REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 13, 2023
FROM
DIANA ATKESON, Deputy Executive Officer, Community Revitalization
SUBJECT
Title
Amendments to Contracts to Extend the Provision of Rooms and Meals to Participants of Project Roomkey
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 4, effective July 1, 2023, to Contract No. 21-122 with Aviah Hospitality, Inc. dba Motel 6 for the continued provision of rooms to Project Roomkey participants, updating the contract terms, increasing the total contract amount by $1,080,000, from $2,153,540 to a total amount not to exceed $3,233,540, and extending the contract period an additional year, for the total contract period of January 1, 2021 through June 30, 2024.
2. Approve Amendment No. 5, effective July 1, 2023, to Contract No. 21-123 with Orange Show Hospitality, Inc. for the continued provision of rooms to Project Roomkey participants, updating the contract terms, increasing the total contract amount by $2,250,000, from $3,045,920 to a total amount not to exceed $5,295,920, and extending the contract period an additional year, for the total contract period of January 1, 2021 through June 30, 2024.
3. Approve Amendment No. 5, effective July 1, 2023, to Contract No. 20-1142 with Prime Hospitality, Inc. dba Woody’s Classic Grill for the continued provision of meals to Project Roomkey participants, increasing the total contract amount by $347,580, from $1,947,366 to a total amount not to exceed $2,294,946, and extending the contract period an additional year, for the total contract period of July 6, 2020 through June 30, 2024.
(Presenter: Diana Atkeson, Deputy Executive Officer, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
This item will not impact Discretionary General Funding (Net County Cost). The total estimated cost to fund the extended services through Aviah Hospitality, Inc. dba Motel 6 (Motel 6), Orange Show Hospitality, Inc. (Orange Show), and Prime Hospitality, Inc. dba Woody’s Classic Grill (Woody’s), for one additional year is $3,677,580, and will be funded by the American Rescue Plan Act (ARPA), Homeless Housing, Assistance and Prevention (HHAP) Round 3 state grant, and a state grant for Project Roomkey from the California Department of Social Services. The amendments extend the contracts for an additional year through June 30, 2024, and increase the total contract amount for Motel 6 by $1,080,000, from $2,153,540 to $3,233,540; Orange Show by $2,250,000, from $3,045,920 to $5,295,920; and Woody’s by $347,580, from $1,947,366 to $2,294,946. Adequate appropriation and revenue will be included in the Office of Homeless Services’ (OHS) and ARPA Fund 2023-24 recommended budgets.
BACKGROUND INFORMATION
On March 4, 2020, California Governor Gavin Newsom proclaimed a State of Emergency as a result of the COVID-19 threat. In early April 2020, the Governor announced the launch of Project Roomkey. Project Roomkey was developed as a state initiative to provide safe isolation capacity for the unsheltered homeless in order to protect them from COVID-19 and to help protect public health and safety. The County’s Project Roomkey program was initiated through a collaboration between the County, non-profit agencies, and local businesses, including the hospitality industry.
The recommended amendments to the contracts with Motel 6, Orange Show, and Woody’s will continue the provision of non-congregate shelter and meals to Project Roomkey participants. Payments to Motel 6 and Orange Show are based on the number of occupied rooms. Payments to Woody’s are based on the number of meals provided, per day, to eligible participants. In fiscal year 2022-23, room occupancy was at an average of 35 per day for Motel 6, and an average of 55 per day for Orange Show. Project Roomkey participants receive two to three prepared meals per day.
Extending Project Roomkey services will allow for individuals currently sheltered at Motel 6 and Orange Show to implement their transition plans and work toward transitioning to long-term housing. This program will continue to be evaluated monthly, based on billing and usage data, to determine the reduction or cessation of the program. The contracts may be terminated earlier should the need for isolation capacity decline prior to the end of the contract in June 2024 or by either party, upon 14 days’ written notice.
On March 28, 2023 (Item No. 21), the Board approved the Homeless Initiatives Spending Plan (Plan) which allocated approximately $72.7 million in federal, state, and Discretionary General Fund resources towards six initiatives aimed at addressing homelessness. The Plan designated $3.8 million in ARPA and $600,000 in HHAP funds for the continuation of services provided under Project Roomkey, including laundry and security services. The laundry and security services' contracts will not require Board approval as they are within Purchasing’s authority to execute.
On November 17, 2020 (Item No. 47), the Board of Supervisors (Board) approved Contract No. 20-1142 with Woody’s to provide meals to County residents in emergency, non-congregate shelter due to the COVID-19 pandemic as part of Project Roomkey, in an amount not to exceed $650,000, for the period of July 6, 2020 through December 30, 2020.
On January 26, 2021 (Item No. 69), the Board ratified the approval of Contract No. 21-122 with Motel 6 in an amount not to exceed $165,000, for the period of January 1, 2021 through March 31, 2021, and Contract No. 21-123 with Orange Show in an amount not to exceed $290,000 for the period of January 1, 2023 through March 31, 2021, to provide non-congregate rooms for isolation capacity. This item also approved Amendment No. 1, effective January 1, 2021, to Contract No. 20-1142 with Woody’s, increasing the contract amount by $150,000, from $650,000 to an amount not to exceed $800,000, and extending the contract an additional three months through March 31, 2021.
On March 23, 2021 (Item No. 38), the Board approved Amendment No. 1, effective April 1, 2021, to Contract No. 21-122 with Motel 6 increasing the total contract amount by $486,855, from $165,000 to an amount not to exceed $651,855, and extending the contract an additional six months through September 30, 2021, and Amendment No. 1, effective April 1, 2021, to Contract No. 21-123 with Orange Show, updating the contract terms, increasing the total contract amount by $569,488, from $290,000 to and amount not to exceed $859,488, and extending the contract period from March 31, 2021 through September 30, 2021.
On March 23, 2021 (Item No. 39), the Board approved Amendment No. 2, effective April 1, 2021, to Contract No. 20-1142 with Woody’s, increasing the contract amount by $300,000, from $800,000 to an amount not to exceed $1,100,000, and extending the contract an additional six months through September 30, 2021.
On September 14, 2021 (Item No. 17), the Board approved Amendment No. 2, effective October 1, 2021, to Contract No. 21-122 with Motel 6, increasing the contract amount by $511,685, from $651,855 to an amount not to exceed $1,163,540, and extending the contract an additional nine months through June 30, 2022, Amendment No. 2, effective October 1, 2021, to Contract No. 21-123 with Orange Show updating the contract terms, increasing the total contract amount by $927,714, from $859,488 to a total amount not to exceed $1,787,202, and extending the contract period from September 30, 2021, for the total contract period of January 1, 2021 through June 30, 2022. This item also approved Amendment No. 3, effective October 1, 2021, to Contract No. 20-1142 with Woody’s, updating the contract terms, increasing the contract amount by $197,366, from $1,100,000 to an amount not to exceed $1,297,366, and extending the contract period an additional nine months through June 30, 2022.
On April 12, 2022 (Item No. 14), the Board approved Amendment No. 3, effective April 12, 2022, to Contract No. 21-123 with Orange Show, increasing the contract amount by $407,718, from $1,787,202 to an amount not to exceed $2,194,920, and extending the contract period from June 30, 2022, for the total contract period of January 1, 2021 through June 30, 2023.
On April 26, 2022 (Item No. 24), the Board approved Amendment No. 3, effective July 1, 2022, to Contract No. 21-122 with Motel 6, updating the contract terms, increasing the contract amount by $990,000, from $1,163,540 to an amount not to exceed $2,153,540, and extending the contract one year for the total contract period of January 1, 2021 through June 30, 2023, and Amendment No. 4, effective July 1, 2022, to Contract No. 20-1142 with Woody’s, updating the contract terms, increasing the contract amount by $650,000, from $1,297,366 to an amount not to exceed $1,947,366, and extending the contract one year for the total contract period of July 6, 2020 through June 30, 2023.
On September 13, 2022 (Item No. 22), the Board approved Amendment No. 4, effective September 13, 2022, to Contract No. 21-123 with Orange Show, increasing the contract amount by $851,000, from $2,194,920 to an amount not to exceed $3,045,920.
Amendment of these contracts to increase and extend for an additional year will allow the County to support the transition of Project Roomkey participants to long term housing.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on May 19, 2023; Finance (Christopher Lange, Administrative Analyst, 386-8393) on May 25, 2023; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0238) on May 30, 2023.