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HomeMy WebLinkAboutItem 21 - Amendment to Operating Agreement with Illumination Foundation Community Development Agency santa-ana.org/cd Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 17, 2021 TOPIC: Amendment to Operating Agreement with Illumination Foundation AGENDA TITLE: Approve an Amendment to Illumination Foundation Agreement to Operate a Temporary Shelter at the Fullerton Recuperative Care Center for up to Four Months (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with Illumination Foundation to continue to operate a temporary shelter at the Fullerton Recuperative Care Center for an additional four months through January 31, 2022 for an additional amount of $600,000, for a total aggregate amount not to exceed $2,100,000, 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 guests 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. The temporary shelter is being operated from the closure of the Link Shelter to the opening of the Carnegie Homeless Navigation Center. It is anticipated that the Carnegie shelter construction may go beyond September 30 and it is therefore necessary for the temporary Fullerton site to continue to be used until the Carnegie shelter is finished. Utilizing this same site will provide the continuity of care for shelter guests without any interruption of service. The temporary shelter located at the Fullerton Recuperative Care Center has had a daily census count less than 75 since opening, thereby reducing the monthly cost to the City. It is estimated that an amount not to exceed $600,000 will be sufficient for costs at the Fullerton site, should it be needed through January, 2022. Operations at the Recuperative Care Center will continue status quo until the time that guests are transitioned to the permanent Carnegie Homeless Navigation Center, which is expected to open in November 2021. FISCAL IMPACT Funds in the amount of $600,000 are available in the Emergency Solutions Grant-CV grant, Payment to Subagent account (no.13518789 -69135) for expenditure in the current fiscal year. Amendment to Operating Agreement with Illumination Foundation August 17, 2021 Page 2 1 9 6 9 EXHIBIT(S) 1. Amendment to agreement with Illumination Foundation to operate the Fullerton Recuperative Care Center as the Link 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 ILLUMINATION FOUNDATION FOR USE OF THE FULLERTON RECUPERATIVE CARE CENTER THIS FIRST AMENDMENT to the above-referenced agreement is entered into on August , 2021, 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.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 from September 30, 2021, through the date upon which the City decides in its sole discretion to complete the transfer of City guests at the Fullerton Shelter 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.Section 3(b), Compensation, shall be amended to increase the maximum amount of compensation by six hundred thousand dollars ($600,000.00), such that the total sum to be expended under said Agreement shall not exceed two million one hundred thousand dollars ($2,100,000.00) 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 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. 3.Except as modified by this First Amendment, all terms and conditions of said Agreement shall remain in full force and effect. EXHIBIT 1 Page 2 of 2 3IN 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 ILLUMINATION FOUNDATION 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