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San Bernardino council approves $680,000 ARPA contract with Salvation Army for homeless outreach
Summary
The City Council voted to reallocate $680,000 in ARPA funds and authorize a professional services agreement with The Salvation Army to provide homeless outreach services after Hope the Mission submitted a notice of termination.
The San Bernardino City Council on Monday approved a $680,000 reallocation of American Rescue Plan Act (ARPA) funds and authorized the city manager to execute a professional services agreement with The Salvation Army to provide homeless outreach services.
Cassandra Searcy, a city staff member who presented the item, told the council that Hope the Mission submitted formal notice to terminate its professional services agreement for homeless outreach on Nov. 25; its final day of service will be Dec. 20. Searcy said Hope the Mission’s contract originally ran June 2023 to June 2024 and that the provider delivered roughly 18 months of service while facing staffing and performance difficulties.
The council discussion and staff presentation focused on minimizing service gaps after Hope the Mission’s departure. Searcy said The Salvation Army was the second-ranked proposer in the city’s initial 2023 procurement and has an established regional presence. "They are well connected with the local community," Searcy said, and the contract will require monthly and quarterly reports on client demographics, program enrollment, service utilization and housing outcomes so the mayor and council can monitor results and challenges.
Staff also told the council The Salvation Army initially proposed a federally negotiated indirect cost rate (NICRA) of 25 percent; through negotiation the city and The Salvation Army agreed to reduce that rate to 11 percent so more funds can be used for direct outreach services such as staffing or salaries. Council members were told the reduction frees additional dollars for frontline work.
Mayor Pro Tem Sherratt disclosed an advisory-board affiliation with The Salvation Army and said the role is unpaid; she said she had sought legal advice and would participate in the vote. "We are not compensated in any way, shape, or form," Sherratt said, adding that The Salvation Army is planning to expand into San Bernardino from nearby Redlands.
Staff noted the ARPA reallocation must follow the scope of the original 2023 request for proposals; because rapid rehousing was not included in that RFP, the city cannot add rapid rehousing services to this contract now. Staff said they will return to the council with a separate proposal and funding plan to add rapid rehousing in the coming months.
Councilman Sanchez asked for confirmation that the homeless ad hoc committee supported reducing the indirect-cost rate from 25 percent to 11 percent and reallocating the savings to staffing; staff confirmed the committee recommended moving forward with that approach. After a motion by Mayor Pro Tem Sherratt, the council voted unanimously in favor of the contract amendment and ARPA transfer.
The approved action directs staff to amend the agreement, have The Salvation Army execute the professional services agreement, and begin monthly reporting through the city manager’s office. The city will monitor performance measures outlined in the agreement and expects The Salvation Army to coordinate warm handoffs to county and other partner services.
The council took the vote during a special meeting that adjourned to a regularly scheduled session at 5 p.m.
