City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01088 9/5/2023 Consent Item 11.
Contract: Approval of New City Motel Program Contracts with Paul & Sons Inc, Shree Enterprise LLC, Sky Riders Motel, Siyaram Hotels, LLC, and Arden Acres; and City Motel Program Support Services Agreement with Step Up on Second Street [Published for 10-day Review on 8/23/2023]
File ID: 2023-01088
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute the following agreements: a) City Agreement with Paul & Sons, Inc for a not to exceed amount of $1,750,000; b) City Agreement with Shree Enterprises for a not-to-exceed amount of $1,944,000; c) City Agreement with Sky Riders for a not to exceed amount of $902,000; d) City Agreement with Siyaram Hotels, LLC dba Gold Star Inn for a not to exceed amount of $872,000; e) City Agreement with Arden Acres for a not to exceed amount of $782,000; and 2) authorizing the City Manager or the City Manager’s designee to execute an agreement with Step Up on Second Street for City Motel Program support services for a not to exceed amount of $1,437,832.
Contact: Nicholas Golling, Homeless Services Manager, (916) 808-7816, [email protected], Jason Beckstrom, Program Specialist, (916) 808-5709, [email protected], Department of Community Response Attachments:
1- Description/Analysis
2- Paul & Sons, Inc Agreement
3- Shree Enterprise, LLC dba The Greens Agreement
4- Sky Riders Motel Agreement
5- Siyaram Hotels, LLC dba Gold Star Inn Agreement
6- Arden Acres Agreement
7- Step Up on Second Street Agreement
Description/Analysis
File ID: 2023-01088 9/5/2023 Consent Item 11.
Issue Detail: Homelessness is an issue that impacts communities without regard to geographic or political boundaries and for which there is no single answer or approach. Shelters play a significant role in addressing homelessness and as such it is necessary to create a systemic approach to addressing homelessness which includes low to no barrier crisis shelters. The City of Sacramento recognizes the important role that such shelters play in helping move people out of homelessness and into permanent housing.
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 Sacramento Point-In-Time (PIT) Count 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. Despite the increase in people experiencing homelessness, there was a noted decrease in unsheltered family homelessness, which is largely attributed to the work of the City Motel Program and its ability to assist families with shelter and services.
In mid-December 2020, the City utilized $250,000 of existing Coronavirus Relief Fund (CRF) to contract with Paul & Sons, Inc and Shree Enterprises for the creation of the City Motel Program, a non-congregate sheltering program.
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.
Since January 27, 2021, City staff continued expansion of the City Motel Program including an agreement with Sky Riders motel in April 2021 to add 30 rooms, an agreement with Siyaram Hotels, LLC in October 2021 to add 33 rooms, and an agreement with Arden Acres in December 2022 to add up to 49 rooms to the program. Additionally, the City has partnered with Step Up on Second Street and City of Refuge to provide on-site management, supportive services, and rehousing coordination to participants of the City Motel Program.
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
File ID: 2023-01088 9/5/2023 Consent Item 11.
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 would 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 June 28, 2022, City Council adopted Resolution No. 2022-0211, which authorized the City Manager to sign all necessary grant agreements and related documents to receive the HHAP-3 funding, and to provide $1,986,420 (G02000976) of HHAP-3 funds to the City Motel Program.
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. These funds were used for non-FEMA reimbursable expenses in the City Motel Program.
On February 7, 2023, the City Council adopted Resolution No. 2023-0036, which authorized the City Manager, or the City Manager’s designee, to accept the state allocation of $24,791,417 in grant funds and increase the HHAP-4 Grant Fund Project (G02000980) and it’s corresponding revenue and expenditure budget in G02000982 (Operating Grant Fund, Fund 2702.) On April 17, 2023, the City Council passed a motion to execute supplemental agreements for the City Motel Program to extend to August 31, 2023.
On May 11, 2023, the COVID-19 Disaster Declaration Incident Period closed. Therefore, the City is no longer able to seek FEMA reimbursement for the City Motel Program. Since the FEMA reimbursement period ended, the City Motel Program has been funded using already authorized ARPA and HHAP funding.
In June 2023, City Staff released a Request for Qualifications (RFQ) for the City Motel Program Motel Owners for ten months of service from September 2023 through June 2024. In total, the City received the following six responses to the RFQ for motel owners, five from motel owners already participating in the program and one from a motel owner new to the program:
· Paul & Sons Inc currently have 40 rooms in the program and offered up to 132 rooms. · Shree Enterprises currently have 71 rooms in the program and offered 71 rooms. · Siyaram Hotel dba Gold Star currently have 32 rooms in the program and offered 32 rooms. · Sky Riders currently have 30 rooms in the program and offered 30 rooms. · Arden Acres currently have up to 49 rooms in the program and offered 24 rooms.
File ID: 2023-01088 9/5/2023 Consent Item 11.
· Motel 6 Central is new to the City Motel Program and offered up to 90 rooms.
The City deemed all six motel owners as qualified to participate in the program; however, given the current program funding, only five could be funded. The RFQ awardees include Paul & Sons Inc (65 rooms), Shree Enterprises (71 rooms), Siyaram Hotel dba Gold Starr (32 rooms), Sky Riders (30 rooms), and Arden Acres (24 rooms). Since Motel 6 Central is qualified for the program, they could be added to the City Motel Program if sufficient funding becomes available, pending Council approval.
In June 2023, City Staff released a Request for Proposals (RFP) for City Motel Program Support Services for ten months of service from September 2023 through June 2024. The City only received one response to the RFP from Step Up on Second Street. The RFP awardee was Step Up on Second Street in the amount of $1,437,832 who will provide support services for all motels in the City Motel Program beginning September 1, 2023.
Since the inception of the City Motel Program in December 2020, over 1,575 individuals, including 490 children, experiencing homelessness have been served. The City Motel Program provides a motel room to stay-in along with wrap around services including housing coordination and navigation, program referrals, and move-in support to ensure once clients find housing, they can remain stably housed. Of the 472 participants that left to known destinations, 54% (or 257) went to permanent or positive temporary housing.
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.
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 23, 2023, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the CEQA [CEQA Sections 15061(b)(3) and 15378(b)(2)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: DCR staff have competed the RFP and RFQ process and have notified the awardees. The RFP/RFQ process has enabled City staff to choose the top-ranked proposers who exhibit experience working with a vulnerable population of individuals experiencing homelessness, ability to serve various Council districts, and ability to respond quickly and work in
File ID: 2023-01088 9/5/2023 Consent Item 11.
collaboration with DCR. Services provided by these agreements address the ongoing need for both shelter and supportive services for individuals and families experiencing homelessness.
Financial Considerations: Sufficient funding is available in the HHAP-3 Grant Project (G02000970) in the amount of $1,961,175 (Operating Grants, Fund 2702) and in the HHAP-4 Grant Project (G02000980) in the amount of $4,288,825 to execute the Agreements with Paul & Sons, Inc for a not to exceed amount of $1,750,000, Shree Enterprises for a not-to-exceed amount of $1,944,000, Sky Riders for a not to exceed amount of $902,000, Siyaram Hotels, LLC dba Gold Star Inn for a not to exceed amount of $872,000, and with Arden Acres for a not to exceed amount of $782,000, for a total of $6,250,000.
Paul & Sons Shree
Enterprises
Sky Riders Gold Star Arden Acres
HHA
P-3
$ 549,129.00 $ 610,004.00 $ 283,037.00 $ 273,623.00 $ 245,382.00 HHA
P-4
$ 1,200,871.00 $ 1,333,996.00 $ 618,963.00 $ 598,377.00 $ 536,618.00 Total $ 1,750,000.00 $ 1,944,000.00 $ 902,000.00 $ 872,000.00 $ 782,000.00 6,250,000.00 Sufficient funding is available (Measure U, Fund 2401) in the Homeless Housing Initiative MYOP (I02000200) to execute the agreement with Step Up on Second Street for an amount not-to-exceed $1,437,832.
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.