City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01867 11/15/2022 Consent Item 7.
Non-Congregate Shelter Response: City Motel Program Contract Extensions File ID: 2022-01867
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute the following supplemental agreements in order to continue the city’s motel sheltering contracts through December 31, 2022: Supplemental Agreement No. 10 to City Agreement 2020- 4309 with Paul & Sons, Inc decreasing the amount not-to-exceed by $495,000, bringing the agreement’s total not-to-exceed amount to $6,805,000; 2) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 12 to City Agreement No. 2020-4352 with Shree Enterprises for an increased amount not-to-exceed $400,000, bringing the agreement’s total not-to-exceed amount to $4,849,150; 3) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 5 to City Agreement No. 2021-1128 with Siyaram Hotels for an increased amount not-to-exceed $75,000, bringing the agreement’s total not-to-exceed amount to $1,524,997; and 4) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 5 to City Agreement 2021-0344 with Sky Riders Motel for an amount not-to-exceed $20,000, bringing the agreement’s total not-to-exceed amount to $1,369,999.
Contact: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], City Manager’s Office; Nicholas Golling, Homeless Services Program Manager, (916) 808-7816, [email protected], Department of Community Response Presenter: None.
Attachments:
1-Description/Analysis
2-Paul & Sons, Inc Supplemental Agreement
3-Shree Enterprise, LLC Supplemental Agreement
4-Siyaram Hotels, LLC Supplemental Agreement
5-Sky Riders Motel Supplemental Agreement
Description/Analysis
File ID: 2022-01867 11/15/2022 Consent Item 7.
Issue Detail: The number of unsheltered persons in Sacramento increased in 2022 despite significant investment by the City, Sacramento County, the Sacramento Housing and Redevelopment Agency (SHRA), Sacramento Steps Forward and numerous partners. Need continues amidst a tight housing market and economic inflation. This 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 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 for the cost of the motel sheltering (rehousing services are not included):
• 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
File ID: 2022-01867 11/15/2022 Consent Item 7.
additional authority and contract amendments in order to continue programming until December 31, 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.
Economic Impacts: Provision of the Motel Voucher Program assists our unsheltered community, and it assists our local motels/hotels as partners with the City to provide the necessary program operations. This is particularly helpful to the hospitality businesses who have faced many COVID-19 related economic challenges.
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not involve activities that constitute a “project” as defined by Section 15378(b) (4) of the California Environmental Quality Act (CEQA) Guidelines.
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: Sufficient funding is available in Homeless Motel Voucher Program (G02001700) in the Disaster Relief Act Fund (2701) to execute the Agreements with Sky Riders by increasing the amount not to exceed by $20,000; Shree Enterprise, LLC by increasing the amount not to exceed by $400,000; Siyaram Hotels, LLC by increasing the amount not to exceed by $75,000; and Paul & Sons, Inc by decreasing the amount not to exceed by $495,000. As this is a net zero motel voucher contract extensions for the following contracts to cover existing expenses and projected costs through December 31, 2022, no additional funding is being requested.
Contract Amount
Paul & Sons, Inc -($495,000)
Shree Enterprises $400,000
Siyaram Hotels $75,000
Sky Riders $20,000
Total Amount $0
File ID: 2022-01867 11/15/2022 Consent Item 7.
Contract Amount
Paul & Sons, Inc -($495,000)
Shree Enterprises $400,000
Siyaram Hotels $75,000
Sky Riders $20,000
Total Amount $0
Local Business Enterprise (LBE): None.