HomeMy WebLinkAbout07/02/1991, C-5 - AGREEMENT WITH THE ECONOMIC OPPORTUNITY COMMISSION (EOC) FOR HOMELESS SERVICES DURING 1991-92. METING AGENDA
I11jIIIIjjpj1Rj 11 Clt/ Of San Luis OBI Sp0 WE ZIr L 17EM 0
MiS COUNCIL AGENDA REPORT
FROM: Ken Hampian, Assistant City Administrativeefficer
Prepared By: Deb Hossli, Administrative Analyst .
SUBJECT: Agreement with the Economic Opportunity Commission (EOC)
for Homeless Services during 1991-92.
CAO RECOMMENDATION: Authorize Mayor to execute agreement with the
EOC for Homeless Services during 1991-92 .
DISCUSSION:
Homeless Shelter Contract With Economic opportunity Commission
Attached is a negotiated agreement with the EOC for the operation
of the Homeless Shelter during 1991-92 . The agreement is for
$120, 000 and basically contains the same terms and conditions as
the 1990-91 agreement. Highlights of the agreement include:
* The City will guarantee to provide $100, 000 in funding through
year's end. The EOC will then be eligible to receive up to
$20, 000 in additional funding based on performance criteria
established in the agreement. ($120, 000 represents the same
level of funding as the EOC received in 1990-91. )
* The EOC will prepare Revenue Enhancement/Cost Containment Plan
for the City by August 1, 1991. This will establish the
performance criteria for receiving $20, 000 of additional !
funding. (This same approach was used during 1990-91 and j
worked successfully. )
I
* The EOC will provide shelter services at 750 Oructt Road in
San Luis Obispo.
* In accordance with the Shelter's use permit, sheltering
services will be provided seven days per week for up to 54
people per evening.
New provisions of the agreement include:
* The Human Relations Commission (HRC) will formally monitor the
contract with the EOC during 1991-92 . The HRC will be
responsible for reviewing the quarterly financial and
administrative reports submitted by the EOC and providing City
staff with recommendations on these issues. This approach is
consistent with past Council direction and will allow HRC to
become more familiar with homeless issues and the operation
of the Shelter.
* The City Administrative Officer will be authorized to
automatically extend the contract for periods of one year
assuming that: (1) the EOC continues to satisfy the terms and
conditions of the agreement, (2) funding does not exceed! the
"ceiling" of $120, 000 established by the Council and (3)
adequate monies are approved by the City Council in the City's
Financial Plan.
Homeless Shelter Budget
The Homeless Shelter's total budget for 1991-92 is $401, 908 , which
represents 7.8% increase over the prior year. The majority of the
increase can be seen in the areas of food and maintenance costs.
The Shelter' s 1990-91 budget was developed prior to moving into
the 750 Oructt Road site so many of the costs were "best guess
estimates" . With nearly a full year of experience, however, it is
apparent that food and maintenance costs were significantly
underestimated. Therefore, the 1991-92 budget represents a closer
reflection of actual costs for these activities.
The only other notable change to the expenditure side of the budget
is that the Shelter will not be able to continue providing security
services due to a loss of grant funding for this activity. Staff
will monitor this situation closely with the EOC throughout the
year. Should problems arise, the EOC is aware that the City will
press for reductions in other program areas so that security
services can be reinstated. Given the Shelter' s current use permit
status, maintaining successful neighborhood relations is critical.
Projected revenues for the Homeless Shelter will cover proposed
expenses for 1991-92 . The Homeless Shelter' s revenues will come
from its traditional funding sources: the City, the County, the
Federal Emergency Shelter Program, the Emergency Shelter Program
(State) , several local grants and private donations. The Shelter
has also requested monies of other cities in the County.
FISCAL IMPACT:
$120, 000 has been included in both fiscal years of the 1991-93
Financial Plan to fund the homeless services contract with the EOC.
CONCURRENCES:
The EOC concurs with this recommendation and has approved the 1991-
92 contract.
ALTERNATIVES:
1. Provide a Reduced level of Funding to the EOC for the Homeless
Shelter Contract.
Under this alternative, the Council could opt to provide the
EOC with a lesser amount of funding for the Homeless Shelter
in light of the tighter financial times that the City is
facing. While this is a feasible alternative, it is not
recommended. The City's contribution to the Shelter
represents one of its most stable and flexible funding
sources. Many of the grants that the EOC receives can only
e-s- a.
be spent on specific activities. while these types of grants
are heavily relied upon by the EOC, they significantly reduce
their ability to respond to changing needs of- the Shelter
population. In addition, if the City were to reduce its
contribution to the Shelter, there is a possibility the County
would react similarly given our current informal arrangement
of providing matching contributions.
2. Do Not Fund the Homeless Shelter Contract.
Again, while this is a feasible alternative, it is not
recommended. The City's contribution to the Shelter
represents a little over a quarter of the budget. Without
City funding, the EOC would have to substantially reduce the
services offered at the Shelter. In addition, there is also
a possibility that the County would reduce or pull out its
funding for the Shelter given our informal arrangement of
providing matching contributions.
ATTACHMENTS:
Contract with EOC
`'S-3
CONTRACT FOR SERVICES
This contract dated July 1, 1991 , is made by the City of San Luis Obispo
(City) and the Economic Opportunity Commission (EOC), to provide temporary shelter
for the homeless.
WITNESSETH:
1. The term of this agreement shall be July 1, 1991 through June 30, 1992.
2. - Terms of Funding shall be as follows:
$100,000.00 total payment, payable as follows:
$30,000.00 on or before the first day of the second month of the first quarter in
the current fiscal year.
$30,000.00 no later than ten (10) working days following approval of the first
quarter program report in the current fiscal year.
$30,000.00 no later than ten (10) working days following approval of the second
quarter program report in the current fiscal year.
$10,000.00 no later than ten (10) working days following approval of the third
quarter program report in the current fiscal year.
In addition, the EOC shall be entitled to performance funding, subject to the
terms of paragraph 5 below, not to exceed $20,000.00 which shall be payable
on or before the last day of the current fiscal year.
3. Sheltering Services shall be established and maintained as follows:
a. Sheltering Services shall be available from the first day of the fiscal year
through the end of the last day of the fiscal year.
b. Sheltering Services shall be maintained for up to 54 persons per night in
accordance with the City's use permit requirements.
C. Sheltering Services shall be provided at 750 Orcutt Road in San Luis
Obispo unless an alternative location acceptable to the City and EOC is
identified and mutually agreed upon by both parties.
d. The EOC agrees to comply with all Federal, State, City and/or County
ordinances and regulations while providing Sheltering Services.
Compliance shall include but not be limited to zoning regulations.
�sAl
4. This contract establishes a relationship which provides for payment for services
to an independent contractor. Notwithstanding the terms and conditions
specified in paragraphs 5 and 6, the EOC is free to conduct its program without
interference by the City. As such, the EOC is neither an agent, employee or
joint venturer of or with the City.
5. Performance funding shall be paid on or before the last day of the current fiscal
year, provided that the EOC satisfactorily complies with the performance
evaluation standards in Exhibit "A", incorporated herein by reference.
6. Terms and conditions of the contract are as follows:
A. Workers' Compensation Insurance
The EOC certifies that it is aware of the provisions of the Labor Code of
the State of California, which require every employer to be insured against
liability for workers compensation or to take self-insurance in accordance
with the provision of that code, and it certifies that it will comply with such
provisions before commencing the performance of the work of this
contract.
B. Insurance
At the request of the City, the EOC shall provide proof of comprehensive
liability insurance ($1,000,000), satisfactory to the City.
Proof of Coverage and Endorsements
1. Certificates of Insurance
In addition to obtaining and maintaining the insurance described
above, the EOC must furnish the City with properly executed
certificates of insurance prior to commencement of work under this
contract. Such certificates shall:
a. clearly evidence all coverage required, including specific
evidence of a separate endorsement naming the City as an
insured. (This requirement does not apply to Workers'
Compensation).
b. indicate whether coverage provided is on a claim made or
occurrence basis.
C. provide that such insurance shall not be materially changed,
terminated or allowed to expire except on 30 days prior
written notice to the City.
d. provide that the EOC's insurance is primary as respects the
City, its officers, employees and directors. Any insurance or
self-insurance maintained by the City, its officers, employees
or directors shall be excess of the EOC's insurance and shall
not contribute with it.
e. be signed by an authorized representative of the carrier.
C. Obligation to Maintain Insurance Coverage
The EOC agrees to the requirement that such insurance shall be
maintained during the entire term of contract if an occurrence policy form
is used. If a claims made policy is used, coverage shall be maintained
during the contract term and for a period of extending 5 years beyond the
contract date. The EOC shall replace such certificates for policies expiring
prior to completion of work under the contract and shall continue to
furnish certificates 5 years beyond the contract term when the EOC has
a claims made form(s).
D. Failure to Maintain Insurance
If the EOC, for any reason, fails to maintain insurance coverage which is
required pursuant to this contract, the same shall be deemed a material
breach of contract. The City, at its sole option, may terminate this
contract and obtain damages from the EOC resulting from said breach.
Alternatively, the City may purchase required insurance coverage and
without further notice to the EOC, the City may deduct from sums due to
the EOC any premium costs advanced by the City for such insurance.
E. Indemnity and Hold Harmless Provision
The EOC agrees to indemnify and hold the City, its officers, employees,
and directors, harmless from any liability imposed for injury (as defined by
Government Code Section 810.8), whether arising before or during the
entire term of the contract spelled forth in this contract or in any manner
directly or indirectly caused, occasioned or contributed, or of anyone
acting under the City's direction or control or on its behalf, or of the EOC,
or of anyone acting under the EOC's direction or control or on its behalf
in connection with or incident to, or arising out of the performance of the
contract.
It is the intent of the parties that the EOC will indemnify, defend and hold
harmless the City, its officers, employees, and directors from any and all
claims, demands, costs, suits or actions as set forth above, regardless of
the existence or degree of fault or negligence, whether active or passive,
on the part of the City or of anyone acting under its direction or control
or on its behalf except that arising out of the sole negligence of the City.
F. All payments due by the City under paragraph 2 are conditioned upon the
EOC obtaining and expending additional funds equal to or greater than
the City's contribution, from sources other than the City or the County of
San Luis Obispo. Such funds may include but are not limited to grants
and private donations. The City reserves the right to withhold all or a
portion of the payments covered herein if the EOC fails to meet this
obligation.
G. The City Administrative Officer may unilaterally terminate this contract at
his sole discretion, upon thirty (30) days written notice to the EOC. Any
funds not paid pursuant to paragraph 2 above shall revert to City upon
said termination
H. Any amendments to this contract shall be in writing and signed by both
parties. This document represents the entire and integrated agreement
between City and the EOC and supersedes all prior negotiations,
representations, or agreements, either written or oral. This document may
be amended only by written instrument, signed by both City and the EOC.
All provisions of this contract are expressly made conditions. This contract
shall be governed by the laws of the State of California.
7. This contract may be extended on an annual basis for an additional one year
period(s), upon approval of the City Administrative Officer, subject to the same
terms and conditions contained herein, and subject to the approval of a City
Council budget appropriation as described in the City's Financial Plan.
8. No discrimination shall be made in the employment of persons or provision of
services under this contract because of the race, color, national origin, ancestry,
religion or sex of such person.
If the EOC is found in violation of the nondiscrimination provisions of the State
of California Fair Employment Practices Act or similar provisions of federal law
or executive order in the performance of this contract, it shall thereby be found
in material breach of this contract. Thereupon, City shall have the power to
cancel or suspend this contract, in whole or in part, or to deduct from the
amount payable to the EOC the sum of Two-hundred-fifty Dollars ($250) for each
person for each calendar day during which such person was discriminated
against, as damages for said breach of contract, or both. Only a finding of the
State of California Fair Employment Practices Commission or the equivalent
federal agency or officer shall constitute evidence of a violation of contract under
this paragraph.
9. All notices required hereunder shall be made as follows:
CITY: City Administrative Office
Attn: Deb Hossli, Administrative Analyst
P.O. Box 8100
San Luis Obispo, CA 93403-8100
EOC: Economic Opportunity Commission
880 Industrial Way
San Luis Obispo, CA 93401
Dated this 1s t day of .Tule
IN WITNESS WHEREOF, the parties hereto have executed this contract by their proper
officers duly appointed:
The Economic Opportunity Commission, A Non-Profit Corporation:
134�&1 /'y -11
;" 11AVAA
The City of San Luis Obispo, A Municipal Corporation:
ATTEST:
Mayor Ron Dunin
APP FORM:
Pam Voges , City C er
City A ministrative Officer
ty orn y
Finance Director
DH\conVateoc
C'-S-S
EXHIBIT "A"
PERFORMANCE EVALUATION STANDARDS
EOC will submit to the City of San Luis Obispo a Cost Containment/Revenue
Enhancement Plan on or before August 1, 1991. The plan will outline the specific goals
and objectives EOC will pursue during the fiscal year to control the costs and generate
additional revenue to operate the homeless shelter program. The Plan will be subject .
to the approval of the City Administrative Officer.
The amount of the fourth and final installment which shall be no less than $10,000 and
no more than $30,000 shall be contingent upon the City's reasonable satisfaction that
EOC has met the specific goals and objectives of the Cost Containment/Revenue
Enhancement Plan. The specific allocation will also be determined based on a staff
assessment of actual need.
EOC will provide the City of San Luis Obispo with quarterly program reports, which
shall be due no later than 20 (twenty) working days after the last day of each quarter.
These reports shall include the following information:
1. ADMINISTRATOR'S REPORT
This report will include a brief synopsis of the activities for the reporting period,
in narrative form. The report will include a statement describing activities
(including specific fund raising efforts), services or programs provided, any
changes that have occurred during the reporting period, and any projected
changes expected during the subsequent reporting periods.
2. FINANCIAL REPORT
This report will include a financial statement for the reporting period. The
statement must include an itemized listing of the expenditures for the period and
the expenditure of City of San Luis Obispo funds. A complete income and
expenditure statement, and a balance sheet must be included. Shortfalls and
overages will be thoroughly explained. Any additional documents which are
germane to the financial position of the program will also be included.
3. STATISTICAL SURVEY
This report will include the number of clients served, their cities of origin, the
nature of the services provided, the number of days each client received
services, and any other statistics relevant to the operation of the program. The
nature of services provided to each client shall be defined as food, shelter,
clothing, or a combination thereof and shall be summarized as such on the
report.
The quarterly program reports will be presented to the Human Relations Commission
for review at the first regularly scheduled meeting following receipt of the report. The
recommendations of the Human Relations Commission will be considered by City staff
prior to approving the report. The City will release quarterly funding to EOC upon
approval of report. /f �7