Approval of Agreement with Mercy House to Operate the City’s Homeless Navigation Center City Council Meeting
September 16, 2025
Navigation Center Overview
Located at: 17642 Beach Boulevard
Opened: 2020
Operated by: Mercy House
Beds: 164 (reduced from 174 in July 2025 to align with demand and manage expenses) Services Include:
24/7 shelter and meals
Case management and housing navigation
Medical and mental health coordination
Life skills, job readiness, and transportation
Goal: Help clients in transition into permanent housing
Impact Since Opening
990 individuals served
More than 200 housing placements
2024 average daily occupancy: 158 (91% occupancy)
Key populations served in 2024:
82 seniors
18 veterans
800+ supportive services delivered annually
Types of services: employment support, health care coordination, recovery groups, and life skills training.
Client Profile
The Navigation Center serves clients with complex challenges:
80% had at least one disabling condition
61% had two or more conditions
53% mental health disorder
43% chronic health condition
42% physical disability
20% developmental disability
63% chronically homeless
10% age 65 or older
10–11% employed (annual average)
Why This Agreement Now?
Current contract expires September 30, 2025
New three-year agreement begins October 1, 2025 (initial term is 9 months to June 30, 2026 + 2 one-year options):
Ensures service continuity
Strengthens accountability
Improves operations
Revised RFP Highlights
Reduced bed count: 174 to 164 (aligns with demand and controls cost) Stronger performance targets (housing placements, service engagement) Enhanced cleanliness, safety, and reporting standards
Greater clarity on staff training and enforcement
Encourages operator to pursue private fundraising
Key Contract Enhancements
Accountability and reporting:
Quarterly outcome and service reports
Real-time client exit and termination tracking
Client feedback surveys to guide improvements
Operations and safety:
Updated daily operations and safety plan
Refined policy enforcement for consistent expectations
Staff parking relocated to maximize client access
Meal planning tied to occupancy for efficiency
Cost and Comparison
9-month contract (Oct 1, 2025 – Jun 30, 2026): $2.53M
Fully funded within the $3.39M FY 2025–26 Navigation Center budget Lower per-bed cost than other OC shelters ($56.68 vs $60–$85)
Pathways and Next Steps
Pathways permanent shelter planned for this site
Partnership with Jamboree Housing Corporation
Current facility remains in use during development
This agreement ensures continuity while supporting future transition
Recommendation
Approve agreement with Mercy House to operate the City’s Navigation Center, with the option to extend for 2 additional years (subject to budget approval)
Questions