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HomeMy WebLinkAbout2026-01-13; City Council; 10; California Encampment Resolution Funding Grant Extensions and Related Professional Services AgreementsCA Review CDS Meeting Date: Jan. 13, 2026 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Mandy Mills, Housing & Homeless Services Director mandy.mills@carlsbadca.gov, 442-339-2907 Chris Shilling, Homeless Services Manager chris.shilling@carlsbadca.gov, 442-339-2284 Subject: California Encampment Resolution Funding Grant Extensions and Related Professional Services Agreements Districts: All Recommended Action 1)Adopt a resolution authorizing the City Manager to execute amendments with the California Department of Housing and Community Development to extend the terms of the ERF-2-R: Carlsbad Village and ERF-3-R: Village and Barrio grant agreements and related program documents; and 2)Adopt a resolution authorizing the City Manager to execute an amendment to extend the memorandum of agreement with the City of Oceanside for the ERF-3-R: SR-78 and Buena Vista Creek project; and 3)Adopt a resolution authorizing the City Manager to execute amendments to the professional services agreements with Community Resource Center, Whole Person Care Clinic, Interfaith Community Services and Catholic Charities Diocese of San Diego pertaining to all current Encampment Resolution Funding grants received by the State of California. Executive Summary The City of Carlsbad has received three grants through the California Department of Housing and Community Development’s Encampment Resolution Funding program, which provides funding to local governments to help people move from homeless encampments into safe, stable and permanent housing. At the time of award, statutory requirements required the grant funds to be fully spent within three fiscal years of the appropriation date. Subsequent state legislation has modified these requirements, extending the expenditure deadlines to three years from each grant’s award date. City Council authorization is required to allow the City Manager to execute amendments extending the terms of the grant agreements with the State of California, the memorandum of agreement with the City of Oceanside and related subrecipient agreements. No additional funding is associated with these extensions. Jan. 13, 2026 Item #10 Page 1 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Explanation & Analysis On June 30, 2025, the Governor of California enacted Assembly Bill 130, which revised the obligation and expenditure timelines for the Encampment Resolution Funding program. Under this legislation, the deadlines for when the grant funds must be fully spent are now calculated from the date of award rather than the date of appropriation. This change affects three grants currently administered by the City of Carlsbad: Grant Award date Original deadline Extended deadline ERF-2-R: Carlsbad Village 6/14/2023 6/30/2026 6/14/2027 ERF-3-R: SR-78 and Buena Vista Creek 4/18/2024 6/30/2027 4/18/2028 ERF-3-R: Village and Barrio 10/4/2024 6/30/2027 10/4/2028 ERF-2-R: Carlsbad Village • The city’s first Encampment Resolution funding grant was awarded on June 14, 2023, and approved by the City Council on July 11, 2023. • Under the original terms, the city was required to expend 50% of funds and obligate 100% of funds by June 30, 2024, with full expenditure required by June 30, 2026. The city has already met the 50% expenditure and 100% obligation requirements. • AB 130 extended the final expenditure deadline to June 14, 2027. This extension allows the program’s services to continue for approximately one additional year. • Staff anticipate sufficient funding to maintain the majority of services through the revised deadline. ERF-3-R: SR-78 and Buena Vista Creek (City of Oceanside Partnership) • The second Encampment Resolution funding grant is administered in partnership with the City of Oceanside. The City Council approved the memorandum of agreement with Oceanside on Aug. 27, 2024. • Oceanside staff anticipate receiving an amended agreement from the state in the coming months and intend to extend the memorandum of agreement with the City of Carlsbad accordingly, with a new completion date of April 18, 2028. • Staff expect to fully expend the funds by the revised deadline. ERF-3-R: Village and Barrio (Vehicular Homelessness Outreach Program) • The third Encampment Resolution funding grant supports the Vehicular Homelessness Outreach Program serving individuals and families living in vehicles in the Village, Barrio and Beach areas. The City Council authorized this agreement on Jan. 28, 2025. • The original expenditure deadline of June 30, 2027, has been extended to Oct. 4, 2028, under the revised state requirements. • Staff also expect to fully expend these funds by the revised deadline. Jan. 13, 2026 Item #10 Page 2 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Fiscal Analysis There is no fiscal impact associated with this item, and no additional appropriations are required. While the total grant award amounts remain unchanged, the extended expenditure timelines allow grant funds to be expended over additional fiscal years. These funds will be incorporated into future Homelessness Action Plan Funding Plans and reflected in the city’s annual operating budget as appropriate. Next Steps Upon City Council approval, the City Manager will execute the amended grant agreements with the California Department of Housing and Community Development and related program documents, the amended memorandum of agreement with the City of Oceanside and amendments to the professional services agreements with Catholic Charities Diocese of San Diego, Community Resource Center, Interfaith Community Services and Whole Person Care Clinic in compliance with any applicable 45-day noticing requirements, in accordance with Assembly Bill 339.1 Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to amend and extend grant agreements is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or the CEQA Guidelines. Exhibits 1. City Council resolution - California Department of Housing and Community Development Grant Agreements 2. City Council Resolution - City of Oceanside Memorandum of Agreement 3. City Council Resolution - Professional Services Agreements 4. Staff Report from July 11, 2023, City Council Meeting (on file in the Office of the City Clerk) 5. Staff Report from Aug. 27, 2024, City Council Meeting (on file in the Office of the City Clerk) 6. Staff Report from Jan. 28, 2025, City Council Meeting (on file in the Office of the City Clerk) 1 California Assembly Bill 339 (2025) is a new law that requires local public agencies to give at least 45 days' written notice to recognized employee organizations before issuing a request for proposals or renewing contracts for services that that are within the scope of work of the job classifications of the recognized employee organization. Jan. 13, 2026 Item #10 Page 3 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 1 RESOLUTION NO. 2026-007 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENTS WITH THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO EXTEND THE TERMS OF THE ERF-2-R: CARLSBAD VILLAGE AND ERF-3-R: VILLAGE AND BARRIO GRANT AGREEMENTS AND RELATED PROGRAM DOCUMENTS WHEREAS, the City of Carlsbad has been awarded Encampment Resolution Funding (ERF) grants from the California Department of Housing and Community Development (HCD), including ERF-2-R: Carlsbad Village and ERF-3-R: Village and Barrio; and WHEREAS, at the time of award, applicable state law required ERF grant funds to be fully expended within three fiscal years of the date of appropriation; and WHEREAS, on June 30, 2025, the Governor of California enacted Assembly Bill 130, which revised the obligation and expenditure deadlines for ERF grants to be calculated from the date of award rather than the date of appropriation; and WHEREAS, HCD has amended its ERF program requirements and grant agreements to reflect these revised timelines; and WHEREAS, City Council authorization is required to allow the City Manager to execute amendments to the ERF grant agreements and related program documents to align with the revised expenditure deadlines; and WHEREAS, these amendments do not increase the total amount of grant funding awarded to the city. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to amend and extend grant agreements is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or Jan. 13, 2026 Item #10 Page 4 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or CEQA Guidelines. 3.The City Council authorizes the City Manager, or designee, to execute amendments with the California Department of Housing and Community Development for the ERF-2-R: Carlsbad Village and ERF-3-R: Village and Barrio grant agreements and related program documents, in a form approved by the City Attorney, to extend the grant terms as required by the state and AB 130 (2025). 4.The City Manager is authorized to execute any non-substantive amendments or administrative documents necessary to carry out the intent of this resolution. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of January, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Jan. 13, 2026 Item #10 Page 5 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 2 RESOLUTION NO. 2026-008 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO EXTEND THE MEMORANDUM OF AGREEMENT WITH THE CITY OF OCEANSIDE FOR THE ERF-3-R: SR-78 AND BUENA VISTA CREEK PROJECT WHEREAS, the City of Carlsbad and the City of Oceanside entered into a Memorandum of Agreement to jointly implement the ERF-3-R: SR-78 and Buena Vista Creek Encampment Resolution Funding project; and WHEREAS, the City Council approved the memorandum of agreement with the City of Oceanside on August 27, 2024; and WHEREAS, subsequent state legislation enacted through Assembly Bill 130 revised the expenditure deadlines for Encampment Resolution Funding (ERF) grants; and WHEREAS, the revised deadlines require amendments to the existing memorandum of agreement to align the project completion timeline with the updated grant requirements; and WHEREAS, no additional funding will be awarded as a result of this amendment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the proposed action is not a “project” as defined by California Environmental Quality Act California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to amend and extend grant agreements is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or the CEQA Guidelines. 3.The City Council authorizes the City Manager, or designee, to execute an amendment to the memorandum of agreement with the City of Oceanside for the ERF-3-R: SR-78 and Buena Vista Creek project, in a form approved by the City Attorney, to extend the project Jan. 13, 2026 Item #10 Page 6 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 term as required by the State of California and the City of Oceanside with revised grant deadlines pursuant to AB 130 (2025). 4.The City Manager is authorized to execute any non-substantive amendments or administrative documents necessary to carry out the intent of this resolution. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of January, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Jan. 13, 2026 Item #10 Page 7 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 3 RESOLUTION NO. 2026-009 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENTS TO THE PROFESSIONAL SERVICES AGREEMENTS WITH COMMUNITY RESOURCE CENTER, WHOLE PERSON CARE CLINIC, INTERFAITH COMMUNITY SERVICES AND CATHOLIC CHARITIES DIOCESE OF SAN DIEGO PERTAINING TO ALL CURRENT ENCAMPMENT RESOLUTION FUNDING GRANTS RECEIVED BY THE STATE OF CALIFORNIA WHEREAS, the City of Carlsbad has entered into professional services agreements with Community Resource Center, Whole Person Care Clinic, Interfaith Community Services, and Catholic Charities Diocese of San Diego to provide outreach, case management, housing navigation, and related services funded through Encampment Resolution Funding (ERF) grants; and WHEREAS, these professional services agreements were executed in support of ERF grants awarded by the California Department of Housing and Community Development; and WHEREAS, Assembly Bill 130 revised the timelines for the obligation and expenditure of Encampment Resolution Funding grants; and WHEREAS, the extension of grant expenditure deadlines necessitates corresponding amendments to existing professional services agreements to allow continued delivery of services; and WHEREAS, these amendments do not increase the total contract amounts and are consistent with the existing scope of services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to amend and extend grant agreements is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or the CEQA Guidelines. Jan. 13, 2026 Item #10 Page 8 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 3.The City Council authorizes the City Manager, or designee, to execute amendments to the Professional Services Agreements with Community Resource Center, Whole Person Care Clinic, Interfaith Community Services and Catholic Charities Diocese of San Diego related to all current ERF grants, approved as to form by the City Attorney, to amend the contract terms consistent with the amended and applicable funding grants pursuant to AB 130 (2025) and in compliance with AB 339 (2025), if applicable. 4.The City Manager is authorized to execute any additional administrative or non- substantive amendments necessary to carry out the intent of this resolution. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of January, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Jan. 13, 2026 Item #10 Page 9 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 4 Staff Report from July 11, 2023, City Council Meeting (on file in the Office of the City Clerk) Jan. 13, 2026 Item #10 Page 10 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 5 Staff Report from Aug. 27, 2024, City Council Meeting (on file in the Office of the City Clerk) Jan. 13, 2026 Item #10 Page 11 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4 Exhibit 6 Staff Report from Jan. 28, 2025, City Council Meeting (on file in the Office of the City Clerk) Jan. 13, 2026 Item #10 Page 12 of 12 Docusign Envelope ID: BC36DE03-D3D4-4F26-8439-C4F67CF11AA4