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CONTRACT K-2021-62: A LEASE AGREEMENT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SHELTER INVESTMENTS, L.L.C., FOR A MONTHLY RENTAL FEE OF $5,500 PER MONTH FOR THE LEASE OF REAL PROPERTY LOCATED AT 325 EAST COMANCHE STREET TO BE USED AS A WINTER WARMING SHELTER FROM NOVEMBER, 2020, UNTIL MARCH, 2021 AND BUDGET APPROPRIATION.
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BACKGROUND: The Salvation Army operates the only general occupancy Emergency Shelter in Norman, the capacity of this shelter is limited to 12 men, 12 women, and 2 families. The Salvation Army shelter is categorized as a “high barrier” shelter because of the requirements to have a valid ID and not be under the influence of drugs or alcohol. Because of the limited availability for overnight shelter and the potential severity of Oklahoma winter weather, the City of Norman in cooperation with the Norman/Cleveland County Continuum of Care operated a “low barrier”, winter warming shelter for homeless individuals from December 6, 2019 thru February 28, 2020. Low barrier simply describes that no identification is required and as long as the clients are not disruptive, they may be admitted even if under the influence. The location was the existing library which had been recently vacated. The operation was limited to the Lowery Room and the small conference rooms. The main area of the building as well as the office areas were not utilized. A total of 204 unduplicated individuals stayed at least one night during the 13 weeks of operation. The use of the same facility was not available this year due to the construction beginning on the Development Center. Staff investigated multiple locations for the shelter with the location at 325 E. Comanche being the most desirable in the criteria needed.
The Oklahoma Department of Commerce (ODOC) received $5,743,528 of Emergency Solutions Grant - Corona Virus (ESG-CR) Funds as a result of the CARES Act. The City of Norman applied for $147,692 to be utilized for the operation of a Winter Warming Shelter and enhanced street outreach to address the potential spread of COVID-19 within the homeless community and to provide overnight respite to individuals who are street homeless. The City of Norman was awarded the full amount requested. Contract K-2021-42 (17924 ESGCR 20) was approved by the Norman City Council on September 8, 2020 and funding appropriated.
On September 8, 2020, a location had not been determined for the Winter Warming Shelter. The location at 325 E. Comanche has now been determined to be the site for the operation of the 2021 Winter Warming Shelter. This location has been inspected by the Norman Fire Department and minimal modifications are needed to provide for a safe, secure, overnight emergency shelter for 35 occupants. This capacity provides for the recommended social distancing guidelines as prescribed by HUD and the CDC for a facility of this type.
The Lease Agreement with Shelter Investments, LLC (K-2021-62), is attached for Council review and approval. In addition, the Agreement (K-2021-63) for the provision of security with Elite Protection Services is to be considered under a separate item.
DISCUSSION: There are two agreements that require Council approval, the lease for the property K-2021-62; and the agreement for security services K-2021-63.
The Lease Agreement is with Shelter Investments, LLC for the property located at 325 E. Comanche, Norman, Oklahoma, for a term of one (1) year beginning November 1, 2020, at the rate of $5,500 per month. There is an option to renew the Lease for an additional one (1) year at the reduced rate of $4,200 per month. The landlord has agreed to add an additional ADA restroom and other needed improvements and alterations. The location will allow adequate space for required social distancing, with space for 35 cots. Space is also available for storage and office space for staff and security. The award from the ODOC provided for a total of $39,000 for rent, the cost for twelve months of rent is $66,000. The remaining $27,000 will be provided by the Community Development Block Grant CV3 award of $737,568 which is currently in the Citizen Participation Process and will be considered for acceptance by the Council at an upcoming meeting.
The operation of the Winter Warming Shelter will only be from November 2020 through March 2021, the space will then be utilized for storage of Winter Warming Shelter supplies and possibly additional homeless community outreach purposes but not the operation of a shelter outside this timeframe. Limited access will be available for Outreach Case Managers to meet with clients on an individual basis.
RECOMMENDATION #1: Staff recommends that Contract K-2021-62 with Shelter Investments, LLC be approved by City Council.
RECOMMENDATION #2: Funding in the amount of $39,000 is currently available in ESG-CV Rental and Leases, Office (21240021-44503). Staff recommends appropriation of $27,000 from Other Revenue-Misc Grant Reimbursement (109-331346) to Rental & Leases, Office (10440152-44503) representing State CARES Act money received in September 2020. It is planned that $27,000 will be replaced by Community Development Block Grant CV3 when awarded and accepted by Council at an upcoming meeting (as noted above).