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  Consent-General Government   #   3.    
Board of Supervisors Special Meeting Financial Services  
Meeting Date: 04/28/2020  
Brief Title:    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

Subject
Authorize the Purchasing Agent, or their designee, to exercise option months to extend emergency hotel agreements on a month-to-month basis for up to three months through July 31, 2020; and ratify contracts with an initial term of April 1, 2020 through July 31, 2020 with an option to extend through June 30, 2021, executed by the Purchasing Agent to provide emergency support services to clients housed in the County’s non-congregant housing leases. (No general fund impact) (Rinde/Pistochini)
Recommended Action
A. Authorize the Purchasing Agent, or their designee, to exercise option months to extend emergency hotel agreements on a month-to-month basis for up to three months through July 31, 2020, should there be a continued need for emergency housing during the COVID-19 emergency:
 
  1. La Quinta Inn, of Davis, up to a maximum of $509,320
  2. Motel 6 Davis, of Davis, up to a maximum of $342,368
  3. Econo Lodge Inn, of Woodland, up to a maximum of $245,400
  4. Great Value Inn, of Woodland, up to a maximum of $150,800
  5. Crest Motel, of West Sacramento, up to a maximum of $90,400
  6. Rodeway Inn Capitol, of West Sacramento, up to a maximum of $430,920
  7. Stardust Motel, of West Sacramento, up to a maximum of $159,300
B. Ratify the following contracts with an initial term of April 1, 2020 through July 31, 2020 with an option to extend through June 30, 2021, executed by the Purchasing Agent to provide emergency support services to clients housed in the County’s non-congregant housing leases:
 
  1. CommuniCare Health Centers, for a contracted amount of $335,745.46 and an option to extend up to a maximum of $1,259,045.42.
  2. Empower Yolo, for a contracted amount of $78,312.00 and an option to extend up to a maximum of $293,670.00.
  3. Turning Point Community Programs, for a contracted amount of $122,981.90 and an option to extend up to a maximum of $461,182.18.
  4. Yolo County Children’s Alliance, for a contracted amount of $100,000.00 and an option to extend up to a maximum of $375,000.00.
Strategic Plan Goal(s)
Thriving Residents
Reason for Recommended Action/Background
Emergency Hotel Agreements
These agreements were executed by the Purchasing Agent throughout April 2020 to provide non-congregant housing of people impacted by the COVID-19 event and shelter in place orders and the initial dollar amounts were within the Purchasing Agent's authority.  The County entered into leases for a total of 192 rooms, with another 54 rooms pending.  All leases are set to expire at the end of April 30, 2020 unless the County exercises an option to extend the lease.  The option allows the county to extend the leases on a month by month basis through July 30, 2020.

County staff contacted multiple hotels and motels within the County to solicit participation in the emergency hotel program.  These contracts were awarded to the hotels based in order of their willingness to participate in the program, until the maximum aggregate number of rooms required was met.  Procedures were performed to document the reasonability of costs in accordance with state and federal standards. Funding for the leases are anticipated to come from a mix of sources, including, but not limited to, HHSA COVID-19 contingency funds, California COVID-19 Project Room Key grants, and FEMA public assistance grants.  The Purchasing Agent is part of active internal discussions of the process to wind down the leases should FEMA decide not to extend funding support of non-congregant housing which is currently pending.  Should the Board of Supervisors elect not to approve these contracts and delegate authority to exercise the options, the leases will naturally expire on April 30, 2020.

Emergency Support Services for Non-Congregant Housing
The Purchasing Agent, upon request by the Health and Human Services Agency, entered into four contracts to provide case management services to clients housed at any of the County’s non-congregant housing leases.  Services for these contracts commenced on April 7, 2020.  Case management services include, check-in with clients on weekdays, connecting people to health care, mental health, substance abuse, and housing support services, arranging transportation needs, delivering medication, and providing assistance for benefit eligibility determinations. Additionally, CommuniCare, as part of their contract, will provide field based medical assessment and intervention services at all of the hotel sites.

These contracts are awarded through a non-competitive process based on the contractor’s established ties to the community, their history of providing similar services, and their ability to timely meet the County’s need under emergency circumstances.  These contracts normally exceed the Purchasing Agent’s signing authority because the Purchasing Agent is only able to sign up to $200,000 of expenses per fiscal year with each contractor.  The contracts’ initial term is funded by the HHSA COVID-19 contingency funds, California Medical Services Program (CMSP) allocation, California COVID-19 Emergency Response Grant and the Mental Health Services Act (MHSA).  The portion of the CommuniCare contract providing medical services is additionally funded in part by Dignity’s and Sutter’s community benefit program donations.  The contracts can be extended on a month to month basis through June 30, 2021 as needed and if funding is available subsequent to the initial contract date of July 31, 2020.  Should the Board of Supervisors elect not to approve these contracts, the Purchasing Agent will exercise the early termination provisions by giving contractors a ten-day notice prior to the effective date of termination.
Collaborations (including Board advisory groups and external partner agencies)
The contracts were developed in collaboration with the County Counsel's Office and the Health and Human Services Agency.
Competitive Bid Process
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. 

Contracts for emergency support services were awarded through a non-competitive process based on the contractor’s established ties to the community, their history of providing similar services, and their ability to timely meet the County’s need under emergency circumstances. 
 

Fiscal Information
Fiscal impact (see budgetary detail below)
Fiscal Impact of this Expenditure
Total cost of recommended action $2,189,173
Amount budgeted for expenditure $2,189,173
Additional expenditure authority needed $0
One-time commitment     Yes
Source of Funds for this Expenditure
Mixed Funds $2,189,173
Further explanation as needed

The amounts in this section above reflects the cost to authorize the Purchasing Agent to execute all month-by-month options for the leases and to ratify the initial term of the emergency support services agreements.

The emergency hotel agreements are funded by a mix of sources, including, but not limited to, HHSA COVID-19 contingency funds and California COVID-19 Project Room Key grants.  Additionally, the County will seek additional funding support from FEMA public assistance grants. The intent is to utilize the $500,000 in Project Roomkey grants and $640,000 of the HHSA contigency funds as the local 25% match to leverage FEMA reimbursement where possible to cover this large cost. Certain placed individuals may not be FEMA eligible and the costs of those individuals would be wholely covered by these other sources. There is some risk that should proper documentation not be retained, proper FEMA eligibility documentation not be obtained, that FEMA may decide to disallow certain costs of this operation. In that instance, there is a high likelihood that disallowed costs will become a general fund liability. The general fund has limited ability to absorb those costs at this time as the County is working to reduce the general fund budget for the 2020-21 fiscal year due to COVID-19 revenue impacts. Staff are exercising a heightened level of diligence in documentation in order to prevent cost disallowance to the extent possible but FEMA guidance and California state guidance is still fluid. Thus this risk of potential cost disallowance and general fund obligation needs to be acknowledged in the approval of these agreements.

The emergency support services contracts are funded by the HHSA COVID-19 contingency funds, California Medical Services Program (CMSP) allocation, California COVID-19 Emergency Response Grant and the Mental Health Services Act (MHSA). The general fund is not expected to have additional risk related to these agreements.

Attachments
Att. A1. La Quinta Lease
Att. A2. Motel 6 Davis Lease
Att. A3. Econo Lodge Woodland
Att. A4. Great Value Inn
Att. A5. Crest Motel
Att. A6. Rodeway Inn Capitol
Att. A7. Stardust Motel
Att. B1. CommuniCare Health Centers
Att. B2. Empower Yolo
Att. B3. Turning Point Community Programs
Att. B4. Yolo County Children's Alliance

Form Review
Inbox Reviewed By Date
Chad Rinde Chad Rinde 04/22/2020 11:04 AM
County Counsel Hope Welton 04/22/2020 12:21 PM
Carolyn Jhajj Lupita Ramirez 04/22/2020 12:30 PM
County Counsel Hope Welton 04/23/2020 03:20 PM
Carolyn Jhajj Carolyn Jhajj 04/23/2020 03:31 PM
Form Started By: Ryan Pistochini Started On: 04/01/2020 11:07 AM
Final Approval Date: 04/23/2020
Level double AA conformance,
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