Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: SERGIO COREAS, HOMELESSNESS SOLUTIONS AND HOUSING
MANAGER
DATE: AUGUST 26, 2025
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH KINGDOM CAUSES, INC. DBA CITY NET
EXECUTIVE SUMMARY
The City Council will consider approving Amendment No. 1 to the Professional Services Agreement with Kingdom Causes, Inc. dba City Net to extend the term of the agreement for one additional year through August 31, 2026, and to increase the not-to-exceed amount by $673,814, for continued homeless outreach services in the City of Downey.
RECOMMENDATION
That the City Council:
1. Approve Amendment No. 1 to the Professional Services Agreement with Kingdom Causes, Inc. Dba City Net to extend the term of the agreement from September 1, 2025 to August 31, 2026; and, increase the contract not-to- exceed amount by $673,814 for a new total of $1,088,250; and,
2. Authorize the Mayor to execute Amendment No. 1.
BACKGROUND
On August 27, 2024, the City Council approved a Professional Services Agreement with Kingdom Causes, Inc. dba City Net (City Net) for a one-year term beginning September 1, 2024, through August 31, 2025, in the amount of $414,436. The agreement was funded through the City’s Permanent Local Housing Allocation (PLHA) grant.
Since initiating the agreement, City Net has served as a key partner in advancing the City’s strategic plan to prevent and combat homelessness. The program began with one full time outreach team of two case managers dedicated exclusively to Downey. As of July 2025, the program has expanded to two outreach teams, a total of four full time case managers, allowing for greater Citywide coverage and improved response capacity. City Net outreach teams have been embedded in City operations and work closely with the
APPROVAL OF AMENDMENT NO.1 TO PROFESSIONAL SERVIES AGREEMENT WITH KINDOM CAUSES, INC. DBA CITY NET
AUGUST 26, 2025
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Homelessness Solutions Manager, the Downey Police Department, Code Enforcement, and Public Works.
Over the last year, City Net has been instrumental in:
• Conducting daily outreach and engagement to unsheltered individuals • Providing case management, housing navigation, and documentation support • Referring clients to medical, mental health, and substance use treatment services • Supporting encampment resolution efforts through coordinated response • Assisting in family reunification and relocation when appropriate • Coordinating with landlords to secure housing opportunities • Assisting the City in conducting a local homeless census to improve data accuracy In Fiscal Year (FY) 2024–2025, City Net worked with over 320 individuals, connected dozens of individuals to shelter or services, and facilitated multiple successful housing placements. They also played a key role in high-impact cleanups in coordination with LA County, Caltrans, and Union Pacific, including encampments along the Rio Hondo and major underpasses.
ANALYSIS
Amendment No. 1 to the Professional Services Agreement with City Net will allow the City to continue its comprehensive outreach and engagement efforts aimed at addressing homelessness. Since the start of the agreement in September 2024, City Net has provided critical frontline services to individuals experiencing homelessness, including direct outreach, case management, transportation, housing navigation, and coordination with health and behavioral care providers.
Under the current agreement, City Net maintains a two-person outreach team assigned exclusively to Downey. These staff members operate full-time and are fully embedded within City operations, working closely with the Homelessness Solutions and Housing Manager, Downey Police Department, Code Enforcement, and Public Works to deliver trauma-informed, coordinated responses. Their presence has helped streamline service delivery, reduce response times to encampment-related complaints, and increase the City’s capacity to connect unhoused residents to shelter and care.
From September 2024 through June 2025, City Net completed:
• 601 client engagements
• 326 individuals enrolled into outreach services
• 45 positive exits to emergency shelter, temporary housing, or permanent placements
• 391 direct services delivered (including transportation, referrals, and document support)
APPROVAL OF AMENDMENT NO.1 TO PROFESSIONAL SERVIES AGREEMENT WITH KINDOM CAUSES, INC. DBA CITY NET
AUGUST 26, 2025
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• 7 clients prepared with full documentation, making them eligible for housing assistance
These efforts have contributed to a measurable decrease in the City’s year-over-year homeless count. According to the 2025 LAHSA Point-in-Time Count, Downey’s unsheltered population declined from 82 in 2024 to 32 in 2025, a 61% reduction. The number of improvised dwellings (tents, vehicles, and makeshift shelters) also dropped from 101 to 22, a 78% decrease. While many factors influence these numbers, the consistent presence of City Net’s outreach teams has been a key driver in connecting individuals to shelter and housing, resolving encampments, and reducing visible homelessness throughout the community.
City Net's continued outreach has been targeted at priority corridors such as Firestone Boulevard, Lakewood Boulevard, Brookshire Avenue near the Downey Library, and the San Gabriel Riverbed, where the presence of improvised dwellings has historically been concentrated.
In partnership with the City’s Homelessness Solutions Team, City Net also supports weekly encampment cleanups through multi-agency coordination. Outreach staff are present during field operations and provide real-time assessments, resource referrals, and transportation to shelters or clinics. They also respond to community-submitted requests via the Downey App and Police Dispatch, ensuring a Citywide coverage model that is both proactive and responsive. The increase in the FY 2025–2026 budget from $414,436 to $673,814 is primarily attributed to the expansion of outreach capacity. As of July 2025, City Net has increased staffing from one team of two full-time outreach and case managers to two teams (four full-time staff total), allowing for greater citywide coverage, increased service frequency, and faster response times.
In addition to expanded outreach services, this amendment also includes funding for a one-time City-managed homeless census to be conducted in FY 2025–2026. The census will be coordinated by the Homelessness Solutions Team in partnership with City Net and will provide updated, localized data to supplement the regional Point-in-Time Count. This initiative will include GIS mapping, survey administration, and community engagement to ensure comprehensive coverage. The resulting report will offer detailed demographic, geographic, and service-need data to better inform the City’s strategic homelessness response. The updated budget, reflecting these staffing enhancements, is included as Attachment 1 to Amendment No. 1 to the agreement.
All services align with eligible uses under the Permanent Local Housing Allocation (PLHA) funding source. The Homeless Census, however, is not an eligible PLHA expense and will be funded through the City’s General fund at a cost of $35,011. In addition, while PLHA allows the recovery of up to 5% in administrative costs, the remaining 5% administrative cost, totaling $29,037, will be funded from the General Fund. With this
APPROVAL OF AMENDMENT NO.1 TO PROFESSIONAL SERVIES AGREEMENT WITH KINDOM CAUSES, INC. DBA CITY NET
AUGUST 26, 2025
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amendment, the overall contract value will increase from $414,436 to $1,088,250. A copy of the updated scope and budget is included as Exhibit C to the agreement.
Approval of this amendment ensures the uninterrupted continuation of the City's core homelessness response activities. It will also preserve staffing consistency, maintain progress made through the City Net partnership, and support the City's commitment to housing-focused, service-driven engagement.
CITY COUNCIL PRIORITIES
Efficiency & Adaptability
Quality of Life, Safety & Infrastructure
Public Engagement
FISCAL IMPACT
The proposed amendment will increase the not-to-exceed contract amount by $673,814, bringing the total contract value to $1,088,250. Of this total, $638,802 will be funded through the Permanent Local Housing Allocation (PLHA) grant under Account No. 27-4- 6737-0700. The remaining $64,048, which includes $35,011 for the one-time Homeless Census and $29,036.47 in administrative costs not eligible under PLHA, will be funded through the City’s General Fund under Account No. 10-4-1112-6737-0700 as adopted and included in the Fiscal Year 2025-2026 Operating Budget.
ATTACHMENTS
Attachment A: Amendment No. 1 to the Professional Services Agreement with Kingdom Causes, Inc. dba City Net