City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01225 8/12/2025
Supplemental Agreements: Emergency Bridge Housing and X Street Navigation Center [Two- Thirds Vote Required]
File ID: 2025-01225
Location: 2787 Grove Avenue, District 2; 2970 X Street, District 5 Recommendation: Pass a Motion by two-thirds vote waiving the requirement for 10-day posting of agreements over $1 million under City Code section 4.04.020(C) and Council Rules of Procedure Chapter 7, Section E.2.d; Pass a Motion 1) authorizing the Interim City Manager or designee to execute Supplemental Agreement No. 3 to City Agreement No. 2023-0519, for the administration of operations of Emergency Bridge Housing at Grove Avenue, with the Housing Authority of the City of Sacramento (Housing Authority) in an amount not to exceed $266,866, for a total not to exceed amount of $4,257,963; and 2) authorizing the Interim City Manager or designee to execute Supplemental Agreement No. 2 to City Agreement No. 2023-1262, for the administration of operations at the X Street Navigation Center, with the Housing Authority, to extend through October 31, 2025.
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- Housing Authority Emergency Bridge Housing at Grove Avenue Supplemental Agreement 3- Housing Authority X Street Navigation Center Supplemental 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 systematic approach to addressing homelessness, which 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 into increasing the access
File ID: 2025-01225 8/12/2025
and availability of shelter beds, services, and permanent housing for 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 by the Sacramento County Continuum of Care. According to the 2024 PIT Count, 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, Sacramento has still seen a 19% increase in homelessness from the 2019 PIT count.
Emergency Bridge Housing at Grove Avenue
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 a tiny-home shelter initiative, known as Emergency Bridge Housing, for a two-year period. Initially 24 tiny home cabins were installed, which expanded to a total of 50 cabins in 2022. Property at 2787 Grove Avenue, owned by the St. Paul’s Church of God in Christ, was utilized to launch this initiative to assist unhoused transitional aged youth (TAY) ages 18-24 to receive shelter and achieve stabilization through case management and resources. The cabins are equipped with beds, limited storage space, heating, and air conditioning. Guests also have access to community space both indoors and outdoors to interact with each other.
The Housing Authority entered into an agreement with First Step Communities (FSC) to operate the tiny home community. Operational responsibilities include but are not limited to onsite 24-hour security, providing three meals a day, laundry, hygiene, sanitation, and community engagement services. Individualized case management is provided in coordination with social service agencies and other community-based organizations to include assistance for employment, transportation, health and wellness care, and behavioral health assistance. All referrals to fill vacancies come through the Coordinated Access System.
On March 10, 2020, the City entered into a Master Administrative Services Agreement with the Housing Authority to provide the City administration, management, and operation of EBH at Grove Avenue using $5,596,400 of HHAP-1 funds. An amendment to the Master Administrative Services Agreement added $92,500 bringing the total City funding for EBH at Grove Avenue to $5,688,900 from March 2020 through June 2023.
On May 1, 2023, the City entered into a Grant Agreement with the Housing Authority for the continued operations of EBH at Grove Avenue (Contract No. 2023-0519) utilizing $3,262,000 of HHAP-3 funds through June 30, 2024.
On May 28, 2024, the City Council passed Mo. 2024-0147 to account for $729,097 of unspent HHAP -1 funds and interest income from the 2020 Master Administrative Services Agreement to ensure that
File ID: 2025-01225 8/12/2025
it was spent in accordance with the City’s new agreement with the Housing Authority, Contract No. 2023-0519. The City Council also voted to extend the agreement by eight months until February 28, 2025.
On March 1, 2025, City staff entered into a supplemental agreement with the Housing Authority to extend services through April 30, 2025.
During the Housing Authority’s closeout process, Housing Authority staff determined that an additional $266,866 was expended to operate the shelter through April 30, 2025. Due to unforeseen facility repair costs, increased staffing costs, and rising operational expenses incurred by the Housing Authority as a result of inflation, City staff recommend entering into Supplemental Agreement No. 3 with the Housing Authority for Emergency Bridge Housing at Grove Avenue to extend the agreement through August 31, 2025, for a not to exceed amount of $266,866, for a total not to exceed amount of $4,257,963.
X Street Navigation Center
On April 15, 2021, the City amended the Master Administrative Services Agreement with the Housing Authority to include $7,708,024 of HHAP-1, Kaiser Foundation, Measure U, and Emergency Solutions Grant (ESG) CARES funds for the construction and operation of the X Street Navigation Center. The center opened on September 21, 2021, to house up to 100 homeless adults on property owned by Caltrans, located under Business 80 at the intersection of Broadway and Alhambra.
On October 1, 2023, the City entered into a Grant Agreement with the Housing Authority to continue operations at the X Street Navigation Center through September 30, 2024, using an additional $4.6 million of HHAP-4 funds (Contract No. 2023-1262).
On May 28, 2024, the City Council passed Mo. 2024-0147 to account for $2,752,019 of unspent HHAP-1 funds, Kaiser funds, City Measure U funds, and earned interest funds from the 2020 Master Administrative Services Agreement to ensure that it was spent in accordance with the City’s new agreement with the Housing Authority, Contract No. 2023-1262. The City Council also voted to extend the agreement by nine months until June 30, 2025.
Due to unforeseen facility repair costs, increased staffing costs, and rising operational expenses incurred by the Housing Authority as a result of inflation, City staff recommend entering into Supplemental Agreement No. 2 with the Housing Authority for the X Street Navigation Center, extending the Agreement through October 31, 2025. During this time, the Housing Authority will conduct close out activities and determine the amount of additional operational funds expended for shelter operations through June 30, 2025. Any additional supplemental agreements to add funding will come to City Council for consideration.
Policy Considerations: Pursuant to Sacramento City Code Section 3.04.020, any agreement involving an expenditure of $250,000 or more requires City Council approval.
File ID: 2025-01225 8/12/2025
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.
Economic Impacts: None.
Environmental Considerations: Pursuant to Government Code section 8698.4(a)(4), the California Environmental Quality Act does not apply these contracts. Additionally, this report concerns activities that do not have the potential for causing a significant effect on the environment and would be exempt from the CEQA (CEQA Guidelines section 15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The City of Sacramento declared a shelter crisis emergency indicating that there are not enough beds to serve individuals experiencing homelessness and shelter beds need to be made available as soon as possible. The United States Interagency Council on Homelessness recommends that “shelters must be low barrier, focus on assessment and triage, and intentionally link to permanent housing resources so that people move through to housing quickly”.
The Housing Authority’s significant experience in providing housing and services to people in need throughout Sacramento makes the agency a natural partner to the City to administer the shelter operations and re-housing strategy for people experiencing homelessness in Sacramento. The recommended amendments will allow the Housing Authority to complete all administrative tasks and close out the transition of shelter operations from the Housing Authority back to the City.
Financial Considerations: Sufficient funding is available (Operating Grants, Fund 2702) in the HHAP-4 Grant Project (G02000980) to execute the Agreement with the Housing Authority, in the amount of $266,866, for a total not to exceed amount of $4,257,963.
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.