CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JUNE 27, 2023
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: FIRST AMENDMENT TO AGREEMENT WITH THE
SALVATION ARMY FOR EMERGENCY SHELTER SERVICES
(101 BED EXPANSION)
ATTACHMENT (Y/N): YES ITEM# 17
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, take the following actions:
1. Approve the First Amendment to the 101-Bed Expansion Agreement for Emergency Shelter Services between the City and The Salvation Army for the continuation of shelter services and approve an additional funding reimbursement amount of $706,000 for a total agreement amount of $4,158,000; and
2. Authorize the City Manager, or designee to execute the First Amendment to the 101-Bed Expansion Agreement for Emergency Shelter Services, and to execute subsequent amendments or documents necessary for the continuation or administration of shelter services at 1455 S. Salvation Place, provided they are approved by the City Attorney and do not increase the total compensation amount payable to The Salvation Army.
BACKGROUND:
In January 2019 the City opened the La Mesa Shelter and Lewis Street Shelter. The 101-bed La Mesa Shelter operated by the Illumination Foundation was located at 3035 E. La Mesa Street until it closed in April 2022. The Lewis Street Shelter operated by the Salvation Army opened as a 224-bed shelter located at 1340 S.
Lewis Street. For historical purpose, it should be noted that the site on which the shelter was constructed subsequently changed its address to 1455 S. Salvation Place, though the shelter’s location remained the same.
The initial 224-beds at the Lewis Street Shelter were constructed and operated pursuant to the Agreement Regarding Homeless Shelter Services approved by the City Council on November 13, 2018. The Original Agreement required The Salvation Army to construct and operate a low barrier shelter consistent with defined Third Amendment to Salvation Army Agreement
June 27, 2023
standards and criteria and required the City to reimburse The Salvation Army for construction and operating costs, not to exceed $14 million.
In November 2019, the City Council approved an emergency release of a Request for Proposal to solicit the construction of an additional temporary emergency shelter with the goal of adding up to 100 shelter beds within 90 to 120 days. On February 4, 2020, the City Council selected and approved The Salvation Army’s proposal for a 101-bed expansion emergency shelter. The additional 101 beds increased the Lewis Street Shelter beds to 325, for a citywide total of 426 shelter beds.
As reflected in the staff report of February 4, 2020, the purpose for adding these shelter beds in Anaheim was to address immediate needs for an interim period while surrounding cities worked to complete projects that would collectively yield an estimated 250 additional shelter beds in the North Orange County Service Planning Area (NOCSPA). Plans for the additional NOCSPA shelter beds were indeed realized and, to date, the NOCSPA continues to operate 250 beds, with 150 beds at the Buena Park and 100 beds at the Placentia Navigation Centers, respectively.
The citywide total of 426 shelter beds remained in place until April 2022. When the 101-bed La Mesa Shelter permanently closed, the 101-bed expansion at the Lewis Street Shelter backfilled the 101 beds lost to ensure the City remained in compliance with the settlement agreement to operate 325 total beds.
DISCUSSION:
The initial 101-bed expansion at the Lewis Street Shelter was constructed and operated pursuant to the Agreement Regarding Homeless Shelter Expansion (Expansion Agreement) that was approved by the City Council on February 4, 2020.
The Expansion Agreement required The Salvation Army to construct and operate an additional 101 low-barrier beds consistent with defined standards and criteria and required the City to reimburse The Salvation Army for its construction costs and costs of operating the shelter in an amount not to exceed $3.5 million. The Expansion Agreement had a four-year term, setting the expiration date in May 2024.
The Salvation Army is dedicated to the provision of compassionate and comprehensive shelter services for persons experiencing homelessness. The Salvation Army has worked cooperatively with the City to address operational issues and has worked diligently to be a good neighbor to surrounding properties. The Salvation Army’s commitment to transitioning clients from the shelter to permanent, stabilized housing, exemplified by its “Homeless Throughput Initiative,” has set a high standard in the County.
Since June 2020, The Salvation Army 101 bed shelter expansion project has served 369 unduplicated individuals. The supportive services offered on site have assisted 70 individuals to locate permanent housing and another 23 to enter into treatment facilities. The Salvation Army has created a sense of community on campus by hosting employment development classes, counseling services and special events throughout the year, including holiday celebrations that many clients celebrate.
Third Amendment to Salvation Army Agreement
June 27, 2023
This First Amendment to the 101 Bed Expansion Agreement is being presented for the purpose of addressing significant increases in shelter operation costs that are beyond the control of TSA, most pronounced in the cost for food and labor.
Additionally, usage of the shelter has increased, now averaging 90 individuals needing daily shelter, services, supplies, and food. The proposal also includes wrap- around services and housing navigation, services not always provided at other shelters.
The proposed First Amendment to the Expansion Agreement allows existing shelter operations to continue while the City and The Salvation Army advance cooperative efforts on the Center of Hope, which will serve as a permanent, multi-purpose campus for shelter, housing, and support services. Specifically, the First Amendment provides for an additional reimbursement amount of $706,000 to address operational cost increases. All other terms, including the current expiration date in May 2024 remain the same. Staff is not requesting an extension of time to allow the two contracts that collectively cover the shelter operations to both expire in 2024 therefore allowing the contracts to be merged.
IMPACT ON BUDGET:
Funding for shelter operations is included in the City Administration Department’s General Fund budget. The City continues to seek State and Federal grants when available to offset General Fund costs and has applied for a fourth round of Homeless Housing, Assistance and Prevention (HHAP) grant funds.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development
Attachments:
1. First Amendment
2. Original Agreement