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Item # 22
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 19, 2021
TOPIC: Approve Fourth Amendment to Mercy House Agreement
AGENDA TITLE:
Approve fourth amendment to agreement with Mercy House Living Centers, Inc. in the
additional amount of $153,214.72 for the operation of The Link Shelter (Non-General
Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the fourth amendment to the agreement with the
Mercy House Living Centers, Inc. to increase funding for the operation of the Link Shelter,
in the amount of $153,214.72 for a total amount not to exceed $6,551,337.72 subject to
non-substantive changes approved by the City Manager and City Attorney.
DISCUSSION
On September 18, 2018, the City Council approved an agreement with Mercy House
Living Centers, Inc. (Mercy House) to operate an interim Emergency Homeless Shelter
in Santa Ana for a period of one year, with the option to renew for up to one additional
year. The total maximum amount of the agreement was $6 million. Since September
2018, the contract was amended to authorize the expenditure of contingency funds, to
move contingency funds from Program Year Two to Program Year One, and to renew
and extend the contract term.
On February 18, 2020, the City Council approved an amendment to the agreement to
increase funding for the operation of The Link shelter (The Link) in the amount of
$398,123, to utilize the new Homeless Emergency Aid Program funds in an amount not
to exceed $2,300,000 to count toward the total amount of $6,398,123, and to execute an
amendment to the Emergency Solutions Grant agreement increasing the amount of the
funding for The Link by $5,910.43 that would also count toward the $6,398,123 for The
Link. The increase in funds requested by Mercy House for unanticipated facility
improvements and operation costs covered both Year One deficits and projected costs
for Year Two through October 1, 2020.
Approve Fourth Amendment to Mercy House Agreement
January 19, 2021
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Until the new permanent shelter opens, The Link will continue operations as usual.
Illumination Foundation took over as operator beginning October 15, 2020. To cover the
operation costs of the extension for the period of October 1 to October 14, 2020, Mercy
House is requesting $153,214.72..
FISCAL IMPACT
Funds in the amount of $153,214.72 are available in the Homeless Emergency Aid
Program Grant, payment to subagent account (No. 12218700-69135) for expenditure in
the current fiscal year.
EXHIBIT(S)
1. Amendment with Mercy House Living Centers Inc. to operate an Interim Shelter
Submitted By:
Steven A. Mendoza, Assistant City Manager - Community Development Agency
Approved By: Kristine Ridge, City Manager
EXHIBIT 1
EXHIBIT 1