January 23, 2024
Community Development
DATE: January 23, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
Subject:
Contract Amendment No.1 with Healing Spot Counseling
Center for Mental Health Services for Unhoused
FINANCIAL IMPACT: The costs associated with this contract amendment will be paid using funds from the City’s approximate $4.8
million Encampment Resolution Funding Round 1 (ERF-
R-1) and the approximate $8.6 million Encampment
Resolution Funding Round 2 (ERF-R-2) received from
the California Interagency Council on Homelessness (Cal ICH). Therefore, this contract will not have an impact on the City’s General Fund. The funds are allocated within the account strings: 15061219-400201-16G07 (ERF-R-1)
and 15061219-400201-16G25 (ERF-R-2).
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
On April 5, 2022, the City accepted $4.8 million of
Encampment Resolution Funding Round 1 and on
September 12, 2023, accepted $8.6 million of
Encampment Resolution Funding Round 2 from the
California Interagency Council on Homelessness (Cal
ICH) to address encampments using a Housing First
approach at Castro (ERF-R-1), and at certain City-wide
encampments, including some located on the State of
AGENDA
REPORT
January 23, 2024
California’s right-of-way (ERF-R-2). The City’s project proposals included housing navigation services,
outreach, and case management services. As part of the
case management services, the City has provided mental
health support services to promote the physical and
emotional well-being of the unhoused clients served. The proposed contract amendment no. 1 will allow Healing
Spot to continue to provide services to Castro clients and for new clients served as part of the City’s ERF-R-2
project.
RECOMMENDED ACTION:
APPROVE contract amendment no.1 with Healing Spot
Counseling Center, Inc. to increase the contract amount by $407,036.25, for a new total contract amount of
$417,036.25, to continue to provide mental health
support services for Castro encampment clients and new
ERF-R-2 clients, for a term extended through June 30,
2025, to be funded using the City’s Encampment
Resolution Round 1 and Round 2 funds – Community
Development Department (Lina Velasco/Jesus Morales
510-620-6841).
DISCUSSION:
In December 2021, the City applied for Encampment Resolution Funding Round 1 (ERF-R-1) seeking resources from the State of California to fund a local demonstration project to (1) provide services to address the immediate crisis of those experiencing unsheltered homelessness in encampments; (2) support people living in encampments onto paths to safe and stable housing; and (3) restore public spaces to their intended uses while safeguarding the needs of unhoused people seeking shelter. Applications were required to focus on one encampment site. City staff selected the Castro Encampment for this funding application.
On February 24, 2022, the City was provided a notice of intent to award the ERF. The City Council accepted the grant, ~$4.6 million, at its April 5, 2022 meeting.
In July 2023, the City applied for Encampment Resolution Funding Round 2 (ERF-R-2) seeking additional resources from the State of California to provide services addressing the immediate crisis of those experiencing unsheltered homelessness in encampments on Caltrans rights-of-way along the I-80 and I-580 corridors and citywide.
In June 2023, the City was provided with a notice of intent to award the ERF-R-2 funds.
The City Council accepted the grant of approximately $8.6 million at its September 12, 2023 meeting.
January 23, 2024
Summary of Encampment Resolution Funding for ERF-R-1 and ERF-R-2 Under ERF-R-1 and ERF-R-2, the guiding policy is to utilize Housing First principles to target unhoused individuals in encampments within the City and transition them into housing options and provide them an array of supportive services. ERF–R-1 specifically targeted the 2.66-acre vehicle encampment located at Castro Street, near Hensley Street. ERF-R-2 will be targeting certain citywide encampments, including several on Caltrans right-of-way along I-580 and I-80. Grounded in Housing First principles, the goal of the ERF program is to utilize the funds to transition unhoused residents from the targeted encampments into emergency, transitional, or permanent housing.
To facilitate the transitioning of unhoused residents from the encampments to stable housing options, the City is collaborating and coordinating with service providers to provide clients support services that include housing navigation, rental assistance, behavioral and health support, job-related training and support, and other individualized services.
Summary of Mental Health Support Services
In March 2023, the Community Development Department solicited a Request for Proposals (RFP) for Mental Health Services for Castro encampment residents. The RFP was sent to three vendors via email as an informal solicitation for a limited contract, under $10,000, to assess the viability of providing direct mental health support services, such as individual and group counseling, to Castro encampment residents. All three vendors responded to the RFP and provided proposals.
Proposals received were reviewed and ranked in order of best qualified to provide mental health and therapy services on a trial basis. Healing Spot Counseling Center (Healing Spot) was selected as the firm best able to provide such services. The Healing Spot proposal demonstrated expertise in trauma-informed care, which is crucial in providing therapy services for individuals experiencing traumatic events. Their experience spans a range of therapeutic services, including individual and group therapy and specialized modalities such as mindfulness techniques. They have the ability to address the diverse needs and preferences of clients to ensure a holistic approach to their mental health and well-being. In addition, Healing Spot’s range of services are culturally sensitive, reflecting a commitment to understanding and respecting the cultural backgrounds of individual clients. Based on these factors, Healing Spot was ranked as the top proposal to provide the mental health and therapy services for the Castro clients. Given Healing Spot’s strong performance in ERF-R-1, City staff is recommending that their services be extended to serve new clients via the ERF-R-2 project.
The services have been well received by Castro encampment residents and will be an important component of providing the diverse range of services to unhoused residents in the Castro encampment and other citywide encampments.
January 23, 2024
The proposed contract includes individual resident assessments, individual resident counseling sessions, bi-monthly group sessions, and a treatment team who will help with case management and coordination.
CONCLUSION:
The service provider, Healing Spot Counseling Center, Inc., is needed to ensure mental health and therapy services are readily available for unhoused clients served under the ERF-R-1 and ERF–R-2 projects to ensure wellness, well-being, and help them become self-sustaining.
City staff recommends the City Council approve the contract amendment no. 1 to increase the contract amount with Healing Spot Counseling Center by $407,036.25 to continue to provide mental health and therapy services, for a total not-to-exceed contract amount of $417,036.25, for a term extending through June 30, 2025, to be funded using the City’s Encampment Resolution Funding (ERF-R-1 and ERF-R-2).
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 1
Attachment 2 – Executed Contract