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23-11576 Approve Professional Service Agreements with SB Express One LLC

Mayor and City Council
January 17, 2024

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23-11576 Approve Professional Service Agreements with SB Express One LLC
Meeting
January 17, 2024
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Mayor and City Council
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: January 17, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Mary E. Lanier, Interim Director of Community Development and Housing
Department: Community Development and Housing
Subject: Approve Professional Service Agreement with SB Express One LLC (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California:

1. Approve the Professional Service Agreement with SB Express One LLC (Super 8 Motel) for the provision of motel rooms ranging from 28 rooms (minimum) to 75 rooms (maximum) for a total amount not to exceed $1,008,000 and for a term beginning January 17, 2024, through January 17, 2025.

2. Authorize the City Manager or designee to take any further actions and execute any further agreements or documents as necessary to effectuate the implementation of the Motel Voucher Program.

Executive Summary
The Professional Service Agreement (PSA) for SB Express One LLC was excluded from the Motel Voucher Program packet presented to the Council on December 6, 2023, due to additional review and pending submittal of information. The motel owner has provided all required documentation to Housing Division staff and now complies with City requirements to participate in the Motel Voucher Program. SB Express One LLC will provide up to 75 rooms. There is no fiscal impact on the General Fund.

Background
On December 7, 2022, the Mayor and City Council unanimously agreed to allocate $12.5 Million in American Rescue Plan Act (ARPA) funding towards the development and operation of a low-barrier, non-congregate navigation center to help its unhoused 1 8
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residents, of which $4.5 Million was directed towards the Navigation Center’s operations.

On February 1, 2023, the Mayor and City Council unanimously voted to adopt a Resolution declaring a Homelessness State of Emergency in response to an ongoing statewide and regional homelessness crisis.

On May 17, 2023, the Mayor and City Council approved the City’s Homelessness State of Emergency Implementation Plan, which outlined the need for emergency and interim shelter as most of the City’s existing shelters are at or near full capacity.

On July 19, 2023, the Mayor and City Council approved an Amendment to Permanent Local Housing Allocation Funds to assist individuals experiencing homelessness.

On August 16, 2023, the Mayor and City Council approved a Substantial Amendment to Fiscal Year 2020-2021 Annual Action Plan associated with Community Development Block Grant Coronavirus Relief (CDBG-CV) funds to support interim shelter activities.

On December 6, 2023, the Mayor and City Council approved a Motel Voucher Program and authorized several Professional Service Agreements with motel operators to provide interim shelter.

Discussion
The City released a Request for Proposal on September 11, 2023, in search of motel operators willing to participate in the City’s Motel Voucher Program. The RFP closed on October 16, 2023, and the City received a total of four (4) proposals, two (2) of which were from motel establishments outside of city limits. SB Express One LLC, also known as Super 8 Motel, is located within city limits, and the owner submitted a successful proposal to the City, but additional review and documentation were required for consideration during the December 6, 2023, Mayor and City Council meeting. As a result, the Professional Service Agreement with SB Express One LLC was pulled.

Since that time, the owner of SB Express One LLC successfully renewed its business license and is recommended to move forward as a participant in the City’s Motel Voucher Program, subject to Mayor and City Council approval. This Agreement will be effective January 17, 2024. The program is tentatively set to commence February 6 th, 2024. The City is currently in need of 200 beds to meet its shelter threshold capacity.

The 75 rooms provided in this Agreement will help the City reach that goal.

Motel vouchers can be issued to individuals or families anywhere from one (1) day up to twenty-eight (28) days. The length of a motel stay will be determined on a case-by- case basis by the City’s outreach team. Motel voucher participants must participate in case management services. At times, it may be necessary to extend a person’s motel stay beyond twenty-eight days. The (28) day limit is due to situations when a person has secured some form of housing, but the individual needs a place to stay until their housing unit is ready for move-in, which could be in a few days or weeks. In cases like this, a homeless outreach worker can petition the City’s Housing Division for a motel 1 8
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stay extension. The Homeless Outreach Team will need to submit a written statement explaining the nature of the extended stay request along with verifiable documentation.

An additional three days can be granted by the Deputy Director of Housing and Homelessness; extensions beyond three days will require authorization from the Director of Community Development and Housing.
2021-2025 Strategic Targets and Goals
Establishing a Motel Voucher Program to increase shelter bed capacity and provide unhoused City residents with a safe, non-congregate interim shelter option by contracting with local motel operators aligns with the City’s Homelessness State of Emergency Declaration and with Strategic Targets and Goal No. 3: Improved Quality of Life, which will help to reduce the loss of life for unhoused residents, increase access to mental health and substance abuse treatment, eliminate street encampments, promote long-term housing stability, and enhance safety and hygiene for neighborhood residents, businesses, and tourists.

Fiscal Impact
There is no General Fund impact associated with this item. Sufficient funding through grants such as Permanent Local Housing Allocation (PLHA) and the American Rescue Plan Act (ARPA) and the Community Development Block Grant CARES Act (CDBG- CV) has been previously appropriated to support this item.

Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California:

1. Approve the Professional Service Agreement with SB Express One LLC (Super 8 Motel) for the provision of motel rooms ranging from 28 rooms (minimum) to 75 rooms (maximum) for a total amount not to exceed $1,008,000 and for a term beginning January 17, 2024, through January 17, 2025.

2. Authorize the City Manager or designee to take any further actions and execute any further agreements or documents as necessary to effectuate the implementation of the Motel Voucher Program.

Attachments
Attachment 1 PSA for Motel Services- SB Express One LLC Ward:

All Wards
Synopsis of Previous Council Actions:
•August 4, 2021 Mayor and City Council received a report and discussed the allocation of ARPA Funds.
•December 7, 2022 Mayor and City Council approved a Homelessness Solutions Action Plan, and $24.5 million in ARPA funds to help mitigate homelessness. 1 8
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•February 1, 2023 Mayor and City Council declared a Homelessness State of Emergency.
•May 17, 2023 Mayor and City Council approved a Homelessness State of Emergency Implementation Plan.
•July 19, 2023 Mayor and City Council approved an Amendment to Permanent Local Housing Allocation Funds to assist individuals experiencing homelessness. •August 13, 2023 Mayor and City Council approved a Substantial Amendment to FY2020-2021 Annual Action Plan associated with Community Development Block Grant Coronavirus Relief funds to support interim shelter activities.

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