To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
STEPHANIE JOHNSON, QUALITY OF LIFE PROSECUTOR
TITLE
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APPROVE AN AMENDMENT TO THE LETTER OF AGREEMENT FOR FUNDING AND OPERATION OF THE REDONDO BEACH EMERGENCY HOMELESS SHELTER (PALLET SHELTER) FOR AN AMOUNT NOT TO EXCEED $145,927.74 AND THE TERM OCTOBER 1, 2026 TO MARCH 31, 2027
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EXECUTIVE SUMMARY
The Redondo Beach Pallet Shelter has been in operation since 2020. The attached Amendment to the Letter of Agreement (Amendment) is being presented to the Mayor and Council for approval to continue Pallet Shelter operations for another six months. On July 21, 2026, Council approved Resolution No. CC-2607-056, authorizing a budget modification to appropriate $198,126 in Permanent Local Housing Allocation funds (PLHA) from the California Department of Housing and Community Development. Redondo’s PLHA funds and possibly other grant sources will continue to supplement the City’s monthly contribution to the County for operational costs for the Pallet Shelter.
Supervisor Holly Mitchell and Health Net granted the City funding for capital costs to expand the pallet shelter. A new agreement for the operations of the expansion will be presented to Council for approval prior to the completion of the expansion.
BACKGROUND
On December 31, 2020, the City Council approved an LOA with Los Angeles County for the shared operational and human services costs of the Redondo Beach Pallet Shelter. This interim housing site provides people who are experiencing homelessness with a place to stay while they work to acclimate to a more structured lifestyle and secure permanent housing. On June 8, 2021, the City Council approved a first amendment to the LOA to extend the term of the Pallet Shelter for thirteen (13) months. On June 7, 2022, City Council approved a second amendment to the LOA to extend the term to September 30, 2022 to give staff time to explore grant funding to continue the operations of the Pallet Shelter. On August 9, 2022, the City Council extended the agreement to September 30, 2023. On September 19, 2023, the City Council extended the agreement another twelve months. The Fifth Amendment was approved by City Council on October 1, 2024 and extended the term an additional twelve months and lowered the City’s monthly contribution to $24,321.29. On October 7, 2025, City Council extended operations for six months through March 30, 2026. On June 9, 2026, City Council extended operations for six months through September 30, 2026. This Amendment extends the term of the agreement for an additional six months on the same terms and conditions through March 31, 2027.
The City has historically funded Pallet Shelter operating costs through external grant funding, specifically PLHA and CDBG-DV funds. The 2020 Congressional CARES Act provided additional funding allocations from the U.S. Department of Housing and Urban Development (HUD) to support programs and services that helped agencies respond to the COVID-19 pandemic. The City of Redondo Beach allocated these funds towards the City’s response to homeless services, including housing navigation and operations of the pallet shelter, both of which are eligible expenses. In total, the City has $150,705.93 available CDBG-CV funds, with $75,167.45 available for personnel expenses, and $75,538.48 available for operations of the Pallet Shelter.
The City will use PLHA allocations for Calendar Year (CY)22-23 totaling $198,126 to cover operational expenses for the pallet shelter for this next six-month term. The California Department of Housing and Community Development released its CY 2024-2028 Formula Allocations Notice of Funding Availability in July 2026. Redondo Beach will be eligible to apply for additional funds totaling $91,834 for CY24 and $98,368 for CY25, with an estimated five-year allocation amount of $573,963.
During the Fiscal Year 2023-2024 Budget Adoption Process, the City Council approved the expansion of the Pallet Shelter, estimated to cost $1,568,750 on the condition of identifying grant funding. Los Angeles County Supervisor Holly J. Mitchell granted the City $800,000 of District Two Homelessness funding and Health Net granted the City the remaining $768,750 for the expansion of the Redondo Beach Pallet Shelter.
The new operational budget after the expansion of the pallet shelter is still being developed by the Los Angeles County Department of Health Services and Los Angeles Chief Executive Office, Homelessness Initiative. A new amendment to the LOA will be presented to Council for approval prior to the completion of the pallet shelter expansion.
Staff recommends that the Mayor and Council approve the Amendment to the LOA to continue the current pallet shelter operations.
COORDINATION
The City Attorney's Office coordinated with County of Los Angeles in preparation of this Administrative Report.
FISCAL IMPACT
Operational costs will be funded by CDBG-CV and PLHA grants.
Submitted by:
Joy A. Ford, City Attorney
ATTACHMENTS
• Amendment to the LOA with Los Angeles County