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Community Development Agency <br />santa-ana.org/cd <br />Item # 34 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />April 5, 2022 <br />TOPIC: Third Amendment to Operating Agreement with Salvation Army <br />AGENDA TITLE: <br />Approve a third amendment to Salvation Army agreement to extend the operation of a <br />temporary shelter at the Hospitality House (Non-General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute: <br />1. A third amendment to the agreement with Salvation Army for the operation of a <br />temporary shelter at the Hospitality House, extending the term for up to four additional <br />months in the amount of $400,000, for a total aggregate amount not to exceed <br />$1,440,00, subject to non-substantive changes approved by the City Manager and <br />City Attorney. <br />2. A third amendment to the ESG-CV funding agreement with Salvation Army to use <br />$400,000 to operate the shelter at the Hospitality House, for a total aggregate amount <br />not to exceed $1,440,000, subject to non-substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />Due to outstanding litigation related to the work stoppage and other construction delays <br />at the Carnegie Navigation Center, staff is unsure when the site will be open and <br />operational. An amendment to the agreement with the Salvation Army will provide for the <br />continuity of care for shelter guests to remain at the temporary shelter until a Certificate <br />of Occupancy is achieved and shelter guests can be transferred to the new site. The <br />daily census count of individuals was less than 75 for the first few months, thereby <br />reducing the overall costs to the City. The addition of $400,000 in new funds to the existing <br />contract will be sufficient for a four-month extension. <br />On June 15, the City Council approved an agreement with the Salvation Army to operate <br />a temporary 75-bed homeless shelter at 818 E Third Street in Santa Ana, in the amount <br />of $390,000 for an anticipated 90-day period, subject to extension through December 31, <br />2021, for a total not to exceed amount of $780,000. On November 16, the City Council <br />approved an amendment to the agreement to continue operation of the temporary shelter <br />through January 31, 2022 for the monthly extension rate of $130,000, bringing the total <br />agreement not-to-exceed amount to $910,000. On January 18, 2022, the City Council