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Councilmember Sarmiento, noted that funds will be exhausted after the first year, remaining funds have been designated in the current procurement process, and funds have been used to augment and work with affordable housing developers. Mayor Pro Tem, introduced a friendly amendment to direct staff to develop options for City Council consideration on use of proceeds from sale of City owned property and/or use reserve or one-time funds to close the gap. Councilmember Sarmiento, in support of friendly amendment. Noted accessing funding from reserve policy would require two-thirds majority vote. Councilmember Solorio, in support of local Santa Ana based service provider, service model proposed by Mercy House Living Center, and request provider explore a number of properties that may be used as an emergency shelter. AMENDED MOTION: 1. 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 non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-221); and 2. Provide policy options for City Council consideration to close the funding gap by either proceeds from the sale of City owned property or declare local emergency and use reserve one-time funds to augment the balance. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Martinez Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) CITY COUNCIL MINUTES 9 SEPTEMBER 18, 2018