Fiscal Note
The proposed resolution authorizes a contract with MACH Onehealth, Inc. to continue providing services at the City’s urban campground at 3202 Dairy Drive. The current contract with MACH Onehealth expires on October 31, 2022. The resolution seeks to extend services from November 1, 2022 through December 31, 2023, at a total cost of $1,129,200. The Community Development Division (CDD) currently has up to $260,000 of available CDBG-CV funds to pay for a portion of these services. The remaining funds for the contract will be requested through CDD’s 2023 operating budget. No additional appropriation for 2022 is required at this time.
Title
Extending the provision of on-site supportive services to users of the City’s urban campground at 3202 Dairy Drive by Madison Area Care for the Homeless (MACH) Onehealth, Inc., and authorizing the City of Madison to execute a contract with MACH Onehealth, Inc., to perform those services, drawing on up to $260,000 of available Coronavirus Aid, Relief and Economic Security (CARES) Act funds to help finance them.
Body
BACKGROUND
In August 2021, responding to the state of emergency arising from the ongoing COVID-19 pandemic, the lack of adequate accommodations for unsheltered homeless persons in Madison, and unsafe conditions at an unsanctioned encampment at Reindahl Park, the Common Council authorized the establishment of an urban campground on City-owned land at 3202 Dairy Drive (RES-21-00621, Legistar File ID #67137).
The Council allocated $2 million of federal funding awarded to the City of Madison through the American Rescue Plan Act (ARPA) to support the establishment and operation of that campground. Funds supported both the capital costs associated with public improvements, purchase of heated cabins and related amenities; and operational costs related to property management and on-site support service functions. The campground is designed to support no more than 30 persons at one time with turnover occurring as people get connected to housing.
Also in August 2021, via adoption of RES-21-00611 (Legistar #66682), the Council authorized the acceptance of $493,377 in federal funding awarded to the City of Madison under the Coronavirus Aid, Relief and Economic Security (CARES) Act and amended the Community Development Division’s 2021 Operating Budget to reflect its receipt. These funds, specifically Community Development Block Grant (CDBG-CV), came from the Federal government, were passed through the State of Wisconsin Department of Administration and were awarded to provide public services activities that were responsive to needs arising from the pandemic.
Upon receipt of CDBG-CV funds, the City was required by the U.S. Department of Housing and Urban Development to amend its 2019 Action Plan, affirming its use of the new funds would help prevent, prepare for and respond to the coronavirus. The approved Action Plan directs that CARES Act funds be used to support activities benefiting low ‐ to moderate ‐ income households; and will include activities which address one or more of the following objectives: Housing Assistance/Tenant Services, Homeless Services/Emergency Shelter Operations/Outreach and Administration. These funds were encumbered for future use in addressing Homeless Services.
In October 2021, the Community Development Division used a competitive application process to select a provider of property management and on-site support services for the Dairy Drive campground and selected Madison Area Care for the Homeless (MACH) Onehealth, Inc., in collaboration with Kabba Recovery Services. The City entered into a contract with MACH Onehealth, Inc. to provide the requested services, financed with ARPA funds. The contract expires on October 31, 2022. The estimated cost to continue these services at Dairy Drive from the period beginning on November 1, 2022 and ending December 31, 2023 is $1,129,200
The purpose of this resolution is to authorize the execution of a new contract with MACH Onehealth, Inc to continue its services at Dairy Drive through 2023, and to utilize available CDBG-CV funds to pay for a portion of those services. These CDBG-CV funds must be used prior to March 31, 2023. CDD has identified, and during the 2023 Operating Budget deliberations, will seek Common Council authorization for the use of additional available sources to provide the remaining funds needed to support the contract with MACH Onehealth through 2023.
ACTION
WHEREAS, in August 2021, the Common Council authorized the establishment of an urban campground at 3202 Dairy Drive to provide temporary shelter for unsheltered homeless persons; and,
WHEREAS, In October 2021, the Community Development Division used a competitive application process to select MACH Onehealth, Inc., a local non-profit, in collaboration with Kabba Recovery Services, to provide property management and on-site support services at the Dairy Drive campground; and,
WHEREAS, the Council subsequently authorized a contract between the City and MACH Onehealth Inc., to provide the requested services, and opted to pay for those services with Federal ARPA funds; and,
WHEREAS, the contract with MACH Onehealth Inc., expires on October 31, 2022 and, if services at the campground are to continue, contractual arrangements must be renewed; and,
WHEREAS, in 2021, the U.S. Department of Housing and Urban Development ("HUD") awarded the State of Wisconsin $16,979,300 in CDBG-CV grant funds via the CARES Act and the State, in turn, sub-allocated up to $493,377 of those funds as a pass-thru grant to the City of Madison to supplement the City's efforts to prevent, prepare for and respond to the coronavirus; and,
WHEREAS, the City’s 2019 Action Plan was subsequently amended, and approved, as required, by the U.S. Department of Housing and Urban Development, to encumber the CDBG-CV funds to support activities that help achieve objectives around Homeless Services and Housing Stability.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves the continued provision of property management and on-site services at the City’s urban campground at 3202 Dairy Drive through a contractual arrangement with MACH Onehealth, Inc.; and,
BE IT FURTHER RESOLVED that the Council authorizes the Mayor and City Clerk to execute a contract between the City of Madison and MACH Onehealth, Inc. to provide those services through 2023, at an estimated cost of $1,129,200, and authorizes the use of up to $260,000 of available CDBG-CV funds to begin to pay for those services; and,
BE IT FINALLY RESOLVED, that the Mayor and City Clerk are authorized to amend the contract with MACH Onehealth, Inc. to reflect decisions regarding funding made by the Council through adoption of the City’s 2023 Operating Budget.