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Community Development Agency <br />santa-ana.org/cd <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />September 7, 2021 <br />TOPIC: Approve an Operational Agreement with Illumination Foundation <br />AGENDA TITLE: <br />Approve a Three -Year Operational Agreement with Two, Two -Year Renewal Options with <br />Illumination Foundation to Operate a 200-Bed Year Round Homeless Navigation Center <br />at 1815 Carnegie Avenue in Santa Ana in an Amount Not to Exceed $10,893,885 for <br />Three Years, and Start -Up Costs Not to Exceed $75,000, for a Total Amount Not to <br />Exceed $10,968,885 (Non -General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute a three-year operator agreement, with two, <br />two-year renewal options with Illumination Foundation to operate a 200- bed year- <br />round Homeless Navigation Center at 1815 Carnegie Avenue in Santa Ana for <br />$3,577,366 in operational costs per year with an annual CPI adjustment of 1.5 <br />percent and a not -to -exceed amount of $75,000 in one-time start-up costs, for a total <br />not -to -exceed amount of $10,968,885 over three years, subject to non -substantive <br />changes approved by the City Manager and City Attorney. <br />2. Authorize the City Manager to execute any/all future funding agreements required <br />by state or federal agencies for the use of HHAP, PLHA, ESG-CV, ESG and any/all <br />other funds available. <br />DISCUSSION <br />In October of 2019, the City Council authorized the City Manager to execute a settlement <br />agreement with the Orange County Catholic Worker to resolve claims pertaining to <br />homelessness in United States District Court Case No. SACV 18-0155-DOC (JDE). This <br />action by the City Council followed the federal lawsuit that was filed by the Orange County <br />Catholic Worker to halt efforts by the County of Orange to remove homeless <br />encampments along the Santa Ana Riverbed and prevent neighboring cities from citing <br />or arresting those individuals who violated local ordinances prohibiting camping in public <br />areas. The settlement agreement acknowledged that the City currently operated the Link <br />shelter and intended to establish a new shelter with 200-250 beds to replace the Link <br />shelter. <br />To comply with the settlement agreement, the Santa Ana Community Development <br />Agency ("CDA") released a Request for Proposals (RFP) for the development, <br />