CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 19 Section Name: {{section.name}} Account Number: 10-3133 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 19, 2025
SUBJECT:
Worker Resource Center Update and Agreement Renewal Terms – Presentation RECOMMENDATION:
Receive a presentation from Samaritan House on the Worker Resource Center and provide direction on renewal of an agreement with Samaritan House to continue operations of the Worker Resource Center.
BACKGROUND:
In the late 1990s, to address complaints related to day workers congregating in the downtown area of San Mateo and soliciting work, the City Council directed staff to study and find a solution to this issue. After months of interviews with day laborers, local merchants, and residents, and after years of study with community members and law enforcement responding to these calls, staff recommended that a center be created for day laborers to seek work in a safer location.
In 2003, the City Council approved an agreement with Samaritan House to create and operate a Worker Resource Center (WRC) at a City-owned lot on 5th Avenue, where the WRC matched job seekers with job providers. The City later ground- leased the lot to MidPen Housing for construction of the Kiku Crossing affordable housing development. Beginning in 2020, the City leased space at 171 North Amphlett Blvd. for the WRC. This is the 22nd year of continuous operation of the WRC by Samaritan House.
The City has, since 2003, renewed two-year agreements with Samaritan House to operate the WRC. The current operations agreement (Operations Agreement), funded at $195,000 per fiscal year, ends on June 30, 2025. Samaritan House seeks, and City staff recommends an Operations Agreement renewal.
Given the long history of collaboration with Samaritan House and the consistency of services they provide for the WRC, staff propose entering into a new Operations Agreement for a period of three years, from July 1, 2025, through June 30, 2028, to be funded at the current level of $195,000 per fiscal year. This would total $585,000 for the full three-year term.
While the Operations Agreement would not require a renegotiation every two years, staff propose that Samaritan House and staff provide an annual written update to the City Council on the status of the WRC to keep the City Council informed and address any programmatic changes that may be needed. Staff will also return to the City Council upon the expiration of the three-year term with an update and presentation. Additionally, as costs increase over time, it may be necessary to amend the not-to-exceed amount during the Operations Agreement term. In this case, staff would return to City Council for approval of an amendment.
Services Provided Under the Agreement
The WRC provides a place for workers and businesses and homeowners seeking casual labor to meet on Monday through Friday from 7 AM to 3 PM, and Saturdays from 7 AM to noon. Workers that arrive at the WRC register with staff, listing
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their names, cellphone numbers and work skills, such as manual labor, gardening, painting, carpentry, etc. Business owners or homeowners seeking casual labor that come to the WRC register with staff, list the skillsets they seek, and staff matches their work requests with workers.
At the WRC, Samaritan House also provides job application assistance, English as a Second Language (ESL) instruction, meals, and referrals to other Samaritan House programs for health, dental, and clothing needs. In addition to WRC-specific operations, Samaritan House leverages its resources as a Core Service Agency for San Mateo County, which provides emergency safety-net assistance to County residents. Samaritan House receives a subgrant of federal Community Development Block Grant (CDBG) funds from the City ($14,100 in FY 24-25) to support these programs.
In January 2025, the Center averaged 33 workers daily and seven daily job matches. The WRC also reported that 17 clients were referred to other services, and 14 clients received ESL instruction in the month of January. As compared to January 2024, the Center averaged 26 workers daily and 11 daily job matches, with 19 referred to other services and 0 enrolled in ESL.
Worker Resource Center Location – 171 N. Amphlett Blvd
The City is currently in a $74,406 per-year lease agreement ($5,628 per month, plus common area maintenance (CAM) expenses of $577 per month, for a total of $6,205 per month) with Sakai Family Properties for the facility located at 171 North Amphlett Blvd. Rent and CAM expenses increased approximately 3 percent per calendar year, and under the lease, the City is responsible for electrical, plumbing and interior repairs.
The facility is aging, and the WRC has had several ad hoc repairs, such as emergency plumbing and rodent removal, that have cost the City approximately $400 to address each time (costing approximately $1,000 per year). In addition, the City pays for Recology waste removal, debris box, and locks for $1,185 per month. This results in a total annual cost to the City for this space of approximately $88,680.
The current lease at 171 N. Amphlett expires on August 31, 2025, and staff is exploring options for a new lease for Samaritan House to continue its operations. A new lease agreement will be provided to City Council for consideration at a future meeting.
Samaritan House Presentation
At this City Council Study Session, Samaritan House will provide an overview of the core services that are provided to the community and the work of the WRC. Reyna Sandoval, Food and Community Programs Director, will be the main presenter on behalf of Samaritan House.
BUDGET IMPACT:
Staff recommend a three-year Operations Agreement for the continued operation of the WRC in the amount of $195,000 per fiscal year, for a total of $585,000 over three years. If the City Council does not wish to extend the term to three years and instead directs staff to enter into a two-year Operations Agreement with Samaritan House, the total cost for the City would be $390,000.
The proposed 2025-26 Samaritan House budget for the WRC is $379,516 and maintains the same overall distribution of costs as the budget included in the current contract. The City’s contribution of $195,000 would cover 70 percent of the total program costs, while the Samaritan House General Fund would support 28 percent, with the remaining 2 percent of funding provided by outside contributions.
The WRC operations budget is broken down into personnel expenses and operating expenses that include meals, technology, housekeeping, and various supplies. The Center has two full time client-facing staff, for a total operations staff of 2.4 FTE. In addition, 0.2 FTE is budgeted for on-call personnel. The majority of operating expenses are allocated to program supplies and meals (48 percent) and housekeeping (38 percent).
The program has previously been funded entirely under the City’s General Fund. However, to reduce reliance on the
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General Fund, staff is researching other Housing funding sources that may offset some WRC costs related to maintaining housing stability of WRC client, thereby reducing the amount of General Funds by approximately $30,000 annually. Staff will return to City Council with a detailed overview of funding sources when staff seeks City Council approval of the WRC Operations Agreement in June.
As noted above, if the City renews the current lease for the 171 N. Amphlett space, the cost is approximately $88,680 per year, for a total of $177,360 for a two-year lease, drawn from the City’s General Fund. This agreement is negotiated separately from the operations contract with Samaritan House and is subject to change. The lease agreement will be brought to City Council for approval in a separate item. Staff is currently working with Samaritan House to explore all options, including moving to a new location or renegotiating the lease agreement at 171 N. Amphlett.
ENVIRONMENTAL DETERMINATION:
This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5)) NOTICE PROVIDED:
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Worker Resource Center Operations Agreement Term Sheet
STAFF CONTACT
Rachel Horst, Housing Manager
[email protected]