HomeMy WebLinkAboutStaff Report 14590
City of Palo Alto (ID # 14590)
City Council Staff Report
Meeting Date: 8/15/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Project Homekey: Authorize City Manager to Execute a State Standard
Agreement in the Event of Homekey Award; Adopt a Resolution Extending
the Declaration of Emergency Shelter Crisis; and Receive an Update on
Project Homekey Status and Provide Potential Direction to Staff
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager to execute a State Standard Agreement in the event of
Homekey grant award from the state of California;
2. Adopt a resolution extending the declaration of Emergency Shelter Crisis; and
3. Receive an update on project Homekey status and provide potential direction to staff.
Background
On September 27, 2021, the City Council adopted a series of actions which enabled staff to
prepare necessary materials with LifeMoves to submit an application to the State of California
Housing and Community Development Department for Homekey 2.0 to create an interim
housing shelter in Palo Alto. The City Council also adopted a resolution (Resolution No. 9994)
Declaring a Shelter Crisis for a period of one year to allow streamlining of local project
approvals. The City Council also took actions related to Palo Alto Homekey on November 1,
2021 and June 21, 2022.
The City’s Homekey application was delayed to a later round of Homekey awards, which are
anticipated to be announced in the near future. Once an announcement is made, the City and
LifeMoves will need to act quickly to complete construction within one year.
Discussion
Project Update
As of the printing of this report, the project status is that the City and LifeMoves anticipate
receiving a Homekey award, but are still awaiting formal announcement. Staff will provide
supplemental materials and status updates to the City Council at the meeting if any additional
details become available by the August 15 date. Staff is requesting City Council authority for the
City Manager to execute the Standard Agreement with the State in the event of a Homekey
City of Palo Alto Page 2
grant award. The timelines for project completion are tight; thus this early authorization would
be helpful to stay on track.
In the meantime, the project has been presented to the Architectural Review Board (ARB) and
received advice regarding design elements to factor into the project. The ARB meeting
materials are available online at:
- Agenda for July 21, 2022 Meeting
- Staff report to Architectural Review Board with develop plan links on page 12
The presentation to the ARB was for a courtesy review and did not require formal ARB
approval. Overall, the ARB was excited to see this project moving forward. Staff is working very
closely with LifeMoves to finalize the design elements based on the ARB feedback in addition to
departmental review in Palo Alto (as well as Mountain View since this project is on the
jurisdictional border).
In addition, Staff continues to work on a lease for the project site; while these discussions
continue, staff will execute a temporary Right of Entry Agreement allowing LifeMoves and its
contractors to begin work on the site. A formal lease will be presented to the City Council for
approval when ready, likely within the next six months.
Resolution Extending Shelter Crisis
The City Council adopted Resolution No. 9994 in September 2021, declaring an emergency
shelter crisis for a period of one year. This declaration allowed the City to take advantage of
certain statutory exemptions to CEQA in moving the project forward. The Council limited the
duration to one year, anticipating that the City would receive a decision on its Homekey
application within that time. Because review of the City’s application was delayed, however, it
is possible that the declaration of shelter crisis will expire before the Homekey project has
moved forward. Staff therefore recommend that the Council adopt the attached resolution
(Attachment A) extending the locally declared emergency shelter crisis.
More information about the resolution is here as also shared in the September 27, 2021 staff
report:
Government Code section 8698.4, subsection (a)(4) states “The California
Environmental Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) shall not apply to actions taken by a state agency or a
city, county, or city and county, to lease, convey, or encumber land owned by a
city, county, or city and county, or to facilitate the lease, conveyance, or
encumbrance of land owned by the local government for, or to provide financial
assistance to, a homeless shelter constructed or allowed by this section.” The
declaration of an emergency shelter crisis also permits cities to suspend local
procedures for emergency shelter projects.
Timeline, Resource Impact, Policy Implications
City of Palo Alto Page 3
No new resource impacts known at this time. The City is awaiting formal annoucement from
the State Department of Housing and Community Development regarding Palo Alto’s
application for Palo Alto Homekey. The Council has authorized financial support of $7 million
over seven years as part of the grant application which has been included as part of the
Councils’ adopted budget.
Stakeholder Engagement
Staff remains in close communication with stakeholders including the State Department of
Housing and Community Development, LifeMoves, Santa Clara County Office of Supportive
Housing, and Santa Clara County Housing Authority in regard to this project.
Environmental Review
Numerous state laws, including but not limited to AB 140 (2021) and AB 2553 (2020) have
exempted emergency shelter projects, and specifically projects funded by the Project Homekey
program, from the requirements of the California Environmental Quality Act. To the extent any
of the actions contemplated by the City Council in relation to this project are not covered by
these statutory exemptions, they are exempt pursuant to CEQA Guidelines Section 15269 as
actions to mitigate an emergency related to the unhoused population in Palo Alto.
Attachments:
• Attachment A: Resolution Extending Reso 9994, Declaring a Shelter Crisis
*NOT YET ADOPTED*
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0160083_20220714_ay16
Resolution No. ____
Resolution of the Council of the City of Palo Alto Extending Resolution No. 9994,
Declaring a Shelter Crisis
R E C I T A L S
A. On September 27, 2021, the City Council of the City of Palo Alto adopted Resolution No.
9994, declaring a Shelter Crisis pursuant to California Government Code Section 8698.4.
B. By its own terms, Resolution No. 9994 is effective for a period of one year from the date
of adoption, unless extended by the Council.
C. The conditions giving rise to the Declaration of Shelter Crisis in Resolution No. 9994 still
exist within the City of Palo Alto.
D. The Recitals set forth in Resolution No. 9994 are incorporated herein.
E. The City Council wishes to extend Resolution No. 9994 for a period of one year.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. This resolution shall repeal and replace Resolution No. 9994.
SECTION 2. The Council finds that a shelter crisis exists within the City of Palo Alto because a
significant number of Palo Alto residents are without the ability to obtain stable housing or
shelter, resulting in threats to their health and safety and for the reasons stated in the Recitals
above.
SECTION 3. The Council hereby declares a shelter crisis within the City of Palo Alto.
SECTION 4. This declaration of Shelter Crisis shall be effective until September 27, 2023 unless
extended by the City Council.
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*NOT YET ADOPTED*
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SECTION 5. The Council finds that the adoption of this resolution does not meet the definition
of a project under Public Resources Code Section 21065, thus, no environmental assessment
under the California Environmental Quality Act is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager