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A-2021-106-01 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 Tenn 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: 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. Page t of 2