Agenda Item AGENDA STAFF REPORT ASR Control 24-000229
MEETING DATE:	04/09/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Douglas Becht (714) 834-2323
	Karen Betances (714) 834-2184

Subject: Amendment to Contract for Yale Navigation Center Shelter Operations and Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: No

Current Year Cost: $1,071,976

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: GF: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 5/23/2023 #56, 11/17/2020 #13, 6/23/2020 #S66B, 11/19/2019 #36

RECOMMENDED ACTION(S):

Approve Amendment No. 9 and authorize the County Procurement Officer or Deputized designee to execute and increase the Contract amount with PATH, People Assisting the Homeless for Emergency Shelter Operations and Services for the Yale Navigation Center, by $1,071,976 for the term effective July 1, 2023, through June 30, 2024, for a Contract amount not to exceed $7,871,976 for a revised cumulative total Contract amount not to exceed $25,806,744.

SUMMARY:

Approval of Amendment No. 9 to increase the Contract amount for Emergency Shelter Operations and Services for Yale Navigation Center will ensure continued access to emergency shelter and housing-focused case management for individuals experiencing homelessness in the Central Service Planning Area of Orange County through June 30, 2024.

BACKGROUND INFORMATION:

The Yale Navigation Center (Yale), located at 2229 South Yale Street, Santa Ana, provides emergency shelter operations and services for up to 425 adult (ages 18 and over) individuals and couples experiencing homelessness in the Central Service Planning Area (SPA) in Orange County. Yale provides trauma-informed and evidence-based programming that supports participants in achieving their long-term goals, with a primary focus on housing and re-integration back into the community.

Yale began its operations in January 2021 at a reduced capacity due to the COVID-19 pandemic public health protocols. In September 2022, Yale began increasing its bed occupancy from 250 participants and was able to achieve full capacity of 425 participants by Spring 2023.

Prior Board of Supervisors (Board) Actions:

Board Date	Contract/Amendment	Action	Term
November 20, 2018	Purchase and Sale Agreement	Approved as Recommended	N/A
November 19, 2019	Cooperation and Implementation Agreement and Ground Lease	Approved as Recommended	November 19, 2019 - November 19, 2020
June 23, 2020	Second Amendment to the Ground Lease	Approved as Recommended	June 23, 2020 - December 31, 2020
November 11, 2020	Contract Emergency Shelter Operations and Services for the Yale Navigation Center	Approved as Recommended	November 17, 2020 – June 30, 2023
May 23, 2023	Contract Renewal	Approved as Recommended	July 1, 2023 – June 30, 2024

People Assisting the Homeless (PATH) is the contracted operator of Yale. Since 1983, PATH has provided a full range of homeless services centered on housing people experiencing or at risk of homelessness, including street outreach, emergency shelter, rapid rehousing, and permanent supportive housing programming. PATH has grown to also serve the Counties of Los Angeles, Sacramento, San Diego, Santa Barbara, and Santa Clara, and become one of California’s largest homeless services agencies. PATH previously operated the Cold Weather Emergency Shelter in the City of Fullerton and the Placentia Navigation Center in the North SPA. Additionally, PATH is also contracted by the County of Orange (County) to provide Rapid Rehousing Services for Individuals, and Regional Care Coordination Services.

Fiscal Year 2023-24 is the first year that Yale has operated at full capacity. To that end, the County Executive Office (CEO), Office of Care Coordination has been working closely with PATH to track the costs of operations in order to determine the appropriate cost of operations. This includes, but is not limited to, working with PATH to increase bed utilization; monitoring utilization rate of supplies, meals, etc.; noting wear and tear of facilities and rate of replacement for high-use items like shower curtains and bedding; and establishing the appropriate level of security personnel both within and outside of the shelter. After a thorough analysis of the budget and actual program costs reported by PATH, it was determined that inflation in the costs of supplies and the need to offer competitive wages in order to maintain a work force were the leading factors behind the requested contract increase. The Office of Care Coordination reviewed the increased budget in detail and determined that the increase to $7,871,976 from $6,800,000 was appropriate and aligned with the reported experience of other local and state emergency shelter operators. (See Attachment D of Per Diem Comparisons between Counties and Cities).

The CEO has seen an increase in the need for a proactive security protocol now that Yale is operating at full capacity and has taken steps to work collaboratively with PATH and abide by the Good Neighbor Policy (Policy). Some notable changes to the security protocol include: Increased perimeter patrol by PATH staff to two times per day, streamlined communication between the County to PATH in response to security concerns from the City of Santa Ana or residents in the neighborhood, increased site control in the front entrance by mitigating contraband into the site.

The Program operates in accordance with the County of Orange’s Standards of Care for Emergency Shelter Providers (Standards of Care). The Standards of Care are a comprehensive set of administrative, operational, and facility-based standards designed to support the quality and consistency of program operations, evidence-based participant services, core organizational and administrative functions, and facility design and operations. The Office of Care Coordination has found PATH to be in compliance through annual monitoring of the Standards of Care.

The Contractor’s performance has been confirmed as satisfactory. The County Procurement Office has verified there are no concerns that must be addressed with respect to Contractors’ ownerships/names, litigation status or conflicts with County interests.

This Contract does not currently pass through to other providers but does have subcontractors. See Attachment C for the Contract Summary Form. The Orange County Preference Policy is not applicable to this Contract award.

The CEO requests that the Board approve the Amendment to the Contract with PATH for Emergency Shelter Operations and Services for the Yale Navigation Center as referenced in the Recommended Actions above. Approval of the Amendment will continue to support the County’s effort to build a responsive System of Care that meets the needs of different segments of the homeless population seeking access to emergency shelter programs and in achieving housing and increased income.

FINANCIAL IMPACT:

Appropriations for this contract will be absorbed within Budget Control 017 FY 2023-24 Budget. The Office of Care Coordination will absorb this cost increase using realized savings from other human service contracts resulting in no additional NCC impact to Budget Control 017.

The proposed Contracts include provisions allowing CEO to terminate the Contracts, reduce the level of services, and/or renegotiate the levels of services provided, as necessary. This includes a notice that allows CEO adequate time to transition or terminate services to clients, if necessary.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Amendment No. 9 to Contract MA-017-22011908 with PATH
Attachment B – Redline to Contract MA-017-22011908
Attachment C – Contract Summary Form for MA-017-22011908
Attachment D – Per Diem Comparisons between Counties and Cities