FROM:
Development Services
SUBJECT:
Title
Hotel Management Agreement for Homelessness Prevention Resource and Care Center (HPRCC)
End
RECOMMENDATION:
Recommendation
1. Approve the proposal and authorize the City Manager to enter into an agreement with KC Management, LLC in the amount of $120,000 for four months plus optional, additional 60-day extensions of $60,000 each for professional property management of the Homelessness Prevention Resource and Care Center (HPRCC) located at 17133 Valley Boulevard, Fontana CA 92335.
2. Approve the Non-Competitive Proposal Single Source/Sole Source method of the City’s Purchasing Policies and Procedure Manual Section 3.1.5.
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COUNCIL GOALS:
• Operate in a businesslike manner by correcting problems immediately.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by acquisition, substantial rehabilitation, and professional management of selected multi-family properties to provide more affordable units and reduce crime and code enforcement activity.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
DISCUSSION:
The City of Fontana has determined Homelessness and Homeless prevention as a top priority and has previously instructed staff to take all feasible actions in support of the City’s homelessness prevention plan.
Key to the City’s overall action plan to resolve homelessness is the creation or acquisition of facilities capable of housing qualified individuals. In February 2024, with the City acquired an approximately 30,000 square foot, two-story hotel with 60 individual suites and a manager’s quarters to reconstruct into administrative and service offices.
Acquisition of this property provides a one-of-a-kind transitional housing facility with a 24-hour managed care center for up to 30 chronically homeless individuals as well as housing and appropriate support services for up to 16 families.
KC Management, LLC owned and operated the hotel prior to the City’s acquisition and has specialized knowledge of hotel operations and this property specifically.
In February of this year, the City issued a Request for Proposals (RFP) DE-24-140-SP to provide “Interim Housing Operator and Wellness Services” for the property to assist the homelessness in the city. The facility was slated to function as interim housing and operate 24 hour care and monitoring seven days a week, 365 days a year. The facility was to provide a safe shelter, as well as basic needs, and social service assistance. The RFP resulted in two respondent proposals that were over $5,000,000. Based on the cost of the proposals, staff will be seeking other avenues for funding the intended facility. To prevent further delay in providing interim housing for the homeless, a hotel management company will be needed until a new RFP can be issued for the homeless center.
Staff is recommending procuring the services of KC Management, LLC under the Purchasing Policies and Procedure Manual Section 3.1.5 as the circumstances permit the use of the Non-Competitive Proposal method to maintain continuity of the service.
FISCAL IMPACT:
The initial fiscal impact associated with the approval of this item is $120,000 or $30,000 per month for four months with additional optional 60-day extensions of $60,000 each, and will be funded by special benefit fees generated by Cannabis retail operations and supplemented by hotel voucher programs in use throughout the County of San Bernardino. The required budget adjustments will be included in the next quarterly budget report in Fund 101.
MOTION:
Approve staff recommendation.