TITLE
Recommendation to declare an ordinance amending Long Beach Municipal Code Section 2.84.170 to extend the temporary suspension of certain provisions of Title 2.84.100 for projects which address ongoing impacts caused by homelessness for one-year to July 23, 2024; read the first time and laid over to the next regular meeting of the City Council for final reading. (Citywide)
DISCUSSION
City staff requested the City Attorney’s Office to prepare the attached Ordinance amending Section 2.84.170 of the Long Beach Municipal Code (LBMC) to extend the expiration date of the temporary suspension of provisions that remove the single job order threshold of seven hundred fifty thousand dollars ($750,000) in an effort to renovate facilities and build free and affordable housing to combat the homelessness crisis.
According to the City of Long Beach’s (City) 2023 Point in Time Count, the City has approximately 3,447 people experiencing homelessness.
Homelessness has disproportionately impacted Black, Indigenous, and Pacific Islander Long Beach residents who are approximately three times more likely to experience homelessness than other populations. Black people comprise only 12 percent of the population of the City, but in the most recent homelessness count completed in January 2023, accounted for approximately 30 percent of people experiencing homelessness. Approximately 38 percent of people experiencing homelessness have experienced violence or trauma in their lives. The number of students experiencing homelessness has grown by approximately 2.5 percentage points since 2022.
The State of California's COVID-19 State of Emergency that provided resources to keep many Long Beach residents from falling into homelessness ended February 28, 2023. On January 10, 2023, the City Council adopted a Resolution proclaiming a homelessness emergency in Long Beach. The City took immediate action to create additional housing to shelter and support homeless residents and build the needed infrastructure to address public safety concerns due to homelessness, violence, and severe mental and physical health issues.
To protect the public safety, health and welfare within the City, on January 24, 2023, the City Council adopted an Ordinance amending the LBMC by adding Chapter 2.84.170 to temporarily suspend certain provisions of Chapter 2.84, which expired on the later of (i) one hundred eighty (180) days after the effective date of the Ordinance, or (ii) with respect to projects begun prior to such date but not yet complete, on the date of completion of such project. The temporary suspension lapsed on July 23, 2023, one hundred eighty (180) days after the effective date of the Ordinance, except for projects begun but not complete. The City Council has the discretion to further extend the expiration date of the temporary extension.
Previously on May 24, 2016, the City Council approved an amendment to LBMC Section 2.84 and adopted Ordinance ORD-16-0008 relating to Job Order Contracts (JOC). On November 16, 2021, the City Council approved an amendment to LBMC Section 2.84.100 and 2.84.110 to increase the per work order threshold to $750,000 and reduce the contractor performance to 15 percent.
The JOC project delivery system provides a significant benefit to the City, including faster completion of projects, cost savings, and reduced complexity of processes. The City uses the JOC program regularly for smaller construction projects like roof repairs, doorway replacements, tenant improvements, painting, park improvements, demolition, electrical maintenance, and other repairs including emergency requests. Adopted contractors are prequalified and enter into a competitively bid, fixed price, multi-year construction contract based on an established Construction Task Catalog for construction projects. The JOC program is used as a timely and cost-effective option for the delivery of renovation, repair, and minor construction projects.
In response to the State of California’s COVID-19 State of Emergency, the City applied for and received Project HomeKey funding and other homeless servicing grants to begin assisting residents falling into homelessness. Pursuant to LBMC 2.84.100, the JOC program can only be utilized for single job order projects that are less than $750,000. Due to the ongoing impacts caused by homelessness and the very stringent timelines required by grant funding from the State, City staff is requesting to extend the temporary removal of the single job order threshold to utilize the JOC program to expedite projects in response to the ongoing impacts caused by homelessness for one (1) additional year from July 23, 2023, the expiration date of the previous temporary suspension. This added authority will allow for a more efficient and timelier project delivery.
Projects required to respond to the ongoing impacts caused homelessness will include various tenant improvements required at recently purchased hotels, improvements required to quickly create additional emergency shelters, and other projects critical to increasing services for people experiencing homelessness.
This matter was reviewed by Principal Deputy City Attorney Vanessa S. Ibarra on September 18, 2023 and by Budget Management Officer Nader Kaamoush on September 15, 2023.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2023, to continue with utilizing the JOC program in response to the proclaimed local emergency caused by homelessness.
FISCAL IMPACT
The full fiscal impact is unknown at this time and will be based on the work required and projects implemented to respond to the homelessness crisis. Any project that will be moved forward through the JOC program that is not currently budgeted will only proceed at such time as appropriations have been approved by the City Council. This recommendation has a moderate staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Work on these projects will also likely impact other existing projects and may require staff reprioritization. The local job impact associated with this recommendation may have a positive impact on the local economy but is currently unknown.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER