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HomeMy WebLinkAboutStaff Report 3.J 12/01/2014DATE: TO FROM: Agenda Item #31 December 1, 2014 Honorable Mayor and Members of the City Council through City Manager Sue Castellucci, Housing s"-' C SUBJECT: An Ordinance (Second Reading) Authorizing Lease of Real Property Located at 1500 Petaluma Boulevard South, Petaluma, CA (APN: 019-210-012) to the Committee on the Shelterless (COTS) and Authorizing the City Manager to Execute the Lease and Related Documents RECOMMENDATION It is recommended that the City Council adopt the attached Ordinance Authorizing Lease of Real Property Located at 1500 Petaluma Boulevard South, Petaluma, CA (APN 019-210-012) to the Committee on the Shelterless (COTS) and Authorizing the City Manager to Execute the Lease and Related Documents. BACKGROUND On November 17, 2014, the City Council approved the first reading of an ordinance authorizing a lease of real property located at 1500 Petaluma Boulevard, South, Petaluma, CA (A.P.N. 019- 210-012) to the Committee on the Shelterless (COTS) and authorizing the City Manager to execute the lease and all related documents. The Council approved the ordinance by a vote of 7- 0. The recommended action provides for a second reading and adoption of the ordinance. The staff report for the first reading of this item at the November 17, 2014 Council meeting is provided for further background information. FINANCIAL IMPACTS In consideration of the fact that COTS is providing a valuable community service, the rent on the leased space is proposed to be $1.00 per year. Funding of their social service program relating to the family emergency housing and the minor rehabilitation will be provided by a private funder. ATTACHMENTS 1. Ordinance Staff Report of First Reading from November 17, 2014 City Council Meeting EFFECTIVE DATE OF ORDINANCE Introduced by ATTACEIMEN'I' #1 ORDINANCE NO. - N.C.S. Seconded by ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING A LEASE AGREEMENT, BETWEEN COMMITTEE ON THE SHELTERLESS, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("TENANT") AND THE CITY OF PETALUMA ("LANDLORD") FOR A PORTION OF IMPROVED REAL PROPERTY(APN 019-210-012) ("PREMISES"), 1500 BOULEVARD SOUTH PETALUMA, PETALUMA, CA, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE LEASE TRANSACTION WHEREAS, Section 46 of the Charter of the City of Petaluma requires that specified actions for the acquisition, sale, or lease of real property be taken by Ordinance; and, WHEREAS, Landlord owns in fee simple real property located at 1500 Boulevard South Petaluma, Petaluma, CA (Assessor's Parcel Number: 019-210-012), which has been improved with a building ("Property"); and WHEREAS, Landlord currently rents half of the Property to Petaluma People Services for performance of homeless prevention services, tenant landlord mediation and fair housing programs, but the other half of the Property, approximately 5,000 (five thousand) square feet, is vacant; and WHEREAS, currently, Tenant provides essential social and human services to the homeless community in Petaluma at the Mary Isaak Center, but due to restrictions at the Mary Isaak Center, is not able to offer emergency shelter to homeless families; and WHEREAS, Tenant desires to offer emergency shelter to homeless families, and the Landlord desires to provide a location at which the Tenant may offer such services, subject to the terms and conditions of the lease attached to and made a part of this ordinance as Exhibit A; and WHEREAS, the City Council finds this action qualifies for categorical exemption under the California Environmental Quality Act (CEQA) pursuant to Title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), sections 15061, 15301 because the project involves operation, repair, maintenance, permitting, leasing, licensing and minor alteration of an existing facility involving negligible or no expansion of use beyond that existing at the time of the City's determination, in that leasing to COTS about half or 5,000 square feet of the City owned property at 1500 Petaluma Boulevard South provision of emergency shelter services pursuant to the lease will not result in significant expansion of use of the property in terms of impacts on the property and the neighborhood beyond the current impacts of the PPSC services being offered on site.. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section l: The above recitals are true and correct and incorporated into this ordinance as findings of the City Council. Section 2: The City Council approves the lease, between the City of Petaluma as Landlord, and COTS, as Tenant, a copy of which is attached as Exhibit A. Section 3: On behalf of the City, the City Manager is authorized and directed to execute documents substantially in accordance with Exhibit A, as determined by the City Attorney, and all other documents reasonably necessary to complete the lease transaction. Section 4: If any section, subsection, sentence, clause, phrase or work of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 5: This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section b: The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. INTRODUCED and ordered posted this 171h day of November 2014. ADOPTED this _ day of , 2014 by the following vote: Ayes: Noes: None Abstain: None Absent: None David Glass, Mayor ATTEST: APPROVED AS TO FORM Claire Cooper, CMC, City Clerk Eric W. Donly, City Attorney 4 ATTACFIMENT #2 DATE: November 17, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Sue Castellucci, I-[ousing SUBJECT: An Ordinance Authorizing Lease of Real Property Located at 1500 Petaluma Boulevard South, Petaluma, CA (APN: 019-210-012) to the Committee on the Shelterless (COTS) and Authorizing the City Manager to Execute the Lease and Related Documents RECOMMENDATION It is recommended that the City Council adopt the attached an Ordinance Authorizing Lease of Real Property Located at 1500 Petaluma Boulevard South, Petaluma, CA (APN 019-210-012) to the Committee on the Shelterless (COTS) and Authorizing the City Manager to Execute the Lease and Related Documents. BACKGROUND The City of Petaluma has historically acted in partnership with local nonprofits to address the Council's goal of providing safe, decent, affordable housing for the community's low-income people. The Committee on the Shelterless provides essential social and human services to the homeless community in Petaluma. The property at 1500 Petaluma Blvd. South, which is owned by the City of Petaluma, was rehabilitated in 1990 to be used as Petaluma's Human Services Center. In 1991, Petaluma People Services Center and COTS both entered into leases to use the space for their programs and services. In 2011, COTS moved the Family Homeless Shelter to the Mary Isaak Center (MIC) to consolidate expenses for their homeless programs due to future funding shortages. However, in the process of moving the program to the MIC, COTS discovered that the California Housing and Community Development Department, the agency that helped fund the construction of the center, restricted the use of the second floor to family transitional housing. DISCUSSION Since the closure of the family homeless shelter, COTS has not had the resources to service homeless families in an emergency shelter. The families that need homeless shelter have been referred to the Catholic Charities Family Emergency Shelter in Santa Rosa, where they are placed on a waiting list. In entering into the attached lease, COTS can re -open the family shelter and provide needed shelter and services to homeless families in Petaluma. The lease term is for five years and rent is $1.00 per year. The direct benefits to the City and to the greater Community off -set that there is no income derived from the lease. COTS provides case management, essential services and support for over 500 unduplicated homeless single adults and for over 34 families. As well, COTS provides a safe shelter for homeless families to sleep and eat meals. The cost of maintenance on the portion of the building that COTS will use is the responsibility of COTS. In order to move into the space, COTS is also making minor alterations such as painting, installing new flooring, etc. Discounting the rent charged to COTS to below a market rate as proposed would typically make related improvement work carried out on the property subject to payment of prevailing wages. However, the work COTS plans to perform on the property may be exempt from prevailing wages so long as the services to be provided under the lease are emergency or transitional shelter and ancillary services and assistance to homeless adults and children and COTS provides not less than 50 percent of the total project costs (excluding lease costs) from nonpublic sources. The attached proposed lease agreement provides that improvement work done pursuant to the lease is subject to payment of prevailing wages unless COTS and the City agree in writing otherwise. Pursuant to the requirements of the California Environmental Quality Act (CEQA), Title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), sections 15061, 15301, the action qualifies for a categorical exemption because it involves operation, repair, maintenance, permitting, leasing, licensing and minor alteration of an existing facility involving negligible or no expansion of use beyond that existing at the time of the City's determination. Currently about half of the square footage of the City owned property at 1500 Petaluma Boulevard South are leased to PPSC for homeless prevention services, tenant landlord mediation and fair housing programs. Leasing the remaining half of the facilities (about 5,000 square feet) to COTS and authorization of minor rehabilitation and repair pursuant and provision of emergency shelter services to the lease will not result in significant expansion of use of the property in terms of impacts on the property and the neighborhood beyond the current impacts of the PPSC services being offered on site. FINANCIAL IMPACTS In consideration of the fact that COTS is providing a valuable community service as noted above, the rent on the leased space will be $1.00 per year. Funding of their social service program relating to the family emergency housing and the minor rehabilitation will be provided by a private funder. ATTACHMENTS 1. Ordinance 2. Lease 3. Memorandum of Lease