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Community Development Agency <br /> <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />January 19, 2021 <br />TOPIC: Approve Fourth Amendment to Mercy House Agreement <br />AGENDA TITLE: <br />Approve fourth amendment to agreement with Mercy House Living Centers, Inc. in the <br />additional amount of $153,214.72 for the operation of The Link Shelter (Non -General <br />Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute the fourth amendment to the agreement with the <br />Mercy House Living Centers, Inc. to increase funding for the operation of the Link Shelter, <br />in the amount of $153,214.72 for a total amount not to exceed $6,551,337.72 subject to <br />non -substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On September 18, 2018, the City Council approved an agreement with Mercy House <br />Living Centers, Inc. (Mercy House) to operate an interim Emergency Homeless Shelter <br />in Santa Ana for a period of one year, with the option to renew for up to one additional <br />year. The total maximum amount of the agreement was $6 million. Since September <br />2018, the contract was amended to authorize the expenditure of contingency funds, to <br />move contingency funds from Program Year Two to Program Year One, and to renew <br />and extend the contract term. <br />On February 18, 2020, the City Council approved an amendment to the agreement to <br />increase funding for the operation of The Link shelter (The Link) in the amount of <br />$398,123, to utilize the new Homeless Emergency Aid Program funds in an amount not <br />to exceed $2,300,000 to count toward the total amount of $6,398,123, and to execute an <br />amendment to the Emergency Solutions Grant agreement increasing the amount of the <br />funding for The Link by $5,910.43 that would also count toward the $6,398,123 for The <br />Link. The increase in funds requested by Mercy House for unanticipated facility <br />improvements and operation costs covered both Year One deficits and projected costs <br />for Year Two through October 1, 2020. <br />