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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: REALLOCATION OF EMERGENCY SHELTER GRANT FUNDS l:~ CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1 S` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached amendment to the 2008-2009 Emergency Shelter Grant agreement with Mercy House Transitional Living Centers, Inc. to increase the grant amount by $7,245, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana undertakes a yearly process of allocating Emergency Shelter Grant Funds (ESG), which are received from the U. S. Department of Housing and Urban Development (HUD). Part of this process involves requesting proposals from non-profit organizations. The City enters into agreements with these non-profits to provide essential services to the homeless and short-term homeless prevention assistance on behalf of the City. On April 7, 2008, the City Council awarded ESG funds for Fiscal Year 2008-2009 to 13 organizations for a total of $297,725. An additional $7,245 was allotted for the City's administration costs of the program, thereby allocating the entire entitlement from HUD for 2008-2009. One proposal submitted by Mercy House Transitional Living Centers, Inc. was to operate the Cold Weather Armory Program. The Council approved a $13,000 grant allocation for this program. Staff is recommending that the $7,245 allocated for the City's administration costs be reallocated to the Cold Weather Armory program for a total grant of $20,245. The City will be using unexpended ESG administration funds from prior years to provide for the staff necessary to administer the program requirements during 2008-2009. 25B-1