Title
a. Approve and authorize the County Purchasing Agent, or designee, to execute Amendment No. 4 to Agreement A-17197 with Step Up on Second Street, Inc. to reduce the Agreement by $395,136 in Encampment Resolution Funding Round 3 grant funds, resulting in a revised Sendero services budget of $1,322,046 and a reduced total contract amount of $1,454,527, with no change to the contract term of November 1, 2024, through June 30, 2027; and
b. Approve and authorize the County Purchasing Agent, or designee, to execute up to two (2) future amendments to the Agreement where the amendments do not exceed 10% ($145,453) of the revised total contract amount and do not significantly alter the scope of services, as determined by the Director of Homelessness Strategies and Initiatives and subject to approval by the Office of the County Counsel and do not increase the total contract amount above $1,599,980.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the County Purchasing Agent, or designee, to execute Amendment No. 4 to Agreement A-17197 with Step Up on Second Street, Inc. to reduce the Agreement by $395,136 in Encampment Resolution Funding Round 3 grant funds, resulting in a revised Sendero services budget of $1,322,046 and a reduced total contract amount of $1,454,527, with no change to the contract term of November 1, 2024, through June 30, 2027; and
b. Approve and authorize the County Purchasing Agent, or designee, to execute up to two (2) future amendments to the Agreement where the amendments do not exceed 10% ($145,453) of the revised total contract amount and do not significantly alter the scope of services, as determined by the Director of Homelessness Strategies and Initiatives and subject to approval by the Office of the County Counsel and do not increase the total contract amount above $1,599,980.
SUMMARY/DISCUSSION:
The County Administrative Office’s Homelessness Strategies and Initiatives Division (CAO-HSI) requests approval to execute Amendment No. 4 to Agreement A-17197 with Step Up on Second Street, Inc. (Step Up) to reduce the Agreement by $395,136 in Encampment Resolution Funding Round 3 (ERF-3-R) grant funds.
In January 2024, CAO-HSI partnered with the City of Soledad, the Coalition of Homeless Services Providers, and Step Up on Second Street, Inc. to submit a County-led grant application to the California Department of Housing and Community Development for Encampment Resolution Funding Round 3 (ERF-3-R). The application proposed a coordinated strategy to resolve the Salinas River Soledad encampment through the development of Sendero, a 16-unit interim housing facility on City-owned property at 990 Los Coches Road in Soledad, along with supportive services, housing navigation, and systems support provided by project partners. On April 18, 2024, the County was awarded $4,726,964 in ERF-3-R funding to implement the project.
As one of the project partners identified in the ERF-3-R grant application, Step Up serves as the contracted service provider for Sendero, a 16-unit interim housing facility located in Soledad. Under the Agreement, Step Up provides supportive services to program participants, including case management and housing navigation, to assist individuals experiencing homelessness with stabilization and transition toward permanent housing.
The amendment would reduce the ERF-3-R funding allocated to Step Up for Sendero services by $395,135.99, resulting in a revised Sendero services budget of $1,322,046. The amendment would also reduce the total Agreement amount to $1,454,527. There would be no change to the contract term of November 1, 2024, through June 30, 2027.
The reduction is part of a broader ERF-3-R budget modification to address additional construction and facility management costs associated with Sendero. Due to increased project costs, available ERF-3-R funds are being reallocated among project partners to ensure sufficient funding is available for remaining eligible project expenses.
Step Up agreed to reduce its ERF-3-R funding allocation by $395,136 to support this reallocation. The reduction reflects decreased staffing and interim shelter service needs as program participants have transitioned to permanent and/or other appropriate housing. As a result, interim shelter operations and associated staffing will be reduced, with the interim shelter component ending April 30, 2027. Step Up will continue to provide Rapid Rehousing, case management, housing navigation, and supportive services to former and remaining program participants through June 30, 2027, to support continued housing stability and permanent housing placements.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The Office of the County Counsel-Risk Management, and the Auditor-Controller’s office have reviewed and approved proposed Agreement as to form, risk, and fiscal provisions.
FINANCING:
This action will have no impact on the General Fund. Amendment No. 4 is fully funded by the Encampment Resolution Funding Round 3 (ERF-3-R) grant. Amendment No. 4 will reduce Step Up’s ERF-3-R allocation by $395,136.
The County received the California Department of Housing and Community Development’s approval to modify the applicable ERF-3-R grant budget and reallocate these funds on October 5, 2026, retroactive to March 1, 2026.
The $395,135 reduction will decrease Step Up’s ERF-3-R Sendero services budget from $1,717,182 to $1,322,046 and reduce the total Agreement amount to $1,454,527. The released ERF-3-R funds will be reallocated to the City of Soledad’s Sendero agreement to support remaining eligible construction and facility management costs of Sendero.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This action supports the County of Monterey’s Strategic Goals and Key Objectives by providing supportive services, case management, housing navigation, and interim and/or permanent housing opportunities for individuals or couples experiencing homelessness in the Soledad area.
Mark a check to the related Board of Supervisors Adopted 2025-26 Strategic Plan Goals:
_X_ Well-Being and Quality of Life
_X_ Sustainable Infrastructure for the Present and Future
_X_ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Sarah Federico, Management Analyst III (ext. 5341), CAO-HSI Division, ext. 5341
Reviewed by: Roxanne Wilson, Homeless Services Director, CAO-HSI Division, ext. 5445
Approved by: Michael Beaton, Assistant County Administrative Officer, ext. 3835
Attachments:
Amendment No. 4 to Agreement A-17197
Amendment No. 3 to Agreement A-17197
Amendment No. 2 to Agreement A-17197
Amendment No. 1 to Agreement A-17197
Agreement A-17197
Proposed Amendment No. 4 to Agreement A-17197 is on file with the Clerk of the Board as an attachment to this Board Report.