TO:
VIA:
FROM:
DATE:
Placentia City Council
IAt14 i 1'1_\N 4 111 11
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF COMMUNITY SERVICES
JUNE 18, 2024
SUBJECT: AWARD OF PROFESSIONAL SERVICES AGREEMENT WITH THE SALVATION
ARMY OC FOR THE OPERATION OF A YEAR-ROUND NAVIGATION
CENTER/EMERGENCY SHELTER LOCATED AT 731 S. MELROSE STREET FISCAL
IMPACT: EXPENSE: YEAR 1 - $2,522,646 PLACENTIA NAVIGATION CENTER FUND YEAR 2 - $2,379,646 PLACENTIA NAVIGATION CENTER FUND
YEAR 3 - $2,379,646 PLACENTIA NAVIGATION CENTER FUND
REVENUE: YEARS 1-3 - $7,281,938 NORTH SERVICE PLANNING AREA CITIES MOU
SUMMARY:
The North Orange County Service Planning Area ("North SPA") received Homeless Emergency Aid Program (HEAP) funding to open two Navigation Centers in March and June of 2020 in the Cities of Placentia and Buena Park. The North SPA is comprised of the Cities of Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Placentia, Villa Park, Stanton, and Yorba Linda. The Placentia Navigation Center ("Center") is located at 731. S.
Melrose Street. The Center is one of the two (2) facilities currently serving the North SPA. The Center along with the other North SPA site in Buena Park, addresses a comprehensive regional solution in North Orange County to provide supportive services to individuals experiencing homelessness. The one hundred (100) beds at the Placentia Center are designated for North SPA Cities only.
The City of Placentia has determined that the use of a qualified Non -Profit Organization, experienced in providing homeless services, is the most effective approach for the management of the daily operations of the Center. Upon opening of the center in 2020, the City awarded a contract for the operation and management of the Center to People Assisting the Homeless (PATH). Following contract completion, it was mutually decided by the City and PATH that the contract would not be renewed. A formal Joint Request for Proposals (RFP) was released for the selection of a new Center Operator for Placentia and Buena Park on February 5, 2024.
A total of two (2) proposals were received by the City on April 3, 2024, in response to the RFP. A panel of qualified reviewers and stakeholders (the "Panel") were tasked with reading the submitted proposals and scoring them based upon specific evaluation criteria identified within the RFP. e IS, 20241.
City Council Agenda
June 18, 2024
Based upon the scores provided by the proposer rating panel, final interviews were held with all two (2) proposers. Several members of the written proposal review panel also served on the final interview panel. Proposers were asked a series of questions and asked to elaborate on their intended budget and management plan for the Center. At the conclusion of the interview process, the Panel recommended The Salvation Army OC (Salvation Army) as the Center Operator.
The proposed agreement provides for year-round operations and management of the Center for an initial three (3) year contract term. Salvation Army will provide comprehensive supportive services including vocational services, recreational services, mental health, transportation services, permanent supportive housing services, and 100 beds for single men and women experiencing homelessness. The Center may also offer services to a limited number of families and couples based upon bed availability.
RECOMMENDATION:
It is recommended that the City Council consider the following actions based upon the panel's recommendation:
1. Approve an initial three (3) year Professional Services Agreement with Salvation Army OC for the operation and management services of the Placentia Navigation Center located at 731 S. Melrose Street, for an approximate cost of $2,600,000 for year one (1), and an approximate annual amount of $2,400,000 for years two (2) and three (3), with an option to extend for two (2) additional one-year extension terms; and
2. Authorize the City Administrator to approve eligible contract term extensions for two (2) additional one-year terms at an amount that shall be based upon the increase from the previous year of the annual consumer price index (CPI) for the Los Angeles -Long Beach - Anaheim Region, up to a maximum of 3%. not to exceed five (5) years, based upon contractor performance and at the discretion of the City; and
3. Adopt Resolution No. R-2024-45, Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2024-25 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures; and
4. Authorize the City Administrator and/or his designee to meet and confer with Salvation Army to finalize the Management, Operations, and Public Safety Plan of the Placentia Navigation Center; and
5. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
DISCUSSION:
On February 5, 2024, the City released the Joint Navigation Center Operator RFP No. 24 — 01 seeking an experienced professional service provider to manage the proposed Center. The North SPA hired Susan Price as a consultant to assist with the preparation of the RFP documents and
City Council Agenda
June 18, 2024
the RFP process, for the selection of the provider for both the Placentia and Buena Park Navigation Centers. General prerequisites of the proposer identified in the RFP included:
• Proposer must be a qualified private or public Non -Profit Organization currently engaged in providing homeless services and successfully managing homeless service centers. • Have a minimum of three (3) consecutive years of successfully managing and operating homeless programs and delivering relevant services of a similar type and scope. • Have the current organizational experience and staff capacity to undertake a new Homeless Service Center Program.
• Have not filed for bankruptcy under any business name over the past five (5) years. • Proposer or its key personnel shall hold the appropriate license for the services provided prior to signing any contract for the operation of the Navigation Center.
On April 3, 2024, the City received two (2) proposals in response to the RFP. A panel of qualified stakeholders and reviewers were tasked with reading the submitted proposals and scoring them based upon specific evaluation criteria identified in the RFP. The review panel was comprised of representatives from various local organizations and local cities, along with City Staff.
Several panel members served on both the written proposal review panel and five (5) members served on the interview panel. The evaluation panel consisted of the following representatives:
City of Placentia Councilmember and Chair of the Bridges at Kraemer Navigation Center Community Advisory Board Ward Smith, City of Placentia Councilmember Rhonda Shader, City of Buena Park Councilmember Conner Traut, City Manager of Orange Tom Kisela, City Manager of Fullerton Eric Levitt, City of Placentia Police Chief Brad Butts, City of Buena Park Chief of Police Frank Nunes, City of Placentia Community Services Director Karen Crocker, City of Buena Park Community Services Director Jim Box. The interview panel consisted of the following representatives: City of Placentia Councilmember and Chair of the Bridges at Kraemer Navigation Center Community Advisory Board Ward Smith, City of Yorba Linda Councilmember Janice Lim, City of Placentia Police Chief Brad Butts, City of Buena Park Chief of Police Frank Nunes, and City of Placentia Community Services Director Karen Crocker.
The panelists were chosen to serve on the Evaluation Panel because they have a fundamental understanding of the Placentia and Buena Park community and/or specialized experience with homeless emergency shelter operations. In addition, some of the panel members have worked collaboratively with the City in its efforts to end homelessness and/or have firsthand experience addressing issues such as access to basic needs, access to mental and medical health services, and access to permanent supportive housing services. Each panelist provided unique and valuable input throughout the process including insight on important matters related to homelessness.
Based upon the scores provided by the Evaluation Panel, interviews were held with all two (2) proposers. Proposers were asked a series of questions and asked to elaborate on their intended budget and management plan for the proposed Center.
The evaluation criteria identified in the RFP included the following:
City Council Agenda
June 18, 2024
• Completeness and accuracy of the proposal forms and requested narratives. • Organization's experience in providing and managing homelessness and emergency shelter programs similar in nature to the proposed Navigation Center. • Level and types of services.
• Service delivery model and partnerships.
• Connection to and knowledge of the local community.
The final scores for each proposer are identified in the table below:
1 Proposer Final Score
The Salvation Army OC (Salvation Army) 87.55
Mercy House 85.33
The proposed budgets provided by each proposer are identified in the table below:
Proposer
The Salvation Army OC (Salvation Army) — Year 1
The Salvation Army OC (Salvation Army) — Year 2
and Year 3
Mercy House
Proposed Annual Budget
$2,522,646.00
(includes onetime start-up cost)
$2,379,646.00
$3,289,306.90
Based upon the quality of the proposal in terms of completeness and responsiveness, proposed services, professional qualifications, ability to operate within the proposed Center budget, and the proposer interviews, the Evaluation Panel recommended Salvation Army as the operator for the operations and management of the Center.
Staff recommends the City Council consider the Evaluation Panel's recommendation and award a three (3) year contract to Salvation Army from the date the agreement is fully executed for the year-round operations and management of the Center.
FISCAL IMPACT:
The North SPA Cities will be responsible for the ongoing operational costs related to the Center.
On April 2, 2019, the City Council approved a Memorandum of Understanding (MOU) for the North SPA to establish a multi -jurisdictional approach for the construction and operation of "Navigation Centers" that will serve homeless persons located within the North SPA of Orange County.
Based upon the Salvation Army budget, a onetime start-up costs of $143,000 is included in Year 1, for a total proposal amount of $2,522,646 for FY 2024-2025. The annual cost for Year 2 and Year 3, shall total $2,379,646 for FY 2025-2026 and FY 2026-2027. Funding for the Center will come from funds contributed by all North SPA Cities. The North SPA Cities convene on a quarterly basis throughout the contract period to evaluate ongoing operational costs and to determine if additional funding as may be necessary. A NSPA meeting occurred on June 6, 2024 in which the
City Council Agenda
June 18, 2024
RFP process, Evaluation Panel recommendation and timeline was provided to all partner cities.
No General Fund dollars will be utilized for the operation of the Center.
Prepared by:
0 Madelinne Villapando
Management Analyst
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
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Karen Crocker
Director of Community
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Reviewed and approved:
Paw,it.AA, Qmda
Damien R. Arrula
City Administrator
Attachments:
1. Professional Services Agreement with The Salvation Army OC
2. Resolution No. R-2024-45 Budget Amendment
3. Presentation