Title
[Contract Supplement] North 5th Street Navigation Center with The Gathering Inn [Published for 10-Day Review 09/17/2026]
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FileID
File ID: 2026-01436
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Location
Location: 700 North 5th Street, District 4
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplemental Agreement No. 3 to City Agreement No. 2024-1367 with The Gathering Inn in an amount not to exceed $2,506,042, for a total not-to-exceed amount of $8,689,037 for operation of the North 5th Street Navigation Center.
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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-The Gathering Inn Supplement Agreement
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Description/Analysis
IssueDetail
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. According to the 2026 Point-in-Time (PIT) Count, the number of individuals experiencing unsheltered homelessness within the City of Sacramento decreased by approximately 19%, from 3,053 in 2024 to 2,463 in 2026. While homelessness continues to be a regional challenge, the decrease in unsheltered homelessness within the City reflects continued investments in shelter, outreach, supportive services, and housing-focused interventions.
The North 5th Street Navigation Center (Navigation Center) is a County-owned facility that has been operated by the City of Sacramento since 2019. The Navigation Center provides shelter services 24 hours a day, seven days a week for up to 163 adult men and women. The program ensures low barriers for entry and allows for accommodations of participants with pets, partners, and personal belongings. On-site case management connects participants to stable income, public benefits, and community support services, preparing individuals to return to permanent housing.
On June 20, 2024, City staff released a Request for Proposals (RFP) P#24231031003 for North 5th Street Emergency Shelter Operations and Rehousing Services. A review panel, including City, County, and Sacramento Steps Forward staff, unanimously recommended The Gathering Inn’s proposal.
On October 15, 2024, City Council passed Motion No. 2024-0299 authorizing the execution of a five-month agreement from November 2024 through March 2025 with The Gathering Inn for an amount not-to-exceed $1,543,593, for the operation of The Navigation Center using State Homeless Housing, Assistance and Prevention (HHAP)-3 and HHAP-4 funds.
On March 25, 2025, City Council passed Motion No. 2025-0077 authorizing the execution of Supplement Agreement No. 1 with The Gathering Inn to extend operations of the Navigation Center for seven months, through October 31, 2025, and to add $1,897,821 of HHAP-4 and HHAP-5 funds, for a total not-to-exceed amount of $3,441,414.
On October 21, 2025, the City Council passed Motion No. 2025-0329 authorizing the execution of Supplemental Agreement No. 2 with the Gathering Inn to extend operations of the Navigation Center for an additional 12-months, through October 31, 2026, and to add $2,741,581 of HHAP-5 funds, for a total not-to-exceed amount of $6,182,995.
Since taking over the operations of the North 5th Street Navigation Center in November 2024, The Gathering Inn has provided shelter and supportive services while strengthening site operations, case management, housing navigation, participant engagement, and connections to behavioral health and community-based services.
During that time The Gathering Inn served 1,336 individuals, assisted 132 people in moving into permanent housing, and assisted an additional 207 people in transitioning into improved situations (such as group homes, transitional housing, substance-use or behavioral-health facilities or family reunification). Additionally, The Gathering Inn has increased the exits to permanent housing by 10% and the exits to improved situations by 60% compared to the previous operator.
City staff recommend executing Supplemental Agreement No. 3 to City Agreement No. 2024-1367 with The Gathering Inn for an additional 12-months, through October 31, 2027, and to add $2,506,042 of HHAP-6 funding, for a total not-to-exceed amount $8,689,037.
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PolicyConsiderations
Policy Considerations: Pursuant to Sacramento City Code Section 3.04.020, any agreement involving an expenditure of $250,000 or more requires City Council approval. This item was published for 10-day review on September 17, 2026, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns activities that do not constitute a “project” under the California Environmental Quality Act (CEQA) because they do not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment (CEQA Section 15378(a)). Additionally, this report concerns activities that would be exempt from the CEQA because they do not have the potential for causing a significant effect on the environment (CEQA Guidelines section 15061(b)(3)).
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Services provided by this supplemental agreement address the ongoing need for both shelter and supportive services for individuals experiencing homelessness.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available (Operating Grants, Fund 2702) in the HHAP-6 Grant Project (G02001110) to execute the agreement with The Gathering Inn for an amount not-to-exceed $2,506,042, for a total not-to-exceed amount of $8,689,037.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The Gathering Inn is local to the Sacramento Region and will partner with LBEs in the City of Sacramento.
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