REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Service Agreement for Street Outreach and Essential Homeless Services in the Amount Not-to-Exceed $1,090,973 for Temporary Hotel Program Expansion and Approve Budget Modification No. 24 in the Amount of $120,209
Report
REPORT IN BRIEF
The City of Sunnyvale, through its contract with WeHOPE, provides street outreach and essential services to the unhoused community, including a temporary hotel-based shelter program. Due to urgent health and safety concerns, the City conducted an abatement of the encampments near the Main Library and Charles Street Gardens and expanded its existing hotel program to temporarily house affected households through emergency action approved by the City Manager.
Staff is requesting approval of a second amendment to the Service Agreement with WeHOPE in the amount of $120,209 to account for these unexpected services, bringing the new not-to-exceed amount to $1,090,973. The services were provided from February 26, 2025, to March 27, 2025. Budget Modification No. 24 reallocates Permanent Local Housing Allocation (PLHA) funds to cover this expansion.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code (SMC), City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
Pursuant to Section 2.08.190 of the SMC, the city manager, the purchasing officer, or a department head, or a designee of such individual, may make or authorize others to make emergency procurements, regardless of the cost, if there is an urgent necessity to do so for the preservation of life, health, or property.
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 homelessness or at risk of homelessness.
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.
BACKGROUND AND DISCUSSION
In 2022, the City Council added Supporting the Unhoused Community as a Council Strategic Priority. In March 2025 the Council updated this Strategic Priority to “A model to prevent homelessness, prioritize new housing and support the unhoused community.”
Also in 2022, Council authorized and funded street outreach services through a contract with HomeFirst 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 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).
In December 2024, the City Council approved a first amendment to the services agreement with WeHOPE to establish the Inclement Weather Hotel Pilot Program and approved Budget Modification No. 11 in the amount of $73,185. (RTC No. 24-0198.)
In February 2025, staff determined that encampments near the library and Charles Street Gardens needed immediate abatement due to ongoing public health and safety concerns. In response, the City Manager authorized WeHOPE, the City’s contracted street outreach provider, to launch an emergency temporary hotel program expansion to avoid disruption to services and ensure continuity of care for the impacted households.
Temporary Hotel Program Expansion
The short-term temporary hotel program expansion managed by WeHOPE ran from February 26, 2025, to March 27, 2025. It provided eighteen hotel rooms to serve twenty-two households affected by the abatement (with some households able to share space). Three Residential Services Coordinators provided overnight coverage at the hotel site, in a dedicated staff room, to ensure all program policies were followed. Program participants were provided with two meals per day throughout their stay. The program worked with participants to identify alternate shelter and housing opportunities where possible.
Having the current street outreach provider manage the temporary hotel program expansion provided continuity for the households who were experiencing homelessness and working with WeHOPE street outreach staff. Staffing for the temporary hotel program expansion was provided by employees of WeHOPE, who are already trained in working in shelter settings. Minimal City staffing was needed to support the program.
Throughout the program's duration, participants were expected to work with WeHOPE staff to identify and work towards their housing goals. When the program terminated on March 27, 2025, WeHOPE staff worked with the remaining program participants to facilitate their exit from the hotel.
The extended temporary hotel program achieved several notable successes. Five households successfully transitioned into either temporary or permanent housing, while thirteen households began engaging in case management services for the first time. Many participants were also able to secure employment, obtain personal identification documents, or increase their benefits during the program. While most faced challenges in securing shelter within the limited timeframe, many expressed that additional time would have been helpful. Despite these obstacles, the outcomes reflect a significant increase in engagement, highlighting how critical and transformative access to indoor shelter is for individuals experiencing homelessness.
The cost of the program expansion is $120,209, which increases the total contract with WeHOPE to a new not-to-exceed amount of $1,090,973 (which includes street outreach, mobile hygiene, temporary hotel stays, inclement weather hotel stays and the library abatement through September 2025). The Permanent Local Housing Allocation (PLHA) entitlement grant, awarded by the state's Housing and Community Development Department which the City received in 2021, is available to fund case management services. The draft second amendment is Attachment 1 to this report.
Location
The library abatement short-term temporary hotel program was located at Larkspur Landing Extended Stay Suites Milpitas, 40 Ranch Dr. Milpitas, CA 95035, and Larkspur Landing Sunnyvale, 748 Mathilda Ave. Sunnyvale, CA 94085. WeHOPE has a new agreement with the Larkspur Hotel group and, given the volume of hotel rooms needed, used both locations to temporarily house the twenty-two households served by this program.
FISCAL IMPACT
Budget Modification No. 24 has been prepared to transfer $120,209 of 2021 PLHA funds in Fund 2071 - PHLA Grant Program Funding from Project 836850 - PLHA Unhoused Services to Project 837010 - Street Outreach, Temporary Hotel Program, and Mobile Hygiene Services to fund the temporary hotel expansion services.
Budget Modification No. 24
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
PLHA Grant Program Fund |
|
|
|
|
Funding Source |
|
|
|
|
Project 836850 - PLHA Unhoused Services |
$1,163,375 |
($120,209) |
$1,043,166 |
|
|
|
|
|
|
Funding Use |
|
|
|
|
Project 837010 - Street Outreach, Temporary Hotel Program, and Mobile Hygiene Services |
$811,003 |
$120,209 |
$931,212 |
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 City Hall 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.
Recommendation
Recommendation
Take the following actions:
1. Approve an amendment to an existing Service Agreement for Street Outreach and Essential Homeless Services in the amount of $120,209 to a new not-to-exceed amount of $1,090,973, for the Temporary Hotel Program Expansion; and
2. Approve Budget Modification No. 24 in the amount of $120,209.
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 $500 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
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Amanda Sztotlz, Homeless Services Manager
Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Kurtis Mock, Budget Manager
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Second Amendment