TITLE
Recommendation to receive and file Contract No. 35632, including the First, Second, Third and Fourth Amendments, with KJP II Enterprises, LLC, dba Days Inn Long Beach, located at 1500 East. Pacific Coast Highway, in an amount not to exceed $3,800,000 for the period of
October 1, 2020 to June 30,2022, for the provision of a non-congregate shelter for people experiencing homelessness who are at high risk if exposed to COVID-19, made pursuant to the authority granted to the City Manager by Resolution No. RES-20-0049, in response to the proclaimed emergency for COVID-19. (Citywide)
DISCUSSION
In April 2020, Governor Gavin Newsom announced a statewide goal to secure 15,000 hotel and motel rooms to house people experiencing homelessness and to help mitigate the spread of COVID-19 through Project Room Key (PRK). PRK provides non-congregate sheltering options for people experiencing homelessness who are over the age of 65 and/or have underlying health conditions that put them at a heightened health risk if exposed to COVID-19.
As part of the overall assessment of potential City of Long Beach (City) needs to respond to the serious and imminent threat of an outbreak of COVID-19, it was determined there was a need to enter into leases for the use of public or private property not owned or controlled by the City, for emergency responses such as additional homeless shelters, staging areas, and temporary public safety facilities. On April 14, 2020, the City Council authorized the City Manager to execute any and all documents necessary to enter into leases with public or private parties to lease or occupy real property in response to the proclaimed emergency due to the COVID-19 pandemic, and adopted a Resolution authorizing the City Manager to execute all necessary documents, including subcontracts and any subsequent amendments, to apply for, accept, and expend grant funding for financial assistance to respond to the COVID-19 pandemic.
On October 1, 2020, the City entered into a six-month agreement, with the option to extend the agreement by an additional six months, with KJP II Enterprises, LLC, for the hotel property doing business as Days Inn Long Beach, for the provision of temporary non-congregate sheltering for people experiencing homelessness.
On April 8, 2021, a First Amendment to the agreement was executed to extend the existing contract by six months, and on September 1, 2021, a Second Amendment to the agreement was executed to extend the contract for another four months. Additional funding was provided by the Federal Emergency Management Agency (FEMA), and on December 7, 2021, a Third Amendment to the agreement was executed to extend the contract through June 30, 2022. Subsequently, on February 7, 2022, a Fourth Amendment to the agreement was executed to increase the per-room rate by $6, for a total of $126 per room. This matter was reviewed by Deputy City Attorney Taylor M. Anderson on April 4, 2022, Business Services Bureau Manager Tara Mortensen on April 6, 2022, and by Budget Analysis Officer Greg Sorensen on April 8, 2022.
EQUITY STATEMENT
The City has incorporated the Equity Toolkit into this recommendation as requested by the City Council on April 21, 2020. This recommendation will assist people experiencing homelessness in Long Beach who are at increased vulnerability for COVID-19 exposure by providing quality shelter services in a non-congregate shelter model.
TIMING CONSIDERATIONS
City Council action to receive and file Contract No. 35632, and subsequent amendments, is requested on May 3, 2022, to ensure there is no interruption to services.
FISCAL IMPACT
The aggregate contract amount with Days Inn will not exceed $3,800,000 for the period of October 1, 2020, to June 30, 2022. Expenses for this lease are offset by grant funding from the U.S. Department of Housing and Urban Development (HUD) and FEMA. Sufficient funds are appropriated in the Community Development Grant Funds Group in the Development Services Department. This recommendation supports temporary non-congregate sheltering for people experiencing homelessness and exposed to COVID-19 and has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KELLY COLOPY
DIRECTOR
HEALTH AND HUMAN SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER