Agenda Item
City Council
Item #: 3.7. 4/25/2023 File #: 23-0225
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Second Amendment to the Agreement with The HUB OC for on-site services, referrals, and resources for those experiencing homelessness as part of the 517 W. Struck Project.
2. SUMMARY
Second Amendment to the Agreement with The HUB OC in the amount of $705,600, for a total contract not-to-exceed amount of $1,105,600 to continue services, referrals, food, and resources needed for those experiencing homelessness.
3. RECOMMENDED ACTION
1. Approve the Second Amendment to the Agreement with The HUB in the amount of $705,600 for services in support of the 517 W. Struck Project and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Authorize the appropriation of $705,600 from the General Fund unreserved fund balance to expenditure account number 100.0000.51670.30200, General Fund - Other Prof & Consulting- 517 W. Struck Transit.
4. FISCAL IMPACT
The total expenditure for this Amendment is $705,600 and will be funded through the General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
a: Provide staffing and resources to deliver services that ensure public safety.
6. DISCUSSION AND BACKGROUND
Pursuant to an agreement reached in federal court, the City has partnered with The HUB OC (HUB) to oversee and manage the onsite operations and services for those experiencing homelessness.
The HUB provides food services, mail services and manages showers, restrooms (including ADA facilities), and laundry services at the HUB Resource Center (HRC), located at 517 W Struck Ave.
The HUB also provides connections to shelter services with partner organizations through the Coordinated Entry System and Homeless Management Information System, access to phones and facsimile services, phone charging services, and/or referrals to medical, dental, and vision services, City of Orange Printed on 4/20/2023Page 1 of 2
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Item #: 3.7. 4/25/2023 File #: 23-0225
veterinary services, COVID-19 vaccinations, haircuts, and clothing suppliers.
In 2022, the City Council approved an agreement with the HUB for $700,000 of Community Development Block Grant (CDBG) Coronavirus Aid, Relief, and Economic Security (CARES) funding, exhausting the available CARES funding available for this project. Additionally, in November 2022, the City Council approved a separate Agreement with The HUB for $400,000 in General Fund (100) funding to continue to provide services after exhausting the CARES funding.
Since November 2022, costs of service have increased. For example, the cost of food service increased due to the increase in grocery products worldwide. Additionally, The HUB was required to provide dairy products that are unable to be donated at this time. Therefore, the existing Agreement does not have enough contract authority to cover expenditures through the duration of the court order.
The Second Amendment to the Agreement proposed herein will increase the General Fund (100) contract authority by $705,600, for a total not-to-exceed amount of $1,105,600, to ensure The HUB can continue services for the duration of the court agreement, set to expire April 30, 2023.
Additionally, the Second Amendment would provide additional funding through September 2023 while the City transitions out of the court mandate. Should any funding separate from the General Fund become available, including funding for reimbursement, staff will return to the City Council with a recommendation to use an alternate funding source.
7. ATTACHMENTS
· Second Amendment to the Agreement with The HUB OC (AGR-7437) City of Orange Printed on 4/20/2023Page 2 of 2
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