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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 6, 2023
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Mary Lanier, Interim Agency Director of Community
Development and Housing Department.
Department: Community Development and Housing Department (CD) Subject: Approve Professional Agreement for Motel Voucher Program (All Wards)
Recommendation:
It is Recommended that the Mayor and City Council of San Bernardino, California
1. Approve the Professional Service Agreement with Anand Patel (Pa-An, Inc., Namaste Sitiye Inc., and SB Hotel North LLC) for the provision of motel rooms ranging from 55 rooms (minimum) to 121 rooms (maximum) for a total amount not to exceed $2,751,840 and for a term beginning March 11, 2024, through March 10, 2025; and
2. Reallocate unspent Permanent Local Housing Allocation (PLHA) funds to the Motel Voucher Program in the amount of $327,591; and
3. 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 City re-released a Request for Proposal (RFP) in search of additional, local motel operators willing to participate in the City’s Motel Voucher Program. The City selected a motel vendor who owns three (3) local motels, which can provide up to 107 rooms.
Upon Council’s approval, the Motel Voucher Program will have access to 121 motel rooms and 201 beds, allowing the City the ability to exceed its shelter bed threshold capacity. There is no General Fund fiscal impact associated with this item.
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 1 9
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and operation of a low-barrier, non-congregate navigation center to help its unhoused 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.
On December 6, 2023, Council directed staff to locate additional local motel operators as motels outside of city limits was not favored.
Discussion
On December 6th, Council approved a Motel Voucher Program designed to temporarily house homeless individuals and families, while providing supportive services. The Motel Voucher Program will be used to support the City’s clean-up efforts and will be managed by the City’s Homeless Outreach Team. Initially, 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. Four (4) motel owners submitted proposals to participate in the program, but two (2) of the motel establishments were located outside city limits. Council directed staff to expand its search for local motel operators as the use of motels in other cities was not favored.
On December 6th, the City released an expedited Request for Proposal (RFP) in search of additional, local motel operators. The RFP closed December 22,2023 with three (3) submissions. The City selected Anand Patel which owns and operates three (3) motels within city limits and is willing to provide 100 rooms for the City’s Motel Voucher Program. Should Council approve the Professional Service Agreement (PSA) with Anand Patel, the City’s Motel Voucher Program will have access to 131 motel rooms and 201 beds. Although the City only needs 200 beds to meet its 1 9
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current threshold capacity, the 2024 Point in Time Count (PITC) is approaching and it is highly probable that the number of unsheltered individuals will increase, thereby increasing the City’s shelter-bed threshold requirement.
Anand Patel will provide the City access to the following motel establishments:
Motel & Address
Single
Occupancy
Rooms
Double
Occupancy
Rooms
# of
Rooms
Total
# of
Beds
Studio 6 Suites
607 West 5th Street
San Bernardino, CA 92410
17 10 27 37
Rodeway Inn
2042 W. Valey Blvd.
Colton, CA 92324
20 20 40 60
Motel 6 North
1960 Ostrems Way
San Bernardino, CA 92407
0 40 40 80
Total: 37 70 107 177
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 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 3 days can be granted by the Deputy Director of Housing and Homelessness, extensions beyond 3 days will require authorization from the Director of Community, Housing, and Economic Development.
Program Cost
The PSA cost with Anand Patel is not to exceed $2,751,840. Initially, the City had $3,044,280 to cover the Motel Voucher Program, but after two, non-local vendors providing a total of 60 rooms were replaced with one local vendor able to provide 107 rooms there was an increase in cost. The new total for 12 months of motel service is $3,356,640, which is a cost difference of $312,360. To help fill the financial gap, staff are seeking Council’s permission to reallocate $327,591 in unspent 2019 PLHA funds, which are at risk of being clawed-back by the State as of March 1, 2024. 1 9
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•$19,406 unspent from Lutheran Social Services and Mary’s Mercy Center for homeless related activities.
•$308,185 unspent from unallocated to affordable housing activities The unspent 2019 PLHA funds are at risk of claw-back by the State effective March 1, 2024, if not reprogrammed. As a result, the financial gap for the Motel Voucher Program will be filled with reallocated PLHA dollars.
2021-2025 Strategic Targets and Goals
Expanding shelter bed capacity via a City sponsored Motel Voucher Program 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 increase access to mental health and substance abuse treatment, eliminate street encampments, promote housing stability, and enhance safety and hygiene for neighborhood residents, businesses, and tourists.
Fiscal Impact
There is no fiscal impact to the General Fund. Staff can utilize unspent Permanent Local Housing Allocation (PLHA) funds to fill financial gaps.
Conclusion
It is Recommended that the Mayor and City Council of San Bernardino, California
4. Approve the Professional Service Agreement with Anand Patel (Pa-An, Inc., Namaste Sitiye Inc., and SB Hotel North LLC) for the provision of motel rooms ranging from 55 rooms (minimum) to 121 rooms (maximum) for a total amount not to exceed $2,751,840 and for a term beginning March 11, 2024, through March 10, 2025; and
5. Reallocate unspent Permanent Local Housing Allocation (PLHA) funds to the Motel Voucher Program in the amount of $327,591; and
6. 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 SB Motel North LLC (Motel 6 North)
Attachment 2 PSA Namaste Sitiye Inc. (Rodeway Inn)
Attachment 3 PSA Pa-An Inc. (Studio 6 Suites)
Ward:
All Wards
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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.
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.
December 6, 2023 Mayor and City Council approved a Motel Voucher Program and authorized Professional Service Agreements with motel operators to provide interim shelter.