Award Professional Service Agreement Between
the City of San Bernardino and Helping Hearts
California, LLC/Helping Hearts Hulen, LLC for
the Operation of the SB HOPE Campus
Presented by:
Cassandra Searcy
Deputy Director of Housing & Homelessness
Phase I – Surplus Land Declarations
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
City Navigation Center
SB HOPE Campus
️ 200-Bed, Low-Barrier Campus
Interim Housing for Unhoused
Men & Women
Onsite Supportive Services &
Recuperative Care
Pathway to exit homelessness
The SB HOPE Campus will provide a safe and welcoming environment, offering immediate shelter as a first step toward stability, while empowering individuals with the tools needed for long-term success.
The Lead
Operator
Will Provide
Essential
Services
Case Management
Housing Navigation
Recuperative Care
Onsite Supportive Services
Meals
Security
Pets Welcomed
Service Prioritization for City Residents
Phase I – Surplus Land Declarations
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
Proposed Lead Operator
Helping Hearts California,
LLC (HHCA)
Experience & Expertise
• Experienced low-barrier shelter &
recuperative care operator.
Established in 2015
• Specialized in serving vulnerable
populations.
Who They Serve
• Serving individuals who are
homeless, those with mental health
conditions & substance abuse
disorders.
• Experienced in CalAim invoicing
This Photo by
Unknown Author is
licensed under CC BY-
NC
Phase I – Surplus Land Declarations
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
CalAim Invoicing
Experience
Financial Impact of CalAim on Campus Operations
• Total Estimated Annual Operating Cost (without CalAim) • Phase I-$7.1M and Phase II $10.6M
• City Contribution with CalAim Revenue: Only $300,000 annually • Over 95% of operational funding will rely on CalAim
reimbursements.
Why Experience with CalAim Invoicing Matters
Complexity: CalAim requires detailed documentation, timely billing, and strict compliance.
CalAIM revenue is the money earned by delivering eligible services under Medi-Cal reform efforts, often with a focus on whole-person care, housing stability, and health equity..
SB HOPE Campus-Development Phases
2025-2026
Phase 1 Operations Fully Supported
By CalAim Waiver
ü Phase 1 /Year 1 launch: 1st Quarter of FY 25/26
Ø SB HOPE Campus operations begin with full
services in place.
ü No Additional Cost Burden
ü Service Continuity Ensured
ü City’s Operational Contribution-$300,000
Phase 1 No Impact on Budget or Services
CalAim Coverage Period
This Photo by Unknown Author is licensed under CC BY
Operational Budget Summary
Phase 1
Phase 1 Funding Sources
• 2020 Permanent Local Housing Allocation
(PLHA)
SB HOPE Campus
Operations Phase II
Phase I – Surplus Land Declarations
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
Contingency Plan
Best Case Year 2
Assumption 1: No Cuts to Medi-Cal/CAL-
AIM Funding ✅
•Medi-Cal Eligibility:
• 100% Medi-Cal eligibility for all
programs
• 80% eligibility for Short-Term Post-
Hospitalization/Shelter Beds
•City’s Annual Contribution:
$300,000
(to operate a 100 or 200-bed campus)
•Program Scope:
Full projected services maintained
Comprehensive campus operations
Assumption 2: Cuts to Medi-Cal/CAL-AIM
Funding
•Impact on Services:
❌ Reduced HHCA capacity
Programs scaled back to traditional
shelter housing only
•City’s Annual Contribution:
$1,638,409.50
(to operate a 100-bed campus)
$3,276,819
(to operate a 200-bed campus)
Worst Case Year 2
Operational Funding Sources
Identified Funding Sources for Phase II
Funding Source Annual Amount Start Year Purpose
PLHA $1,440,000 FY 2026-2027 Support homeless-
related operations
and services
General Fund $2,000,000 FY 2026-2027 Supplement
homeless-related
initiatives
Agreement Term & Renewal
Initial Term
•Commencement: Upon the "Effective Date"
•Duration: 5 years
•Automatic extensions up to 5 successive 1-year terms
Conditions
• Agreement can be amended in writing
•Either party may give written notice of intent not to renew Notice Period: At least 90 days before the end of the current term Recommendation
It is recommended that the Mayor and City Council of The City of San Bernardino, California:
1. Authorize the City Manager to Execute a Professional Services Agreement with Helping Hearts California, LLC in the amount not to exceed $ 2,395,075.40 for Phase 1 shelter and recuperative care operations at SB HOPE Campus and an estimated $300,000 for Phase 2 operations and annually thereafter if required; and
2. Authorize the Director of Finance and Management Services to amend the FY2024/2025 Adopted budget for the appropriation of $ 2,395,075.40 in both revenues and expenditures
3. Authorize the City Manager or designee to take any further actions and execute any further agreements or documents as necessary to implement operations at SB HOPE Campus.
Phase I – Surplus Land Declarations
Discussion (Cont.)
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
Questions?