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Home My WebLink About10819ORDINANCE NO. 10819 AN EMERGENCY ORDINANCE APPROVING A SUBRECIPIENT AGREEMENT BY AND BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO RESCUE MISSION, A COLORADO NONPROFIT CORPORATION FOR THE OPERATION OF A HOMELESS SHELTER, AND ACCEPTING THE TRANSFER OF CERTAIN TH REAL PROPERTY LOCATED AT 710 W. 4 STREET AND 728 TH W. 4 STREET TO THE CITY WHEREAS, there exists a need for the operation of a permanent homeless shelter in the City of Pueblo; and WHEREAS, there exists a need for the operation of an emergency warming shelter during extreme cold weather events in the City of Pueblo; and WHEREAS, the Pueblo Rescue Mission, a nonprofit corporation has notified the community that its closure is imminent leaving hundreds of unhoused without shelter or services; and WHEREAS, the immediate provision of shelter and basic services is necessary to protect the health and safety of the unhoused population; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Subrecipient Agreement between the City of Pueblo, a Colorado Municipal Corporation and the Pueblo Rescue Mission, a Colorado nonprofit corporation, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The City accepts the transfer by Quit Claim Deeds, copies of which are attached hereto, having been approved as to form by the City Attorney, certain real property located at 710 W. thth 4 Street, Pueblo, Colorado and 728 W. 4 Street, Pueblo, Colorado. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 4. If any section, paragraph, clause, or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 5. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 15, 2024. Final adoption of Ordinance by City Council on October 15, 2024. ____________________________ President of City Council Action by the Mayor: Approved on _______________. Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ____________, on _____________ ____________________________ President of City Council ATTEST ________________________________ Deputy City Clerk City Clerk's Office Item # S2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 15, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Scott Hobson, Acting Director Planning and Community Development SUBJECT: AN EMERGENCY ORDINANCE APPROVING A SUBRECIPIENT AGREEMENT BY AND BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO RESCUE MISSION, A COLORADO NONPROFIT CORPORATION FOR THE OPERATION OF A HOMELESS SHELTER, AND ACCEPTING THE TH TRANSFER OF CERTAIN REAL PROPERTY LOCATED AT 710 W. 4 TH STREET AND 728 W. 4 STREET TO THE CITY SUMMARY: This Emergency Ordinance approves a Subrecipient Agreement with the Pueblo Rescue Mission for the operation of a homeless shelter and accepts the transfer of thth certain real property located at 710 W. 4 Street and 728 W. 4 Street to the City. PREVIOUS COUNCIL ACTION: et, Ordinance 10608, November 27, 2023. BACKGROUND: On October 25, 2023, the City entered into a Subrecipient Agreement with the Pueblo Rescue Mission by which Subrecipient executed a Promissory Note in favor of the City th $365,000 to Subrecipient for the purchase of real property located at 710 W. 4 Street, and later disbursed for repairs and improvements to the Property. The Pueblo Rescue Mission breached the Subrecipient Agreement and therefore, the City terminated the prior Subrecipient Agreement on July 19, 2024. The Pueblo Rescue Mission is transferring the 710 Property back to the City pursuant to the terms of the prior Subrecipient Agreement. On October 2, 2024, the Pueblo Rescue Mission notified the City and other community partners of its intention to dissolve and cease operations no later than December 31, 2024. It represented that its available funds will be exhausted in approximately two months. The Pueblo Rescue Mission is the only full-time homeless shelter in the City of Pueblo. Closure of the shelter will leave hundreds of unhoused individuals without shelter during a time of year when the weather is turning substantially colder. To avoid the dire consequences associated with the immediate closure of the Pueblo Rescue Mission, this Emergency Ordinance will allow the City to take ownership of the 710 Property as well as the other property owned by the Pueblo Rescue Mission at 728 th W. 4 The 710 Property is valued at $365,000 based upon the amount paid to purchase the building in October 2023. The 728 Property is valued at $120,339 base Pursuant to the new Subrecipient Agreement, the City will pay for all utilities, repair, and maintenance for both buildings. The Pueblo Rescue Mission will continue to employ staff to operate the shelters while the City seeks a new contractor to operate the Upon submission of certified payroll reports, the City may reimburse the Pueblo Rescue Mission for payroll should it lack sufficient funds to meet that obligation. The City will provide operational and fiscal oversight of the Pueblo Rescue Mission until termination of the Subrecipient Agreement. The term of the Subrecipient Agreement is from October 15, 2024, until December 31, 2024, but can be extended upon agreement of the parties if necessary. FINANCIAL IMPLICATIONS: The estimated operation costs, including salaries, for the Pueblo Rescue Mission is $30,000 per month. The City will also pay outstanding sewer repair fees in the amount of $23,021.78 directly to the contractor completing the repairs. Funds to pay these expenses are available from the 2024 HOME funds, the City is required to provide a grant match of $176,620.00. The match can be made in cash or cash equivalent. Through the donation of land and reduction of fees charged to developers of HOME- assisted affordable housing projects, the City has accumulated enough match credit to of Housing and Urban Development. An Emergency Ordinance to approve the use of these funds for this project has been submitted contemporaneously herewith. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: The City could elect not to approve this Ordinance, select an alternate method to provide shelter to those experiencing homelessness, or take no action. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Subrecipient Agreement Rescue Mission-Shelter Operations 2024 2. Quit claim deed - Pueblo Rescue Mission 728 W 4th Street 3. Quit claim deed - Pueblo Rescue Mission 710 W 4th Street