Title
Authorization to Enter Into an Intergovernmental Agreement with Maricopa County to Accept Funding, to Amend Contract 159075 to Increase Funding, and to Enter into a Contract with Steel & Spark, LLC for Shelter and Affordable Housing (Ordinance S-51553) - Districts 7, 8 & Citywide
Description
Request to authorize the City Manager, or his designee, to execute an intergovernmental agreement (IGA) with Maricopa County to accept American Rescue Plan Act (ARPA) funding in a total amount of $7.5 million, comprised of $1.5 million to support emergency shelter, essential services, and facility operations at Central Arizona Shelter Services (CASS) single adult shelter and $6 million to support shelter and affordable housing activities by Steel & Spark, LLC. Additionally, request the City Council to grant an exception to the indemnity and assumption of liability provisions of Phoenix City Code Section 42-18 to allow for mutual indemnification pursuant to Phoenix City Code Section 42-20 for public entities.
Further request authorization to increase funding for Contract 159075 with CASS in an amount of up to $1.5 million to provide gap funding for emergency shelter services. This funding will be provided by the County pursuant to the IGA discussed above. The revised total contract value will not exceed $8,235,990.
Further request authorization to enter a contract with Steel & Spark, LLC to support shelter and affordable housing development activities in an amount up to $6.75 million. Up to $6 million will be funded with Maricopa County ARPA funding, pursuant to the IGA discussed above; the additional $750,000 is available in the Office of Homeless Solutions' (OHS) budget via existing grant funding.
Further request authorization for the City Manager, of his designee, to take any action or execute any document necessary to effectuate the purposes of this item and the IGA. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to these items.
Report
Summary
The OHS provides support and services for persons experiencing homelessness and is committed to ending homelessness through a comprehensive, regional approach to housing and services. With the rise of unsheltered individuals experiencing homelessness, resources are needed to serve this population with a focus on housing and services for those most vulnerable. Maricopa County expressed interest in supporting homeless and affordable housing initiatives and has allocated the use of ARPA funds to support these activities. Funding from the County to the City will be used to support operations at CASS and to further support affordable housing and shelter development by Steel & Spark, LLC.
A total of up to $1.5 million of the allocated funding will be utilized to support the City’s contract with CASS, providing emergency shelter and wraparound services to individuals experiencing homelessness. The shelter, which currently serves up to 600 single adult men and women, is located on the Key Campus. CASS is a provider of shelter services for single adults and families in Phoenix and Maricopa County and is the only facility that has the capacity to serve this large number of homeless individuals. The additional gap funding being provided is essential for the continuation of shelter services for the agency's single adult shelter.
A total of up to $6 million of the allocated funding, with an additional $750,000 available within OHS's budget from existing grant funding, will be utilized for installation of modular housing units and site improvements to support Steel & Spark, LLC's Senior Bridge project, an energy independent low-income housing development. This project expects to provide 40 units of transitional housing and 65 affordable apartments for low-income seniors (55+) at or below 30 percent Area Median Income (AMI). Funding will also be provided to support Steel & Spark, LLC's co-located emergency shelter program.
Contract Term
- The term of the IGA will begin on or about December 18, 2024, through December 31, 2026.
- The term of Contract 159075 with CASS will remain unchanged.
- The term of the contract with Steel & Spark, LLC will be for a period of five years, beginning on or about December 18, 2024, with options to extend up to five years at the discretion of the City.
Financial Impact
A total of $7.5 million in ARPA funding is provided by Maricopa County. The remaining $750,000 is available in OHS' budget from existing grant funding. There is no impact to the General Fund.
Concurrence/Previous Council Action
- On June 14, 2023, the City Council approved Contract 159075 with Ordinance S-49849.
- On February 7, 2024, the City Council approved an increase in funding under Contract 159075 with Ordinance S-50555.
- On February 21, 2024, the City Council approved an increase in funding under Contract 159075 with Ordinance S-50615.
Location
CASS Single Adult Shelter, 230 S. 12th Avenue (District 7)
Senior Bridge, 2853 E. Van Buren Street (District 8)
Council Districts: 7, 8 and Citywide
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Office of Homeless Solutions.