Title
Amend Ordinance S-46598 to Provide a Payment Guaranty for Emergency Shelter Services for Vulnerable Seniors or Those at Risk for COVID-19 and Waiver of Phoenix City Code 42-18 (Ordinance S-46776)
Description
Request to authorize the City Manager, or his designee, to amend Ordinance S-46598 to provide a payment guaranty by the City of Phoenix for the Facilities Use Agreement (FUA) relating to the City’s contract with Central Arizona Shelter Services, Inc. (CASS) to provide emergency shelter services for vulnerable seniors or those at risk for COVID-19. Further request the City Council to grant an exception pursuant to Phoenix City Code (PCC) 42-20 to authorize the City to indemnify and be liable for CASS's contractual liability in the event the FUA is terminated early. This would otherwise be prohibited by PCC 42-18 as PCC 42-18 restricts the CIty's indemnity/liability obligations for another third parties' contractual liability. There is no impact to the General Fund.
Report
Summary
On May 6, 2020, City Council authorized a contract with CASS to provide emergency shelter services for up to 100 vulnerable seniors or those at risk for COVID-19 in shelter or within the City to be placed in an alternate shelter location. As part of the services to be provided, CASS has entered into a Facilities Use Agreement (FUA) with a facility to house vulnerable seniors. CASS’s contracted facility has requested that the City provide a guaranty for the contract should CASS not fulfill its contractual obligation to provide payment. If approved, the City would guarantee the payment and, should CASS not pay this portion of the contract, the City would provide the payment for the emergency shelter service directly to the facility. Importantly, whether under the FUA or the guaranty, the City is at all times responsible for payment. This item does not add additional funding to the City’s contract with CASS but would give the City the ability to pay the facility directly from the City Council authorized funding.
Contract Term
The facilities portion of the contract term began on June 5, 2020 and will expire June 4, 2021. This contract may be extended based on continuous need and available funding, which may be exercised by the City Manager or designee.
Financial Impact
The aggregate value of the emergency shelter facilities costs within the City’s contract with CASS shall not exceed $1,740,000. There is no impact to General Fund. Funding for payment under the FUA or the guaranty will be provided with either the City's allocation of U.S. Department of Housing and Urban Development Emergency Solutions Grant, Community Development Block Grants, and/or the Coronavirus Relief Fund.
Concurrence/Previous Council Action
On May 6, 2020, City Council authorized staff to enter into a contract with CASS to provide emergency shelter, permanent housing and rapid rehousing services; and authorizing the City Controller to disburse funds.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development and Human Services departments.