REPORT TO COUNCIL
SUBJECT
Title
Award a Contract in the Amount of $909,780 for Street Outreach and Essential Homeless Services (F24-20), Make a Finding of California Environmental Quality Act (CEQA) Exemption Pursuant to CEQA Guidelines Section 15378, and Approve Budget Modification No. 5 in the Amount of $909,789
Report
REPORT IN BRIEF
Approval of a contract award to WeHOPE to provide street outreach and essential homeless services for an initial one-year period in a not-to-exceed amount of $909,780 is recommended. The Contract will be managed by the Community Development Department (CDD). Approval is also requested to authorize the City Manager to increase the not-to-exceed amount and to renew the contract, for up to (4) four additional one-year periods, with both actions subject to available budgeted funding, acceptable pricing, and satisfactory performance. The scope of work includes the basic services outlined in the Request for Proposals (RFP) and one optional service for mobile hygiene services.
BACKGROUND
On January 25, 2022, Council appropriated $500,000 to start a one-year pilot program to support homeless services in Sunnyvale (RTC 22-0224).
On May 10, 2022, Council authorized the City Manager to execute an Agreement with HomeFirst Services of Santa Clara County (HomeFirst) for Case Management Services and Shelter Beds for Sunnyvale's unhoused population (RTC 22-0517). The original term for street-based outreach was June 1, 2022, through June 30, 2023, and a three-month extension was subsequently approved under the City Manager’s authority.
On September 26, 2023, Council approved a six-month extension of the agreement with HomeFirst Services through March 31, 2024 (RTC No. 23-0951).
On February 27, 2024, Council approved a Third Amendment to the contract with HomeFirst Services for an additional six months of case management services and shelter beds for the unhoused population in Sunnyvale that included activity and outcome measures and directed staff to prepare a request for proposals for future outreach services (RTC No. 24-0029).
A Request for Proposals was issued on May 13, 2024, with submittals due on June 17, 2024. One proposal was received. The proposal was evaluated by a team of City staff members from the Community Development Department, the Department of Public Safety, the Department of Public Works, and a County of Santa Clara staff member from the Office of Supportive Housing.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
GENERAL PLAN - HOUSING ELEMENT
GOAL HE-5 EQUAL HOUSING OPPORTUNITIES AND SPECIAL NEEDS - Promote equal housing opportunities for all residents, including Sunnyvale’s special needs populations, so that residents can reside in the housing of their choice.
Policy H-5.13 Housing and Services to Address Homelessness. Participate in the County Collaborative on Affordable Housing and Homeless Issues to support its efforts to prevent and end homelessness. Facilitate and sponsor the provision of permanent supportive housing for homeless people. Support local service providers that offer facilities and support services to homeless individuals and families, and persons at risk of homelessness.
H32. Programs to Address Homelessness. Continue to provide funding for programs that seek to prevent and end homelessness and provide supportive services to homeless and at-risk clients. Continue to implement programs such as WorkFirst Sunnyvale and Tenant-Based Rental Assistance. Using new funds such as Permanent Local Housing Allocation and HOME-ARP, create and fund new programs that support the City’s residents who are experiencing homeless or at risk of homelessness.
• Objective: Provide annual funding for homeless programs and at-risk households to serve at least 150 households per year. Implement new rental assistance program for seniors experiencing homelessness.
• Policy(ies) Implements: H-5.13
• Timeframe: Implement new funding sources in 2023, ongoing once implemented.
• Responsible Department or Agency: Community Development Department, Housing Division
Council Policy 5.1.3 Human Services
POLICY PURPOSE: The City of Sunnyvale recognizes that the supportive human services programs of the Federal, State and County governments do not fully meet the needs of all its population. The City, therefore, shall make its best efforts to provide supplemental human services, which include but are not limited to the emergency services, senior services, disabled services, family services and youth services.
Council Policy Priority: Support the Unhoused Community
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b) as it has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. CEQA review.
DISCUSSION
The City is committed to systematically addressing homelessness through the development of innovative programs and services to serve unhoused individuals residing in Sunnyvale and including the voices of those with lived experience of homelessness in the service development process.
The Sunnyvale City Council identified supporting the unhoused as a Council Priority for the past two fiscal years, while also establishing key studies in fiscal years 2023/24 and 2024/25 around homeless programs including Overnight Warming Locations, Safe Parking/Safe RV Parking, Sanctioned Encampments, Universal Basic Income, and Opportunities for Interim Family Housing.
The goal of the Street Outreach Program is to provide intensive field-based outreach and case management services to support individuals who may be living in encampments, vehicles, on the street, or other places not ideal for human habitation. The expectation is to effectively engage these individuals by providing the necessary services needed to increase quality of life, reduce risks to health and safety, and transition individuals from homelessness into temporary or permanent housing. The delivery of services is based on principles of Housing First, Trauma-Informed Care, and Cultural Competency, Racial Equity, and Inclusivity.
Recommended Provider
Following a Street Outreach RFP process, a contract with WeHOPE is recommended for a Street Outreach Program (which includes a five-room hotel program), and the addition of Dignity on Wheels mobile hygiene services. WeHOPE is a 501(c)3 nonprofit organization located in East Palo Alto. They operate three non-congregate shelters in San Francisco, East Palo Alto, and Half Moon Bay, and provide street outreach, case management, and mobile hygiene services throughout San Francisco, Santa Clara, San Mateo, Alameda, and Marin Counties.
WeHOPE proposes street outreach and case management to unhoused residents seven days a week throughout the City. These services would be conducted by four full time street outreach workers and case managers who will work to build relationships with unhoused residents, conduct Vulnerability Index Service Prioritization Decision Assistance Tool (VI-SPDAT) assessments and connect them to vital resources such as food, hygiene kits, benefits, shelter, and housing. The street outreach component will also include a 0.5 FTE Housing Navigator, supervision by the Lead Case Manager (0.10 FTE), and overall program oversight by the Program Director (0.10 FTE).
As part of the RFP response, the City requested that respondents provide a minimum of three shelter beds, three hotel rooms, or another pathway to shelter for unhoused individuals. WeHOPE proposed a temporary hotel program at the Extended Stay Hotel in Sunnyvale. WeHOPE will contract directly with the hotel for five rooms (two more than in the requested base proposal) that may be utilized for short-term stays by unhoused individuals who express interest in transitioning from living in encampments, vehicles, or on the street into permanent housing, a shelter program, or another transitional housing opportunity.
The proposed temporary hotel program will include some safeguards to ensure that the rooms are used for the intended purpose as a short-term transitional program. While utilizing the hotel voucher program, Program Participants will be permitted to stay in the temporary hotel program for up to thirty days as long as they continue to work towards entering a shelter program, safe parking program, transitional housing opportunity, permanent housing or other similar housing opportunity.
While in the temporary hotel program, Program Participants will meet with their case manager daily to ensure that they are on track with their housing and case plan. Program Participants must agree to program policies that include rules for vandalism, visitors, criminal acts, and other general “good neighbor” rules. Program stays will be short-term, less than thirty days, while the participant is waiting for shelter or other housing opportunity to come available. A copy of the program policies will be provided to the City prior to the program start date. Should there be a need to change the hotel, the contract also has a provision to provide hotel rooms in another Sunnyvale hotel subject to City Manager approval.
City staff believes that having interim housing located in Sunnyvale will encourage more unhoused individuals to engage in services and seek interim housing through the program. The annual cost of the five rooms at the hotel is $220,000 and is included in the Street Outreach Services base bid of $651,457.
Mobile Hygiene - Optional Service
As an additional optional homeless service, WeHOPE proposes to bring the Dignity on Wheels mobile hygiene trailer to Sunnyvale on a regular, reoccurring basis. Dignity on Wheels provides a mobile trailer with showers, laundry machines, restrooms, and on-site case management. The proposal includes the hygiene trailer at two locations, twice per week, for four-hour sessions. A case manager would also be on-site to connect residents to resources and services such as health, identification document needs, and shelter. Additionally, the Dignity on Wheels program is primarily staffed by former clients who are often able to build relationships with individuals accessing the mobile service. Dignity on Wheels will provide hygiene supplies such as clothing, towels, laundry pods, shampoo and body wash, toilet paper, paper towels, gloves, and disinfectant cleaners.
The City previously contracted with WeHOPE in 2020-2021 to provide Dignity on Wheels mobile hygiene service at Trinity Church, utilizing one-time Federal CDBG funds. The program was successful with 25 or more individuals utilizing the service regularly.
The cost to have Dignity on Wheels in up to two locations twice a week for four hours a session is estimated to be $258,323 annually. In a four-hour session, the shower service can accommodate up to 42 individuals. The laundry service can accommodate up to 16 single loads of laundry.
City staff is still identifying the locations where the hygiene trailers would be parked. WeHOPE has been in discussion with the leadership of Trinity Church to again host Dignity on Wheels. City staff will work with WeHOPE to identify an additional centralized site for a second, alternate location.
Staff recommends adding the additional hygiene trailer service to the WeHope agreement. Prior experience in Sunnyvale indicates that the service was well-utilized by residents. The services fulfill a critical need for our unhoused community, as they have limited access to restrooms, showers, or laundry facilities. Additionally, Dignity on Wheels case managers are often able to engage with individuals who typically do not engage in street outreach or other mainstream services. Case management staff through the street outreach program and mobile hygiene program will work together through weekly coordination to ensure that services are not duplicated.
Contract Start Date
If approved by Council, the street outreach services by WeHOPE would start on September 1, 2024, with the hygiene trailer expected to start on October 1, 2024. WeHOPE will have one month of overlap to work with the current street outreach service provider, HomeFirst, and City staff on transition planning, understanding existing encampment locations, and current client needs before the HomeFirst contract expires on September 30, 2024.
WeHOPE will provide extensive outreach to unhoused individuals regarding the return of Dignity on Wheels and work with the City to finalize locations before starting the service in Fall 2024.
Contract Activity and Outcome Measures
The same activity and outcome measures that were included in the last extension of the HomeFirst outreach contract are recommended for inclusion in this contract with WeHope (Attachment 1). New activity and outcome measures have been added for the hotel voucher and mobile hygiene programs.
FISCAL IMPACT
The total contract amount for one year including the base proposal and the additional mobile hygiene service is shown in the table below:
|
Service (Includes Indirect Cost) |
Cost |
|
Street Outreach (including 5 motel rooms) |
$651,457 |
|
Mobile Hygiene Services (2x per week) |
$258,323 |
|
TOTAL |
$909,780 |
Budget modification No. 5 has been prepared to appropriate $651,457 from the Budget Stabilization Fund for the Street Outreach portion of the contact and $258,323 from the Service Level Set-Aside for Mobile Hygiene Services to a New Project - Street Outreach and Essential Homeless Services.
Budget Modification No. 5
FY 2024/25
|
General Fund |
Current |
Increase/Decrease |
Revised |
|
Funding Source |
|
|
|
|
Budget Stabilization Fund |
$89,889,830 |
($651,457) |
$89,238,373 |
|
|
|
|
|
|
Funding Source |
|
|
|
|
Service Level Set-Aside |
$3,490,000 |
($258,323) |
$3,231,677 |
|
|
|
|
|
|
Funding Use |
|
|
|
|
New Project - Street Outreach and Essential Homeless Services |
$0 |
$909,780 |
$909,780 |
As this is an ongoing service, staff is recommending that the cost be included in the FY 2025/26 budget cycle. Extending the current cost through the 20-year plan, drawing from the Service Level Set-Aside to fund the new Mobile Hygiene Services portion, the FY 2035/36 balance (current projected low point) of the Budget Stabilization Fund would be projected to decrease from $22.3M to $11.6M.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Award the following contracts to WeHOPE and authorize the City Manager to take several actions:
a. Award a one-year contract for Street Outreach and Dignity on Wheels mobile hygiene services in substantially the same form as Attachment 1 to the report, to WeHOPE in a not-to-exceed amount of $909,780 for base bid;
b. Authorize the City Manager to execute the contract when all necessary conditions have been met;
c. Authorize the City Manager to increase the contract to the available budget;
d. Authorize the City Manager to renew the contract for up to four additional one-year periods based upon available funding, need, pricing, and service; and;
e. Authorize the City Manager to modify each contract’s compensation schedule subject to negotiated pricing;
f. Approve Budget Modification No. 5 in the amount of $909,780.
2. Alternative 1 with modifications.
3. Do not award a contract and provide direction on desired services.
RECOMMENDATION
Recommendation
Alternative 1: Award the following contracts to WeHOPE and Authorize the City Manager to take several actions:
a. Award a one-year contract for Street Outreach and Dignity on Wheels mobile hygiene services in substantially the same form as Attachment 1 to the report, to WeHOPE in a not-to-exceed amount of $909,780 for base bid;
b. Authorize the City Manager to execute the contract when all necessary conditions have been met;
c. Authorize the City Manager to increase the contract to the available budget;
d. Authorize the City Manager to renew the contract for up to four additional one-year periods based upon available funding, need, pricing, and service; and
e. Authorize the City Manager to modify each contract’s compensation schedule subject to negotiated pricing;
f. Approve Budget Modification No. 5 in the amount of $909,780.
JUSTIFICATION
Staff recommends the one-year contract with WeHOPE based on their experience and capacity to offer these services. This contract provides more robust service hours, service offerings, and staffing than the current street outreach services contract which will help engage more unhoused members of the community.
The WeHOPE Dignity on Wheels mobile hygiene services program provides critical basic needs services to unhoused members of the community, while also connecting them with optional case management services. Unhoused individuals living in their cars, in encampments, and on the street have limited access to restrooms, showers, or laundry facilities. This program allows unhoused individuals to maintain good hygiene which has many positive impacts on a person's dignity, confidence, and ability to become housed and/or employed.
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_Y_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Amanda Sztoltz, Homeless Services Manager
Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. Draft Service Agreement