DATE: August 15, 2023
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Amend the Professional Services Agreement with First Presbyterian Church of Hayward to Increase the Winter Warming Shelter at South Hayward Parish Contract Amount by $405,686 for a Total Not-To-Exceed Amount of $2,050,000
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to amend the agreement with First Presbyterian Church of Hayward to: 1) increase the Winter Warming Shelter Contract by $405,868 for a total not-to-exceed amount of $2,050,000 and 2) modify the contract term to end on June 30, 2024.
SUMMARY
Since 2018, First Presbyterian Church of Hayward (FPCH) has received funding support from the City of Hayward to operate an emergency shelter at its South Hayward Parish location. This program was originally conceived of as a Winter Warming Shelter, offering 18 drop-in beds to unhoused individuals during instances of inclement weather. In July of 2021, Council authorized the expansion of the Winter Warming Shelter into a year-round program as part of its Federal Stimulus Expenditure Plan in response to the COVID-19 pandemic.
In its first eighteen months of expanded operations, the year-round shelter provided services to 870 Hayward residents. The year-round shelter is an important resource to the City’s population of single adults experiencing homelessness. To continue this program, staff recommends an extension to FPCH’s existing contract through FY 2024. This extension would utilize previously appropriated funds allocated to this project as part of the Federal Stimulus Expenditure Plan for FY 2023. This funding remained unspent in FY 2023 due to unforeseen circumstances delaying the execution of the contract extension into FY 2024.
BACKGROUND
Beginning on December 1, 2018, FPCH offered emergency shelter services at its South Hayward Parish location with funding support from the City. From 2018 through 2021, the Winter Warming Center provided 18 nightly shelter beds during the fall and winter months, when temperatures fell below 45 degrees or there was a high chance of rain. During these months, the shelter operated from 7pm until 7am and provided dinner and breakfast services for its clients.
On March 6, 2021, in response to the ongoing impacts of the COVID-19 pandemic, Congress enacted the “American Rescue Plan of 2021” (ARPA), which included $38,465,994 in state and local fiscal recovery funds (SLFRF) allocated to the City of Hayward. Council accepted this funding and called for staff to develop a Federal Stimulus Expenditure Plan on April 27, 2021.
At its July 13, 2021, meeting, Council adopted the Let’s House Hayward (LHH) Strategic Plan which synthesized community, Council, and staff input collected through listening sessions, community forums, focus groups, and interviews conducted from October 2020 through June 2021. The final LHH Strategic Plan detailed the overarching goals for reducing homelessness in Hayward and the strategies and action steps required to achieve those goals. At the same meeting, Council approved the City of Hayward Federal Stimulus Expenditure Plan and authorized the City Manager to execute agreements with vendors, including FPCH, to implement the homelessness response projects outlined in the Federal Stimulus Expenditure Plan and designed according to the LHH Strategic Plan.
The Federal Stimulus Expenditure Plan and the LHH Strategic Plan included expanded services at the Winter Warming Shelter and the shelter began offering its expanded service hours in October 2021. On July 5, 2022, Council authorized an extension to the Winter Warming Shelter agreement to continue extended operations using the remaining funds allocated by the Federal Stimulus Expenditure Plan and received from the US Treasury in June 2022. However, due to constrained provider capacity caused by the increased demand for shelter and necessary changes to the scope of work, including the closing of the daytime resource center in March of 2023, the agreement was not executed prior to the end of Fiscal Year 2023.
DISCUSSION
In the first eighteen months of expanded operations, FPCH reported serving 1,499 individuals experiencing homelessness from throughout Alameda County, 58.0% (n=870) of whom were from Hayward. As the only drop-in emergency shelter serving single adults experiencing homelessness in Hayward, the expanded Winter Warming Shelter provides a critical service to the City’s unhoused population. Other emergency shelters supported by the City require referrals or have other specific criteria.
According to the City’s 2022 Point-in-Time (PIT) count, 74.6% of people experiencing homelessness in Hayward are adults over the age of 25 and 70.5% report living alone. Adult men constitute the largest population of unhoused individuals in Hayward, representing 64% of all individuals experiencing homelessness and 69% of unsheltered individuals. Since beginning its expanded services, adult men have been the Winter Warming Shelter’s primary clients. Approximately 80% (651) of individuals served at the Winter Warming Shelter are between the ages for 18 and 62 and over three quarters (n=652) identify as men.
The City’s Federal Stimulus Expenditure Plan allocated a total of $2 million in stimulus funding over the life of the program. The City received its stimulus funding in two annual tranches in FY 2022 and FY 2023. The federal stimulus funding for the shelter services are supplemented by $25,000 in General Fund contributions each Fiscal Year. The initial agreement with FPCH was for an amount not to exceed $1,644,314, which was primarily funded through the first tranche. The remaining allocation will be funded with the second tranche of stimulus funds upon its receipt by the City in FY 2023. A complete breakdown of the funding allocated to the shelter program through the Federal Stimulus Expenditure Plan can be found in Table 1.
Table 1: Winter Warming Shelter Services Federal Stimulus Expenditure Plan Funding Original Agreement
Amount
FY 2022 General Fund Allocation
$25,000
FY 2022 ARPA Year 1 Allocation
$1,619,314
Subtotal
$1,644,314
Recommended Amendment
FY 2023 General Fund Allocation
$25,000
FY 2023 ARPA Year 2 Allocation
$380,686
Subtotal
$405,686
Total
$2,050,000
To continue year-round operations at the Winter Warming Shelter, staff recommends that Council authorize the City Manager to amend the existing professional services agreement with FPCH to increase the contract amount by $405,686 for a not-to-exceed amount of $2,050,000 through the end of FY 2024. Additionally, staff recommends that Council approve extension of the contract term through June 30, 2024.
Staff are working with South Hayward Parish and Alameda County to identify funding to continue the shelter as a nightly service once stimulus funding is no longer available.
ECONOMIC IMPACT
There is a positive economic impact from reducing homelessness and poverty and moving individuals into permanent housing as part of the Hayward Navigation Center operations.
FISCAL IMPACT
This item has no associated fiscal impact to the General Fund. All funds associated with the referenced agreements have been previously appropriated by Council.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect, and Produce Housing, under Project H2: Implement the Homelessness Reduction Strategic Plan
PUBLIC CONTACT
This item is related to the Let’s House Hayward (LHH) Strategic Plan, under Strategy 2.1. Through the LHH process, Homebase, City staff, and partners throughout the Hayward community have worked together to engage a diverse set of stakeholders to inform the plan and strategy for Hayward moving forward.
NEXT STEPS
Prepared by: Rick Rivera, Management Analyst II
Recommended by: Amy Cole-Bloom, Acting Community Services Manager Dustin Claussen, Assistant City Manager
Approved by:
__________________________________
Kelly McAdoo, City Manager
April 27, 2021 City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=4923169&GUID=F3B939CF-3D97-4F0A-A5AE-8F3A12255314&Options=&Search= July 13, 2021 City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317-E2797DF45328&Options=&Search= July 5, 2022 City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=5709698&GUID=55CE1563-86DB-4F2F-8D3E-F5ADBBB68E84&Options=&Search= For more information on the Let’s House Hayward! Strategic Plan process, please visit https://www.haywardca.gov/lets-house-hayward