Print Back to Calendar Return
  Consent-General Government   #   13.    
Board of Supervisors Financial Services  
Meeting Date: 01/26/2021  
Brief Title:    Extend Emergency Hotel Agreements
From: Chad Rinde, Chief Financial Officer, Department of Financial Services
Staff Contact: Ryan Pistochini, Manager of Procurement, Department of Financial Services, x8218

Authorize County's Purchasing Agent to exercise options to extend various agreements for emergency hotel leases to continue emergency shelter and housing in response to the COVID-19 pandemic. (No general fund impact) (Rinde/Pistochini)
Recommended Action
Authorize the County's Purchasing Agent to exercise options up to June 30, 2021 for the following agreements:
  1. Crest Motel, for a potential revised maximum amount of $356,800;
  2. Econolodge Inn, for a potential revised maximum amount of $980,160;
  3. Economy Inn, for a potential revised maximum amount of $342,720;
  4. La Quinta Inn & Suites, for a potential revised maximum amount of $1,801,414;
  5. University Inn & Suites, for a potential revised maximum amount of $281,316; and
  6. Valley Oaks Inn, for a potential revised maximum amount of $1,869,769.
Strategic Plan Goal(s)
Thriving Residents
Reason for Recommended Action/Background
The County is participating in the State's Project Roomkey effort by securing a number of leases with local hotels to house vulnerable populations impacted by the COVID-19 pandemic.  The existing agreements are set to expire January 31, 2021.  The County desires to have flexibility to extend the leases, for up to 143 rooms, based on demonstrated need and funding availability on a monthly basis or portion thereof.  All leased sites are provided with additional services from local health providers and security service patrols.
Collaborations (including Board advisory groups and external partner agencies)
The Department of Financial Services collaborated with the Health & Human Services Agency and the County Counsel's Office.  The Health & Human Services Agency works with local cities regarding continued use of the hotels within their jurisdictions.
Competitive Bid Process
The initial contracts for emergency hotel leases were awarded based in order of their willingness to participate in the program, until the maximum aggregate number of rooms required was met.  Amendments for these hotels were selected in consultation with the local cities based on the ability to meet ongoing need.  Included as attachments to this agenda item are the most recent set of amendments that provide the County the opportunity to extend the leases on a month-to-month basis beyond January 31, 2021.

Fiscal Information
Potential fiscal impact (see notes in explanation section below)
Fiscal Impact of this Expenditure
Total cost of recommended action $2,741,376
Amount budgeted for expenditure $1,315,113
Additional expenditure authority needed $0
One-time commitment     Yes
Source of Funds for this Expenditure
CDSS Project Roomkey $500,000
CSBG CARES Funding $153,080
CDSS Roomkey/Rehousing $662,033
Further explanation as needed
The Department of Financial Services and the Health & Human Services Agency (HHSA) are working collaboratively to ensure funding is available for each month-by-month extension.  The County's Purchasing Agent does not authorize any extension of leases without HHSA demonstrating sufficient funding exists in later months.

Initial expenses through December 31, 2020 are paid using CARES program funding from the federal government.  The County has saved additional monies from multiple state funding to continue these leases through a portion of March 2021.  HHSA estimates that approximately $1,347,113 of funding is secured and available for the extensions. 

Approximately $1,426,263 of the maximum potential cost of this action remains unfunded.  HHSA has identified a mix of multiple funding sources that could be used to fund future months totaling up to $690,368.  The County is also applying for an Emergency Solutions Grant that, if successfully awarded, will fully fund the remaining months. Should these funding not be secured, HHSA will return to the Board with options of how to proceed. 
Att. A. Crest Motel Amendment 2
Att. B. Econolodge Amendment 4
Att. C. Economy Inn Amendment 1
Att. D. La Quinta Inn Amendment 4
Att. E. University Inn Agreement
Att. F. Valley Oaks Amendment 6

Form Review
Inbox Reviewed By Date
Chad Rinde Chad Rinde 01/15/2021 01:49 PM
Financial Services Chad Rinde 01/15/2021 01:49 PM
County Counsel Hope Welton 01/15/2021 01:54 PM
Form Started By: Ryan Pistochini Started On: 12/16/2020 06:08 PM
Final Approval Date: 01/15/2021
Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2021 Destiny Software Inc. All Rights Reserved.