AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 22-000131
MEETING DATE:	03/22/22
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	Health Care Agency (Approved)
Department contact person(s):	Doug Becht (714) 834-5000
	Clayton Chau (714) 834-2830

Subject: Contract for Capital Improvement Project for Emergency Shelter

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $100,000

Annual Cost: FY 2022-23 $400,000

Staffing Impact:

# of Positions:

Sole Source: Yes

Current Fiscal Year Revenue: N/A

Funding Source: State: 100% (Homeless Housing, Assistance and Prevention Program – HHAP-County-Round1)	County Audit in last 3 years: No

Prior Board Action: 07/27/2021 #36

RECOMMENDED ACTION(S):

Approve the Sole Source Contract with Family Promise of Orange County for Capital Improvement Project for Emergency Shelter, for the term of May 1, 2022, through June 30, 2023, in an amount not to exceed $500,000.

Pursuant to Contract Policy Manual Section 3.4-114, authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the contract amounts for the first year of the contracts, for the entire term of the Contract, including renewals, and within the scope of work set forth in the contracts. The use of this contingency cost increase is subject to approval requirements established by the County Procurement Officer.

Authorize the County Procurement Officer or Deputized designee to execute the Contract with Family Promise of Orange County as referenced in the Recommended Actions above.

SUMMARY:

Approval of the Sole Source Contract with Family Promise of Orange County for Capital Improvement Project for Emergency Shelter will expand the Orange County System of Care’s capacity to provide emergency shelter and supportive services for families, households with at least one minor child, experiencing homelessness in the Central Service Planning Area.

BACKGROUND INFORMATION:

The Homeless Housing, Assistance and Prevention (HHAP) Program was established by the State of California to provide Continuums of Care (CoC) and local governments with block grant funds to support regional coordination and build local capacity to address homelessness in their communities. HHAP program eligible activities include emergency services, rental assistance, rapid rehousing, operating subsidies, landlord incentives, capital projects for delivery of permanent housing, navigation centers and emergency shelters, along with a required eight percent set aside for youth-specific programming.

On July 27, 2021, your Honorable Board of Supervisors (Board) provided retroactive approval for the Health Care Agency (HCA) to submit a grant application for HHAP Round 2 (HHAP-2) in the amount of $3,422,435 and approved the acceptance of the grant award and authorization to execute standard agreements and contracts for HHAP-2 program funds.

Family Promise of Orange County (Family Promise OC) was incorporated in 2009 and began serving families experiencing homelessness in February 2012. Family Promise OC has successfully assisted over 400 families experiencing homelessness through various programs. Family Promise OC has a history of operating emergency shelter and short-term interim housing and utilizing a Housing First model with support and guidance from Orange County Continuum of Care.

Family Promise OC, in collaboration with HomeAid Orange County and the City of Tustin, is entering into a capital improvement project to build, staff and operate the House of Ruth. The House of Ruth is a public-private partnership to develop and operate an emergency shelter program with the goal of addressing homelessness for Orange County families, with minor children, from the Central Service Planning Area. The capital improvement project will support the development and renovations of a building to increase the emergency shelter capacity for families in the Central Service Planning Area and will create the space where emergency shelter and supportive services will assist families experiencing homelessness achieve permanent housing and housing stability. The emergency shelter program to be operated by Family Promise OC will participate in the Coordinated Entry System and coordinate with the CoC to best address the needs of families experiencing homelessness.

The Sole Source Contract with Family Promise OC for Capital Improvement Projects for Emergency Shelter will support the development of emergency shelter program located at 1941 El Camino Real in the City of Tustin. The emergency shelter will feature seven units of non-congregate emergency shelter providing up to 37 beds for families, households with at least one minor child, experiencing homelessness in the Central Service Planning Area. The facility is uniquely designed to support larger families, including multi-generational families, that cannot typically be accommodated by other emergency shelter and/or interim housing programs with units ranging from one to three bedrooms. Capital improvements are expected to be completed by June 2023 and emergency shelter operations will begin by July 2023.

The proposed Contract is being brought as a sole source contract. See Attachment C for Sole Source Justification Form. Family Promise OC is the recommended sole source vendor due the collaborative capital investment project between Family Promise OC, HomeAid Orange County and the City of Tustin to create additional emergency shelter capacity for families. Family Promise OC is the only provider entering into a capital improvement project to increase capacity of emergency shelter for families with minor children experiencing homelessness in the Central Service Planning Area of Orange County. In addition, Family Promise OC has been successful in obtaining $759,146 in in-kind contributions and $2,217,686 in donations and financing in order to provide the needed funding to make the project feasible and ensure an expedited timeline for the increase in emergency shelter beds.

Approval of the Contract with Family Promise OC for Capital Improvement Projects for Emergency Shelter will expand the Orange County System of Care with additional shelter programs. By approving this item, the County will gain vital infrastructure for needed emergency shelter beds for families experiencing homelessness in the Central Service Planning Area. The HHAP grant and funding allocations compliment the Board’s direction and recent efforts to develop the Orange County System of Care for those experiencing homelessness.

HCA staff has conducted due diligence on the vendor. Family Promise OC has previously provided Emergency Shelter Services for the County of Orange for families experiencing homelessness who are at higher risk of contracting or experiencing COVID-19 symptoms and families experiencing unsheltered homelessness pending shelter placement. The Orange County Preference Policy is not applicable to this contract award.

Contract does not currently include subcontractors or pass through to other providers. See Attachment B for Contract Summary Form.

HCA requests that that Board authorize, pursuant to Contract Policy Manual Section 3.4-114, the County Procurement Officer or Deputized designee, to exercise a contingency contract cost increase in an amount not to exceed 10 percent of the contract amount for the first year of the contract, for the entire term of the Contract, including renewals, and within the scope of work set forth in the contract. The contingency provision would be exercised in the event there is an increase in the projected services needed for the clients being served. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer

HCA requests the Board to approve the Contract with Family Promise OC as referenced in the Recommended Actions above.

FINANCIAL IMPACT:

Appropriations for this Contract are included in Budget Control 042 FY 2021-22 Modified Budget and will be included in the budgeting process for future years.

Should services need to be reduced or terminated due to lack of funding, this Contract contains language that allows HCA to give 30-days' notice to either terminate or renegotiate the level of services to be provided. The notice will allow HCA adequate time to transition or terminate services to clients, if necessary.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract No. MA-042-22011118 with Family Promise of Orange County for provision of Capital Improvement Project for Emergency Shelter
Attachment B - Contract Summary Form for Attachment A
Attachment C - Sole Source Justification