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CC - CONSENT ITEM: Approval of a Modification to the Previously Approved Professional Service Agreement with Urban Alchemy as Lead Supportive Service Provider and Operator for the 20 Suites/Tents Service-Enriched Safe Sleep Program Located at the City-Owned Virginia Avenue Parking Lot to Modify the Time of Performance to the 12-Month Period of July 1, 2023 through June 30, 2024 and Reduce the Not-to-Exceed Amount of the Contract to $3,099,077.
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Meeting Date: June 12, 2023
Contact Person/Dept.: Tevis Barnes / Housing and Human Services Department
Phone Number: (310) 253-5780
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (Email) Meetings and Agendas - City Council (06/07/2023); Urban Alchemy (06/01/2023); and (E-Mail) Meetings and Agendas - Housing (06/07/2023)
Department Approval: Tevis Barnes - Housing and Human Services Director (06/01/2023)
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RECOMMENDATION:
Staff recommends the City Council approve modifications to the previously approved professional service agreement (Agreement) with Urban Alchemy (UA) as lead supportive service provide and operator for the 20 suites/tents service-enriched Safe Sleep Program located at the City-owned Virginia Avenue Parking Lot to modify the time of performance from 15 months to 12 months for the period of July 1, 2023 through June 30, 2024 and reduce the not-to-exceed amount of the contract to $3,099,077
BACKGROUND:
City Manager, John Nachbar, in his capacity as Director of Emergency Services, proclaimed a local emergency on homelessness on January 3, 2023. The Local Emergency was ratified by the City Council at the January 9, 2023 Council meeting. As part of the Local Emergency on Homelessness, on March 27, 2023, Council approved entering into a professional services agreement with Urban Alchemy as lead supportive service provider and operator for the proposed 20 suites/tents service-enriched Safe Sleep Site located at the City-owned Virginia Avenue Parking Lot for the 15-month period of April 1, 2023 through June 30, 2024 in an amount not-to-exceed $3,531,659.
The Safe Sleep approach provides safe legal temporary interim housing for our unhoused neighbors. The primary focus of Safe Sleep is to provide temporary safe sleeping areas and respite to unsheltered adults living in the community who are not ready to come inside.
Founded in 2018, UA is a nonprofit organization that employs over 1,100 employees with the mission of transforming people and places through respect, compassion, and love to heal communities challenged by the intersection of extreme poverty, mental illness, addiction, and homelessness. UA provides community outreach and engagement, temporary housing for people experiencing homelessness, mobile bathrooms and showers, and street cleaning services. UA currently operates in the San Francisco Bay Area, Los Angeles County, Portland, Oregon and Austin, Texas. Over 95% of UA employees (including those in executive leadership roles) have experienced incarceration and/or homelessness.
DISCUSSION:
Time of Performance
With City Council approval, the original Safe Sleep Program Agreement with UA will be modified with regard to the length of the Agreement and the total contract amount. The original Agreement was for a 15-month period (originally from April 1, 2023 through June 30, 2024). It is recommended the terms of the be modified to a 12-month period from July 1, 2023 through June 30, 2024. City staff from the Economic Development, Finance, Housing and Human Services, Parks, Recreation and Community Services, Public Works, as well as the Culver City Fire Department, City Manager’s Office, and the City Attorney’s Office have been working diligently over the last four months to start up the Culver City Safe Sleep Program with a current estimated project completion being at 85%. With contract approval on March 27, 2023, the original start date of April 1, 2023, was not feasible due to the significant amount of work required to transform a parking lot into a quality, supportive living environment. The change to the length of the contract will not impact the level of service, staffing, and program infrastructure and improvements. The proposed Culver City Safe Sleep Program will still provide temporary safe sleeping quarters and respite for up to 40 unsheltered adults (within 20 suites/tents) within a service-enriched low-barrier, trauma informed, harm reduction living environment. The Culver City Safe Sleep Program is designed to meet the unhoused neighbors where they are and to create a safe and supportive environment to help them take the next steps towards self-sufficiency.
Staffing levels will not be impacted by the Agreement modification. UA follows a ratio of 5 to 1 staffing. Meaning one staff member for each guest (program participant). The Culver City Safe Sleep Program will still provide 24-hour 7 day a week staffing. Daily, there will be a minimum of 5 staff on-site engaged in program administration, care/service coordination, addressing site and residential needs, and site and guest safety. There will be 3 shifts total: Morning (7am-3:30pm), Swing (3pm-11:30pm), and Graveyard (11pm-7:30am) for 24-hour site coverage.
The physical space and provision of service of the Culver City Safe Sleep Program are detailed below and will not be impacted by the modification of the Agreement.
Infrastructure and Physical Site Improvements
• Picnic area/open space
• Park benches/outdoor sitting
• Environmental shade/covering
• Onsite restrooms/showers (Including ADA)
• Storage and bike racks
• Pet Area
• Wi-Fi Access
• Structures and bedding of fire-resistant materials
• Staff Parking
• Parameter fencing with security screening
• Portable drinking water
• Exterior and interior lighting
• Solid waste disposal
• Human waste disposal provisions
• Safe electrical systems
Provision of Supportive Services
• 24- hour/7 Day a Week onsite service provider/connection to supportive services
• Access to weekly laundry service
• Access to weekly medical care
• 24- hour/7 Day a Week onsite security through de-escalation and conflict resolution
• Three nutritious meals daily
Insurance Requirements
Providing decent, safe, and sanitary service enriched affordable housing to our unhoused neighbors has resulted in significant impacts in the types and levels of insurance that must be carried to provide protection to the City and UA. As a result, the City recently assessed acceptable insurance requirements for UA. As part of this assessment, City Risk Management consulted with AON, the City’s insurance broker, who provided recommended insurance coverage levels. It was determined by AON along with City Risk Management that the following types of insurance and levels should be carried by UA for the Safe Sleep Program. The types and levels of insurance are detailed below:
Insurance Recommendations
Coverages:
General Liability $4M / $5M
Auto Liability $1M
Workers Compensation $1M
Sexual Misconduct Liability $2M / $2M
Professional Liability $1M / $3M
Directors & Officers Liability $2M / $2M
Crime $1M
FISCAL ANALYSIS
The original cost of services and operations under the UA Safe Sleep Program Agreement was in an amount not-to-exceed $3,531,659. This included an annual expense of $2,765,327 for personnel and supportive services and $75,000 for one-time startup expenses. The not-to-exceed amount was based on a 15-month budget with an anticipated start date of April 1, 2023. The modified Agreement will have a 12-month fiscal year cycle starting July 1, 2023 through June 30, 2024, the end of Fiscal Year 2023-2024.
The 12-month budget will reduce the original not-to-exceed contract amount from $3,531,659 to $3,099,077. This is a reduction of $432,582.. This amount includes the annual budget of $3,024,077plus $75,000 for one-time startup expenses. Included in the annual amount is an increase for insurance coverage from $25,000 to $250,000. Also, under the one-time budget amount of $75,000, the amount of $20,000 earmarked for microwaves and refrigerators for meal preparation and storage will be converted to cover the cost of office furnishing for UA staff. The City has already purchased the microwaves and refrigerators as part of the site development.
Sufficient funding for the $75,000 in start-up costs and the $250,000 for insurance is contained in the Revised Budget for Fiscal Year 2022-2023 in Account #10116100.619800 (Non-Departmental - Other Contractual Services). The ongoing operating costs are included in the Proposed Budget for Fiscal Year 2023-2024 in Account #10135700.619830 (Safe Sleeping - Other Contractual Services Unhoused).
ATTACHMENT
None
MOTION
That the City Council:
1. Approve modifications to the previously approved professional service agreement with Urban Alchemy as lead supportive service provider and operator for the 20 suites/tents service-enriched Safe Sleep Program located at the City-owned Virginia Avenue Parking Lot to modify the time of performance from 15-months to 12-months for the period July 1, 20223 through June 30, 2024 and reduce the not-to-exceed amount of the contract to $3,3,099,077; and
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.