REPORT TO COUNCIL
SUBJECT
Title
Amend Street Outreach and Essential Homeless Services Contract to add an Inclement Weather Hotel Pilot Program (Study Issue OCM 22-02: Investigate Potential Locations, Funding, and Outreach for Overnight Warming Centers in the City of Sunnyvale During Inclement Weather) and Approve Budget Modification No. 11 in the Amount of $73,185
Report
REPORT IN BRIEF
In 2022, the City Council directed staff to investigate potential locations, funding, and outreach for Overnight Warming Locations (OWL) in the City during inclement weather through the study issue process for OCM 22-02 (Attachment 2). Staff researched a variety of overnight warming location models, locations, and costs associated with this temporary shelter model to understand the feasibility providing an overnight warming location (OWL) in Sunnyvale during inclement weather.
Through research and conversations with the County and other jurisdictions experienced in this shelter program model, staff found that the most cost-effective model of operating shelter during inclement weather is an inclement weather hotel program. Staff recommends a pilot program (Inclement Weather Hotel Pilot Program or IWHPP) for individuals experiencing homelessness for the 2024-2025 winter season by temporarily expanding the existing hotel shelter program during inclement weather events. At the end of the 2024-2025 winter season and upon review of the service outcomes and available funding, the City could determine if an inclement weather program should continue in future years.
As the City’s current unhoused street outreach provider, WeHOPE, currently operates a temporary hotel-based shelter program for unhoused residents. Staff is recommending an amendment to the existing WeHOPE Street Outreach and Essential Services contract in the amount of $60,987 plus a 20% continency in the amount of $12,198 to expand hotel rooms to establish the Inclement Weather Hotel Pilot Program between December 2024 and April 2025.
Funding for this contract amendment includes reallocating $179,411 from a recently cancelled Permanent Local Housing Allocation Funding (PLHA) program, This amount will replace the same amount of General Funds in the existing WeHOPE street outreach contract for FY 2024/25. By doing this, the General Funds previously allocated to a portion of street outreach staffing can now be used to cover the cost of the IWHPP program. The new contract total is $970,767, with an added 20 percent contingency ($12,198) for the IWHPP portion. This brings the total l contract amount to $982,965. The City will only be invoiced for the rooms and services used when an inclement weather event is activated. The contract amendment is Attachment 1 to this report.
BACKGROUND
In 2022, the City Council directed staff to investigate potential locations, funding, and outreach for Overnight Warming Centers in the City of Sunnyvale during inclement weather through the study issue process. The parameters of the study included review of warming center models, services, potential locations, key partners, necessary resources, criteria for hours of operation and triggers that would determine when a warming center would be activated. Staff presented key findings for Study Issue OCM 22-02 in an October 2022 study session with Council (Attachment 3).
In 2022, the City Council added Supporting the Unhoused Community as a Council Strategic Priority. Also in 2022, Council authorized and funded street outreach services to augment other social service programs in the County and to assist unhoused individuals in learning about and accessing services. The contract for street outreach services with HomeFirst was extended three times through September 30, 2024.
In FY 2023/24, a new position, Homeless Services Manager, was added to the Community Development Department Housing and Human Services Division and the Study Issue was transferred to CDD at that time.
In August 2024, the City Council approved a one-year services agreement with WeHOPE for $909,780 for street outreach, a temporary hotel program, and Dignity on Wheels mobile hygiene services (RTC No. 24-0830.) Shortly after, staff began conversations with WeHOPE to engage in how they could support the City during periods of inclement weather, and the hotel expansion proposal was evaluated as part of the Study Issue research.
EXISTING POLICY
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 Strategic Priority: Support the Unhoused Community
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not result in a potential significant impact on the environment.
DISCUSSION
General Overview of Overnight Warming Locations
Overnight Warming Locations (OWLs) are temporary places where people can go to stay warm and dry during inclement weather. Overnight Warming Locations are similar to homeless shelters, however, they are only open when there is a Cold Weather Activation by a jurisdiction. The duration of operation for an OWL is only as long as the length of inclement weather event. Their primary purpose is to prevent injury and death from exposure to the elements, such as hypothermia, frostbite, or falling objects. OWL’s are often minimally staffed, open from evening until early the next morning, and meals or snacks may be included.
Most commonly libraries, community centers, and other public buildings are identified for an OWL with cots provided for sleeping in a congregate setting. Staff are there to monitor safety through the night, provide meals, and clean up in the morning. Case Management and health services are not typically provided at OWLs.
Challenges With Operating Overnight Warming Locations
Through the study issue process, staff learned that activating and operating traditional OWL’s can be very challenging for public agencies to manage, so much so that many organizations have refrained from operating this model of shelter. Some issues that were identified through conversations with other jurisdictions that have previously funded the OWL model, and nonprofits who have managed them, included:
• Difficulty finding staff to work the OWL on a short-term basis
• Challenges with coordinating public staff to set up and take down shelter quickly
• Identifying safe storage locations for shelter items (cots, bedding, etc.)
• Coordinating meals for shelter participants
• Community outreach and concerns
The Need for Temporary Shelter During Inclement Weather
Each winter, the possibility of severe weather poses a significant threat to the health and well-being of unsheltered individuals living in Sunnyvale. Traditionally, the regional crisis response to these potentially life-threatening conditions has been limited. During the cold weather season (typically from November-April), the County opens Cold Weather Shelters in Gilroy, San Jose, and Mountain View. These shelters operate during the entirety of cold weather months, different from an OWL or IWHPP which only operate under Cold Weather Activation (defined further in this report). Furthermore, the Mountain View program only accepts families and single women.
In previous years, the County had the capacity to serve up to 140 single adults year- round at the Hamlin Court Shelter, with the capacity to add 35 beds during inclement weather, however as the shelter converted to serving only families this year, none of the 175 single adult shelter beds (regular and inclement) are any longer accessible to unhoused single adults. At this time, the wait for a regular adult shelter bed in the County can be as long as 3-4 weeks.
Based on the challenges with coordination and operation of a traditional OWL, and the need for this type of unhoused service, staff has identified an alternate program which will start to address the needs of unhoused individuals during inclement weather in Sunnyvale.
Inclement Weather Hotel Pilot Program
Staff is proposing an Inclement Weather Hotel Pilot Program (IWHPP) with the following parameters:
• Pilot program for FY 2024/25
• $60,997 season cost
• Program managed by the City’s nonprofit street outreach provider, WeHOPE.
• 20% funding contingency ($12,197) in event that inclement weather exceeds 20 nights during season or more rooms are needed for large scale weather events for a total cost of $73,184.
• Operations:
o 10 hotel rooms for up to 20 inclement weather nights from December 2024 through April 2025
o Three (3) Residential Services Coordinators will provide overnight coverage at the hotel site (in a dedicated staff room) to ensure all program policies are followed and to enter and exit each participant at the start and end of the inclement weather event.
o Program participants will be provided with two (2) meals per day for the duration of their stay.
o Whenever possible, program staff will work with program participants to identify alternate shelter and housing opportunities.
Triggers for Cold Weather Activation
Staff proposes relying on the County’s determination that there is an inclement weather event for activation of the Inclement Weather Hotel Program. The County of Santa Clara uses the following guidelines when activating their inclement weather shelter beds:
A Cold Weather Activation is triggered when:
1. Temperatures with a low of 40 degrees or lower, with a probability of rain of at least 5%.
2. Cold Watch or Cold Advisory issued by the National Weather Service (this event would endanger the lives of those living outside).
3. Overnight low of 35 degrees or lower for two or more days (this event would endanger the lives of those living in places not fit for human habitation such as living outside or in vehicles).
4. Heavy and continuous rainfall over two or more days
5. Overnight low of 45 degrees or lower with a probability of rain 50% or higher.
(These triggers are from the SCC OEM site at <https://oem.santaclaracounty.gov/disaster-preparedness/cold-weather-safety>.)
Activation Management
The City Manager (or designee) may direct the activation of the Inclement Weather Hotel Program during an Extreme Weather Event based on weather confirmation by the DPS Office of Emergency Services (OES). This may include weather events fewer than three (3) consecutive days/nights which present extreme risk levels as determined by the NWS. The coordination and outreach needed for the Inclement Weather Hotel Program will be led by the Community Development Department, in accordance with existing street outreach practices.
Location
The IWHPP for FY 2024/25 would be located at the Extended Stay America Suites on Orleans Dr. in Sunnyvale. WeHOPE currently operates services at this location and has an agreement in place with the hotel.
Cost
The total contract amount for one year including the base program cost and contingency is as follows:
Future Program Costs
Should the pilot program be successful after the FY 2024/25 fiscal year, staff will bring the program back to Council for consideration of a permanent program. For reference, staff has estimated the full winter program cost for future consideration of the Inclement Weather Hotel Program in the chart below; a “full winter program” would assume the program operates during inclement weather from November through April at an estimated 40 program nights.
Staff has estimated the cost to fund ten and twenty hotel rooms for a full winter season based on a 3% increase of the FY 24/25 program costs and additional program rooms and nights.
FISCAL IMPACT
Staff has identified $179,411 from the state’s Housing and Community Development Department’s (HCD) Permanent Local Housing Allocation (PLHA) entitlement grant that the City received in 2020 that can fund case management. This funding must be spent by April 2025.
Budget Modification No. 11 has been prepared to allocate $179,411 of 2020 PLHA funds from Project 836850 - Rental Assistance to Unhoused Seniors to existing Project 837010 - Street Outreach, Temporary Hotel Program, and Mobile Hygiene Services to fund the contract amendment. The excess amount of $106,226 will be unappropriated from Project 837010 and returned to the General Fund Budget Stabilization Fund.
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. Approve an Inclement Weather Hotel Pilot Program and related amendment to the WeHOPE contract; Approve Budget Modification No. 11 in the amount of $73,185; and authorize the City Manager to approve up to two additional years if the pilot is successful and funding is available.
2. Alternative 1 with modifications.
3. Do not pursue an Inclement Weather Hotel Program and do not amend the existing WeHOPE Services Agreement.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve an Inclement Weather Hotel Pilot Program and related amendment to the WeHOPE contract; Approve Budget Modification No. 11 in the amount of $73,185; and authorize the City Manager to approve up to two additional years if the pilot is successful and funding is available.
JUSTIFICATION FOR RECOMMENDATION
The City Council's approval of this recommendation will conclude study issue OCM 22-02 and support an inclement weather response plan that will provide temporary shelter for unhoused individuals and families in Sunnyvale during periods of severe inclement weather this winter. Having the current street outreach provider manage the IWHPP services provides continuity with individuals who are experiencing homelessness in Sunnyvale. Staffing for the IWHPP is provided by employees of WeHOPE who are already trained in working in shelter settings. Minimal City staffing is needed to implement the program and “set-up and storage” costs are not needed by using hotel rooms.
The majority of the City’s unhoused population are considered to be experiencing “unsheltered homelessness” meaning that they are living on the street, in their car, or other place not meant for human habitation. Piloting the Inclement Weather Hotel Program this winter season would provide these individuals, many who are seniors or disabled, with getting indoors during inclement weather events.
Due to the PLHA funding that staff has identified to cover a portion of the existing street outreach staffing costs, no additional General Fund monies are needed to support this pilot program. If this pilot is successful, staff will look at future PLHA funding to continue to support street outreach staffing which would offset the cost of the Inclement Weather Hotel Program in future years.
Levine Act
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
An “X” 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
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Amanda Sztoltz, Homeless Services Manager
Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development
Reviewed by: Kurtis Mock, Budget Analyst 2
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft First Amendment to the Street Outreach and Essential Services Contract
2. Study Issue Paper OCM 22-02
3. October 2022 Council Study Session Presentation