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HomeMy WebLinkAboutItem 21 - Amendment to Operating Agreement with Salvation Army Community Development Agency santa-ana.org/cda Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 16, 2021 TOPIC: Amendment to Operating Agreement with Salvation Army AGENDA TITLE: Approve an Amendment to Agreement with Salvation Army to Operate a Temporary Shelter at the Hospitality House for One Additional Month (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute: 1. An amendment to the agreement with Salvation Army to continue to operate a temporary shelter at the Hospitality House through January 31, 2022 for an additional amount of $130,000, for a total aggregate amount not to exceed $910,000, subject to non-substantive changes approved by the City Manager and City Attorney. 2. A first amendment, and any future amendments, to the agreement with Salvation Army to use $130,000 of additional ESG-CV funds to operate the shelter at the Hospitality House through January 31, 2022, for a total aggregate amount not to exceed $910,000, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On June 15, 2021, the City Council approved an agreement with the Salvation Army to operate a temporary 75-bed homeless shelter at 818 E Third Street in Santa Ana, in the amount of $390,000 for an anticipated 90-day period, subject to extension through December 31, 2021, for a total not to exceed amount of $780,000. The monthly extension cost is at the rate of $130,000, bringing the total agreement to a not to exceed amount of $910,000. The Hospitality House has provided shelter for approximately 50 men since opening, follows the City’s referral process, and does not accept walk-ins. The shelter provides men a clean and safe personal bed space, three nourishing meals per day, and the opportunity to work with a professional Housing Navigator to expedite their placement in permanent housing. Amendment to Operating Agreement with Salvation Army November 16, 2021 Page 2 2 2 3 5 The Homeless Navigation Center is slated to open in January 2022. It is therefore necessary for this temporary site to be extended through the final stages of construction. Utilizing this same site will provide the continuity of care for shelter guests without any interruption of service. FISCAL IMPACT Funds in the amount of $130,000 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. Amendment to agreement with Salvation Army to operate the Hospitality House as a temporary shelter 2. Amendment to agreement with Salvation Army for use of ESG-CV funds to operate the Hospitality House as a temporary shelter Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager Page 1 of 2 FIRST AMENDMENT TO OPERATING AGREEMENT WITH THE SALVATION ARMY TO OPERATE THE HOSPITALITY HOUSE SHELTER THIS FIRST AMENDMENT to the above-referenced agreement is entered into on November 16, 2021, by and between The Salvation Army (“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 an Agreement dated June 15, 2021, by which Contractor agreed to administer and operate the Hospitality House to temporarily house clients referred by the City and Street Outreach teams (“Agreement”). B.In accordance with the terms and conditions of said Agreement, the Parties desire to 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, except as herein modified, the parties agree as follows: 1.Section 2(b), Effectiveness and Term of Agreement, shall be amended to extend the end date of the Term of said Agreement through the date upon which the City decides in its sole discretion to complete the transfer of City guests at the Hospitality House to the new Carnegie Navigation Center, which shall be no later than January 31, 2022, unless terminated in accordance with Section 15. City shall provide Contractor with fourteen (14) day written notice of the final date of transfer of City guests to the new Carnegie Navigation Center, which date shall serve as the end of the Term of this Agreement. If necessary, the Term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. 2.Section 3, Compensation, subsections (a) and (b), shall be amended to increase the maximum amount of compensation by one-hundred and thirty thousand dollars ($130,000.00), such that the total sum to be expended under said Agreement shall not exceed nine-hundred and ten thousand dollars ($910,000.00) during the Term of said Agreement. Contractor shall not be limited to a maximum amount of compensation per month, so long as Contractor remains within the total not to exceed amount of compensation during the Term of said Agreement. This total not to exceed amount of compensation is not guaranteed to Contractor. Rather, Contractor will only be paid for sufficient services provide during the Term of said Agreement. Once said Agreement is terminated, or the Term is ended as detailed in section 2(b) above, the City shall not be responsible for any further payments to Contractor other than payment for services provided by Contractor during the Term of the Agreement. EXHIBIT 1 Page 2 of 2 3.Except as modified by this First Amendment, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this First 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 SALVATION ARMY SONIA R. CARVALHO City Attorney By:___________________________ _______________________________ RYAN O. HODGE Name: Assistant City Attorney Title: RECOMMENDED FOR APPROVAL ________________________________ STEVEN A. MENDOZA Executive Director Community Development Agency EXHIBIT 1 Page 1 of 2 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE SALVATION ARMY FOR USE OF EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS THIS FIRST AMENDMENT to the above-referenced agreement is entered into on November 16, 2021, by and between The Salvation Army (“Subrecipient”), 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-2021-106, dated June 15, 2021, by which Contractor agreed to use ESG-CV funds to administer and operate the Hospitality House to temporarily house clients referred by the City and Street Outreach teams (“Agreement”). B.In accordance with the terms and conditions of said Agreement, the Parties desire to 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, except as herein modified, the parties agree as follows: 1.Section II, Term of Agreement, shall be amended to extend the end date of the Term of said Agreement through the date upon which the City decides in its sole discretion to complete the transfer of City guests at the Hospitality House to the new Carnegie Navigation Center, which shall be no later than January 31, 2022, unless terminated earlier in accordance with Section 15.City shall provide Contractor with fourteen (14) day written notice of the final date of transfer of City guests to the new Carnegie Navigation Center, which date shall serve as the end of the Term of this Agreement. If necessary, the Term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. 2.Recitals J and K, and Sections III and III(a), Disbursement and Funds, shall be amended to increase the maximum amount of compensation by one hundred and thirty thousand dollars ($130,000.00), such that the total sum to be expended under said Agreement shall not exceed nine hundred and ten thousand dollars ($910,000.00) during the Term of said Agreement. Contractor shall not be limited to a maximum amount of compensation per month, so long as Contractor remains within the total not to exceed amount of compensation during the Term of said Agreement. This total not to exceed amount of compensation is not guaranteed to Contractor. Rather, Contractor will only be paid for sufficient services provided during the Term of said Agreement. Once said Agreement is terminated, or the Term is ended as detailed in section II above, the City shall not be responsible for any further payments to Contractor other than payment for services provided by Contractor during the Term of the Agreement. EXHIBIT 2 Page 2 of 2 3. Except as modified by this First Amendment, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this First 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 SALVATION ARMY SONIA R. CARVALHO City Attorney By:___________________________ _______________________________ RYAN O. HODGE Name: Assistant City Attorney Title: RECOMMENDED FOR APPROVAL ________________________________ STEVEN A. MENDOZA Executive Director Community Development Agency EXHIBIT 2