The City of Santa Barbara is looking to enter a month-to-month contract with the nonprofit organization SB ACT after a blowup over management in May.

In addition, it is preparing a request for proposals to possibly bring in a new provider for homeless day services.

The contract is for $22,581 and is for the homeless day center on Chapala Street known as FARO (Fostering Access, Resilience and Opportunity).

The problems erupted on May 1 when City Attorney Sarah Knecht sent a 30-day written notice of termination of the agreement to SB ACT. The city had received complaints about yelling, public urination, loitering, smoking, trespassing and harassment.

The city partnered with SB ACT on the center in June 2024, but neighbors, including Jodi House next door, have contended mismanagement of the program.

According to the city, staff are in the process of developing an RFP for a service provider that will implement a new operating model.

The new month-to-month contract calls for several immediate changes:

• No “drop-in” public access is allowed.
• All clients must enter the center through a service provider or government agency referral.
• Daytime security must be provided from 8 a.m. to 4 p.m. Monday through Friday,
  in addition to overnight security patrols.
• Discontinuation of hot meal service and return to snack bags, which must be consumed on the premise with no outside litter.
• Discontinuation of a needle exchange program.
• Full implementation of a new Code of Conduct/Consequence Matrix with the
  primary goal of minimizing program disruption and external impacts to the facility
  and surrounding neighborhood.

The FARO Center is meant to provide a “one-stop shop” for people experiencing homelessness and housing insecurity to access support and services with
the goal of assisting them to become document ready and to secure housing.

The services include helping clients obtain birth certificates, driver’s licenses and Social
Security cards, as well as case management, workforce development and life-skills building, according to the city’s staff report.

The city has budgeted $100,000 for the FARO Center for 2026.

“SB ACT has made some positive changes to help address the needs of the neighborhood,” City Administrator Kelly McAdoo said. “We are hopeful through the RFP that we can find a provider that will continue to provide these services with minimal effect on the neighborhood.”

The contract also includes sublease agreements with City Net and Good Samaritan Shelter, which have administrative offices on the second floor of the building, at 621 Chapala St.

The item is on the City Council’s consent agenda on Tuesday, which means there will be no discussion unless a council member or someone from the public requests that the item be discussed.