The original booking agreement with Sayana Corporation for the operation of the Adante Hotel was for a term ending on August 31, 2023, with certain requirements of the Administrative and Environment Codes in place.

Amend the booking agreement to increase the not to exceed amount by $3,642,573 for a total amount not to exceed $18,499,439 and extend the term from August 31, 2023, to August 31, 2024. Waive certain requirements of the Administrative and Environment Codes for the agreement.

The fiscal impact includes additional expenditure due to the increased not-to-exceed amounts by $3.6 million for the Adante Hotel, and similar increases for other hotels. The hotels as non-congregate shelter are more expensive to operate than traditional congregate shelter or permanent supportive housing.

The funding for the proposed ordinance, included in the FY 2022-23-2024-25 budget, aims to maintain necessary shelter system capacity while the Department of Homelessness and Supportive Housing identifies ongoing funding for expanded shelter options and seeks lower-cost alternatives for non-congregate shelter.

According to City Charter Section 9.118(b), contracts that exceed certain thresholds, such as a modification of over $500,000, require the approval of the Board of Supervisors. The proposed changes require such approval due to the increase in not-to-exceed amounts and extension of contract terms.

The City is not expecting additional settlements for hotel agreements aside from those currently in use by HSH for non-congregate shelter and one used by the Department of Public Health for other programs. HSH is taking proactive measures to manage the conditions of the remaining three hotel sites to mitigate future liabilities.