City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01550 9/13/2022 Consent Item 03.
Non-Congregate Shelter Response: Motel Voucher Contract Extensions File ID: 2022-01550
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 4 to City Agreement No. 2021-0344 with Sky Riders Motel for an amount not-to-exceed $350,000, bringing the total not-to-exceed amount to $1,349,999; 2) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 11 to City Agreement No. 2020-4352 with Shree Enterprise, LLC for an amount not-to-exceed $950,000, bringing the total not-to-exceed amount to $4,499,150; 3) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 4 to City Agreement No. 2021-1128 with Siyaram Hotels, LLC for an amount not-to-exceed $350,000, bringing the total not-to-exceed amount to $1,449,997 through September 30, 2022; and 4) authorizing the City Manager or the City Manager’s designee to transfer $1,650,000 (ARPA Reinvestment Fund, Fund 1003) from the expenditure budget of the Community Response MYOP (I23000100) available fund balance to the expenditure budget of the C19-Homeless Response Program (G02001700).
Contact: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation and Economic Development; Nicholas Golling, Homeless Services Program Manager, (916) 808-7816,
[email protected], Department of Community Response.
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
4-Sky Riders Motel Supplemental Agreement
5-Shree Enterprise, LLC Supplemental Agreement
6-Siyaram Hotels, LLC Supplemental Agreement
Description/Analysis
Issue Detail: The number of unsheltered persons in Sacramento is increasing despite significant investment by the City, Sacramento County, the Sacramento Housing and Redevelopment Agency (SHRA), Sacramento Steps Forward and numerous partners. The humanitarian crisis impacts those who are living outdoors and the entire community including residents, businesses, and visitors and there is an urgent need to act to bring more people indoors. According to the 2022 Point in Time Homeless County released by the Sacramento County Continuum of Care, the County of Sacramento had a homeless population of 9,278, an increase of 67% since 2019. There was a noted decrease in unsheltered family homelessness, which is largely attributed to the work of this program and its ability City of Sacramento Page 1 of 3
File ID: 2022-01550 9/13/2022 Consent Item 03.
to assist families with shelter and services.
On January 27, 2021, the City Council adopted Resolution No. 2021-0023, which proclaimed the existence of a Local Public Emergency relating to unhoused persons amidst extreme weather conditions and the COVID-19 pandemic.
On March 2, 2021, the City Council adopted Resolution No. 2021-0053, which further recognized the urgent need to offer unhoused persons, facing imminent health and safety threats, with non-congregate shelter and authorized the City Manager to provide motel vouchers to qualified persons as long as the Federal Emergency Management Agency (FEMA) continued to provide 100 percent reimbursement.
On February 8, 2022, the City Council adopted Resolution No. 2022-0041, which recognized the urgent need to continue to offer the local unhoused population, facing imminent health and safety threats, with non-congregate shelter and authorized the City Manager to continue to provide motel vouchers and related services for unsheltered households qualified to receive federal funding support as long as FEMA continued to allow for seeking full reimbursement for the most COVID-19 at-risk members of the unsheltered population.
On February 15, 2022, the City Council adopted Resolution No. 2022-0062, which released $10,173,567 in ARPA funding for homelessness and housing programming in Community Response (I23000100). This midyear ARPA program funding includes the fund for the motel voucher program after the FEMA reimbursement program was scheduled to end on June 30, 2022. However, on April 1, 2022, FEMA issued guidance that FEMA funding will remain available for eligible work conducted after July 1, 2022, under the 90/10% cost share (where 90% of eligible work may be reimbursed by FEMA) until the COVID-19 incident period is closed.
Under the FEMA reimbursement, households with at least one of the following individuals are reimbursable:
• Individuals who have been diagnosed with COVID-19
• Individuals who have been exposed to COVID 19 and/or who are symptomatic, as confirmed by a local health official.
• An individual who is 65 years or older
• An individual who is pregnant
• An individual with pre-existing health conditions, including cancer, COPD, heart conditions, obesity, type 1 or 2 diabetes, asthma, high blood pressure, liver disease, immunocompromised state, pulmonary fibrosis, current or former smoker, etc.
With the extension of the FEMA reimbursement under the 90/10% cost share, staff is requesting additional authority and contract amendments in order to continue programming until September 30, 2022.
Policy Considerations: The recommendations in this report are consistent with Sacramento City Code Section 3.56.290 C.2.
Pursuant to Sacramento City Code section 3.56.090, any agreement for non-professional services that is for $250,000 or more requires City Council approval.
City of Sacramento Page 2 of 3
File ID: 2022-01550 9/13/2022 Consent Item 03.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on August 26, 2022, in compliance with the City Code.
Economic Impacts: Provision of the Motel Voucher Program assists our unsheltered community, and it assists our local motels, hotels, and food programs as they partner with the City to provide the necessary program operations and services. This is particularly helpful to the hospitality businesses and restaurants who have also faced many COVID-19 related economic challenges.
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” and is not subject to the provisions of California Environmental Quality Act (CEQA) (CEQA Section 15378(b)(2)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: In order to decrease exposure of the local unsheltered population to the COVID-19 pandemic and the local extreme weather conditions, the City is working to maintain non-congregate sheltering options, while also pairing those individuals with services and rehousing coordination to the greatest extent possible.
Financial Considerations: The motel voucher contract extensions for the following contracts will cover existing expenses and projected costs through September 30, 2022.
Contract Amount
Sky Riders Motel 350,000
Shree Enterprise, LLC 950,000
Siyaram Hotels, LLC 350,000
Total Amount $1,650,000
With Council approval of the recommended transfer of $1,650,000 (ARPA Reinvestment Fund, Fund 1003) from the expenditure budget of the Community Response MYOP (I23000100) to the C19- Homeless Response Program (G02001700), there will be sufficient funding in the C19-Homeless Response Program (G02001700) to execute the agreements with Sky Riders Motel in an amount not to exceed $350,000, with Shree Enterprise, LLC in an amount not to exceed $950,000, and with Siyaram Hotels, LLC in an amount not to exceed $350,000. Staff anticipates 90% of eligible work to be reimbursed by FEMA and will return to Council for any necessary budgetary adjustments to realign project expenses at the time.
Local Business Enterprise (LBE): None.
City of Sacramento Page 3 of 3
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $112,313,331
Program Description Approved
Expenditure Category
Aggie Square Job Center 1,000,000 3
Al Fresco Dining Program Development 189,139 1
Animal Services for the Homeless (ASHR) Response Team 753,230 2 ARPA Grant Liaison Consulting Services 530,490 5
Arts and Cultural Nonprofits 2,250,000 4
Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,656,101 5
Center for Workers' Rights 550,000 3
Childcare Services 1,500,000 3
Citywide Equity Study 250,000 1
Code Enforcement 205,683 2
Community Response Staffing Expansion 1,025,157 2
Comprehensive Siting Plan - Location Buildout 3,869,400 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,783,299 2 Continuation of Existing Homelessness Programming 7,933,277 2 COPS Hiring Program Grant Matching Funds 4,057,327 5
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Direct Investment Program 750,000 3
Downtown Core and Old Sacramento Revitalization 3,875,000 1 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
Gang Prevention and Intervention 1,500,000 3
Homeless and Housing Commitment 8,530,664 2
Illegal Dumping Support 787,000 2
Individual Artists and Creatives 2,750,000 4
K Street Lighting 619,150 1
Labor Negotiations 9,893,510 5
Lighting and Safety Enhancement 1,125,000 1
Local Food Bank Provider Support 500,000 3
Northgate Boulevard Economic Recovery Plan 5,000,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 North Sacramento Economic Recovery Plan 5,000,000 1
Public Records Staffing 3,639,334 5
Public Works Support of Homelessness Programming 572,000 2 Respite Centers Program 2,240,290 2
Sacramento Inclusive Economic Development Collaborative 3,500,000 1 Sacramento Native American Health Center 100,000 1
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 8/23/2022)
Attachment 2
Program Description Approved
Expenditure Category
#SacYouthWorks Summer 2022 Program 720,000 3
Small Business Priorities 7,391,711 1
Substance Use Respite and Engagement Program 1,300,000 2 Tourism Recovery through Iconic Event Production 1,500,000 4 Towing Administration Fee Reform 200,000 1
Vaccine Outreach and Education 1,000,000 1
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
$111,271,761
ARPA Balance $1,041,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,570,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 111,271,761$
@BCL@F00DA4EE, Rev. 09/09/2020
RESOLUTION NO. 2020-
Adopted by the Sacramento City Council
September 13, 2022
Non-Congregate Shelter Response - Continuation of Emergency Response Program and Additional FEMA Reimbursement Budget Authority for Motel Voucher Program and Related Contract Extensions
BACKGROUND
A. According to the 2022 Point in Time Homeless Count released by the Sacramento County Continuum of Care, the County of Sacramento had a homeless population of 9,278 individuals, an increase of 67% since 2019.
B. Despite thousands of residents temporarily and permanently housed through local housing developments and programs, large congregate temporary shelters, scattered site housing, and temporary motel vouchers during the past four years, the numbers of homeless individuals and families are increasing. In particular, since 2019, housing affordability has worsened, with rising rents and high demands on housing, with measured construction and inadequate housing cost affordability.
C. On March 13, 2020, the City Council adopted Resolution No. 2020-0075 declaring the existence of a local emergency relating to the Coronavirus Disease 2019 pandemic (COVID-19).
D. COVID-19, with its devastating impact on public health and further exacerbated the issues surrounding homelessness in the City of Sacramento and increased the existing shelter crisis. Despite ongoing local rental assistance and homeless prevention investments and nearly $60 million recently allocated to address homelessness and affordable housing, the numbers of homeless individuals and families are increasing, the weather has been worsening, and therefore the response by the City must also continue.
E. In mid-December 2020, the City utilized $250,000 of existing resources from the federal Coronavirus Relief Fund (CRF) to establish a non-congregate sheltering program in light of the local public emergency and need for assistance, as well as limited capacity in other local programs and the need to expand non-congregate services.
F. On January 12, 2021, the City Council approved the continuation of a local declaration of a shelter crisis and extended the duration of the present shelter crisis through January 12, 2022.
@BCL@F00DA4EE, Rev. 09/09/2020
G. The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated a second round of Emergency Solutions Grant Coronavirus funding (ESG-CV2) to the City of Sacramento based upon a new formula in the amount of $10,205,871. Resources were provided to this program from this allocation in March 2021.
H. On January 27, 2021, with ever-pressing COVID-19 threats and the need for expanded non-congregate sheltering options in light of extreme weather conditions, the City Council adopted Resolution No. 2021-0023, proclaiming the existence of a Local Public Emergency relating to persons experiencing homelessness in extreme winter weather conditions and amongst the pandemic.
I. On March 2, 2021, and on February 8, 2022, the City Council continued the Motel Voucher Program with additional resources and services, utilizing local resources for non-FEMA qualified households and pursuing FEMA Reimbursement where possible.
J. The emergency need for non-congregate shelter continues, and shelter is necessary to address due to the ongoing COVID-19 public health threat that threatens the unhoused population.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council recognizes the urgent need to continue to offer the local unhoused population, facing imminent health and safety threats, with noncongregate shelter and authorizes the City Manager to continue to provide motel vouchers and related services for unsheltered households qualified to receive federal funding support as long as the Federal Emergency Management Agency (FEMA), at the direction of the President, continues to allow for seeking 90 percent reimbursement for the most COVID-19 at-risk members of the unsheltered population.
Section 2. The City Manager or the City Manager’s designee is authorized to execute 1) Supplemental Agreement No. 4 to City Agreement No. 2021-0344 with Sky Riders Motel for an amount not-to-exceed $350,000, bringing the total not-to- exceed amount to $1,349,999; 2) Supplemental Agreement No. 11 to City Agreement No. 2020-4352 with Shree Enterprise, LLC for an amount not-to- exceed $950,000, bringing the total not-to-exceed amount to $4,499,150; and 3) Supplemental Agreement No. 4 to City Agreement No. 2021-1128 with Siyaram Hotels, LLC for an amount not-to-exceed $350,000, bringing the total not-to- exceed amount to $1,449,997 through September 30, 2022.
Section 3. The City Manager or the City Manager’s designee is authorized to transfer $1,650,000 (ARPA Reinvestment Fund, Fund 1003) from the expenditure budget @BCL@F00DA4EE, Rev. 09/09/2020
of the Community Response MYOP (I23000100) to the expenditure budget of the C19-Homeless Response Program (G02001700).
Adopted by the City of Sacramento City Council on September 13, 2022, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attest:
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.
SUPPLEMENTAL CONTRACT
(Rev. 9‐17‐12)
Project Title and Job Number: Motel Voucher Program‐ COVID 6100 Freeport Blvd G02001704 Date: August 3, 2022
Purchase Order #: 60479 Contract Supplement No.: 04
The City of Sacramento ("City") and Sky Riders Motel (“Contractor"), as parties to that certain Non‐Professional Services Agreement designated as Agreement Number 2021‐0344, including any and all prior contract supplements modifying the agreement (the agreement and contract supplements are hereafter collectively referred to as the "Agreement"), hereby supplement and modify the Agreement as follows:
1. Section 1 of the original Agreement (“Term”) is revised to read as follows:
This agreement takes effect on the date first referenced above and will terminate effective September 30,
2022.
2. The maximum not‐to‐exceed amount that is specified in Section 3 of the Agreement for payment of Contractor's fees and expenses, is increased by $350,000, and the Agreement’s maximum not‐to‐exceed amount is unchanged:
Agreement's original not‐to‐exceed amount: $249,999
Net change by previous contract supplements: $750,000
Not‐to‐exceed amount prior to this supplemental contract: $999,999 Increase by this supplemental contract: $350,000
New not‐to exceed amount including all contract supplements: $1,349,999
3. Contractor agrees that the amount of increase or decrease in the not‐to‐exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in work schedules or in the delivery of other services or work by Contractor.
4. Contractor warrants and represents that the person or persons executing this contract supplement on behalf
of Contractor has or have been duly authorized by Contractor to sign this contract supplement and bind Contractor to the terms hereof.
5. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the
Agreement, as supplemented and modified by this contract supplement.
(SIGNATURE PAGE FOLLOWING EXHIBIT)
SUPPLEMENTAL CONTRACT
(Rev. 9‐17‐12)
Project Title and Job Number: Motel Voucher Program COVID G02001704 Date: August 3, 2022 Purchase Order #: 59746 Contract Supplement No.: 11
The City of Sacramento ("City") and Shree Enterprise, LLC (“Contractor"), as parties to that certain Non‐ Professional Services Agreement designated as Agreement Number 2020‐4352, including any and all prior contract supplements modifying the agreement (the agreement and contract supplements are hereafter collectively referred to as the "Agreement"), hereby supplement and modify the Agreement as follows:
1. Section 1 of the original Agreement (“Term”) is revised to read as follows:
This agreement takes effect on the date first referenced above and will terminate effective September 30,
2022.
2. The maximum not‐to‐exceed amount that is specified in Section 3 of the Agreement for payment of Contractor's fees and expenses, is increased by $950,000, and the Agreement’s maximum not‐to‐exceed amount is unchanged:
Agreement's original not‐to‐exceed amount: $35,000
Net change by previous supplemental contracts: $3,464,150 Not‐to‐exceed amount prior to this supplemental contract: $3,499,150 Increase by this supplemental contract: $950,000
New not‐to exceed amount including all supplemental contracts: $4,449,150
3. Contractor agrees that the amount of increase or decrease in the not‐to‐exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in work schedules or in the delivery of other services or work by Contractor.
4. Contractor warrants and represents that the person or persons executing this contract supplement on behalf
of Contractor has or have been duly authorized by Contractor to sign this contract supplement and bind Contractor to the terms hereof.
5. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the
Agreement, as supplemented and modified by this contract supplement.
(SIGNATURE PAGE FOLLOWING EXHIBIT)
SUPPLEMENTAL CONTRACT
(Rev. 9‐17‐12)
Project Title and Job Number: Non‐Congregate Severe Weather Motel Agreement Date: August 3, 2022 Purchase Order #: 63988 Contract Supplement No.: 04
The City of Sacramento ("City") and Siyaram Hotels, LLC (“Contractor"), as parties to that certain Non‐Professional Services Agreement designated as Agreement Number 2021‐1128, including any and all prior contract supplements modifying the agreement (the agreement and contract supplements are hereafter collectively referred to as the "Agreement"), hereby supplement and modify the Agreement as follows:
1. Section 1 of the original Agreement (“Term”) is revised to read as follows:
This agreement takes effect on the date first referenced above and will terminate effective September 30,
2022.
2. The maximum not‐to‐exceed amount that is specified in Section 3 of the Agreement for payment of Contractor's fees and expenses, is increased by $350,000, and the Agreement’s maximum not‐to‐exceed amount is unchanged:
Agreement's original not‐to‐exceed amount: $249,999
Net change by previous supplemental contracts: $849,998 Not‐to‐exceed amount prior to this supplemental contract: $1,099,997 Increase by this supplemental contract: $350,000
New not‐to exceed amount including all supplemental contracts: $1,449,997
3. Contractor agrees that the amount of increase or decrease in the not‐to‐exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in work schedules or in the delivery of other services or work by Contractor.
4. Contractor warrants and represents that the person or persons executing this contract supplement on behalf
of Contractor has or have been duly authorized by Contractor to sign this contract supplement and bind Contractor to the terms hereof.
5. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the
Agreement, as supplemented and modified by this contract supplement.
(SIGNATURE PAGE FOLLOWING EXHIBIT)