Consideration of Ratification of Contract:  City Council Ratification of the Professional Services Contract No. 2022-66 between the City of Flagstaff and Flagstaff Shelter Services in the amount of $50,000, to provide Emergency Homeless Services.

Consideration of Ratification of Grant Agreement:  City Council Ratification of the Grant Agreement No. CL6321A between the City of Flagstaff and Flagstaff Shelter Services for the Emergency Homeless Services Project utilizing $100,000 of the American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds.

1. Ratify the Professional Services Contract No. 2022-66 between the City of Flagstaff and Flagstaff Shelter Services in the amount of $50,000, to provide Emergency Homeless Services; and
2. Ratify the Grant Agreement No. CL6321A, between the City of Flagstaff and Flagstaff Shelter Services for the Emergency Homeless Services Project utilizing $100,000 of American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds. 

City Council is being requested to ratify the City Manager's Approval of a Professional Services Contract in the amount of $50,000.00 and a Grant Agreement in the amount of $100,000, between the City of Flagstaff (City) and Flagstaff Shelter Services (FSS) to provide Emergency Homeless Services. 

As part of the Fiscal Year 2021/2022 adopted budget, City Council designated $50,000 in general funds for the provision of Shelter Services. On October 12th, 2021, Council provided direction as to the use of the American Rescue Plan Act (ARPA) Coronavirus Local Fiscal Recovery Funds (Local Recovery Funds). City Council allocated $400,000 to congregate care services, such as homeless shelters, within the Public Health funding category. 

FSS provides emergency overnight shelter and day services to individuals experiencing homelessness in the Flagstaff area. Throughout the Coronavirus Pandemic, FSS has provided quarantine/isolation and non-congregate shelter, utilizing rented motel/hotel rooms. Congregate shelter resumed with the availability of the COVID-19 vaccine but FSS continues to provide isolation/quarantine to housing insecure individuals positive for COVID-19 or at extreme risk from exposure to the coronavirus. In order to provide non-congregate shelter services throughout the pandemic, FSS has exhausted all available "rainy-day" funding and directed every available resource to COVID-19 mitigation amongst individuals experiencing homelessness and to protect the Flagstaff community during these difficult times.

In November 2021, FSS contacted City staff and indicated an urgent need for $150,000 in emergency funding in order to continue to provide emergency shelter services in the Flagstaff area. These funds will be utilized by FSS to continue to provide non-congregate shelter options as needed and will support crucial payroll and general operating expenses.

Utilizing the City's Procurement Code Manual emergency procurement process, City staff determined it was prudent to immediately allocate $50,000 in non-departmental general funds, earmarked by Council in FY 21/22 budget for Shelter Services, to FSS through a Professional Services Contract and to enter into a Grant Agreement, providing an additional $100,000 in Local Recovery Funds. These emergency funding allocations ensure that FSS will continue to provide direct response to the coronavirus pandemic through the provision of safe, secure, temporary, and emergency shelter and services for individuals experiencing homelessness, including non-congregate shelter options for homeless individuals and families in need of quarantine or isolation due to COVID-19.

On January 3rd, 2022, the City Manager approved the Professional Services Contract No. 2022-66 between the City and FSS in the amount of $50,000. Additionally, the City Manager approved the Grant Agreement No. CL6321A, between the City and FSS. A Notice to Proceed to expend the funds has been provided to FSS.

As part of the Fiscal Year 2021/2022 adopted budget, City Council designated $50,000 (001-09-402-1311-1-4273) in general funds for the provision of Shelter Services. On October 12th, 2021, City Council provided direction to use the Local Recovery Funds. City Council allocated $400,000 (024-09-402-6321-1-4273) to congregate care services, such as homeless shelters, within the Public Health funding category.

Sections 602(b) and 603(b) of the Social Security Act (the Act) as added by section 9901 of the American Rescue Plan Act, Pub. L. No. 117-2 (March 11, 2021) authorize the Department of the Treasury to make payments to certain recipients from the Local Recovery Funds. The procurement for distribution of the Local Recovery Funds requires compliance with the Uniform Guidance at 2 C.F.R. § 200.317 through 2 C.F.R. § 200.327.

The Uniform Guidance allows for non-competitive procurements where the public exigency or emergency will not permit a delay from publicizing a competitive solicitation. 2 C.F.R. § 200.320. Further, the City of Flagstaff Procurement Code Manual authorizes Emergency Procurement where “public health, welfare or safety would be greatly hampered if the prescribed formal or informal purchasing procedure would cause an undue delay in procurement of the needed item or service.” Procurement Code, Section 19.1(D).

The expenditure of the Local Recovery Funds pursuant to this request complies with both the Uniform Guidance and Procurement Code provisions governing exigent or emergency procurements.

The emergency funding will help protect public health and individuals experiencing homelessness.

Priority Based Budget Key Community Priorities and Objectives

Safe & Healthy Community

• Support social services, community partners and housing opportunities.

Inclusive & Engaged Community

• Advance social equity and social justice in Flagstaff by supporting social services. 

Regional Plan

Goal NH.5. Eliminate Homelessness

• Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.
• Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
• Policy NH.5.3. Support and expand programs that prevent homelessness.

As part of the Fiscal Year 2021/2022 adopted budget, City Council designated $50,000 in general funds for the provision of Shelter Services.

On October 12th, 2021, City Council provided direction as to the use of the Local Recovery Funds and allocated $400,000 to congregate care services, such as homeless shelters, within the Public Health funding category. 

1. Ratify the Professional Services Contract No. 2022-66 between the City of Flagstaff and Flagstaff Shelter Services to provide Emergency Homeless Services; or
2. Do not ratify the Professional Services Contract No. 2022-06. 

and/or

1. Ratify the Grant Agreement No. CL6321A between the City of Flagstaff and Flagstaff Shelter Services for the Emergency Homeless Services Project utilizing $100,000 of Coronavirus Local Fiscal Recovery Funds; or
2. Do not ratify the Grant Agreement No. CL6321A.

FSS is the largest emergency shelter in Northern Arizona. FSS provides emergency overnight shelter, housing resources, and day services to all people experiencing homelessness and/or in crisis, regardless of faith, sobriety, ethnicity, or mental illness. FSS provides emergency shelter for 200-270 individuals, nightly. For individuals experiencing homelessness and positive for COVID-19, FSS provides quarantine/isolation in non-congregate shelter to individuals, utilizing rented motel rooms. This protects other vulnerable shelter clients as well as the greater Flagstaff community by preventing further spread of the coronavirus.
 
The City of Flagstaff is a recipient of Local Recovery Funds and on October 12th, 2021, City Council allocated $400,000 to congregate care services, such as homeless shelters, within the Public Health funding category. The adopted fiscal year 2021/2022 budget includes $50,000 of general funds for shelter services.

The CDC-recommended emergency shelter model of utilizing private motel/hotel rooms for non-congregate shelter saves lives but is also an extremely costly mitigation strategy. Since March of 2020, FSS has incurred $1.2 million in COVID-related costs. Because of this and the continued need to utilize the CDC-recommended model for COVID-19 mitigation, FSS requires $150,000 in emergency funding in order to continue to directly respond to the coronavirus pandemic and provide safe, secure, temporary, and emergency shelter and services to individuals experiencing homeless, including non-congregate shelter options for homeless individuals in need of quarantine or isolation due to COVID-19. Funds will be used for general operational expenditures including payroll expenses and motel/hotel rental costs, including expenses incurred dating back to July 1st, 2021.

In 2021, FSS served over 2,100 unduplicated individuals experiencing homelessness (up from about 1,100 in 2019) with over 35,000 bed nights at our congregate shelter and more than 41,000 bed nights at our quarantine hotel locations. FSS serves the majority of individuals experiencing homelessness in Flagstaff, Arizona, taking referrals from other congregate shelters in order to provide motel rooms for clients that positive for COVID-19 in order to protect the other residents and staff in those shelters. FSS has been a partner of the City for many years with a record of excellent stewardship of other grant and City funds.

FSS is a crucial resource for COVID-positive residents experiencing housing insecurity. FSS continues to rent rooms from a local hotel to provide homeless individuals who have contracted COVID-19 and lack stable housing with a safe, clean place to quarantine and recover. Community spread of COVID-19 in the Flagstaff area continues to be high and hospital capacity locally and statewide is greatly impacted by the high rate of transmission in the City as well as region wide. The services provided by FSS contribute greatly to Flagstaff’s efforts to contain spread of the coronavirus, amongst not only individuals experiencing homelessness, but the greater community as well.
 
The men, women, and children being serving by FSS are at an increased risk of both contracting and dying from the coronavirus. About 40% of those served are women, 98% of whom report having experienced physical or sexual abuse. Around 15% are seniors, 20% are veterans, and about half report struggling with chronic physical or mental illness. Indigenous neighbors are particularly over-represented in the homeless population in comparison to their portion of the general population in Flagstaff, with about 56% of those being served by FSS identifying as Indigenous (as compared to 7.8% of the general Flagstaff population). Indigenous individuals are at an increased risk of death or long term complications from COVID-19.

In the past year, FSS provided emergency shelter and resources to 200-270 people (including entire families) each night for a year at these temporary spaces and enabling households to effectively distance, thus minimizing the damage of the virus in Flagstaff as a whole. In 2021, FSS has served over 2,100 unduplicated individuals experiencing homelessness (up from about 1,100 in 2019) with over 35,000 bed nights at our congregate shelter and more than 41,000 bed nights at our quarantine hotel locations. FSS serves the majority of individuals experiencing homelessness in Flagstaff, Arizona, taking referrals from other congregate shelters in order to provide motel rooms for clients that positive for COVID-19 in order to protect the other residents and staff in those shelters.

The fiscal year 2021/2022 budget review and adoption process allowed for public participation, which is vital for the City Council in determining the current year priorities and objectives. Public participation included public hearings to receive public comments prior to final budget adoption. Budget legal schedules were published in the June 3rd, 2021, and June 10th, 2021, Arizona Daily Sun to allow for community review. In addition, the legal and other budget schedules were made available at City Hall, at both Flagstaff Public Libraries, and on the official city website.

City Council discussed Local Recovery Funds allocation amounts and categories for funding at the City Council work session on September 7th, 2021 and provided direction on use of the Local Recovery Funds on October 12th, 2021. These meetings were held in accordance with Open Meeting Law and include a public participation process allowing for public comments. There will be open and competitive application process for the additional Local Recovery Funds.