SR-301-004-01 (7)~~~ . .
~ ~;~yo, City Council Report
Santa Monica
City Council Meeting: July 25, 2006
Agenda Item: ~~
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community and Cultural Services
Subject: Lease Agreement with Ocean Park Community Center for the
SAMOSHEL facility at 505 Olympic Boulevard
Recommended Action
It is recommended that the City Council authorize the City Manager to negotiate and
execute a Lease Agreement with Ocean Park Community Center (OPCC) for the use of
the SAMOSHEL facility located at 505 Olympic Boulevard, with rent set at $1 annually
for a term beginning July 1, 2006 and ending September 30, 2008.
Executive Summary
The City owns SAMOSHEL, the homeless shelter located at 505 Olympic Boulevard.
Until 2005, the City granted funds to the Salvation Army to operate the facility, which
was provided rent free. The Salvation Army also obtained state and federal grants to
operate the program. In September 2005, operation of the program was transferred to
OPCC. To be eligible for Federal Emergency Shelter Grant funds distributed through
the State, the State is now requiring that OPCC provide proof of site control in the form
of a lease for the SAMOSHEL facility through September 30, 2008.
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Discussion
Background
The SAMOSHEL facility has served as an emergency homeless shelter since
construction was completed in 1994. The shelter is located on property owned by the
Big Blue Bus and serves approximately 500 clients each year. While the City of Santa
Monica owns the property, program operation and routine maintenance of the facility
have been contracted to non-profit grantee agencies -- originally the Salvation Army and
currently OPCC.
In September 2005, after 11 years of operating the SAMOSHEL and neighboring
SWASHLOCK programs for the City, the Salvation Army, with the City's consent,
transferred its contracts for the operation of the two programs to OPCC as the
organization felt it could no longer continue these programs. This transfer was intended
to continue critical homeless services with no disruption in services to homeless clients,
and to also foresee the need to streamline the relationship between three important
continuum of care programs at this location: the soon-to-be constructed OPCC Access
Center, SWASHLOCK and SAMOSHEL. For FY 2006/07, the City Council approved
$439,582 in Community Development Program grant funds for OPCC to operate the
SAMOSHEL program and facility.
Previously, the Salvation Army had obtained approximately $200,000 in Federal and
State grant funds to supplement the City grant funds for the operation of SAMOSHEL.
To replace these funds, OPCC has submitted an application to the State Department of
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Housing and Community Development for $200,000 in Federal Emergency Shelter
Grant funds. The State is now requiring that OPCC provide, in the form of a lease
agreement rather than a grantee operating agreement, proof of site control for the
SAMOSHEL facility through September 30, 2008. Staff recommends a lease
agre~ment for a term commencing retroactively on July 1, 2006 and terminating on
September 30, 2008 - for an annual rental amount of $1.00. The lease will include a
standard termination clause at the option of either party that will allow the parties to be
flexible as the City enters into a new Community Development Program grant funding
cycle in FY 2007/08.
The terms of the recommended lease are consistent with the proposed use of the
property as part of the Big Blue Bus Campus Expansion project. The property will
continue to operate at its current capacity and will not be affected physically or
programmatically by the construction of the adjacent Access Center/SWASHLOCK
facility.
Previous Council Actions
On June 21, 2006, the City Council approved the grant agreement with OPCC to
operate the SAMOSHEL program for a period of one year, ending June 30, 2007.
Budqet/Financial Impact
Approval of this agreement will not have any additional financial impact. The lease cost
to OPCC will be $1. Since the construction of SAMOSHEL, the City's General Fund has
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compensated the Big Blue Bus Fund for the use of the land, regardless of the facility
operator.
Prepared by:
Gigi Decavalles-Hughes, Senior Administrative Analyst
Approved:
Forwarded to Council:
,~ ~
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Barbara Stinchfield `'r
Director, Community and Cultural
Services
~l~~ont Ewell
i anaqer
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~r~ . .
~ ~;ty o, City Council Report
Santa Monica~
City Council Meeting: July 25, 2006
Agenda Item:~-" D
SUPPLEMENTAL STAFF REPORT TO ITEM 1 D
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community and Cultural Services
Subject: Supplemental Staff Report Regarding Lease Agreement Between the City
of Santa Monica and Ocean Park Community Center (OPCC) For
Purposes of Clarifying Rental Payments to Transportation Agencies
Recommended Action
This report provides additional information and clarifies the leasing relationship between
the Big Blue Bus fund, the City and OPCC. It does not change the recommendations of
the staff report (Item 1 D).
Executive Summary
The City owns the property at 505 Olympic, which was acquired for future transportation
uses by the Big Blue Bus fund with Transportation Development Act dollars. The
General Fund pays the Big Blue Bus fund for costs associated with non-transit use of
the land. This report clarifies that the Big Blue Bus fund is and will continue to be fully
compensated for use of the land until such time that the land will be needed for
transportation purposes, regardless of the City's leasing arrangement with non profit
providers, including OPCC.
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Discussion
The City owns SAMOSHEL, the homeless shelter located at 505 Olympic Boulevard.
The property on which the SAMOSHEL facility is located was purchased using
Transportation Development Act funds in 1992. To provide efficient use of the land until
the time it would be needed for transportation purposes, the City agreed to develop
temporary leasing relationships with non-profits, including social service agencies.
In 1993, the City provided a portion of the property to the Salvation Army for the
SWASHLOCK facility. In 1994, the City provided the remainder of the property, housing
the newly-constructed SAMOSHEL facility, to the Salvation Army. These were provided
rent-free to the Salvation Army. The lease cost of the total 505 Olympic property was
$42,500 per year, which was paid by the General Fund to the Big Blue Bus fund through
an internal financial transaction. Since the inception of the program, the City's General
Fund has made an annual payment to the Big Blue Bus Fund for these costs. This
year, the budget reflects an increase in this amount to $64,829 per year, based on an
appraisal conducted in 2005. An evaluation of whether this funding to the Big Blue Bus
should continue to occur in this manner or through direct grants to the non-profit
provider will occur within the context of the next Community Development grant cycle,
which reopens in January 2007.
Prepared by:
Gigi Decavalles-Hughes, Senior Administrative Analyst
Approved: Forward o uncil:
(X~ ~ -
Barbara Stinchfield P. L ont we -
Director, Community & Cultural Services Cit Manager
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