Approve fifth amendment to Lease Agreement with Economy Inn to extend the term of the Lease through June 30, 2023; and add $162,250 for the period of July 1, 2021, through June 30, 2023, for the provision of Project Room Key Emergency Hotel services; and approve change of use of $162,250 of ARP funding allocated to the City of West Sacramento from hotel purchase of the new site to hotel lease of the existing site. (No general fund impact) (Pinedo/Sullivan)

The California Department of Social Services (“CDSS”) released a Project Room Key (“PRK”) allocation of funding to continue to provide Project Room Key and Rehousing strategy for non-congregate shelter and rehousing services.

On or about September 20, 2021, the County entered into a Lease Agreement with Economy Inn to provide up to sixteen (16) motel rooms to place COVID positive clients who need to quarantine/isolation in the City of West Sacramento. The Lease Agreement was effective on July 1, 2021 through July 31, 2021 with five (5) monthly optional extensions through December 31, 2021.

On or about August 4, 2021, the County issued a one-month option letter extending the term of the lease through August 31, 2021.

On or about September 1, 2021, the County issued a two-month option letter extending the term of the lease through October 31, 2021.

On or about October 4, 2021, the County issued a one-month option letter extending the term of the lease through November 30, 2021.

On or about October 28, 2021, Parties amended the Agreement via the First Amendment to update the list of sixteen (16) rooms.

On or about December 13, 2021, the Parties further amended the Agreement via the Second Amendment to extend the Lease through December 31, 2021, and add six (6) more optional extensions through June 30, 2022.

On or about December 23, 2021, the County issued a one-month option letter extending the term of the lease through January 30, 202.

On or about January 25, 2022, the County issued a one-month option letter extending the term of the lease through February 28, 2022.

On or about February 23, 2022, the County issued a one-month option letter extending the term of the lease through March 31, 2022.

On or about March 23, 2022, the County issued a one-month option letter extending the term of the lease through April 30, 2022.

On or about April 21, 2022, the County issued a two-month option letter extending the term of the lease through June 30, 2022.

On or about June 2, 2022, the Parties further amended the Agreement via the Third Amendment to extend the Lease through July 31, 2022; and add five (5) more optional extensions through December 31, 2022.

On or about July 18, 2022, the County issued a one-month option letter extending the term of the lease through August 31, 2022.

On or about August 15, 2022, the County issued a two-month option letter extending the term of the lease through October 31, 2022.

On or about October 18, 2022, the County issued a two-month option letter extending the term of the lease through December 31, 2022.

On or about November 8, 2022, the Parties further amended the Agreement via the Fourth Amendment to add nine (9) additional rooms for a new total of twenty-five (25) rooms and add three (3) more optional extensions through March 31, 2023.

On or about December 13, 2022, the County issued a three-month option letter extending the term of the lease through March 31, 2023.

On or about September 28, 2021, the Board of Supervisors (Board) approved the initial American Rescue Plan (ARP) Expenditure Plan, which included $7.5 million for the Housing & Homelessness Priority Category. At the November 23, 2021, Board meeting, staff presented the matrix of Housing & Homelessness projects, noting strong support from the priority workgroup for the City of West Sacramento proposal. At the December 7, 2021, Board meeting, staff brought the proposal as a recommendation for board consideration.

On or about January 25, 2022, the Board approved $2,611,462 requested from the City of West Sacramento for property acquisition and operations funding to extend Project Roomkey for a three-year period at a West Sacramento motel. The City of West Sacramento is in the process of acquiring a motel property of approximately 19 rooms, implement necessary site improvements, and work with HHSA to secure contracts to operate a temporary housing program for homeless individuals currently participating in the Project Roomkey program. The proposed motel acquisition will enable the County to consolidate the motel rooms currently being leased from private parties at two different motel locations, and at a much lower cost per room/participant. Additionally, the shift to one property in the immediate vicinity of the City’s similar Project Homekey operation will enable efficiencies of operations between the two sites, saving money and leading to better outcomes for the program’s homeless participants.

Due to delays in the acquisition process, the City of West Sacramento has requested an extension to the current Project Roomkey site.  

HHSA requests the approval of this fifth amendment which extends the term of the Lease Agreement through June 30, 2023. Approval of this amendment will allow Economy Inn to continue providing motel rooms for clients and give additional time while the City of West Sacramento obtains the final purchase of the motel and give flexibility for a smooth transition of clients to alternative housing location.

This program, along with the City’s 40-room Project Homekey operation, serves as a critical source of interim housing for homeless individuals, many of whom will eventually become tenants at the 87-unit permanent supportive housing project being constructed on West Capitol Avenue, the first of its kind project in West Sacramento. Utilizing this funding to extend this lease will prevent the current 31 Project Roomkey participants from being homeless during the transition from the current site to the newly acquired site.

Performance Measures are not associated with this Agreement.

HHSA confirms Economy Inn has performed satisfactorily under this Agreement. Economy Inn has been an essential partner in the County’s homeless response to the Covid pandemic. They have worked diligently with the County to submit timely invoices and to work with the County when issues have arisen and has made additional rooms available when requested.

County Administrator's Office 
Health and Human Services
County Counsel
Department of General Services, Procurement Division.

Contracts for emergency hotel leases were awarded based in order of their willingness to participate in the program, until the maximum aggregate number of rooms required was met. Amendments for these hotels were selected in consultation with the local cities based on the ability to meet ongoing need. 

Countywide ARP funds were allocated as part of the Board's Fiscal Year 2021-22 budget hearing on September 28, 2021. The City of West Sacramento’s project has been designated as eligible through ARP due to the focus on assisting with homelessness in response to the COVID-19 pandemic and providing needed services related to increasing public health outcomes in the County.

HHSA confirms Economy Inn has performed satisfactorily under this agreement. Thus, pursuant to the authority provided to the County Procurement Manager as the County Purchasing Agent under the current Yolo County Procurement Policy, the Procurement Manger has determined that it is in the best interest of the County to extend this Agreement, based on satisfactory service and to avoid the interruption of County business.