AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Outreach Ministries International for Operations of the Temporary Access Center and Emergency Shelter for One Year with Option to Extend up to One Year in an Amount Not to Exceed $1,100,000 Annually, and Execute Amendment No. 2 to the Professional Services Agreement with The Salvation Army for Food and Laundry Services to Extend Services for One Year with Option to Extend up to One Year in an Amount Not to Exceed $160,000 Annually (CD)
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MEETING DATE:
October 22, 2024
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing the City Manager to execute a professional services agreement with Outreach Ministries International for operations of the Temporary Access Center and Emergency Shelter for one year with option to extend up to one year in an amount not to exceed $1,100,000 annually, and execute Amendment No. 2 to the Professional Services Agreement with The Salvation Army for Food and Laundry Services to extend services for one year with option to extend up to one year in an amount not to exceed $160,000 annually.
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BACKGROUND INFORMATION:
On November 4, 2020, the City Council adopted the San Joaquin Community Response to Homelessness - 2020 San Joaquin Strategic Plan (“Strategic Plan”). The Strategic Plan includes goals and strategies developed from community feedback, which includes increasing access and reducing barriers to homeless crisis response services.
On April 20, 2022, City Council approved a contract with Inner City Action Inc., to operate the Temporary Emergency Shelter (AKA Temporary Access Center) and The Salvation Army to provide food and laundry services. The Temporary Access Center officially opened for operations on July 22, 2022. On September 6, 2023, an amendment for both Inner City Action, Inc. and The Salvation Army was processed which extended the temporary operations through October 31, 2024.
Staff anticipated extending the current agreements for an additional year until the permanent Access Center could be completed. However, on September 11, 2024, Inner City Action provided written notification that they would not extend their contract to continue as operator for the Temporary Access Center.
Lodi Municipal Code (LMC) Section 3.20.070 allows the City to dispense with the bid procedures in cases of emergency. With the Temporary Access Center Operator Agreement terminating on October 31, 2024, staff determined that the need to maintain operations met the definition of “emergency” in LMC 3.20.015, which includes unforeseen circumstances requiring immediate action, and that it would be appropriate to utilize an alternate to the bidding process, and release a Request for Proposals (RFP) for operators.
To proceed with the RFP, Staff identified a list of 14 organizations (listed below) from Stanislaus County, San Joaquin County, and Sacramento County. Staff also reached out to United Way of San Joaquin to identify if any other organizations should be added to the contact list and received two additions.
• The Salvation Army (Lodi)
• Lodi House (Lodi)
• Outreach Ministries International (Lodi)
• His Way Recovery (Manteca)
• Tracy Community Connection Center (Tracy)
• Gospel Center Rescue Mission (Stockton)
• Visionary Home Builders (Stockton)
• St. Mary’s (Stockton)
• Turning Point (Modesto)
• Community Housing and Shelter Services (Modesto)
• Next Move Homeless Services (Sacramento)
• Loaves and Fishes (Sacramento)
• Shores of Hope (Sacramento)
• First Step Communities (Sacramento)
On September 17th, all 14 organizations were notified of the RFP and the due date of October 3, 2024, at 4:00 p.m. An optional pre-proposal conference was held onsite September 25, 2024, at 11:00 a.m. Additionally, an addendum was issued to offer a second opportunity for all organizations that were not able to attend the pre-proposal conference, to schedule an individual conference by contacting Staff. All proposals were required to be emailed to neighborhoodservices@lodi.gov for continuity and control of the proposals received.
Two proposals were received, one from The Salvation Army, Lodi Corps and one from Outreach Ministries International. A complete evaluation of the two proposals was completed (Attachment 1). Although two proposals were received, the Salvation Army proposal was non-responsive as it did not meet the requirements of Section II(F) of the RFP for period of performance. The Salvation Army proposal was only for 3 months of services at a cost of $170,580 plus separate food/laundry agreement for $160,000 annually ($40,000 for 3 months) for a total of $210,580 for 3 months. Additionally, the proposal did not meet the full scope of work identified for day client services, outreach, transportation, and neighborhood clean-up. Staff communicated this information to The Salvation Army, and confirmed they would be interested in continuing the food/laundry contract services for the temp Access Center.
Outreach Ministries International’s proposal in response to the RFP came in at $1,099,981.21 annually and requested the City maintain the agreement with The Salvation Army ($160,000) for Breakfast/Dinner and additional laundry services so that collaboration and continuity would be maintained (see Attachment 2 and 3). The Salvation Army agreed to continue these services. The total annual cost for both agreements is $1,260,000.
Outreach Ministries International provided a comprehensive response to the RFP and meets all requirements. They are a verified 501c3 and are not excluded on SAM.Gov. As they fall under the category of religious organization, they are exempt from 990 filings on IRS, so during the evaluation process, staff requested and reviewed their financial statements provided by their Certified Public Accountant, and the organization is solvent. Outreach Ministries International have been an integral outreach team in San Joaquin County starting in Stockton in 1982. In 2005, they began their outreach and services in Lodi. Currently they offer 5 different delivery methods for services including:
1. Second Step Living: Transitional housing placement for clients that have successfully completed treatment.
2. Agape Love: Weekly homeless outreach events providing hot meals, clothing, hygiene care (showers, haircuts), and connection with mental health resources. Weekly outreach via teams going to encampments.
3. His Place Food Bank: Weekly food box distribution.
4. Gravity Church: Weekly classes and support groups (Recovery Meeting, Mental Health Meeting, Bible Studies, etc.) every day of the week.
• Every Monday they coordinate a collaborative homeless outreach event. A diverse group of organizations provide services including, but not limited to, hygiene items, clothing, Showered with Love (mobile showers), Community Medical Center (health care, referrals, and testing), Agape Love (hot meals, food boxes, and faith services for anyone interested (not required))
5. Bridges and Breadcrumbs: Homeless outreach and life coaching with a focus on employment, housing, and referrals to community services.
Should City Council approve Outreach Ministries International as the new operator of the temporary Access Center, Staff will work closely with them, and the current operator, Inner City Action, to facilitate an appropriate and smooth transition prior to October 31, 2024.
Attachments:
1. RFP Evaluation Forms and Responses
2. Outreach Ministries International Professional Services Agreement, Exhibit A/B - RFP Response (scope of work) and Budget
3. The Salvation Army Professional Services Agreement Amendment No.2
4. Resolution
Funding Summary:
STRATEGIC VISION:
4E. Housing: Adopt standards and policies to promote housing for all economic levels.
FISCAL IMPACT:
$1.3 million is allocated for operations of the Temporary Access Center through the City American Rescue Plan Act funds and is already appropriated and part of the FY 2024/25 Community Development Department Budget. There is no impact on the General Fund for these temporary operations agreements or optional extensions as grant resources have been secured to cover these costs. Ongoing operations of the temporary access center or permanent access center will likely require some level of General Fund support in the future. Staff continues to diligently seek grant funding and partnerships to minimize this impact in future years.
FUNDING AVAILABLE:
Funding is included in the FY 2024/5 budget for these services.
ARPA-22001.Contracts - $1.1 million Outreach Ministries International
ARPA-22001.Contracts - $160,000 - The Salvation Army
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John Della Monica
Community Development Director
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Scott R. Carney
City Manager