HomeMy WebLinkAboutItem 32 - Fourth Amendment to Operating Agreement with Illumination Foundation Community Development Agency
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Item # 32
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 5, 2022
TOPIC: Fourth Amendment to Operating Agreement with Illumination Foundation
AGENDA TITLE:
Approve a Fourth Amendment to Illumination Foundation Agreement to Operate a
Temporary Shelter at the Fullerton Recuperative Care Center for up to Four Additional
Months (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute a fourth amendment to the agreement with
Illumination Foundation to extend the term to operate a temporary shelter at the
Fullerton Recuperative Care Center for up to an additional four months through June
30, 2022, at the rate of not to exceed $1,100,000 based upon costs and
documentation, and a total aggregate amount not to exceed $3,278,000, subject to
non-substantive changes approved by the City Manager and City Attorney.
2. Authorize the City Manager to execute a fourth amendment to the ESG-CV funding
agreement with Illumination Foundation to pay a not-to-exceed amount of $1,100,000
based upon costs and documentation, and a total aggregate amount not to exceed
$3,278,000, to extend the operation of the shelter at the Fullerton Recuperative Care
Center, subject to non-substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
Due to outstanding litigation related to the work stoppage and other construction delays
at the Carnegie Navigation Center, the City is unsure when the site will be open and
operational. An amendment to the Illumination Foundation agreement will provide for the
continuity of care for shelter guests to remain at the temporary shelter until a Certificate
of Occupancy is achieved and shelter guests can be transferred to the new site. The
same funds that were anticipated to be used for the operation of the Carnegie Navigation
Center will instead be used for the extension of the temporary shelter.
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 guest 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. On September 7, 2021, staff recommended that the
Fourth Amendment to Operating Agreement with Illumination Foundation
April 5, 2022
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City Council approve an amendment to the agreement with Illumination Foundation to
continue to operate a temporary shelter at the Fullerton Recuperative Care Center for up
to four more months and add $600,000 to the contract amount, for an overall not-to-
exceed amount of $2,100,000. The City Council approved an amendment for two months
only, and added $300,000 to the contract amount, for an overall not-to-exceed amount of
$1,800,000. On November 16, 2021, the City Council approved an amendment to the
agreement with Illumination Foundation to extend the term of the contract for up to an
additional two months, through January 31, 2022. No additional funds were added at that
time because the daily census count of individuals was less than 75, thereby reducing the
monthly costs to the City. On January 18, 2022, the City Council approved an amendment
to the agreement with Illumination Foundation to extend the term of the contract for up to
an additional month at the per diem rate of $135 for an additional amount not to exceed
$378,000 and a total aggregate amount not to exceed $2,178,000.
The Fullerton Recuperative Care Center provides beds for men, women and pets,
following the City’s referral process and no walk-in policy. As the selected operator of the
new Navigation Center, staff will transfer along with guests to the new site, without any
interruption to services.
FISCAL IMPACT
Funds in the amount of $1,100,000 for the fourth amendment to the agreement 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. Fourth Amendment to agreement with Illumination Foundation to operate the
Fullerton Recuperative Care Center as the Link temporary shelter
2. Fourth Amendment to funding agreement with Illumination Foundation for use of
ESG-CV funds to operate the Recuperative Care Center as a temporary shelter
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
Page 1 of 2
FOURTH AMENDMENT TO OPERATING AGREEMENT WITH
THE ILLUMINATION FOUNDATION FOR USE OF
THE FULLERTON RECUPERATIVE CARE CENTER
THIS FOURTH AMENDMENT to the above-referenced agreement is entered into on April 5,
2022, 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.The parties entered into a First Amendment to said Agreement No. A-2021-174 dated
September 8, 2021, in order to extend the Term of said Agreement and to increase the
maximum amount of Compensation for said Agreement.
C.The parties entered into a Second Amendment to said Agreement No. A-2021-228
dated November 16, 2021, in order to again extend the Term of said Agreement.
D.The parties entered into a Third Amendment to said Agreement No. A -2022-006-01
dated January 18, 2022, in order to again extend the Term of said Agreement and
increase the maximum amount of Compensation for said Agreement.
E.In accordance with the terms and conditions of said Agreement, as amended, the Parties
desire to again 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, as amended, except as herein modified, the parties agree
as follows:
1.Section 2(b), Effectiveness and Term of Agreement, shall be amended to extend the potential
no later than end date of the Term of said Agreement to June 30, 2022, subject to the
termination provisions in the First Amendment to said Agreement. Said extension shall apply
to any and all services provided under said Agreement since February 28, 2022.
2.Section 3(b), Compensation, shall be amended to increase the maximum amount of
compensation by one million one hundred thousand dollars ($1,100,000.00), such that the total
sum to be expended under said Agreement shall not exceed three-million two-hundred and
seventy-eight thousand dollars ($3,278,000.00) during the Term of said Agreement, subject to
the termination provisions in the First Amendment to said Agreement.
EXHIBIT 1
Page 2 of 2
3. Except as modified by this Fourth Amendment, all terms and conditions of said Agreement, as
modified by the First, Second, and Third Amendments, shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Fourth 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: JOHN H. ING
Assistant City Attorney Title: Chief Financial Officer
RECOMMENDED FOR APPROVAL
________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency
EXHIBIT 1
Page 1 of 2
FOURTH AMENDMENT TO AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND THE ILLUMINATION FOUNDATION
FOR USE OF EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS
THIS FOURTH AMENDMENT to the above-referenced agreement is entered into on April 5,
2022, 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-2021-047-02, dated June 1, 2021, by which
Contractor agreed to use ESG-CV funds 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.The parties entered into a First Amendment to said Agreement No. A-2021-047-02-01
dated September 30, 2021, in order to extend the Term of said Agreement and to
increase the maximum amount of Compensation for said Agreement.
C.The parties entered into a Second Amendment to said Agreement No. A-2021-228
dated November 16, 2021, in order to again extend the Term of said Agreement.
D.The parties entered into a Third Amendment to said Agreement No. A-2022-006-02
dated January 18, 2022, in order to again extend the Term of said Agreement and to
increase the maximum amount of Compensation for said Agreement.
E.In accordance with the terms and conditions of said Agreement, as amended, the Parties
desire to again 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, as amended, except as herein modified, the parties agree
as follows:
1.Section II, Term of Agreement, shall be amended to extend the potential no later than end date
of the Term of said Agreement to June 30, 2022, subject to the termination provisions in the
First Amendment to said Agreement. Said extension shall apply to any and all services
provided under said Agreement since February 28, 2022.
2.Recitals J and K, and S ection III and III(a), Disbursement and Funds, shall be amended to
increase the maximum amount of compensation by one million one hundred thousand dollars
($1,100,000.00), such that the total sum to be expended under said Agreement shall not exceed
three-million two-hundred and seventy-eight thousand dollars ($3,278,000.00) during the
Term of said Agreement, subject to the termination provisions in the First Amendment to said
EXHIBIT 2
Page 2 of 2
Agreement.
3. Except as modified by this Fourth Amendment, all terms and conditions of said Agreement, as
modified by the First, Second, and Third Amendments, shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Fourth 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: JOHN H. ING
Assistant City Attorney Title: Chief Financial Officer
RECOMMENDED FOR APPROVAL
________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency
EXHIBIT 2