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Redding approves $365,000 amendment to interim shelter contract; funding to continue through August
Summary
Council authorized a second amendment to extend and increase the contract with Shasta Community Health Center to operate an interim shelter program using encampment funds; the measure passed 5-0.
The Redding City Council voted unanimously to increase and extend the city’s contract with Shasta Community Health Center for interim shelter services, authorizing a second amendment that raises the contract total to $365,000 and extends the end date to August 2025.
The amendment funds hotel-based interim shelter and case management services for people displaced from encampments and is drawn from the city’s encampment funds. Nicole Smith, staff presenter, told the council the city first entered an agreement with Shasta Community Health Center after terminating a prior provider in November 2024 to triage individuals exiting encampments. Smith said the original contract totaled $60,000 and was later increased to $165,000; the new amendment raises the total to $365,000 and extends services through August.
Smith reported that at triage there were 67 individuals at the hotel, 14 of whom refused services; two moved immediately into permanent housing and several others were transitioned into coordinated programs. As of the council presentation, staff reported 16 encampment participants remained in the hotel covered by the agreement, four had entered the Good News Rescue Mission program and two were in the micro-shelter project. Smith said staff will return to council with a plan before August to recommend whether the city should continue interim shelter or redirect funds into permanent housing.
During questions council members asked how long the arrangement would continue and what the post-August plan would be; Smith said the funding and contract would operate through August 2025 and staff will present proposals to transition participants into other shelter or housing arrangements. No representative from Shasta Community Health Center attended the meeting.
The motion to approve the contract amendment passed unanimously. Council members noted the increase will not impact the general fund or other housing-division activities and thanked the nonprofit partners and staff for the interim response.
Ending: Staff said they will return to council with a recommendation on whether to continue interim shelter funding or shift resources into permanent housing options before the contract expires in August 2025.
