DATE: JUNE 18, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
BY: JACQUELINE SMITH, HOMELESS SERVICES MANAGER
TITLE: AMENDMENT NO. 5 TO AGREEMENT FOR SERVICES WITH BENITEZ SECURITY SERVICES, INC.
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the City Manager to execute Amendment No. 5 to Agreement for Services (No. 22ARPA04) with Benitez Security Services, Inc. to increase the compensation amount for a total amount not to exceed $1,285,237 and to extend the term to October 31, 2024.
EXECUTIVE SUMMARY:
Prior to April 2023, the City of Salinas (City) had implemented its Emergency Motel Program (EMP), providing emergency shelter and housing navigation services, at the County Inn in Marina. This program was supported by 24-hour security services from Benitez Security Services, Inc. (BSSI). On April 1, 2023, the City transferred the EMP, along with its service providers and security services, to a new location at the Steinbeck Lodge in Salinas. The initial term of operation at this new location was through March 31, 2024; however, additional amendments were executed to extend security services to June 30, 2024. To maintain uninterrupted security services at Steinbeck Lodge while the City completes a Request for Proposals and selection process for security services, another amendment to the Agreement is required. Amendment No. 5 increases the compensation amount by $220,000 for a total amount not to exceed $1,285,237 and extends the term to October 31, 2024. The Encampment Resolution Fund (ERF) is the funding source for the Agreement.
BACKGROUND:
In recognition of the acceptance of additional County funds, on December 1, 2022, the City and BSSI first entered into an Agreement for Services No. 22ARPA04 (Agreement) to provide security services for the EMP. This agreement, commencing on January 1, 2023, and ending on June 30, 2023, stipulated a total compensation not to exceed $486,000.
On April 6, 2023, the City and BSSI executed Amendment No. 1 to the Agreement to extend the term through August 31, 2023, as operations of the EMP moved to the Steinbeck Lodge in Salinas.
On June 13, 2023, the City and BSSI executed Amendment No. 2 to the Agreement. This amendment increased the compensation amount by $420,000, bringing the total to not exceed $906,000, and extended the term through March 31, 2024. Funding for the Agreement and Amendments was provided by appropriations from the City American Rescue Plan Act (ARPA), County’s Project Room Key Motel Program and ARPA (County ARPA), ERF, and the General Fund for Homeless Services Coordination.
On January 9, 2024, the Council adopted Resolution No. 22875, consenting to accept a grant in the amount of $8,081,101.25 for the term 2024 to 2027 from the California Interagency Council on Homelessness (Cal ICH) Encampment Resolution Fund (ERF) Program.
On March 28, 2024, the City and BSSI, executed Amendment No. 3, to extend the term through April 30, 2024. This amendment did not require City Council approval as the amount of the agreement did not increase.
On May 1, 2024, the City and BSSI executed Amendment No. 4 to the Agreement to increase compensation by $159,237 to a total not to exceed $1,065,237 and extend the term until June 30, 2024.
In recognition of the acceptance of additional ERF funds that ensure continuous security services at the EMP, the City has prepared and released a Request for Proposal (RFP) to identify a security provider through a competitive selection process. It is anticipated that staff will return with an Agreement for Services with the selected security provider not later than September 2024.
To maintain uninterrupted security services at Steinbeck Lodge while the City completes the RFP and selection process, another amendment to the Agreement is required. The recommended Amendment No. 5 increases compensation by $220,000 for a total amount not to exceed $1,285,237 and extends the term until October 31, 2024.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed agreements will advance the City of Salinas Strategic Plan 2022-2025 Goals and Housing/Affordable Housing through continued provision of security for the safety of immediate housing opportunities at the EMP which are supported by robust housing navigation leading to permanent housing placements.
DEPARTMENTAL COORDINATION:
This agenda item was prepared by and is solely administered by the Community Development Department with contributions from both the City Attorney and Finance Department.
FISCAL AND SUSTAINABILITY IMPACT:
Amendment No. 5 to the Agreement with BSI will be funded by available appropriations from the Encampment Resolution Fund program. There will be no impact to General Fund.
ATTACHMENTS:
Resolution
Amendment No. 5 to Benitez Agreement for Services – Draft Agreement for Services and Amendments No. 1-4
Resolution 22875 – Cal ICH Encampment Resolution Fund
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