Title
Update on the Provision of Homeless Services at the Empowerment Center (B)
This item is a request for the City Commission to hear an update on the recommendation of the Empowerment Center Oversight Board regarding the use of unspent funds from the FY14 agreement with the Alachua County Coalition for the Homeless and Hungry (ACCHH) for the provision of services at the Empowerment Center.
Explanation
This item supports City Commission Strategic Initiative 3.1: Continue implementation and engage in the update of the 10 year plan to end homelessness.
On January 14th, the Empowerment Center Oversight Board heard a presentation from the ACCHH regarding the use of unspent funds from the FY14 service agreement. A copy of the presentation is attached for your review (Attachment A). There is approximately $78,000 remaining in the service agreement with the ACCHH. The ACCHH was required to provide the City with a full expenditure report of all funds expended in FY14. During the negotiation of the revised service agreement, the ACCHH reported that there is approximately $78,000 that was not expended in the FY14 contract year. There were differences of opinions between the City staff and ACCHH staff on whether the unspent funds were to be carried forward or returned to the City and the County.
City staff believed they could no longer move forward with a revised service agreement until the Oversight Board was aware of the unspent funds and made a recommendation to the City and County Commissions. There were three options presented to the Oversight Board:
(1) reduce the revised service agreement with the ACCHH by $78,000 and modify the Interlocal Agreement with the County accordingly. The revised service agreement with the ACCHH for FY15 would be modified and the total amount of the contract would be for $481,680 instead of $559,680; or
(2) allow the ACCHH to carry forward the $78,000 unspent funds and modify the revised service agreement to increase the level of the services; and request that the Oversight Board receive a presentation from ACCHH on the proposed services and determine the new level of service for FY15; or
(3) return the $78,000 unspent funds to the City and County (to be divided equally). Both the City and County would receive approximately $39,000.
ACCHH expressed a preference for Option 2 to allow the funds be carried forward and ask the Oversight Board to receive a presentation on increased services.
The Oversight Board voted three to two to recommend that the City and County agree to allow ACCHH to place approximately 10% of the total funds recently approved by both Commissions in a contingency fund. In December 2014, the City and the County Commissions approved an additional $251,680 in funding for ACCHH; $25,000 would be approximately 10% of this amount. The Oversight Board recommendation was to allow ACCHH to place approximately $25,000 of the $78,000 in a contingency fund within the ACCHH budget and reduce the remaining funds of $53,000 from the total payments in the revised service agreement for FY15. The revised total funds allocated to ACCHH for FY15 would be $506,680 instead of the previously approved $559,680.
To implement the Oversight Board's recommendation, both commissions must approve the funding decrease and amend the Interlocal Agreement between the City and the County. Furthermore, the City and the ACCHH must amend the revised Service Agreement.
Fiscal Note
The City Commission and the Alachua County Board of County Commissioners each provide $279,840 ($559,680 total) for the provision of homeless services at the Empowerment Center for FY15. The Oversight Board recommended a decrease of approximately $53,000 to the revised FY15 agreement due to unspent funds from the FY14 agreement. The recommendation included dividing that decrease equally between the City and the County, resulting in a reduced cost of approximately $26,500 each.
Recommendation
The City Commission: 1) hear an update from staff; 2) consider the recommendation from the Oversight Board to allow the ACCHH to place approximately $25,000 of the $78,000 in a contingency fund within the ACCHH budget and reduce the remaining funds of $53,000 from the total payments in the revised service agreement for FY15; 3) authorize the City Manager to execute an amendment with the County to the Interlocal Agreement, subject to approval as to form and legality by the City Attorney; and 4) authorize the City Manager to execute an amendment to the Service and/or License Agreement with ACCHH, subject to approval as to form and legality by the City Attorney.