Fremont City Council Meeting: 04/15/25 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5405) DOC ID: 5405
Updated: 4/9/2025 6:07 PM by Dina Lewis Page 1
ALAMEDA COUNTY HOUSING COMMUNITY SUPPORTS AMENDMENT - Authorize the City Manager to Execute a Third Amendment to Provide Housing Transition Navigation and Housing Tenancy and Sustaining Services and Making Findings of CEQA Exemption
Contact Persons:
Name: Alina Kwak Arquimides Caldera
Title: Family Resource Center
Administrator
Human Services Director
Div/Dept: Human Services Department Human Services Department Phone: 510-574-2004 510-574-2056
E-Mail: [email protected] [email protected]
Executive Summary: Medi-Cal, California’s Medicaid health care program for children and adults, is currently undergoing a transformation to enable Medi-Cal to work more seamlessly with other social services. This system transformation is known as California Advancing & Innovating Medi-Cal (CalAIM). As part of CalAIM, Alameda County Health (ACH) has contracted with the City to provide unhoused individuals and families with Housing Community Supports, including Housing Transition Navigation Services (HN), Tenancy, Sustaining Services (TSS), and one-time rental deposits through June 30, 2026.
These activities directly support the recommendations made in the City’s Homeless Response Plan. Staff recommends the City Council: (1) Authorize the City Manager, or her designee, to execute a Third Amendment to the current Agreement with ACH in an amount not-to-exceed $834,600, for the City to provide HN, TSS, and one-time rental deposits; and (2) Make findings of CEQA exemption.
BACKGROUND: Medi-Cal is California’s Medicaid health care program. This program pays for services for children and adults with limited income and resources. Currently, the Medi-Cal program is undergoing a transformative system change to CalAIM, with the goal of:
• Improving population health using a whole person care model and social determinants of health,
• Reducing complexity and variation, and increasing flexibility of services across Medi-Cal, and
• Improving quality outcomes, reducing health disparities, and modernizing systems through value-based initiatives and payment reform.
As part of this CalAIM program, ACH’s Office of Housing and Homeless Services has spearheaded the County’s effort to expand Housing Community Supports program for unhoused populations. This program is funded through a combination of CalAIM funding from Alameda Alliance for Health, Kaiser Permanente, as well as additional County general funds.
The Human Services department has provided Medi-Cal funded services to South County residents for many years, including mental health services, substance use disorder services Council Staff Report (ID # 5405) Meeting of April 15, 2025 Updated: 4/9/2025 6:07 PM by Dina Lewis Page 2
and targeted Case Management services. Serving low-income clients will necessitate the City’s continued involvement in the CalAIM system.
ACH currently contracts with providers, including the City, for Housing Community Supports (HCS), including Housing Transition Navigation Services (HN), Tenancy and Sustaining Services (TSS) and one-time flexible Housing Deposits (HD). According to the County, current capacity does not meet the need to support the nearly 9,500 people experiencing homelessness at this time (approximately 2,000 of whom are in County housing queues).
The City and County initially entered into an Agreement for HCS-related services for calendar year 2023. The City and County then entered into a First Amendment to the Agreement for the City to provide these services in calendar year 2024, as well as a Second Amendment in 2024 that extended the Agreement through June 30, 2025, and aligning the contract with the fiscal year.
DISCUSSION/ANALYSIS: For FY 2025/26, ACH seeks to enter into a Third Amendment to its Agreement with the City of Fremont to expand the total number of client “slots” to up to 65 to:
• Maintain combined strength-based housing transition navigation services and/or housing tenancy and sustaining services for homeless and formerly homeless individuals living in or transitioning to HCSA designated permanent housing units, and;
• Administer one-time flexible housing deposits for consumers authorized by HCSA to assist with costs associated with move-in expenses.
These activities directly support the recommendations made in the City’s Homeless Response Plan. The per client reimbursement rate by ACH is $620 per month. ACH has designated up to 65 client “slots” for the City with a one-time housing deposit of up to $5,000 per client. The pre-enrollment outreach fee is $10 to $30 per encounter, depending on the length of the encounter. Based on these assumptions, staff estimates a not-to-exceed sum of $834,600 for the Third Amendment, as shown below:
FY 2025/26 “Services as Needed” Third Amendment Structure
Rate Slots Encounters Months
Total
Amount
Services as Needed $620 65 12 $483,600
Pre-enrollment Outreach $20 65 20 $26,000
Housing Deposit $5,000 65 N/A $325,000
Total: $834,600
FISCAL IMPACT: There is no impact on the General Fund. To meet the required ratio of clients to care manager, revenue from the third Amendment supports 2.6 FTE Case Managers. The Third Amendment will also cover the cost of housing deposits, as well as internal service costs.
Council Staff Report (ID # 5405) Meeting of April 15, 2025 Updated: 4/9/2025 6:07 PM by Dina Lewis Page 3
In anticipation of this program, staff will include a revenue estimate and sufficient appropriations in the ACH Housing Community Supports account in the Miscellaneous Operating Grants Fund (Fund 190), as part of the FY 2025/26 Proposed Operating Budget.
ENVIRONMENTAL REVIEW: The action is exempt from CEQA pursuant to, without limitation, CEQA Guidelines Section 15378(b)(2), (4) and/or (5) and/or 15061(b)(3), each as a separate and independent basis for CEQA exemption, as it is a fiscal or administrative activity of a government agency that has no possibility, either directly or indirectly, to cause a significant effect on the environment.
ATTACHMENTS: None.
RECOMMENDATIONS:
1. Authorize the City Manager, or her designee, to execute a Third Amendment with Alameda County in an amount not-to-exceed $834,600 for the City to provide Housing Transition Navigation and Housing Tenancy and Sustaining Services.
2. Find that the action is exempt from CEQA pursuant to, without limitation, CEQA Guidelines Section 15378(b)(2), (4) and/or (5) and/or 15061(b)(3), each as a separate and independent basis for CEQA exemption, as it is a fiscal or administrative activity of a government agency that has no possibility, either directly or indirectly, to cause a significant effect on the environment.