AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute Lease Agreement in a Form Acceptable by the City Attorney for 22 S Main Street Transitional Housing and Accept and Appropriate FY26 Lease Agreement Payments ($27,000) and Execute Infrastructure Agreement in a Form Acceptable by the City Attorney for Behavioral Health Spaces within 710 N. Sacramento Street and Accept and Appropriate ($575,910) for Infrastructure Costs (CD)end
MEETING DATE:
August 20, 2025
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute Lease Agreement in a form acceptable by the City Attorney for 22 S Main Street Transitional Housing and accept and appropriate FY26 Lease Agreement payments ($27,000) and execute Infrastructure Agreement in a form acceptable by the City Attorney for Behavioral Health spaces within 710 N. Sacramento Street and accept and appropriate ($575,910) for Infrastructure Costs.
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BACKGROUND INFORMATION:
In late 2024, the City of Lodi began collaborating with San Joaquin County (SJC) to explore an expanded partnership to support the region’s most vulnerable populations through transitional housing and behavioral health stabilization services. This partnership represents a strategic realignment of resources to better address homelessness, mental health crises, and housing insecurity.
As part of this effort, the County has proposed to:
• Operate a 40-unit transitional housing facility at 22 South Main Street and 4 bedroom Single Family Home, and
• Implement behavioral health services within the Lodi Access Center, including a mental health quiet ward and behavioral health respite beds.
The City and County have been working toward finalizing a lease agreement for the transitional housing site, which would allow San Joaquin County Behavioral Health to operate the facility at their own cost. Staff is requesting Council approval to move forward with this partnership.
Concurrently, San Joaquin County has identified approximately 6,335 square feet-roughly 28% of the Access Center, to be designated for a clinic and behavioral health services, including a mental health quiet ward and behavioral health respite beds. While discussions with SJ Health regarding the clinic are ongoing, the County is prepared to move forward with the behavioral health and transitional housing components at this time due to project timelines and immediate service needs.
Proposed Service Components:
1. Transitional Housing - 22 South Main Street (40 Units):
• To be operated by San Joaquin County Behavioral Health under a lease agreement with the City.
• Intended for individuals transitioning from homelessness into longer-term housing.
• Offers a structured, supportive environment that promotes stability, case management, and reintegration.
• Council approval is requested to finalize and authorize this lease agreement.
2. Mental Health Quiet Ward and Behavioral Health Respite Beds (12)
• A designated low-stimulation environment for individuals in acute mental health crisis.
• Provides short-term stabilization and assessment in a safe setting.
• Reduces reliance on emergency rooms and law enforcement interventions.
• Short-term recovery beds for individuals who do not require hospitalization but need stabilization before returning to shelter or housing.
• Supports continuity of care and reduces hospital discharge to street outcomes.
• Offers a safe space for recuperation and care coordination for Behavioral Health Clients.
COMMUNITY BENEFITS:
This proposed partnership aligns with regional and local efforts to address homelessness and behavioral health in a more integrated, outcomes-driven manner. Key benefits to the Lodi community include:
• Improved Stabilization and Recovery: Residents will have access to structured environments that support recovery from mental health crises and housing instability.
• Reduction in Emergency Response Costs: Redirecting individuals away from emergency rooms, jails, and shelters into appropriate care reduces pressure on public safety and healthcare systems.
• Pathways to Permanent Housing: Transitional housing supports individualized case plans that move participants from instability to long-term housing and employment.
• Stronger Regional Collaboration: By working closely with the County, the City ensures shared responsibility and maximizes existing public health and housing resources.
• Enhanced Public Safety and Livability: Behavioral health services help reduce the number of visible crises in the community and offer timely intervention to those in need.
Attachments:
1. DRAFT - 22 S Main Street Transitional Housing Lease Agreement
2. DRAFT - 710 N Sacramento Street Behavioral Health Beds Infrastructure Agreement
3. 308 CIP HPSJ-23001 CIP Form
4. 172 CIP ARPA-22001 CIP Form
5. Resolution
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
The proposed agreements with San Joaquin County Behavioral Health will result in the City of Lodi receiving a total of $602,910 in FY26.These funds will be accepted and appropriated as follows:
• Behavioral Health Infrastructure Funding: The County will provide $575,910 to cover infrastructure costs related to the development of behavioral health spaces-including a mental health quiet ward and respite beds, within the Lodi Access Center located at 710 N. Sacramento Street. These funds will be used for tenant improvements and necessary facility upgrades.
• Transitional Housing Lease Payments: The City will receive $27,000 in lease payments from the County for the use of 22 S. Main Street as a 40-unit transitional housing facility. Payments will be made at a rate of $3,000 per month, covering the lease period from October 2025 through June 2026.
Funding will be accepted and appropriated as part of this resolution, and future-year budgets will incorporate ongoing lease revenues as applicable
FUNDING AVAILABLE:
$575,910 - Revenue: 35500000.56007
Expenditures: ARPA-22001.Contracts.SJBHS(New)
$27,000 - Revenue: 35500000.56007
Expenditures: HPSJ-23001.Contracts.SJBHS (New)