San Rafael approves amendment to operate 65‑unit Marydale interim shelter; funding gaps noted

San Rafael — The City Council on April 20 authorized a second amendment to the city’s professional services agreement with Foege Schumann Global Disaster Solutions (FS Global) to implement and operate a 65‑unit interim shelter at 350 Marydale (referred to in materials as Marydale). The resolution passed 3–0.

Daniel Cooperman, the community services division director, described the project as a transition from the city’s sanctioned camping area (SCA) into a low‑barrier interim shelter composed of 65 private, lockable tiny homes and modular units serving up to 70 unique individuals over the life of the program. Cooperman provided SCA outcome metrics: 52 participants on site with an average occupancy of about 49–50, 100% of participants receiving case management, 53 participants who received benefits increases, and seven exits to permanent housing.

Under the approved motion, the city manager was authorized to negotiate and execute a second amendment with FS Global in an amount not to exceed $2,487,649, bringing the total contract not to exceed $3,837,649, and to extend the term through June 30, 2028; the council also appropriated $1,000,000 of county grant funds to the effort.

Staff described a braided funding strategy: ERF3 funds and prior encumbered amounts helped stand up the SCA and provide some funding for initial operations; the county provided a purchase grant ($8 million total with $1 million toward operations/purchase described in the meeting), and staff are pursuing ERA5 and philanthropic support (Marin Community Foundation) to close the gap to operate through the shelter term. City staff cautioned that, while some funds are secured, a funding gap remains for operating through June 30, 2029 if that extended operation becomes necessary; staff said a substantial fundraising effort and possible ERA5 awards are part of the plan.

Residents and stakeholders raised a range of concerns during public comment: whether the city has secured all operating funds through 06/30/2028 (Gregory Andrew), contract math and missing line items in the FS Global cost estimate (Wayne Rayburn and Ken Dickinson), lessons from similar tiny‑home projects with unstable funding (Janet Shirley), neighborhood safety, clear boundaries for operator responsibilities, and whether a low‑barrier Housing First model provides adequate neighborhood protections. Staff responded to many technical questions, said they would correct a date discrepancy (DocuSign shows 2027 while the council resolution referenced 2028) before signature, and committed to follow‑up briefings on the contract budget detail and the good‑neighbor policy.

Why it matters: The project is intended to transition people living in encampments into supervised interim housing and to create a pathway to entitlement and eventual affordable housing on the site. The council’s action moves procurement and site‑operations planning forward but leaves a residual funding risk that staff said they will continue to pursue through state NOFAs and philanthropic partnerships.

What’s next: Staff will finalize contract edits, reconcile budget line items, continue outreach with neighbors (including postcards and in‑person meetings), pursue ERA5 and philanthropic funding, and advance an RFP process to identify a developer partner to entitle the site for permanent affordable housing by 06/30/2028, per the county grant agreement.