City of Sacramento
City Council - 5PM Report
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File ID: 2025-01391 7/29/2025
Agreement Amendment: The Salvation Army Anti-Displacement Program File ID: 2025-01391
Location: Zip codes: 95817, 95820, 95824, 95828; Districts 5, 6 Recommendation: Pass a Motion authorizing the interim City Manager or designee to execute the attached third amendment to City Contract No. 2023-0154 with The Salvation Army, increasing the not-to-exceed amount under the contract by $150,000 for a total not-to-exceed amount of $1,150,000.
Contact: Leslie Fritzsche, Economic Development Manager, (916) 808-5450, [email protected]; Ya-yin Isle, City Housing Manager, (916) 808-1869, [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-The Salvation Army Amendment #3
Description/Analysis
Issue Detail: On April 13, 2021, City Council approved the Community Benefits Partnership Agreement (CPBA), between the City, the Regents of the University of California, and Wexford Development LLC outlining employment, workforce training, housing, youth engagement, and transportation commitments by all parties surrounding the new development of the Aggie Square project along Stockton Boulevard. One key component of the CBPA included the commitment of $5 million from the City to fund a range of programs and activities to counter potential resident displacement and support housing stability in the neighborhoods surrounding Aggie Square. The City ended up funding four anti-displacement pilot programs have served over 1,900 community members and the City has expended about $3 million in the Stockton Boulevard area.
To determine the programs needed to address potential displacement and housing stability, the City
File ID: 2025-01391 7/29/2025
completed a survey in the spring of 2022 to better understand the community needs around this topic and utilized the results of that survey to contract with partners to implement programs and assist qualifying residents with anti-displacement housing needs. The survey collected results from 367 individuals within the identified community zip codes surrounding Stockton Boulevard and UC Davis employees in the AFSCME Local 3299 employee union. The survey showed there was greatest demand for Home Repair (76%) and Homeless Prevention (73%) programs, with First-time Homebuyer programs (FTHB) third at 67%. The City then issued a Request for Proposals (RFP) seeking community organizations to administer these programs.
In February 2023, the City Council approved implementation of four pilot programs to be administered by the organizations selected from the RFP process for home repair, homelessness prevention ,and a first-time homebuyer program. The Salvation Army (TSA) was selected to administer one of two homelessness prevention programs, and the City entered into a contract with TSA in February 2023.
TSA’s homelessness prevention program provides 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 with the program aiming to serve 50-90 households. Since February of 2023, the original contract has been extended through July 31, 2025 (and the second amendment to the contract provided an option for the City to extend through January 31, 2026). TSA has served 360 households throughout the lifetime of its homeless prevention program. With the contract expiration approaching on July 31, 2025, staff recommends exercising the option to extend the program for an additional 6 months through January 31, 2026, and providing additional funding in the amount of $150,000 for such extension of time. This extension will allow TSA’s program to continue the much-needed assistance to the community.
In the coming months, staff plans to evaluate the current programs and issue a new request for qualifications (RFQ) for the anti-displacement work taking place around Stockton Boulevard. Staff will return to Council to seek the necessary authority to enter into new contracts with service providers.
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 TSA’s program has helped stabilize housing
File ID: 2025-01391 7/29/2025
and prevented homelessness for approximately 360 households. With an additional $150,000 added to the contract, another 50-90 community members can be assisted with these services Environmental Considerations: Execution of TSA’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: TSA is a qualified organization that responded to the City’s Request for Proposals (RFP #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 RFP, 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 TSA. Staff is recommending this amendment in alignment with the City’s commitment to provide housing anti- displacement and stabilization programming in the Stockton Boulevard area. The additional funding allocated to TSA’s program will allow the continuation of homelessness prevention services through January 31, 2026.
Financial Considerations: Through the original contract and subsequent two amendments with TSA, the City has provided $1 million to TSA 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 and fund extension of the TSA contract until January 31, 2026.
Local Business Enterprise (LBE): Not applicable.