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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Award Contract for Homeless Outreach and Case Management Services within the City of Murrieta and Wildomar
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RECOMMENDATION
recommendation
Amend the Fiscal Year (FY) 2024/25 Operating Budget, as described in the Fiscal Impact statement;
Approve an agreement with City Net for Homeless Street Outreach and Case Management Services for a total not to exceed $1,483,130; and
Authorize the City Manager to execute the agreement.
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PRIOR ACTION/VOTE
On February 15, 2022, the City Council approved an amendment to the agreement with City Net, increasing compensation for homeless case management services and approving an amendment to the agreement with Social Work Action Group removing case management services from the scope of work (Vote: 5-0).
On June 21, 2022, the City Council adopted a resolution to accept additional, supplemental Emergency Solutions Grant - Coronavirus Round 2 funding from the County of Riverside Department of Housing, Homeless Prevention and Workforce Solutions to support continued emergency sheltering services in the amount of $153,035.35(Vote: 5-0).
On November 1, 2022, the City Council approved a second amendment to the agreement with City Net for month-to-month services until a long-term agreement could be executed (Vote: 5-0).
On October 17, 2023, the City Council accepted additional supplemental grant funding from the County of Riverside’s Department of Housing and Workforce Solutions for the Homeless Incentive Program for street outreach. (Vote: 5-0)
On February 20, 2024, the cities of Murrieta and Wildomar entered into a Memorandum of Understanding for shared homeless outreach services utilizing Murrieta’s existing agreement with City Net, with Wildomar reimbursing Murrieta for the equivalent of 1.5 days of service per week, plus an administrative fee to Murrieta. (Vote: 5-0)
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
Under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, Riverside County received a one-time funding allocation for homeless programming. Through this opportunity, the City of Murrieta successfully secured $992,154.70 in Emergency Solutions Grant (ESG) - Coronavirus Round 2 (ESG-CV2) funding. A significant portion of this funding ($513,770.20) was allocated to a contract with Social Work Action Group (SWAG), followed by City Net for street outreach and case management services ($513,770.20). Since implementing these initiatives, Murrieta has seen a substantial reduction in visible homelessness and achieved functional zero homelessness-ensuring shelter is available for all individuals willing to move towards housing sustainability.
Over the past few years, the City of Murrieta has made exceptional strides in addressing homelessness. The establishment of the Community Policing Team and the Community Behavioral Assessment Team within the Murrieta Police Department, the partnership in place with City Net and Project T.O.U.C.H., and the addition of staffing have led to seamless services leading to virtually no visible homelessness on the streets of Murrieta. In 2023 alone, 190 individuals were engaged through street outreach efforts, with 108 having positive exits from homelessness, 58 of which were through placements at Project T.O.U.C.H. in 2023.
In 2024, the City of Wildomar inquired whether the City of Murrieta had the capacity under the existing agreement with City Net to provide 1.5 days per week of homeless outreach services to their city. Murrieta and Wildomar entered into a Memorandum of Understanding (MOU) solidifying this agreement. As a result of the MOU, Murrieta is reimbursed by Wildomar for a portion of its agreement with City Net, thus lowering the direct costs to Murrieta.
Currently, the City and City Net are operating on a month-to-month agreement for street outreach and case management services, capped at $32,632.34 per month, with services provided to the City of Wildomar reducing the overall monthly cost to the City of Murrieta.
To ensure the continued success of homelessness initiatives and provide stability for future programming, staff recommends transitioning to a long-term agreement. On October 3, 2024, staff released a Request for Proposal (RFP) for street outreach and case management services. City Net was the sole responder to the RFP. Staff reviewed the proposal and provided a rating based on experience, ability to perform services, past city experience, and total fees. Upon final negotiation, City Net was selected as the vendor. Staff recommends entering into a twenty-nine month agreement (February 1, 2025 - June 30, 2027) with City Net, with two optional one-year terms, to maintain the momentum and continue delivering effective solutions to homelessness in Murrieta.
FISCAL IMPACT
At the time of award, the full value of the multi-year contract through June 30, 2027, will total $1,483,131, of which the City of Murrieta will be obligated to cover $1,038,191. City Net operates five days per week, of which the City of Wildomar utilizes 1.5 days. This equates to 30% of the total contract utilization. The graph below shows a breakdown of funding obligations for the next three years. Exhibit C-1 of the agreement provides details of the program’s labor and operating expenses.
|
FY |
Proposed Totals for Exhibit C-1 |
% Utilization for Remaining FY |
Agreement Total* |
Murrieta Portion |
Wildomar Portion |
|
FY 2025 |
577,281 |
42% |
240,534 |
168,374 |
72,160 |
|
FY 2026 |
606,145 |
100% |
606,145 |
424,302 |
181,844 |
|
FY 2027 |
636,452 |
100% |
636,452 |
445,516 |
190,936 |
|
|
1,819,877 |
|
1,483,131 |
1,038,191 |
444,940 |
|
*Totals rounded to the nearest dollar |
Since the contract will be effective retroactively from February 1, 2025, services will only be billed for the remaining five (5) months of the current fiscal year. The fiscal impact for FY 2024/25 is $240,534, with $168,374 allocated to the City of Murrieta and $72,160 allocated to the City of Wildomar. The costs from February 2025 to June 2025 will be covered by the General Fund account 1105100-60480.
Staff recommends amending the Fiscal Year 2024/25 budget to establish a revenue budget in the General Fund account 1105100-42224 to account for the City of Wildomar’s reimbursement of $72,160.
Staff will actively seek grant funding to support the costs for the remaining FY 2025/26 and FY 2026/27 street outreach and case management services. Any required budget adjustments will be addressed through the upcoming biennial budget process, quarterly budget updates, or a subsequent agenda report upon the successful acquisition of grant funding. If grant funding is no longer available in future years, continued operation at the current level of programming would require a contribution from the General Fund.
ATTACHMENTS
1. Contract with City Net