CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JUNE 27, 2023
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: THIRD AMENDMENT TO AGREEMENT WITH THE
SALVATION ARMY FOR EMERGENCY SHELTER SERVICES
(224 BED SHELTER)
ATTACHMENT (Y/N): YES ITEM# 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Third Amendment to the Agreement Regarding Homeless Shelter (Original Agreement) by and between the City of Anaheim (City) and The Salvation Army for the continuation of (224-bed) shelter services, and update the shelter’s address of record to 1455 S. Salvation Place from the previous address listed at 1340 S. Lewis Street to reflect the site’s updated address, and
2. Extend the term of the agreement for one additional year to expire on June 30, 2024; and approve an additional funding reimbursement amount up to $6,768,000 and
3. Authorize the City Manager, or his designee, to execute the Third Amendment to the Original Agreement, 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 maximum reimbursement 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. 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 Original Agreement approved by the City Council on November 13, Third Amendment to Salvation Army Agreement
June 27, 2023
2018. The Original Agreement set forth terms under which The Salvation Army allowed for the use of their land to construct and operate a low barrier shelter consistent with defined standards and criteria and required the City to reimburse The Salvation Army for construction and operating costs, at an amount not to exceed $14 million. The Original Agreement expired in January 2021, two years after the commencement date.
On November 10, 2020, City Council approved an amendment to the Original Agreement to extend the operation of the 224-bed emergency shelter for two additional years, setting the new expiration date to January 31, 2023, and allowing for an additional reimbursement amount up to $11 million. This action also delegated authority to the City Manager to enter subsequent amendments provided that total compensation did not increase. As such, on February 1, 2023, the City Manager, with City Attorney concurrence, extended the Agreement to June 30, 2023 for time only.
DISCUSSION:
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.
Since 2019, The Salvation Army 224-bed shelter has served 860 unduplicated individuals. The supportive services offered on site have assisted 162 individuals to locate permanent housing and another 54 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 residents celebrate.
With the Second Amendment to the Original Agreement set to expire June 30, 2023, staff recommends the approval of the attached proposed Third Amendment. This would allow 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 Third Amendment to the Original Agreement will extend the term of the agreement (the date by which the City’s funding of operations for the temporary shelters would cease) by one year from June 30, 2023 to June 30, 2024 and provides for an additional funding reimbursement amount up to $6,768,000 for the one-year extension period. All other terms and conditions of the Original Agreement remain the same.
The reimbursement rate proposed in the Amendment establishes a daily rate of approximately $87 a night or just over $28,300 a year per person, up from approximately $68 a night or $24,500 annually in the prior agreement. The increase in cost is related to overall increases in goods and services, most pronounced in the Third Amendment to Salvation Army Agreement
June 27, 2023
cost for food and labor. Additionally, usage of the shelter has increased, now averaging a 97% nightly occupancy rate (up from the daily average of 92% to 95%).
The proposal also includes wrap-around services and housing navigation, services not always provided at other shelters.
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
Housing and Community Development Director
Attachments:
1. Third Amendment
2. Original Agreement with Amendments 1 and 2