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Home My WebLink AboutItem 11i - Homeless Case Management/Housing Navigation Services PSA Extension DATE: April 15, 2025 TO: Honorable Mayor and City Council FROM: Sara Somogyi, Director of Recreation and Community Services By: Ashley Marston, Management Analyst SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE FOR HOMELESS CASE MANAGEMENT/HOUSING NAVIGATION SERVICES IN AN AMOUNT NOT TO EXCEED $280,035 CEQA: Not a Project Recommendation: Approve SUMMARY On June 21, 2022, the City Council approved a Professional Services Agreement with Los Angeles Centers for Alcohol and Drug Abuse (“LACADA”) for Homeless Case Management/Housing Navigation Services in an amount not to exceed $218,400. The Agreement was for one year, with the option to renew on a year-by-year basis for a maximum of three additional years, at the City’s sole discretion. One extension remains for Fiscal Year 2025-26, in which LACADA has submitted a revised cost proposal of $280,035. It is recommended the City Council authorize and direct the City Manager to execute an extension to the Professional Services Agreement with LACADA for Case Management/Housing Navigation Services in an amount not to exceed $280,035. BACKGROUND On March 15, 2022, the City Council approved a recommendation to utilize Permanent Local Housing Allocation (“PLHA”) funds to secure three, full-time Case Managers/Housing Navigators for Arcadia, as well as an additional $100,000 of PLHA funds for Homeless Emergency Services. PLHA is a Senate Bill 2 funded program that is designed to provide an ongoing, annual source of funding through State Property Transfer Fees. While considered a permanent funding source, revenue will vary year-to-year, as it is dependent on real estate transactions. Funds can be used for the construction of affordable housing, programs to assist persons who are experiencing or at risk of Extension to the PSA for Homeless Case Management/Housing Navigation Services April 15, 2025 Page 2 of 4 homelessness, or other housing-related assistance programs for low-to-moderate income households. At the same meeting, the City Council also approved a recommendation to utilize $250,000 of American Rescue Plan Act (“ARPA”) funds for the Prevention & Diversion program. ARPA is a federal program that has provided $8.8 million to the City of Arcadia to address the economic fallout from the COVID-19 pandemic. Prevention & Diversion funds help individuals and families make ends meet, keep a roof over their heads, and maintain essential services. Services include short-term rental assistance, utility assistance, security deposit payment, and more. On April 1, 2025, Measure A, a ½ cent, Countywide sales tax, went into effect. Measure A repealed and replaced the existing Measure H, ¼ cent sales tax. Both Measures have similar goals: to address the Los Angeles County homelessness crisis. Measure A funds can be expended on homeless services, prevention efforts, interim and permanent housing, as well as affordable housing. Measure A, a permanent funding source, will provide Arcadia with a varying annual allocation to support new and existing homeless services. On June 21, 2022, the City Council approved a Professional Services Agreement for Homeless Case Management/Housing Navigation Services with LACADA, in an amount not to exceed $218,400. This contract was for one year with the option to renew annually, for a maximum of three years. This Agreement has been renewed twice, and one renewal remains. Below are the Case Management/Housing Navigation costs for previous fiscal years. Fiscal Years Cost of Case Management/ Housing Navigation Services FY 2022-23 $215,456 FY 2023-24 $253,856 FY 2024-25 $266,700 DISCUSSION Since July 5, 2022, LACADA’s three, full-time Case Managers have served the Arcadia community, assisting individuals experiencing homelessness and those at risk of becoming homeless. In that time, they collected and reported data efficiently, provided supportive services such as connecting clients to benefit programs, and placed individuals in both interim and permanent housing. On the next page is a cumulative report highlighting LACADA’s efforts from July 2022 through February 2025. Extension to the PSA for Homeless Case Management/Housing Navigation Services April 15, 2025 Page 3 of 4 Case Management/ Housing Navigation Services Units or Hours of Service Street Outreach Hours 10,241 Office Work Hours 4,944 Total Engagements (not individual persons) 7,634 Housing Plans Established 1,555 Items Distributed 2,471 Connections to Supportive Services 7,635 Interim Housing Placements 324 Permanent Housing Placements 50 In addition to this data, LACADA also submits monthly success stories of how their team has assisted people experiencing homelessness. These narratives include both small and large examples of an individual’s progress on the road to becoming housed. Some successes include acquiring identification documents, finding employment, entering a substance use program, and reunification with family members. Data from the 2024 Homeless Census also supports LACADA’s positive impact with Arcadia’s unhoused community. When individuals were asked if they were working with a Case Manager, a plurality of over 40% said they were being assisted by Arcadia’s LACADA team. The next highest provider, Los Angeles Homeless Services Authority (“LAHSA”), only accounted for 10.6%. This large variance highlights the importance of Arcadia having its own case management team and that we cannot rely solely on regional efforts. Without Arcadia’s case management team, there would be a significant gap in service to the local homeless population, most likely resulting in less housing placements and more individuals on the street. Based on the performance of the case management team, it is recommended that the agreement be extended. The proposed extension to the Professional Services Agreement is for a period of one year, beginning on July 1, 2025. The total contract for Case Management/Housing Navigation Services in FY 2025-26 will not exceed $280,035. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT For FY 2025-26, LACADA has submitted a revised cost proposal of $280,035. This is a 5% increase from FY 2024-25. Previously, PLHA funding was sufficient to cover the Case Management/Housing Navigation contract in its entirety, as well as the Emergency Extension to the PSA for Homeless Case Management/Housing Navigation Services April 15, 2025 Page 4 of 4 Services program. However, PLHA funding has experienced significant changes from previous years due to a decrease in real estate transactions since 2022. Arcadia’s PLHA allocation for FY 2025-26 is $166,890, which will be added to the previous years’ funding balance. The total estimated PLHA funding available for FY 2025-26 is $205,000, which is not sufficient to cover the proposed Case Management/Housing Navigation contract in its entirety, nor the Emergency Services program. To bridge the funding gap, it is recommended that Case Management/Housing Navigation costs not covered by PLHA funds be covered by Measure A funds. Arcadia’s estimated allocation for FY2025-26 is $222,000. These Measure A funds are sufficient to cover the balance of the proposed contract. Remaining Measure A funds will be utilized to support other eligible homeless services programs, to be determined at a later date. Additionally, it is recommended that the Emergency Services program be funded by ARPA Prevention & Diversion funds. Due to the introduction of a parallel program in 2024, provided by the San Gabriel Valley Council of Governments through Measure H funds, Arcadia has not utilized most of the $250,000 ARPA funds allocated to the Prevention & Diversion program. The remaining balance of these ARPA funds is just over $191,000, which is enough to financially support both programs. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute an extension to the Professional Services Agreement with Los Angeles Centers for Alcohol and Drug Abuse for Homeless Case Management/Housing Navigation Services in an amount not to exceed $280,035. Attachment “A”: Amendment to Professional Services Agreement Regarding Case Management and Housing Navigation Services & Exhibit “A” Attachment “B”: Executed Professional Services Agreement Regarding Case Management and Housing Navigation Services CITY OF ARCADIA AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT REGARDING Case Management/Housing Navigations Services This Amendment is made and entered into as of ______ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066, and Los Angeles Centers for Alcohol and Drug Abuse, a California non-profit public benefit corporation with its principal place of business at 12070 Telegraph Road Suite 207 Santa Fe Springs, CA 90670, collectively referred to as "Parties", with respect to the Professional Services Agreement between the Parties dated July 5, 2022 ("Agreement") and the Amendments dated June 26, 2023 and May 22, 2024. The Parties agree as follows: 1.Section 5 of the Agreement is amended by extending the Term from July 1, 2025, through June 30, 2026 ("Extended Term"). 2.Section 2 of the Agreement is amended to provide that for the Extended Term, the Compensation, is amended as referenced in the attached Exhibit "A". 3.All terms and provisions of the Agreement not amended by this Amendment are hereby reaffirmed. IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above. CITY OF ARCADIA By:=------,-,........,....------Dominic Lazzaretto City Manager Dated: ---------- ATTEST: City Clerk APPROVED AS TO FORM: Mike Maurer City Attorney LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE By:---------Juan Navarro Executive Director Dated: ____________ _ By:...,....,...-�----,------Liana Sanchez Director of Program Services Attachment "A" Exhibit"A" FY 2025-26 Case Management/Housing Navigation Services Contract Pricing Update Los Angeles Centers for Alcohol and Drug Abuse proposes a 5% increase to the FY 2025-26 contract for Case Management/Housing Navigation Services for a total price of $280,035. Fiscal Vear Price FY 2024-25 $266,700 FY 2025-26 $280,035 Increase Percentage - 5% Los Angeles Centers for Alcohol and Drug Abuse {LACADA) Attachment "B"