City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02032 1/24/2023 Consent Item 2.
Non-Congregate Shelter Response: Approving of New City Motel Program Contracts and Additional FEMA Reimbursement Budget Authority [Published for 10-day Review on 1/12/2023]
File ID: 2022-02032
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute the following agreements: a) City Agreement with Paul & Sons, Inc for motel voucher services for a not to exceed amount of $725,000; b) City Agreement with Shree Enterprises for motel voucher services for a not-to-exceed amount of $1,200,000; c) City Agreement with Sky Riders for motel voucher services for a not to exceed amount of $500,000; d) City Agreement with Siyaram Hotels, LLC dba Gold Star Inn for motel voucher services for a not to exceed amount of $600,000; e) City Agreement with Arden Acres for motel voucher services for a not to exceed amount of $975,000; and 2) authorizing the City Manager or the City Manager’s designee to: a) continue the City Motel Program as long as the President’s Executive Order provides Federal Emergency Management Agency (FEMA) 90/10% Reimbursement for non-congregate shelter operations for COVID-19 sensitive populations; and b) increase the revenue and expenditure budgets in the Homeless Response Program (G02001700) by $2,750,000 (Disaster Relief Act Fund, Fund 2701); and c) to transfer $1,250,000 (ARPA Reinvestment Fund, Fund 1003) from the expenditure budget of the Community Response MYOP (I23000100) to the expenditure budget of the C19-Homeless Response Program (G02001700).
Contact: Danielle Foster, City 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-ARPA Reinvestment Fund Programs
3-Resolution
4-Paul & Sons, Inc Agreement
5-Shree Enterprise, LLC dba The Greens Agreement
File ID: 2022-02032 1/24/2023 Consent Item 2.
6-Siyaram Hotels, LLC dba Gold Star Inn Agreement
7-Sky Riders Motel Agreement
8-Arden Acres 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 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 included funding for the City Motel 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.
On September 12, 2022, the City Council adopted Resolution No. 2022-0296, which authorized $1,650,000 in ARPA funding to the City Motel Program. A portion of these funds have been used for non-FEMA reimbursable expenses in the City Motel Program and the remining funds will be used for
File ID: 2022-02032 1/24/2023 Consent Item 2.
the same purpose under these new agreements.
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.
The existing FEMA funding budget for the City Motel Program is projected to be fully spent by December 31, 2022. With the extension of the FEMA reimbursement period, an increase to the FEMA revenue and expense budgets for the City Motel Program will be needed to continue to seek FEMA reimbursement.
On November 21, 2022, City Staff conducted a Request for Qualifications (RFQ) to seek potential motels that will provide emergency and transitional sheltering in conjunction with city-provided supportive services and rehousing staff through the City Motel Program. The RFQ submittal due date for first reviews was December 5th and staff received five responses. The first review of responses to this RFQ took place between December 5-9, 2022 and staff recommend entering into agreements with all five respondents. The RFQ will remain open and contracts will continue to be awarded on a rolling basis as responses are received and as funding is available through June 30, 2023.
After conducting the RFQ and with the extension of the FEMA reimbursement under the 90/10% cost share, staff is requesting authority to execute new contracts and additional FEMA revenue and expense budget to continue motel voucher programming until June 30, 2023.
Policy Considerations: 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.
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 $1million 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 January 12, 2023, in compliance with the City Code.
Economic Impacts: Provision of the City Motel 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
File ID: 2022-02032 1/24/2023 Consent Item 2.
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:
The following contracts will cover projected costs from January 1, 2023 through June 30, 2023.
Contract FEMA (Fund 2701) ARPA (Fund 1003) Total Contract Amount
Paul & Sons, Inc $525,000 $200,000 $725,000
Shree Enterprises $650,000 $550,000 $1,200,000
Siyaram Hotels $500,000 $100,000 $600,000
Sky Riders $400,000 $100,000 $500,000
Arden Acres $675,000 $300,000 $975,000
Total Amount $2,750,000 $1,250,000 $4,000,000
With Council approval of the recommended increase of $2,750,000 (Disaster Relief Act Fund, Fund 2701) to the revenue and expenditure budgets in the Homeless Response Program (G02001700), and the transfer of $1,250,000 (ARPA Reinvestment Fund, Fund 1003) from Community Response MYOP (I23000100) to the Homeless Response Program (G02001700), there will be sufficient funding in the Homeless Response Program (G02001700) to execute the agreements with Paul & Sons, Inc for an amount not to exceed $725,000, with Shree Enterprises for an amount not to exceed $1,200,000, with Siyaram Hotels for an amount not to exceed $600,000, with Sky Riders for an amount not to exceed $500,000, and with Arden Acres for an amount not to exceed $975,000.
Local Business Enterprise (LBE): None.
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 250,000 4
Arts and Cultural Nonprofits Grant Matching Funds 2,000,000 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 1,568,236 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,312,624 2 Continuation of Existing Homelessness Programming 6,283,277 2 COPS Hiring Program Grant Matching Funds 4,057,327 5
COVID-19 Homeless Response Program 1,650,000 2
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Digital Equity Response Program 250,000 3
Direct Investment Program 750,000 3
Downtown Core and Old Sacramento Revitalization 3,675,000 1 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
FY2022/23 Affordable Housing Project 11,210,003 2
Gang Prevention and Intervention 1,500,000 3
Grove Emergency Bridge Housing 92,500 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 1,325,000 1
Local Food Bank Provider Support 500,000 3
Northgate Boulevard Economic Recovery Plan 3,000,000 1
Northgate Boulevard Fence Repair Project 2,000,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 12/6/2022)
Attachment 2
Program Description Approved
Expenditure Category
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
#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
$111,521,761
ARPA Balance $791,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,820,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 111,521,761$
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
January 24, 2023
Non-Congregate Shelter Response: Approving of New City Motel Program Contracts and Additional FEMA Reimbursement Budget Authority
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.
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. On September 13, 2022, the City adopted Resolution No. 2022-0296 to continue the Motel Voucher Program as long as the Federal Emergency Management Agency (FEMA) continues to allow for seeking 90 percent reimbursement for the most COVID-19 at-risk members of the unsheltered population, and to authorize the use of $1,650,000 ARPA funding.
K. 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.
L. The City completed a Request for Qualifications process and as a result of that process identified the continuing and new partners being recommended for contracts, consistent with the program parameters.
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 non-congregate 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) City Agreement with Paul & Sons, Inc for motel voucher services for a not to exceed amount of $725,000; 2) City Agreement with Shree Enterprises for motel voucher services for a not to exceed amount of $1,200,000; 3) City Agreement with Sky Riders for motel voucher services for a not to exceed amount of $500,000; 4) City Agreement with Siyaram Hotels, LLC dba Gold Star Inn for motel voucher services
for a not to exceed amount of $600,000; 5) City Agreement with for Arden Acres motel voucher services for a not to exceed amount of $975,000 through June 30, 2023.
Section 3. The City Manager or the City Manager’s designee is authorized to increase the revenue and expenditure budgets in the Homeless Response Program (G02001700) by $2,750,000 (Disaster Relief Act Fund, Fund 2701).
Section 4. The City Manager or the City Manager’s designee is authorized to transfer $1,250,000 (ARPA Reinvestment Fund, Fund 1003) from the expenditure budget of the Community Response MYOP (I23000100) to the expenditure budget of the C19-Homeless Response Program (G02001700).