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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: September 2, 2026
To: Honorable Mayor and City Council Members
From: Cassandra Searcy, Deputy Director of Housing and Homeless Services
Department: Community Development & Housing
Subject: Amendment No. 1 to the Professional Services Agreement with The Salvation Army for Homeless Street Outreach,
Increasing the Agreement by $18,107.27 to a Total Not-to- Exceed Amount of $698,107.27
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with The Salvation Army for homeless street outreach services, increasing the agreement by $18,107.27, from $680,000 to a total not-to-exceed amount of $698,107.27, using previously obligated but unspent American Rescue Plan Act State and Local Fiscal Recovery Funds identified through closeout of the prior homeless outreach agreement.
2. Authorize the City Manager, or designee, to execute Amendment No. 1 and any other agreements, documents, or instruments, and to take all actions necessary or appropriate to carry out and implement Amendment No. 1.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
On December 18, 2024, the Mayor and City Council of the City of San Bernardino approved a new agreement with the Salvation Army to provide homeless street outreach services using American Rescue Plan Act (ARPA) funding. The Street Outreach Agreement provides for the delivery of outreach and engagement services to individuals experiencing homelessness within the City. The contractor actively 3 5
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provides services including outreach, engagement, connection to supportive services, and coordination with community partners to assist individuals in accessing appropriate supportive resources. The agreement included an initial ARPA allocation of $680,000.00. Following the closeout of the previous contractor's agreement, an additional $18,107.27 in unspent ARPA funds was identified.
Amendment No. 1 would increase The Salvation Army agreement by $18,107.27, from $680,000 to $698,107.27. As of August 20, 2026, $491,900.38 has been expended on the remaining ARPA balance, leaving $206,206.89 to be expended by December 31, 2026. Staff has reviewed the remaining expenditure schedule and anticipated full expenditure by the federal deadline.
Background
On December 7, 2022, the Mayor and City Council unanimously agreed to allocate $24.5 million in American Rescue Plan Act (ARPA) funds towards homeless initiatives of which, $1.5 Million was directed towards homeless outreach. In February 2023, Staff released a Request for Proposal (RFP) in search of a qualified homeless outreach lead operator. In order to expand the reach of qualified candidates, the City used Planet Bids, which is a web-based vendor portal that ensures a streamlined procurement and electronic bidding process. Planet Bids also provides a secure and transparent format to ensure that local agencies and non-profits were made aware of the City’s RFP release, notifications were sent out to the County’s Interagency Council on Homelessness (ICH) and the Central Valley Homeless Provider Network, which issued a County-wide mass email alert. There was a total of five (5) agencies/candidates who responded to the Homeless Outreach RFP and submissions were evaluated in mid- March 2023.
All candidates were required to demonstrate their ability to secure and maintain qualified staffing levels, highlight their experience working with unhoused individuals, particularly those who have underlying physical and/or mental health conditions, demonstrate their knowledge of trauma-informed care and “Housing First” practices and be able to quickly connect to the County’s Homeless Management Information System (HMIS).
Two (2) agencies advanced to the final selection process (one local and one non-local) and on April 11, 2023, a tentative award letter was issued to the successful applicant, Hope the Mission, formally known as Hope of the Valley.
Hope the Mission was awarded the initial contract to provide these services, focusing on engaging at-risk populations, including participants in the City’s motel voucher program and individuals identified as homeless under HUD guidelines.
Hope the Mission was allocated $1,500,021.48, when the agreement was entered on June 1, 2023 with an initial termination date of May 31, 2024. On June 23, 2024 Amendment No. 1 adjusted the total compensation to not exceed $1,500,000.00. On March 22, 2024 Amendment No. 2 extended the Professional Services Agreement 3 5
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term by one year to May 31, 2025.
While Hope the Mission was tasked with leading the street outreach efforts, their performance did not meet contractual standards. On December 18, 2024, the Mayor and City Council of the City of San Bernardino accepted the termination of its Professional Services Agreement with Hope the Mission.
During the agreement term, Hope the Mission had expended a total of $801,892.73 leaving a remaining amount of $698,107.27 of the ARPA balance for homeless street outreach services.
On December 18, 2024, the Mayor and City Council of the City of San Bernardino approved the Professional Services Agreement with The Salvation Army for homeless street outreach services with an ARPA allocation of $680,000.
Amendment No. 1 to this PSA will allocate the additional unspent ARPA funding of $18,107.27.
Since the implementation of the PSA for Street Outreach Services with The Salvation Army, 812 clients have accepted services with the Salvation Army which can include, hygiene supplies, food resources, shelter placements or placements into substance use treatment facilities, and ongoing case management.
Discussion
The proposed Amendment No. 1 to the American Rescue Plan Act (ARPA) Professional Services Agreement with The Salvation Army (TSA) will increase the agreement amount by $18,107.27 using previously unspent ARPA funds identified during the closeout of the prior contractor agreement. This amendment will ensure that all available ARPA funds are fully obligated and expended before the ARPA expenditure deadline of December 31, 2026.
Under the amended agreement, The Salvation Army will continue providing homeless street outreach services and utilizing the Homeless Management Information System (HMIS) for client data collection, case tracking, reporting, and performance monitoring.
Based on the current expenditure rate, the City anticipates that all ARPA funds allocated under the agreement will be fully expended by the December 31, 2026 deadline.
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City staff has been working closely with The Salvation Army to provide technical assistance regarding allowable expenditures and proper billing procedures. This ongoing coordination has supported The Salvation Army in identifying and submitting eligible expenditures and has provided city staff with greater visibility into the project's anticipated spending needs.
City staff's confidence in the project's ability to fully expend the remaining funds is supported by the Salvation Army’s continued delivery of Homeless Street Outreach services, the $491,900.38 already expended, and invoices for services provided through December 2026 are anticipated to be submitted and processed. Staff will continue to closely monitor the contractor's expenditure, pending invoices, and remaining balance to ensure the project remains on pace.
During the amended agreement term, The Salvation Army will continue providing the following ARPA-funded services:
•Street-based outreach and engagement
•Connections to resources and referral placements
•Intensive case management
•HMIS data entry, reporting, and performance monitoring to support program compliance and system-level outcomes
Strategic Goals and Priorities
The request to approve the amendments to the subrecipient agreements 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 General Fund impact. All activities are fully funded through the City’s American Rescue Plan Act (ARPA) grant funds.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with The Salvation Army for homeless street outreach services, increasing the agreement by $18,107.27, from $680,000 to a total not-to-exceed amount of $698,107.27, using previously obligated but unspent American Rescue Plan Act State and
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Local Fiscal Recovery Funds identified through closeout of the prior homeless outreach agreement.
2. Authorize the City Manager, or designee, to execute Amendment No. 1 and any other agreements, documents, or instruments, and to take all actions necessary or appropriate to carry out and implement Amendment No. 1.
Attachments
Attachment 1 Salvation Army PSA (Homeless Outreach)
Attachment 2 Amendment #1 - TSA ARPA Street Outreach
Ward:
All Wards
Synopsis of Previous Council Actions:
August 4, 2022 Mayor and City Council received a report and discussed the allocation of ARPA funds.
December 7, 2022 Mayor and City Council approved the use of ARPA funds in the amount of $1.5million to create a city-wide Homeless Outreach Team.
February 1, 2023 Mayor and City Council approved a Homelessness State of Emergency Declaration.
May 17, 2023 Mayor and City Council approved the Professional Services Agreement with Hope the Mission for Outreach Services.
June 26, 2023 Mayor and City Council approved Amendment #1 to the Professional Services Agreement with Hope the Mission.
May 1, 2024 Mayor and City Council approved Amendment #2 to the Professional Services Agreement with Hope the Mission to extend the agreement term by one year until May 31, 2025.
December 18, 2024 Mayor and City Council accepted the termination of the Professional Services Agreement with Hope the Mission and accepted the Professional Services Agreement with the
second-ranked proposer for the City’s original homeless outreach procurement process, The Salvation Army.
CC
Eric Levitt, City Manager