AGENDA TITLE:
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Receive a Presentation on Partnership with San Joaquin County and Present Option to Consider Adopting a Resolution Repealing Resolution 2023-204, to Cancel Request for Proposal for the Access Center and Emergency Shelter Operations as Presented on September 6, 2023, Due to Redefined Scope and Develop a New Request for Proposals (CD)end
MEETING DATE:
June 18, 2025
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION:
Receive a presentation on partnership with San Joaquin County and present option to consider repealing Resolution 2023-204, to cancel Request for Proposal for the Access Center and Emergency Shelter operations as presented on September 6, 2023 due to redefined scope and develop a new Request for Proposal.
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BACKGROUND INFORMATION:
On September 6, 2023, City Council Awarded the Request for Proposals (RFP) for operating the permanent Lodi Access Center and Emergency Shelter (“Access Center”) with 100 beds to The Salvation Army, Lodi Corps.
In late 2024 San Joaquin County (SJC) and SJ Health and Staff began discussing a partnership opportunity for the Access Center that would build on the successful partnership being developed with the rehabilitation of 22 South Main Street for transitional housing. SJC and SJ Health are proposing to use approximately 28% (6,335+square feet) of the Access Center for a public lobby, restrooms, new health center and behavioral health beds aimed at addressing needs of the general community and shelter-based healthcare needs at the Lodi Access Center. These additions to the Access Center would deliver comprehensive, wraparound care that supports vulnerable populations, enhances patient stabilization, and bridges the gap between crisis care and long-term recovery or housing solutions. Attachment 1shows the proposed floor plan for the Access Center that would incorporate these services. SJC and SJ Health presented this opportunity to the County Board of Supervisors on May 13, 2025, and while there was no motion, the Board was supportive of continuing to move the proposal forward.
Key components of the proposal include:
• Clinic Services:
o Open to the general community.
o Tailored services for patients from the Access center and onsite sobering center
o Clinic staff will include:
§ Extended nursing team
§ Social services personnel providing medical case management and housing support
• Integrated Behavioral Health:
o Clinic staff will work in close coordination with Behavioral Health Services (BHS).
o Focus on stabilizing patients and transitioning them to lower levels of intervention and care.
Anticipated Bed Count:
• Mental Health Quiet Ward (16)
• Isolation Bed (1)
• Sobering Center (4)
• Mental Health Respite (4)
• Emergency Shelter (60-80) (City)
Main Street Transitional Housing:
• 40 units
• Intent to enter lease agreement between SJC and City of Lodi for SJC Behavioral Health to operate the facility at their cost.
o Draft lease agreement being drafted and reviewed by staff including legal staff.
o Will be brought to City Council and Board of Supervisors at a near future date for approval.
If the City Council approves the inclusion of the additional County services for the Access Center, a new RFP should be developed that accounts for the reduced initial bed count of 60 to 80 beds with a per additional bed cost, acknowledging the flex bed capacity of up to 208 and operations proposed with the SJC and SJ Health partnership, and requires proposed operators to demonstrate a financial model that reduces the overall financial impact of operations. Some potential options could include, but are not limited to, providing medical respite beds as a partial offset through drawdown of other funds. Additionally, proposers can identify donations/grant(s)/foundations/philanthropy resources as applicable or provide a like model acceptable by the City to offset costs of operations.
Staff anticipates following the below procurement process should a new request for proposals be authorized.
• Develop RFP
• Release RFP to known potential operators, newspaper public notice, City website, and Continuum of Care contact list
• Evaluation Committee will be created to review, score, and provide recommendation for award
• Once received, RFP’s will be evaluated by Evaluation Committee and top 3 selected
• Interviews will be scheduled with top 3 proposals
o If 3 proposals or less are received, as long as all eligibility criteria is met, interviews will be scheduled with all proposers
• Evaluation Committee will determine final recommendation to bring to City Council
• Evaluation Committee recommendation will be presented to City Council to request award of RFP
Access Center Operational Costs and Funding
The Salvation Army’s 2023 proposal estimated the cost of operations annually for 100 beds at $2,774,078 (includes some start-up costs) with an anticipated 3% increase annually. Since awarding the RFP, Staff has been working diligently in collaboration with the City’s contracted grant writers to apply for all available grants to sustain operational funding of the Access Center. While there have been some small awards achieved, the funds are not sufficient to maintain operations at a cost of $2.8 million annually. Additionally, grants available for shelter operations have reduced significantly over the past several years and Staff anticipates this trend continuing.
Beyond the successful award of the construction bid for the Access Center, City Council set aside approximately $2.8 million of American Rescue Plan Act (ARPA) funds for up to one (1) year of operations through 2026 for the permanent facility. Should City Council agree with staff’s recommendation on the re-issuance of the RFP, these funds must still be utilized towards the Access Center project prior to the expenditure deadline of December 31, 2026. This is due to the requirement by the U.S. Department of the Treasury for State and Local Fiscal Recovery Funds to fully obligate funds by December 31, 2024 and the City obligating these funds for the Access Center. Any remaining funds not allocated to operations, would be used as necessary for the successful completion of the Access Center and Workforce Education Center capital improvements and will be brought back to City Council for final consideration. Staff continues to research all viable options to identify a more fiscally feasible approach to operating the Access Center long term.
Staff requests City Council receive a presentation on partnership with San Joaquin County and consider repealing Resolution 2023-204 to cancel Request for Proposal for the Access Center and Emergency Shelter operations as presented on September 6, 2023, due to redefined scope and develop a new Request for Proposal.
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
Current RFP status has an impact of approximately $2.8 million of ARPA funds. If approved to release a new RFP at a future City Council Meeting, cost implications are currently unknown, however a cost reduction is anticipated due to reduction in scope and the RFP will require proposals to include any identified cost offsets. Any cost savings of ARPA funds towards operating will have to remain allocated to the Access Center project as obligated (operations/capital improvements) on the December 31, 2024 quarterly ARPA report and reporting requirements provided by the U.S. Department of the Treasury for State and Local Fiscal Recovery funds AKA ARPA funds and must be fully expended by December 31, 2026.
FUNDING AVAILABLE:
APRA-22001.Contracts through 2026. Grant resources outside of ARPA funds may provide operational support into the first quarter of 2027. Sustained future funding availability unknown at this time.