City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01267 7/30/2024 Consent Item 11.
Agreement Amendment: Salvation Army Anti-Displacement Program File ID: 2024-01267
Location: Zip codes: 95817, 95820, 95824, 95828; District 5, Represented by Vice Mayor Maple; and District 6 Represented by Councilmember Guerra
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute the attached second amendment to City Contract No. 2023-0154 with The Salvation Army, extending the contract through July 31, 2025, with an option to extend further through January 31, 2026, increasing the not-to-exceed amount under the contract by $500,000 for a total not-to-exceed amount of $1,000,000.
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, [email protected]; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, [email protected]; Axel Magallanes, Housing Analyst, (916) 808-1844, [email protected]; City Manager’s Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-Salvation Army Amendment
Description/Analysis
Issue Detail: As part of the City's Aggie Square Community Benefit Partnership Agreement and related Settlement Agreements, the City and the Regents of the University of California (“UC Davis”) committed $10 million for a range of programs and activities to counter potential resident displacement and support housing stability in the neighborhoods surrounding the Aggie Square project on the Stockton Boulevard corridor.
In February of 2023, the City Council approved four pilot programs implemented to reduce the likelihood of housing displacement for income-qualified households in the Stockton Boulevard Area (zip codes 95817, 95820, 95824, 95828). These programs cover an array of needs expressed by the community, including home repair, homelessness prevention, and first-time homebuyer programming.
To date, these four pilot programs have served 430 community members and expended $1 million
File ID: 2024-01267 7/30/2024 Consent Item 11.
along the Stockton Boulevard corridor to families in need of services.
The Salvation Army’s anti-displacement program pilot focused on homelessness prevention and provided one-time assistance with expenses related to an unexpected life occurrence (e.g. medical expenses, car repair, etc.) or rent, mortgage or utility assistance for no more than a three-month span to ensure housing stability and prevent homelessness. The original contract (City Agreement No. 2023-0254) was for $500,000 and the program aimed to serve 50-90 households. After 18 months, the program has helped 85 families with $450,000 in direct assistance. With The Salvation Army’s contract expiration approaching on July 31, 2024, staff recommends continuing the program until July 31, 2025 (with an option to extend further for 6 months) and providing additional funding in the amount of $500,000. This extension will allow The Salvation Army’s program to continue the much- needed assistance to the community.
Policy Considerations: The amendment recommended in this staff report carries out the City’s commitment with agreements surrounding Stockton Boulevard to provide housing anti-displacement and stabilization programming. The continuation of this program responds directly to the community survey completed in April of 2022, where respondents placed homelessness prevention as their greatest need. For contracts originally awarded for a price of at least $250,000 but less than $1,000,000, City Code section 3.04.020 requires City Council approval for contract amendments exceeding 10% of the original contract price.
Economic Impacts: To date, the economic impact of The Salvation Army’s program has helped stabilize housing and prevented homelessness for approximately 85 households. With an additional $500,000 added to the contract, another 50-90 community members can be served with these services.
Environmental Considerations: Execution of The Salvation Army’s contract amendment is not a project pursuant to CEQA Guidelines section 15378(b)(4) because it is the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
Sustainability: Not Applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: The Salvation Army is a qualified organization that responded to the City’s Request for Qualifications (RFQ #Q2302001451001) issued on November 17, 2022, and is able to provide programming that was ranked as a high need by the community to be served. Eight providers responded to the City’s RFQ, and the proposals were reviewed by a panel. On February 7, 2023, the City Council approved contracts with four providers recommended by the panel, including The Salvation Army, for housing anti-displacement programming. Staff is recommending this
File ID: 2024-01267 7/30/2024 Consent Item 11.
amendment in alignment with the City’s commitment to provide housing anti-displacement and stabilization programming in the Stockton Boulevard area.
Financial Considerations: Through the original contract with The Salvation Army (City Agreement No. 2023-0154), the City provided $500,000 to The Salvation Army out of the total $5 million set- aside for housing programming around Stockton Boulevard to provide housing stabilization and anti- displacement programming to the community. After piloting the four initial anti-displacement programs, sufficient funding is available in the Stockton Boulevard Anti-Displacement Project (I02189030) to continue programming in the area.
Local Business Enterprise (LBE): Not Applicable.