Title
Recommendation to Authorize the City Manager to Execute a Three-and-a-Half-Year Agreement with Operation Dignity, Inc. to Provide Interim Supportive Housing and Property Management Services at Dignity Village in an Amount Not-to-Exceed $7,372,526, and Authorize the City Manager to Execute Documents, Agreements and Modifications with California Department of Housing and Community Development to Add Operation Dignity as a Homekey 2 Co-Grantee; and
Adoption of Resolution Amending the Fiscal Year 2024-25 Operating and Project Budget Appropriating $1,200,000 from General Fund Residual Fund Balance to Project G44010 Dignity Village Operations.
This project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to California Environmental Quality Act Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (City Manager 10021833)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City), DignityMoves, and Five Keys Schools and Programs (Five Keys), received a Homekey 2 grant to construct and operate Dignity Village, a 47-unit, 61-bed interim supportive housing program for individuals experiencing homelessness and unhoused transitional age youth, located at 2350 5th Street. Since opening in May 2023, Dignity Village has housed a total of ninety-five (95) individuals. In July 2024, staff brought a recommendation to City Council to remove Five Keys as the social services provider and approve an agreement with Building Opportunities for Self-Sufficiency (BOSS) as a temporary social service provider for up to one year while staff conducted a comprehensive Request for Proposal (RFP) process to identify a long-term provider. Through an extensive process, staff recommends Operation Dignity, Inc. (Operation Dignity) to operate and manage Dignity Village and its programs to support individuals experiencing homeless in Alameda with professionalism, compassion, and care.
Staff recommends that City Council authorize the City Manager to execute a three and a half year agreement with Operation Dignity in an amount not-to-exceed $7,372,526 to provide interim supportive housing and property management services at Dignity Village. Further, staff recommends City Council authorize the City Manager to execute documents, agreements and modifications to the California Department of Housing and Community Development (HCD) and add Operation Dignity as a Homekey 2 co-grantee. Finally, staff recommends City Council approve a resolution amending the Fiscal Year (FY) 2024-25 General Fund Operating and Project Budget, appropriating $1.2 million from General Fund Residual Fund Balance to Project G44010 Dignity Village Operations.
BACKGROUND
On November 16, 2021, City Council approved a Memorandum of Understanding with DignityMoves and Five Keys, which ultimately led to the Homekey 2 application submission and award to support the construction and opening of Dignity Village.
On October 18, 2022, City Council authorized the City Manager to enter into a five-year agreement with Five Keys to provide interim supportive housing for Dignity Village in the amount not-to-exceed $10,745,844. The funding sources identified and appropriated to fund the operations of Dignity Village are all one-time funding sources, including grants, General Fund (for Fiscal Year 2021-22), and American Rescue Plan Program (ARPA) funds. On October 18, 2022, City Council also authorized the City Manager to enter into a five-year agreement with Five Keys to provide interim supportive housing for Dignity Village in the amount not-to-exceed $10,745,844.
In July 2024, City Council approved the termination of the agreement with Five Keys, based on alleged financial misconduct by a Five Keys’ employee, and approved the execution of an agreement with BOSS to serve as the temporary provider on site at Dignity Village until staff of the Housing and Human Services Division of the City Manager’s Office (HHS) could conduct a thorough RFP process to identify a new, permanent provider.
In August 2024, HHS released the RFP and received 10 proposals. A review of the written responses was completed by HHS staff and a staff member from Alameda County Board of Supervisors District 3. The top five rated organizations, listed in rank order, based on a review of written submissions were: Alameda Point Collaborative, Operation Dignity Inc. (Operation Dignity), Ruby’s Place, Building Opportunities for Self Sufficiency (BOSS), and The Village of Love Foundation (VOL).
In September 2024, a panel comprised of HHS staff, Assistant City Manager, staff from Alameda Family Services, Building Futures Mid-County Housing Resource Center, and an individual with lived experience who previously resided at Dignity Village, interviewed the top five respondent organizations.
In October 2024, the HHS Manager completed individual organization interviews, reviewed past service data and conducted site visits with all top five respondents.
Following this extensive and in-depth review process, staff recommends City Council authorize the City Manager to execute agreements with Operation Dignity as the long-term service provider for Dignity Village.
DISCUSSION
Of the top five respondents, Operation Dignity and BOSS were the only two organizations that demonstrated experience managing single adult shelter programs comparable in size and population served to Dignity Village. Operation Dignity placed at a higher rank than BOSS in both the written submission scoring and with the interview panel. A review of data from the Homeless Management Information System (HMIS) shows Operation Dignity as having top-ranked outcomes and was ranked first for the site visits that were conducted in October 2024 by the HHS Manager.
In addition to the rankings of their written submission, panel interview, outcomes, and site visit, Operation Dignity was chosen based on:
1. Demonstrated fluency with the Alameda County (County) Coordinated Entry System (CES), which is the required entry system for Dignity Village referrals and permanent housing matches.
2. Proven ability to leverage County resources to support with transitions to permanent housing.
3. Understanding of the importance of relationships with surrounding neighbors and the maintenance of the spaces both inside the project’s gates and outside where the program interfaces with the immediate community.
4. In-house property management and facilities team structure.
Since 1993, Operation Dignity has worked to house and serve the most vulnerable people experiencing homelessness in Alameda County, including veterans and people living in encampments. Operations Dignity’s mission is to create pathways to health and housing for individuals served.
The organization has a strong presence in Alameda, which began in 2001 when Dignity Commons, a transitional housing site for homeless veterans, first opened at Alameda Point. Operation Dignity served as the City’s first Homeless Outreach Team provider from 2019 to 2022 and was chosen as the City’s implementation partner for the guaranteed income pilot program, Rise Up, also in 2022. Operation Dignity is currently developing permanent supportive housing as a West Midway RESHAP Project partner.
The agreement (Exhibit 1) includes the following services for Dignity Village:
• Intake/needs assessments
• Individualized service planning/goal setting
• Case management with individualized one on one, ongoing throughout residency
• Life skills classes/activities
• Peer mentoring and peer support groups
• Housing search, navigation and placement assistance, including landlord advocacy, document readiness, move-in support
• Provide after care support for six to twelve months once people are permanently housed to increase success and prevent individuals from returning to homelessness once successfully exited from Dignity Village
• Referrals/service linkages for health/mental health, legal assistance, income/benefits advocacy, education, employment, and family/children’s services as appropriate
• Direct coordination with the onsite Alameda Family Services mental health clinician
• Ongoing support of the Dignity Village Resident Advisory Board
• Good neighbor policy, resident education, and community meeting participation
• Meal service and amenities
• Facility/property management
• Security and janitorial services
ALTERNATIVES
• Authorize the City Manager to execute a three-and-a-half-year agreement with Operation Dignity, Inc. to provide interim supportive housing and property management services at Dignity Village and authorize the City Manager to execute documents, agreements and modifications with California Department of Housing and Community Development to add Operation Dignity as a Homekey 2 co-grantee.
• Decline to authorize the City Manager to execute an agreement with Operation Dignity, Inc. and direct staff to identify a different service provider.
FINANCIAL IMPACT
A five-year, $10,745,844 budget was previously approved by City Council in October 2022 for operating expenses for Dignity Village. The Dignity Village operating budget is funded for five years from the American Rescue Plan Act (ARPA) funds, HomeKey 2 grant, Permanent and Local Housing Allocation (PLHA), and General Fund.
On November 16, 2021, City Council authorized Resolution No. 15835. Part of the Resolution’s action was to amend the FY 2021-22 General Fund Operating Budget and appropriate $1.2 million to the Community Development Operating Budget “to operate interim supportive housing at the Bottle Parcel.” These funds were never encumbered by contract or authorized to be appropriated to a project. Thus, at the end of FY 2021-22, $1.2 million was returned to the General Fund fund balance. The State’s Homekey funding, which is critical for this project, requires the City ensure five years of funding for operation of this interim supportive housing program. Therefore, in order to ensure this funding obligation is met, there is a need to reappropriate $1.2 million from General Fund Residual fund balance to Project G44010.
|
Funding Sources |
Amount |
Status |
|
State Homekey 2.0 Grant |
$2,555,844 |
Approved Resolution No. 15989 |
|
County Home ARP Allocations |
$2,654,622 |
Approved Resolution No. 15992 |
|
State PLAH Grant |
$1,000,000 |
Approved Resolution No. 15991 |
|
Federal APRA Allocation |
$3,335,378 |
Approved File No. 2021-1466 |
|
General Fund |
$1,200,000 |
Approved Resolution No. 15835 |
|
Total |
$10,745,844 |
|
|
Less Paid to Date |
$(3,101,484.41) |
|
|
Less FY21-22 Operating Budget Appropriation |
$(1,200,000) |
Released operating budget appropriation |
|
Currently Available for Encumbrance |
$6,444,359.59 |
|
|
Requested General Fund Appropriation |
$1,200,000 |
Pending City Council Action |
|
Proposed Available for Encumbrance |
$7,644,359.59 |
|
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action supports the City’s Strategic Plan priority to House All Alamedans and End Homelessness, specifically Project HH1 to address housing and human services functions and develop recommendations and Project HH2 to implement the Homelessness Strategic Plan. This action is also consistent with Goal 2 of “The Road Home: A Five -Year Strategic Plan to Prevent and Respond to Homelessness in Alameda.” This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
Additionally, this project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense).
CLIMATE IMPACT
The Social Vulnerability Assessment section of the Climate Action and Resiliency Plan states:
“adaptation strategies should consider how [the homeless] will receive emergency communications and how they will be sheltered. Proper, safe housing for all is an adaptation and resilience strategy. Planning strategies should always consider these vulnerable populations in adaptation efforts.”
RECOMMENDATION
Authorize the City Manager to execute a three-and-a-half-year agreement with Operation Dignity, Inc. to provide interim supportive housing and property management services at Dignity Village in an amount not-to-exceed $7,422,519; and, authorize the City Manager to execute documents, agreements and modifications with California Department of Housing and Community Development to add Operation Dignity as a Homekey 2 co-grantee; and
Adopt a resolution amending the Fiscal Year 2024-25 Operating and Project Budget appropriating $1,200,000 from General Fund Residual fund balance to Project G44010 (Dignity Village Operations) to ensure proper funding is available to operate interim supportive homeless housing at Dignity Village.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
C’Mone Falls, Housing and Human Services Manager
Marcie Soslau Johnson, Social Services Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Service Provider Agreement