June 24, 2025
Community Development
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus Morales, Housing Manager
Catherine Casimere, Housing Services Supervisor
Subject:
Sole Source Contract with Contra Costa Health’s Health, Housing, and Homelessness Services Department for
ERF–3R Project
FINANCIAL IMPACT: The City Council accepted and appropriated an Encampment Resolution Fund Round 3 (ERF-3R) award
totaling $9,336,746. The grant funds include resources for rent assistance, flex funds, and supportive services, such as case management and housing navigation
services. This contract will have no impact on the
General Fund since it will be fully funded by the City’s grant. The 2-year contract amount will not exceed
$4,403,705 and will be paid from the ERF-3R grant funds (account string: 13961119-400201).
PREVIOUS COUNCIL
ACTION:
December 17, 2024
STATEMENT OF THE
ISSUE:
Since 2023, the City has been partnering with Contra
Costa Health’s Health, Housing, and Homelessness
Services (H3) Department on implementation of the
City’s encampment resolution funding projects. Over the years, these services have expanded from just providing coordinated entry outreach to include project
management and rapid rehousing services to leverage
the County staff experience and Continuum of Care
(CoC) programs. This new sole source contract will
AGENDA
REPORT
June 24, 2025
extend this partnership to the City’s Encampment
Resolution Funding Round 3 (ERF–3R) project.
RECOMMENDED ACTION:
APPROVE a sole-source contract with Contra Costa
Health’s Health, Housing, and Homelessness Services
Department to provide project management and support
services for people living in ERF-3R eligible
encampments onto paths to safe and stable housing and
employment opportunities, for a total contract amount not to exceed $4,403,705, and a term extending through
June 30, 2027 - Community Development (Lina
Velasco/Jesus M. Morales 510-620-6649).
DISCUSSION:
On December 14, 2024, the City Council accepted and appropriated an Encampment Resolution Round 3 (ERF-3R) award totaling $9,336,746. The grant funds include resources for project management, rent assistance, street outreach, and support services, such as case management, housing navigation services, job training and placement services, and other supportive services.
The City has previously contracted with Contra Costa Health’s (CCH) Health, Housing, and Homelessness Services (H3) Department in its implementation of its various encampment resolution funding projects. In ERF-1, H3 provided Coordinated Outreach Referral, Engagement (C.O.R.E.) program services to the ERF-1 clients. As part of the implementation of ERF-2R, H3 provides project management, C.O.R.E. outreach, case management, and housing navigation services for ERF-2R clients. The ERF-2R contract has provided an opportunity to collaborate with the County to learn from their vast experience to build City capacity to perform such work in a more sustainable and cost-efficient manner. This partnership has also provided the opportunity to leverage additional County resources to assist ERF–2R clients.
City staff desires to extend its partnership with CCH H3 to continue to:
1) Leverage County staff’s expertise and experience in project management related to homelessness services;
2) Leverage County resources by having County staff familiar with County services embedded in project activities;
3) Serve as a model for City and County partnership for the State in tackling homelessness by blending resources to reduce the per capita costs and fill serve gaps; and,
4) Enhance data tracking and reporting through HMIS.
The proposed scope of work to be provided by H3 for the ERF-3R project is centered around providing the following services:
One ERF-3R Project Manager;
June 24, 2025
A two-person C.O.R.E. team to provide outreach and support for ERF-3R clients at a City’s navigation facility;
A Rapid Rehousing service provider that will provide case management, housing navigation, and rental payment services;
Priority of 8 beds at County shelters for ERF-3R clients. ERF-3R clients would be provided with case management and housing navigation services by the County shelter at no additional cost; and,
Facilitating referrals to other County programs.
Full details of the Scope of Work and Budget are detailed in Exhibit A of the City of Richmond Standard Contract in Attachment 1. The contract will be managed by the Community Development Department.
Below is the summary budget breakdown of anticipated costs.
June 24, 2025
SYNERGISTIC POLICIES:
On May 23, 2023, the City Council adopted the Homelessness Strategic Plan to provide short-term and long-term steps to address homelessness. Within these goals the following short-term and immediate action steps were recommended.
Short-term Action Step 1.4: Expand case management and other care-related individualized services directly in encampments to build connections for unsheltered individuals to have access to an expanded array of opportunities and resources for personal development, wellness and health, and financial means to secure and sustain housing, and ongoing support for long-term stabilization.
Short-term Action Step 5.2 and Priority Action Step 6 - Strengthen collaboration between the City, County and community-based organizations to improve data collection, implement this Strategic Plan, provide services in the city, and apply for funding opportunities. The dedicated City staff person would determine frequency and format of interagency collaboration, which could include systems level partner meetings, a local data workgroup, or direct service coordination.
This contract is aligned with the short-term and immediate action steps and will further the goals and actions identified within the adopted Homelessness Strategic Plan.
CONCLUSION:
City staff recommends approval of the sole source contract with Contra Costa Health’s Health, Housing, and Homelessness Services Department to provide project management and support services for people living in ERF-3R eligible city encampments onto paths to safe and stable housing and employment opportunities, for a total contract amount not to exceed $4,403,705, and a term extending through June 30, 2027.
DOCUMENTS ATTACHED:
Attachment 1 – Sole Source Contract with H3