Advancing the City’s efforts in addressing homelessness incorporates implementation of the City’s 2021 Comprehensive Strategic Plan to Address Homelessness (CSPAH), which serves as a five-year roadmap to identify pathways to connect homeless individuals to resources and programs. The table below details action items implemented since approval of the initial Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster executed earlier in June 2022.

In June 2022, the City Council approved a Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster to jointly collaborate towards development of a navigation center. Negotiations of the comprehensive MOU by the three participating Central Service Planning Area (C-SPA) cities that include operational guidance and funding contributions are finalized and presented this evening.

For consideration, the comprehensive MOU outlines the fundamentals of a collaborative partnership that contains both programmatic, operational criteria and fiscal components that will provide substantial benefit to the three cities. This partnership will enhance regional efforts to address homelessness in Garden Grove, Fountain Valley and Westminster, collectively within the Central Service Planning Area. The comprehensive MOU, once executed by the Parties, promotes partnership in the financial and operational areas, while securing a regionally competitive priority within the Central SPA for future funding opportunities.

Serving as the Host City, Garden Grove will administer responsibilities associated with property acquisition and construction/build-out of the future Central Cities Navigation Center in partnership with Fountain Valley and Westminster. The Cost Allocation Plan outlined in the comprehensive MOU are described in two parts for (1) acquisition/construction and (2) annual operations:

Additional provisions of the comprehensive MOU incorporate the following:

• Terms: The term of the MOU identifies a construction period, then a 10-year operation/program period with options for two consecutive five (5) year extensions.

• Guest Capacity: The initial program anticipates guest capacity of 85 beds with capacity of up to an additional 15 Temporary Emergency Beds for a collectively total of up to 100 beds.

• Start-up Costs: The Acquisition, Due Diligence and Administrative Program Costs would be deposited by October 31, 2022 to coincide with an anticipated escrow closing on November 1, 2022.

• Annual Program Funding: The Operation Program Costs funds will deposited annually, to be administered by a Program Treasurer designated by the Parties.

• Annual Report and Audit: The preparation of an Annual Report and an Annual Audit detailing: goals and objectives; guest capacity; operating plan; and review of the Cost Allocation Plan.

• Real Property: Should operations of the Central Cities Navigation Center cease, the disposition of real property shall take place with proceeds to be redistributed, in the original pro-rata share to the Parties.

• Termination: The termination provision by an individual party would require payment of 5X the annual Operation Program Costs.

Next steps anticipate the following:

• October 2022: Release a Request for Proposal (RFP) for a Service Provider for the future Central Cities Navigation Center. The Service Provider shall oversee navigation center operations including: staffing, security, transportation, and employment and housing navigation support.

• November 2022: Finalize MOU negotiations with the County of Orange.

• December 2022: Complete preparation of construction (80%) drawings.

• January 2022: Release an invitation for bids for construction of the Central Cities Navigation Center.

Status of Property Acquisition

Following Council approval of the Purchase Agreement for the property in September 2022, the Seller and current property owner (West St Investment LLC) of 13871 West Street has requested an accelerated escrow closing due to identification of an available exchange property. To that end, Seller further requested a short-term leaseback of 13871 West Street for 3-6 month period to provide for transition of their business operations to the new location. Total leasable building space is 11,376 square feet and staff has negotiated market rent of $1.50 per square or total of $17,064 monthly for the temporary lease. This allows for the building to remain occupied while design work is underway.

In closing, staff is requesting Council approval of the comprehensive MOU with the Cities of Fountain Valley and Westminster to advance construction of a navigation center, and concurrently approve of an interim Lease Agreement with West St Investment LLC.

Funds have been budgeted in the Biennial Budget for FY 2021-2022 and FY 2022-2023 for the Navigation Center project. Proceeds from the interim Lease Rent shall be deposited into the new Escrow Account established for the Central Cities Navigation Center.

It is recommended that the City Council:

• Approve the comprehensive MOU with the Cities of Fountain Valley and Westminster;

• Approve an interim Lease Agreement with West St Investments LLC; and

• Authorize the City Manager to execute all documents on behalf of the City, and make minor modifications thereto as needed.