City Manager Midori Lightward and Homeless Services Manager Virginia Kearney summarized nearly six years of work to establish a temporary emergency housing campus and asked the City Council for guidance on how to operate the site going forward.

The campus was conceived after the council adopted a strategic plan to end homelessness. Kearney told the council the full site includes site preparation (Phase 1), a planned 68‑bed congregate “sprung” structure (Phase 2), interim modular units that opened in November 2022 with about 48 beds (Phase 3) and custom container units that added about 38 beds in December 2023 (Phase 4). Midori Lightward said the sprung structure construction began in November 2024 and is scheduled to complete in 2025.

Why it matters: Council and staff framed the discussion as a policy decision. The city has been operating interim non‑congregate options to address an immediate need but must now decide whether to keep the interim units, modify them, partner with county agencies or seek a private operator. The decision affects who pays ongoing operating costs and what services—medical respite, behavioral‑health wraparounds or navigation center supports—will be available on site.

What staff proposed

Virginia Kearney presented four high‑level options:

- Option 1 — Revert to the original plan on completion of Phase 2: use City funding and existing shelter grants (HAP, Emergency Food & Shelter) to operate the 68‑bed congregate navigation center and remove the interim modular and container units. Kearney said this would be the original, city‑run temporary emergency housing facility model.

- Option 2 — Amend Phase 3 (modular units): terminate the current lease for the southern modulars, reduce campus footprint and look for funding/subsidies (CalAIM, Kaiser grant, Department of Health Care Services pass‑cited infrastructure grant) if the city keeps modular operations. Kearney noted the modular admin building currently provides congregate meal service and case manager access on site.

- Option 3 — Amend Phase 4 (container units) to partner with county Behavioral Health: invite San Joaquin County Behavioral Health to operate or fund services for some container beds to provide specialty services on‑site (intensive case management, substance‑use and psychiatric services, and rental/subsidy supports). Behavioral Health Director Genevieve Valentine told council her department has infrastructure dollars (a bridge‑housing grant) and the potential to reimburse for certain day‑rates and rental subsidies and estimated about $200,000 of infrastructure funds could support initial work on the containers. She said such a partnership would likely reduce the city’s net operating cost for those beds and allow on‑site wraparound care for higher‑need residents.

- Option 4 — Convert the whole campus to a private operator via an RFP: issue a request for proposals for a private operator to lease and run the entire site, with uncertain responses and no guarantee of an operator or of coverage of all operating costs.

Partnerships and reimbursement opportunities

Kearney and other staff outlined several possible funding and program partners: the Health Plan of San Joaquin (CalAIM community supports and enhanced case management / ECM), Department of Health Care Services infrastructure grants targeted to medical respite programs, Kaiser grant funding (Kaiser award ~ $95,000) for technical assistance and staffing for a medical‑respite model, and Medi‑Cal reimbursement through CalAIM for eligible services once the city builds billing infrastructure.

Behavioral Health’s pitch

Behavioral Health Director Genevieve Valentine told council her agency is prepared to embed staff and provide intensive specialty mental‑health services, substance‑use treatment and case management on site if the county can partner on Phase 4 containers. Valentine described potential on‑site psychiatric supports, mobile crisis, wraparound services that can be billed to Medi‑Cal via specialty mental health or drug/ODS funding streams, and an ability to subcontract or reimburse day‑rates for eligible beds. She said a county partnership could include rental subsidies and staff to reduce the city’s net operating cost, but that details would need negotiation and “the devil is in the details.”

Salvation Army operations and outcomes

The Salvation Army, the current shelter operator, reported the shelter averages an approximately 138‑day length of stay (about 5½ months), and in the last year has recorded 102 housing referrals with 46 positive housing outcomes. Captain Juan from Salvation Army described recent successful housing placements and noted the operator’s willingness to propose for future RFPs to run either congregate or non‑congregate models.

Council direction

After questions and discussion council members generally endorsed a hybrid path: continue Phase 2 construction (the sprung structure) and ask staff to further vet and negotiate partnerships and funding scenarios for Phases 3 and 4. Staff said they will return with more detailed cost estimates, draft RFP language if council wants private operator options, and proposed agreements or MOUs with county Behavioral Health and Health Plan of San Joaquin for CalAIM/community supports.

Quotes

"We would like council's input on how they would like us to proceed," City Manager Midori Lightward said as she opened the staff update.

"Medical respite is now embedded into shelter sites," Homeless Services Manager Virginia Kearney told council when describing CalAIM opportunities for nursing and recuperative care in shelter units.

"We would be able to provide rehab services and group services on‑site at the higher level of specialty mental‑health services," Genevieve Valentine, San Joaquin County Behavioral Health director, said of a proposed Phase 4 partnership.

Discussion, direction, decision (explicit)

- Discussion: council discussed options 1–4, program design, and financing and asked technical questions about Medi‑Cal billing, grant timelines and lease terms for modular units.

- Direction to staff (consensus note): staff was directed to proceed with completion of Phase 2 (the sprung structure) and to return with more detailed analyses and draft agreements for (a) a county Behavioral Health partnership focused on Phase 4 containers, and (b) pursuing CalAIM/Health Plan of San Joaquin community supports and pass‑cited infrastructure grant opportunities for a medical‑respite model in Phase 3. Staff also heard interest in pursuing an RFP to test private‑operator responses for the full site (Option 4) but was not directed to select that path immediately.

Ending note

Staff emphasized the city will need time to build the billing and program infrastructure required for CalAIM reimbursement and that many of the funding streams described are reimbursable rather than guaranteed. Council asked staff to return with cost estimates, draft RFP language (if requested), and recommended contract terms needed to maintain continuity of services during any transition.