPROPRIATE
Recommendation
Staff recommends that City Council receive an update on Homekey, adopt an amended
resolution (Attachment A) 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), and related direction to staff as
appropriate.
Supplemental Information
Discussion
Staff continues to work with LifeMoves to prepare all information for the very detailed
application or Project Homekey. The application requires that a site Phase I and Phase II report
(among other things) be completed before the application can be submitted. The City’s
application will be submitted after the Phase II report is completed in late November
(estimated completion timing).
As mentioned in the original staff report printed for this November 1 meeting, the updated
operating costs over the course of seven (7) years is shown below and in Exhibit 1.
Operating Expenses over 7 Years for Palo Alto Homekey:
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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total
Program Expense
Program Salary & Benefits 1,523,786$ 1,599,975$ 1,679,974$ 1,763,973$ 1,852,171$ 1,889,215$ 1,926,999$ 12,236,092$
Site Operating Costs 1,214,687$ 1,197,749$ 1,209,106$ 1,248,775$ 1,234,362$ 1,283,316$ 1,276,659$ 8,664,654$
Operations Labor and Fringe 768,502$ 806,648$ 846,700$ 888,755$ 932,913$ 951,459$ 970,376$ 6,165,353$
Total Program Expenses 3,506,975$ 3,604,372$ 3,735,780$ 3,901,502$ 4,019,446$ 4,123,990$ 4,174,034$ 27,066,099$
Administration Expenses
Administration Expenses 350,698$ 360,437$ 373,578$ 390,150$ 401,945$ 412,399$ 417,403$ 2,706,610$
Total Administration Expenses 350,698$ 360,437$ 373,578$ 390,150$ 401,945$ 412,399$ 417,403$ 2,706,610$
Total Expenses 3,857,673$ 3,964,809$ 4,109,358$ 4,291,652$ 4,421,390$ 4,536,389$ 4,591,437$ 29,772,709$
Capital Costs - Van 55,000$ -$ -$ -$ -$ -$ -$ 55,000$
Total Expenses Including Van 3,912,673$ 3,964,809$ 4,109,358$ 4,291,652$ 4,421,390$ 4,536,389$ 4,591,437$ 29,827,709$
Table also shown in Exhibit 1 in full size.
For the operating expenses, LifeMoves in partnership with the City will establish a path to set a
target of funds to commit over the seven (7) year period and the City will partner with
LifeMoves on a fundraising and cost management strategy including support LifeMoves in any
application for government or grant application funding. As outlined and agreed to by the City
Council, the City’s contribution to the operating costs is $7 million over the 7 years with the
timing to be determined. Some operating funding support is expected from the project
HomeKey funding (estimated at $3.89 million) as well as the County of Santa Clara. Any
remaining gaps in funding will need to be closed by fundraising, operating cost containment
strategies, and/or grant funds.
The capital funding sources for Homekey are shown below. There is an increased amount of
anticipated base funding due to innovatively making the family units into more versatile spaces
with additional doors though serving, at minimum, at least the same number of families.
Capital Funding:
CAPEX Funding Palo Alto
Public and Private Funding
CA BASE HomeKey Funding $16,200,000
Supplemental Homekey Match $4,891,104
Homekey Bonus Award (early app) $1,080,000
Private Donor $5,000,000
Total CAPEX Funding $27,171,104
Included in the total capital expenses (in addition to the capital expenses necessary for the
buildout of the new facility) is an estimated cost associated with the relocation of the
GreenWaste facilities on part of the current parcel to another part of Area C. Initial cost
estimates related to GreenWaste relocation reflect capital investment of just under $1 million.
These site relocations within the parcel include (but are not limited to) pavement of new areas,
movement of modular infrastructure and utilities such as charging stations, and CEQA or
remediation efforts needed. Staff continues to review and refine these costs and evaluate if
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these costs are eligible for Homekey funding as currently expected. If the Homekey funds do
not cover the GreenWaste changes, this would be an additional cost to the project.
ATTACHMENTS:
• Exhibit 1-Nov. 1 Homekey-Operating Expenses
• Attachment A: Updated Resolution to Apply for Project Homekey 2021 (Revised)
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Exhibit 1 – Updated Homekey Operating Expenses (estimated)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total
Program Expense
Program Salary & Benefits 1,523,786$ 1,599,975$ 1,679,974$ 1,763,973$ 1,852,171$ 1,889,215$ 1,926,999$ 12,236,092$
Site Operating Costs 1,214,687$ 1,197,749$ 1,209,106$ 1,248,775$ 1,234,362$ 1,283,316$ 1,276,659$ 8,664,654$
Operations Labor and Fringe 768,502$ 806,648$ 846,700$ 888,755$ 932,913$ 951,459$ 970,376$ 6,165,353$
Total Program Expenses 3,506,975$ 3,604,372$ 3,735,780$ 3,901,502$ 4,019,446$ 4,123,990$ 4,174,034$ 27,066,099$
Administration Expenses
Administration Expenses 350,698$ 360,437$ 373,578$ 390,150$ 401,945$ 412,399$ 417,403$ 2,706,610$
Total Administration Expenses 350,698$ 360,437$ 373,578$ 390,150$ 401,945$ 412,399$ 417,403$ 2,706,610$
Total Expenses 3,857,673$ 3,964,809$ 4,109,358$ 4,291,652$ 4,421,390$ 4,536,389$ 4,591,437$ 29,772,709$
Capital Costs - Van 55,000$ -$ -$ -$ -$ -$ -$ 55,000$
Total Expenses Including Van 3,912,673$ 3,964,809$ 4,109,358$ 4,291,652$ 4,421,390$ 4,536,389$ 4,591,437$ 29,827,709$
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*NOT YET APPROVED*
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RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF PALO ALTO AUTHORIZING JOINT
APPLICATION TO THE PROJECT HOMEKEY PROGRAM (REVISED)
R E C I T A L S
A. WHEREAS, the Department of Housing and Community Development (Department) has
issued a Notice of Funding Availability (NOFA), dated September 9, 2021, for the Homekey
Program (“Homekey” or “Homekey Program”). The Department has issued the NOFA for
Homekey grant funds pursuant to Health and Safety Code (HSC) Section 50675.1.3
(Assembly Bill No. 140 (2021-2022 Reg. Session)); and
B. WHEREAS, the City of Palo Alto (Co-Applicant) desires to jointly apply for Homekey grant
funds with LifeMoves (Corporation). Toward that end, Co-Applicant is joining Corporation
in the submittal of an application for Homekey funds (Application) to the Department for
review and consideration; and
C. WHEREAS, the City Council for the City of Palo Alto adopted Resolution No. 9993 on
September 27, 2021, authorizing a joint application with LifeMoves for Homekey grant
funds and now wishes to update the projected grant request and budget based on new
information; and
D. WHEREAS, the Department is authorized to administer Homekey funds pursuant to the
Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of
Division 31 of the Health and Safety Code). Homekey funding allocations are subject to
the terms and conditions of the NOFA, the Application, the Department approved STD
213, Standard Agreement (Standard Agreement), and all other legal requirements of the
Homekey Program;
NOW, THEREFORE, the City Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Co-Applicant is hereby authorized and directed to submit a joint Application
to the Department in response to the NOFA, dated September 9, 2021, and to jointly apply for
Homekey grant funds in a total amount not to exceed $27 million. That amount includes $22.17
million for capital expenditures (as allowed under Health and Safety Code, Section 50675.1.3 and
$3.89 million for a capitalized operating subsidy (as allowed under Health and Safety Code,
Section 50675.1.3).
SECTION 2. If the Application is approved, the City Manager, on behalf of Co-Applicant,
is hereby authorized to ensure that any funds awarded for capital expenditures are spent within
8 months of the date of award and that any funds awarded for capitalized operating subsidies
are spent by June 30, 2026.
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*NOT YET APPROVED*
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SECTION 3. If the Application is approved, Co-Applicant is hereby authorized to enter
into, execute, and deliver a Standard Agreement in a total amount not to exceed $26 million, any
and all other documents required or deemed necessary or appropriate to secure the Homekey
funds from the Department and to participate in the Homekey Program, and all amendments
thereto (collectively, the “Homekey Documents”).
SECTION 4. Co-Applicant acknowledges and agrees that if the Application is approved, it
shall be subject to the terms and conditions specified in the Standard Agreement, and that the
NOFA and Application will be incorporated in the Standard Agreement by reference and made a
part thereof. Any and all activities, expenditures, information, and timelines represented in the
Application are enforceable through the Standard Agreement. Funds are to be used for the
allowable expenditures and activities identified in the Standard Agreement.
SECTION 5. Ed Shikada, City Manager, or their designees, are authorized to execute the
Application and the Homekey Documents on behalf of Co-Applicant for participation in the
Homekey Program.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager
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