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CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 BUSINESS AND LEGISLATIVE
SUBJECT: APPROVE CHANGES TO UNEXECUTED FOURTH CONTRACT
AMENDMENT TO AGREEMENT NO. 8922 WITH MARTHA’S VILLAGE
AND KITCHEN FOR OPERATIONS OF THE PALM SPRINGS DAYTIME
DROP-IN ACCESS CENTER
FROM: Scott C. Stiles, City Manager
BY: Community & Economic Development Department
SUMMARY:
On April 27, 2023, the City Council approved a fourth amendment to Agreement No.
8922 with Martha’s Village and Kitchen (Agreement) to operate a daytime drop-in center
at 225 El Cielo Drive (Access Center) and wrap-around services for homeless
individuals. The purpose of the April 27, 2023 fourth amendment was to correct the
contract amounts that were reflected in Amendment No. 3, exercise the option to extend
the term of the Agreement one year; and allow for temporary overnight shelter services
from June 1, 2023 to September 30, 2023, and December 1, 2023 to February 29,
2024. However, Martha’s Village and Kitchen has informed staff that given funding
constraints they cannot commit to providing services for the entire one-year term and
have requested the agreement term to be limited to just three months. In addition, they
are requesting the City pay the entire amount for the services which is a modification
from the current Agreement where costs are split between Martha’s Village and Kitchen
and the City. The proposed action would approve a new Amendment No. 4
(Attachment A) to extend the Agreement to September 30, 2023, instead of June 30,
2024, and to change the amount of the contract from $212,050 for the twelve-month
period to $137,000 for the three-month period. There will be no impact to the temporary
overnight shelter operations which are funded by the County of Riverside.
RECOMMENDATION:
1. Make corrections to Amendment No. 3 to reflect an annual amount of $212,050,
an increased overnight sheltering amount of $105,464 and a revised total not to
exceed contract amount for the third amendment to be $529,564.
2. Approve Amendment No. 4 to Agreement No. A8922 with Martha’s Village and
Kitchen to:
Item 3C - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
Martha’s Village Agreement Amendment
a. Exercise option to extend Agreement until September 30, 2023.
b. Change the amount of compensation for the three-month period to
$137,026 and the revised total compensation not to exceed the contract
amount of $666,590.
c. Allow temporary overnight shelter services from June 1, 2023, to
September 30, 2023, at no additional cost to the City.
3. Authorize the City Manager or designee to make minor technical changes and
execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
See Attachment B.
BACKGROUND:
On August 25, 2021, the City and Contractor entered into the Agreement for homeless
daytime drop-in and wrap-around services at 225 El Cielo Drive in Palm Springs
(Access Center).
On October 26, 2021, City and Contractor executed the First Amendment (First
Amendment) to increase the Compensation for added services.
On December 29, 2021, City and Contractor executed the Second Amendment (Second
Amendment) to allow for 3 Full Time Equivalent Security (FTE) rather than 2.5 FTE as
stated in the Agreement.
On December 29, 2022, City and Contractor executed the Third Amendment (Third
Amendment) to allow overnight shelter services at the Access Center from January 2,
2023, to February 28, 2023.
On April 27, 2023, City Council approved the Fourth Amendment to correct the Third
amendment, to extend the term and add overnight services, however when staff
attempted the have this amendment executed, Martha’s Village had a change in funding
situation and could not execute the amendment as approved by Council. Therefore,
staff has revised this Fourth Amendment as outlined in this staff report to reflect the
latest request from Martha’s Village.
STAFF ANALYSIS:
Daytime drop-in services provided under the Agreement included Wrap Around services
for homeless individuals to be provided at the Access Center. Examples of wrap around
services include assisting individuals to obtain permanent housing and supportive
housing, assisting individuals with securing health, disability, social security and other
benefits, training for computer skills, internet searches for employment, completing on-
Item 3C - Page 2
City Council Staff Report
June 5, 2023 -- Page 3
Martha’s Village Agreement Amendment
line employment applications, assist with interview techniques, employment assessment
of an individual’s employment strengths and weaknesses, and basic first aid training
and assistance with securing food handlers certificates. The Wrap Around services
have been provided at the Access Center since August 2021.
The previous version of the fourth amendment (approved by City Council on April 27,
2023) was intended to extend the term of the Agreement one year. It also corrected the
contract amounts that were reflected in Amendment No. 3, and allowed for temporary
overnight shelter services from June 1, 2023, to September 30, 2023, and December 1,
2023, to February 29, 2024.
Unfortunately, funding previously available to Martha’s Village and Kitchen for the
operation of the Access Center is no longer available. Therefore, they are unable to
commit to providing services at the Access Center for daytime drop-in services beyond
September 30, 2023. However, it should be noted there will be no impact on the
temporary overnight shelter operations which are funded by the County of Riverside and
will operate until September 30, 2023.
The Agreement is currently set to expire on June 30, 2023. Approval of the Fourth
Amendment will allow the daytime drop-in services to continue until September 30,
2023. Staff will work with Martha’s Village and Kitchen during that time to assess the
feasibility of continuing the daytime drop-in services beyond September 30, 2023, and
to evaluate other options to continue these services.
The temporary overnight shelter operations which will be funded by the County of
Riverside will continue as planned, from June 1, 2023, until September 30, 2023. Like
the daytime drop-in services, staff will work with Martha’s Village and Kitchen to assess
the feasibility of providing a temporary overnight shelter during the winter months and to
evaluate other alternatives for providing overnight shelter during this time.
As noted above, this action will also make a technical correction to Amendment No. 3 to
accurately reflect compensation provided for overnight shelter operations at the Access
Center during the months of January 2023 and February 2023. Amendment No. 3
erroneously indicated the revised compensation would be $317,514 “per year.”
Amendment No. 3 should have reflected that as $212,050. In addition, the total value of
the contract was understated as it left out the second year of the contract. The proposed
Fourth Amendment corrects the compensation in Fiscal Years 2024 and 2025 to be
$212,050 and the total contract value to read $529,564.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the
whole of an action, which has a potential for resulting in either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the
Item 3C - Page 3
City Council Staff Report
June 5, 2023 -- Page 4
Martha’s Village Agreement Amendment
environment. The requested action is to amend a lease of a City-owned property and is
exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include:
(5) Organizational or administrative activities of governments that will not result in direct
or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with City Council Priority 1A, Improve Homelessness.
FISCAL IMPACT:
The Agreement in the amount of $529,564 is already funded for the current Fiscal Year
2023. Funding for the Agreement in the amount of $137,026 for Amendment No. 4 has
been requested as part of the Fiscal Year 2024 Budget.
REVIEWED BY:
Department Director: Jay Virata
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment 4 to Contract Services Agreement for Homeless Daytime Drop-in
Center and Wrap Around Services
B. Business Disclosure Form
Item 3C - Page 4
ATTACHMENT A
Item 3C - Page 5
ATTACHMENT A
AMENDMENT NO. 4 TO CONTRACT SERVICES AGREEMENT
MARTHA’S VILLAGE AND KITCHEN
This Amendment No. 4 ("Fourth Amendment") to Contract Services Agreement with Martha’s
Village and Kitchen is hereby entered into this ___ day of ________________, 2023, by and between
the City of Palm Springs, a California charter city and municipal corporation, ("City"), and Martha’s
Village and Kitchen, a 501 (c) 3 non-profit corporation, (“Contractor”). City and Contractor are
individually referred to as “Party” and are collectively referred to as the “Parties”.
Recitals
1. On June 24, 2021, the Palm Springs City Council authorized the City Manager to
execute an Agreement with Martha’s Village and Kitchen to provide a homeless daytime drop-in
center operator, and wrap-around services.
2. On August 25, 2021 the City and Contractor entered into a Contract Services
Agreement (Agreement) by which the Contractor is to provide a homeless daytime drop-in center
operator, and wrap-around services, for individuals who are homeless or at risk of becoming
homeless at the City facility located at 225 El Cielo Drive in Palm Springs for a term of two years,
with two (2) one-year (1-year) options to extend with the initial term commencing on August 1,
2021 and ending on June 30, 2023 for a not to exceed amount of $75,000 per year totaling $150,000
for the initial term .
3. On October 26, 2021, City and Contractor entered into the First Amendment (First
Amendment) to increase the Compensation not exceed $137,050 per year for increased services for
a revised annual total of $212,050 per year and totaling $424,100 for the initial term ending June 30,
2023, with all other terms and conditions to remain the same .
4. On December 29, 2021, City and Contractor entered into the Second Amendment
(Second Amendment) to allow for 3 Full Time Equivalent Security (FTE) rather than 2.5 FTE as
stated in the Agreement for no additional cost to the City.
5. On December 29, 2022, City and Contractor entered into the Third Amendment
(Third Amendment) to allow overnight shelter services from January 2, 2023, to February 28, 2023,
for an amount not to exceed $105,464 for a revised contract amount not to exceed $529,564 for the
initial term ending June 30, 2023.
6. City and Contractor now desire to amend the Agreement to exercise a portion of the
first option, to allow overnight shelter services from June 1, 2023, to September 30, 2023, and to amend
the Compensation for the three-month period to be $137,026, for a total contract amount not to exceed
$666,590.
NOW, THEREFORE, the City and Contractor hereby agree as follows:
Agreement
1. The recitals are true and correct and are incorporated by this reference.
Item 3C - Page 6
2. Section 1.1 Scope of Services, is amended to include the addition of overnight
emergency shelter services from June 1, 2023, to September 30, 2023.
3. Section 3.1 Compensation of Contractor of the Agreement be revised to read as
follows:
Contractor shall be compensated and reimbursed $137,026 for the three-month period
from July 1, 2023, to September 30, 2023, for basic services, for a revised overall
contract amount not to exceed $666,590.
4. Section 4.4 Term of the Agreement is revised to exercise a portion of the option and
extend the term of the Agreement to September 30, 2023.
5. All other terms and conditions of the Agreement shall remain in full force and effect.
Item 3C - Page 7
IN WITNESS WHEREOF, the parties have duly executed this Amendment on the date first set forth
above.
MARTHAS VILLAGE AND THE CITY OF PALM SPRINGS
KITCHEN ("Contractor") ("City")
By: _______________________ By: ________________________
Sam Hollenbeck Scott C. Stiles
President & Chief Executive Officer City Manager
Approved as to Form:
__________________________
Jeff Ballinger
City Attorney
Attest:
__________________________
Brenda Pree
City Clerk
Item 3C - Page 8
ATTACHMENT 1
2023-2024 Scope of Services Addendum
In addition to the terms and conditions of the Agreement by and between the City of Palm Springs,
a California charter city and municipal corporation, and Martha’s Village and Kitchen, a 501 (c) 3
non-profit corporation, dated August 25, 2021, and amended on October 26, 2021, December 29,
2021, and December 29, 2022, Contractor shall provide Additional Services at the Palm Springs
Access Center, located at 225 El Cielo Drive, as described below:
1. Contractor will provide low barrier overnight relief for unsheltered homeless
individuals. Food Service may be provided to clients receiving Additional
Services.
2. The Additional Services will be provided from June 1, 2023, to September 30,
2023.
3. The hours for the Additional Services will be 4:30 PM to 7:30 AM nightly.
4. A maximum of 40 individuals per night can be provided the Additional Services.
5. All other terms and conditions of the Agreement shall remain in full force and
effect.
Item 3C - Page 9
ATTACHMENT B
Item 3C - Page 10
Item 3C - Page 11
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
1 . Name of Entity
2. Address of Entity (Principle Place of Business)
C-A
3. Local or California Address (if di
4 . State where Entity is Registered with Secretary of State
)..J.. 0 (
If other than California , is the Entit also re istered in California?
5 . Type of Entity
~orporation D Limited Liability Company D Partnership D Trust D Other (please specify)
No
6. Officers, Directors, Members, Managers , Trustees, Other Fiduciaries (please specify)
Note: If any response is not a natural person, please identify all officers, directors,
members, managers and other fiduciaries for the member, manager, trust or other entity
-~S_C!._rl-i_/{~o~f~{_.ew~b~.12._d(~-------~fficer D Director D Member D Manager
[name]
D General Partner D Limited Partner
D Other ____________ _
~~~~~~~'v-__,__£,v __ d_v _'l:_CLJ _________ ~fficer D Director D Member D Manager
[name]
D General Partner D Limited Partner
D Other _____________ _
-~J~o_v1_ei~T~h ..... a~11.~ .... e.-.....~ .......... e---,t1,__ ______ • Officer ~rector • Member • Manager
[name] ./
(Revised 09 13 18)
D General Partner D Limited Partner
D Other _____________ _
CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
Page 1 of 2
Item 3C - Page 12
7. Owners/Investors with a 5% beneficial interest in the Aoolicant Entity or a related entity
EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
A.
N/lk
[name of owner/investor] [percentage of beneficial interest in
entity
and name of entityl
B.
fJ I A
[name of owner/investor] [percentage of beneficial interest in
entity
and name of entity]
C. JJ/ A
[name of owner/investor] [percentage of beneficial interest in
entity
and name of entity]
D. N/A
[name of owner/investor] [percentage of beneficial interest in
entity
and name of entity]
E.
tJ/Jr
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF
CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
(Revised 09 13 18)
CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
Page 2 of 2
Item 3C - Page 13
MARTHA'S VILLAGE AND KITCHEN, INC.
BOARD OF DIRECTORS AND KEY EMPLOYEE LIST
AS OF APRIL 12, 2023
NAME
Henry Burdick
Jon at ha n Espy
Brian Amidei
Mike Bell
Howard Lincoln
Duane Jacobs
Scott Sweeney
Jonas Udcoff
Blaine Amidei
Thomas Park
Kate Fauntleroy
NAME
Sam Hollenbeck
Rosa Verduzco
Debra Pollock
Vanessa Walker
BOARD/ORGANIZATION TITLE
Co-Chairman
Co-Chairman
Vice-Chairman
Treasurer
Secretary
Director
Director
Director
Director
Director
Director
KEY EMPLOYEES
President/ CEO
Executive Vice President
Vice President of Development and Communications
Vice President of Finance