Committee forwards $15M amendment for Kova Hotel shelter after BLA flags contract issues

Supervisor Hillary Ronan and Vice Chair Mandelman heard a detailed presentation Oct. 13 on a proposed third amendment to the Department of Homelessness and Supportive Housing’s grant with Episcopal Community Services (ECS) to operate the Kova Hotel as a non‑congregate shelter.

HSH staff said the amendment would extend the contract through Aug. 31, 2024, and raise the not‑to‑exceed amount by approximately $5,100,000 to a total of about $15,000,000 to cover 10 additional months of operations. HSH described the site as 109‑bed capacity (89 rooms), with an FY23‑24 per‑bed cost of $144 per night plus a $75 per‑night booking agreement fee. Occupancy at the site was reported as 95 percent as of Oct. 5.

Nick Menard of the Budget and Legislative Analyst’s office reported that an April 2023 site monitoring found ECS “failed to comply with most of the major contract requirements,” citing missing staff training, inadequate wellness checks, absent maintenance logs and uncompleted service‑outcome goals. Menard recommended ECS be required to report back during the budget process and suggested another monitoring check‑in in January 2024 and a status update at the June budget process.

HSH acknowledged the monitoring findings and told the committee ECS has since replaced the site manager, is hiring a care coordinator, updated data entry and intake processes, increased cleaning turnaround and daily inspections, and is scheduling additional monitoring. Chris Calandrillo, chief program officer at ECS, said operations and monitoring have improved and that ECS would continue to work with HSH to reach compliance.

Three shelter residents spoke in support of the hotel program. Pedro Vega said, “This place has been nothing but good to me,” and described gaining employment and stability after being moved into the hotel. Leanne Pankey described being able to sleep in her own room and rebuild her life. Raymond Hodge, a case manager and former resident, praised ECS’ work overall but urged more training, better hiring and closer oversight so funds produce intended outcomes.

Chair Ronan moved to forward the amendment to the full Board with a positive recommendation and to accept the BLA’s recommendation for a follow‑up; the motion passed unanimously (two 'aye' votes, with Supervisor Walton excused). HSH officials agreed to provide the additional site‑level data requested by supervisors.