Title
[Contract Supplement] Emergency Bridge Housing Shelter at Grove Avenue [Two-Thirds Vote Required]
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FileID
File ID: 2026-00635
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Location
Location: 2787 Grove Avenue, 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. 1 to City Agreement No. 2025-0459 with First Step Housing Dba First Step Communities in an amount not-to-exceed $1,875,000, for a total not-to-exceed amount of $3,749,712 for the operation of the Emergency Bridge Housing Shelter.
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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: 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 that 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 into increasing the access and availability of shelter beds, services, and permanent housing for 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 by the Sacramento County Continuum of Care. According to the 2024 PIT Count, 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. Despite recent improvement in the number of individuals experiencing homelessness, Sacramento has still seen a 19% increase in homelessness from the 2019 PIT count.
The City’s response to homelessness includes an Emergency Bridge Housing (EBH) program at Grove Avenue for Transitional Aged Youth (TAY), which opened in June 2020. When opened, the shelter operations were managed and overseen by the Housing Authority of the City of Sacramento (Housing Authority) using Homeless Housing, Assistance, and Prevention (HHAP) funding that was awarded to the City from the State of California. The City and the Housing Authority in 2024 mutually agreed to transition the management and oversite of EBH at Grove Avenue from the Housing Authority to the City, with the transition occurring in 2025.
In preparation to take over management and oversite of EBH at Grove Avenue from the Housing Authority, City staff released a Request for Proposals for the shelter’s operation in early 2025 and awarded the contract to First Step Communities for a not-to-exceed amount of $1,874,712 starting on May 1, 2025.
From June 2020 through April 2025, 630 TAY experiencing homelessness were sheltered at the Emergency Bridge Housing, with 78 exiting to positive destinations (such as family reunification) and 274 exiting into permanent housing.
Since May 2025, FSC produced the following outcomes at EBH at Grove Avenue:
• Served 184 people
• 134 total people exited the program
• 29 TAY (22%of those who exited), exited to a positive destination
• 59 TAY (44% of those who exited), exited to permanent housing
City staff recommend entering into an supplemental agreement with First Step Communities for the continued operations of the Emergency Bridge Housing through April 30, 2027, using HHAP-5 and HHAP-6 funds.
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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.
The Sacramento City Code Section 4.04.020 and the City 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 City Council action. The recommendation is to waive this requirement.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: Pursuant to Government Code section 8698.4(a)(4), the California Environmental Quality Act does not apply these contracts. Additionally, this report concerns activities that do not have the potential for causing a significant effect on the environment and would be exempt from the CEQA (CEQA Guidelines section 15061(b)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Emergency Bridge Housing Shelter provides critical shelter and stabilization services to TAY experiencing homelessness. Approval of this supplemental agreement will ensure uninterrupted operations and continued progress toward housing placement outcomes. Waiving the requirement for 10-day contract review is necessary because the contract expires on April 30th.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available (Operating Grants, Fund 2702) in the HHAP-5 Grant Project (G02000990) in the amount of $1,558,699 and sufficient funding will be available (Operating Grants, Fund 2702) in the HHAP-6 Grant Project (G02001110) in the amount of $316,301, upon the State’s disbursement of HHAP-6 funding, to execute a supplemental agreement with First Step Communities for an amount not-to-exceed $1,875,000, for a total not-to-exceed amount of $3,749,712.
On March 30, 2026, the City received the State’s approval of the Sacramento Region’s HHAP-6 action plan, and the State’s award of $16,120,619 of HHAP-6 funding. Until the City receives the State’s disbursement of HHAP-6 funding, there is sufficient funding available (Measure U, Fund 2401) in the Homeless Housing Initiative MYOP (I23001000) to fund the HHAP-6 portion of both agreements, if needed.
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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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