Agenda Report
Fullerton City Council
MEETING DATE: MARCH 1, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: JEFFREY W. COLLIER, ACTING CITY MANAGER
PREPARED BY: GREGORY PFOST, ACTING DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT
KELLEE FRITZAL, DEPUTY DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: AMENDMENT TO AGREEMENT FOR ILLUMINATION FOUNDATION SHELTER SERVICES
SUMMARY
On November 16, 2021, City Council approved American Rescue Plan Act (ARPA) funds to fund shelter beds at the Fullerton Navigation Center. The agreement became effective on December 15, 2021. However, Illumination Foundation (IF) provided shelter services to Fullerton residents from September 2, 2021 to December 14, 2021 without payment. IF requests amending the Agreement to establish a retroactive commencement date of September 2, 2021 and reimburse IF for Fullerton client expenses.
RECOMMENDATION
Authorize City Manager, or designee, to execute an Amendment to the Professional Service Agreement with Illumination Foundation regarding the term and reimbursement for expenses from September 2, 2021 to December 15, 2021.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Infrastructure and City Assets
Public Safety.
FISCAL IMPACT
No additional funding requested. The $1,272,000 ARPA allocation on November 16, 2021 is sufficient to cover IF shelter bed costs from the amended agreement period of September 2, 2021 to June 30, 2022. The amendment enables payment from ARPA allocation to IF for shelter bed costs incurred between September 2, 2021 and December 15, 2021 as well as through the end of the 2021-22 fiscal year.
BACKGROUND
In July 2019, Illumination Foundation (IF) approached the City regarding an opportunity for IF to purchase and improve a building at 3535 West Commonwealth Avenue for use as a recuperative care and navigation center to support the City’s homelessness sheltering needs. The Planning Commission approved the shelter and City Council denied a project appeal.
As required by the Conditional Use Permit (CUP), City Council approved an Operational Agreement for the recuperative care / navigation center which provides for a $40 “Host City” fee for each shelter bed per night. This fee provides food, bed, transportation and case management, including housing navigation assistance. The Navigation Center also offers a full medical and dental clinic available to clients. The Agreement indicated that the City “shall only be responsible for the clients specifically placed by the City and verified to be City of Fullerton residents.” The City continues to use both the Placentia and Buena Park shelters, funded through SB 2 funds, but those shelters have limited beds available.
DISCUSSION
Since its opening, the shelter has operated using COVID relief funds. The County of Orange funded the Fullerton Navigation Center (all 150 beds) through January 31, 2021. On January 19, 2021, City Council approved use of the CDBG-CV funds to provide continued shelter beds to Fullerton’s homeless residents, however, the those funds exhausted on September 1, 2021. On November 16, 2021, City Council authorized the use of $1,272,000 in ARPA funds to continue supporting Fullerton residents at the facility.
The Professional Services Agreement approved by City Council on November 16, 2021 became effective December 15, 2021. However, IF incurred costs for sheltering Fullerton residents between September 2, 2021 and December 15, 2021. These costs, as verified by staff, total approximately $149,500. IF has requested reimbursement of funds. Staff seeks City Council action to amend the term of the agreement to September 2, 2021 to June 30, 2022. This revised agreement term supports application of ARPA allocation for payment to IF for $149,500 shelter bed costs incurred from September 2, 2021 to December 15, 2021.
Of note, IF has also requested a future amendment of the Operational Agreement regarding the Host City fee currently set at $40 per bed per night. Staff will submit this request as a separate City Council item.
Attachments:
Attachment 1 – Shelter Agreement Amendment Number One
Attachment 2 – Professional Services Agreement with Illumination Foundation Amendment – Shelter Services
March 1, 2022 - Page 3