HomeMy WebLinkAboutItem 20 - Third Amendment to Operating Agreement with Illumination Foundation Community Development Agency
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Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 18, 2022
TOPIC: Third Amendment to Operating Agreement with Illumination Foundation
AGENDA TITLE:
Approve a Third Amendment to Illumination Foundation Agreement to Operate a
Temporary Shelter at the Fullerton Recuperative Care Center for up to One Additional
Month (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute a third amendment to the agreement with
Illumination Foundation to extend the term to operate a temporary shelter at the
Fullerton Recuperative Care Center for up to an additional month through February
28, 2022, at the per diem rate of $135 per guest for an additional amount not to exceed
$378,000 and a total aggregate amount not to exceed $2,178,000, subject to non-
substantive changes approved by the City Manager and City Attorney.
2. Authorize the City Manager to execute a third amendment to the funding agreement
with Illumination Foundation to pay $135 per diem for up to 100 guests, at an amount
not to exceed $378,000, and a total aggregate amount not to exceed $2,178,000, of
additional ESG-CV funds to extend the operation of the shelter at the Fullerton
Recuperative Care Center, subject to non-substantive changes approved by the City
Manager and City Attorney.
DISCUSSION
On April 6, 2021, the City Council approved an agreement with Illumination Foundation
to operate a temporary shelter for $230,000 per month for 75 guest and a per diem rate
of $55 per guest in excess of 75, in an amount not to exceed $1,500,000 from May 1,
2021 through September 30, 2021.
On September 7, 2021, staff recommended that City Council approve an amendment to
the agreement with Illumination Foundation to continue to operate a temporary shelter at
the Fullerton Recuperative Care Center for up to four more months and add $600,000 to
the contract amount, for an overall not to exceed amount of $2,100,000. The City Council
approved an amendment for only two months, and added only $300,000 to the contract
Third Amendment to Operating Agreement with Illumination Foundation
January 18, 2022
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amount, for an overall not to exceed amount of $1,800,000. On November 16, 2021, the
City Council approved an amendment to the agreement with Illumination Foundation to
extend the term of the contract for up to an additional two months, through January 31,
2022. No additional funds were added at that time because the daily census count of
individuals was less than 75, thereby reducing the monthly costs to the City.
Unforeseen circumstances, including COVID-19, the heavy rainstorm over the holidays,
and the supply chain crisis, has delayed the opening of the Homeless Navigation Center.
An amendment to the Illumination Foundation agreement will provide for the continuity of
care for shelter guests to remain at the temporary shelter and to benefit from essential
on-site medical services. Once a Temporary Certificate of Occupancy is issued, guests
will be transferred to the new site and the City will no longer utilize the Fullerton
Recuperative Care Center.
FISCAL IMPACT
Funds in the amount of $378,000 for the third amendment to the agreement are available
in the Emergency Solutions Grant-CV grant, Payment to Subagent account (no.
13518789-69135) for expenditure in the current fiscal year.
EXHIBIT(S)
1. Third Amendment to agreement with Illumination Foundation to operate the
Fullerton Recuperative Care Center as the Link temporary shelter.
2. Third Amendment to funding agreement with Illumination Foundation for use of
ESG-CV funds to operate the Recuperative Care Center as a temporary shelter.
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
Page 1 of 2
THIRD AMENDMENT TO OPERATING AGREEMENT WITH
THE ILLUMINATION FOUNDATION FOR USE OF
THE FULLERTON RECUPERATIVE CARE CENTER
THIS THIRD AMENDMENT to the above-referenced agreement is entered into on January 18,
2022, by and between The Illumination Foundation (“Contractor”), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California (“City”).
RECITALS
A. The parties entered into Agreement No. A-2021-046, dated April 6, 2021, by which
Contractor agreed to administer and operate a portion of the Fullerton Recuperative
Care Center to temporarily house clients referred by the City and Street Outreach teams
(“Agreement”).
B. The parties entered into a First Amendment to said Agreement No. A-2021-174 dated
September 8, 2021, in order to extend the Term of said Agreement and to increase the
maximum amount of Compensation for said Agreement.
C. The parties entered into a Second Amendment to said Agreement No. A-2021-228
dated November 16, 2021, in order to again extend the Term of said Agreement.
D. In accordance with the terms and conditions of said Agreement, as amended, the Parties
desire to again amend Section 2 – Effectiveness and Term of Agreement, to extend the
Term of said Agreement, and Section 3 – Compensation, to increase the maximum
amount of Compensation for said Agreement.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions of said Agreement, as amended, except as herein modified, the parties agree
as follows:
1. Section 2(b), Effectiveness and Term of Agreement, shall be amended to extend the potential
no later than end date of the Term of said Agreement from January 31, 2022, to February 28,
2022, subject to the termination provisions in the First Amendment to said Agreement.
2. Section 3(b), Compensation, shall be amended to increase the maximum amount of
compensation by three-hundred and seventy-eight thousand dollars ($378,000.00), such that
the total sum to be expended under said Agreement shall not exceed two-million one-hundred
and seventy-eight thousand dollars ($2,178,000.00) during the Term of said Agreement,
subject to the termination provisions in the First Amendment to said Agreement.
3. Except as modified by this Third Amendment, all terms and conditions of said Agreement, as
modified by the First and Second Amendments, shall remain in full force and effect.
Page 2 of 2
IN WITNESS WHEREOF, the Parties hereto have executed this Third Amendment to said
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
_______________________________ ______________________________
DAISY GOMEZ KRISTINE RIDGE
Clerk of the Council City Manager
APPROVED AS TO FORM THE ILLUMINATION FOUNDATION
SONIA R. CARVALHO
City Attorney
By:___________________________ _______________________________
RYAN O. HODGE Name: John H. Ing
Assistant City Attorney Title: Chief Financial Officer
RECOMMENDED FOR APPROVAL
________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency
Page 1 of 2
THIRD AMENDMENT TO AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND THE ILLUMINATION FOUNDATION
FOR USE OF EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS
THIS THIRD AMENDMENT to the above-referenced agreement is entered into on January 18,
2022, by and between The Illumination Foundation (“Contractor”), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California (“City”).
RECITALS
A. The parties entered into Agreement No. A-2021-047-02, dated June 1, 2021, by which
Contractor agreed to use ESG-CV funds to administer and operate a portion of the
Fullerton Recuperative Care Center to temporarily house clients referred by the City
and Street Outreach teams (“Agreement”).
B. The parties entered into a First Amendment to said Agreement No. A-2021-047-02-01
dated September 30, 2021, in order to extend the Term of said Agreement and to
increase the maximum amount of Compensation for said Agreement.
C. The parties entered into a Second Amendment to said Agreement No. A-2021-228
dated November 16, 2021, in order to again extend the Term of said Agreement.
D. In accordance with the terms and conditions of said Agreement, as amended, the Parties
desire to again amend Section II – Term of Agreement, to extend the Term of said
Agreement, and Section III – Disbursement of Funds, to increase the maximum amount
of Compensation for said Agreement.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions of said Agreement, as amended, except as herein modified, the parties agree
as follows:
1. Section II, Term of Agreement, shall be amended to extend the potential no later than end date
of the Term of said Agreement from January 31, 2022, to February 28, 2022, subject to the
termination provisions in the First Amendment to said Agreement.
2. Recitals J and K, and Section III and III(a), Disbursement and Funds, shall be amended to
increase the maximum amount of compensation by three-hundred and seventy-eight thousand
dollars ($378,000.00), such that the total sum to be expended under said Agreement shall not
exceed two-million one-hundred and seventy-eight thousand dollars ($2,178,000.00) during
the Term of said Agreement, subject to the termination provisions in the First Amendment to
said Agreement.
3. Except as modified by this Third Amendment, all terms and conditions of said Agreement, as
modified by the First and Second Amendments, shall remain in full force and effect.
Page 2 of 2
IN WITNESS WHEREOF, the Parties hereto have executed this Third Amendment to said
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
_______________________________ ______________________________
DAISY GOMEZ KRISTINE RIDGE
Clerk of the Council City Manager
APPROVED AS TO FORM THE ILLUMINATION FOUNDATION
SONIA R. CARVALHO
City Attorney
By:___________________________ _______________________________
RYAN O. HODGE Name: John H. Ing
Assistant City Attorney Title: Chief Financial Officer
RECOMMENDED FOR APPROVAL
________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency