San Rafael hires contractors to manager shelter site project

San Rafael has hired a consulting firm to manage a controversial project to install cabins to shelter homeless people at a Terra Linda site.

The city authorized a $229,703 contract with Swinerton Management and Consulting for project management services from design to construction. The city has also granted a contract amendment with LCA Architects, a Walnut Creek firm designing the shelter layout, increasing costs from $207,250 to $280,750.

The City Council authorized the moves at its meeting on Feb. 17. Two days later, the city issued a request for proposals, soliciting a development partner for a permanent affordable housing complex that will replace the shelters.

The project, which the city is coordinating in partnership with the county government, involves up to 65 cabins at 350 Merrydale Road. The arrangement commits the city to develop an affordable housing complex at the same site after winding down the shelter.

The property borders the Rafael Meadows neighborhood, whose residents continue to keep a critical eye on the progress.

“The city of San Rafael is currently performing a high wire act at 350 Merrydale Road, attempting to balance urgent housing mandates against the trust and stability of our established neighborhoods,” said Ken Dickinson, a resident of the neighborhood.

Dickinson was among the residents who alleged the City Council approved the shelter project in closed session without a public report of the vote, calling it a violation of the Brown Act, the public meetings law. The allegation came after the surprise October announcement about the plan from the city and county without any prior public engagement.

Dickinson said the city has inconsistently described the housing component of the project. Initially, he said, city officials communicated that it would be up to 80 dwellings, not potentially more.

Certain documents — including an $8 million grant agreement signed by city and county officials in November, a city staff report and others — say the housing project would provide “up to” 80 dwellings. In other places — including a county staff report to the Board of Supervisors, the city’s project page and the request for proposals — it says the project would have a “minimum” of 80 dwellings.

Residents said the word choice makes a big difference.

Assistant City Manager John Stefanski said there is some nuance to the language. The grant with the county stipulates it will contribute $100,000 per entitled affordable dwelling, up to 80, Stefanski said. That means the county will not contribute more than $8 million to the city for the project.

“If the city entitles a project with fewer than 80 units, we have to refund the county $100,000 per unit not entitled,” Stefanski said.

In developing the request for proposals, the city set a floor of 80 dwellings so it will not have to refund the county the $100,000 per door, he said.

Dickinson said he and neighbors are also concerned about the tight deadline to have the property entitled by June 30, 2028, and that they hope the selection criteria for a developer include a demonstrable track record of community engagement.

“We are sounding the alarm that without early, direct engagement before developer concepts are finalized, the city risks a repeat of the trust breakdown we’ve seen in the past,” Dickinson said. “We are calling on the mayor and council to accept our invitation to meet with impacted residents now, not in August after a selection is made, to ensure this project is built on a foundation of transparency rather than a series of closed-session surprises.”

Stefanski said the city has responded to the community concern by holding a series of engagement meetings, including an open house, online forums, in-person sessions and a neighborhood walk on Jan. 26. An update of the project was also presented to the city’s homelessness subcommittee in a public session on Feb. 19, he said.

“Feedback received through these engagement efforts informed refinements to the site design, operational policies and the overall program,” Stefanski said. “The city remains committed to continue engaging with the entire San Rafael community to hear and address their concerns about this project.”

Resident Gregory Andrew attended the Feb. 19 session. He said the community was under the impression the city would revise the code of conduct policy for participation in the shelter to restrict drug use at the site. At the meeting, staff presented a proposed prohibition against drug and alcohol use.

Mayor Kate Colin said the rule would be a departure from recommendations by health care experts. It has been Marin’s practice to offer harm reduction, an approach that provides care without requiring sobriety.

“I don’t feel comfortable with that,” Colin said of the proposal. “We’re not the experts.”

After the meeting, Andrew said the neighborhood has families with young children.

“I remain very concerned that illegal drug use at 350 Merrydale could lead to bad behavior in our neighborhood and drug sales/distribution in our neighborhood,” he said.

The topic is expected to be addressed at a later meeting.

Stefanski said the interim shelter project is expected to go out for a construction bid in the spring. Staff aim to open the shelter site this fall.

The city also plans to seek funding opportunities, grants and philanthropic contributions to support the shelter operations. Staff said the city will need about $4 million to operate the site beyond June 2027.

Stefanski said responses from developers interested in partnering on the affordable housing component are due by May 1. After reviewing applications, city staff expect to make a recommendation to the council this summer to pick a firm to enter into an exclusive negotiation agreement, Stefanski said.

“No one should be living in an encampment or without a safe place to call home in San Rafael,” Colin said in an email. “Our community has asked us to address visible homelessness while also expanding affordable housing. Those goals are embedded in our Strategic Plan and General Plan 2040. Advancing this RFP is how we move from intention to implementation.”