REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Adam Gufarotti, Community Support Manager
Date:May 27, 2025
Subject:Agreement with City Net for Supportive Services and Management of The Anchor
Recommendation
Approve and authorize the City Manager to execute a Professional Services Agreement with City Net for Supportive Services and Management of The Anchor in an amount not to exceed $766,000 per fiscal year and extending the term in such final form as approved by the City Attorney.
Background
Homelessness remains a key priority for the City of Lake Elsinore. Since establishing the City’s first Homeless Task Force in 2017, the City has focused on coordinated, proactive efforts to reduce chronic homelessness and improve quality of life for all residents.
The Homeless Task Force meets monthly to discuss ongoing challenges, review data, and align on strategy. In addition, City staff conduct weekly quality of life engagements to connect individuals experiencing homelessness with available services and resources.
The City continues to implement a “trifecta” approach that combines the efforts of the Riverside County Sheriff’s Office (RSO), Code Enforcement, and the City’s homeless service provider. This model supports a balance between enforcement, compliance, and service delivery.
A key component of the City’s efforts includes the Anchor a 14-unit, 20-bed crisis stabilization housing facility that provides temporary housing and support services for chronically homeless individuals.
Supportive Services and Management of The Anchor
Discussion
On May 14, the City was informed that its current homeless services contractor, Social Work Action Group (SWAG), will not be renewing its agreement, citing a strategic shift to “field‑based, same‑day interventions in the areas of substance abuse and mental health connections.” The City extends its thanks to SWAG for years of dedicated service to Lake Elsinore residents.
City staff immediately consulted with Riverside County and neighboring jurisdictions to identify potential providers. The City of Murrieta conducted an RFP for homeless services in March 2025, receiving two proposals. Lake Elsinore staff participated in the review panel, and Murrieta awarded a contract to City Net.
City Net was founded in Long Beach in 2003 to streamline homeless services by aligning municipal agencies and nonprofit partners around shared goals, strategic action plans, and measurable outcomes. It now holds contracts throughout California—including in Riverside County—providing coordinated street outreach, case management, and housing navigation.
It is recommended that the City Council authorize an agreement with City Net to operate The Anchor facility for Fiscal Year 2025‑26, in an amount not to exceed $766,000. Under this agreement, City Net will assume full responsibility for on‑site case management, program supervision and coordination, and overnight security.
Street outreach operations within the City of Lake Elsinore are currently being funded through the Encampment Resolution Grant (ERG), which is administered by the County of Riverside. This grant provides support for engagement with individuals experiencing homelessness, particularly those residing in encampments, with the goal of connecting them to appropriate services, housing, and other resources.
At this time, the City is closely monitoring and evaluating the level and effectiveness of outreach services being delivered under the current grant framework. This includes assessing the consistency of service delivery, the outcomes achieved (e.g., successful placements, service connections), and alignment with the City's broader homelessness strategies and objectives.
Following a comprehensive evaluation, City staff will return to the City Council with an update and, if necessary, present options for potential enhancements or alternatives to the current outreach model to ensure continued progress in addressing homelessness in Lake Elsinore.
Fiscal Impact
Funds are available in the City’s Fiscal Year 2025-26 Annual Operating Budget.
Attachments
Attachment 1 – Agreement
Exhibit A – City Net Scope of Work
City Manager's Office