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Tracy selects Restorative Pathways to operate temporary emergency shelter and medical‑respite programs
Summary
After reviewing five proposals, the city awarded a professional services contract to Restorative Pathways to operate the temporary emergency housing facility at 370 Arbor Avenue, covering a low‑barrier shelter and recuperative care for up to 150 adults with an initial term starting May 1 and an annual NTE of $3.9 million.
The council approved a contract award naming Restorative Pathways (listed in motion as Ruby’s Place Incorporated/Restorative Pathways) as the operator for a temporary emergency housing facility at 370 Arbor Avenue.
Homeless Services Manager Virginia Kearney summarized the RFP process: the city issued the RFP in June, received five responsive proposals (Restorative Pathways, 5 Keys, Village of Love, GLOM, Salvation Army Stockton Corps), convened technical and executive review panels, conducted virtual and in‑person interviews and made site visits. Restorative Pathways was ranked first by the panels based on organizational experience, capacity to operate both congregate low‑barrier shelter and a medical‑respite program (CalAIM billing capability), staffing plans, local connections and an annual not‑to‑exceed operating cost of $3,900,000.
Kearney said the recommended scope includes non‑faith‑based shelter services, case management, meals, transportation, laundry and oversight of a commercial kitchen, serving up to 150 adults across non‑congregate recuperative care and congregate low‑barrier shelter components. The initial contract term is a 14‑month start‑up and first‑year performance period (05/01/2026–06/30/2027) with up to four optional one‑year extensions through 06/30/2031 based on satisfactory performance; annual NTE remains $3.9M.
Councilmembers asked about why the lowest bid was not selected; staff and the city manager said the selection prioritized organizational readiness, CalAIM experience (to maximize reimbursement) and overall value. Restorative Pathways representative Helen Ayala, who identified herself as a Tracy resident, described the organization’s Bay Area experience including a mobile health program during COVID and said the firm has local staff experience. The council adopted the agreement and authorized the city manager to execute extensions contingent on annual performance reviews.
