Title
a. Approve and authorize the County Purchasing Agent, or designee, to execute a retroactive Amendment No. 2 to Agreement A-17196 with the City of Soledad to add $519,513 of available grant funds for remaining construction and facility management costs for Sendero, a 16-unit interim housing facility effective March 2026, for a new contract total of $2,667,845 with no changes to the contract term of January 7, 2025, 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% ($266,785) 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 $2,934,630.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the County Purchasing Agent, or designee, to execute a retroactive Amendment No. 2 to Agreement A-17196 with the City of Soledad to add $519,513 of available grant funds for remaining construction and facility management costs for Sendero, a 16-unit interim housing facility effective March 2026, for a new contract total of $2,667,845 with no changes to the contract term of January 7, 2025, 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% ($266,785) 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 $2,934,630.
SUMMARY/DISCUSSION:
The County Administrative Office’s Homelessness Strategies and Initiatives Division (CAO-HSI) requests approval to execute Amendment No. 2 to Agreement A-17196 with the City of Soledad (City) to add $519,513 in available grant funds for remaining construction and facility management costs associated with Sendero, retroactive to March 1, 2026. Sendero is a 16-unit interim housing facility owned by the City of Soledad and developed to support the resolution of an encampment located on unincorporated, privately owned, and City-owned land near the Salinas River. Amendment No. 2 would increase the total Agreement amount to $2,667,845, with no change to the Agreement term of January 7, 2025, through June 30, 2027.
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 the development of interim housing on City-owned property located at 990 Los Coches Road, Soledad, California 93960, known as Sendero, to provide low-barrier temporary housing and access to comprehensive supportive services using a Housing First model for individuals residing in the encampment known as the Salinas River
Soledad encampment.
On April 18, 2024, the County was awarded $4,726,964 in ERF-3-R funding to address the encampment. Work to transition individuals out of the Salinas River Soledad encampment began in July 2024. The County subsequently entered into Agreement A-17196 with the City of Soledad in the amount of $2,148,332 for the development of Sendero.
In March 2025, due to safety concerns at the encampment site and while construction of Sendero remained underway, project partners established a temporary shelter area adjacent to the Sendero construction site and began transitioning program participants from the encampment to the temporary shelter site or nearby Motel 6. All program participants were provided with access to temporary shelter, supportive services, housing navigation, and basic needs assistance while construction of Sendero was completed. During this period, a number of program participants were successfully transitioned to other available housing opportunities before Sendero received its occupancy permit in January 2026.
By March 2026, Sendero had its grand opening and became fully operational with all 16 units occupied. However, additional costs were incurred as a result of transitioning program participants out of the encampment several months prior to completion of the facility, as well as remaining construction-related expenses associated with completing the project. As a result, the City requires additional funding to support facility management costs retroactive to March 1, 2026, through April 30, 2027, to keep Sendero fully operational, and to pay remaining eligible construction costs associated with Sendero’s construction.
To address the City’s funding shortfall, CAO-HSI proposes reallocating a combination of available Encampment Resolution Funding Round 3 and Homeless Housing, Assistance and Prevention Program Round 6 funds totaling $519,513 to the City under Agreement A-17196.
Approval of Amendment No. 2 will allow the City to complete payment of remaining eligible construction expenses and provide continued facility management for Sendero through April 30, 2027, while maintaining the existing Agreement termination date of June 30, 2027.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The Office of the County Counsel and the Auditor-Controller’s office have reviewed and approved proposed Amendment No. 2 as to form and fiscal provisions.
FINANCING:
This action will not impact the County General Fund. The $519,513 added to Agreement A-17196 is funded by $469,513 in Encampment Resolution Funding Round 3 (ERF-3-R) grant funds and $50,000 in Homeless Housing, Assistance and Prevention Program Round 6 (HHAP-6) funds. The ERF-3-R amount consists of $395,136 reallocated from the Step Up on Second Street, Inc. agreement and $74,377 reallocated from ERF-3-R Systems Support funding.
The County received the California Department of Housing and Community Development approval to modify the applicable ERF-3-R grant budget and reallocate these funds on October 5, 2026, retroactive to March 1, 2026.
Sufficient appropriations and estimated revenues are included in the CAO Fiscal Year 2026-27 Adopted Budget.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This action supports the County of Monterey’s Strategic Goals and Key Objectives by addressing hazardous and unhealthy living conditions associated with unsheltered homelessness and providing interim and permanent housing opportunities for individuals experiencing homelessness along the Salinas River 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, 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. 2 to A-17196
Amendment No. 1 to A-17196
Agreement A-17196
Proposed Amendment No. 2 to A-17196 is on file with Clerk of the Board as an attachment to this Board Report.