City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00731 4/14/2026
[Contract Supplement] City Motel Shelter Program Support Services with Step Up on Second Street, Inc.
File ID: 2026-00731
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplemental Agreement No. 5 to City Agreement No. 2023-1185 with Step Up on Second Street, Inc. for an amount not-to-exceed $482,338, for a total not-to-exceed amount of $4,230,437.
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-Step Up on Second Street Supplement 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, 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 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 sheltered 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 program that implements a zero-barrier approach, ensuring equitable access to housing and services without any preconditions.
Since the City Motel Shelter Program’s inception in December 2020, the City has partnered with various non-profit organizations, including Hope Cooperative, City of Refuge, and Step Up on
File ID: 2026-00731 4/14/2026
Second Street, to operate and provide support services to families in the program. Since December 2020, the City Motel Shelter Program has served 4,340 family members, including 2,135 children, experiencing homelessness. Of the 3,735 family members that have exited the City Motel Shelter Program, 1,432 have exited to positive destinations, including 1,131 that moved into permanent housing.
In June 2023, City staff released a Request for Proposals (RFP) for City Motel Program Support Services and received one response from Step Up on Second Street.
On September 1, 2023, the City contracted (City Contract No.C2023-1185) with Step Up on Second Street to operate the City Motel Program and provide support services to the families in the program.
These services include case management, housing coordination and navigation, program referrals, move-in to housing support, and ongoing support for up to one year to ensure that families maintain housing after leaving the program.
On June 26, 2024, the City Council passed a motion to continue providing support services to families in the City Motel Program by authorizing a supplemental agreement with Step Up on Second Street through February 28, 2025 (City Contract No.C2023-1185-01).
On February 25, 2025, the City Council passed a motion to continue providing support services to families in the City Motel Program by authorizing a supplemental agreement with Step Up on Second Street through February 28, 2026 (City Contract No.C2023-1185-02).
The City recently executed a contract amendment on February 20, 2026 (Contract No.C2023-1185- 04 ), extending the City’s agreement with Step Up on Second Street to continue providing outreach services for the City Motel Shelter Program for an additional three months through May 31, 2026.
However, no additional funding was added to the agreement. City staff is recommending adding these additional funds to support the wind-down operations of this program as it transitions to a voucher-based model. The new program, entitled the Emergency Shelter Voucher program (ESV), is based on input received from the City’s audit of the City Motel Program. It is scheduled to open on June 1, 2026, and will maintain the capacity of 200 units. All current City Motel Shelter Program participants will be transferred into the new ESV program when the City Motel Shelter Program closes.
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.
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 Guidelines [CEQA Sections 15061(b)(3) and 15378(b)(2)].
File ID: 2026-00731 4/14/2026
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: There is sufficient funding available (Measure U Fund, Fund 2401) in the Community Response MYOP (I23000100) to execute a supplemental agreement with Step Up on Second Street in an amount not-to-exceed $482,338, for a total not-to-exceed amount of $4,230,437.
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. ..End
CONTRACT #: 2023-1185-05 PROJECT: I23000147 CONTRACT NAME: Step Up Support Services NOT-TO-EXCEED AMOUNT: $4,230,437.00 AGREEMENT TERM:Expires 5/31/26SOLICITATION: N/AAUTHORIZED RENEWALS: N/A LBE (Y/N): NDEPARTMENT/DIVISION:Department of Community Response COUNCIL FILE ID: 2026-00731 Contract Amendment, change in NTE amount - Approved by CAO 1-28-2026 CITY OF SACRAMENTO CONTRACT AMENDMENT CHANGE IN NOT-TO-EXCEED AMOUNT The City of Sacramento (“City”) and Step Up on Second Street (“Contractor”), as parties to that certain contract designated as Contract Number 2023-1185, including any and all prior amendments modifying the contract (the contract and all amendments are hereafter collectively referred to as the “Contract”), hereby amend the Contract as follows: 1. As of April 14, 2026, the revised Budget attached hereto as Attachment 6 to Exhibit B supersedes Attachment 5 to Exhibit B. 2. The maximum not-to-exceed amount that is specified in the Contract for payment of Contractor’s fees and expenses is increased by $482,338.00, and the Contract’s maximum not-to-exceed amount is amended as follows: Contract’s original not-to-exceed amount: $1,437,832.00 Net change by previous amendments: $2,310,267.00 Not-to-exceed amount prior to this amendment: $3,748,099.00Increase by this amendment: $482,338.00 New not-to exceed amount including all amendments: $4,230,437.00 3. Contractor warrants and represents that the person or persons executing this contract amendment on behalf of Contractor is duly authorized by Contractor to sign this amendment and bind Contractor to the terms hereof. 4. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as modified by this amendment. [SIGNATURES ON FOLLOWING PAGE]
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Brian Pedro, Director, DCR City of Sacramento Deputy City Attorney Approved By: Attest: ____________________________________ Tod Lipka, CEO City Clerk Approved By: Ryan Moore, Assistant City Manager City of Sacramento