HomeMy WebLinkAboutItem 22 - Amendment to Operating Agreement with Illumination Foundation Community Development Agency
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Item # 22
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 16, 2021
TOPIC: Amendment to Operating Agreement with Illumination Foundation
AGENDA TITLE:
Approve a Second Amendment to Illumination Foundation Agreement to Operate a
Temporary Shelter at the Fullerton Recuperative Care Center for up to Two Additional
Months
RECOMMENDED ACTION
Authorize the City Manager to execute a second 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 two months through January 31, 2022,
subject to non-substantive changes approved by the City Manager and City Attorney.
DISCUSSION
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 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 only two months, and adding only $300,000 to the contract
amount, for an overall not-to-exceed amount of $1,800,000. Two additional months of
operation at the temporary site is necessary for the completion of the Homeless
Navigation Center and for the continuity of care for shelter guests. A Temporary
Certificate of Occupancy (TCO) for the Homeless Navigation Center is anticipated by
January 2022. Once a TCO is issued, guests will be transferred to the new site and the
City will no longer utilize the Fullerton Recuperative Care Center.
The temporary shelter located at the Fullerton Recuperative Care Center has had a daily
census count of less than 75 since opening, thereby reducing the monthly cost to the
Amendment to Operating Agreement with Illumination Foundation
November 16, 2021
Page 2
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City. It is estimated that the additional $300,000 that was added to the contract on
September 7, 2021 is sufficient to continue operations through January 2022. Therefore,
no additional funding is needed.
FISCAL IMPACT
There is no fiscal impact associated with this item
EXHIBIT(S)
1. Amendment to agreement with Illumination Foundation to operate the Fullerton
Recuperative Care Center as the Link temporary shelter
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
SECOND AMENDMENT TO OPERATING AGREEMENT WITH
THE ILLUMINATION FOUNDATION FOR USE OF
THE FULLERTON RECUPERATIVE CARE CENTER
THIS SECOND AMENDMENT to the above-referenced agreement is entered into on November
16, 2021, 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. In accordance with the terms and conditions of said Agreement, as amended, the Parties
desire to amend Section 2 – Effectiveness and Term of Agreement, to extend the Term
of 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 November 30, 2021, to January 31,
2022.
2. 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.
{Signatures on following page}
EXHIBIT 1
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 ILLUMINATION FOUNDATION
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