HomeMy WebLinkAboutItem 21 - Amendment to Operating Agreement with Salvation Army Community Development Agency
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Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 18, 2022
TOPIC: Amendment to Operating Agreement with Salvation Army
AGENDA TITLE:
Approve a Second Amendment to Salvation Army Agreement to Extend the Operation of
a Temporary Shelter at the Hospitality House for One Month (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute:
1. A second amendment to the agreement with Salvation Army for the operation of a
temporary shelter at the Hospitality House, extending the term for an additional month
at the amount of $130,000 per month, for a total aggregate amount not to exceed
$1,040,000, subject to non-substantive changes approved by the City Manager and
City Attorney.
2. A second amendment to the funding agreement with Salvation Army to use $130,000
per month of additional ESG-CV funds to operate the shelter at the Hospitality House,
for a total aggregate amount not to exceed $1,040,000, subject to non-substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
On June 15, 2021, 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. The Hospitality House
has provided shelter for approximately 50 men since opening, follows the City’s referral
process, and does not accept walk-ins. 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.
Amendment to Operating Agreement with Salvation Army
January 18, 2022
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Unforeseen circumstances, including COVID-19, heavy rainstorms over the holidays, and
the supply chain crisis, have delayed the opening of the Homeless Navigation
Center. For this reason, it is necessary for the temporary site to be extended through the
final stages of construction. Utilizing this same site will provide the continuity of care for
shelter guests without any interruption of service.
FISCAL IMPACT
Funds in the amount of $130,000 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. Amendment to agreement with Salvation Army to operate the Hospitality House
as a temporary shelter.
2. 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
SECOND AMENDMENT TO OPERATING AGREEMENT WITH
THE SALVATION ARMY TO OPERATE
THE HOSPITALITY HOUSE SHELTER
THIS SECOND AMENDMENT to the above-referenced agreement is entered into on January 18,
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. In accordance with the terms and conditions of said Agreement, 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 from January 31, 2022, to February 28,
2022, subject to the termination provisions in the First Amendment to said Agreement.
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 one-million and forty
thousand dollars ($1,040,000.00) during the Term of said Agreement, subject to the
termination provisions in the First Amendment to said Agreement.
3. Except as modified by this Second Amendment, all terms and conditions of said Agreement,
as modified by the First Amendment, shall remain in full force and effect.
Page 2 of 2
IN WITNESS WHEREOF, the Parties hereto have executed this Second 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
Page 1 of 2
SECOND AMENDMENT TO AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND THE SALVATION ARMY
FOR USE OF EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS
THIS SECOND AMENDMENT to the above-referenced agreement is entered into on January 18,
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. In accordance with the terms and conditions of said Agreement, 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 from January 31, 2022, to February 28, 2022, subject to the
termination provisions in the First Amendment to said Agreement.
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 one-hundred and thirty thousand dollars
($130,000.00), such that the total sum to be expended under said Agreement shall not exceed
one-million and forty thousand dollars ($1,040,000.00) during the Term of said Agreement,
subject to the termination provisions in the First Amendment to said Agreement.
3. Except as modified by this Second Amendment, all terms and conditions of said Agreement,
except as modified by the First Amendment, shall remain in full force and effect.
Page 2 of 2
IN WITNESS WHEREOF, the Parties hereto have executed this Second 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