TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Lindsay Sisti, Assistant Management Analyst
SUBJECT:
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Acceptance of Various Grants for Homeless Services and Award of Multiple Outreach Agreements
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RECOMMENDATION
recommendation
Accept Encampment Resolution Funding (ERF) from the County of Riverside Housing and Workforce Solutions for homeless outreach activities in the amount of $6,655,713.60;
Approve an Agreement for homeless outreach activities between the City of Murrieta and Kingdom Causes, Inc. dba City Net (City Net) in an amount not to exceed $5,734,829.53;
Accept Homeless Housing, Assistance and Prevention (HHAP) Grant Funding from the County of Riverside Housing and Workforce Solutions for Rapid Rehousing assistance in the amount of $144,000;
Approve an Agreement for Rapid Rehousing assistance between the City of Murrieta and City Net in an amount not to exceed $144,000;
Amend the Fiscal Year (FY) 2024/25 Operating Budget, as described in the Fiscal Impact statement; and
Authorize the City Manager to execute all agreements.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
In April 2024, the County of Riverside (County), in partnership with City of Murrieta staff and surrounding Southwest Riverside County cities, applied for the Encampment Resolution Funding (ERF) grant. The ERF grant provides State funds to support local communities in their endeavors to support homeless individuals on their path to secure safe and stable housing. The Southwest Region and County chose to partner in this funding application to support the Regional Homeless Alliance (RHA) and the shared interest in expanding homeless outreach and support efforts along Murrieta Creek. This effort includes Murrieta, Wildomar, Lake Elsinore, Menifee, and the unincorporated area around Temecula, with the goal of helping 100 households transition from homelessness to stable, permanent housing. In October 2024, the County was awarded $12,612,799, for the Murrieta Creek Project (Project).
Upon award, the County selected the City to be the project manager for the Project to implement key program components addressing homelessness across the RHA. A multidisciplinary team-including Street Outreach, Behavioral Health Specialists, Animal Services, Street Medicine, Adult Services, and the Housing Authority of Riverside County-will work collaboratively to support individuals experiencing homelessness along the Murrieta Creek Trail. The City will receive $6,655,713.60 of the allotted funding to support expanded outreach efforts, interim housing, rental assistance, and case management through June 30, 2027. From this allocation, $5,734,881.60, is dedicated to contracting with a vendor who specializes in street outreach and support; $920,832, will be utilized for project administration by the City of Murrieta, including funding for an administrative assistant, a management analyst assistant (or equivalent) at 50% capacity, and an external project consultant to provide the necessary support for this program.
Upon announcement of the award, City staff published a Request for Proposals (RFP) on Tuesday, February 11, 2025. The RFP sought a contractor with the ability to expand outreach efforts by adding eight dedicated outreach workers, facilitate transitions to interim housing, and secure permanent housing with ongoing case management for long-term stability. The RFP closed on Tuesday, March 4, 2025; two responses were received. Upon receipt, a committee reviewed and rated the proposals. Scoring highlighted that one vendor had significantly more experience handling the type of requested services, which resulted in staff selecting City Net to be the contractor who would bring the best value to the City.
On the grant front, in October 2024, staff applied for and was awarded $144,000 in Homeless Housing, Assistance, and Prevention (HHAP) funding from the County to launch a regional Rapid Rehousing Program. The funding must be 100% utilized by December 31, 2026. Upon receiving the intention to award notification from the County, staff prepared and released an RFP on Tuesday, February 11, 2025, requesting applicants provide housing assistance and case management for at least eight households working with the Murrieta Emergency Shelter and Street Outreach teams in Murrieta, Wildomar, and Menifee to secure and maintain permanent housing. The RFP closed on Tuesday, March 4, 2025, and received a single submittal. The submittal was reviewed and deemed responsible by the review committee, which resulted in the selection of City Net as the agreement recipient.
FISCAL IMPACT
The total grant award amount for the ERF is $6,655,713.60. Finance will establish the revenue and expenditure budgets as a grant fund. The $6,655,713.60, for ERF will be allocated over multiple fiscal years. The grant funds will be allocated and accounted for as follows:
Staff cannot determine the exact expenditures month-to-month; therefore, any remaining grant funds at the end of each fiscal year will roll over to the next fiscal year until June 30, 2027, or when the grant fund is fully utilized.
The total grant award amount for the HHAP is $144,000. The HHAP funding will be applied to grant fund 358 (Other State Grants) in FY 2024/25. A new program code will be created for the application of funds.
Much like ERF, staff cannot determine the exact expenditures month-to-month; therefore, any remaining grant funds at the end of each fiscal year will roll over to the next fiscal year until December 31, 2026, or when the grant fund is fully utilized to launch a regional Rapid Rehousing Program. This funding will support the City Net contract in providing housing assistance and case management to at least eight households in Murrieta, Wildomar, and Menifee.
ATTACHMENTS
1. ERF Agreement between County and City
2. HHAP Agreement between County and City
3. City Net Agreement - ERF
4. City Net Agreement - HHAP