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Consider approval of 2 initial agreements with Shelter Solano, Inc.: a Contribution Agreement to provide housing and other services for individuals and families experiencing homelessness for a period of 10 years, and a Start-up Match Funding Agreement for up to $270,000, beginning February 1, 2019 through January 31, 2020, to provide housing and other services for individuals and families experiencing homelessness; Authorize the County Administrative Officer to execute the Contribution and Start-up Match Funding Agreements and delegate authority to the County Administrator to execute any amendments to these agreements necessary to effect the intent of this item; and Approve an Appropriations Transfer Request for $270,000 to transfer revenue from the Mental Health Reserve (4/5 vote required) (Continued from the December 11, 2018 meeting)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrative Office and the Department of Health and Social Services recommend that the Board approve 2 initial agreements with Shelter Solano, Inc.: a Contribution Agreement to provide housing and other services for individuals and families experiencing homelessness for a period of 10 years, and a Start-up Match Funding Agreement for up to $270,000, beginning February 1, 2019 through January 31, 2020, to provide housing and other services for individuals and families experiencing homelessness; Authorize the County Administrative Officer to execute the Contribution and Start-up Match Funding Agreements and delegate authority to the County Administrator to execute any amendments to these agreements necessary to effect the intent of this item; and Approve an Appropriations Transfer Request for $270,000 to transfer revenue from the Mental Health Reserve (4/5 vote required).
SUMMARY/DISCUSSION:
Mission Solano Rescue Mission (Mission Solano) indicated in Spring 2018 that it will no longer operate 310 Beck Avenue, Fairfield, CA as a transitional housing shelter due to financial difficulties. A Request for Proposal was issued by the City of Fairfield and Shelter, Inc. was selected as the successor provider of shelter and sheltering services at 310 Beck Avenue. Shelter, Inc. has been meeting with County staff, City of Fairfield staff, cities’ staff and other stakeholders interested in establishing a new operator for 310 Beck. The focus of the meetings has been to secure sustainable funding and contracts for services to be provided at 310 Beck Avenue.
Shelter, Inc. has created a subsidiary organization, Shelter Solano, Inc., which will be the local service provider and administrator of services. In recognition of the public benefit of these services, Shelter, Inc. had requested that the outstanding balance and interest on the Amended and Restated Loan Agreement between Mission Solano and the County be forgiven. The recommended Contribution agreement provides for Shelter, Inc. to operate the 310 Beck Avenue facility as a housing and housing services shelter facility for a period of ten years and guarantees to the County one dedicated bed each year during the ten-year period in lieu of payments on the outstanding balance and interest remaining on the Amended and Restated Loan Agreement.
Shelter, Inc. has also requested start-up funding from the County and Solano County cities. The recommended agreement provides for start-up funding up to $270,000 with the amount contributed relative to the combined contributions from the incorporated cities in Solano County and a guarantee of two dedicated beds during the twelve month period of the start-up funding agreement. The funding would be provided in monthly payments in an amount based on the guaranteed match funding from the cities on the first of each month.
FINANCIAL IMPACT:
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2018/19 Adopted Budget. Funding for the start-up funding agreement will come from H&SS’ Mental Health reserve fund.
ALTERNATIVES:
The Board could choose not to approve the Contribution Agreement or the Start-Up Match Funding agreement with Shelter Solano, Inc. or to modify the terms of either agreement. If the agreements are not approved, Shelter Solano, Inc. has indicated it will not be able to operate 310 Beck. If the Board chooses to modify either agreement, staff would need to review the modified terms with Shelter Solano, Inc.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approve the agreements for legal sufficiency.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION