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ITEM 12 |
City Council Memorandum Neighborhood Resources Memo No. N/A
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Date: |
April 1, 2024 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Tadd Wille, Assistant City Manager Leah Powell, Neighborhood Resources Director |
From: |
Riann Balch, Community Resources Manager |
Subject: |
Agreement No. 4758, with Metro Zona Hospitality, LLC, dba Aligned Hospitality Management, LLC, for Temporary Accommodation Services |
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Proposed Motion: |
Move City Council approve Agreement No. 4758, with Metro Zona Hospitality, LLC, dba Aligned Hospitality Management, LLC, for temporary accommodation services, in an amount not to exceed $525,000, for a period of one year, April 15, 2024, through April 14, 2025, with the option of up to four one-year extensions. |
Background/Discussion: |
Operation Open Door provides non-congregate emergency shelter and bridge housing via hotel/motel rooms to Chandler residents experiencing homelessness who are unable to utilize congregate shelter due to capacity limits, mobility limitations, sobriety requirements, behavioral expectations, or household composition. Vulnerable populations include older adults, persons with disabilities, and persons disparately impacted by COVID-19. Program participants receive intensive case management services and essential resources such as food and clothing through Chandler's Community Navigation team. The goal for each participant household is to exit directly to permanent housing or a longer-term program that provides a transition to permanency. Since the recent pandemic, non-congregate shelter has been recognized nationally and internationally as a best practice in ending homelessness. The non-congregate model allows providers to serve high-barrier populations that are not well served in congregate settings. This population utilizes the highest percentage of public resources when living without shelter. Other essential elements of non-congregate programs include the ability to accommodate partners and pets, a safe place to store belongings, and a place to refrigerate food and medications. Operation Open Door operates approximately 25 rooms per night based on availability of funds and temporary accommodations in the community. Requests for services, particularly from families with minor children and older adults, continue to increase with the rising number of evictions. In October 2023, the city entered into a contract with a local hotel to reserve 15 rooms on a nightly basis. This contract will secure an additional 10 rooms at a flat rate, protecting the city from market fluctuations which can change significantly based on post-pandemic consumer demand, seasonal attractions and large commercial events. In FY 2022-2023, Operation Open Door served 293 persons in 155 households, with 94% positive exits. In the same period, 16,074 bed nights were provided, with an average length of stay of 72 days. The total expenditure for temporary accommodations was $1,015,075.71, equating to an average of $144.49 per night across six properties. This contract will provide a block of 10 two-bedroom units for a flat fee of $46,000 per month, or $151.23 per night. Two-bedroom units will accommodate larger families in need of non-congregate shelter, which currently are required to use multiple hotel rooms for temporary housing. The program also makes two rooms in the community available each night to the Police and Fire departments for persons they may encounter responding to calls for service. Additional funds are available as agreed upon in the contract to reimburse the vendor for excessive damages. Operation Open Door is currently operating at Metro Zona Hospitality. This contract will increase the units available to the city and reduce the nightly rate. The city and the Metro Zona Hospitality have a positive working relationship and neither party has received negative feedback from the community regarding program operations at the property. Two City of Chandler Community Navigators are permanently assigned to Operation Open Door, serving participants seven days per week. The Metro Zona Hospitality office is also open from 9 am - 8 pm seven days a week. |
Evaluation: |
On March 27, 2023, city staff issued Request for Proposal No. NR3-952-4611 for temporary accommodation services. Notification was sent to all registered vendors. The city received no responses and the RFP was canceled. After the cancelation of the RFP, staff was contacted by Metro Zona Hospitality, LLC, dba Aligned Hospitality Management, LLC, to explore the possibility of securing a block of rooms supporting the need for temporary accommodation services. Staff met with representatives of the Redwood Inn to secure the dedicated room block and negotiate a monthly rate for the block. Staff believes the negotiated monthly rate is fair and reasonable and recommends award of the agreement to Metro Zona Hospitality, LLC, dba Aligned Hospitality Management, LLC. |
Financial Implications: |
Operation Open Door was initiated with American Rescue Plan Act (ARPA) and CARES Act funds made available to address the negative socioeconomic impacts of the COVID-19 Pandemic. A combination of previously allocated ARPA and General Funds will be utilized to fund this contract. |
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Fiscal Impact |
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