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CC - CONSENT ITEM: Approval of an Amendment to the Existing Occupancy Agreement with Culver City Hospitality, dba (Rodeway Inn) for an Additional Amount Not-to-Exceed $210,000 for Client Damages and Legal Expenses.
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Meeting Date: March 16, 2026
Contact Person/Dept: Christina Stoffers-Himmelman / Housing and Human Services
Phone Number: (310) 253-5780
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: Rodeway Inn (01/27/2026); Advisory Committee on Housing and Homelessness (02/10/2026) and (E-Mail) Meetings and Agendas - City Council (03/12/2026).
Department Approval: Mark Muenzer, Planning and Development Director/Interim Housing and Human Services Director (02/12/2026)
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RECOMMENDATION:
Staff recommends the City Council (1) approve an amendment to the existing occupancy agreement with Culver City Hospitality, dba (Rodeway Inn) for an additional amount not-to-exceed $210,000 for legal expenses and client damages.
BACKGROUND/DISCUSSION:
On June 23, 2025, City Council approved an amendment to the existing occupancy agreement with Rodeway Inn in the amount of $893,748 through June 30, 2026, to continue its operation as part of the Motel Master Lease Program (Program) and to preserve 19 interim housing units for individuals experiencing homelessness.
The amendment was intended to support the full scope of costs associated with operating the site, including nightly room rents plus a 3.1% Consumer Price Index (CPI) increase to account for inflation, legal services, and a reserve for client damage expenses.
Damage reserves have been traditionally factored into the contract amount and are a standard aspect of operating an interim housing site that serves a high-acuity population. Many residents are coming directly from unsheltered homelessness and may be experiencing significant mental health, substance use, or medical challenges that increase damage to units and require repairs and maintenance.
The approved amendment amount solely captures the projected room rent alone ($893,748). While client damages were anticipated and discussed as part of the program’s operating needs, they were not fully captured in the final not-to-exceed contract amount. Though the contract amendment reflects a gap between the existing cost structure and how the contract total was ultimately calculated, there have not been any changes in the original Program scope, priorities, or operations.
Staff is seeking Council approval to formally include the $210,000 client damage allocation, and $10,000 legal service damage reserve, so the contract accurately reflects the complete cost of operating the Program.
FISCAL ANALYSIS:
The Adopted Budget for Fiscal Year 2025-2026 includes $4.7 million in Account No. 10135100.619830 (Housing Administration - Other Contractual Services Unhoused) for the Motel Master Leasing and Nutrition Program. Based on current expenditure trends, the Housing Administration account is projected to realize cost savings in the current fiscal year.
Based on staff’s review and expenditure projections, sufficient funds are anticipated to be available to cover the $210,000 in expenses recommended in this staff report.
ATTACHMENTS:
None.
recommended action
MOTIONS:
That the City Council:
1. Approve an amendment to the existing occupancy agreement with Culver City Hospitality, dba (Rodeway Inn) for an additional amount not-to-exceed $210,000 for client damages and legal expenses;
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.