DATE: 12/03/2025
TO: Honorable Mayor and City Council Members
FROM: Housing and Homeless Solutions, City Manager’s Office 2025-355
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
FIRST AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT WITH CITY NET AND FIRST AMENDED AND RESTATED CITY OF NORCO MOU.
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve a First Amended and Restated Professional Services Agreement with Kingdom Causes, Inc. DBA City Net and a First Amended and Restated Memorandum of Understanding with the City of Norco.
RECOMMENDED ACTION:
That the City Council:
a. Approve the attached First Amended and Restated Professional Services Agreement with Kingdom Causes, Inc. DBA City Net, for collaborative homeless services, retroactive from October 1, 2024, to June 30, 2026, in the total maximum compensation amount of $3,950,496, which includes $3,429,500 for Corona and $520,996 for Norco.
b. Authorize the City Manager, or his designee, to execute the attached First Amended and Restated Professional Services Agreement with Kingdom Causes, Inc. DBA City Net.
c. Authorize the City Manager, or his designee, to approve non-substantive amendments to the attached First Amended and Restated Professional Services Agreement with Kingdom Causes, Inc. DBA City Net, including term extensions, line-item adjustments and hourly compensation rate increases within the Hourly Rate Range Maximum provided in Exhibit “D”, so long as any such amendments will not cause the City to exceed the approved total maximum compensation included in the First Amended and Restated Professional Services Agreement. d. Authorize the City Manager, or his designee, to approve the attached First Amended and Restated Memorandum of Understanding between the City of Corona and the City of Norco for collaborative homeless services, retroactive from July 1, 2025, to June 30, 2026 for a maximum amount of $568,360 which includes $520,996 for City Net Norco and $47,363 in Admin Fees for the City of Corona. e. Authorize the City Manager, or his designee, to approve non-substantive amendments, including term extensions, line-item adjustments and hourly compensation rate increases within the approved program budget of the First Amended and Restated Memorandum of Understanding between the City of Corona and the City of Norco.
BACKGROUND & HISTORY:
On June 21, 2023, the City Council adopted the City of Corona Budget for FY 2024, which included funding to support City Net Collaborative Homeless Services for the cities of Corona and Norco beginning July 1, 2023.
On June 21, 2023, the Corona City Council and Norco City Council approved agreements with the County of Riverside for Encampment Resolution Funding for a retroactive term of February 1, 2023, through September 30, 2025. As part of the grant application process with the County, City Net was approved as the contracted operator for the client services components of the grants for Corona and Norco.
On December 6, 2023, the City Council authorized the City Attorney and City Manager to prepare and approve a Second Amendment to the City Net Agreement and the Norco Memorandum of Understanding (MOU) both with terms ending September 30, 2025.
On January 17, 2024, the City Council approved a Second Amendment to the City Net Agreement, retroactive from July 1, 2023, to September 30, 2025. The retroactive approval allowed the cities of Corona and Norco to maximize grant resources to leverage City funds in Corona and Norco.
On June 5, 2024, as part of the adoption for the FY 2025 Budget, the City Council approved an allocation of $2.2 million in Measure X funds for the City Net Corona Program.
On June 4, 2025, as part of the adoption of the FY 2026 Budget, the City Council approved an allocation of $1.5 million in Measure X funds for the City Net Corona Program and authorized continuing appropriations to carry over the FY 2025 funding allocated to the City Net Corona Program.
On June 18, 2025, the City Council approved an amendment to the County of Riverside Santa Ana Riverbed Encampment Resolution grant to receive $114,580 in unexpended funds from the City of Norco, bringing the maximum obligation of Corona’s agreement to $1,186,014.
ANALYSIS:
Housing and Homeless Solutions have been successful in securing a number of different grants to fund programs in the cities of Corona and Norco. The retroactive nature of the City Net Agreement is consistent with prior City Council action to maximize grant resources to leverage City funds.
Santa Ana Riverbed Encampment Resolution Funding
The City Net Agreement includes Santa Ana Riverbed Grant funding that was transferred from the City of Norco to the City of Corona to retroactively pay for eligible encampment resolution services during the months of October 2024 through January 2025.
Corona Measure X Funding
The Measure X funds that the City Council allocated to City Net Corona for FY 2025 and FY 2026 were delayed in being added to the City Net Agreement in order to meet critical deadlines associated with multiple grants in both cities. The delay allowed both cities to maximize charges to grant funds and thus reduce impact on City general funds for Corona and Norco as well as to avoid recapture of grant funds and to comply with spending and reporting deadlines.
Norco Funding
On June 18, 2025, the Norco City Council approved a $568,360 allocation of funding to support homeless services in Norco. The allocation includes $520,996 for City Net Norco services as well as $47,363 in administrative fees for the City of Corona to provide contract management services for Norco. The Norco City Council allocated these funds from their general funds and housing funds. The Corona/Norco MOU model has been recognized by Cal Cities and the County of Riverside as a best practice in city partnerships to address homelessness.
City Net Hourly Rates and Position Changes
City Net Corona services that are retroactive from October 1, 2024, to June 30, 2025, are within the salary rate ranges previously approved by the City Council in the Second Amendment to the City Net Agreement. City Net services beginning July 1, 2025, through June 30, 2026, for both Corona and Norco will be charged at the position rates outlined in the tables below:
City Net Hourly Rates and Position Changes (continued)
CITY NET NEW HOURLY RATES FOR EXISTING POSTIONS
Title/Role Old Rate
$/HR
New Rate
$/HR %
Regional Program Director $50.19 $63.52 26.56%
Program Supervisor $44.17 $47.37 7.24%
Case Manager $36.62 $40.45 10.46%
Case Manager (OT) $54.93 $60.68 10.47%
Data Entry and Reporting $37.31 $37.72 1.10%
Executive Leadership $99.00 $105.68 6.75%
Project Finance $49.12 $53.91 9.75%
Project Human Resources $49.20 $44.57 -9.41%
Project Operations $41.19 $41.52 0.80%
As noted in Recommended Action C, the City Manager would have the authority to approve hourly rate increases of up to $10/hour for each position, so long as such increase will not cause the City to exceed the approved program budgets.
FINANCIAL IMPACT:
CITY NET NEW POSITIONS
Title/Role Rate
$/HR
Housing
Navigator $40.45
Case Manager
(CMRC) $37.72
As noted in Recommended
Action C, the City Manager
would have the authority to
approve hourly rate increases
of up to $10/hour for each
position, so long as such
increase will not cause the
City to exceed the approved
program budgets.
CITY NET DELETED
POSITIONS
Title/Role Rate
$/HR
Field
Supervisor $44.17
Community
Resource
Manager
$43.56
Dispatch $31.00
There is no financial impact associated with the approval of the recommended actions.
Funds were previously approved and appropriated through prior City Council Actions. A breakdown of the funds is outlined as follows:
Norco Funds: Funds for the Norco MOU were included as part of the June 4, 2025, budget adoption. The $568,360 MOU with the City of Norco will provide funding for the additional costs incurred with City Net for Norco services totaling $520,996 as well as $47,363 for reimbursement of Corona’s administrative costs. Corona’s administrative costs include reviewing and processing vendor payments, contract management, and other administrative activities.
Corona Funds: Funds for the $3,429,500 Corona services were added to appropriations as follows:
a) June 4, 2025, City Council budget adoption to authorize continuing appropriation in Measure X Homeless Programs funds to carryover from FY 2025 to FY 2026 for City Net Corona FY 2025 services
b) June 4, 2025, City Council budget adoption to authorize FY 2026 Homeless Programs allocation for City Net Corona FY 2026 services c) June 18, 2025, City Council approval to receive and appropriate City of Norco encampment resolution grant funds to the City of Corona for City Net Corona services
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the approval of a First Amended and Restated Professional Services Agreement with City Net and a First Amended and Restated MOU with the City of Norco to provide homeless services in the City of Corona and the City of Norco. Approval of these agreements and provision of homeless services will not have a significant effect on the environment. Therefore, no environmental analysis is required PREPARED BY: KAREN ROPER, HOUSING & HOMELESS SOLUTIONS MANAGER REVIEWED BY: JACOB ELLIS, CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – First Amended and Restated Agreement with City Net
2. Exhibit 2 – Corona Santa Ana River Bottom Agreement with County
3. Exhibit 3 – Corona Santa Ana River Bottom Amendment to Agreement with County
4. Exhibit 4 – First Amended and Restated MOU with City of Norco