HomeMy WebLinkAboutD.4 - Staff Report - LA CADA homeless outreach contract amendment 5-5-2025SCHEDULED ITEM
D-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: LUCY DEMIRJIAN, SENIOR PROJECT MANAGER
DATE: MAY 5, 2025
SUBJECT: APPROVAL OF FIRST CONTRACT AMENDMENT WITH THE LOS
ANGELES CENTER FOR ALCOHOL AND DRUG ABUSE FOR CONTINUED
OUTREACH AND CASE MANAGEMENT SERVICES FOR PEOPLE
EXPERIENCING HOMELESSNESS
BACKGROUND:
In response to the continuing homeless crisis, the City Council approved a contract with the Los
Angeles Center for Alcohol and Drug Abuse (L.A. CADA) for homeless outreach services
exclusively within the City of Azusa.
L.A. CADA is a California nonprofit public-benefit corporation and licensed substance use and
behavioral treatment provider. L.A. CADA has provided regional outreach services under the San
Gabriel Valley Council of Governments (SGVCOG) regional homelessness program supplemental
services contract. The City approved expansion of services under a City-controlled contract to
double down on efforts in addressing the growing population of homeless and at-risk individuals
in the City. Most recently, the City was notified it will no longer be receiving supplemental services
through the SGVCOG beginning July 1, 2025, as the City will be receiving its allocation of funding
from Measure A for the Azusa Resource Center operations, thus opting out of regional services.
The initial contract approved by the City of Azusa was for a one-year term. The ongoing need for
continued field outreach requires an extension to the contract. Staff is recommending exercising
the additional 2-year extension with L.A. CADA, subject to CPI adjustments, for continuity of
services and in order to coincide with the biennial City Budget adoption.
Approved
City Council
May 5, 2025
Contract Amendment with L.A. CADA for Homeless Outreach Services
May 5, 2025
Page 2
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Approve the first amendment to the contract with L.A. CADA for continued outreach and
case management services within the City of Azusa for an additional 2-year term, subject
to language modifications acceptable to the City Attorney; and
2) Direct staff to continue to seek grant funding to support homeless programs; and
3) Allocate $222,480 for FY 2025-26 and $229,154 for FY 2026-27 from the General Fund,
while final funding sources are identified.
ANALYSIS:
L.A. CADA is a California nonprofit public-benefit corporation with expertise to provide outreach
and case management services for people experiencing homelessness in the City. Outreach
Navigators provide ongoing engagement and hygiene assistance, including clothing, water, and
snacks. The Outreach Team provides intensive case management three days per week, which focus
primarily on documentation and homelessness evaluation. The Outreach Team may conduct an
American Society of Addiction Medicine (ASAM) assessment and, if necessary, clients are
transported to either detox or residential treatment based upon outcome of assessment. The team
has been critical in identifying qualified individuals for placement in the Azusa Resource Center.
L.A. CADA case workers have developed an effective partnership with the Azusa Police, Code
Enforcement, and Library in successfully engaging with the local unhoused population and
providing linkage to resources and basic necessities. Although the City will no longer be receiving
the SGVCOGs regional supplemental services, the City contract for exclusive services 3 days a
week should be maintained for continued outreach and on the field support.
The initial City contract with L.A. CADA provides for five, one-year options to extend the term
upon mutual agreement of the parties with CPI adjustments not to exceed 3% annually.
Staff negotiated terms for the amended agreement as follows:
1. Extend the term of the initial contract to extend services through June 30, 2025, to coincide
with the end of the fiscal year. During the first few months of the initial contract, there
were savings in the monthly cost of services as L.A. CADA recruited and trained staff.
This will result in a positive balance that can be applied to the additional 1.5 months in the
current fiscal year under the same rate and terms.
2. Exercise the extension to the agreement for 2 additional years, with annual CPI adjustment
of 3%. With the increased need for these types of services throughout the region, it is
critical to secure continued operations and management of the site.
FY 2025-26 not to exceed $222,480
FY 2026-27 not to exceed $229,154
Contract Amendment with L.A. CADA for Homeless Outreach Services
May 5, 2025
Page 3
FISCAL IMPACT:
The current contract is fully funded by Permanent Local Housing Allocation (PLHA) program
funds. This source is no longer available for the program, thus requiring commitment from the
General Fund reserve.
The total cost of the proposed 2-year extension is $451,634. As staff prepares the upcoming FY
2025-26 and 2026-27 Biennial Budget, City Council can allocate funding in the Homeless Services
account. Staff will request funds through the upcoming Biennial Budget approval process under
General Fund account 10-10-180-000.
Prepared by:
Lucy Demirjian
Senior Project Manager
Reviewed and Approved by:
Sergio Gonzalez
City Manager
Attachments:
1) Amendment 1 to Agreement
2) L.A. CADA Agreement for Outreach Services
45635.01000\31368292. 1
CITY OF AZUSA
FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL SERVICES
1. PARTIES AND DATE.
This First Amendment to the Assignment of the Agreement for Professional Services
(“First Amendment”) is entered into on the 5th day of May 2025, by and between the City of Azusa
(“City”) and Los Angeles Center for Alcohol and Drug Abuse (“Service Provider”), referred to
herein as the “Parties.”
2. RECITALS.
2.1 Agreement. The Parties entered an Agreement in April, 2024 (“Agreement”).
2.2 First Amendment. The Parties now desire to amend the Agreement in order to
extend the term of the agreement to continue providing outreach and case management services
for people experiencing or at risk of homelessness within the City of Azusa.
3. TERMS.
3.1 Term. Pursuant to Article 2 of the Agreement, the Parties have mutually agreed to
extend the initial term of the agreement to continue until June 30, 2025, subject to the same terms
and conditions contained in the original Agreement.
3.2 Further, the City hereby exercises the option to extend the term of the Agreement
for two additional one-year terms until June 30, 2027, unless earlier terminated, subject to an
annual 3% increase as provided in the Agreement.
FY 2025-26 not to exceed $222,480
FY 2026-27 not to exceed $229,154
45635.01000\31368292. 1
IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement
on this 5th day of May, 2025.
CITY OF AZUSA LOS ANGELES CENTER FOR ALCOHOL AND DRUG ABUSE
By:
Sergio Gonzales City Manager
By:
Juan Navarro Chief Executive Officer
ATTEST:
By:
Jeffrey Lawrence Cornejo, Jr. City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP City Attorney