15-E
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. 7 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 14, 2026
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”). The recent completion of the acquisition of the property on which New Hope Shelter is located, allows the City to make more meaningful long-term commitments to the operations of New Hope. Amendment No. 7 (the “Amendment”) proposes to extend the Agreement to allow Mercy House to continue operating New Hope through June 30, 2029. The Amendment also aligns the contract period with the fiscal year moving forward.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Amendment No. 7 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
The 33-month contract (October 1, 2026 – June 30, 2029) will have a not-to-exceed amount of $6,337,713. The cost breakdown per fiscal year is shown in Exhibit B to the Agreement. Funds for Fiscal Year 2026-27 are currently budgeted in Account Nos. 010/030-42054-8010-TSS. Funding for the remaining two fiscal years will be budgeted accordingly as part of the City’s subsequent budget cycles.
1 Staff Report – Amendment No. 7 to AFN 853 with Mercy House September 14, 2026
DISCUSSION
For the past seven years, the City has contracted with Mercy House to operate New Hope, a 50-bed, state-of-the-art, temporary shelter serving people experiencing homelessness (“PEH”). During this time, Bellflower residents have consistently identified homelessness as a significant community concern, and the City Council has continued to fund New Hope as a central component of the City’s response to homelessness. The City has since expanded its efforts into a coordinated, three-pronged strategy consisting of enforcement, outreach, and temporary shelter. The City Council recently established the Bellflower Enforcement and Safety Team (“BEAST”) to address unlawful encampments and entered into a strategic partnership with Kingdom Causes Bellflower to provide homeless outreach, connect PEH with available resources, and facilitate referrals to New Hope.
This coordinated model allows the City to address the immediate impacts of homelessness that affect Bellflower residents while connecting PEH with services intended to support their transition toward stable housing. The effectiveness of this approach is reflected in both shelter utilization and broader community outcomes. Prior to last year’s contract renewal, New Hope’s average daily occupancy ranged from 31 to 33 participants, despite its 50-bed capacity. Recently, the daily occupancy has increased to approximately 48 to 50 participants. During the same period, Bellflower experienced a 53% reduction in homelessness while other areas of the County have continued to see significant increases.
Mercy House’s operation of New Hope has been a critical component of the City’s efforts to address homelessness. In addition to providing temporary shelter to PEH, Mercy House offers comprehensive case management, housing navigation, health-related programs, employment training, transportation assistance, and other supportive services tailored to each participant’s individual needs. Together, these services are intended to address barriers to permanent housing, promote stability and self-sufficiency, and help participants transition out of homelessness as efficiently as possible. Recent performance data demonstrate meaningful improvement in these outcomes. Currently, 94% of participants remain at New Hope for less than one year before securing a housing placement, with 61% securing placement within six months.
The overall average length of stay has also declined, from an average of 123 days between May 2020 and June 2025 to an average of 98 days during the most recent year.
More significantly, among participants who ultimately secured permanent housing, the average length of stay decreased from 371 days during the May 2020 through June 2025 period to an average of 93 days in the most recent year. These improvements demonstrate that New Hope is increasingly effective in connecting participants to housing and fulfilling its intended purpose as a temporary bridge from homelessness to permanent housing, rather than serving as a long-term shelter.
To support the continued effectiveness and ongoing improvement of the City’s coordinated strategy for addressing homelessness, as well as the recent completion of the acquisition of the property on which New Hope sits, City staff recommends extending the Agreement with Mercy House for three years. Mercy House has also requested that the agreement term be revised from the historical October-September cycle to a July-June cycle to align with the fiscal year.
2 Staff Report – Amendment No. 7 to AFN 853 with Mercy House September 14, 2026
DISCUSSION – Continued
The proposed amendment incorporates this change and establishes an expiration date of June 30, 2029, rather than September 30, 2029. The proposed compensation is detailed in Exhibit B to the Agreement. The FY 2026-27 not-to-exceed contract amount has been prorated based on current contract costs, while the FY 2027 -28 and FY 2028- 29 not-to-exceed contract amounts have been adjusted to reflect anticipated annual inflation of approximately 3.5%. The City retains the option to terminate the Agreement at any time with or without cause and Mercy House may terminate this Agreement at any time with the City’s mutual consent and requires a 30-day notice.
ATTACHMENTS
Amendment No. 7 to AFN 853 (With Exhibit B) ............................................................... 4 New Hope Shelter Report (July 1, 2025 – June 30, 2026) .............................................. 8 3
AMENDMENT NO. 7 TO
AGREEMENT FILE NO. 853 BETWEEN
THE CITY OF BELLFLOWER AND MERCY HOUSE LIVING CENTERS
FOR TEMPORARY SHELTER SERVICES
THIS AMENDMENT No. 7 (“Amendment”) is made and entered into this 14th day of September 2026, by and between the CITY OF BELLFLOWER, a charter city and municipal corporation (“CITY”), and MERCY HOUSE LIVING CENTERS, a California public benefit corporation (“CONSULTANT”). The Parties agree as follows:
SECTION 1. Pursuant to Section 36 (“AUTHORITY/MODIFICATION”) of Agreement File No. 853 (“Agreement”), Section 1.C. (“CONSIDERATION”) is amended to read as follows:
“1.C. CITY agrees to pay CONSULTANT an additional sum as specified in Exhibit B. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in Exihibt “B,” which is incorporated by reference.”
SECTION 2. Pursuant to Section 36 (“AUTHORITY/MODIFICATION”) of Agreement File No. 853 (“Agreement”), Section 8 (“TERM”) is amended to read as follows:
“8. TERM. The term of this Agreement will be from October 1, 2026, through June 30, 2029, unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances:
A. Completion of the work specified in Exhibit “A”;
B. Termination as stated in Section 16.”
SECTION 3. Exhibit “B” to the Agreement is replaced in its entirety with the attached “Exhibit B” which is incorporated by reference.
SECTION 4. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
SECTION 5. ELECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission.
Such electronic signature will be treated in all respects as having the same effect as an original signature.
4 City of Bellflower
Agreement File No. 853 – Amendment No. 7
Mercy House Living Centers
SECTION 6. SIGNER DECLARATION / VERIFICATION. The City requires verification that the person executing a contract has signature authority. Signature requirements for contracts vary depending on whether a vendor conducts business in the capacity of a corporation, general partnership, limited partners hip, or as an individual.
When the contract is with a corporation, California Corporations Code § 313 requires the contract to be signed by: (a) one officer from the corporation’s “operational group” consisting of the chairman of the board, the president, or any vice president; and (b) one officer from the corporation’s “financial group” consisting of the secretary, or assistant secretary, or the chief financial officer or any assistant treasurer. Alternatively, the board of directors for the corporation can delegate signature authority to a particular individual or individuals. This is generally memorialized in a form of a resolution adopted by the board of directors. When the contract is with a consultant conducting business as a general partnership or limited partnership, the contract should be signed by at least one general partner having authority to enter into the contract on behalf of the partnership.
When the contract is with an individual, that individual must sign the contract. By signing this Agreement, the person signing confirms they possess the authority to sign all legal binding agreements with the City of Bellflower on behalf of the company/organization listed. If a corporation, submit a copy of the document demonstrating signature authority to the City.
SECTION 7. Except as modified by this Amendment, all other terms and conditions of Agreement File No. 853 remain the same.
[SIGNATURES ON NEXT PAGE]
5 City of Bellflower
Agreement File No. 853 – Amendment No. 7
Mercy House Living Centers
We, the individuals named below, swear, under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind CONSULTANT to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF BELLFLOWER MERCY HOUSE LIVING CENTERS
_____________________________ ____________________________ Ryan Smoot, City Manager Larry Haynes, CEO
ATTEST: MERCY HOUSE LIVING CENTERS
_____________________________ ____________________________ Mayra Ochiqui, City Clerk Patti Long, Deputy CEO
APPROVED AS TO FORM:
Karl H. Berger, City Attorney
_____________________________
By: Solange Fortenbach, Taxpayer ID No. 33-0315864
Deputy City Attorney
ATTACHMENT:
Exhibit B – Mercy House October 1, 2026 – June 30, 2029, Budget
6 New Hope Shelter (October 1, 2026 - June 30, 2029) FY Breakdown 9 Months 12 Months 12 Months
Oct 1, 2026 - June 30, 2027 July 1, 2027 - June 30, 2028 July 1, 2028 - June 30, 2029 Description Volume BLI Total BLI Total BLI Total
Program manager 1.20 89,631.36 123,572.00 127,773.00 Sr. Site Lead 1.00 51,105.60 70,458.00 72,854.00 Site Lead 2.00 98,280.00 135,495.00 140,102.00 Navigation Supervisor/leasing 1.00 54,054.00 74,522.00 77,056.00 Navigator 2.00 94,348.80 130,076.00 134,499.00 Shelter Specialist FT 3.00 123,832.80 170,724.00 176,529.00 Shelter Specialist PT 1.25 49,140.00 67,748.00 70,051.00 Overnight 2.75 118,918.80 163,949.00 169,523.00 Saftey Coordinator 3.25 140,540.40 193,758.00 200,346.00 Driver Supervisor 0.75 39,803.40 54,876.00 56,742.00 Driver 2.50 110,565.00 152,432.00 157,615.00 Data/Reservation Specialist 0.69 29,729.70 40,987.00 42,381.00 Staff Sub-Total 999,949.86 1,378,597.00 1,425,471.00 Security 178,848.00 246,572.00 254,955.00 Meals 126,000.00 173,712.00 179,618.00 Client Services and Supplies 63,750.00 87,890.00 90,878.00 Transportation Costs (Lease, Fuel, Repairs, etc.)15,000.00 20,680.00 21,383.00 Shelter Maintenance (Pest Control, plumbing, Etc.)3,000.00 4,136.00 4,277.00 Insurance 54,000.00 74,448.00 76,979.00 Replacement Reserves 3,750.00 5,170.00 5,346.00 IT and Internet 5,250.00 7,238.00 7,484.00 Volunteer Expenses 750.00 1,034.00 1,069.00 Program Sub-Total 450,348.00 620,880.00 641,989.00 Indirect Costs 210,438.00 299,921.55 310,119.00 Total (NOT TO EXCEED PER FISCAL YEAR)1,660,735.86$ 2,299,398.55$ 2,377,579.00$ Indirect Costs 15%15%15%
7 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 6
MONTHLY REPORT
TEMPORARY SHELTER
Report Summary (7/1/2025 –6/30/2026)
Number Served
Month YTD
Number of Unduplicated Participants
15 120
Number of Exits
5 77
Coordinated Entry System Statistics
Number of Active Participants Enrolled in CES
37 % of Active Participants Enrolled in CES
93%
Number of Active Participants Matched to a Housing Opportunity 0 % of Active Participants Matched to a Housing Opportunity 0% % of Participants who have exited with a housing subsidy (YTD) 11% % of Participants who have exited without a housing subsidy (YTD) 89%
Data represents participants active at the end of the reporting month
Program Exits – Summary
Month YTD
Positive Exits
Perm, Temp, Institutions except Jail/Prison
2 17
Negative Exits
Emergency Shelter, Streets, Jail/Prison
3 25
Unknown Exits
Unknown, Deceased
0 35
9 Program Exits – Destination Detail
Benchmark: 30% of participants who exit to a known destination will exit to permanent housing.
Progress toward benchmark: 31% of participants who have exited to a known destination have exited to permanent housing.
Exits to Permanent Housing Month YTD
1 13
Rental by participant, no ongoing housing subsidy 1 6
Rental by participant, with VASH housing subsidy 0 1
Rental by participant, with other ongoing housing subsidy 0 1 Public Housing Unit 0 0
Rental by participant, with RRH or equivalent subsidy 0 1 Rental by participant, 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 0
Permanent Supportive Housing 0 3
Exits to Temporary Housing Month YTD
1 4
Staying or living with family, temporary tenure 1 3
Staying or living with friends, temporary tenure 0 1
Host Home (non-crisis) 0 0
Transitional housing for homeless persons 0 0
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
0 0
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 0 Jail, prison, or juvenile detention facility 0 0
Long-term care facility or nursing home 0 0
10 Exits to Homelessness Month YTD
3 25
Emergency shelter, including hotel or motel paid for with emergency shelter voucher
0 0
Place not meant for habitation (e.g., a vehicle, an abandoned building, bus / train / subway station / airport or anywhere outside)
3 25
Exits to Other Destinations Month YTD
0 35
No Exit Interview Completed 0 35
Deceased 0 0
Participant Doesn't Know/Participant Prefers not to answer 0 0
Data above represents unduplicated clients and may adjust month over month if clients return to the shelter after exitin g.
11 Length of Stay – Year to Date
Benchmark: Between May 2020 to June 2025, the average length of stay at New Hope was 123 days.
Progress toward benchmark: Shelter average is 98 days year-to-date.
Benchmark: Between May 2020 to June 2025, the average length of stay at New Hope for a permanent housing placement was 371 days.
Progress toward benchmark: Shelter average is 93 days year-to-date.
Total number of shelter bed nights provided year-to-date: 13,758
*The chart above may include duplicate participant enrollments.
22 44
41 35
29 4
0 5
10 15
20 25
30 35
40 45
50 1-7 Days 8-30 Days 31-90 Days 91-180 Days 181-365 Days >365 Days 12 Demographics
Age
Race & Ethnicity
5 18
32 32
22 11
0 5
10 15
20 25
30 35
18-24 25-34 35-44 45-54 55-64 65+
1 1
1 1
1 19
27 31
38 0 5 10 15 20 25 30 35 40
American Indian, Alaskan Native, or Indigenous
Asian or Asian American
Middle Eastern or North African
Multiracial- More than 2 races/ethnicity, with one being Hispanic/Latina/e/o
Hispanic/Latina/e/o & American Indian, Alaska Native, or Indigenous
Black, Afircan American, or African
Hispanic/Latina/e/o
White& Hispanic/Latina/e/o
White
13 Gender
Veteran Status
37 83
Women Man
4 116
Veteran Non Veteran
14 Chronically Homeless
42 78
Chronically Homeless Non- Chronically Homeless
15 Housing Navigation Updates
Services Count of Services provided
Financial Services 1
Case Management 88
Housing Plans 37
Employment opportunity 4
Successful completion 0
Leasing Updates
Active Participants Referral for the Month
5 New Participant Referrals
5 Average Participant Income
$2,000
Goals Totals
Housing Leads Provided 25 25
Qualifying Leads 10 10
Housing Leads Declined 5 4
Landlord Engagement 100 120
Appointments with Guests 25 10
Appointments Missed by Guests 5 0
Applications Submitted 5 2
Guests Housed 1 1
16 Successes
Housing
• The Housing Solution Navigator Supervisor (HSNS) provided Section 8 Permanent Supportive Housing leads for Springdale West Apartments, which is accepting applications from June through October 2026. Seven clients obtained applications and will follow up in the coming weeks to initiate the waiting list application process.
Additionally, the Leasing Agent shared alternative shared housing opportunities with three income-qualified clients. Outreach efforts will continue to expand housing placement opportunities and support clients in securing stable housing.
• A guest was successfully housed on 06/30/26 at Salony House Senior Apartment.
Job Success:
• Four clients are currently working toward saving money to move into housing and are actively looking for a shared room or studio apartment with rent around $1,000 per month.
• The Housing Navigator is working with each client to achieve these goals by developing budgets and individualized housing plans.
Challenges
No challenges to report for the month of June 2026.
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