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HomeMy WebLinkAbout04 FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT - TEMPORARY SHELTER INCDocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 AGENDA REPORT (I MEETING DATE: TO: FROM: SUBJECT: II Ji I Ji Ie1:yi DECEMBER 5, 2023 Agenda Item os Reviewed: nB City Manager Finance Director J NICOLE BERNARD, ACTING CITY MANAGER & ACTING HOUSING AUTHORITY EXECUTIVE DIRECTOR TUSTIN HOUSING AUTHORITY FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT — TEMPORARY SHELTER, INC Request for authorization to enter into a First Amendment to the Contractor Services Agreement ("CSA") with Temporary Shelter, Inc., to extend the operations of the Tustin Temporary Emergency Shelter ("TTES") from July 1, 2024 through June 30, 2026 and approve a fund appropriation for separate consulting services to evaluate long term- shelter options. RECOMMENDATION The Tustin Housing Authority Commissioners take the following action: • Approve the 1st Amendment to the Contractor Services Agreement between Temporary Shelter, Inc. and the City of Tustin and Tustin Housing Authority. The City Council take the following actions: • Authorize the Acting City Manager and Acting Housing Authority Executive Director to execute the First Amendment to the Contractor Services Agreement with Temporary Shelter, Inc. to extend operations of the Tustin Temporary Emergency Shelter, subject to any non -substantive modifications as may be deemed necessary and/or recommended by the City Attorney; and • Appropriate $100,000 from the General Fund for City Attorney and consultants as needed to assist in the evaluation, analysis, and development of long-term shelter options. DocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 Agenda Report — Temporary Shelter, Inc. December 5, 2023 Page 2 FISCAL IMPACT The two-year contract extension amount is for $2,872,262. Permanent Local Housing Allocation ("PLHA") funds from 2023 and 2024, of approximately $1,200,000, will be utilized to assist in the funding to operate TTES during Fiscal Year ("FY") 24/25 and FY 25/26. Staff will continue to seek other potential operational funding sources and the additional funding needed to operate TTES will be identified during the FY 24/25 and FY 25/26 Budget approval process. BACKGROUND In compliance with an October 26, 2018 Federal District Court Settlement Agreement ("Settlement Agreement"), the City Council authorized on January 15, 2019, a Contractor Services Agreement ("CSX) with Temporary Shelter, Inc. ("TSI") to operate the Tustin Temporary Emergency Shelter ("TTES"), a fifty-seven (57) bed emergency shelter. The Settlement Agreement required the City to open a temporary emergency homeless shelter within 120 days from the date of the Settlement Agreement and the City selected the former Army Reserve site at 2345 Barranca Parkway as the location for the shelter. In April of 2020, in response to COVID's potential impact on caring for the homeless, the California Governor's Office of Emergency Services gave the City five (5) trailers, which equated to twenty (20) additional beds. This brought TTES's bed capacity to seventy-seven (77) beds. On June 1, 2021, in consideration of the impacts of the ongoing public health emergency, the City Council authorized a one-year extension of shelter operations with TSI. Beginning in FY 22/23, the California Department of Housing and Community Development (`HCD") required the City make the shelter operator selection process available and accessible to the public as a condition for utilizing PLHA funds towards TTES operations. The City released a Shelter Operator Request for Proposals ("RFP") on March 1, 2022. After reviewing responses to the RFP, a selection committee recommended TSI to operate TTES for a contract period from July 1, 2022 through June 30, 2024, and on May 17, 2022, the City Council approved entering into a new CSA with TSI. Since the City opened the shelter in March 2019, over 850 guests with ties to Tustin have been served and 35-40% of unduplicated guests have positively transitioned out of the Shelter into stable housing. As the City evaluates long-term shelter options, staff recommends extending the current operating agreement with TSI for another two years, from July 1, 2024 through June 30, 2026. TSI has submitted a budget of $1,375,789 for FY 24/25 and $1,496,473 for FY 25/26. TSI's current FY 23/24 budget is $1,262,378. During the first five plus years of operating TTES, TSI has provided meals and snacks as an in -kind contribution. Due to rising food costs, TSI is requesting reimbursement for approximately 60% of the expenses DocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 Agenda Report — Temporary Shelter, Inc. December 5, 2023 Page 3 associated with meals and snacks. This line item accounts for 5% of the 9% increase in the FY 24/25 budget when compared to the FY 23/24 budget. During this extended term for the ongoing operation of TTES, the City will engage consultant(s) with expertise in homeless services and programs to assist City staff in the analysis, evaluation, and development of potential long-term shelter options for homeless individuals and families with ties to Tustin. The First Amendment to the CSA with TSI is a two-year agreement extension and the City reserves the right to terminate the CSA at any time, with or without cause, upon sixty (60) days written notice. In addition, the First Amendment provides an option for one additional two-year term extension by mutual written agreement of the Parties, approved by the Tustin City Manager, no later than sixty (60) days prior to June 30, 2026. DocuSigned by: F I� visfapltic v has% v Christopher Koster Director of Economic Development Tustin Housing Authority Attachment: DocuSigned by: Jerry A MAI9 Deputy Director of Economic Development Tustin Housing Authority First Amendment Contractor Services Agreement with Temporary Shelter, Inc. DocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 FIRST AMENDMENT TO CONTRACTOR SERVICES AGREEMENT FOR CITY OF TUSTIN EMERGENCY SHELTER THIS FIRST AMENDMENT TO CONTRACTOR SERVICES AGREEMENT ("First Amendment"), is made and entered into by and between the CITY OF TUSTIN, a municipal corporation and TUSTIN HOUSING AUTHORITY, a California Housing Authority (collectively the "City"), and TEMPORARY SHELTER, INC., a California nonprofit public benefit corporation ("Contractor"), referred hereinafter collectively as the "Parties". RECITALS WHEREAS, the City pursuant to a court ordered settlement established the low -barrier Tustin Temporary Emergency Shelter ("TTES") at the site of the former Army Reserve at 2345 Barranca Parkway; and WHEREAS, the Contractor responded to a Request for Proposals for the operating period of July 1, 2022 through June 30, 2024, and the City selected Contractor to perform the services required by the City on the terms and conditions set forth in that certain Contractor Services Agreement ("Agreement"), which is incorporated herein by reference, by operating TTES for the City's homeless with the purpose of diverting the homeless from the streets of the City into a safe and sanitary emergency shelter; and WHEREAS, the Contractor has demonstrated it is qualified by experience, preparation, organization, staffing, and management to operate an emergency homeless shelter and related programs for the homeless, and can provide the necessary services under this Agreement and has agreed to provide such services; and WHEREAS, the Agreement will expire on June 30, 2024, and the Agreement provided for one additional two-year extension by mutual agreement of the parties, approved by the Tustin City Council, no later than sixty (60) days prior to the expiration of the Term; and WHEREAS, while the City is currently planning and investigating other options for long- term shelter — both in Tustin and outside of Tustin, the Parties desire to extend the term of the Agreement for the period of July 1, 2024 through June 30, 2026, subject to the terms and conditions of the First Amendment. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and of the promises and mutual agreements contained with the Agreement, which are incorporated in the operative provisions of this First Amendment by this reference as though set forth in their entirety, the Parties agree as follows: 1. Modification to the Agreement. The following sections of the Agreement are hereby amended as follows: 1799430.1 DocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 (a) Section 1.4 is hereby deleted in its entirety and replaced as follows: "1.4 Term. The date of July 1, 2024 shall be deemed the "Effective Date". The "Term" of this Agreement shall commence on the Effective Date and terminate on June 30, 2026 (the "Termination Date") unless otherwise extended by the parties. This Agreement may be extended for one additional two-year term by mutual written agreement of the Parties, approved by the Tustin City Manager, no later than sixty (60) days prior to the expiration of the Term." (b) Section 3.1 Compensation of Contractor is hereby deleted in its entirety and replaced as follows: "3.1 Compensation of Contractor. Services rendered during the Term of this Agreement, the Contractor shall be compensated and reimbursed only such amounts as are prescribed in Exhibit "A", in an amount not to exceed $2,872,262 ("Contractor Fee")." (c) Section 5.1 Representative of Contractor is hereby deleted in its entirety and replaced as follows: "5.1 Representative of Contractor. The following "Principal" of the Contractor is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Bryan Crain, President & CEO of Temporary Shelter, Inc. It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principal is a substantial inducement for the City to enter into this Agreement. Therefore, the foregoing Principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. The foregoing Principal may not be changed by Contractor without the express written approval of the City." (d) Section 10.1 Notice is hereby deleted in its entirety and replaced as follows: "10.1 Notice. Any notice under the Contractor Services Agreement shall be in writing, without implying the obligation to provide such notice. Any notice to be given or document to be delivered under the Contractor Services Agreement shall be deemed to have been duly given (a) when hand delivered to the other Party; (b) three (3) business days after such notice has been sent by U.S. Postal Service via certified mail, return receipt requested, postage prepaid, and addressed to the other Parry as set forth below; (c) the next business day after such notice has been deposited with an overnight delivery service reasonably approved by the Parties (Federal Express, Overnite Express, United Parcel Service and U.S. Postal Service are deemed approved by the Parties), postage prepaid, addressed to the Party to whom notice is being sent as set forth below with next -business -day delivery guaranteed, provided 2 1799430.1 DocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 that the sending Party receives a confirmation of delivery from the delivery service provider; or (d) when transmitted if sent by email to the email address set forth below; provided, however, that notices given by email shall not be effective unless either (i) a duplicate copy of such notice is promptly sent by any method permitted under this Section other than by email (provided that the recipient Parry need not receive such duplicate copy prior to any deadline set forth herein); or (ii) the receiving Party delivers a written confirmation of receipt for such notice either by email or any other method permitted under this Section. Any notice given by email shall be deemed received on the next business day if such notice is received after 5:00 p.m. (recipient's time) or on a non -business day. Unless otherwise provided in writing, all notices hereunder shall be addressed as follows: To Ci : CITY OF TUSTIN 300 Centennial Way Tustin, CA 92780 Attention: Nicole Bernard Email: nbernard@tustinca.org Tn f 'nntractnr- TEMPORARY SHELTER, INC. Attn: Bryan Crain 1 Hope Drive Tustin, CA 92782-0221 Email: bryan.crain@rescuemission.org 2. No Other Changes. This First Amendment is supplemental to the Agreement and is by reference made part of said Agreement. All sections of the Agreement not specifically amended herein shall remain in full force and effect. In the event of any conflict or inconsistency between the provisions of this First Amendment and any provisions of the Agreement, the provisions of this First Amendment shall in all respect govern and control. Unless otherwise specifically defined herein, terms used in this First Amendment shall have the same meaning as ascribed to them in the Agreement. The execution and delivery of this First Amendment shall not operate as a waiver of or, except as expressly set forth herein, an amendment of any right, power or remedy of either party in effect prior to the date hereof. 3. Counterparts. This First Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the Parties hereto may execute this First Amendment by signing any such counterpart. ««««««««,signature Page Follows»»»»»»»» 3 1799430.1 DocuSign Envelope ID: 63BOC69D-lBFD-4B3F-8FDF-D6C835E73DF6 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: Dated: APPROVED AS TO FORM: David E. Kendig City Attorney "City" CITY OF TUSTIN, a municipal corporation Nicole Bernard Acting City Manager TUSTIN HOUSING AUTHORITY, a California Housing Authority Nicole Bernard Acting Executive Director "Contractor" TEMPORARY SHELTER, INC., a California corporation 1.2 Bryan Crain President & CEO /msd/ 4 1799430.1 ilnruSirin Fnvalnna in. R3R(1CRQn_1 RFfl-AptRF_RpnP- )riCR3FF7,Anpg Exhibit "A" City of Tustin TTES Budget Program Year 2024/2025 Program Year 2025/2026 Budget Administrative Salaries & Services 5% max of Total Budget) In -Kind Budget In -Kind Shared Services (Management, Administration, Accounting, HR) 145,200 159,720 Liability Insurance 2,400 6,000 2,600 6,500 Financial Audit 16,200 17,820 Information Technology User Support 3,872 4,259 SUB TOTAL 22,472 151,200 24,679 166,220 Shelter Staffing & Safety (List every staff position and the associated salary and benefits) Shelter Supervisor 1 FTE 103,382 111,652 Housing Navigator - Weekday Day Shift 1 FTE 70,200 75,816 Lead Care Coordinator - Weekday Day Shift 1 FTE 79,619 85,988 Care Coordinator - Weekday Evening Shift 1 FTE 70,418 76,052 Care Coordinator - Weekday Evening Shift and Vacation Coverage (.5 FTE) 35,209 38,026 Care Coordinator - Weekday Graveyard Shift 1 FTE 70,418 76,052 Care Coordinator - Weekday Graveyard Shift 1 FTE 70,418 76,052 Care Coordinator - Weekend Day Shift A FTE 28,167 30,421 Care Coordinator - Weekend Evening Shift A FTE 28,167 30,421 Care Coordinator - Weekend Evening Shift and Vacation Coverage (.2 FTE) 14,083 15,210 Care Coordinator - Weekend Graveyard Shift (A FTE) 28,167 30,421 Care Coordinator - Weekend Graveyard Shift (A FTE) 28,167 30,421 Contracted Security Guard - Front Desk 24/7 Coverage 262,000 282,960 Contracted Security Guard - Patrol 16/7 Coverage less Police Officer 176,000 190,080 SUB TOTAL 1,064,417 - 1,149,571 Operations & Program Expenses Janitorial Services 113,000 129,950 Meals & Snacks 55,000 40,000 59,400 43,200 Paper and Plastic Goods 12,000 13,200 Pet Supplies & Equipment 2,750 3,000 Other Services (Transportation) 77,000 84,700 Facility Expenses (Office Supplies, Phones, etc.) 4,600 4,968 Laundry, Toiletry, Trash Bags, Non -janitorial Supplies 22,550 3,200 24,805 4,000 Linens, Bedsheets, Mattress Covers 2,000 3,000 2,200 3,520 Medical Care 45,000 50,000 Dental Care 30,000 35,000 Behavioral Health 74,000 79,000 12-Step Classes 7,800 9,000 Arts / Crafts Classes 10,000 12,000 Personal Finance Consultations 4,400 5,000 Legal Consultations 11,500 13,000 SUB TOTAL 288,900 228,900 322,223 253,720 TOTAL BUDGET 1,375,789 380,100 1,496,473 419,940