13-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Wangsu Lee, Assistant to the City Manager
SUBJECT: Consideration and possible action to authorize the City Manager to execute Amendment No. 6 to Agreement File No. 853, in a form approved by the City Attorney, with Mercy House Living Centers, to extend the term for Temporary Shelter Operator Services at New Hope Temporary Shelter.
DATE: September 22, 2025
EXECUTIVE SUMMARY
The City of Bellflower (“City”) entered into Agreement File No. 853 (“Agreement”) with Mercy House Living Centers (“Mercy House”) on December 19, 2019 , to provide the necessary services to operate the New Hope Temporary Shelter (“New Hope”).
Amendment No. 6 proposes to extend the Agreement to allow Mercy House to continue operating New Hope for one additional year. Mercy House has provided two separate cost proposals for City Council consideration.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Amendment No. 6 to Agreement File No. 853, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Depending on the City Council direction, the Agreement extension to operate New Hope through September 30, 2026, will provide for a not-to-exceed amount of $2,089,052.00 (a reduction of approximately 2%) or $2,221,958.00 (an increase of approximately 4%), respectively, from the previous year’s contract amount of $2,139,459.74. Funds are budgeted in Account Nos. 010/030-42054-8010.
DISCUSSION
On August 25, 2025, the City Council reviewed the homeless services provided at New Hope. As a part of this review, the City Council directed the City Manager to request alternative cost proposals from Mercy House for shelter services ranging from 35 to 50 beds.
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Staff Report – Amendment No. 6 to AFN 853 with Mercy House September 22, 2025
DISCUSSION – Continued
This direction was given in response to rising operational costs, concerns regarding New Hope’s long-term sustainability, and low occupancy trends. In the months preceding the August 25, 2025, City Council Meeting, New Hope’s average daily occupancy was 31-33 program participants, despite a 50-bed maximum capacity. As of the writing of this report, New Hope’s daily occupancy has increased to 41 program participants.
Mercy House submitted two cost proposals for the City’s consideration, the costs of which are varied, and each of which accounts for the fixed and flexible costs associated with the operations of the shelter as well as general expected inflationary increases over time. The first proposed scenario would maintain the status quo of a maximum capacity of 50 beds and maintenance of existing service levels and programs. Mercy House has proposed the cost of these services in the coming year at $2,221,958.00 which includes a 4% inflationary adjustment over the existing Agreement.
The second scenario discussed with Mercy House includes reductions in service levels and bed capacity that result in some savings based on those costs that are flexible, but also reflects fixed costs that cannot be reduced. Based on a reduced capacity of 35 beds, the total cost of services for the coming year as proposed by Mercy House is $2,089,052.00 which represents an overall reduction of 2% from the current agreement amount, and when accounting for included inflationary adjustments, represents a total reduction of approximately 6% from the costs of full operations. The savings in this reduced proposal are primarily derived from the elimination of one Navigator position along with proportional reductions in food and supply costs. In discussions with Mercy House, it has been noted that further staffing reductions beyond the elimination of one Navigator may jeopardize the safety and cleanliness of New Hope. Both proposals include the staffing and operational resources necessary to operate New Hope from October 1, 2025 – September 30, 2026. Mercy House’s updated proposals are outlined on the following page for Council review and consideration.
After considering the options, staff recommends that the City Council authorize the City Manager to execute Amendment No. 6 to the Agreement to extend the contract and maintain current, full operational service levels at New Hope. After extensive discussions with Mercy House, it was the opinion of Mercy House that personnel costs, which represent the majority of the contractual costs, cannot be reduced further without compromising service quality, safety and cleanliness. Under the reduced proposal, the total cost of the contract would be $2,089,052.00 for a maximum of 35 beds, which equates to $163.53 per bed per day – a significant increase in the per-day cost of each bed over current costs. This proposal also eliminates a Navigator position, which would shift those responsibilities to other employees and does not reflect the current demand of New Hope, as occupancy already exceeds 35 beds, with 41 program participants currently housed at New Hope. Contrastingly, the status qu o proposal totals $2,221,958.00 for a maximum of 50 beds, equating to $121.75 per bed per day – approximately 26% less on a per bed per day basis than the reduced service proposal.
Alternatively, the City Council may direct the City Manager to issue a request for proposal to identify other qualified vendors. However, issuing the RFP would require the City to allow the contract with Mercy House to continue on a month-to-month basis during the RFP period, while also assuming the risk that , as we have seen in the past, the bids received may propose higher costs with no promises of higher quality of service. 2 Staff Report – Amendment No. 6 to AFN 853 with Mercy House September 22, 2025
DISCUSSION – Continued
Greater than 35 Beds
Filled
Fewer than 35 Beds
Filled Variance
Program manager
$ 96,377.00 Program manager
$ 96,377.00
$ -
Sr. Site Lead
$ 67,332.00 Sr. Site Lead
$ 67,332.00
$ -
Site Lead
$ 129,382.00 Site Lead
$ 129,382.00
$ -
Navigation
Supervisor/leasing
$ 72,613.00
Navigation
Supervisor/leasing
$ 72,613.00
$ -
Navigator
$ 121,461.00 Navigator
$ 60,730.00 $ 60,731.00
Shelter Specialist
$ 265,492.00 Shelter Specialist
$ 265,492.00
$ -
Safety Coordinator
$ 193,017.00 Safety Coordinator
$ 193,017.00
$ -
Overnight
$ 164,632.00 Overnight
$ 164,632.00
$ -
Driver Supervisor
$ 34,326.00 Driver Supervisor
$ 34,326.00
$ -
Driver
$ 164,632.00 Driver
$ 164,632.00
$ -
Data/Reservation
Specialist
$ 36,900.00
Data/Reservation
Specialist
$ 36,900.00
$ -
Staff Sub-Total $ 1,346,164.00 Staff Sub-Total $ 1,285,433.00 $ 60,731.00 Security
$ 242,707.00 Security
$ 242,707.00
$ -
Meals
$ 155,273.00 Meals
$ 112,524.00 $ 42,749.00
Client Services and
Supplies
$ 96,720.00
Client Services and
Supplies
$ 84,630.00 $ 12,090.00
Transportation Costs
$ 21,158.00 Transportation Costs
$ 21,158.00
$ -
Shelter Maintenance
$ 6,045.00 Shelter Maintenance
$ 6,045.00
$ -
Insurance
$ 45,980.00 Insurance
$ 45,980.00
$ -
Replacement Reserves
$ 5,000.00
Replacement
Reserves
$ 5,000.00
$ -
IT and Internet
$ 12,090.00 IT and Internet
$ 12,090.00
$ -
Volunteer Expenses
$ 1,000.00 Volunteer Expenses
$ 1,000.00
$ -
Program Sub-Total
$ 585,973.00 Program Sub-Total
$ 531,134.00 $ 54,839.00
Indirect Costs
$ 289,821.00 Indirect Costs
$ 272,485.00 $ 17,336.00
Total $ 2,221,958.00 Total $ 2,089,052.00 $ 132,906.00
ATTACHMENT
Fiscal Year 2024-2025 New Hope Shelter Report .......................................................... 4 3 N E W H O P E
Report Contact:
Timothy Huynh,Chief Program Officer
EM: [email protected]
PH: (714) 836-7188 x132
J U N E 2 0 2 5
MONTHLY REPORT
TEMPORARY SHELTER
MERCY‘HOUSE
Report Summary (7/1/2024 – 06/30/2025)
Number Served
Month YTD
Number of Unduplicated Clients
3 132
Number of Exits
4 96
% of Service Capacity Goal (200 annual)
66%
Coordinated Entry System Statistics
Number of Active Clients who have completed a CES
assessment 27
% of Active Clients who have completed a CES assessment 81%
Total number of unduplicated individuals served year-to-date who have received CES Assessment during their shelter stay
119
Number of Active Clients who are Community Queue-ready
27 % of Active Clients who are Community Queue-ready
81%
Number of Active Clients Matched to a Housing Opportunity 1 % of Active Clients Matched to a Housing Opportunity
3%
Total number of unduplicated individuals served year-to-date who have received Permanent Supportive Housing (PSH) or Housing Voucher through the Coordinated Entry System
15 Total number of unduplicated individuals served year-to-date who have received Rapid Re-Housing (RRH) or other type of housing subsidy through the Coordinated Entry System
48 * Data represents clients active at the end of the reporting month
5 4
Program Exits – Summary
Month YTD
Positive Exits
Perm, Temp, Institutions except Jail/Prison
1 44
Negative Exits
Emergency Shelter, Streets, Jail/Prison
4 20
Unknown Exits
Unknown, Deceased
5 32
Program Exits – Destination Detail
Benchmark: 30% of clients who exit to a known destination will exit to permanent housing.
Progress toward benchmark: 53% of clients who have exited to a known destination have exited to permanent housing.
Exits to Permanent Housing Month YTD
0 36
Rental by client, no ongoing housing subsidy 0 2
Rental by client, with VASH housing subsidy 0 0
Rental by client, with other ongoing housing
subsidy
0 12
Public Housing Unit 0 1
Rental by client, with RRH or equivalent subsidy 0 11
Rental by client, with HCV voucher (tenant or
project based)
0 1
Staying or living with family, permanent tenure 0 0
Staying or living with friends, permanent tenure 0 0
Other permanent housing dedicated for formerly
homeless persons
0 7
Permanent Supportive Housing 0 1
Housing Stability Voucher 0 1
6 Exits to Temporary Housing Month YTD
0 4
Staying or living with family, temporary tenure 0 0
Staying or living with friends, temporary tenure 0 3
Host Home (non-crisis) 0 0
Transitional housing for homeless persons 0 1
Hotel or motel paid for without emergency shelter
voucher 0 0
Residential project or halfway house with no
homeless criteria
0 0
Exits to Institutions Month YTD
1 4
Foster care home or group foster care home 0 0
Psychiatric hospital or other psychiatric facility 0 0
Substance abuse treatment facility or detox center 0 0
Hospital or other residential non-psychiatric
medical facility
0 1
Jail, prison, or juvenile detention facility 0 1
Long-term care facility or nursing home 1 2
Exits to Homelessness Month YTD
4 19
Emergency shelter, including hotel or motel paid for
with emergency shelter voucher
0 1
Place not meant for habitation (e.g., a vehicle, an
abandoned building, bus / train / subway station /
airport or anywhere outside)
4 18
Exits to Other Destinations Month YTD
5 32
Data Not Collected (no exit interview completed) 5 25
Other 0 0
Deceased 0 1
Client Doesn't Know/Client Prefers not to answer 0 6
7 Length of Stay – Year to Date
Benchmark: National average for shelter stays is 192 days.
Progress toward benchmark: Shelter average is 197 days for the year-to-date.
The average length of stay for a successful housing placement is currently: 496 days
Total number of shelter bed nights provided year-to-date: 14,444
* May contain duplicate client enrollments
0 15
17 43
27 17
26 0 5 10 15 20 25 30 35 40 45 50
365 Days
8 H
a
Client Demographics
Age
Race & Ethnicity
5 13
32 35 34
13 0
5 10
15 20
25 30
35 40
18-24 25-34 35-44 45-54 55-64 65+
0 0
1 1
1 1
2 3
17 17
39 50
0 10 20 30 40 50 60
American Indian, Alaskan Native, or Indigenous
Asian or Asian American
Middle Eastern or North African & Asian orAsian American Middle Eastern or North African
Client Doesn't Know/ Perfers not to answer
Multiracial- More than 2 races/ethnicity, with one being… Hispanic/Latina/e/o & Asian or Asian American
Hispanic/Latina/e/o & American Indian, Alaskan Native, or… Hispanic/Latina/e/o
Black, Afircan American, or African
White& Hispanic/Latina/e/o
White
9 fillll
Gender
Veteran Status
42 89
1 Women Man Client Prefers Not to Answer
5 127
Veteran Non Veteran
10 Chronically Homeless
53 79
Chronically Homeless Non- Chronically Homeless
11 Housing Navigation Updates
Services Count of Services
provided
Financial Services 10
Case Management 34
Housing Plans 34
Employment opportunity 3
Successful completion 1
Leasing Updates
Active Clients Referral for the Month
6 New Client Referrals
0 Average Client Income
$1,200
Goals Totals
Housing Leads Provided 25 25
Qualifying Leads 10 10
Housing Leads Declined 5 3
Landlord Engagement 100 75
Appointments with Guests 25 18
Appointments Missed by Guests 5 0
Applications Submitted 5 4
Guests Housed 1 1
Successes
Housing Progress
• Three guests completed their Request for Tenancy Approval (RTA) vouchers and are currently awaiting approval.
• Two guests completed all required paperwork for their housing units and are now pending placement.
• One guest signed a lease and is awaiting furniture delivery before moving into her new home.
12 Permanent Care & Specialized Placement
• One guest successfully moved into a skilled nursing facility to address ongoing medical and supportive care needs.
Health Milestones
• One guest underwent successful heart surgery, marking an important step in their physical recovery.
Employment & Self-Sufficiency
• One guest secured employment, reflecting continued momentum toward personal growth and long-term housing stability.
Challenges
No challenges for the month of June 2025.
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