Title
Adoption of Resolution Amending the Fiscal Year 2025-26 Revenue Budget of the Capital Improvement Project Fund (C75500) and the Expenditure Budget of the Community Development Block Grant (20321843), Each by $550,000 for the Day Center Relocation Project.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). (Housing and Human Services 10021833) (City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The Day Center (Day Center) is a safe and welcoming place for people who are unhoused and provides services, overnight emergency shelter and safe parking. The Day Center Relocation Project is to rehabilitate Building 2, Wing 3 at 1041 W. Midway into a new Day Center facility. The construction includes a variety of funding sources, one of which is $550,000 from the Community Development Block Grant (CDBG), which was approved by City Council on December 15, 2025, as part of the CDBG Action Plan. This resolution is to formally appropriate the CDBG funds to the Day Center Relocation Project Capital Improvement Project Fund.
BACKGROUND
The Day Center serves the City of Alameda’s (City) most vulnerable residents who are unhoused with services, overnight emergency shelter and safe parking. Services include connection with social services such as housing, health, mental health, substance use treatment as well as classes, meals, wellness checks, once per week mobile showers and laundry, referrals and enrichment activities. The program is currently located at 431 Stardust Place, an Alameda Point building owned by the City. This building is slated to be demolished as part of Phase 2 of the City Council approved development project, Rebuilding the Existing Supporting Housing of Alameda Point (RESHAP) Phase 2. The Day Center is being relocated to Alameda Point Building 2, Wing 3, located at 1041 W. Midway Ave.
The City is an entitlement recipient of CDBG funds from the Federal Department of Housing and Urban Development (HUD). Each year, the City receives an allocation of approximately $1,000,000 of CDBG funding. CDBG funds can be used to finance programs and projects that benefit low- and moderate-income households, and to help prevent or eliminate blight.
On December 16, 2025, City Council approved the CDBG Action Plan which included an allocation of $550,000 of capital project funds for the Alameda Day Center Relocation Project.
December 16, 2025, City Council approved an agreement with Mar Con Engineering Inc. for construction of the Alameda Day Center Relocation Project. Construction is underway and the Day Center is anticipated to open in the new location in Fall 2026.
DISCUSSION
City Council approved the use of $550,000 of CDBG public improvement funds as part of the CDBG Action Plan and this resolution is formally appropriating the CDBG funds to the Day Center Relocation Project Capital Improvement Fund C75500 so those funds may be appropriately expended for construction.
Additionally, the expenditure of the $550,000 is critical to ensure the City meets HUD timeliness by the May 2, 2026 deadline since this was a significant funding allocation in the CDBG Action Plan. HUD requires that a certain amount of CDBG funding be expended each year to meet timeliness.
ALTERNATIVES
• Approve appropriation of CDBG funds in the amount of $550,000 to the Day Center Relocation Project Capital Improvement Project fund for construction.
• Approve a lower amount of CDBG funds for the Day Center Relocation Project which will impact the feasibility of opening the program site.
• Do not approve any appropriation of CDBG funds for the Day Center Relocation Project which will significantly impact the feasibility to complete construction.
FINANCIAL IMPACT
Funding in the amount of $550,00 is available in the Housing and Human Services CDBG Fund (20321843) to be appropriated to the Day Center Relocation Project Capital Improvement Project Fund (C75500).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action supports the City Strategic Plan, project HH2c to relocate and expand the Day Center and overnight shelter.
ENVIRONMENTAL REVIEW
In accordance with the CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
CLIMATE IMPACT
The Social Vulnerability Assessment section of the Climate Action and Resiliency Plan states:
“adaptation strategies should consider how [the homeless] will receive emergency communications and how they will be sheltered. Proper, safe housing for all is an adaptation and resilience strategy. Planning strategies should always consider these vulnerable populations in adaptation efforts.”
Day Center program provides safe, warm, and needed shelter, providing basic human services, and access to case management for the unhoused in Alameda.
RECOMMENDATION
Adopt a resolution amending the Fiscal Year 2025-26 Revenue Budget of the Capital Improvement Project Fund (C75500) and the Expenditure Budget of the Community Development Block Grant (20321843), each by $550,000 for the Day Center Relocation Project.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director