Community Development Agency
https://www.santa-ana.org/cd
Item # 31
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 19, 2023
TOPIC: Approve a Street Outreach and Engagement Agreement with City Net
AGENDA TITLE
Approve an Agreement with City Net to Provide Street Outreach and Engagement Services addressing Quality-of-Life concerns, in an Amount not to Exceed, $3,841,845.51 beginning January 1, 2024 through December 31, 2024 (Non-General Fund) (Continued from the City Council Meeting of December 5, 2023, Item No. 08)
RECOMMENDED ACTION
1. Authorize the City Manager to execute an agreement with Kingdom Causes, Inc., DBA City Net in an amount not to exceed $3,841,845.51 for the Santa Ana Multidisciplinary Street Outreach and Engagement (SMART) Program that responds and addresses quality-of-life services from January 1, 2024 through December 31, 2024, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2023-XXX).
OR
2. Authorize the City Manager to execute an agreement with Kingdom Causes, Inc., DBA City Net in an amount not to exceed $3,571,134.90 for the Santa Ana Multidisciplinary Street Outreach and Engagement (SMART) Program that responds and addresses quality-of-life services from January 1, 2024 through December 31, 2024, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2023-XXX)
3. Authorize the City Manager to execute agreements required by state or federal agencies for the use of Homeless Housing, Assistance and Prevention (HHAP) funding, or for any additional funding that may become available.
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City of Santa Ana currently contracts with City Net to provide a trauma informed, non- law enforcement, homeless outreach and engagement resource, referred to as SMART (Santa Ana’s Multi-Disciplinary Homeless Response Team). City Net staff are subject matter experts in the field of homelessness, trained in crisis intervention, mental health, addiction, medical services, and are able to provide services in the field to assist
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individuals currently experiencing homelessness. City Net responds to reports of non- criminal homelessness related activity, identified through the MySantaAna app, the community call line, and Santa Ana Police Department Dispatch. Dispatched calls for service for non-criminal homeless issues previously handled by law enforcement, now transition to the SMART team, which provides law enforcement additional time to respond to calls for service of a criminal nature.
The last contract approved by the City Council was on December 6, 2022 in the amount of $2,801,700.10. Specific manpower allocations and program operation times were identified. At that time, Council directed staff to identify specific performance metrics that would enhance the City’s overall mission to reduce homeless activity and to withhold a percentage of the total contract value if metrics were not met. To meet this directive, a quarterly evaluation of performance by City staff was incorporated into the 2022 SMART contract. This concept shall remain in the newly proposed agreement. A progress report on contract performance metrics was shared with City Council on October 17, 2023.
Included in the report was staff’s determination that contract performance goals and performance deliverables were responsive and SMART had provided a benefit to the City.
At the December 5, 2023 Council meeting, staff was directed to return with a plan that considered alternatives to the proposed contract. To address that directive, the original proposed 2024 budget and scope was modified and an additional concept for consideration has been included. Currently there are two available options:
Option 1: Retains similar line items; however, it now removes Executive Leadership costs, reduces costs associated with technology, and in turn re-purposes those funds to add one (1) additional field team increasing current levels from ten (10) field teams to eleven (11) while retaining the original cost. It is the intent of the City to utilize this additional field team to directly address known hot-spots and provide multi-day interventions at these hot-spots increasing the number of touchpoints between the City and some individuals who remain service resistant.
Option 2: Entails decreased line item costs by removing Executive Leadership fees, reduces costs associated with technology, and field teams remain at current levels, which is ten (10) field teams. Total contract cost would decrease by $270,710.61 from Option 1 and from what was presented to City Council on December 5, 2023.
The SMART Program remains instrumental to the City’s overall homeless philosophy and acts as the key first step to introducing the unhoused to the social services system.
City Net’s deliverables for the upcoming 2024 contract are listed below and again, must be achieved in order for 10% of the contract to be released to the vendor:
Deliverables Annual
Goal
Outreach Contacts 4,000
Substance Abuse Assessment 120
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Phone Calls Dispatched 8,000
Case Management 1,020
Jail Release Program Positive Exits 25
Street Exits 850
The proposed 2024 Contract’s Scope of Work and Budget extends SMART’s operating hours from current operating hours of 7 a.m. to 9 p.m., Monday through Friday, and 9 a.m. to 9 p.m. on weekends, to 7 a.m. to 11 p.m., seven days a week. This adds an additional eighteen (18) hours of program operation weekly, no matter the direction. If the extended hours become unnecessary as determined by Council or City staff, the hours will be eliminated and overall contract costs will be reduced. The Scope of Work also incorporates a new Jail Release Program to provide outreach to clients exiting from the Santa Ana Jail who are in need of services.
The Budget reflects a competitive package accounting for inflation, health insurance coverage, and an increase in staff salaries to align with the salaries and contracts offered by other cities. Collectively, these increases have created a larger than normal year-over- year increase. The 2023 Market Wage Analysis determined that many of City Net’s salaries were low, based on industry standards, which over the past year resulted in staffing issues as City Net employees sought higher paying positions elsewhere. Base salaries for 2024 have been adjusted, so staff are compensated competitively according to current market rates. Providing industry standard compensation will help attract and retain top talent and foster a motivated and dedicated workforce.
FISCAL IMPACT
The current fiscal year funding is available in the FY 2023-24 budget and future fiscal year funding will be included in the proposed budgets for City Council consideration.
Funds per fiscal year may vary based upon actual invoicing of hours and services worked.
Option 1
Fiscal
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account Description Amount
FY 23-24 12218717-69135 Emergency and
Health Grants
HHAP 3 –
Payment to Subagent $1,885,922.70
FY 24-25 12218718-69135 Emergency and
Health Grants
HHAP 4 –
Payment to Subagent $1,347,037.51
FY 24-25 12218717-69135 Emergency and
Health Grants
HHAP 3 –
Payment to Subagent $608,885.30
Total $3,841,845.51
Approve a Street Outreach and Engagement Agreement with City Net December 19, 2023
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Option 2
Fiscal
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account Description Amount
FY 23-24 12218717-69135 Emergency and
Health Grants
HHAP 3 –
Payment to Subagent $1,885,922.70
FY 24-25 12218718-69135 Emergency and
Health Grants
HHAP 4 –
Payment to Subagent $1,076,326.90
FY 24-25 12218717-69135 Emergency and
Health Grants
HHAP 3 –
Payment to Subagent $608,885.30
Total $3,571,134.90
EXHIBIT(S)
1. Agreement with City Net – Option 1
2. Agreement with City Net – Option 2
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Tom Hatch, Interim City Manager