To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
STEPHANIE W. JOHNSON, QUALITY OF LIFE PROSECUTOR
TITLE
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APPROVE THE SECOND AMENDMENT TO THE AGREEMENT WITH HEALTH NET FOR USE OF FUNDS FOR THE PALLET SHELTER EXPANSION AND ALTERNATIVE CRISIS RESPONSE PILOT PROGRAM TO EXTEND THE TERM TO DECEMBER 31, 2026
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EXECUTIVE SUMMARY
On April 9, 2024, the Mayor and City Council approved a grant agreement with Health Net for $1,338,753 for the expansion of the pallet shelter and an alternative crisis response pilot program. Staff recommends that the City Council approve the amendment to the agreement to extend the term to December 31, 2026.
BACKGROUND
Alternative Crisis Response
The City's Alternative Crisis Response (ACR) is designed to approach non-violent, mental and behavioral health service calls by offering trauma-informed care, crisis de-escalation, in person intervention and transport to immediate behavioral health services. Physical health, behavioral health, and substance use professionals provide intensive whole-person healthcare services in episodes of crisis, with goals of reducing the amount of hospital and emergency room visits as well as fire and police department involvement. The City's ACR Program launched on November 10, 2025 and has been working closely with Chief Issac Yang and the Fire Department, with services being provided by CLEAR Behavioral Health and Hero Community Services. The operational budget for this program is $570,003.
Pallet Shelter Expansion
During the Fiscal Year 2023-2024 Budget Adoption Process, the City Council approved the expansion of the Pallet Shelter estimated to cost $1,568,750 on the condition of identifying grant funding. On December 19, 2023, City Council approved the purchase of twenty-five (25) additional pallet shelter units because the City received a letter of support from Los Angeles County Supervisor Holly J. Mitchell for $800,000 of District Two Homelessness funding as well a...
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