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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: April 2, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Darren Goodman, Chief of Police
Department: Police
Subject: Amendment No. 2 to the Professional Services
Agreements with Anand Patel for the City of San
Bernardino Motel Voucher Program, increasing the
combined total not to exceed amount from $2,751,840 to
$2,881,840 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the Interim City Manager to execute Amendment No. 2 (“Amendment No. 2”) to the Motel Voucher Program professional service agreements (“PSA”) with Anand Patel (Pa-An, Inc., Namaste Sitiye Inc., and SB Hotel North LLC) to void Amendment No.1, obligate additional funding outlets and revise the rate schedule; and
2. Authorize the Interim Director of Finance and Management Services (“Interim Finance Director”) to increase the current purchase orders by the appropriate amounts.
Executive Summary
The City currently operates a Motel Voucher Program (“Program”), which provides temporary shelter/interim housing to unhoused residents. The San Bernardino Police Department (“Department”) was awarded Community Development Block Grant (“CDBG”) funds through the Department of Housing and Urban Development (“HUD”) to provide emergency shelter through motel vouchers, helping prevent homelessness and creating a bridge to long-term housing stability. Amendment #2 will void Amendment No.1 and correct the budget obligations for the agreements, update their 2 6
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rate schedules, and add the usage of CBDG funds to the Rodeway Inn and Studio 6 agreements. This will allow the City to continue expending the available CDBG funds and provide essential services to those in need.
Background
The Program is a critical component of the Department's efforts to assist individuals experiencing homelessness, as providing immediate shelter is a fundamental step in facilitating long-term housing stability. The Program emerged from the City’s comprehensive strategy to address the growing homelessness crisis through on- congregate shelter options, while working towards permanent solutions.
The Program offers flexible stay durations, from 1 to 28 days based on individual needs assessed by the City’s outreach team. Extensions beyond 28 days may be granted for participants awaiting permanent housing placement.
The City receives an allocation of HUD CDBG funds every year. The Department has successfully assisted over 100 individuals through the Program, contributing significantly to their long-term housing stability. This Amendment #2 allows the Department to continue utilizing the CDBG funds, ensuring compliance with grant expenditure timeliness and City policy (while also maintaining necessary resources to support individuals facing homelessness).
Amendment No. 1 approved by City Council intended to increase the housing capacity to 130 motel rooms and 200 beds to ensure adequate shelter options, and extended the term to December 31, 2026. However, due to an administrative error, the executed Amendment No.1 contained incorrect budget amounts that were not aligned with the version originally presented to and approved by City Council. To rectify this discrepancy, Amendment #2 will supersede and replace Amendment No.1 and incorporate updated budget amounts and additional provisions.
Discussion
The Department has used approximately $41,915 in CDBG funds to provide motel vouchers through a Program-approved purchase card, and currently has approximately $130,000 in available CDBG funds for expenditure. This Amendment #2 addresses the need for additional funding so the Department can seamlessly continue to provide temporary shelter through motel vouchers and benefits.
The City previously allocated $2,751,840 for the Program, sourced from the following funding streams:
Permanent Local Housing Allocation
(PLHA)
$1,237,939
Community Development Block
Grant Coronavirus Relief (CDBG-CV)
$540,401
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American Rescue Plan Act (ARPA) $973,500
The Department requests approval to amend the PSAs with Studio 6, Rodeway Inn, and Motel 6. The three amendments will reflect the funding obligations below:
Motel ARPA CDBG-CV PLHA CDBG Total
Motel 6 $973,500.00 $101,700.00 $0.00 $0.00 $1,075,200.00 Rodeway
Inn
$0.00 $0.00 $1,008,000.00 $65,000.00 $1,073,000.00
Studio 6 $0.00 $438,701.00 $229,939.00 $65,000.00 $733,640.00 Grand
Total
$973,500.00 $540,401.00 $1,237,939.00 $130,000.00 $2,881,840.00 The changes include additional funding outlets obligated to Studio 6 and Rodeway Inn, and further clarification of the rate schedule and expectations for all three motel locations.
2021-2025 Strategic Targets and Goals
This requested amendment aligns with Strategic Target No. 3: Improved Quality of Life by reducing the burden of homelessness through enjoyment, collaboration, and partnership with other entities.
Fiscal Impact
There is no fiscal impact on the General Fund since the activities described are funded with ARPA, PLHA, CDBG-CV, and CDBG funds.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the Interim City Manager to execute Amendment No. 2 (“Amendment #2”) to the Motel Voucher Program professional service agreements (“PSA”) with Anand Patel (Pa-An, Inc., Namaste Sitiye Inc., and SB Hotel North LLC) to void Amendment No.1, obligate additional funding outlets and revise the rate schedule; and
2. Authorize the Interim Finance Director to increase the current purchase orders by the appropriate amounts.
Attachments
Attachment 1 2 nd Amendment to PSA with PA-AN Studio 6
Attachment 2 2 nd Amendment to PSA with Namaste Sitiye Rodeway Inn Attachment 3 2 nd Amendment to PSA SB North LLC Motel 6 Attachment 4 1 st Amendment to PSA with PA-AN Studio 6
Attachment 5 1st Amendment to PSA with Namaste Sitiye Rodeway Inn 2 6
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Attachment 6 1st Amendment to PSA SB North LLC Motel 6
Attachment 7 PSA with PA-AN Studio 6
Attachment 8 PSA with Namaste Sitiye Rodeway Inn
Attachment 9 PSA with SB North LLC Motel 6
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.
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
March 6, 2024 Mayor and City Council approved the Emergency Shelter Program with Anand Patel in the amount of $2,751,840 while reallocating unspent PLHA funds in the amount of $327,591.
November 20, 2024 Mayor and City Council approved Amendment No. 1 to the Motel Voucher Program Professional Services Agreements
with Anand Patel (All Wards)