AGENDA TITLE:
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Lodi Access Center and Emergency Shelter Quarterly Operations, Construction, and Funding Update (CD)
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MEETING DATE:
September 16, 2026
PREPARED BY:
Cynthia Marsh, Deputy Director / City Planner
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RECOMMENDED ACTION:
Receive and file the quarterly update regarding temporary Access Center operations, permanent Access Center construction, service outcomes, and operating-funding activities; and provide feedback regarding potential strategies to support the Access Center’s long-term financial sustainability.
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BACKGROUND INFORMATION:
The temporary Lodi Access Center and Emergency Shelter opened on July 22, 2022, as the initial phase of the City’s homelessness response at 710 North Sacramento Street. The temporary facility currently operates from a tent-based structure on the same property where the permanent Access Center is under construction. Outreach Ministries International, Inc. (OMI) assumed operation of the temporary facility on November 1, 2024.
PROJECT DEVELOPMENT, COMMUNITY ENGAGEMENT, AND CITY COUNCIL DIRECTION:
The Access Center developed from more than a decade of public discussion, community participation, regional coordination, and policy and funding actions taken by the City Council. In April and May 2015, the City convened two Homeless Summits at the Lodi Grape Festival to obtain input from service providers, community organizations, businesses, advocates, and other interested parties. The City Council also authorized the Homeless Solutions Committee, composed of community stakeholders and City representatives, to study homelessness in Lodi and develop recommendations.
On September 16, 2015, the City Council adopted the resulting Report on Homelessness in Lodi. The report recommended coordinated short- and long-term strategies intended to balance assistance and services for individuals experiencing homelessness with the protection of public health and safety. The Committee subsequently provided a public progress report to the City Council in March 2017 addressing housing, employment, supportive services, public facilities, and regional coordination.
The City continued its public and regional planning efforts through a joint meeting with the San Joaquin County Board of Supervisors in 2017, homelessness town halls in 2018 and 2019, participation in the San Joaquin Continuum of Care, and related grant and program actions. On November 4, 2020, the City Council adopted Resolution No. 2020-257 supporting the San Joaquin Community Response to Homelessness-2020 San Joaquin Strategic Plan, which established regional goals and implementation strategies for addressing homelessness.
In 2021, the City conducted an extensive community-engagement process regarding development and location of an Access Center, including public information, outreach, and opportunities for community input from May through September. Following that process and evaluation of potential locations, the City Council approved 710 North Sacramento Street as the location of the permanent Access Center and Emergency Shelter on October 6, 2021, through Resolution No. 2021-273.
Because development of the permanent facility was expected to require additional time, the City Council subsequently authorized implementation of a temporary low-barrier emergency shelter at the same property. On April 20, 2022, the City Council authorized agreements for shelter operations, meals, and laundry services using Permanent Local Housing Allocation grant funds, with no General Fund impact. The temporary Access Center opened on July 22, 2022.
The Lodi Committee on Homelessness (LCOH) continues to serve as a community forum for service providers, businesses, community organizations, interested residents, and public agencies to share information and coordinate homelessness-response activities. Subsequent property acquisition, construction, operating, partnership, and funding actions for the Access Center have been presented to the City Council for consideration and authorization as the project has progressed.
The Access Center operates as a low-barrier shelter. Under this model, individuals are not denied access solely because of mental illness, substance use disorder, pets, partners, or personal possessions, provided they satisfy applicable eligibility, safety, and conduct requirements. The facility combines overnight shelter and day-use services with outreach, case management, housing navigation, transportation, employment assistance, and connections to medical, behavioral health, substance use treatment, and other supportive services. The purpose is to provide an accessible point of entry from unsheltered homelessness to shelter, services, treatment, employment, and permanent housing.
The Access Center has been developed and operated through a coordinated combination of restricted federal, State, and County grants and partner contributions. To date, no General Fund dollars have been used for property acquisition, temporary or permanent facility construction, or shelter operations. This report summarizes temporary facility activity from May 1 through July 31, 2026, permanent facility construction, operating arrangements, and current funding activities.
QUARTERLY UPDATE - MAY 1 THROUGH JULY 31, 2026:
During the three-month reporting period, OMI reported providing overnight shelter services to 130 clients and day-use services to 316 clients. Reported outcomes included 29 transitions to housing, 11 transitions to treatment or sobriety programs, and 19 employment placements. The following data are based on OMI’s program and case-management records.
Shelter Utilization
Overnight shelter services included:
• 3,563 overnight stays provided to 130 clients;
• 52 new clients enrolled in overnight and day-use services; and
• 31 returning clients re-enrolled in overnight and day-use services.
Day-use services included:
• 6,800 day-use visits provided to 316 clients;
• 118 new clients enrolled in day-use services; and
• 58 returning clients re-enrolled in day-use services.
Meals, Hygiene, and Supportive Services
During the reporting period, OMI provided:
• 3,082 breakfasts to 254 clients;
• 3,952 lunches to 275 clients;
• 4,217 showers to 187 clients;
• 286 case-management service contacts; and
• 308 street and shelter outreach service contacts.
Housing, Employment, and Treatment Outcomes
OMI reported the following outcomes:
• 17 overnight shelter clients and 12 day-use clients transitioned to housing, for a total of 29 housing transitions;
• 19 clients obtained employment;
• Five overnight shelter clients and six day-use clients transitioned to treatment or sobriety programs, for a total of 11 transitions; and
• 26 individuals enrolled in housing-sustainability and tenancy-support services after transitioning to housing or a residential program.
Transportation Assistance
OMI provided 298 transports to 83 clients. Of these, 22 transports addressed non-emergency medical needs and were intended to connect clients with appropriate care without reliance on emergency-response services.
Voluntary Participant Activities
Thirty-nine clients voluntarily assisted with shelter activities on 176 occasions. Activities included cleaning, meal service, organization, beautification, and peer support.
Regional Context
The 2026 Point-in-Time Count identified 248 individuals experiencing homelessness in Lodi, compared with 416 in 2024-a decrease of 168 individuals, or 40 percent. The number of unsheltered individuals decreased by 129, from 262 to 133 (49 percent), while the number of sheltered individuals decreased by 39, from 154 to 115 (25 percent). Countywide, unsheltered homelessness decreased by 47 percent, while sheltered homelessness increased by 16 percent over the same period. During this period, the City opened its temporary Access Center, expanding local access to shelter, case management, and housing-navigation services. Although the reduction cannot be attributed to any single program, the Access Center is an important component of Lodi’s coordinated response to homelessness
Permanent facility construction and partnerships:
Construction of the permanent Lodi Access Center and Emergency Shelter continued during the reporting period, with completion anticipated in late 2026. Recent work included insulation and drywall installation; framing and buildout of the restrooms, kitchen, lobby, and office areas; and installation of mechanical, electrical, plumbing, and fire-sprinkler systems. Improvements within the secured courtyard also continued, including covered patio areas, mechanical screening, and fencing to support outdoor programming and site security.
Staff continues to coordinate with the contractor, architect, consultants, and partner agencies to monitor the construction schedule, address project issues, and integrate the health, behavioral health, and supportive-service areas within the facility. Staff will continue to report material changes to the project schedule, budget, or funding to the City Council.
The permanent Access Center is being developed as a coordinated service location rather than solely as an overnight shelter. In addition to emergency shelter, day-use, outreach, case-management, housing-navigation, and employment services, the facility will include space for onsite health and behavioral health services and workforce-development programming.
Under agreements previously approved by the City Council, San Joaquin County is funding improvements associated with 12 transitional respite beds for individuals experiencing or at risk of homelessness who also have qualifying behavioral health needs. The beds will be operated in coordination with San Joaquin County Behavioral Health Services and other authorized service partners.
Separately, SJ Health is anticipated to operate an onsite community clinic within leased space at the Access Center. The clinic will provide medical and related health services, and the lease provides for monthly payments to the City of $3,500 beginning in Fiscal Year 2027.
The facility will also include workforce-development space intended for programming coordinated by the City, OMI, community-based organizations, employers, and other partners. Services are anticipated to include employment readiness, job-search assistance, life-skills development, vocational and educational referrals, and connections with local employers.
ANTICIPATED EFFECTS ON CITY AND EMERGENCY SERVICES:
The co-location of health, behavioral health, shelter, and navigation services is intended to reduce reliance on emergency-response systems for needs that can be appropriately addressed through scheduled, non-emergency, or onsite services. Currently, individuals experiencing homelessness who require medical evaluation may need to be transported to facilities outside Lodi, including San Joaquin General Hospital in French Camp, approximately 22 miles from the Access Center. Such responses can require substantial travel and staff time and may temporarily reduce the availability of emergency-response resources within the City.
The onsite SJ Health clinic is expected to improve access to routine and preventive healthcare and provide an alternative point of connection for appropriate non-emergency medical needs. The clinic will not replace hospital emergency services, but it may reduce avoidable emergency-department use and associated demands on Police, Fire, and emergency medical resources.
OMI’s outreach and transportation services are similarly intended to connect individuals voluntarily with shelter, medical care, treatment, and other services before a situation requires an emergency response. The outreach and transportation activities summarized earlier in this report support this proactive service model.
Shelter placement, proactive outreach, and transitions to housing may also reduce demands on City departments associated with welfare checks, calls for service, encampment response, illegal dumping, and cleanup of streets and public property. The service data presented in this report do not capture the associated operational benefits to Police, Fire, and Public Works.
Operating agreement and cost controls
Following a competitive selection process, the City selected OMI to operate the permanent Access Center and Emergency Shelter. Staff subsequently negotiated an agreement establishing a first-year operating cost not to exceed $1,620,000 for a 60-bed facility. The negotiated amount is lower than OMI’s initially proposed first-year operating budget and reflects adjustments to staffing, service delivery, and operating expenses developed through contract negotiations. For planning purposes, the “first year of operations” means the initial 12-month period beginning when the permanent Access Center becomes operational. Construction is currently anticipated to be completed in late 2026; however, the commencement date remains subject to construction progress, facility readiness, required approvals, and other unforeseen circumstances.
The agreement requires OMI to operate the facility 24 hours per day, seven days per week and provide the shelter, day-use, outreach, case-management, housing-navigation, workforce-development, transportation, and supportive services specified in the scope of work. OMI must also coordinate with onsite and community partners, participate in the Homeless Management Information System (HMIS), track program outcomes, and submit monthly performance reports to the City.
The agreement includes several provisions intended to maintain fiscal and operational accountability. OMI must submit monthly invoices with supporting documentation, and the City retains the right to review and audit charges and program records. Work outside the approved scope and additional reimbursable costs require advance written approval by the City. OMI must also coordinate billing and service delivery with onsite healthcare and behavioral health partners to avoid duplication of services or reimbursement.
OMI has agreed to pursue charitable donations, grants, community partnerships, donated goods, volunteer assistance, and other eligible resources to offset operating costs. Monetary donations used for Access Center operations must be reported to the City quarterly, including the amount received and a general description of how the funds were used. OMI recently conducted a community fundraiser in August 2026 and intends to continue fundraising and grant-seeking activities to help address future operating needs.
The agreement extends through October 31, 2031; however, the City’s financial obligation is contingent upon the continued availability of funding and financial resources. If available funding becomes insufficient, the City may reduce the scope of services to remain within available resources or terminate the agreement in accordance with its terms.
Funding status and long-term sustainability
Acquisition of the Access Center property, development and operation of the temporary facility, construction of the permanent facility, and funding budgeted for the first year of permanent-facility operations have been supported through restricted federal, State, and County funding sources. These sources include Community Project Funding (CPF), State and Local Fiscal Recovery Funds/ARPA, multiple rounds of Homeless Housing, Assistance and Prevention (HHAP) funding, Permanent Local Housing Allocation (PLHA) funds, CalAIM-related resources, Community Development Block Grant (CDBG) funds, County ARPA funding, and other restricted grants and partner contributions. To date, no General Fund dollars have been used for property acquisition, temporary or permanent facility construction, or shelter operations.
Approximately $1.62 million has been budgeted from non-General Fund sources for the first year of permanent-facility operations. The first-year funding plan includes Homeless Housing, Assistance and Prevention (HHAP) Rounds 4 and 5 funding administered through the San Joaquin County Continuum of Care (CoC), Permanent Local Housing Allocation (PLHA) funds, and the remaining American Rescue Plan Act/State and Local Fiscal Recovery Funds (ARPA/SLFRF). No City General Fund monies are included. Each funding source must be used in accordance with its eligible-use requirements, expenditure deadlines, performance obligations, and reporting requirements.
Because the property and facility improvements have been financed through multiple restricted grants and governmental contributions, the City does not have unrestricted discretion to discontinue the required use, sell the property, or transfer the facility without first addressing the applicable grant agreements, leases, deed restrictions, and funding conditions. These requirements vary by funding source but generally require the property to continue operating as a low-barrier navigation center and emergency shelter, or to provide specified homelessness, behavioral health, and supportive services, for defined compliance periods.
Certain County-funded improvements are also subject to long-term contractual and recorded property restrictions. For example, the agreement supporting 12 transitional respite beds requires the designated space to remain available for eligible behavioral health bridge-housing services through September 30, 2045. Failure to maintain required uses could result in repayment obligations or require an alternative use acceptable to the funding agency. County leases and other facility commitments may impose additional long-term obligations.
Accordingly, any future proposal to close the facility, sell or transfer the property, or assign operations to San Joaquin County or another entity would require a comprehensive review of each funding agreement and property restriction. Such an action could also require approval from one or more funding agencies, assumption of the City’s compliance obligations by an eligible successor, continuation of the required services, identification of an approved alternative use, or repayment of grant funds. A transfer of ownership or operations would not necessarily eliminate the underlying use restrictions or financial obligations.
The City’s long-term operating strategy is to use a diversified combination of federal, State, County, healthcare, philanthropic, and operator-generated resources rather than General Fund support. Potential sources include future HHAP allocations, PLHA, eligible CDBG activities, CalAIM and other healthcare reimbursements, County participation, private philanthropy, and OMI fundraising and donations. Availability of these sources beyond currently awarded or budgeted amounts is not guaranteed.
The City has applied for $5,821,200 through Encampment Resolution Fund (ERF) Round 5 for a three-year encampment-resolution strategy focused on the State Route 99/Turner Road-Mokelumne River corridor. If awarded the funding plan would allocate $3 million -- $1 million annually for three years -- to eligible Access Center operations and related services. The remaining funds would support coordinated outreach, interim and permanent housing placements, housing-focused case management, transportation, behavioral health connections, and the development of additional permanent housing opportunities. The application remains pending, and the requested funds are not considered secured unless and until the State issues an award.
Staff is also monitoring anticipated future HHAP opportunities administered through the San Joaquin County Continuum of Care and other public and private funding sources. OMI is independently pursuing grants, charitable contributions, community partnerships, donated resources, and fundraising proceeds to offset operating costs.
No General Fund appropriation is requested or contemplated as part of the current operating strategy. Future operations and service levels will be managed within available grant, partner, reimbursement, philanthropic, and operator-generated resources and in accordance with applicable funding restrictions. Staff will continue to pursue and coordinate eligible non-General Fund resources to support long-term operations.
FUTURE OF THE ACCESS CENTER
Staff is seeking Council feedback regarding strategies to support the Access Center’s long-term financial sustainability after currently identified operating funds are exhausted. This discussion concerns future funding and partnership opportunities and is not intended to reconsider the City’s existing commitments to complete and operate the facility.
Potential strategies include:
• Continuing to pursue federal, state, regional, and philanthropic grant funding, including the pending Encampment Resolution Fund application;
• Maximizing available HHAP, PLHA, and other eligible homelessness-response funding;
• Supporting OMI’s efforts to secure private donations, sponsorships, foundation funding, and other outside resources;
• Expanding financial and service-delivery partnerships with San Joaquin County, the Continuum of Care, healthcare providers, nonprofit organizations, and other agencies;
• Evaluating opportunities for eligible third-party reimbursement, including Medi-Cal and CalAIM funding;
• Exploring whether OMI could assume greater financial responsibility for future operations, consistent with the existing operating agreement, applicable funding restrictions, and the City’s ownership and contractual obligations;
• Identifying City funding, if needed, to address future operating costs not covered by outside resources, subject to Council appropriation; and
• Considering other funding or partnership strategies identified by the Council.
Staff will continue evaluating and pursuing available funding and partnership opportunities within existing authority and will seek Council approval when required for future agreements, appropriations, or other actions.
FISCAL IMPACT:
No General Fund appropriation is requested or contemplated as part of this update. Approximately $1.62 million has been budgeted from non-General Fund sources for the first year of permanent Access Center operations. Future operations and service levels will be managed within available grant, partner, reimbursement, philanthropic, and operator-generated resources.
FUNDING AVAILABLE:
Funding for the Access Center has been provided through restricted federal, State, and County grants and partner contributions, as described in this report. Additional funding applications and anticipated future funding opportunities are not considered available unless and until awarded.