REPORT. Chair and Members of the San Diego Housing Commission For the Agenda of October 11, 2013
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1 REPORT DATE ISSUED: September 16, 2013 REPORT NO: HCR ATTENTION: SUBJECT: Chair and Members of the San Diego Housing Commission For the Agenda of October 11, nd Contracts for the FY2014 Homeless Emergency Shelters COUNCIL DISTRICT: 2, 3 REQUESTED ACTION That the San Diego Housing Commission recommend that the Housing Authority of the City of San Diego authorize the execution of 2 five-month contracts for the operation of the FY2014 Single Adult and Veterans Homeless Emergency Shelters. STAFF RECOMMENDATION That the San Diego Housing Commission (Housing Commission) recommend the Housing Authority of the City of San Diego (Housing Authority) take the following actions: 1) Authorize the President & Chief Executive Officer (President & CEO) of the Housing Commission to execute a five-month contract with Alpha Project for the Homeless (Alpha) in the amount of $655,140 to operate the Single Adult Homeless Emergency Shelter. 2) Authorize the President & CEO of the Housing Commission to execute a five-month contract with Veterans Village of San Diego (VVSD) in the amount of $478,111 to operate the Veterans Homeless Emergency Shelter. 3) Authorize the President & CEO to execute such agreements and perform such acts as are necessary to implement this approval including all acts necessary to obtain reimbursement from the City, under the terms of existing contracts and/or MOUs, for any monies expended by the Commission that are not already in the possession of the Commission, if any, upon the advice of General Counsel. 4) Authorize the President & CEO of the Housing Commission to substitute funding sources for any proposed FY2014 contract extensions, without further action by the San Diego City Council (City Council), Housing Authority, or Board of Commissioners of the Housing Commission, but only if and to the extent that funds are determined to be available for such purposes. SUMMARY The Housing Commission administers the contracts for the City of San Diego s (City) shelter program based on a Memorandum of Understanding between the Housing Commission and the City that took effect on July 1, The City s shelter program has historically included two temporary structures to provide shelter for San Diego s homeless population during the winter months. The Single Adult
2 September 16, nd Contracts for the FY2014 Homeless Emergency Shelters Page 2 Shelter, located in downtown San Diego, is currently operated by Alpha. The Veterans Shelter, located in the Midway area, is currently operated by VVSD. On March 11, 2013, the City Council approved Mayor Bob Filner s request for additional funding to keep the Single Adult Shelter open through June 30, On April 23, 2013, at Mayor Filner s request, the City Council approved additional funding to keep the veterans shelter open through July 7, After approving these initial three-month extensions of shelter operations, the City Council passed its FY2014 Budget on June 10, The budget included an allocation of $1.9 million to the Housing Commission from City General Funds to extend the operation of the shelter program in fiscal year The City General Funds supplement the previously allocated FY2014 Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) funds for the Veterans Shelter operations. The Single Adult Shelter is funded entirely from City General Funds. At that time, the Housing Commission informed both City staff and the Mayor s office that these amounts would not be sufficient to cover all operator, utility, facility maintenance, and administrative costs associated with operating the shelters for 12 months. Since then, the Housing Commission has worked with City staff, the Mayor s office and the shelter operators to develop shelter budgets that are comprehensive and extend the operation of the shelters to the greatest extent possible, with a priority of ensuring that both facilities remain open during the traditional winter season. Under the current funding commitments, both shelters will remain operating through March 31, 2014, for a total of nine months in FY2014. The Housing Commission approved contracts for the first 4 months for both shelters on June 24, Pursuant to the Housing Commission s Procurement Policy PO PUR , the Housing Commission entered into contracts with Alpha and VVSD for operation of the shelters from July 1, 2013 through October 31, Since that time, the Housing Commission has researched procurement of service providers for these shelters and determined that competitive procurement is undesirable and impractical. In compliance with the Procurement Policy, the Housing Commission has made the findings in the attached sole source justification memos supporting selection of Alpha and VVSD as providers for the continued operation of the homeless shelters. (Attachments 1 &2) Approving this action will enable the Housing Commission to contract with Alpha and VVSD for an additional five months using the allocated City General Funds, CDBG and ESG funds. Once approved, contracts will be executed for five months, from November 1, 2013, through March 31, The contracts with Alpha and VVSD will be in a form as approved by General Counsel. FISCAL CONSIDERATIONS The proposed funding sources and uses approved by this action were approved in the Fiscal Year 2014 Housing Authority-Approved Budget. Approving this action will not change the Fiscal Year 2014 Total Budget. Approving this action will result in five months of temporary housing for a minimum of 200 homeless single adults and a minimum of 150 homeless veterans at an average cost of $21.56 per bed night.
3 September 16, nd Contracts for the FY2014 Homeless Emergency Shelters Page 3 Funding sources, previously approved, to be used by the contracts that are the subject of this action will be as follows: Single Adult Shelter City General Funds $655,140 Veterans Shelter CDBG $235,000 ESG $60,669 City General Funds $182,442 Subtotal $478,111 Total Sources $1,133,251 Funding uses approved by this action will be as follows: Loans and Grants - $1,133,251 Approving this action will further give the President & CEO, or his designee, the authority to substitute the above funding sources with other funding sources available, should the operational need arise or should such action be to the benefit of the Housing Commission and its mission. Funding substitutions will be ratified in an Informational Report at the next Housing Commission Board Meeting. EQUAL OPPORTUNITY/CONTRACTING Neither Alpha nor VVSD is certified as a Disadvantaged Business Enterprise. A Certificate of Compliance and Workforce Analysis have been provided and show that each vendor respectively, is in compliance with the Housing Commission s Equal Opportunity Program. Information on the Workforce Analysis indicates that there are no issues with diversity. Each vendor shall comply with Section 3 program regulations and requirements as applicable. PREVIOUS COUNCIL and/or COMMITTEE ACTION On June 24, 2013, the Housing Commission approved the first 4-month contracts for both shelters. On June 25, 2013, the San Diego City Council authorized the payment of the $1.9 million in City General Funds, CDBG and ESG funds for the shelters; approved the siting of the facilities; and declared a homeless shelter crisis in the City of San Diego. ENVIRONMENTAL REVIEW The activities described in the report are not a project as defined in California Environmental Quality Act (CEQA) Section and, therefore, are not subject to CEQA pursuant to Section (c)(3) of the State CEQA Guidelines and/or are categorically exempt under multiple separate provisions of CEQA, including Sections 15301, (e), 15311(c) which includes the placement of temporary or seasonal facilities designed for public use. This determination is not appealable and a Notice of Right to Appeal the Environmental Determination (NORA) is not required. The activity contemplated herein, including operation of the facility, is categorically excluded from the National Environmental Policy Act pursuant to Section 58.35(b)(2) and (3) and exempt per Section 58.34(a)(3) and (4) of Title 24 of the Code of Federal Regulations.
4 September 16, nd Contracts for the FY2014 Homeless Emergency Shelters Page 4 Respectfully submitted, Mathew Packard Mathew Packard Vice President Housing Innovations Approved by, Jeff Davis Jeff Davis Executive Vice President & Chief Operating Officer San Diego Housing Commission Attachments: 1) Alpha Project Justification of Sole Source Contract 2) Veterans Village of San Diego Justification of Sole Source Contract Hard copies are available for review during business hours in the main lobby of the San Diego Housing Commission offices at 1122 Broadway, San Diego, CA and at the Office of the San Diego City Clerk, 202 C Street, San Diego, CA You may also review complete docket materials on the San Diego Housing Commission website at
5 Attachment 1 JUSTIFICATION FOR NON-COMPETITIVE PROPOSALS (SOLE-SOURCE) CONTRACT WITH ALPHA PROJECT FOR THE HOMELESS FOR SERVICE ENHANCED SHELTER FOR HOMELESS INDIVIDUALS WHEREAS, the San Diego Housing Commission has contracted with the City of San Diego to administer the contracts for the Homeless Shelter Program, pursuant to the Memorandum of Understanding between the City and Housing Commission effective July 1, 2010, as amended; WHEREAS, there are approximately 3600 individuals living on the streets of downtown San Diego and there are insufficient beds to shelter these persons; WHEREAS, Alpha Project For The Homeless has operated the homeless shelter for adult individuals for the past ten years during the winter months, serving more than one thousand men and women during that time; WHEREAS, the Housing Commission has competitively solicited for an operator for the single adult shelter the past three years (SHI-11-2; HIT-12-01; SHI-13-03) with Alpha Project For The Homeless being the sole respondent. Additional outreach to potential local entities to operate the homeless adult shelter has not resulted in another vendor being willing and able to operate the facility; WHEREAS, compliance with the competitive process has failed to result in additional vendors willing and able to operate the single adult homeless shelter, and further public, competitive solicitations will not achieve the desired result of competition or another vendor submitting a proposal. Continued solicitations would therefore be undesirable and impractical; WHEREAS, future efforts to be taken to promote competition will involve presentations to the local Regional Continuum of Care Council (RCCC), outreach to local non-profit homeless consortiums, phone calls to agencies and publication of information in local publications and trade journals; WHEREAS, San Diego Housing Commission, Statement of Procurement Policy, authorizes the sole sourcing of contracts in specified circumstances (Section 14.2); NOW, THEREFORE, the San Diego Housing Commission makes the following findings in justification of the sole sourcing of a contract with Alpha Project for the Homeless for services associated with the operation of the single adult homeless shelter: A. Because of the continuing crisis due to the City s lack of sufficient beds to shelter homeless individuals, and the lack of competition for vendors willing and able to operate the shelter compliance with the competitive process would fail to achieve the goal of obtaining a qualified provider to operate the single adult homeless shelter, and soliciting bids or proposals through a competitive procurement would therefore be impractical. B. The findings presented in this memorandum satisfy the criteria set forth in Statement Of Procurement Policy Section 14.2 for the sole sourcing of contracts.
6 C. The price charged by Alpha Project For The Homeless for operation of the single adult homeless shelter is reasonable, based upon a cost and price analysis conducted in accordance with Statement Of Procurement Policy Section 4.2 (see below): A comparison of comparable per bed night costs between the Connections Housing facility interim bed program managed by People Assisting the Homeless (PATH) and Alpha Project for the Homeless shows a lower per bed cost for the single adult homeless shelter: PATH s Interim Bed Program: CDBG: 276,000 ESG (reduced): 95,338 SDHC: 40,000 PATH: 848,704 TOTAL: $1,260, beds x 365 nights = 54,750 bed nights $1,260,042 / 54,750 = $23.01 per bed night Alpha s Shelter: General Funds: 1,088,473 TOTAL: $1,088, beds x 270 nights = 54,000 bed nights $1,088,473 / 54,000 = $20.16 per bed night Dated: Mathew Packard Vice President Housing Innovations
7 Attachment 2 JUSTIFICATION FOR NON-COMPETITIVE PROPOSALS (SOLE-SOURCE) CONTRACT WITH VETERANS VILLAGE OF SAN DIEGO (VVSD) FOR SERVICE ENHANCED SHELTER FOR HOMELESS VETERANS WHEREAS, the San Diego Housing Commission has contracted with the City of San Diego to administer the contracts for the Homeless Shelter Program, pursuant to the Memorandum of Understanding between the City and Housing Commission effective July 1, 2010, as amended; WHEREAS, there are approximately 3600 individuals living on the streets of downtown San Diego and there are insufficient beds to shelter these persons; WHEREAS, Veterans Village of San Diego has operated the shelter for homeless veterans since 1997, serving thousands of veterans during that time; WHEREAS, the Housing Commission has competitively solicited for an operator for the veterans shelter the past three years (SHI-11-3; HIT-12-02; SHI-13-02) with Veterans Village of San Diego being the sole respondent. Additional outreach to potential local entities to operate the homeless veterans shelter has not resulted in another vendor being willing and able to operate the facility; WHEREAS, compliance with the competitive process has failed to result in additional vendors willing and able to operate the single adult homeless shelter, and further public, competitive solicitations will not achieve the desired result of competition or another vendor submitting a proposal, continued solicitations would therefore be undesirable and impractical; WHEREAS, future efforts to be taken to promote competition will involve presentations to the local Regional Continuum of Care Council (RCCC), outreach to local non-profit homeless consortiums, phone calls to agencies and publication of information in local publications and trade journals; WHEREAS, San Diego Housing Commission, Statement of Procurement Policy, authorizes the sole sourcing of contracts in specified circumstances (Section 14.1); NOW, THEREFORE, the San Diego Housing Commission makes the following findings in justification of the sole sourcing of a contract with Veterans Village of San Diego for services associated with the operation of the homeless veterans shelter: A. Because of the continuing crisis due to the City s lack of sufficient beds to shelter homeless veterans, and the lack of competition for vendors willing and able to operate the shelter compliance with the competitive process would fail to achieve the goal of obtaining a qualified provider to operate the homeless veteran shelter, and soliciting bids or proposals through a competitive procurement would therefore be impractical; B. The findings presented in this memorandum satisfy the criteria set forth in Statement Of Procurement Policy Section 14.2 for the sole sourcing of contracts;
8 C. The price charged by Veterans Village of San Diego for operation of the homeless veterans shelter is reasonable based upon a cost and price analysis conducted in accordance with Statement of Procurement Policy Section 4.1 (see below): A comparison of comparable per bed night costs between the Connections Housing facility interim bed program managed by People Assisting the Homeless (PATH) and VVSD shows a lower per bed cost for the homeless veteran shelter: PATH s Interim Bed Program: CDBG: 276,000 ESG (reduced): 95,338 SDHC: 40,000 PATH: 848,704 TOTAL: $1,260, beds x 365 nights = 54,750 bed nights $1,260,042 / 54,750 = $23.01 per bed night VVSD s Shelter: General Funds: 556,616 CDBG: 235,000 ESG: 60,669 TOTAL: $852, beds x 270 nights = 40,500 bed nights $852,285 / 40,500 = $21.04 per bed night Dated: Mathew Packard Vice President Housing Innovations
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