Ojai council directs staff to pursue county partnership after review of Cabin Village cost model

The Ojai City Council on Feb. 4 directed the city manager to pursue partnership agreements with Ventura County and return with additional financial analysis after staff presented a conservative one-year cost model for a proposed 30-unit Cabin Village permanent supportive housing project at the city Public Works Yard.

The staff presentation, given by Mr. Alameda, a city staff presenter, outlined projected first-year revenues of about $634,215 and operating expenses of roughly $629,000 and said the city has received ‘‘over $12,600,000’’ from the state under the Encampment Resolution Funding (ERF) program to pay for development and to seed operations. Alameda said the development cost estimate for the project is “about an $8 or $9 million project, roughly.”

The cost model treated revenues conservatively, staff said: it assumed 20% of units would pay rent from Social Security and 20% would be covered by voucher (Section 8)-style assistance; it did not build in any county operating support. Alameda said Dignity Moves, the nonprofit operator consulted for the plan, operates more than 10 similar sites and contributed operating and revenue assumptions to the model. Ventura County’s homelessness director Kimberly Albers attended the meeting and answered questions about how county funding and services might apply.

Why this matters: the city must spend at least 50% of ERF development funds by June under the grant rules discussed at the meeting, and staff said the state award both covers construction and can be set aside in a designated fund for ongoing operating subsidies. Council members and speakers at the meeting framed the choice as time-sensitive: several proponents warned the city could lose the grant if it did not act, while opponents urged more study of long-term operating obligations.

Public comment at the special meeting ran more than two hours and included a mix of neighbors who oppose the proposed Public Works Yard site and supporters who said the site is appropriate and that delays risk losing the state funding. Opponents raised safety and zoning concerns, legal questions about whether the site permits residential use and asked the council to negotiate firm county commitments before proceeding; proponents emphasized the proximity to services, the site’s screening by trees and the urgency of housing people now living in Ojai Tent Town.

Key factual points from staff and witnesses

- Grant and timeline: Staff said the city’s ERF award is ‘‘over $12,600,000’’ intended to cover site development and initial operations; Ventura County staff noted the ERF grant requires 50% of development proceeds to be spent by June and that remaining funds can be placed in a designated account for operating subsidies.

- Project size and costs: The model assumes a 30-unit Cabin Village. Staff estimated development costs roughly $8–9 million and presented a conservative first-year operating revenue estimate of $634,215 and expenses of about $629,000; Alameda emphasized the numbers are conservative and that actual interest income on the grant could be higher than shown.

- Revenue assumptions: The model includes interest income on the grant, modest resident rent collection (modeled as 20% of units paying from Social Security income), voucher revenue (20% of units), and a small allowance for community donations. The model intentionally set county operating support at $0 to avoid relying on unconfirmed commitments.

- Known contracts and costs: Alameda said approximately 56% of the projected operating expenses are supported by proposals or contract estimates already received (case management, behavioral health, on-site security as-needed, directed sheriff patrols, property insurance and some maintenance services). He said the project will be all-electric and include solar, which should reduce energy costs in operation; solar and other construction costs would be part of the development budget paid from the grant.

- Service model: Staff and Kimberly Albers said the proposal is for permanent supportive housing with case management and supports, not an intensive treatment center. Albers told the council permanent supportive housing has high retention rates in Ventura County and that county behavioral health could provide services but a county agreement needs to be negotiated and approved separately.

Council action and next steps

The council voted to accept the staff report and directed the city manager to negotiate a proposed operational funding agreement with Ventura County and to return to council with that proposed agreement and additional analysis of the Dignity Moves operator model and long-term feasibility. The motion was made by Mayor Pro Tem Lang and seconded by Mayor Gilman; the council announced the motion passed.

The action did not approve a construction contract or adopt an operational budget. Council members and staff said any negotiated agreement with the county and any formal project approvals would be returned to the council for public review and possible vote.

What speakers told the council (selection)

- Raul Alvarado, resident: urged ‘‘thoughtful planning, transparency, and public engagement’’ and asked for a 30-day reassessment period to refine the plan with expert input.

- Shannon Richard, resident: said she supports the Cabin Village concept but called the Public Works Yard placement ‘‘the worst possible choice’’ for a residential neighborhood and raised safety concerns for families and children.

- Jim Churchill, resident: said he visited the proposed Public Works Yard site and supported moving forward there, citing screening by trees, size and proximity to services.

- Jean Chiraga, neighbor (represented by counsel): said a law firm had sent a letter three months earlier arguing the Public Works Yard zone does not allow residential use and cited Ojai Municipal Code sections (10-2.603 and 10-2.2601(b)) and Government Code provisions; she said the city had not yet answered that letter.

- Kimberly Albers, Ventura County Homelessness Solutions Director (in audience): said permanent supportive housing is the county’s most effective strategy and clarified ERF timing constraints while noting that unspent funds may be set aside for operating subsidies in a designated fund.

Context and outstanding questions

- County financial commitment: staff modeled county support at $0 to avoid depending on unconfirmed funding; several council members and public speakers urged staff to seek a clear, written county commitment for operations before further commitments by the city.

- Long-term sustainability: multiple speakers said the project requires multi-year financial planning beyond the one-year operating model staff presented; some cited other cities whose operating costs were materially higher and urged a 5–15 year model before committing to permanent operations.

- Planning and zoning: opponents raised zoning questions and were directed toward the planning commission hearing scheduled for Feb. 19, where planning/zoning issues will be addressed in a public forum (the planning commission is advisory to the council on land-use questions).

- Environmental testing and site work: staff said preliminary testing “has provided that the city doesn’t need to go any further than what has already been done,” but some speakers urged a Phase II environmental investigation to confirm soil conditions before development.

- Programs and staffing: staff said resident stewardship stipends paid previously through an outside program ended in December; the city now employs a part-time homeless services coordinator and relies on volunteers and partner agencies for day-to-day operations at Ojai Tent Town.

What’s next

Staff will move forward with negotiations with Ventura County on a possible operating and services agreement, and will return to the council with the proposed county agreement and additional analysis of the Dignity Moves operating model, more detailed multi-year cost projections and other implementation details for public review and council consideration. The council and staff emphasized that any binding agreements or budgets will be returned to council for public action.

Sources and attributions

Statements and figures in this article are drawn from the Feb. 4, 2025 Ojai City Council special meeting presentation and public comment record, including remarks by Mr. Alameda (city staff presenter), City Manager Ben Harvey, Ventura County Homelessness Solutions Director Kimberly Albers and numerous Ojai residents and stakeholders who spoke during the public comment period.

Ending

Council members and staff said they will hold a town-hall forum Feb. 24 to answer questions about the program, services and funding and will present the proposed county agreement and additional financial analysis to the council before any final commitments are made.