City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00718 4/1/2025 Consent Item 3.
Agreement: City Motel Shelter Program Agreement with Jibboom Hotels Inc dba Motel 6 Old Sacramento North [Published for 10-day Review on 3/21/2025] File ID: 2025-00718
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute an Agreement with Jibboom Hotels Inc. dba Motel 6 Old Sacramento North for an amount not to exceed $1,650,000.
Contact: Brian Pedro, Director, (916) 808-7816, [email protected]; Rodolfo Davidson, Program Manager, (916) 808-3703, [email protected]; Department of Community Response
Attachments:
1-Description/Analysis
2-Jibboom Hotels Inc. dba Motel 6 Old Sacramento North Agreement Description/Analysis
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 that 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 City of Sacramento has made a significant investment of resources to increase the access and availability of shelter beds, services, and permanent housing to those experiencing homelessness.
The positive impact from these investments can be seen from the latest Sacramento Point-In-Time (PIT) Count that was released in June 2024. According to the 2024 Sacramento PIT Count released by the Sacramento County Continuum of Care, the County of Sacramento had an estimated homeless population of 6,615, a 28.7% decrease from the 2022 PIT Count. Between 2022 and 2024, the number of people experiencing homelessness in shelters increased by 2.2%, from 2,614 to 2,671. In contrast, the number of unsheltered individuals decreased by 40.8%, dropping from 6,664 to 3,944. Despite recent improvement in the number of individuals experiencing homelessness,
File ID: 2025-00718 4/1/2025 Consent Item 3.
Sacramento has still seen a 19% increase in homelessness from the 2019 PIT count.
In addition to the recent decrease in the overall number of people experiencing homelessness in Sacramento, there continues to be a significant improvement in sheltering families experiencing homelessness. The 2024 Sacramento PIT Count reported 96.7% of families experiencing homelessness were sheltered, up from 68% in 2022 and 48% in 2019. The increased percentage of sheltering families experiencing homelessness is largely attributed to the work of the City Motel Shelter Program and its ability to assist families with shelter and support services. This program is unique as the only City-run family shelter that implements a zero-barrier approach, ensuring equitable access to housing and services without any preconditions.
The COVID-19 pandemic highlighted the need for non-congregate settings to provide shelter for high -risk individuals. In mid-December 2020, the City utilized $250,000 of the existing Coronavirus Relief Fund (CRF) to contract with Paul & Sons, Inc. and Shree Enterprises for the creation of the City Motel Shelter Program, a non-congregate sheltering program.
On November 8, 2018, the City of Sacramento adopted Resolution No. 2018-0436 declaring a shelter crisis period between December 1, 2018, and March 1, 2019. Since then, the City has declared a shelter crisis six more times. Most recently, on January 28, 2025, the City Council adopted Resolution No. 2025-0025 declaring a shelter crisis in the City of Sacramento that will remain in effect until it is terminated by City Council.
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.
Following a March 2021 RFP process focused on increasing the number of shelter beds for women and families, 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 32 rooms, and an agreement with Arden Acres in December 2022 to add up to 49 rooms to the program. These additions brought the total number of motel rooms in the City Motel Shelter program to 200 rooms, which has been the operating capacity of the program since December 2022.
On February 8, 2022, the City Council adopted Resolution No. 2022-0041, which recognized the urgent need to continue offering non-congregate shelter options to the local unhoused population facing imminent health and safety threats. This Resolution authorized the City Manager to continue providing motel vouchers and related services for unsheltered households qualified to receive federal funding support as long as FEMA continued to allow the City to seek full reimbursement for members of the unsheltered population most at-risk of contracting COVID-19.
File ID: 2025-00718 4/1/2025 Consent Item 3.
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 its corresponding revenue and expenditure budget in G02000982 (Operating Grant Fund, Fund 2702.) On May 11, 2023, FEMA’s COVID-19 Disaster Declaration Incident Period closed. As of that date the City is no longer able to seek FEMA reimbursement for the City Motel Shelter Program. The City received the first reimbursement installment from FEMA in the amount of $937,099.86 for motel stays from December 15, 2020, through June 11, 2021. The City’s remaining $7,802,657 reimbursement request for motel stays from June 11, 2021 through May 11, 2023 is still under review by FEMA.
Since the FEMA reimbursement period ended, the City Motel Shelter Program has been funded using already authorized federal American Rescue Plan Act (ARPA) and state Homeless Housing, Assistance and Prevention (HHAP) grant funding to provide shelter to families.
On September 5, 2023, the City Council continued the City Motel Shelter Program by passing Motion No. 2023-0245 authorizing agreements with Paul & Sons, Inc. (65 rooms), Shree Enterprises, Inc (71 rooms)., Sky Riders (30 rooms), Siyaram Hotels, LLC dba Gold Star (32 rooms), Arden Acres (30 rooms), and an agreement with Step Up on Second Street for operations and support services for the City Motel Program through June 30, 2024.
On June 26, 2024, the City Council passed Motion No. 2024-0207 authorizing agreements with Paul & Sons Inc (51 rooms), Motel 6 Downtown (38 rooms), Motel 6 Central (51 rooms), Siyaram Hotel dba Gold Starr (31 rooms), and Arden Acres (29 rooms) through February 28, 2025.
In December 2024, City Staff released a Request for Proposals (RFP) for the City Motel Shelter Program Motels. In total, the City received nine responses to the RFP from the following motels:
1) Jibboom Hotels Inc- up to 105 rooms.
2) College Hotel’s Inc- up to 110 rooms.
3) Arden Acres, Inc- up to 30 rooms.
4) Paul & Sons Northgate Inc- up to 132 rooms.
5) Sacramento Vagabond Inn Executive Oldtown, LLC- up to 107 rooms. 6) Siyaram Hotel dba Gold Star- up to 32 rooms.
7) A1 Financial Services LLC - up to 200 rooms.
8) Shrim Hotels, LLC- up to 20 rooms.
9) Sky Riders Motel - up to 30 rooms.
After initial review, Staff deemed that one proposal from Sky Riders Motel was non-responsive due to its failure to meet multiple requirements outlined in the RFP. A review panel, including the City and Sacramento Steps Forward staff, scored the remaining eight proposals. City staff entered into negotiations with the top three ranking proposals and came to an agreement for 60 rooms with
File ID: 2025-00718 4/1/2025 Consent Item 3.
Jibboom Hotels Inc, 60 rooms with College Hotel’s Inc, and 29 rooms with Arden Acres Inc.
Paul & Sons Northgate Inc. and Sacramento Vagabond Inn Executive Oldtown were tied for fourth place following the initial evaluation. As a result, both parties entered negotiations. After a thorough review of geographic shelter needs and the availability of surrounding affordable food options, Paul & Sons Northgate Inc. was identified as the preferred option. City staff then entered into an agreement for 51 rooms with Paul & Sons Northgate Inc. During negotiations City staff were able to lower the overall cost of the motel owner agreements by 20%, saving the City approximately $1.5 million from the previous year’s costs.
On February 25, 2025, the City Council passed Motion No. 2025-0061 authorizing agreements with College Hotel’s Inc. (60 rooms), Arden Acres (29 rooms), and Paul & Sons Inc. (51 rooms), for a total of 140 rooms, from March 1, 2025, through February 28, 2026.
City staff recommends entering into an agreement with Jibboom Hotels Inc. dba Motel 6 Old Sacramento North (60 rooms) from April 1, 2025, through February 28, 2026.
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 the City 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 City Council action. This item was published for 10-day review on March 21, 2025, 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 completed the RFP process and have notified the awardees. The RFP 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 collaboration with DCR.
Services provided by this agreement address the ongoing need for both shelter and supportive
File ID: 2025-00718 4/1/2025 Consent Item 3.
services for individuals and families experiencing homelessness.
Financial Considerations: Sufficient funding is available (Operating Grants, Fund 2702) in the HHAP-5 Grant Project (G02000990) to execute the Agreement with Jibboom Hotels Inc for an amount not to exceed $1,650,000.
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.