City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01377 9/17/2024 Consent Item 2.
Stockton Boulevard Anti-Displacement Programs: Contracts with Step Up on Second Street, Inc.
File ID: 2024-01377
Location: Stockton Boulevard Area; District 5, Represented by Vice Mayor Maple; District 6, Represented by Councilmember Guerra
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute: 1) a professional services contract with Step Up on Second Street, Inc. for a total not-to- exceed amount of $400,000 for an initial term of 12 months with the option to extend for an additional 6 months for services related to the City’s Stockton Boulevard Anti-Displacement program; and 2) a second supplement to City Agreement No. 2024-0179 with Step Up on Second Street, Inc. in the amount of $790,000 for a new not-to-exceed amount of $1,340,000 for anti-displacement services related to the American Federation of State, County and Municipal Employees Local 3299 (AFSCME) Settlement Agreement program.
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]; Office of Innovation & Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2- Step Up on Second Street, Inc. Stockton Boulevard Anti-Displacement Contract 3- Step Up on Second Street, Inc. AFSCME Settlement Agreement Contract Supplement Description/Analysis
Issue Detail: On February 7, 2023, City Council approved the implementation of four pilot programs in the Stockton Boulevard area to reduce the risk and likelihood of housing displacement around the development of the Aggie Square project. The four pilot programs range in services from homeless prevention to home repair as well as a first-time homebuyer program. All four pilot programs serve low-income residents within the zip codes of 95817, 95820, 95824, and 95828 and since inception have served 645 individuals providing over $1 million in direct assistance.
File ID: 2024-01377 9/17/2024 Consent Item 2.
Step Up on Second Street, Inc. offers homeless prevention assistance to those who are unsheltered or at risk of losing housing by covering one-time costs, identifying housing options, completing the necessary application process, paying application fees, and associated moving/household costs.
Step-Up staff have worked diligently to establish a presence in the Stockton Boulevard area by attending community meetings and making connections with established community organizations.
They have connected to the City’s 2-1-1 system to ensure broad access for eligible residents and all participant data is entered into the Homeless Management Information System (HMIS) to avoid any duplication of services. Through the City’s Stockton Boulevard anti-displacement program, Step Up has aided 291 individuals in 101 households with anywhere between 1-8 months of rental/utility assistance.
On February 27, 2024, City Council authorized expansion of the Step Up on Second Street, Inc. (“Step Up”) anti-displacement program for AFSCME employees. This program was implemented in partnership with AFSCME representatives and Step-Up in order to address the needs of their union members and has operated since March of 2024. Funds for the program were provided by the Regents of the University of California, Davis (“UC Davis”) as part of a settlement between UC Davis and AFSCME. Due to Step Up’s initial success in operating the anti-displacement program, this program has served 41 households based on referrals directly from AFSCME representatives and their members continue to express the need for assistance. This iteration of the program allows for a wider array of eligible uses including assistance with mortgage and costs for urgent habitability repairs. AFSCME membership has shown a great need for the assistance offered through this program and serves as an option for members in the area whose income would disqualify them for other types of assistance.
Staff is recommending a renewal of Step Up’s anti-displacement programming for AFSCME employees to continue providing these vital services to households who face displacement. An increase of funding for client services in the AFSCME program will allow more members an opportunity to receive assistance.
Policy Considerations: The contract and supplement recommended in this staff report continue the City’s commitment to provide housing anti-displacement and stabilization programming surrounding Stockton Boulevard. Additionally, appropriation of these funds and the approach of utilizing housing anti-displacement programming aligns with programs included in the City’s updated Housing Element of the General Plan and will be coordinated with the ongoing work to develop and implement the Stockton Boulevard Specific Plan. Sacramento City Code section 3.04.020 requires City Council approval for contracts $250,000 and over and amendments that exceed 10% of the original contract price.
Economic Impacts: The funding allocated from the City and UC Davis towards anti-displacement programming helps to provide an inclusive economic development approach to the Aggie Square
File ID: 2024-01377 9/17/2024 Consent Item 2.
project. It ensures that local area residents will have the necessary assistance to stay in their communities, providing an opportunity to benefit from the Aggie Square project.
Environmental Considerations: The actions specified in this report do not constitute a “project” under the California Environmental Quality Act (CEQA) because they involve 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. (CEQA Guidelines section 15378(b)(4)). Any individual program that results in any CEQA-qualifying projects would be reviewed separately.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Step Up 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 for various types of programs, 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 Step Up, for housing anti-displacement programming. Staff is recommending this contract and 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 Step Up (City Agreement No. 2023- 0159), the City provided $530,000 to Step Up out of the total $5 million set aside for 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 renew Step Up’s contract for $400,000.
Through Step Up’s original contract that offers anti-displacement programming for AFSCME members (City Agreement No. 2024-0179), Step Up received $500,000 out of the $5 million set aside by UC Davis for anti-displacement and housing stabilization services in the Stockton Boulevard area.
The $5 million was part of a settlement agreement between UC Davis and AFSCME and the funding is from UC Davis passed through to the City to administer. Sufficient funding remains in the AFSCME Anti-Displacement Project (E02000120) to fund Step Up’s amendment in the amount of $790,000 and City staff have worked collaboratively with AFSCME union representatives to recommend programming that addresses the needs of their members.
Local Business Enterprise (LBE): Not applicable.