HomeMy WebLinkAboutStaff Report 13557
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City of Palo Alto Page 1
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Staff recommends that Council approve and authorize the City Manager or their designee to
execute Amendment No. 1 to Contract No. C21179861 with Downtown Streets, Inc., for the
provision of cleaning services and homeless case management services in the Downtown
Business District, in order to extend the contract term by two years, through January 11, 2024,
increase the total not-to-exceed amount to $323,244, and correct a clerical error in the name of
the contractor.
ĂĐŬŐƌŽƵŶĚ
The Public Works Department’s Public Services Division is responsible for maintaining a safe
and clean Downtown Business District. Downtown Streets, Inc. (DSI), was founded by the Palo
Alto Business Improvement District (BID) to reduce panhandling, provide re-entry skills to the
homeless, and provide cleaning services to downtown. DSI team members service the
Downtown Business District by reducing trash from full garbage containers; providing litter
removal for sidewalks, alleyways, and garages; reporting vehicles and/or activities of concern to
the proper authorities; and providing peer-to-peer outreach.
On November 30, 2020, staff requested the approval of a three-year agreement with DSI (SR
#11487). Due to concerns about DSI’s governance and internal practices, Council pulled the
item from its consent calendar. On December 7, 2020, Council approved the agreement for one
year rather than three years, and directed staff to work with DSI to supply the City with
evidence of DSI’s efforts to address the Council’s concerns. The one-year agreement was
approved to allow DSI the opportunity to respond to Council’s requests and expires on
December 6, 2021.
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City of Palo Alto Page 2
Staff recommends approval of Amendment No. 1 to the contract with DSI for cleaning and
homeless case management services, in order to extend the contract term by two years,
through January 11, 2024, increase the total not-to-exceed amount to $323,244, and correct a
clerical error in the name of the contractor. The contractor’s correct legal name is “Downtown
Streets, Inc.” rather than “Downtown Streets Team.”
To address the concerns that Council had expressed in December 2020, staff has followed
through with the actions directed by Council. In response, DSI has completed the following
actions:
• In January 2021, City Council received testimony from a DSI board member clarifying
inaccuracies in testimony previously provided;
• Council was also advised of organizational changes at DSI, including a change in their
internal leadership and a new board chair;
• In May 2021, DSI provided to the City’s Human Resources Office an “Organizational
Response” which included revised board bylaws, employee handbook and managers
manual. The materials were shared with Council and public.
• In June 2021, DSI Director Eileen Richardson spoke to the Council at a public Council
meeting to address the concerns and reinforced the organizational changes at DSI.
This Amendment to extend the contract term by two years benefits the City in the following
ways:
1. Services provided by DSI have helped to reduce trash from overflowing garbage
receptacles, and reduced litter in the alleyways and five parking structures (S & L, R, J, Q
and Civic Center). The litter control provided by DSI also assists the City in reducing
storm water compliance related issues in the Downtown area.
2. DSI strives to reduce homelessness by encouraging participants to take an active role in
their recovery, model positive behavior, and create long-term solutions for their peers.
Participants can work with a case manager to obtain housing and other life support
credits. Each participant is evaluated on his/her individual performance and recognized
for their accomplishments. The skills learned through this program can be used to seek
further employment.
This contract is on the City’s general services template, which permits the City to terminate
without cause/for convenience by providing written notice to the contractor. In the event the
City finds itself facing a challenging budget situation, and it is determined that City resources
need to be refocused elsewhere, the City can terminate for convenience. Other options include
termination due to non-appropriation of funds or amending the contract to reduce the cost, for
example, by reducing the scope of work.
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City of Palo Alto Page 3
Funding for the continuation of this contract is available in the Fiscal Year 2022 University
Avenue Parking District Fund Adopted Operating Budget and straddles fiscal years. The annual
budget for all contract years is shown in the table below. Funding for FY 2023 and FY 2024 of
this contract will be addressed as part of the annual budget process, subject to Council approval
of the annual budget appropriation.
Table1: Annual and Total Not-to-Exceed Contract Costs
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University Avenue Parking Permit Fund – FY2021/FY2022 $107,748
University Avenue Parking Permit Fund – FY2022/FY2023
(FY 2022 appropriation approved/FY 2023 subject to
annual appropriation of funds)
$107,748
University Avenue Parking Permit Fund – FY2023/FY2024
(Subject to annual appropriation of funds) $107,748
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Staff typically discusses the Downtown Streets Team’s work during monthly Palo Alto
Downtown Professional and Business Association meetings. Although these meetings have
been on hold during the Covid-19 pandemic, the group has supported a continued partnership
between the City and Downtown Streets Team.
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The recommended action is CEQA-exempt under the California Environmental Quality Act
pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that
there is no possibility of a significant effect on the environment.
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