Approve and authorize the Interim County Administrator or designee to execute an agreement with Davis Community Meals & Housing for the Paul's Place Project in an amount not to exceed $1,000,000; and approve and authorize the Interim County Administrator or designee to execute an agreement with the City of West Sacramento for the Project Roomkey and Downtown Streets Team project in an amount not to exceed $3,061,462. (No general fund impact) (Nunes/Will)

1. Approve and authorize the Interim County Administrator or designee to execute an agreement with Davis Community Meals & Housing for the Paul's Place Project in an amount not to exceed $1,000,000; and
    
2. Approve and authorize the Interim County Administrator or designee to execute an agreement with the City of West Sacramento for the Project Roomkey and Downtown Streets Team project in an amount not to exceed $3,061,462.

	Thriving Residents
	Safe Communities

ARP Background
On 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 both the Paul's Place Project and the City of West Sacramento proposal. At the December 7, 2021 Board meeting, staff brought both proposals as recommendations for board consideration. Since that meeting, staff have met with both proposers to discuss the projects under ARP and have subsequently received additional information and analysis. The following information provides project scopes and lays out general terms for inclusion in each agreement. 

Paul's Place
Paul's Place seeks to provide critically needed, expanded services and shelter to the most vulnerable at 1111 H Street in Davis. This project includes 18 300-square-foot private units of permanent supportive microhousing on two floors, with two units accessible to those with physical disabilities. Paul's Place serves as a multi-functional structure designed with input from City and County officials, law enforcement, service providers, and other members of the community, and is designed to provide a continuum of care and support services that will effectively move people from the streets to stability. The project is tied to supportive services including addiction or mental health treatment, case management, and day shelter services.

The request for Paul's Place would allow construction to be completed in 2022, with an anticipated completion date in Summer. In addition to the County's contribution, in December 2021, the City of Davis approved up to $1,000,000 in their ARP funds to support the project as well.

Kitchell Analysis
In preparation for a County contribution to Paul's Place, County staff authorized Kitchell, a construction consultant, to prepare an analysis of the existing Paul's Place project to accurately depict the required funding to complete the project. The completed Kitchell analysis may be found as Attachment A to this staff report. The report recommends a funding level of $838,227 to complete the project, assuming a contribution of $1,000,000 by the City of Davis. However, staff recommends splitting the cost of the total project gap requirement of $1,838,227 as a 50/50 split with the City of Davis, honoring both jurisdictions' commitments to this effort equally. This 50/50 split would require a contribution of $919,113.50 by each partner and is what staff would recommend at this time for this project. The staff agenda item reflects a not-to-exceed amount of $1,000,000 to provide a small level of flexibility that is within the range proposed by Kitchell.

Performance Measures
Davis Community Meals & Housing shall also collect performance and outcome data associated with this project, which will be developed by staff, and outcomes will be reported to the Board. These outcomes shall cover both the construction and programmatic aspects of the Paul's Place project. Per ARP requirements, all eligible costs must be incurred between March 3, 2021, and December 31, 2024, with funds obligated by December 31, 2024, and expended by December 31, 2026.

City of West Sacramento Proposal
The City of West Sacramento proposal includes two pieces; a request to support a Project Roomkey project in the amount of $2,611,462; and to support the Downtown Streets Team (DST) and extend operations of the program for a three-year period for $450,000. The City intends to match the requested County funds on a 1:1 basis to support both activities.

Project Roomkey Description
The City of West Sacramento is requesting $2,611,462 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 will acquire a motel property of approximately 25 rooms, implement necessary site improvements, and work with Yolo County Health and Human Services Agency 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. The City is currently working out property management for the project, and intends to contract out day-to-day on-site operations of the new interim homeless housing program.

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. The Roomkey program at the consolidated location will be operated for three years, beginning in approximately December 2021 and running through the end of the 2024 calendar year. Funding for the overall program will be split evenly between the City and County, with City funding likely allocated from West Sacramento’s ARP funds and County funding being a combination of ARP funds and possibly State Project Roomkey funding currently being utilized to lease other motel rooms. If funding for this proposal is approved by the County and City, the City would move expeditiously to acquire the motel property and prepare it for occupancy under Roomkey. In the meantime, the County would continue to lease rooms from private parties at the two current Roomkey locations. This program, along with the City’s 40-room Project Homekey operation, will serve as an important 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.

Downtown Streets Team Description
The City of West Sacramento requests $450,000 in County ARP funding to enable the City to extend operations of the DST program for a three-year period, through December 2024. The requested County funds would be matched equally by the City using a portion of its Measure E funding specifically dedicated to reducing the incidence and impacts of homelessness. Since 2018, the City has contracted with DST, a non-profit organization that operates a unique work experience program for homeless and at-risk individuals in multiple cities in California. The goal of DST’s program model is to reduce homelessness by restoring dignity and preparing participants for employment. Under the program, homeless participants become part of a “team” that carries out community beautification and maintenance activities in exchange for receiving case management (counseling and housing navigation services), employment assistance services, and financial rewards for basic needs in the form of rent stipends or gift cards. DST cites that since 2009, its various programs have resulted in finding permanent housing for over 850 of its participants and lasting employment for over 900 individuals.

DST program activities are conducted during daytime hours and may include tasks such as garbage pickup, graffiti removal, and assisting with the cleanup of homeless encampments. DST is designed to operate within downtown districts to decrease the incidence of panhandling and other visible effects of homelessness while simultaneously improving those areas and providing unsheltered individuals a path to housing and employment stability. The City has focused recent DST activities in the area surrounding the properties being utilized for Project Homekey and Roomkey, in order to reduce the impacts of those homeless housing programs on the surrounding central business district and civic center areas. Approximately 25 team members participate in the West Sacramento program at any given time and, according to DST data, the team has collected nearly 88,000 gallons of trash in the city since its inception. The City recently renewed its contract with DST, but only for a one-year period ending in June 2022 at a cost of $300,000. The City funds for the contract primarily cover DST program staff costs and other expenses necessary to support implementation, in addition to funding for stipends and rewards for program participants. The requested County ARP funding would provide sufficient funding leverage to enable the City to extend its contract with DST for a much longer period, from January 2022 through at least December 2024, matching with the term of the proposed Project Roomkey program.

Performance Measures
The City of West Sacramento shall also collect performance and outcome data associated with this project, which will be developed by staff and outcomes will be reported to the Board. These outcomes shall cover both Project Roomkey and the Downtown Streets Team. Per ARP requirements, all eligible costs must be incurred between March 3, 2021, and December 31, 2024, with funds obligated by December 31, 2024, and expended by December 31, 2026.

Davis Community Meals & Housing, the City of West Sacramento, County Administrator's Office, Department of Financial Services

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