HomeMy WebLinkAboutNavigation Center Update PresentationNavigation Center Update
Concept History
Funding History
Procurement History
Current Design Proposal
Current Project Status
Anticipated Operation Costs
Alternative Paths Forward
Next Steps
1
Navigation Center Concept History
Initial Concept – October 27, 2022
•Multi-phase project
o Phase I: Interim Housing
Utilizes modular unit construction.
Part of the Implementation Plan (May 17, 2023).
o Phase II: Transitional Housing
Utilizes tiny homes (or similar).
Possible future expansion (never officially approved).
•Non-congregate
o Separate interim housing units (modular design).
o Provides privacy and dignity for the unsheltered.
•200-225 initial bed capacity
o Johnson vs Grants Pass & Martin vs Boise Rulings.
o Judge Carter settlements.
2
Navigation Center Concept History
Initial Phase I Concept: Interim Housing Units
3
Navigation Center Concept History
Possible Future Expansion with Phase II: Transitional Housing Units
4
Navigation Center Funding History
Secured Funding Sources Development
•ARPA (original construction allocation) $12,450,000
•ARPA (reallocation from operations) $4,500,000
•HOME-ARP $4,229,671
•CDBG $1,901,365
•HHAP3 Grant $808,358
Total Secured Development Funding $23,889,394
Additional Potential Funding
•Hospital donations $2,120,000
5
Navigation Center Funding History
Secured One-Time Funding Operations
•PLHA (2020-2023 Allocations) $4,300,000
Secured Future Annual Funding*
•General Fund (beginning FY 27/28) $2,000,000
Estimated Secured Future Annual Funding**
•Future Annual PLHA Allocations $1,000,000
•Future Annual CDBG Allocations $350,000
Total Future Annual Ongoing Funding $3,350,000
*Approved during September 2023 Strategic Initiatives Special Meeting.
** Future annual estimates are based on current annual allocations that are adjusted to
prioritize homelessness activities funding. CDBG limited due to HUD’s Public Service
cap and would be for “services” that augment operations.
6
Previous Administration’s Commitments
•Promised design-build award date: June 2024
•Promised project completion date: July 2025
Previous RFP
•Design-build
o Site & module design
o Modular procurement One contract, one price
o Site construction
•Adhered to Council’s approved concept
o Non-congregate interim housing units
o 200 total bed capacity
o In-unit bathrooms
o Individual air control and filtration systems
o Doors with locks for privacy
Navigation Center Procurement History
Previous Concept
7
Initial Cost Challenges
•Higher than anticipated construction costs.
o RFP Cap: $15 Million
o Internal Estimate: $15-19 Million
o Bid Result (1): $24,430,270 (Stick Built)
$28,941,960 (Modular)
The modular non-congregate interim housing units alone were
$13.4 million, without overhead (+ 8%) and profit (+ 4%).
Does not include: Design costs, site work, renovation of existing
School of Hope Buildings (administrative offices, kitchen, and
dining hall), Mechanical/Electrical/Plumbing, Contingencies, etc.
Unanswered Questions / Future Challenges
•Long-term operational costs for non-congregate
•Insurance costs for stick-built vs modular
Navigation Center Procurement History
Separate Line Items
from Design Build RFP Cost
Interim Housing Modulars $13,476,540
8% Total Overhead $1,072,000
(Adjusted for Modular Quote)
4% Total Profit $536,000
(Adjusted for Modular Quote)
Estimated Total
Actual Modular Cost $15,008,000
8
Cost of Modular Units from Previous RFP
Current Design Proposal
Hybrid Congregate Unit Design
•180 Congregate semi-private units with sliding
doors & communal bathrooms
•20 Non-Congregate units with in-unit bathrooms
Justification
•Reduced module costs
o $7.9 Million: Includes all hybrid congregate units, staff
offices, kitchen, dining area, etc.
o $13.4 Million: Non-congregate units only (initial bid results)
•Reduced long-term operational & security costs
•Current design is non-congregate in spirit
o Sliding privacy doors
o Privacy-height walls
o Side table/desk space/storage space
CONCEPT
Design To Be Produced After Contract Award
vs.
9
Current Design Proposal
Congregate (Buena Park Navigation Center)Congregate / Non-Congregate Hybrid (Concept)
Raised
Pony Walls
Larger Space
Privacy Sliding Doors
(To Be Added)
vs
10
Current Project Status
New RFP/Qs
•3 new RFP/Qs were released in the past 40 days:
o RFP for Modular Manufacture and Design Services
-RFP Cap: $14.5 million
-Bid Result (1): $8.8 million (Modules + Site Design)
o RFQ for Fee for Service Developer
-RFQ Cap: $1.2 million
-RFQ Proposals (5): $700,000 - $1,100,000
o RFQ for General Contractor (No Responses)
-RFP not yet released
-Estimated Amount: $5 - 6 million for site work
•Actions in the last 60 days
o Draft, Review, and Release 3 RFP/Qs
o Provide responses to bidder question/ Bid Conference
o Review and Interview Proposals / Responses
New Total Project Estimate: $15.9M
11
Anticipated Operation Costs
Overview
•City can choose to provide a flat operating
contribution annually and the selected operator is
to source or utilize existing Substance Abuse and
Mental Health Services Administration (SAMHSA)
funds, County Grants, CDRC/ORD funds, IST
Funds, endowment and state/local grants.
•City resources: HUD Emergency Shelter Grant
(ESG), Dept. of State Hospitals- IST funding, etc.
Partnership Exploration
And More…
12
Anticipated Operation Costs
The Reality of the Situation
•Current Operator Costs
o Estimated per person: $3,333 (per month).
o Estimated annual: $8 million for 200 beds.
•HUD Data
o Emergency shelter beds are approximately $8,067
more than the average annual cost of a federal
housing subsidy due to additional services.
o A recent HUD study found that the cost of providing
emergency shelter to families generally costs more
than transitional or permanent housing.
Not currently an option within the City.
Will be addressed in a future presentation of the
DRAFT Homeless Housing and Healthcare Action Plan.
Estimated Cost Summary for 100 Beds
Staff (8 FTEs Day + 1.5 FTEs Night)$ 790,000.00
Security $ 820,000.00
Utilities & Insurance $ 470,000.00
Meals (3x per Day)$ 1,130,000.00
Janitorial $ 315,000.00
Interior Maintenance $ 30,000.00
Exterior Maintenance $ 70,000.00
Bio/Hazmat/Pest Control $ 40,000.00
Legal $ 60,000.00
Compliance/Licensing/Audit $ 40,000.00
Administrative $ 235,000.00
Total for 100 beds $ 4,000,000.00
Per Person Per Month $ 3,333.33
Adjusted for 200 beds $ 8,000,000.00
13
Next Steps
The Road Ahead
Detailed Sources and Uses Budget with Vendor Comps.
Staff discussion for phasing out navigation center participants
enrollment by 100/100
Release Navigation Center RFP for Operator: Items for discussion
matching funds via county contract and resources.
City provides recommendations of the awardees to Council for
approval in November.
Engage Professional Services Agreement with Awardees by first
week of Dec.
Engage hard calendaring for timelines of City, Developer, Modular
Manufacture and Contractor.
Anticipated hurdles and engages resolution early.
Learn more about Modular: Schedule tour of modular
manufacture tours of fabrication facility (week of Oct. 28).
14
Alternative Paths Forward
Phased Approach
•Optional Downscale Phase I (Operating)
o Allows staff to gauge how many unsheltered
residents will utilize the facility.
o Allows staff to better absorb operational costs
without “breaking the bank.”
•Implement Phase II
o Potentially allows for a faster implementation
of Phase II: Transitional Housing.
Project Savings Estimate - $8.5M
o Original Low Bid: $24,430,270 (Stick Built)
o New Project Estimate: $15,900,000 (Modular)
15
Navigation Center Update
RECOMMENDATION
It is recommended that the Mayor and City Council of the City of San Bernardino,
California:
1.Receive a presentation and update on the City of San Bernardino Homeless
Navigation Center; and
2. Provide input to staff on the City’s operation plan of the homeless shelter.
Questions??
16