SUBJECT
Title
AUTHORIZE AND APPROVE ACTIONS RELATED TO COMPASSIONATE EMERGENCY SOLUTIONS AND PATHWAYS TO HOUSING PROJECTS WHICH MAY INCLUDE ESTABLISHING APPROPRIATIONS, EXECUTING LEASE, CONTRACT AMENDMENTS FOR EMERGENCY HOUSING SITES, ADMINISTERING THE CONSTRUCTION MANAGER AT RISK CONTRACT AND RELATED CEQA EXEMPTIONS (DISTRICTS: ALL)
Body
OVERVIEW
On February 8, 2022 (14), the San Diego County Board of Supervisors (Board) approved the expansion of emergency housing options by implementing a plan for Compassionate Emergency Solutions and Pathways to Housing (CESPH) for people experiencing homelessness. The plan included leveraging and expanding the existing Regional Homeless Assistance Program (RHAP) as the primary emergency housing option for the unincorporated communities while other emergency housing options were being assessed and established. To address the need for emergency housing resources in the unincorporated areas of San Diego County and per the approved CESPH implementation plan, the County of San Diego (County) Health and Human Services Agency, Department of Homeless Solutions and Equitable Communities (HSEC) in partnership with the County Department of General Services (DGS), reviewed numerous properties for emergency housing solutions, including County-owned sites. Sites that were deemed viable were then further assessed based on the programmatic needs of people experiencing homelessness to ensure the sites were in locations that met their needs and would potentially substitute services provided through RHAP. As part of CESPH efforts, one safe parking site was opened in August 2022, and another is currently under construction and set to open in Summer 2024. Another site, Recreational Vehicle Senior and Family Parking is currently in the assessment and design phase.
On March 12, 2024 (18) the Board approved the Jamacha Sleeping Cabin site and authorized the acceptance of $10 million in funding from the State of California to offset the construction costs related to this site. Subsequently on June 25, 2024 (8), the Board rescinded approval of the Jamacha Sleeping Cabin site and directed the Chief Administrative Officer to explore and assess alternative homeless solutions in Spring Valley and surrounding communities, including the Troy Street site in Lemon Grove and return with recommendations to include an analysis of feasibility, cost and timeline to develop the Lemon Grove site as well as options for utilizing the funding previously allocated to Jamacha project.
Today’s item provides an update on actions related to CESPH and requests the Board direct the Chief Administrative Officer to pursue one of three proposed options. If Option A or B is selected, then the Board would also establish appropriations, authorize the design, development, and construction of the Troy Street Sleeping Cabin site. Under these options, today’s action also requests the Board amend a construction contract, approve a lease agreement with the State of California, Department of Transportation for the Troy Street Sleeping Cabin site, and find that these actions are exempt from the California Environmental Quality Act. Under Option C, today’s action will reallocate funding to RHAP to continue to serve people experiencing homelessness in the unincorporated communities.
Today’s action supports the County vision of a just, sustainable, and resilient future for all, specifically those communities and populations in San Diego County that have been historically left behind, as well as our ongoing commitment to the regional Live Well San Diego vision of healthy, safe, and thriving communities. This item also advances the County Framework for Ending Homelessness by ensuring our most vulnerable community members have access to housing, care coordination, and connections to more stable housing opportunities.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Receive the report including feasibility analysis of alternative emergency housing solutions and direct the Chief Administrative Officer to pursue one of the three proposed options to expand emergency housing in the unincorporated communities:
1.1. Option A: Authorize the Troy Street Sleeping Cabin site located at 2800 Sweetwater Road, Lemon Grove to proceed without State funding, while continuing to pursue the reallocation of State funds to offset construction costs through the grant agreement.
1.2. Option B: Authorize the Troy Street Sleeping Cabin site located at 2800 Sweetwater Road, Lemon Grove only if the State agrees to amend the grant agreement and provide funding to offset construction costs of the Troy Street site.
1.3. Option C: Reallocate all funding set aside for sleeping cabins as part of the Homeless Services portion of the American Rescue Plan Act (ARPA) Framework to the Regional Homeless Assistance Program (RHAP) to continue serving people experiencing homelessness in all unincorporated communities with emergency housing and cease the search process to establish sleeping cabins.
2. If Option A or B is selected, approve recommendations 2.1 through 2.6:
2.1. Find in accordance with Section 15061(b)(3) of the State of California Environmental Quality Act (CEQA) Guidelines that it can be seen with certainty that there is no possibility that establishing appropriations and amending the Compassionate Emergency Solutions and Pathways to Housing (CESPH) project contract may have a significant effect on the environment and is, therefore, exempt from CEQA.
2.2. Find that the proposed lease with the State of California, Department of Transportation (Caltrans) and the work proposed at the Troy Street Sleeping Cabins site are exempt from CEQA pursuant to State CEQA Guidelines sections 15301, 15303, 15304, 15311 and 15269(c).
2.3. Transfer appropriations of $11,100,000 within the Health and Human Services Agency (HHSA), Department of Homeless Solutions and Equitable Communities, from Services & Supplies to Operating Transfers Out to provide funding to the Major Maintenance Capital Outlay Fund for the Troy Street Sleeping Cabin site based on ARPA funding; and establish appropriations of $11,100,000 in the Major Maintenance Capital Outlay Fund for the Troy Street Sleeping Cabin site MMCOF Project 1026800, based on an Operating Transfer In from HHSA. (4 VOTES)
2.4. Approve and authorize the Director, Department of General Services (DGS), to execute a lease with Caltrans for the Troy Street Sleeping Cabin site located at 2800 Sweetwater Road, Lemon Grove, to exercise any options to extend the lease prior to its expiration, if appropriate, and to execute any amendments to the lease that do not increase the rent or extend the term.
2.5. In accordance with Board Policy A-87, Competitive Procurement and Administrative Code Section 401, authorize the Director, Department of Purchasing and Contracting, to enter into negotiations with Turner Construction, and upon successful negotiations and determination of a fair and reasonable price, amend contract #569169, to increase the Budget Not-to-Exceed amount to add the cost of developing the Troy Street Sleeping Cabins site, subject to the availability of funds; and to amend the contract as required to reflect changes to services and funding allocation, for the CESPH project.
2.6. Designate the Director, DGS, as the County of San Diego Officer responsible for administering the Construction Manager at Risk Contract (CMAR) Contract #569169 and authorize the Director, DGS to execute any and all documents necessary for the implementation of the CMAR contract.
EQUITY IMPACT STATEMENT
The 2024 Point-in-Time Count (PITC) of persons experiencing homelessness identified 10,605 individuals living on the streets or in San Diego County shelters on one night. Of this number, 6,110 individuals were reportedly unsheltered, approximately 44% of whom reported chronic homelessness, 28% were female, 9% were veterans, 2% were families, 8% were youth. Of those experiencing homelessness, 16% identified as Black, African, or African American, which is more than three times the proportion of African Americans in San Diego County; 2% identified as American Indian, which is double the proportion of American Indians in San Diego County. Of the 6,110 unsheltered individuals, over 200 were counted in the unincorporated areas of San Diego County.
The County of San Diego (County) Framework for Ending Homelessness (Framework) was created to provide a strategic path for ending homelessness in the county across five strategic domains and ensures an equitable approach to service delivery. Ensuring racial and social equity in all aspects of homelessness prevention and response is one of the key drivers guiding the Framework efforts. Securing equitable housing, supports, and funding will assist those who are at-risk of or experiencing homelessness throughout the region. The County has conducted lived experience forums in the North, East, and South Regions to gain valuable information on shaping programs and has implemented regular lived experience feedback questionnaires.
The County Health and Human Services Agency, Department of Homeless Solutions and Equitable Communities administers Compassionate Emergency Solutions and Pathways to Housing (CESPH) programs, which serve people experiencing homelessness in the unincorporated communities. It is anticipated that CESPH will provide needed housing and support to people across the unincorporated areas of San Diego County, including youth and those who are disproportionately represented in the homeless system, including people who are justice-involved, and people with a range of health and social needs, as well as Black, Indigenous and People of Color.
SUSTAINABILITY IMPACT STATEMENT
Today’s proposed actions support the County of San Diego (County) Sustainability Goal #1 to engage the community in meaningful ways and continually seek stakeholder input, Sustainability Goal #2 to provide just and equitable access to services and resources, and Sustainability Goal #4 to protect the health and well-being of everyone in the region. People at-risk of or experiencing homelessness, impacted community members, community partners, and other key stakeholders are engaged during the development of County plans to address homelessness and their feedback is valued and incorporated into the development of programs. Today’s actions related to the Compassionate Emergency Solutions and Pathways to Housing program support the most vulnerable community members in the unincorporated communities to have just and equitable access to housing, services, and resources. This includes ensuring access to and facilitating connections to health services and behavioral health support.
FISCAL IMPACT
All options assume the use of $41.8 million available in the Homeless Services section of the American Rescue Plan Act (ARPA) Framework for operating costs of the Regional Homeless Assistance Program (RHAP) and construction and operating costs of sleeping cabins. This amount represents the use of ARPA funds and General Purpose Revenue earmarked through the previously approved ARPA revenue loss strategy, and is inclusive of the $8.5 million in ARPA funds initially allocated for construction of the Jamacha Sleeping Cabin site. Under all options listed in Recommendation 1, sufficient funds are available for construction costs of the Troy Street Sleeping Cabin site and operating costs of RHAP through Fiscal Year (FY) 2025-26. The selection of option A, B, or C determines the one-time ARPA balance available for operational funding beginning in FY 2026-27 and the remaining gap where funding for ongoing operations would still need to be identified.
Operating costs for FY 2026-27 are estimated at $13.8 million annually for options A and B, and $15 million annually for option C. Under Option A, approximately $13.1 million of additional funding would need to be identified to fully offset operational costs in FY 2026-27. Under Option B, approximately $8.4 million would need to be identified. Under the RHAP only model in Option C, the FY 2026-27 funding gap drops to $3.2 million given there are no upfront construction costs. For operating costs starting in FY 2026-27, the Department will monitor and incorporate in future operational plans as funding becomes available. Details of each recommendation is provided below and a funding summary is included in Attachment B.
Troy Street Sleeping Cabins Recommendation 1 Options A or B and Recommendation 2
One-Time Construction Costs
Funds for this request are included in the Fiscal Year 2024-26 Operational Plan for Health and Human Services Agency (HHSA) and are not included in the FY 2024-25 Operational Plan in the Major Maintenance Capital Outlay Fund (MMCOF) for the Troy Street Sleeping Cabins MMCOF Project 1026800. If approved, today’s actions will result in an increase of appropriations in the MMCOF for estimated one-time design and construction costs and revenues of up to $11.1 million in FY 2024-25. The funding source is an Operating Transfer In from HHSA based on ARPA funds offset by any additional State funding made available. At this time, there will be no change in net General Fund cost and no additional staff years.
Ongoing Operating Costs
Under options A and B, RHAP would continue at $15 million annually for 250 beds through FY 2025-26 and reduce to 180 beds beginning in FY 2026-27 once the Troy Street Sleeping Cabins are operational. The estimated operating costs for FY 2026-27 are $13.8 million ($10.8 million for RHAP and $3 million for sleeping cabins). The selection of either option A or B impacts necessary operational funding to continue programming through FY 2026-27 depending on available State funding for Troy Street. The balance necessary to fund FY 2026-27 operating costs is anticipated to range from $8.4 million to $13.1 million depending on whether State funding is received to offset sleeping cabin construction costs. At this time, there will be no change in net General Fund cost and no additional staff years.
Reallocation of funding to the Regional Homeless Assistance Program Option C
There are no one-time construction costs under this option. Funds for operating costs of RHAP are included in the Fiscal Year 2024-26 Operational Plan for Health and Human Services Agency. If approved, today’s action will result in costs and revenues of $15 million annually in FY 2024-25 and FY 2025-26. There will be no change in net General Fund cost and no additional staff years. Annual costs of $15 million would continue forward into FY 2026-27. It is estimated that $3.2 million of funding would need to be identified to fully fund operations in FY 2026-27.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
The San Diego County Board of Supervisors (Board) has demonstrated a strong commitment to addressing the needs of people at risk of or experiencing homelessness in the region. On November 2, 2021 (4), the Board adopted the County of San Diego (County) Framework for Ending Homelessness (Framework) to maximize existing and future regional work on homelessness and to create a unified strategic approach to support the coordination of homeless services and funding. The Framework encompasses the County ongoing work and provides a vision to support forward, collaborative, and impactful progress. The five strategic domains within the Framework include: 1) Root Cause and Upstream Prevention; 2) Diversion and Mitigation; 3) Services, Treatment and Outreach; 4) Emergency/Interim Housing and Resources; and 5) Permanent Housing and Support. Actions included in today’s item fall under the Framework Emergency/Interim Housing and Resources domain. These efforts are geared toward ensuring people experiencing homelessness in the unincorporated areas of San Diego County have access to critical emergency housing options and supportive services to ultimately transition into permanent housing.
The County Health and Human Services Agency, Department of Homeless Solutions and Equitable Communities (HSEC) and County Department of General Services (DGS) staff have completed a feasibility analysis of alternative emergency housing options. HSEC and DGS staff also participated in the July 2, 2024, community meeting, hosted by Chairwoman Nora Vargas where additional input was gathered from community members on emergency housing options in Spring Valley. Staff narrowed the analysis down to three proposed options (A, B, and C).
Options A and B (Pursue Troy Street Sleeping Cabins project):
On October 19, 2021 (15) and February 8, 2022 (14), the Board approved recommendations to advance Compassionate Emergency Solutions and Pathways to Housing (CESPH) efforts for people experiencing homelessness. HSEC, in partnership with DGS, actively engaged in efforts to move viable sites forward to assist people experiencing homelessness in the unincorporated areas of San Diego County. As part of CESPH efforts, one safe parking site was opened in August 2022, and another is currently under construction and set to open in Summer 2024. Another site, Recreational Vehicle Senior and Family Parking is currently in the assessment and design phase.
In March 2023, Governor Gavin Newsom, in partnership with County leadership, announced that the County would receive resources to establish a sleeping cabin shelter. As part of this effort, the County considered two sites, Jamacha and Troy Street. On March 12, 2024 (18), the Board approved the Jamacha Sleeping Cabin site as the more viable site and authorized the acceptance of $10 million in funding from the State of California to offset the construction costs related to this site. On June 25, 2024 (8), the Board rescinded the approval and directed the Chief Administrative Officer to explore and assess alternative homeless solutions in Spring Valley and surrounding communities, including the Troy Street site in Lemon Grove and return with recommendations to include an analysis of feasibility, cost and timeline to develop the Lemon Grove site as well as options for utilizing the funding previously allocated to Jamacha project.
HSEC and DGS staff had previously completed an assessment of alternative homeless solutions sites in Spring Valley and adjacent communities. Staff identified 28 sites, including the State of California, Department of Transportation-owned (Caltrans) Troy Street property located on the corner of Troy Street and Sweetwater Road in Lemon Grove. DGS screening criteria factored in site characteristics, constraints, and conditions, such as floodplain, traffic, safety, and/or sensitive habitat. HSEC screening criteria include assessment of needs based on the unsheltered population in the area, access to public transit, services, local resources, and other contributing factors, such as feedback from the jurisdiction the site is located in. The site screening ruled out the majority of the sites for various reasons and narrowed down the Troy Street property as a feasible site for homeless solutions.
The Troy Street site is smaller and steeper than the Jamacha site and can accommodate approximately 70 sleeping cabins. As part of prior planning efforts, the County completed an initial assessment and due diligence report for Troy Street and deemed it to be a viable site for sleeping cabins. The County has completed a rough order of magnitude estimate by comparing 10 sleeping cabin sites in Los Angeles, one sleeping cabin site in the City of Chula Vista, and an estimate for the Jamacha site and adjusting their costs for differences such as number of cabins and price inflation. The initial rough order of magnitude cost assessment indicates the one-time design and construction costs for Troy Street will cost approximately $11.1 million, which includes 70 sleeping cabins and supporting service space, such as offices, storage, and restrooms. On a per cabin basis, the cost estimate of Troy Street is higher than that for Jamacha due to additional cost inflation, smaller scale, more earthwork, and additional cost data obtained since the estimate was done for Jamacha.
The timeline to complete this site is estimated at 24 months, provided that the County provides the project’s development permits. Since this project is exempt from the County Zoning Ordinance, permitting through the County would only require a building permit. Building permits take approximately one to two months to obtain and are ministerial permits requiring no environmental review. The project will also require a Local Agency Formation Commission action to make the parcel part of the San Diego County Sanitation District’s jurisdiction. This will allow the project to connect to the nearest sewer main owned by the County Sanitation District. Additionally, Caltrans requires an encroachment permit before construction can begin, which can be obtained concurrently with the building permit.
Staff estimates this site’s ongoing operational costs at approximately $3 million per year, which will include 24-hour site management and security services, case management including behavioral health supports, housing navigation, meals, transportation, site maintenance, and hygiene facilities. This site is anticipated to serve 140 individuals annually. This analysis assumes an average stay of 180 days based on the data collected from the last two years of operations of the Regional Homeless Assistance Program (RHAP) (2022 and 2023).
Options A and B propose the Troy Street Sleeping Cabin site project to move forward in partnership with the 180-bed RHAP once the sleeping cabins are established. However, Option A proposes that the Troy Street Sleeping Cabin site move forward without State funding, but continuing to pursue it, whereas Option B proposes the Troy Street Sleeping Cabins project move forward only if State funding is still available to offset the construction cost. At this time, the County has not received information indicating the State is willing to amend the agreement.
Option C (Reallocate funding previously set aside for sleeping cabins to RHAP and cease the search process for sleeping cabin sites):
The 2024 Point-In-Time Count identified over 200 people experiencing homelessness in the unincorporated areas of the county. HSEC is the primary County entity responsible for homeless outreach, case management, emergency housing, and permanently housing people experiencing homelessness in the unincorporated communities. HSEC partners with the County Sheriff’s Department Homeless Assistance Resource Team as well as community non-profit organizations to deliver coordinated services to meet the needs of people experiencing homelessness.
HSEC currently leverages RHAP as the primary emergency housing option for people experiencing homelessness in the unincorporated communities. RHAP is an emergency housing program that supports people experiencing homelessness by sheltering them in local participating hotels or motels. This program was approved by the Board on May 19, 2020 (17). On February 8, 2022 (14), the Board approved RHAP to continue as the only emergency housing option for the unincorporated communities while CESPH projects were being implemented. On March 12, 2024 (19), the Board approved the new procurement for RHAP. The RHAP scattered site design leveraging multiple hotels or motels countywide has proven effective in supporting program recipients. The broad geographic coverage enables people to take shelter in hotels or motels while remaining near their existing natural supports.
Since 2020, RHAP has been funded through a combination of County and other one-time funds including the State Project Room Key, federal Emergency Solutions Grant, and the American Rescue Plan Act (ARPA). On February 27, 2024 (11), the Board approved ARPA funding for the operational costs of RHAP through FY 2025-26. In its current capacity, RHAP serves 250 households on any given night. It was anticipated that implementing CESPH would reduce the utilization, and therefore the cost and capacity of RHAP in the future. Staff analyzed RHAP as the alternative emergency housing solution to a shelter and Option C proposes funding previously allocated to the sleeping cabin projects be reallocated to RHAP to continue operating in its current capacity, serving people in all unincorporated communities including the Spring Valley community. If all the funding is reallocated to RHAP, the search process for a sleeping cabin site would no longer continue.
All three proposed options will primarily serve people in the unincorporated communities, including the Spring Valley community. If the Board approves Options A or B, which would move the Troy Street Sleeping Cabin site project forward, it is anticipated that the capacity and cost of RHAP will be reduced by almost 30%. In this reduced capacity, the RHAP scattered site model would continue, serving an estimated 180 households on any given night.
Today’s item provides an update on actions related to CESPH and requests the Board direct the Chief Administrative Officer to pursue one of three proposed options. If Option A or B is selected, then the Board would also establish appropriations, authorize the design, development, and construction of the Troy Street Sleeping Cabin site. Under these options, today’s action also requests the Board amend a construction contract, approve a lease agreement with the State of California, Department of Transportation for the Troy Street Sleeping Cabin site, and find that these actions are exempt from the California Environmental Quality Act. Option C will reallocate funding to RHAP to continue to serve people experiencing homelessness in the unincorporated communities.
ENVIRONMENTAL STATEMENT
Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is exempt from CEQA. Today’s action to establish appropriations and approve the amendment of a construction contract for the Compassionate Emergency Solutions and Pathways to Housing (CESPH) project are administrative and do not relate to impacts on the environment.
Today’s actions authorize the Director of the Department of General Services (DGS) to execute a lease with the State of California, Department of Transportation (Caltrans) and take any action needed to design, develop, and construct the Troy Street Sleeping Cabins. This project is statutorily exempt from environmental review pursuant to Section 15269(c) because it is a specific action necessary to prevent or mitigate San Diego County’s shelter crisis, as declared by the San Diego County Board of Supervisors (Board) on September 11, 2018 (6), along with declaring homelessness a public health crisis on September 27, 2022 (21). Additionally, the City of Lemon Grove declared an emergency shelter crisis on July 18, 2023 (4). Together, the unexpected and dramatic increase in homelessness without the ability to obtain shelter, exacerbated by the COVID-19 pandemic, risks of communicable disease, and recent flooding events, is an emergency in unincorporated San Diego County.
Between 2022 to 2023, San Diego County saw a 20% increase in homelessness. Furthermore, data from the Homeless Management Information System (October 2022 to September 2023) published by the Regional Task Force on Homelessness found that, on average, for every 10 persons that find housing, 16 new persons experience homelessness. This situation presents documented dangers to health, life, and property and a burden on, and loss of access to, essential public services, which presents as an emergency, as defined by CEQA. The health and safety of unsheltered persons in the unincorporated area of San Diego County are threatened by a lack of shelter. The project is necessary to avoid and prevent the emergency by providing shelter and services to occupants of the shelter that are experiencing homelessness, and by facilitating their transition from homelessness to this shelter, and then on to long-term housing. The Troy Sleeping Cabins site is a critical short-term project that will address the high-risk issues facing people experiencing homelessness. The project, therefore, is statutorily exempt from CEQA under Public Resources Code, Section 21080(b)(4), as a specific action necessary to prevent or mitigate an emergency, and as reflected in Article 18 of the Sate CEQA Guidelines, Section 15269(c) because it prevents and mitigates such imminent loss and damage.
Today’s actions authorizing the Director of DGS to execute a lease with Caltrans and take any action needed to design, develop, and construct the Troy Street Sleeping Cabins site, are also categorically exempt from environmental review pursuant to Sections 15301, 15303, 15304, and 15311 of the CEQA Guidelines. Exemptions are due to involvement of demolition and removal of existing fencing, exterior alterations to existing utility lines including street improvements, minor alterations to land including minor grading, installation of sleeping cabins, minor utility extensions (e.g., electrical, water, and sewer), irrigation lines, and pavement improvements, accessory structures, including privacy fencing with pedestrian and vehicle entry gates, security lighting, administrative trailers, security stand, and restrooms and hand washing stations, considered appurtenant to the Troy Street Sleeping Cabins site. Additionally, the project site is not considered environmentally sensitive. There would not be successive projects of the same type in the same place that would result in cumulative impacts, no unusual circumstances that create the reasonable possibility of significant effects, no impacts to scenic resources, the site is not identified as being affected by hazardous wastes or clean-up problems, and would not cause a substantial adverse change in the significance of a historical resource.
Meaningful CEQA review for future CESPH project sites cannot be completed at this stage as the project and design have not been established for future sites that are yet to be identified. Any future changes to site properties that may result in direct or indirect physical changes in the environment will be contingent upon CEQA compliance once proposed.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s actions support the County of San Diego 2024-2029 Strategic Plan initiatives of Sustainability (Resiliency), Equity (Economic Opportunity), and Community (Quality of Life) by continuing to provide low barrier housing options and resources for anyone experiencing or at-risk of experiencing homelessness, which also supports improved quality of life and economic opportunity within the community.
Respectfully submitted,
Ebony N. shelton
Chief Administrative Officer
ATTACHMENT(S)
Attachment A - Notice of Exemption
Attachment B - Recommended Options A, B, and C