Title
[Contract Supplement] Step Up on Second Street Case Carrying Outreach Services for Street Outreach, Safe Camping, Safe Parking and Emergency Shelter Voucher Program
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FileID
File ID: 2026-00827
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplemental Agreement No. 2 to City Agreement No. 2024-1505 with Step Up on Second Street for Case Carrying Outreach Services for Street Outreach, Safe Camping, Safe Parking and the Emergency Shelter Voucher Program in an amount not-to-exceed $421,012, for a total not-to-exceed amount of $2,796,190.
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Contact
Contact: Brian Pedro, Director, (916) 808-7816, bpedro1@cityofsacramento.org; Jason Beckstrom, Support Services Manager, (916) 808-5709, Jbeckstrom@cityofsacramento.org; Department of Community Response
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Attachments
Attachments:
1-Description/Analysis
2-Step Up Case Carrying Outreach Services Supplement Agreement
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Description/Analysis
IssueDetail
Issue Detail: Homelessness is an issue that impacts communities without regard to geographic or political boundaries and for which there is no single answer or solution. The Department of Community Response (“DCR”) deploys a multifaceted approach and varied strategies to address this complex problem. In an effort to better serve community members experiencing homelessness in Sacramento, DCR recommends the City Council approve a supplemental agreement with Step Up on Second Street (“Step Up”) to expand their case carrying outreach services to include Safe Camping/Parking sites and the City’s new Emergency Shelter Voucher (“ESV”) program.
Community outreach has been an integral part of DCR’s strategy to connect individuals experiencing homelessness with all available services. In July 2024, Council approved the suspension of competitive bidding for Community Outreach Services and shortly after, DCR released a Request for Proposals for Community Outreach Services (P2523001021003). In December 2024, a contract was awarded to Step Up on Second Street to provide case carrying outreach services.
The goal of the Case Carrying Outreach Services program is to maintain engagement with clients over time and provide long-term support during the transition from encampments to interim shelters and eventually into housing. In coordination with DCR staff, Step Up provides ongoing and focused outreach Monday-Friday from 7 a.m. to 4 p.m. to identified individuals encountered during street outreach and referred from DCR and contracted staff. This outreach may occur in an encampment setting, in an emergency shelter, or in interim/transitional/permanent housing. Ten (10) Step Up Outreach Case Navigators work to build trust with unhoused individuals and provide links to essential services like mainstream benefits (such as housing vouchers and food assistance), care coordination, and vital documents. Since launching the Case Carrying Outreach program in January 2025, Step Up has provided services to more than 600 individuals and assisted 114 people into emergency shelter, 17 people into temporary housing and medical care facilities, and 13 people into permanent housing.
Safe Camping and Safe Parking
In August 2025 the City Manager’s Office, per Ordinance No. 2023-0015, directed staff to implement design and construction of a new safe camping site at 301 Sequoia Blvd. The Safe Camping site will include 100 tents, restrooms, shower service, trash collection, 24/7 security, a good neighbor policy and curfew for clients. Through this contract supplement, case management services will be provided to clients at the Safe Camping site from Step Up. The safe camping site is projected to open by the end of May 2026.
City staff is also working to establish a new safe parking site where people can temporarily stay and sleep in their vehicles. Staff anticipate opening a site with space for 60-80 vehicles that will include restrooms, shower service, trash collection, 24/7 security, a good neighbor policy, a curfew for clients and case management services from Step Up through this contract supplement.
Emergency Shelter Voucher Program
In December 2020, the City of Sacramento entered into its first agreement to utilize a motel as an emergency shelter. Since that time, the City has partnered with various non-profit organizations, including Hope Cooperative, City of Refuge, and Step Up, to operate and provide support services to families in the City Motel Program (“CMP”). Since December 2020, the City Motel Shelter Program has served 4,340 family members, including 2,135 children, experiencing homelessness. Of the 3,735 family members that have exited the City Motel Shelter Program, 1,432 have exited to positive destinations, including 1,131 that moved into permanent housing. As the latest service provider for the CMP program, Step Up has provided motel oversight, case management and rehousing services to CMP clients.
In 2025, the City completed an audit of the CMP, which identified several structural challenges, including extended lengths of stay, limited room turnover, and reduced rates of timely exits into permanent housing. The audit recommended implementing earlier engagement strategies, clarifying program objectives, and transitioning to a model better aligned with rapid stabilization and rehousing for families.
On September 16, 2025, City Council passed Motion No. 2025-0300, authorizing the development of a voucher-based model for the CMP to better support client choice, create additional cost savings, and assist in maintaining the program. In response, the Department of Community Response created the Emergency Shelter Vouchers (“ESV”) program to replace the existing CMP on June 1, 2026. The ESV program establishes a family-centered sheltering approach focused on prioritizing unsheltered families with minor children, facilitating rapid entry into shelter, initiating early supportive service engagement, and promoting timely transitions to stable housing. Upon approval of this contract supplement, Step Up will provide case management services to families in the ESV program. The ESV program design requires Step Up to focus on providing case management and rehousing services and shifts responsibility for motel oversight to the motel.
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PolicyConsiderations
Policy Considerations: Pursuant to Sacramento City Code section 3.56.090, any agreement for non-professional services that is for $250,000 or more requires City Council approval.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a "project" and is not subject to the provisions of California Environmental Quality Act (California Code of Regulations Title 14, section 15378(b)(2)). Additionally, the activities in this report are exempt from California Environmental Quality Act review because it can be seen with certainty that no significant effects could occur as a result of implementation (California Code of Regulations Title 14, section 15061(b)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Services provided under this agreement address the ongoing need for supportive services for individuals experiencing homelessness in the City.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available (Measure U, Fund 2401) in the Community Response MYOP (I23000100) to execute the supplemental agreement with Step Up on Second Street for case carrying outreach services for an amount not-to-exceed $421,012, for a total not-to-exceed amount of $2,796,190.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Step Up on Second Street is an LBE.
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