City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00223 4/18/2023 Consent Item 2.
Supplemental Agreement: Step Up on Second Street [Published for 10-day Review] File ID: 2023-00223
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 1 to City Agreement No. 2022-0814 with Step Up on Second Street Inc. in an amount not to exceed $416,062, for a total not to exceed amount of $1,117,258; 2) authorizing the City Manager or the City Manager’s designee to: a) increase the revenue and expenditure budgets in the Community Response MYOP (I23000100) by $56,780 (Operating Grant, Fund 2702); b) transfer $305,247 (Operating Grant, Fund 2702) from the revenue and expenditure budgets of the Homeless Housing Initiative (I02000200) to the revenue and expenditure budgets of the Community Response MYOP (I23000100); c) transfer $4,185 (Operating Grant, Fund 2702) from the revenue and expenditure budgets of the C-19 Homeless Response Program (G02001700) to the revenue and expenditure budgets of the Community Response MYOP (I23000100); d) transfer $47,448 (Externally Funded Program, Fund 2703) from the revenue and expenditure budgets of the C-19 Homeless Response Program (G02001700) to the revenue and expenditure budgets of the Community Response MYOP (I23000100); and 3) directing the Sacramento Housing and Redevelopment Agency (SHRA) to take all actions necessary to allocate $56,780 in ESG-CV2 funds to outreach activities and services as part of the City Motel Program.
Contact: Nicholas Golling, Homeless Services Manager, (916) 808-7816, [email protected], Department of Community Response Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3- Step Up on Second Steet Supplement 01
Description/Analysis
File ID: 2023-00223 4/18/2023 Consent Item 2.
Issue Detail: On July 26, 2022, Council approved Motion No. 2022-0247, authorizing the City Manager or the City Manager’s designee to execute an agreement with Step Up on Second Street for an initial amount not-to-exceed $701,196 starting on July 1, 2022 through June 30, 2023. Step up on Second Street (Step up) provides housing services and supportive outreach services to adults in the City’s Motel Program.
The original agreement for Step Up on Second was initially written for $1,117,258, including $701,196 (ARPA, Fund 1003) and $416,062 ESG (Operating Grant, Fund 2702). The ESG funding had not yet been received from SHRA in July 2022, therefore the agreement was approved for $701,196 (ARPA, Fund 1003). After July 2022, budget changes had been made by SHRA and the ESG amount was reduced to $56,780. Therefore, this supplement is to approve the funding being received by SHRA for $56,780 and the remaining $359,282 to be transferred for this agreement from funds listed in the Financial Considerations section below.
DCR seeks to add $416,062 to the current Step Up on Second agreement for a total of $1,117,258 to continue providing essential housing and supportive case management services. These services include housing coordination and navigation, program referrals, and move-in support to ensure once clients find housing, they can remain stably housed. Similar to the City of Refuge, Step Up on Second Street can serve up to 200 individuals in their City Motel Program.
On October 19, 2021, Council approved Resolution No. 2021-0311, authorizing the City Manager or his designee to execute agreements with SHRA to execute activities as part of SHRA’s 2022 One- Year Action Plan.
Staff is also seeking authorization to accept $56,780 in Emergency Solutions Grant (ESG) funding from the Sacramento Housing and Redevelopment Agency (SHRA) to include in the additional $416,062 to the current Step Up on Second agreement.
Since July 2022, Step Up on Second Street has served 492 individuals and 39 families experiencing homelessness in their outreach and housing supportive services programs, including assisting 40 individuals obtain SHRA housing vouchers, and referred 172 individuals to mental health services.
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 $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 July 14, 2022, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
File ID: 2023-00223 4/18/2023 Consent Item 2.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Services provided by this agreement address the ongoing need for both supportive services for individuals and families experiencing homelessness, and mitigation of the impact homelessness has had on the City.
Financial Considerations: With Council approval of the recommended increase of $56,780 (Operating Grants, Fund 2702) to the Community Response MYOP (I23000100), the transfer of $305,247 (Operating Grants, Fund 2702) from the Homeless Housing Initiative (I02000200) to the Community Response MYOP (I23000100), the transfer of $4,185 (Operating Grants, Fund 2702) from the C-19 Homeless Response Program (G02001700) to the Community Response MYOP (I23000100), and the transfer of $47,448 (Externally Funded Programs, Fund 2703) from the C-19 Homeless Response Program (G02001700) to the Community Response MYOP (I23000100), there will be sufficient funding in the Community Response MYOP (I23000100) to execute the agreement with Step Up on Second Street Inc.
Using the remaining ESG funds from the Step Up on Second Agreement 2021-0704 and North 5 th Navigation Center 2021-0729 has been approved by SHRA to use towards the current Step Up Outreach and Housing Coordination Program Agreement 2022-0814.
Local Business Enterprise (LBE): All businesses and non-profit organizations that the Department of Community Response is partnering with are LBEs in the City of Sacramento.
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
April 11, 2023
Supplemental Agreement: Step Up on Second Street
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, and 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, has 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 February 8, 2022, and September 13, 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 July 26, 2022, Council approved Motion No. 2022-0247, authorizing the City Manager or his designee to execute an agreement with Step Up on Second Street for an amount not-to-exceed $701,196 to provide housing services and supportive outreach services to adults in the City’s Motel Program.
K. The original agreement for Step Up on Second was initially written for $1,117,258, including $701,196 (ARPA, Fund 1003) and $416,062 ESG (Operating Grant, Fund 2702.) The ESG funding had not yet been received from SHRA in July 2022, therefore the agreement was approved with $701,196 (ARPA, Fund 1003.) After July 2022, budget changes had been made by SHRA and the ESG amount was reduced to $56,780. Therefore, this supplement is to approve the funding being received by SHRA for $56,780 and to transfer the remaining $359,282 to this project.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to execute Supplemental Agreement No. 1 to City Agreement No. 2022-0814 with Step Up on Second Street, Inc. for an increased amount of $416,062, for a revised not to exceed total of $1,117,258.
Section 2. The City Manager or the City Manager’s designee is authorized to increase the revenue and expenditure budgets in the Community Response MYOP (I23000100) by $56,780 in ESG-CV2 (Operating Grants, Fund 2702).
Section 3. The City Manager or the City Manager’s designee is authorized to transfer $305,247 (Operating Grants, Fund 2702) from the revenue and expenditure budget of the Homeless Housing Initiative (I02000200) to the revenue and expenditure budget of the Community Response MYOP (I23000100).
Section 4. The City Manager or the City Manager’s designee is authorized to transfer $4,185
(Operating Grants, Fund 2702) from the revenue and expenditure budget of the C- 19 Homeless Response Program (G02001700) to the revenue and expenditure budget of the Community Response MYOP (I23000100).
Section 5. The City Manager or the City Manager’s designee is authorized to transfer $47,448 (Externally Funded Programs, Fund 2703) from the revenue and expenditure budget of the C-19 Homeless Response Program (G02001700) to the revenue and expenditure budget of the Community Response MYOP (I23000100).
Section 6. The Sacramento Housing and Redevelopment Agency (SHRA) is directed to take all actions necessary to allocate $56,780 in ESG-CV2 funds to outreach activities and services as part of the City Motel Program.
SUPPLEMENTAL CONTRACT
(Rev. 11119)
Project Title and Job Number: Step Up Outreach and Housing Coordination Program Date: 03/14/2023Purchase Order #: 67603 Supplemental Contract No.: 01The City of Sacramento ("City") and __Step Up on Second Street_("Contractor"), as parties to that certain NonProfessionalServices Agreement designated as Contract Number 20200814_, including any and all prior supplemental contractsmodifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"),hereby supplement and modify the Contract as follows:The Scope of Services specified in Exhibit A of the Contract is amended as follows:Budget modifications are shown in Attachment 2 to Exhibit B, attached hereto and incorporated herein by thisreference. The funding source was modified and is shown in Attachment 2 to Exhibit B.In consideration of the additional and/or revised services described in section 1, above, the maximum nottoexceedamount that is specified in Exhibit B of the Contract for payment of Contractor's fees andexpenses, isincreasedby _$416,062.00_, and theContractsmaximum nottoexceed amount is amended as follows:_$701,196.00_Agreement's original nottoexceed amount:Net change by previous supplemental contracts:Nottoexceed amount prior to this supplemental contract:Increaseby this supplemental contract:New notto exceed amount including all supplemental contracts:$0.00_$701,196.00_$416,062.001,117,258.00_3. Contractor agrees that the amount of increase or decrease in the nottoexceed amount specified in section 2, above,shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fullycompensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection withsuch additional and/or revised services, including costs associated with any changes and/or delays in schedules or in thedelivery of other services by Contractor.4. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf ofContractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to theterms hereof.5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, andContractor shall perform all of the services, duties, obligations, and conditions required under the Contract, assupplemented and modified by this supplemental contract.[SIGNATURES ON FOLLOWING PAGE] Attachment 2 to Exhibit BBudgetPayment MethodCity will pay Step Up an amount not to exceed $1,117,258 for the services rendered as part of the CityMotel Program during the contract term of July 1, 2022 to June 30, 2023.Step Up shall invoice the City on the 15th of the month throughout the term of thecontract to accountfor all reimbursable expenses incurred the prior month including the advanced amount.Step Up shall email invoices [email protected]. Invoices shall be prepared inaccordance with Section 5 of Exhibit B. Invoices shall be detailed out in accordance with the line items inthe budget below and shall be based on actual costs incurred.Budget
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Project Manager City AttorneyApproved By: Attest:____________________________________Contractor City ClerkApproved By: