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REQUEST FOR <br />COUNCIL ACTION _ <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 6, 2020 <br />TITLE: <br />APPROVE AGREEMENT WITH <br />ILLUMINATION FOUNDATION IN THE <br />AMOUNT OF $1,595,406 TO OPERATE <br />THE LINK SHELTER <br />(NON -GENERAL FUND) <br />/s/ Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1sl Reading <br />❑ <br />Ordinance on 2i1 Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For_ <br />CONTINUED TO <br />1�1��►U1�1:7q:7 <br />RECOMMENDED ACTION <br />1. Authorize the City Manager to execute an Operator Agreement with Illumination Foundation for <br />the Link shelter, from October 15, 2020 to March 31, 2021 for a total amount not to exceed <br />$1,595,406, subject to non -substantive changes approved by the City Manager and City <br />Attorney. <br />2. Authorize the City Manager to execute a Funding Agreement for the use of ESG-CV and ESG <br />CV 2 from the United States Department of Housing and Urban Development from October 15, <br />2020 to June 30,2021, subject to non -substantive changes approved by the City Manager and <br />City Attorney. <br />DISCUSSION <br />On September 18, 2018, the City Council approved an agreement with Mercy House Living <br />Centers, Inc. (Mercy House) to operate an interim Emergency Homeless Shelter in Santa Ana for <br />a period of one year, with the option to renew for up to one additional year. Over the last two years, <br />the contract with Mercy House was amended to authorize additional funds and to renew the one- <br />year contract through October 14, 2020. <br />On June 16, 2020 City Council authorized the City Manager to execute an Operator Agreement, <br />with Illumination Foundation to operate a Year -Round Homeless Navigation Center and <br />Recuperative Care Facility at 1815 Carnegie Avenue in Santa Ana that included tenant <br />improvements and structural work. Illumination Foundation's proposed schedule for the new <br />shelter included a timeline with occupancy in the fall of 2020. Since the time of approval, it became <br />apparent that the project was more involved than originally anticipated due to a variety of items, <br />including seismic upgrades, asbestos resolution, and roof upgrades. Because of the unanticipated <br />work, occupancy of the shelter will be delayed several months. While the Carnegie shelter is <br />constructed, the Link shelter will continue operation as usual. During the construction phase, the <br />City will pay the monthly base rent at the new site, but no operational cost. <br />25B-1 <br />