Title
[Contract Supplement] Roseville Road South Campus Operations [Two-Thirds Vote Required]
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FileID
File ID: 2026-00718
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Location
Location: 3900 Roseville Road, District 2
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Recommendation
Recommendation: Pass a Motion by two-thirds vote: 1) waiving the requirement for 10-day posting of agreements over $1 million under City Code section 4.04.020(C) and Council Rules of Procedure Chapter 7, Section E.2.d; 2) authorizing the City Manager or designee to execute Supplemental Agreement No. 2 to City Agreement No. 2025-0449 with First Step Housing Dba First Step Communities for operations of Roseville Road South Campus in an amount not-to-exceed $1,913,603, for a total not-to-exceed amount of $4,546,828.
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Contact
Contact: Brian Pedro, Director, (916) 808-7816, bpedro1@cityofsacramento.org; Rodolfo Davidson, Program Manager, (916) 808-3703, rdavidson@cityofsacramento.org; Department of Community Response
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Attachments
Attachments:
1-Description/Analysis
2-First Step Communities Supplemental Agreement
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Description/Analysis
IssueDetail
Issue Detail: In August 2023, City Council gave the City Manager authority to identify and stand up new safe camping sites, and in January 2024, the City opened Roseville Road Campus (“RRC”), a new shelter and service campus at 3900 Roseville Road. With the launch of the Roseville Road Campus, all operations and services at Miller Park - the City’s former safe camping and safe parking site - were transitioned to the new campus. At the time, the City extended its contract with First Step Communities, the operator for the Miller Park site, to assist in quickly getting the essential new campus operational, ensuring a seamless transition from Miller Park to RRC without a lapse in vital services.
In July 2024, the Department of Community Response’s (“DCR”) Office of Community Outreach released a Request for Proposals (“RFP”) for RRC Operations. DCR withdrew this RFP after receiving notice that the City had been awarded a $12,353,419 grant from the State’s Encampment Resolution Fund (“ERF”) grant program. This funding allowed for the expansion of RRC in the northern section of the property and funded the addition of 135 tiny homes with electricity (100 on the north campus and 35 on the south campus), as well as the continuation of high intensity outreach and services and enhanced shelter and housing support to program participants.
Due to the expanded scope of operations of RRC, DCR issued an updated RFP to reflect the updated scope of work. On January 9, 2025, DCR released the updated RFP for RRC Operations and selected two operators for the site: First Step Communities to operate the Roseville Road South Campus (RRC South); and The Gathering Inn to operate the Roseville Road North Campus (RRC North). On April 29, 2025, Council passed Motion Number 2025-0118 authorizing an agreement with First Step Communities for the operations of the RRC South for a not-to-exceed amount of $2,523,226, starting on May 1, 2025.
RRC South operates 24/7 with 96 electrified tiny homes. The program provides two daily meals, case management, and connections to social services, Continuum of Care enrollment, and housing navigation. RRC South also offers a safe overnight stay, connection to appropriate housing programs, and essential items such as clothing, blankets, and personal care supplies as needed. Up to 50% of units allow pets (maximum two per unit).
Since May 2025, FSC produced the following outcomes at the RRC South:
• Served 238 people
• 139 total people exited the program
• 55 people, or 40%, moved into permanent housing
• Seven people, or 5%, exited to an improved destination, including medical and substance use treatment settings
City staff recommend extending the agreement with First Step Communities for an additional eight months to align with Roseville Road North Campus agreement with The Gathering Inn, for an amount not-to-exceed $1,913,603 to continue operations at the Roseville Road South Campus through December 31, 2026.
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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.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor
agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. The recommendation is to waive this requirement.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The City considered the potential effects on the environment at the time the site was proposed and approved for operation. The City concluded that it could determine with certainty that no significant effects would result from establishing and operating the Roseville Road Campus, and that pursuant to CEQA Guidelines section 15061(b)(3) the activities were exempt from the California Environmental Quality Act (CEQA). This action includes minor improvements to a developed site, with negligible ground disturbance. A Notice of Exemption was posted on January 8, 2024.
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The Roseville Road Campus provides shelter and supportive services for individuals experiencing homelessness. Approval of this supplemental agreement will ensure uninterrupted operations and continued progress toward housing placement outcomes. Waiving the 10-day requirement for contract review is needed because the current contract expires on April 30th.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available (Measure U, Fund 2401) in the Community Response MYOP (I23000100) to execute a supplemental agreement with First Step Communities for an amount not-to-exceed $1,913,603, for a total not-to-exceed amount of $4,456,828.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): First Step Communities is a LBE in the City of Sacramento.
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