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HomeMy WebLinkAboutItem 10l - Homeless Case Management-Housing Navigation Services PSA Extention DATE: June 6, 2023 TO: Honorable Mayor and City Council FROM: Sara Somogyi, Director of Recreation and Community Services By: Ashley Marston, Management Aide SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICE AGREEMENT FOR HOMELESS CASE MANAGEMENT/HOUSING NAVIGATION SERVICES WITH LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE IN AN AMOUNT NOT TO EXCEED $334,000 CEQA: Not a Project Recommendation: Approve SUMMARY On June 21, 2022, the City Council approved a Professional Services Agreement for Homeless Case Management/Housing Navigations Services with Los Angeles Centers for Alcohol and Drug Abuse (“LACADA”) in an amount not to exceed $218,400. The Agreement was for the period of one year with the option to renew on a year-by-year basis for a maximum of three additional one-year periods at the City’s sole discretion. For Fiscal Year 2023-24, LACADA has submitted a revised cost proposal of $254,000 for the three case managers, plus $75,000 for Prevention & Diversion reimbursements and $5,000 for Emergency Services reimbursements, for a total cost of $334,000. It is recommended the City Council authorize and direct the City Manager to execute an extension to the Professional Services Agreement for Case Management/Housing Navigation Services with LACADA in an amount not to exceed $334,000, with the option to renew annually for two, one-year extensions. BACKGROUND On March 15, 2022, the City Council discussed the status of the City’s homeless programs and approved a recommendation to utilize Permanent Local Housing Allocation (“PLHA”) funds to secure three full-time case managers/housing navigators for Arcadia, as well as an additional $100,000 of PLHA funds for homeless Emergency Services. PLHA is a Senate Bill 2 funded program that is designed to provide an ongoing, annual source of funding through State Property Transfer Fees. Funds can be used for construction of affordable housing, programs to assist persons who are Extension to the PSA for Homeless Case Management/ Housing Navigation Services June 6, 2023 Page 2 of 5 experiencing or at risk of homelessness, or other housing-related assistance programs for low-to-moderate income households. Arcadia’s allocation for the first two years was $442,505. At the same meeting, the City Council also approved a recommendation to utilize $250,000 of American Rescue Plan Act (“ARPA”) funds for the Prevention & Diversion program. ARPA is a federal program that has provided $8.8 million to the City of Arcadia to address the economic fallout from the COVID-19 pandemic. Prevention & Diversion funds help individuals and families make ends meet, keep a roof over their heads, and maintain essential services. Services include short-term rental assistance, utility assistance, security deposit payment, and more. On June 21, 2022, the City Council approved a Professional Services Agreement for Homeless Case Management/Housing Navigation Services with LACADA in an amount not to exceed $218,400 yearly. This contract was for one year with the option to renew annually for a maximum of three years, with the City Manager’s approval. Per this contract, LACADA offers case management, housing navigation, Prevention & Diversion allocations, and Emergency Services distributions. While Prevention & Diversion and Emergency Services allocations were budgeted for FY 2022-23, LACADA reimbursement estimates were not included in the original contract total. In April 2023, the Los Angeles County Development Authority notified the City that PLHA funds earmarked for case management and housing navigation services and Emergency Services would not be available for use due to the City’s lack of a fully certified Housing Element. The City will be unable to use these funds until the Housing Element is fully certified, after which only funds incurred after the certification date will be guaranteed for reimbursement. The City is currently working with County and state representatives to address this situation. DISCUSSION Since July 5, 2022, LACADA’s three, full-time case managers have served the Arcadia community, assisting individuals experiencing homelessness and those at risk of becoming homeless. In that time, they have displayed impressive response times, collected and reported data efficiently, and placed individuals in both interim and permanent housing. On the next page is a cumulative report of LACADA’s efforts from July 2022 through April 2023, a total of ten months. Extension to the PSA for Homeless Case Management/ Housing Navigation Services June 6, 2023 Page 3 of 5 Case Management/ Housing Navigation Services Units or Hours of Service Street Outreach Hours 2,899.5 Office Work Hours 1,678 Total Engagements with Persons Experiencing Homelessness 1,777 First Time Encounters 485 Follow Ups 1,292 Coordinated Entry System Assessments (Including VI-SPADT) 307 Housing Plans Established 120 Items Distributed 485 Connections to Supportive Services 879 Prevention & Diversion Funds Allocated $23,510 Emergency Services Funds Allocated $2,470 Interim Housing Placements (Crisis, Bridge, Transitional, etc.) 38 Permanent Housing Placements (Rapid Re-Housing, family reunifications, etc.) 12 When looking over the data, it is important to note that homelessness by nature is extremely transitory. Persons experiencing homelessness do not often stay within the confines of a single city, but rather move across a larger geographic region. LACADA’s number of First Time Encounters does not represent the number of people experiencing homelessness in Arcadia as the data includes transitionary and non-homeless individuals. The actual number of persons experiencing homelessness in Arcadia on any given day is closer to 79 individuals, based off the City’s 2021 Homeless Census, or 174 individuals based on the County’s 2022 Point-in-Time Count. In addition to hard data, LACADA also submits monthly success stories of how their team has assisted persons experiencing homelessness. These narratives include both small and large examples of an individual’s progress on the road to becoming housed. Some successes include acquiring identification documents, finding employment, entering a substance use program, and reunification with family members. Based on LACADA’s data and success stories, it is recommended that the contract be extended. The proposed extension to Professional Service Agreement is for the period of one year beginning on July 1, 2023, with the option to renew on a year-by-year basis for a maximum of two additional years at the City’s sole discretion, under the same terms and conditions. The total contract for case management/housing navigation services in Fiscal Year 2023-24 will not exceed $334,000. Extension to the PSA for Homeless Case Management/ Housing Navigation Services June 6, 2023 Page 4 of 5 ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT With rising costs due to inflation, LACADA has submitted a revised cost proposal for case management/housing navigation services, increasing the total to $254,000. This increase includes a 3% increase in operational expenses, as well as a 12% increase to indirect costs as approved by Negotiated Indirect Cost Rate Agreement. This is less than the anticipated cost increases that were anticipated at the time the agreement was approved last year; at that time, it was discovered that LACADA had made a mathematical error in their proposal that significantly lowered their proposal price. At that time, LACADA chose to honor the submitted figure, but warned that the second- year price request would be at the correct amount. Below is a break down the total price proposal. Programs and Services Contract for FY 2023-24 Case Management/Housing Navigation $254,000 Prevention & Diversion Reimbursements $75,000 Emergency Services Reimbursements $5,000 Contract Total $334,000 LACADA’s contract will also include reimbursements for allocations to persons experiencing homelessness or at-risk of becoming homeless through the Prevention and Diversion program and the Emergency Services program. These estimated costs will be in addition to the cost for case management/housing navigation services to make up the total contract amount. Prevention and Diversion funds and Emergency Services funds are not exclusively distributed by LACADA. This contract only reflects the amounts that LACADA will be reimbursed for and not the total amount the City will distribute. The chart below shows the total amounts remaining in Prevention & Diversion and Emergency Services. Programs and Services Total Amount Earmarked Estimated FY 2022-23 Expenditures Estimated Funds Remaining Prevention & Diversion (ARPA Funds) $250,000 $27,000 $223,000 Emergency Services (PHLA Funds) $100,000 $4,000 $96,000 Extension to the PSA for Homeless Case Management/ Housing Navigation Services June 6, 2023 Page 5 of 5 Should PLHA funds not be available to cover the cost of this contract, it is recommended that the costs be shifted to ARPA funds until PLHA funds are released. The City has $1 million in unallocated ARPA funds, which is sufficient to cover the entirety of the contract. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is, therefore, exempt under the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute an extension to the Professional Services Agreement for Homeless Case Management/Housing Navigation Services with Los Angeles C enters for Alcohol and Drug Abuse in an amount not to exceed $334,000, with the option to renew annually for two, one-year extensions. Attachment “A” - Amendment to Professional Services Agreement Regarding Case Management and Housing Navigation Services & Exhibit “C” Attachment “B” - Executed Professional Services Agreement Regarding Case Management and Housing Navigation Services This Amendment is made and entered into as of ___________ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066, and Los Angeles Centers for Alcohol and Drug Abuse, a California non-profit public benefit corporation with its principal place of business at 12070 Telegraph Road Suite 207 Santa Fe Springs, CA 90670, collectively referred to as “Parties”, with respect to the Professional Services Agreement between the Parties dated July 5, 2022 (“Agreement”). The Parties agree as follows: 1.Section 5 of the Agreement is amended by extending the term from July 1, 2023, through June 30, 2024 (“Extended Term”). 2.Section 2 of the Agreement is amended to provide that for the Extended Term, the Compensation, is amended as referenced in the attached Exhibit “C”. 3.All terms and provisions of the Agreement not amended by this Amendment are hereby reaffirmed. IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above. CITY OF ARCADIA LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE By: By: Dominic Lazzaretto Juan Navarro City Manager Executive Director Date: Date: ATTEST: By: Bill Tarkanian Director of Program Development By: City Clerk APPROVED AS TO FORM By: Mike Maurer City Attorney Date: Attachment “A” CITY OF ARCADIA AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT REGAURDING Case Management/Housing Navigation Services L.A. CADA Fee Increase FY 2023-2024 + Fiscal 2022-2023 $218,400 Operational Expenses Annual Office Expenses $ 1,200.00 Insurance $ 2,000.00 I Pad $ 1,200.00 Cell Phone $ 1,200.00 Program Supplies $ 3,014.29 PPE Supplies $ 3,600.00 Vehicle Maintenance $ 1,000.00 Gasoline for Van $ 4,200.00 Lease Van $ 7,691.12 3% increase on $218,400 $ 6,552 Total Direct Costs $ 31,657.41 Indirect Costs 12% approved NICR (Negotiated Indirect Cost Rate) $ 3,798.89 Total Budget Increase $ 35,456.30 Total Fiscal 2023-2024 rate = $253,856.30 EXHIBIT "C" Attachment "B"