DATE: June 20, 2023
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Agreement with the Housing Authority of the City of Fresno for Master-Leased Housing at Sierra Terrace
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances as the Housing Authority of the City of Fresno is a local governmental agency; and
2. Approve and authorize the Chairman to execute an Agreement with the Housing Authority of the City of Fresno for master-leased housing at Sierra Terrace, located at 937 Klette Avenue, Fresno, CA 93706, effective July 1, 2023, not to exceed three consecutive years, total not to exceed $3,348,793.
REPORT
Approval of the recommended actions will suspend the competitive bid process and ensure the continued provision of housing for homeless families served by the Department. The Housing Authority of the City of Fresno (Housing Authority) will provide a 45-unit apartment complex for the exclusive use of County clients. The recommended agreement will be effective July 1, 2023 through June 30, 2026. Although services are centrally located at Sierra Terrace, which is in District 1, the item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, the Department will not have exclusive access to 45 units for families in need of housing. The Department would need to seek other temporary housing or housing support services for families.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The Department’s request to waive the competitive bidding process is consistent with Administrative Policy No. 34 based upon the Housing Authority’s status as a local governmental agency. The Internal Services Department - Purchasing concurs with the Department’s request to waive the competitive bidding process.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum cost of the agreement ($3,348,793) will be fully offset using CalWORKs Housing Support Program (HSP), Bringing Families Home (BFH), and 2011 Realignment funds. Sufficient appropriations and estimated revenues are included in the FY 2023-24 Recommended Budget for the Department of Social Services, Org 5610 and will be included in subsequent budget requests.
DISCUSSION:
For over 40 years, the Department has contracted with Housing Authority to provide temporary emergency housing for Department families experiencing homelessness or in need of stable housing. El Puente was intended primarily for Child Welfare families during or after family reunification and secondarily for CalWORKs families when space allowed. The previous program design required that families receive cash aid, a portion of which they were required to save and use when they moved out with a maximum stay of 90 days.
The proposed program has been redesigned and program services have been updated. The program will move from an emergency shelter to a rapid rehousing model. Rapid rehousing (RRH) is designed to assist homeless families to quickly exit homelessness and return to permanent housing. The core components of a rapid rehousing program are: 1) housing identification, 2) rent and move-in assistance, and 3) case management. In this case, the master lease agreement will operate in conjunction with an on-site RRH program.
The program will be rebranded to Sierra Terrace, which is the name of the property. As the service is moving from emergency shelter to RRH, changing the name will allow Department staff and the public to view the program in its new form.
At Sierra Terrace, there are 45 one-to-five-bedroom apartments (6 1-bedrooms, 14 2-bedrooms, 18 3-bedrooms, 6 4-bedrooms, 1 5-bedroom). There will be an on-site fee for service laundry facility available to all residents of the apartment complex. There is sufficient office space for Department and partners to provide services to the households on site. The recommended agreement also includes security services.
The proposed program provides up to 12 months of housing and case management at Sierra Terrace, assisting families in removing obstacles to obtain and retain permanent housing and develop long-term housing stability. Housing assistance and case management services will be provided for a maximum of 12 months at Sierra Terrace with the potential of up to 12 additional months of the assistance in the household’s permanent residence should the family need it.
The recommended agreement deviates from the County’s standard agreement language by not allowing for indemnification or recoupment solely caused by County’s gross negligence or willful misconduct.
The recommended agreement is effective July 1, 2023 through June 30, 2026. The agreement may be terminated without cause by Housing Authority, County, or County’s Department of Social Services Director, or designee, upon providing 30-day advance written notice.
REFERENCE MATERIAL:
BAI #37, September 20, 2022
BAI #71, July 10, 2018
BAI #57, September 26, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition
On file with Clerk - Agreement with Fresno Housing Authority of the City of Fresno
CAO ANALYST:
Ronald Alexander