DATE: November 7, 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 $495,000 for a Total Not-To-Exceed Amount of $2,545,000
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to amend the agreement with First Presbyterian Church of Hayward to increase the Winter Warming Shelter contract by $495,000 for a total not-to-exceed amount of $2,545,000 to allow for year-round operations through the end of Fiscal Year 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. With current funding, the shelter can only remain open through the third quarter of FY 2023-24. As a response to this need, City staff reached out to the County for support and the County agreed to contribute $150,000 to support the ongoing operation of the shelter. To continue this program through the end of FY 2023-24 and supplement the County’s support, staff recommends allocating $495,000 in Hayward Evaluation and Response Teams (HEART) program savings to FPCH’s existing contract through 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 7 p.m. until 7 a.m. and provided dinner and breakfast services for its clients.
On April 27, 2021, Council accepted American Rescue Plan Act of 2021 (ARPA) funds in response to the ongoing impacts of the COVID-19 pandemic and directed staff to develop a Federal Stimulus Expenditure Plan. On July 13, 2021, Council approved the City of Hayward Federal Stimulus Expenditure Plan and Let’s House Hayward (LHH) Strategic Plan, which detailed goals for reducing homelessness in Hayward and strategies and action steps required to achieve those goals.
As an identified action step in both the Hayward Federal Stimulus Expenditure Plan and LHH Strategic Plan, FPCH expanded services at the Winter Warming Shelter to operate year-round instead of only during inclement weather. 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, the extension and distribution of remaining funds were not executed prior to the end of Fiscal Year 2023 due to constrained provider capacity caused by increased demand for shelter services and necessary changes to the scope of work. Staff went back to Council on August 15, 2023, to finalize these changes and Council authorized the City Manager to allocate an additional $405,868 in remaining FY 2023 funds allocated by the Federal Stimulus Expenditure Plan and extend the Winter Warming Shelter agreement through FY 2023-24.
DISCUSSION
FPCH recently notified the City that, even with the ARPA allocation for FY 2023-2024, they still had a funding gap to cover operations for the full duration of FY 2023-2024. FPCH informed the City that their current funding, inclusive of ARPA, allows the shelter to only remain open through the third quarter of FY 2023-24. To continue the shelter for the entirety of FY 2023-24, FPCH requires an additional $645,000. City staff engaged Alameda County Supervisor Márquez’s office to contribute $150,000 to this funding gap. Staff are now bringing this item to Council with the recommendation to fund the balance of the remaining gap from General Fund savings related to the administration of the HEART program (see Table 1).
Table 1: Winter Warming Shelter Services FUNDING GAP
FBCH FY 2023-24 Funding Gap
Amount
FBCH FY 2023-24 Quarter 3 Funding Gap
$645,000
FY 2023-24 Funding Contributions
Alameda County Contributions
$150,000
Proposed FY 2023 HEART Program Savings
$495,000
Subtotal – Funding Contributions
$645,000
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. 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.
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 of 18 and 62 and over 75% (n=652) identify as men.
If the expanded Winter Warming Shelter services were to close, those who are unhoused who use those services would no longer have access to basic human needs at the site, and without these human needs being met, individuals may resort to unlawful activity to meet their survival needs of food, water, and use of a restroom. It is possible the surrounding community would see an increase in crime and a decrease in the quality of life for Hayward residents. Consequently, the lack of these services could also increase demand for the already strained emergency medical and law enforcement systems.
The City’s HEART program response teams routinely utilize South Hayward Parish’s shelter services, and the shelter is a vital service that mitigates harm in the community. Given the frequent collaboration between HEART and South Hayward Parish and the reliance on shelter services by HEART, the HEART team proposed allocating Fiscal Year 2022-2023 program savings to ensure their ongoing ability to keep the nightly shelter open. Staff recommend that Council authorize the City Manager to amend the existing professional services agreement with FPCH to increase the contract amount by $495,000 funded by unspent HEART program savings generated from delayed program launch (see Table 2).
Table 2: Winter Warming Shelter Services AGREEMENT RECOMMENDED AMOUNT INCREASE Original agreement
Amount
FY 2022 General Fund Allocation
$25,000
FY 2023 General Fund Allocation
$25,000
FY 2022 ARPA Year 1 Allocation
$1,619,314
FY 2023 ARPA Year 2 Allocation
$380,686
Subtotal
$2,050,000
Recommended amendment
FY 2024 HEART Program Savings
$495,000
Total excluding County contribution
$2,545,000
Staff are working with South Hayward Parish and Alameda County to identify funding to continue the shelter as a nightly service after FY 2023-24.
ECONOMIC IMPACT
There is a positive economic impact from addressing unsheltered homelessness by moving individuals into emergency housing with supportive services to help transition them to more permanent housing opportunities.
FISCAL IMPACT
This item is a one-time transfer from the HEART pilot program savings and has no ongoing fiscal impact on the General Fund.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect, and Produce Housing, under Project H2: Implement the Homelessness Reduction Strategic Plan
NEXT STEPS
If Council approves, staff will move forward to increase First Presbyterian Church of Hayward’s contract amount by $495,000 and execute the contract amendment for FY 2023-24.
Prepared by: Emily Hwang, Management Analyst I
Recommended by: Amy Cole-Bloom, Community Services 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: CITY OF HAYWARD - Meeting of City Council on 7/13/2021 at 6:00 PM (legistar.com) 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= August 15, 2023 City Council Meeting Agenda and Materials: CITY OF HAYWARD - File #: CONS 23-445 (legistar.com)