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HomeMy WebLinkAboutItem 34 - Third Amendment to Operating Agreement with Salvation Army Community Development Agency santa-ana.org/cd Item # 34 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 5, 2022 TOPIC: Third Amendment to Operating Agreement with Salvation Army AGENDA TITLE: Approve a third amendment to Salvation Army agreement to extend the operation of a temporary shelter at the Hospitality House (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute: 1. A third amendment to the agreement with Salvation Army for the operation of a temporary shelter at the Hospitality House, extending the term for up to four additional months in the amount of $400,000, for a total aggregate amount not to exceed $1,440,00, subject to non-substantive changes approved by the City Manager and City Attorney. 2. A third amendment to the ESG-CV funding agreement with Salvation Army to use $400,000 to operate the shelter at the Hospitality House, for a total aggregate amount not to exceed $1,440,000, 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, staff is unsure when the site will be open and operational. An amendment to the agreement with the Salvation Army 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 daily census count of individuals was less than 75 for the first few months, thereby reducing the overall costs to the City. The addition of $400,000 in new funds to the existing contract will be sufficient for a four-month extension. On June 15, 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. On November 16, the City Council approved an amendment to the agreement to continue operation of the temporary shelter through January 31, 2022 for the monthly extension rate of $130,000, bringing the total agreement not-to-exceed amount to $910,000. On January 18, 2022, the City Council Third Amendment to Operating Agreement with Salvation Army April 5, 2022 Page 2 2 5 8 7 approved a second amendment in the amount of $130,000 for one month, through February 28, 2022, for a total amount not to exceed $1,040,000. The Hospitality House provides shelter for 75 men per night, and follows the City’s referral process and the no walk-in policy. The shelter provides men a clean, 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. FISCAL IMPACT Funds in the amount of $400,000 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. Third amendment to agreement with Salvation Army to operate the Hospitality House as a temporary shelter 2. Third amendment to the funding 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 THIRD AMENDMENT TO OPERATING AGREEMENT WITH THE SALVATION ARMY TO OPERATE THE HOSPITALITY HOUSE SHELTER THIS THIRD AMENDMENT to the above-referenced agreement is entered into on April 5, 2022, 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.The parties entered into a First Amendment to said Agreement No. A-2021-106-01 dated November 16, 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 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. D.In accordance with the terms and conditions of said Agreement, the Parties d esire 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, Compensation, subsections (a) and (b), shall be amended to increase the maximum amount of compensation by four hundred thousand dollars ($400,000.00), such that the total sum to be expended under said Agreement shall not exceed one-million four hundred and forty thousand dollars ($1,440,000.00) during the Term of said Agreement, subject to the termination provisions in the First Amendment to said Agreement. 3.Except as modified by this Third Amendment, all terms and conditions of said Agreement, as modified by the First and Second Amendments, shall remain in full force and effect. EXHIBIT 1 Page 2 of 2 IN WITNESS WHEREOF, the Parties hereto have executed this Third 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 THIRD AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE SALVATION ARMY FOR USE OF EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS THIS THIRD AMENDMENT to the above-referenced agreement is entered into on April 5, 2022, 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.The parties entered into a First Amendment to said Agreement No. A-2021-106-01 dated November 16, 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-2021-106-02 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. D.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 Sections III and III(a), Disbursement and Funds, shall be amended to increase the maximum amount of compensation by four hundred thousand dollars ($400,000.00), such that the total sum to be expended under said Agreement shall not exceed one million four hundred and forty thousand dollars ($1,440,000.00) during the Term of said Agreement, subject to the termination provisions in the First Amendment to said Agreement. 3.Except as modified by this Third Amendment, all terms and conditions of said Agreement, except as modified by the First and Second Amendments, shall remain in full force and effect. EXHIBIT 2 Page 2 of 2 IN WITNESS WHEREOF, the Parties hereto have executed this Third 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