14-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Travis Sais, Assistant to the City Manager
SUBJECT: Consideration and possible action to authorize the City Manager to execute Amendment No. 2 to Agreement File No. 853, in a form approved by the City Attorney, with Mercy House Living Centers, to extend the term for Temporary Shelter Services at New Hope Shelter.
DATE: May 9, 2022
EXECUTIVE SUMMARY
The City entered into an agreement with Mercy House Living Centers (“Mercy House”) on December 19, 2019 and the services began on May 20, 2020 for Temporary Shelter Services at New Hope Shelter. The initial agreement expired on May 20, 2021, and the agreement was extended for one year through May 20, 2022. The proposed Amendment No. 2 would extend the agreement for another year to allow for continued Temporary Shelter Services by Mercy House staff at New Hope Shelter.
RECOMMENDATION TO CITY COUNCIL
It is recommended that the City Council:
1) Authorize the City Manager to execute Amendment No. 2 to Agreement File No. 853, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The cost for Mercy House to operate the New Hope Temporary Shelter for one year (May 21, 2022 to May 20, 2023) is proposed at $2,237,784.75. This is a 5.87% increase ($124,084.75) from the preceding one-year term (May 21, 2021 to May 20, 2022).
DISCUSSION
In an effort to address the concerns of Bellflower residents, the City settled a homelessness-related federal lawsuit filed against the City by a homeless advocate group and, in the settlement (The Catholic Worker of Orange County v. City of Bellflower), Federal District Court Judge David O. Carter ordered the City to build a temporary services shelter for 50 persons.
-1-
Mercy House Living Centers – Amendment No. 2 to AFN 853 May 9, 2022
DISCUSSION – Continued
Therefore, the New Hope shelter was built and was dedicated on May 18, 2020. The City entered into an agreement with Mercy House Living Centers (“Mercy House”) on December 19, 2019, and the services began on May 20, 2020, at New Hope. The shelter has now been operational for almost two years and staff would like to extend AFN 853 with Mercy House for another year.
The initial agreement (May 2020 – May 2021) with Mercy House was in the amount of $2,422,816.00 which included all staff, cost of operations , furniture, fixtures and equipment (FF&E) along with a 10% contingency fund. See below:
2020-2021 New Hope Budget – Mercy House
Administrative Costs- 15% Budget
Total Admin Costs $ 275,100.00 Operation Costs - Program Salaries
Program Manager 55,000.00
Leasing Agent 45,000.00
Site Leaders 136,800.00
Housing Navigation Team 94,400.00
Overnight Logistics Coordinators 130,000.00 Call Center / Intake Specialist 25,000.00 Logistics Staff 275,800.00
Total Program Salaries 762,000.00
Program and Facility Costs
Janitorial 80,000.00
Replacement Reserves (furniture, bedding, etc.) 12,000.00 Security Guards 590,000.00
Supplies 25,000.00
Pet Care 15,000.00
Meals, Snacks and Beverages 125,000.00 Transportation 150,000.00
Gas and Repairs 75,000.00
Total Program/Facility Costs 1,072,000.00
TOTAL ANNUAL OPERATING COSTS 2,109,100.00 Furniture, Fixtures & Equipment (FF&E) 93,460.00
Contingency Fund (10%) 220,256.00
TOTAL WITH FF&E AND CONTINGENCY 2,422,816.00
-2-
Mercy House Living Centers – Amendment No. 2 to AFN 853 May 9, 2022
DISCUSSION – Continued
The budget for Mercy House to operate New Hope from May 2021 – May 2022 was $2,113,700.00. Mercy House has proposed an updated budget for the period of May 2022 – May 2023, which totals $2,237,784.75. This is a 5.87% increase ($124,084.75) from the 2021-2022 agreement term. The updated budget for 2022 – 2023 and budget comparison (see below) was provided to City staff by Mercy House, which covers all operations of New Hope along with staffing. New Hope is a 24-hour, year-round operation.
New Hope Budget Comparison – Mercy House 2021-2022 2022-2023 Program Salaries
Program manager $ 67,000.00 $ 68,445.00 Sr. Site Lead $ 55,770.00 Site Lead $ 162,000.00 $ 106,470.00 Navigation Supervisor $ 27,885.00 Navigator $ 108,000.00 $ 101,400.00 Leasing Agent $ 50,000.00 $ 55,770.00 Logistics $ 300,000.00 $ 323,212.50 Overnight $ 135,000.00 $ 136,890.00 Driver $ 150,000.00 $ 136,890.00 Safety Coordinator $ 159,705.00 Call Center $ 25,000.00 $ 21,547.50 Total Program Salaries $ 997,000.00 $ 1,193,985.00 Program and Facility Costs
IT $ 2,000.00
Maintenance $ 2,000.00 $ 2,000.00 Security $ 605,000.00 $ 420,480.00 Supplies and Client Services $ 60,000.00 $ 60,000.00 Equipment $ 6,000.00 $ 6,000.00 Meals $ 130,000.00 $ 219,000.00 Fuel and repairs $ 30,000.00 $ 40,000.00 Replacement Reserves
(furniture, bedding, etc)
$ 6,000.00 $ 6,000.00 Total Program and Facility $ 841,000.00 $ 753,480.00 Admin $ 275,700.00 $ 290,319.75 Total Budget $ 2,113,700.00 $ 2,237,784.75
ATTACHMENTS
Amendment No. 2 for AFN 853……………………………………………………………….4
Amendment No. 1 for AFN 853……………………………………………………………….7
Agreement File No. 853 ……………………………….………………………………………10
-3-
AMENDMENT NO. 2 TO
AGREEMENT FILE NO. 853 BETWEEN
THE CITY OF BELLFLOWER AND
MERCY HOUSE LIVING CENTERS
FOR TEMPORARY SHELTER SERVICES
THIS AMENDMENT No. 2 (“Amendment”) is made and entered into this 9th day of May 2022, by and between the CITY OF BELLFLOWER, a general law city and municipal corporation (“CITY”), and MERCY HOUSE LIVING CENTERS a California public benefit corporation (“CONSULTANT”). The Parties agree as follows:
SECTION 1. Section 1, C - Consideration of Agreement File No. 853 (“Agreement”), is amended to read as follows:
“C. CITY agrees to pay CONSULATANT a sum not to exceed $2,237,785 for CONSULTANT’s services. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in Exhibit “B,” which is incorporated by reference.”
SECTION 2. Section 4 - Payments of Agreement, is amended to read as follows:
“PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to the CITY in accordance with Exhibit B.”
SECTION 3. Section 8 - Term of Agreement is amended to read as follows:
“TERM: The term of this Agreement is extended for an additional year until May 20, 2023, unless otherwise determined by written amendment between the parties.”
SECTION 4. A new Exhibit “B” is added to the Agreement as set forth in attached Exhibit “2,” which is incorporated by reference. Exhibit 2 replaces the existi ng Exhibit B to the Agreement.
SECTION 5. Except as modified by this Amendment, all other terms and conditions of Agreement File No. 853 remain the same.
[SIGNATURES ON NEXT PAGE]
-4-
City of Bellflower
Agreement File No. 853 - Amendment No. 2 – Mercy House Living Centers
IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF BELLFLOWER MERCY HOUSE LIVING CENTERS
_____________________________ ____________________________ Jeffrey L. Stewart, City Manager Larry Haynes, Executive Director
ATTEST:
_____________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
_____________________________
Karl H. Berger, City Attorney
Taxpayer ID No. 33-0315864
-5-
Exhibit 2
Mercy House Living Centers AFN 853 Amendment No. 2
Exhibit B To AFN 853
Mercy House 2022-23 Budget
Program Salaries
Program Manager $ 68,445.00
Sr. Site Lead 55,770.00
Site Lead 106,470.00
Navigation Supervisor $27,885.00
Navigator 101,400.00
Leasing Agent 55,770.00
Logistics 323,212.50
Overnight 136,890.00
Drivers 136,890.00
Safety Coordinator 159,705.00
Call Center 21,547.50
Total Program Salaries $1,193,985.00
Program and Facility Costs
Facility Maintenance $2,000.00
Security $420,480.00
Supplies and Client Services $60,000.00
Equipment $6,000.00
Meals $219,000.00
Fuel and repairs $40,000.00
Replacement Reserves (furniture, bedding, etc) $6,000.00 Program/Facility Costs $753,480.00
Admin Costs $290,319.75
Total Costs $2,237,784.75
Payments will made in monthly installments of $186,482.05, when the City is in receipt of a detailed invoice from Mercy House Living Centers.
-6-
-7-
-8-
-9-
-10-
-11-
-12-
-13-
-14-
-15-
-16-
-17-
-18-
-19-
-20-
-21-
-22-
-23-
-24-
-25-
-26-
-27-
-28-
-29-
-30-
-31-
-32-
-33-
-34-
-35-
-36-
-37-
-38-
-39-
-40-