City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01365 8/13/2024 Consent Item 6.
Supplemental Agreement: Property Lease Extension with Saint Paul Church, Fountain of New Life, and Pearl Joyner for the Emergency Bridge Housing at Grove Avenue File ID: 2024-01365
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 2 to City Agreement No. 2020-0240 with Saint Paul Church, Fountain of New Life, and Pearl Joyner for an amount not to exceed $89,976, for a total not to exceed amount of $411,816.
Contact: Brian Pedro, Director, (916) 808-7816, [email protected]; Jason Beckstrom, Program Specialist, (916) 808-5709, [email protected]; Department of Community Response
Attachments:
1-Description/Analysis
2-Saint Paul Church Supplemental Agreement
Description/Analysis
Issue Detail: On February 18, 2020, the Housing Authority Board approved the development of an emergency initiative to shelter unsheltered transitional aged youth (TAY) in sleeping cabins on Grove Avenue in Council district two. This initiative was developed on short notice and met Governor Newsom’s 100-day challenge and responded to the Shelter Crisis Declaration of January 14, 2020.
In 2020 the City, in partnership with Housing Authority staff, applied for and received $5.6 million of State Homeless Housing, Assistance, and Prevention Program Round 1 (HHAP-1) funds to launch this Tiny Home initiative for a two-year period.
On March 1, 2020, the City and Saint Paul’s Church, Fountain of New Life, and Pearl Joyner (Landlord) entered into a lease agreement (City Agreement No. 2020-0240) under which City leased a portion of the property known as 2771 and 2787 Grove Avenue, for use as a low barrier emergency bridge housing to service transitional aged youth ("TAY") experiencing homelessness.
The Lease was for an initial term of two years, plus successive one-year Renewal Terms. On
File ID: 2024-01365 8/13/2024 Consent Item 6.
February 28, 2022, City and Landlord agreed to extend the term of the Lease through June 30, 2024, under Supplemental Agreement No. 1, and City increased utilization of the premises by installing additional sleeping cabins (26 additional cabins for a total of 50), mobile trailers, storage containers, gazebos, emergency access lane, fencing and gates. The City agreed to pay an additional $2,280 in rent per month for the additional uses.
City staff recommend extending the lease agreement through June 30, 2025, so that the operations of the Emergency Bridge Housing Shelter at the site may continue. The lease amount has not increased since February 2022 and the landowner requested an increase with this renewal, and all future renewals. Therefore, City staff recommend increasing the lease amount by 3% with the proposed extension and providing annual increases of 3% (the typical annual increase for commercial leases) for future lease extensions.
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.
Economic Impacts: None.
Environmental Considerations: The report concerns administrative activities that will not have a significant effect on the environment and is exempt from the Environmental Quality Act (CEQA) review [CEQA Guidelines Sections 15061(b)(3); 15378(b)(2)]. Additionally, the City’s continued lease of existing facilities with no expansion of prior use is exempt from environmental review under CEQA Guidelines Section 15301.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: City staff recommends approval of the lease agreement extension through June 30, 2025. This will allow the continued operation of the Emergency Bridge Housing Shelter for transitional age youth at the site.
Financial Considerations: On May 1, 2023, City entered into Agreement No. 2023-0519 with the Sacramento Housing Redevelopment Authority (SHRA) to oversee the Emergency Bridge Housing for a not-to-exceed amount of $3,262,000. On May 28, 2024, City entered into the first supplement of Agreement No. 2023-0519 with the Housing Authority of the City of Sacramento (the agreement was assigned from SHRA to the Housing Authority in this supplement), increasing the total not-to-exceed amount to $3,991,097 and extending the agreement through February 28, 2025. Per this agreement, the Housing Authority of the City of Sacramento pays the lease payments for the Emergency Bridge Housing at Grove Avenue. There are no new financial considerations in this report. Sufficient funding is available in the HHAP-3 Grant Program (G02000970) to execute this agreement.
File ID: 2024-01365 8/13/2024 Consent Item 6.
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.
CONTRACT
ROUTING SHEET
Contract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.
General Information (Required)
Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________ Assessor’s Parcel Number(s): ________________________________________________________________ Contract Effective Date: _________ Contract Expiration Date (if applicable): _________ $ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________ Other Party: ______________________________________________________________________________ Project Title: _____________________________________________________________________________ Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________ City Council Approval: if YES, Council File ID#: __________ Contract Processing Contacts
Department: ______________________________
Contract Coordinator: _______________________
Project Manager: ___________________________
(PDLO
BBBBBBBBBBBBBBBBBBBBBBBB______
Department Review and Routing
(Signature) (Date)
(Signature) (Date)
(Signature) (Date)
$FFRXQWLQJ
6XSHUYLVRU
'LYLVLRQ0DQDJHU
2WKHU
(Signature) (Date)
Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.) _______________________________________________________________________________________ ------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ &&5HY
5HFRUGLQJ5HTXHVWHG 2WKHU3DUW\6LJQDWXUH5HTXLUHG
2020-0240 02
263-0121-002; 263-0121-019
07/01/2024 06/30/2025
$ 411,816.00 $ 89,976.00
Saint Paul Church; Fountain of New Life; Pearyl Joyner
Emergency Bridge Housing- Grove Avenue Lease
2024-01365
Jason Beckstrom
Madolyn Ruberg [email protected]
YES
City Manager