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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 18, 2018 TITLE: APPROVE AGREEMENT WITH MERCY HOUSE LIVING CENTERS, INC., TO OPERATE AN INTERIM HOMELESS SHELTER IN SANTA ANA {STRATEGIC PLAN NOS. 1,6; 5,4; 5,6} ra'�!%.r� RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute an agreement with Mercy House Living Centers, Inc., to operate an interim Emergency Homeless Shelter in Santa Ana for a period of one year in the amount of $3.1 million commencing on the execution date of the agreement, with the option to renew for up to one additional year exercisable by the City Manager and City Attorney, in an amount not to exceed $6 million, including renewal period, and inclusive of a $250,000 annual contingency, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION At the September 4t', 2018 City Council meeting, the City Council approved a Memorandum of Understanding (MOU) with the County of Orange to relocate the Courtyard Emergency Homeless Shelter (Courtyard) to a more suitable location and to expand shelter beds for the specific use by the City of Santa Ana. The MOU was ratified by the County on September 11th. This agreement will mitigate the negative impacts of homelessness in Santa Ana, will provide Santa Ana unsheltered homeless with shelter and supportive services, establish a long-term collaborative effort between the City and County, minimize the migration of homeless individuals into Santa Ana, ensure available bed capacity for Santa Ana's use, and discontinue the Santa Ana Armory program. Given that the selection and acquisition of a permanent site, tenant improvements and relocation of the Courtyard may take12-18 months, the City recognizes the need for an Interim Emergency Homeless Shelter to ensure individuals experiencing homelessness from the City of Santa Ana, have a safe and stable place to stay, and to mitigate the impact of homelessness in the community. A benefit for the City in implementing a Santa Ana only Interim Emergency Homeless Shelter is that the City will define and control the intake and referral process, thus providing safeguards within City boundaries. This is essential, given the data collected from the March 2018, City led Point-ln- Time (PIT) count, which found that over 50% of the population arrived in Santa Ana from other parts of Orange County. The PIT count resulted in a 121% increase in the unsheltered homeless 25C-1