City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01615 10/21/2025
Supplemental Agreement: X Street Navigation Center [Published for 10-day Review on 10/09/2025]
File ID: 2025-01615
Location: 2970 X Street, District 5
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute Supplemental Agreement No. 3 to City Agreement No. 2023-1262, for the administration of operations of the X Street Navigation Center, with the Housing Authority of the City of Sacramento (Housing Authority) in an amount not to exceed $1,414,217, for a total not to exceed amount of $8,794,520.
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 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 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
File ID: 2025-01615 10/21/2025
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.
X Street Navigation Center
On April 15, 2021, the City amended the Master Administrative Services Agreement with the Housing Authority (Contract No. 2020-0326) 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 $4,628,284 of HHAP-4 funds (Contract No. 2023-1262).
On May 28, 2024, the City Council passed Mo. 2024-0147 to extend Contract No. 2023-1262 until June 30, 2025 and to transfer $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 (Contract No. 2020-0326) to the City’s currently operative agreement with the Housing Authority for the operation of the X Street Navigation Center (Contract No. 2023-1262). This included $90,030 of HHAP interest earned, increasing the overall not-to-exceed amount to $12,426,338.
On August 12, 2025, the City Council passed a motion authorizing the Interim City Manager to extend Contract No. 2023-1262 through October 31, 2025, to allow the Housing Authority to conduct closeout activities and transition shelter operations back to the City.
During the Housing Authority’s closeout process, Housing Authority staff determined that an additional $1,414,217 was expended to operate the shelter 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 to transfer additional funding not-to-exceed $1,414,217, for a new total not-to- exceed amount of $8,794,520 for the administration of operations at the X Street Navigation Center through October 31, 2025.
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.
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)
File ID: 2025-01615 10/21/2025
days prior to City Council action. This item was published for 10-day review on October 9, 2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: Pursuant to Government Code section 8698.4(a)(4), the California Environmental Quality Act does not apply to 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: Not applicable
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-5 Grant Project (G02000990) to execute the Agreement with the Housing Authority, in the amount of $1,414,217, for a total not to exceed amount of $8,794,520.
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.