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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. 3 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 22, 2023
EXECUTIVE SUMMARY
On April 24, 2023, the City Council conducted a New Hope Shelter study session where it directed staff to extend the agreement with Mercy House Living Centers (“Mercy House”) through September 30, 2023 , for Temporary Shelter Services at New Hope Shelter. The City entered into an agreement with 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 19, 2021, and the agreement was extended for one year through May 20, 2022. Subsequently, the agreement was extended for one additional year through May 20, 2023. The proposed Amendment No. 3 would extend the agreement through September 30, 2023, 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. 3 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.
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Mercy House Living Centers – Amendment No. 3 to AFN 853 May 22, 2023
FISCAL IMPACT
The agreement extension to operate the New Hope Shelter from May 21, 2023 through September 30, 2023 will provide for an additional not -to-exceed amount of $857,556.08.
Upon execution of Amendment No. 3 to AFN 853, Mercy House is requesting the City to make an advance payment of $193,433.70 (equal to one month of operating expenses per Amendment No. 3). This advance payment will be applied towards the August 2023 Mercy House temporary shelter services invoice.
BACKGROUND
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.
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 three years and Amendment No. 3 would extend AFN 853 with Mercy House through September 30, 2023.
On April 24, 2023, the City Council conducted a New Hope Shelter study session where it directed staff to extend the agreement with Mercy House through September 30, 2023 , for Temporary Shelter Services at New Hope Shelter. Prior to the expiration of this extended term, staff will solicit proposals for temporary shelter services – as directed by the City Council at the April 24, 2023, New Hope Shelter study session.
DISCUSSION
The initial agreement (May 20, 2020 – May 19, 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.
The budget for Mercy House to operate New Hope from May 21, 2021 – May 20, 2022, was $2,113,700.00. The budget for Mercy House to operate New Hope from May 21, 2022 – May 20, 2023, was $2,237,784.75. The updated budget (see next page) for May 21, 2023 – September 30, 2023, 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.
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Mercy House Living Centers – Amendment No. 3 to AFN 853 May 22, 2023
DISCUSSION – Continued
New Hope Budget –
Mercy House
2023-2024 Full Year
(For reference only)
Amendment No. 3
Prorated
(June 1, 2023 –
September 30, 2023)
Program Salaries
Program Manager $ 76,050.00 $ 24,716.25 Sr. Site Lead $ 62,107.50 $ 20,174.38 Site Lead $ 178,717.50 $ 53,551.88 Navigation Supervisor $ 31,053.75 $ 10,087.19 Navigator $ 109,005.00 $ 35,701.25 Leasing Agent $ 55,770.00 $ 18,590.00 Logistics $ 332,718.75 $ 110,114.06 Overnight $ 140,692.50 $ 46,580.63 Driver Supervisor $ 30,420.00 $ 7,605.00 Driver $ 152,100.00 $ 49,432.50 Safety Coordinator $ 206,349.00 $ 64,896.00 Call Center $ 23,448.75 $ 7,657.81 Total Program Salaries $ 1,398,432.75 $ 449,106.95
Program and Facility Costs
Maintenance $ 2,000.00 $ 666.67 Security $ 455,520.00 $ 148,920.00 Supplies and Client Services $ 70,000.00 $ 22,500.00 Equipment $ 6,000.00 $ 2,000.00 Meals $ 200,750.00 $ 68,437.50 Fuel and repairs $ 40,000.00 $ 13,333.33 Replacement Reserves
(furniture, bedding, etc.)
$ 6,000.00 $ 2,000.00 Total Program and Facility $ 780,270.00 $ 257,857.50 Admin $ 239,657.30 $ 84,107.63 Estimated cost from May 21, 2023 to May 31, 2023 $ 66,484.00 Total Budget $ 2,418,360.05 $ 857,556.08
ATTACHMENTS
Amendment No. 3 for AFN 853……………………………………………………………….4
Amendment No. 2 for AFN 853……………………………………………………………….7
Amendment No. 1 for AFN 853………………………………………………………………10
Agreement File No. 853 ……………………………….………………………………………13
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AMENDMENT NO. 3 TO
AGREEMENT FILE NO. 853 BETWEEN
THE CITY OF BELLFLOWER AND
MERCY HOUSE LIVING CENTERS
FOR TEMPORARY SHELTER SERVICES
THIS AMENDMENT No. 3 (“Amendment”) is made and entered into this 22nd day of May 2023, 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 CONSULTANT an additional sum not-to-exceed $857,556.08 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 from May 21, 2023 until September 30, 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 existing 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]
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City of Bellflower
Agreement File No. 853 - Amendment No. 3
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
ATTACHMENT :
Exhibit B - Mercy House May 21, 2023 - September 30, 2023 Budget
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Exhibit 2
Mercy House Living Centers AFN 853 Amendment No. 3
Exhibit B To AFN 853
Mercy House May 21, 2023 - September 30, 2023 Budget
Program Salaries
Program Manager $24,716.25
Sr. Site Lead 20,174.38
Site Lead 53,551.88
Navigation Supervisor 10,087.19
Navigator 35,701.25
Leasing Agent 18,590.00
Logistics 110,114.06
Overnight 46,580.63
Driver Supervisor 7,605.00
Drivers 49,432.50
Safety Coordinator 64,896.00
Call Center 7,657.81
Total Program Salaries $449,106.95
Program and Facility Costs
Facility Maintenance $666.67
Security 148,920.00
Supplies and Client Services 22,500.00
Equipment 2,000.00
Meals 68,437.50
Fuel and repairs 13,333.33
Replacement Reserves (furniture, bedding, etc.) 2,000.00 Program/Facility Costs $257,857.50
Admin Costs $84,107.63
Estimated cost from May 21, 2023 to May 31, 2023
$66,484.00
Total Costs $857,556.08
First month of operating expenses in the amount of $193,433.70 will be advanced upon execution of Amendment No. 3 to AFN 853. This advance payment will be applied towards the August 2023 invoice. Actual expenses incurred by the operator will be paid in monthly installments when the City is in receipt of a detailed invoice from Mercy House Living Centers. The final close-out invoice with all the adjustments must be received by the City within 30 days of the contract end date.
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