Staff recommend one-year, $3.36 million Mercy House contract to run Oxnard Navigation Center

City staff recommended that the Oxnard City Council approve a one-year operating agreement with the nonprofit Mercy House to run the Oxnard Navigation Center in fiscal year 2025–26 at a not-to-exceed cost of $3,355,407.75.

Michael Skinner, homeless programs administrator with the Housing Department, told the council that the agreement would fund the 110‑bed, 24‑hour navigation center at the former National Guard Armory site at 351 South K Street until a permanent facility opens. The recommendation was delivered as a presentation to the council and included funding and contingency details; the council was scheduled to consider the item on June 17, 2025.

The proposed total represents a reduction from last year’s not‑to‑exceed budget of $4,066,990 for fiscal year 2024–25, city staff said. Under the proposed FY2025–26 budget, Ventura County’s cost share for the shelter is listed as not to exceed $1,635,703.87 and the city’s cost share as not to exceed $1,719,703.88. The agreement also includes a $70,000 budget for furniture, fixtures and equipment for the Casa De Carmen shelter site and $63,000 for temporary costs tied to operations at the current K Street site, which the city would fund.

Casa De Carmen, a disposition and development project approved by the city on March 30, 2021, is expected to open by Sept. 30, 2025, at which point shelter operations would move from the temporary K Street site to the permanent Casa De Carmen location, staff said. Staff described a contingency line of $21,000 to cover rental of temporary restroom, laundry and shower trailers in the event construction delays extend past Oct. 2025; those contingency costs would be funded by the city if needed.

Skinner summarized the scope of services Mercy House would provide under the agreement: maintaining a safe, secure and dignified 24‑hour shelter, offering daily meals, hygiene facilities, transportation and case management focused on stabilizing clients and transitioning them to permanent housing. The proposed operating agreement would include performance measures and pay incentives intended to align operations with the city of Ventura’s shelter contract and to support consistent outcomes for shelter clients.

Staff said the operating costs for FY2025–26 will be financed under an amended cost‑share agreement with Ventura County (amendment A8462). Staff indicated the county amendment would go to the Ventura County Board of Supervisors for approval in June 2025 and that the Oxnard City Council would consider the Mercy House operating agreement on June 17, 2025. The current Mercy House operating agreement expires June 30, 2025.

Background provided to the council notes the city began operating the temporary shelter at the former armory in January 2019, initially managed by city Housing Department staff for about five months before Mercy House was procured in June 2019 under a joint effort with Ventura County and the City of Ventura. City staff said Mercy House has performed well in managing shelter operations since 2019.

If approved by the council, the agreement would be a one‑year contract for FY2025–26 with a not‑to‑exceed amount of $3,355,407.75 funded through the city general fund obligation of $1,677,703.88 as part of the proposed FY2025–26 city budget, $42,000 in previously approved permanent local housing allocation funds, and the county cost share. Council consideration was listed on the agenda for June 17, 2025.