Title
Agreements: City Motel Shelter Program Agreements with Paul & Sons Inc, Motel 6 Downtown, Motel 6 Central, Siyaram Hotels, LLC, Arden Acres, and Step Up on Second Street [Two-Thirds Vote Required]
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FileID
File ID: 2024-01076
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Location
Location: Citywide
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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 the City Manager’s designee to: a) execute an Agreement with Paul & Sons for an amount not to exceed $1,285,000; b) execute an Agreement with Motel 6 Downtown for an amount not to exceed $894,000; c) execute an Agreement with Motel 6 Central for an amount not to exceed $1,285,000; d) execute an Agreement with Siyaram Hotels, LLC dba Gold Star Inn for an amount not to exceed $733,000; e) execute an Agreement with Arden Acres for an amount not to exceed $796,000; and f) execute Supplemental Agreement No. 1 to City Agreement No. 2023-1185 with Step Up on Second Street, Inc for an amount not to exceed $437,264, for a total not to exceed amount of $1,875,096.
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Contact
Contact: Brian Pedro, Director, (916) 808-7816, bpedro1@cityofsacramento.org; Jason Beckstrom, Program Specialist, (916) 808-5709, jbeckstrom@cityofsacramento.org; Department of Community Response
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Attachments
Attachments:
1-Description/Analysis
2-Paul & Sons Northgate Agreement
3-Motel 6 Downtown Agreement
4-Motel 6 Central Agreement
5-Siyaram Hotels, LLC dba Gold Star Agreement
6-Arden Acres Agreement
7-Step Up on Second Street Supplemental 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 approach. Shelters play a significant role in addressing homelessness and as such it is necessary to create a systemic approach to addressing homelessness which includes low to no barrier crisis shelters. The City of Sacramento recognizes the important role that such shelters play in helping move people out of homelessness and into permanent housing.
The City of Sacramento has made a significant investment of resources to increase the access and availability of shelter beds, services, and permanent housing to those experiencing homelessness. The positive impact from these investments can be seen from the latest Sacramento Point-In-Time (PIT) Count that was released in June 2024. According to the 2024 Sacramento PIT Count released by the Sacramento County Continuum of Care, the County of Sacramento had an estimated homeless population of 6,615, a 28.7% decrease from the 2022 PIT Count. Between 2022 and 2024, the number of people experiencing homelessness in shelters increased by 2.2%, from 2,614 to 2,671. In contrast, the number of unsheltered individuals decreased by 40.8%, dropping from 6,664 to 3,944.
In addition to the decrease in the overall number of people experiencing homelessness in Sacramento, there continues to be a significant increase in the percentage of families experiencing homelessness being sheltered. The 2024 Sacramento PIT Count reported 96.7% of families experiencing homelessness were sheltered, up from 68% in 2022 and 48% in 2019. This increase in the percentage of families experiencing homelessness being sheltered is largely attributed to the work of the City Motel Shelter Program and its ability to assist families with shelter and support services.
City Motel Shelter Program Motel Owners and Funding
In mid-December 2020, the City utilized $250,000 of the existing Coronavirus Relief Fund (CRF) to contract with Paul & Sons, Inc and Shree Enterprises for the creation of the City Motel Shelter Program, a non-congregate sheltering program.
On January 27, 2021, the City Council adopted Resolution No. 2021-0023, which
proclaimed the existence of a Local Public Emergency relating to unhoused persons amidst extreme weather conditions and the COVID-19 pandemic.
On March 2, 2021, the City Council adopted Resolution No. 2021-0053, which further
recognized the urgent need to offer unhoused persons, facing imminent health and safety threats, with non-congregate shelter and authorized the City Manager to provide motel vouchers to qualified persons as long as the Federal Emergency Management Agency (FEMA) continued to provide 100 percent reimbursement.
City staff continued expansion of the City Motel Program including an agreement with Sky Riders motel in April 2021 to add 30 rooms, an agreement with Siyaram Hotels, LLC in October 2021 to add 32 rooms, and an agreement with Arden Acres in December 2022 to add up to 49 rooms to the program. These additions brought the total number of motel rooms in the City Motel Shelter program to 200, which has been the operating capacity of the program since December 2022.
On February 8, 2022, the City Council adopted Resolution No. 2022-0041, which recognized the urgent need to continue to offer the local unhoused population, facing imminent health and safety threats, with non-congregate shelter and authorized the City Manager to continue to provide motel vouchers and related services for unsheltered households qualified to receive federal funding support as long as FEMA continued to allow for seeking full reimbursement for the most COVID-19 at-risk members of the unsheltered population.
On February 7, 2023, the City Council adopted Resolution No. 2023-0036, which authorized the City Manager, or the City Manager’s designee, to accept the state allocation of $24,791,417 in grant funds and increase the HHAP-4 Grant Fund Project (G02000980) and its corresponding revenue and expenditure budget in G02000982 (Operating Grant Fund, Fund 2702.)
On May 11, 2023, the COVID-19 Disaster Declaration Incident Period closed. As of that date the City is no longer be able to seek FEMA reimbursement for the City Motel Shetler Program. Since the FEMA reimbursement period ended, the City Motel Shelter Program has been funded using already authorized ARPA and HHAP funding.
On September 5, 2023, the City Council passed a motion to continue the City Motel Program by authorizing agreements with Paul & Sons, Inc., Shree Enterprises, Inc., Sky Riders, Siyaram Hotels, LLC dba Gold Star, Arden Acres, and an agreement with Step Up on Second Street for operations and support services for the City Motel Program through June 30, 2024.
In May 2024, City Staff released a Request for Proposals (RFP) for the City Motel Shelter Program Motel Owners. In total, the City received the following nine responses to the RFP for motel owners listed in order of ranking by the RFP review panel:
1) Motel 6 Downtown- up to 94 rooms.
2) Arden Acres- up to 30 rooms.
3) Paul & Sons Inc- up to 80 rooms.
4) Siyaram Hotel dba Gold Star- up to 32 rooms.
5) Motel 6 Central- up to 110 rooms.
6) Shree Enterprises- up to 71 rooms.
7) SureStay Cal Expo- up to 40 rooms.
8) Shrim Hotels, LLC- up to 20 rooms.
9) Sky Riders- up to 30 rooms.
City staff recommend funding the top five rated motels for a total of 200 rooms, from June 26, 2024 through February 28, 2025. The RFP awardees include Paul & Sons Inc (51 rooms), Motel 6 Downtown (38 rooms), Motel 6 Central (51 rooms), Siyaram Hotel dba Gold Starr (31 rooms), and Arden Acres (29 rooms).
City Motel Shelter Program Support Partner
Since the inception of the City Motel Shelter Program in December 2020, the City has partnered with various non-profit organizations, including Hope Cooperative, City of Refuge, and Step Up on Second Street, to operate and provide support services to program participants. Since December 2020, the City Motel Shelter Program has served 2,866 individuals, including 1,219 children, experiencing homelessness. Of the 2,246 individuals that have exited the City Motel Shelter Program, 635 have exited to positive destinations, including 476 that moved into permanent housing.
In June 2023, City Staff released a Request for Proposals (RFP) for City Motel Program Support Services and only received one response which was from Step Up on Second Street. On September 1, 2023, the City partnered with Step Up on Second Street to operate the entire City Motel Program and provide support services to the program participants. These services include case management, housing coordination and navigation, program referrals, move-in to housing support, and ongoing support for up to one year to ensure that participants maintain housing after leaving the program.
Staff recommend extending and funding the current agreement with Step Up on Second Street for eight additional months, from July 1, 2024 through February 28, 2025, to continue operating the City Motel Shelter Program and to continue providing support services to program participants.
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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: Not applicable.
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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: DCR staff have completed the RFP process and have notified the awardees. The RFP process has enabled City staff to choose the top-ranked proposers who exhibit experience working with a vulnerable population of individuals experiencing homelessness, ability to serve various Council districts, and ability to respond quickly and work in collaboration with DCR. Services provided by these agreements address the ongoing need for both shelter and supportive services for individuals and families experiencing homelessness.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available (Operating Grants, Fund 2702) in the HHAP-3 Program (G02000970) and in the HHAP-4 Program (G02000980) to execute the Agreements with Paul & Sons, Inc for a not to exceed amount of $1,285,000, Motel 6 Downtown for a not-to-exceed amount of $894,000, Motel 6 Central for a not to exceed amount of $1,285,000, Siyaram Hotels, LLC dba Gold Star Inn for a not to exceed amount of $733,000, Arden Acres for a not to exceed amount of $796,000, and Step Up on Second Street for an amount not-to-exceed $437,264, for a total of $5,430,264 for all of the agreements.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): All businesses and non-profit organizations that the Department of Community Response is partnering with are LBEs in the City of Sacramento.
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