San Rafael's City Council will vote Monday, July 20, on a $1.09 million contract to prepare the 350 Merrydale Road site in Terra Linda for 65 private cabins that will house up to 70 unhoused residents this fall.

The vote clears the way for Ghilotti Brothers, Inc. to begin electrical upgrades, fencing, and building modifications at the 2.3-acre property. The contractor agreed to perform the work at cost, with no markup or profit margin, according to a staff report prepared by Senior Management Analyst Preya Nixon. Staff recommended the council waive competitive bidding, arguing a formal process would delay the project without producing savings.

The contract totals $989,825 plus a $98,983 contingency. Funding comes from the city's fiscal year 2026-27 Capital Improvement Program budget.

A 12-week lead time on a new 1,600-amp main switchboard means the council must approve the contract Monday to keep the shelter on track to open before winter. Site work includes underground electrical conduits, distribution panels, bathroom upgrades, corridor walls and doors, and an accessible drinking fountain.

The city plans to close the Andersen Drive encampment once the shelter opens. Police and fire crews have responded to dozens of calls at the camp, including seven fires, according to the Marin Independent Journal. In March 2026, a woman was charged with murdering a neighbor at the site.

"Once we know when the Merrydale project will open, the individuals on Andersen are able to relocate to that project," Assistant City Manager John Stefanski said at the council's June 15 meeting, when members voted to ban new camping along Andersen Drive.

The 70 people slated for Merrydale signed up before January 2024 and are drawn from two encampments: the city-sanctioned camp on Mahon Creek Path and the unsanctioned Andersen Drive site. They will get heat, power, and a locking door, Northern California Public Media reported June 24.

The total price tag for the Merrydale project, including the $6.7 million property purchase the council approved in November 2025, is approximately $12.5 million, according to Community Services Division Director Daniel Cooperman. Marin County contributed $8 million from its Affordable Housing Trust toward acquisition and program costs under a multi-jurisdictional agreement.

Operations will be handled by Foege Schuman Global Disaster Solutions LLC under a contract not to exceed $3.84 million through June 30, 2028, approved at the council's April 20 meeting. The cabin site is scheduled to close by June 30, 2029, when the city has agreed to permit redevelopment into at least 80 units of permanent affordable housing.

Also on Monday's consent calendar: the council will consider establishing a subcommittee to oversee that long-term redevelopment.

Nearby residents have pushed for camping bans around the shelter site. At the June 15 meeting, Rafael Meadows resident Marianne Nannestad asked why the city was "so reluctant to impose a ban around Merrydale" when it had already acted at other locations. The council's June resolution does ban camping in the grassy area between Merrydale Road and the Civic Center SMART station.

The July 20 meeting begins at 6 p.m. in the City Council Chambers at San Rafael City Hall, 1400 Fifth Avenue. It is the first hybrid meeting under California Senate Bill 707, meaning residents can comment live by Zoom or phone, or submit written comments to [email protected] before the meeting.