HomeMy WebLinkAboutItem 21 - Amendment to Operating Agreement with Salvation Army Community Development Agency
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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
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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