City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 12, 2024
Report #:2310-2142
TITLE
Approval of a General Services Contract Number C24189570 with Downtown Streets Team, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the University Avenue and California Avenue Business Districts for a Period of Three Years; CEQA status – Not a Project
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract No. C24189570 with Downtown Streets Team, Inc., to provide cleaning services in the University Avenue and California Avenue Business Districts for a term of three years and a total not to exceed amount of $528,409, including $372,447 for basic services and $155,962 for additional services.
EXECUTIVE SUMMARY
Staff recommends approval of a new three-year contract (Attachment A) with Downtown Streets Team, Inc. (DST), to continue to provide services within the University Avenue Business District, and to expand their work to the Car-Free Streets portions of California Avenue and Ramona Street. The expansion of DST services to California Avenue and Ramona Street will help reduce overflowing garbage receptacles, improve reporting of safety hazards and graffiti, and ensure that the newly purchased furniture and games are kept clean and maintained.
BACKGROUND
The Public Works Department’s Public Services Division is responsible for maintaining safe and clean University Avenue and California Avenue Business Districts. In 2010, downtown stakeholders, which included the Palo Alto Business Improvement District (BID) and Palo Alto Downtown Professional and Business Association (PADPBA), proposed a combination of enhanced services that would raise the standards of cleanliness in the University Avenue Business District. The enhanced services included reducing trash from overflowing garbage receptacles, reporting graffiti and vandalism, removing litter in the alleyways and in the five parking structures (S & L, R, J, Q and Civic Center), and reporting suspicious vehicles and/or activities.
As a result, BID and PADPBA founded the Downtown Streets Team (DST). DST was developed to provide cleaning services to the downtown community, but also to reduce panhandling and provide re-entry skills to the unhoused. Services provided by the DST team members include reducing trash from full garbage containers, removing litter from sidewalks, alleyways, and garages, reporting suspicious vehicles or activities to the proper authorities, and providing peer to peer outreach. The litter control provided by DST also assists the City in avoiding storm water compliance issues.
In 2020, the City developed the Car-Free Streets Program in response to COVID-19, and since then the program has grown in popularity within the community. Due to the increase in attendance, businesses and residents have raised concerns regarding the cleanliness of the Car- Free Streets locations (Ramona Street and California Avenue). In response, staff recommends a partnership with DST so that these areas remain an attractive destination for the community to enjoy. Services that will be provided by DST include litter removal, rearranging and cleaning City- owned outdoor furniture and games, reducing trash from overflowing trash receptacles, reporting safety hazards, and reporting cases of vandalism and graffiti.
Unlike other organizations, DST strives to reduce homelessness by encouraging participants to take an active role in their own development, model positive behavior, and create long-term solutions for their participants. In return, participants can work with a case manager to obtain housing and other life support credits. Each participant is evaluated on their individual performance and recognized for their accomplishments. The skills acquired through this program can then be used to seek further employment.
On November 30, 2020, Staff recommended the approval of a three-year agreement with DST 1.
Due to concerns about DST’s governance and internal practices, Council pulled the item from the consent calendar and on December 7, 2020, approved the agreement for one year rather than three years. On December 13, 2021, the contract was amended for the additional two years 2.
This contract expired on January 11, 2024.
ANALYSIS
Staff recommends Council approve a three-year contract with Downtown Streets Team, Inc. (DST), from January 12, 2024, through January 11, 2027. The City has partnered with DST since 2006 and this partnership has helped reduce issues associated with the unhoused community and assisted in keeping the community clean. Additionally, DST has previously received Community Development Block Grant (CDBG) and Human Services Resource Allocation Process 1 City Council, November 30, 2020; Agenda Item #4, SR #11487; https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11487.pdf?t=58685.19
2 Downtown Streets Amendment 1 Contract C21179861;
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/public-services/id-13557-c21179861- downtown-streets-inc._amendment-1_partially-executed.11.30.2021_1.pdf (HSRAP) grants from the City related to homeless outreach and workforce development services.
Considering the many ways in which the City and DST partner, staff is reviewing all contracts and work citywide with Downtown Streets Team. Staff anticipates returning to Council with a citywide approach and performance measures by the end of June, with the goal of increasing efficiencies in managing the scope of work and relationship with DST.
Staff has researched other organizations that provide assistance to unhoused communities. Most organizations provide shelter, counseling, and outreach opportunities. However, DST is exempt from the solicitation process based on Municipal Code Section 2.30.360(d) because they use a peer-to-peer outreach model to other unhoused individuals while also providing cleaning services, in addition to providing the same services as the other organizations. It should be noted that in 2020, the previous contract with DST was approved under the same exemption.
The overall cost of this contract has increased 63% from the 2020 contract with DST. The increase in cost results from the lack of contract increases since the 2017 contract with DST and the additional scope of work for the Car-Free Streets Program areas on Ramona Street and California Avenue. The Car-Free Streets services account for $155,962 of the $528,409 contract amount.
If this three-year contract with DST is not approved, the result will include:
1. The elimination of DST trash removal services currently provided seven days a week.
2. Elimination of an outreach program to unhoused individuals.
3. Graffiti, vandalism, litter, and other issues will not be reported as frequently.
The City cannot supplement the work proposed to be performed by DST with current staff and may have to hire three additional employees (two additional employees to service University Downtown District and one additional employee to service California Avenue Business District).
In addition, the elimination of this outreach program to unhoused individuals cannot be fulfilled by staff. The elimination of this outreach program could potentially increase panhandling within the business districts.
FISCAL/RESOURCE IMPACT
Funding for the first year of this contract is available in the Fiscal Year 2024 Adopted Public Works Department Public Services Division operating budget within the University Avenue and California Avenue Parking Permit Funds. Task 2 of this contract, for all three years, is proposed to be funded twenty percent from the University Avenue Parking Permit Fund and eighty percent from the California Avenue Parking Permit Fund. Subsequent years of this contract will require additional appropriation of funds which will be brought forward as part of the budget development process in those years. The annual estimated budget for the subsequent contract years is shown in the table below. The Year 2 amounts in Table 1 will be addressed and recommended to Council during the Fiscal Year 2025 budget development process.
Table1: Estimated Contract Costs
Year
2020 Contract
Amount
2024 Contract
Amount Difference
Year 1 (FY2024) Task 1: University Avenue Parking
Permit Fund - $107,748 $117,122. $9,374
Year 1 (FY2024) Task 2: Car-Free Street Cleaning
Services N/A $50,470. $50,470
Year 1 Total $107,748 $167,592 $59,844
Year 2 (FY2025) Task 1: University Avenue Parking
Permit Fund
(Subject to annual appropriation of funds)
$107,748 $124,149. $16,401
Year 2 (FY2025) Task 2: Car-Free Street Cleaning
Services (Subject to annual appropriation of funds) N/A $51,948. $51,948 Year 2 Total $107,748 $176,097 $68,349
Year 3 (FY2026) Task 1: University Avenue Parking
Permit Fund (Subject to annual appropriation of
funds)
$107,748 $131,176. $23,428
Year 3 (FY2026) Task 2: Car-Free Street Cleaning
Services (Subject to annual appropriation of funds) N/A $53,544 $53,544 Year 3 Total $107,748 $184,720 $76,972
Total for three years $323,244 $528,409. $205,165
STAKEHOLDER ENGAGEMENT
On November 6, 2023, the possible use of Downtown Streets Team was brought to the Council's attention during the discussion of the Car-Free Streets alternative study. On November 16, 2023, City Staff published the article, “Update on Car Free Streets: Cal Ave. & Ramona St.”, informing the public of the possibility of using DST’s cleaning services for the Car-Free Streets Program.
ENVIRONMENTAL REVIEW
The approval of this contract is CEQA-exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment.
ATTACHMENTS
Attachment A: Downtown Streets Team, Inc. Contract
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer