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HomeMy WebLinkAbout2025-06-13; Amendment to the Professional Services Agreement with Community Resource Center for Supportive Housing Services (Districts All); Barberio, Gary Community Services Branch Housing & Homeless Services Department 1200 Carlsbad Village Drive  Carlsbad, CA 92008  442-339-2810 t To the members of the: CITY COUNCIL Date: 6-13-25 CA  CC  CM  ACM  DCM (3)  Council Memorandum June 13, 2025 To: Honorable Mayor Blackburn and Members of the City Council From: Gary Barberio, Deputy City Manager, Community Services Mandy Mills, Director of Housing & Homeless Services Chris Shilling, Homeless Services Manager Via: Sheila Cobian, Assistant City Manager Re: Amendment to the Professional Services Agreement with Community Resource Center for Supportive Housing Services (Districts All) This memorandum provides information regarding an existing Professional Services Agreement with Community Resource Center, or CRC, for Supportive Housing Services. The agreement, which the City Council approved in June 2024, included a budget allocating funds to 13 categories, including two operating costs categories and eight supportive services categories. The agreement requires the CRC to operate within the budget, but anticipates periodic adjustments to the budget allocations, in part to ensure the grant funding for the supportive services is fully expended. The agreement permits the City Manager or designee to reallocate unspent funds and permits the City Manager to make budget modifications depending on their value and nature. For the agreement year ending June 30, 2025, significant grants funds remain unexpended. It is staff’s intent that some of the unexpended grant funds be reallocated to transportation supportive services. This will allow for the purchase of an accessible vehicle to transport program participants, which is an eligible use of the funds. Background On June 25, 2024, the City Council approved a professional services agreement with CRC to administer a new supportive housing services program. The agreement is fully funded through a grant from the HUD Continuum of Care Program. There are no city General Fund dollars involved in this program. The program pairs rental assistance through the city’s rental assistance program with supportive services paid for by HUD for housing stabilization support. The support services help address individual needs and barriers to maintaining stable housing and assist clients in creating and achieving stabilization goals. Typical goals include accessing health care, therapeutic services, increasing income, budgeting or accessing in-home support for medical needs. Funds can also be used for mental health and substance abuse treatment services as needed. The agreement is nearing the end of the first program year. Significant unspent funds remain available for program expenditures as it took several months to enroll all eligible program Memo ID# 2025036 SU {city of Carlsbad Council Memo – Amendment to the Professional Services Agreement with Community Resource Center for Supportive Housing Services (Districts All) June 12, 2025 Page 2 participants. Any unused grant funds as of June 30, 2025, will not rollover to next fiscal year. City staff and CRC staff have discussed programmatic needs that could be accomplished by the end of the year utilizing the remaining funds. A one-time expenditure for the purchase of an accessible vehicle will improve the ability to transport participants in Carlsbad’s Supportive Housing Services program to eligible services for multiple years to come. The cost of purchasing or leasing a vehicle to transport participants in Carlsbad’s program is an eligible supportive services expenditure, but an amendment to the agreement to reallocate funds between supportive services budget categories is required. Amendment With eleven months already completed in the first year of the agreement, there are significant funds remaining in two of the budget line items. City staff had conversations with CRC about amending the current fiscal year agreement to move money to the transportation line item for CRC to be able to purchase a wheelchair accessible vehicle to transport clients of this Carlsbad program. The City Council approved professional services agreement authorizes the City Manager to execute an amendment to reallocate unspent funds if a portion of the fee payable has not been expended by the date of contract termination. Per HUD regulations (24 CFR 578.53(e)(15)(iii)), the “Transportation” line item allows for the cost of purchasing or leasing a vehicle to transport program participants. This action does not require an amendment to the city’s agreement with HUD as it does not change the funding categories already approved by HUD in the grant agreement. Next Steps An administrative amendment will be executed by the City Manager to reallocate unspent funds to provide for the purchase or lease of an accessible vehicle to assist with the transportation needs of participants in Carlsbad’s Supportive Housing Services program. cc: Geoff Patnoe, City Manager Cindie McMahon, City Attorney Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Zach Korach, Finance Director