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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 06/11/2013 - COMPLETE AGENDACITY COUNCIL AGENDA Karen Weitkunat, Mayor Council Chambers Gerry Horak, District 6, Mayor Pro Tem City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. ADJOURNED MEETING June 11, 2013 6 p.m. 1. Call Meeting to Order. 2. Roll Call. 3. Items Relating to the Operation of the Sister Mary Alice Murphy Center of Hope. (staff: Joe Frank; 10 minute staff presentation; 45 minute discussion) A. Resolution 2013-053 Authorizing the City Manager to Execute an Agreement with United Way of Larimer County for Funding of Operations at the Sister Mary Alice Murphy Center of Hope. B. First Reading of Ordinance No. 082, 2013, Appropriating Prior Year Reserves in the General Fund to Be Used for Operation of the Sister Mary Alice Murphy Center of Hope. The City has received a request for funding in the amount of $45,000 for the operation of the Sister Mary Alice Murphy Center of Hope, from January to July, 2013 (six months). Other funding partners include United Way ($58,000), Bohemian Foundation ($45,000) and Serve 6.8 ($35,000). The Murphy Center, located at 242 Conifer Street, is the one-stop center in Fort Collins for homeless and near homeless persons. The operation of the Center is an important component in the community’s network of housing and complimentary services so that homelessness is rare, short-lived and non-recurring in Fort Collins. June 11, 2013 4. Executive Session Authorized. The meeting of June 4, 2013, was adjourned to this date and time to allow the Council to consider adjourning into Executive Session to conduct the mid-year performance evaluations of the Municipal Judge, City Attorney and City Manager. Municipal Judge 45 minutes City Attorney 60 minutes City Manager 60 minutes 5. Other Business. 6. Adjournment. DATE: June 11, 2013 STAFF: Joe Frank AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 3 SUBJECT Items Relating to the Operation of the Sister Mary Alice Murphy Center of Hope. A. Resolution 2013-053 Authorizing the City Manager to Execute an Agreement with United Way of Larimer County for Funding of Operations at the Sister Mary Alice Murphy Center of Hope. B. First Reading of Ordinance No. 082, 2013, Appropriating Prior Year Reserves in the General Fund to Be Used for Operation of the Sister Mary Alice Murphy Center of Hope. EXECUTIVE SUMMARY The City has received a request for funding in the amount of $45,000 for the operation of the Sister Mary Alice Murphy Center of Hope, from January to July, 2013 (six months). Other funding partners include United Way ($58,000), Bohemian Foundation ($45,000) and Serve 6.8 ($35,000). The Murphy Center, located at 242 Conifer Street, is the one-stop center in Fort Collins for homeless and near homeless persons. The operation of the Center is an important component in the community’s network of housing and complimentary services so that homelessness is rare, short- lived and non-recurring in Fort Collins. BACKGROUND / DISCUSSION Sister Mary Alice Murphy Center of Hope (“Murphy Center”) The Murphy Center, located at 242 Conifer Street, is the one-stop center in Fort Collins for homeless and near homeless persons; approximately 23 agencies provide services at the Center; the Center also provides showers, breakfast, phones/computers, washers/dryers, clothing, day shelter services, and more. Services available at the Center include employment resources, housing assistance, financial counseling, transportation assistance, mental health and substance abuse counseling, and more. Many believe that the Center is one of the most innovative facilities in the nation for serving the homeless and near homeless. The Murphy Center is currently owned by the United Way of Larimer County (UW) and operated by Touchstone Health Partners of Fort Collins. During the past four years, the Murphy Center has been a major player in the local homeless service delivery system and will play an even more critical role as the region moves toward a new and improved housing model. Notable achievements of the Center include: • Total number of visits: 110,782. • Now averaging 156 visitors per day, up from 80 at the end of the 1st year. • Now have 23 different agencies that provide services out of the Center. • Total number of showers taken: 12,841. • Total number of loads of laundry done: 4,649. • Total number of unduplicated people provided services by a Resource Specialist: 10,148. • 37% of the people served are part of a family with children. • In 2012, 77% of the people that meet with a Resource Specialist report being literally homeless, a 57% increase from 2011. • Received mail through the center: more than 800 people. • Utilized lockers at the center: more than 250 people. • Provided voicemail boxes: more than 150 people. • 429 people have been assisted in getting Food Stamps. • 106 people have been assisted in getting Aid to the Needy. • 253 people have been assisted in getting Medicaid. • 879 people have received mental health and/or substance abuse services. • 1,312 households have received emergency rent assistance. • 2,507 households have received utility assistance. The approximate $2.5M cost of construction of the Center was funded through a collaboration of private foundations, June 11, 2013 -2- ITEM 3 private resources, and the cities of Fort Collins and Loveland. Since 2004, the City has contributed approximately $90,000 in CDBG and General Fund dollars to build the facility, and as such has a legal and financial interest. In addition, the City has funded several of the agencies that occupy the Center. As equity partners on the land (along with the City of Loveland), City staff has met with United Way and Serve 6.8 officials. Our goal, moving forward, is a smooth transition on executing new legal documents, and ensuring that parameters for property use tied to federal funding are clear. One of these parameters includes federal limitations on inherently religious activities such as worship, religions instruction, or proselytization. We are also interested in being sure that the Murphy Center has a critical role to play in the future in the “Continuum of Care” for the homeless and near homeless. Ownership and Operations of the Center The Murphy Center opened in March, 2009. At that time, the United Way (UW) committed to owning/funding/operating the Center for one year, hoping to find someone who would take over operations of the Center from United Way in year two. Funding was secure for the first three years of operation, until March 2012; the Center was originally intended to be transferred debt free. The original plan was for Touchstone Health Partners to take over the facility, and over several years, plans for the transition were discussed. Last March 2012, those plans started to fall apart when Touchstone announced it was no longer interested in taking over the Center. Subsequently, United Way had to search for a new owner/operator. UW had serious but unsuccessful discussions with several potential agencies about taking over the facility, including but not limited to, Catholic Charities and the Salvation Army. UW was also left with the challenge of more than $180,000 in additional expenses to continue operations of the facility. United Way had to use general reserves not intended for this purpose while it searched for a new partner. United Way also seriously considered closing or curtailing services at the Center when reserve funding ran out in December 2012. Instead, United Way chose to keep the Center operating and sought community partners to cover the $180,000 in extra costs. Last November, a small group of interested stakeholders met to discuss the future of the Murphy Center. The group consisted of Gordan Thibedeau (United Way), Randy Ratliff (CEO Touchstone Health Partners), Cheryl Zimlich (Bohemian Foundation), Alison Hade, City of Loveland (Community Partnership Department), Julie Brewen (FCHA), Bryce Hach (Homeward 2020), and Joe Frank (Social Sustainability Department). Last January, the group met with Mark Orphan, Pastor of the Timberline Church Missions and Outreach program, and Mike Walker, Timberline Church Local Outreach Director, about potentially taking ownership and operation of the Center. Serve 6.8 is the “community service” arm of the Timberline Church. “Serve 6.8” is in reference to two passages in the bible (Micah and Isaiah). Serve 6.8's stated mission is “people serving our community to demonstrate God’s love in tangible ways to people in Northern Colorado with no strings attached.” Serve 6.8 has said “We partner with many local organizations to promote their mission, provide volunteers, and offer assistance.” Serve 6.8 has been involved in a variety of “ministries” and partnerships in the community, some involving the homeless. Serve 6.8 was heavily involved in the High Park Fire recovery efforts. Serve 6.8 now has 501(c)3 status, and is a separate entity from the Timberline Church. Serve 6.8 submitted a letter of intent to assume ownership and operation of the Murphy Center, and most appear to be comfortable with them. United Way is satisfied that it has the resources and mission to take over and successfully operate the facility. Mark Orphan and Mike Walker will be the primary managers of the Murphy Center. They indicated that the Center will continue to deliver current services and will keep the current professional staff. Serve 6.8 will also be using volunteers. At this time, Serve 6.8 is doing its due diligence, developing a business plan, completing necessary agreements, talking with the cities of Fort Collins and Loveland, etc. Serve 6.8 has said that they have recently embarked on a fund raising campaign for the Murphy Center, with a goal of $5 million; having already raised about $750,000. The goal is to complete the ownership/operation transition on/around July 1, 2013. The United Way and Serve 6.8 has been very transparent in the transition process, including involving key stakeholders early on, working with existing Murphy Center staff, presenting to the North Fort Collins Business Association, informing Murphy Center customers, working with staff from the cities of Loveland and Fort Collins, informing Murphy Center funders, informing Timberline Church members, and providing interviews and information to the local press. UW/Serve 6.8 intends to do additional outreach when the transfer of ownership/operation finally occurs, and Serve 6.8 has indicated that they plan to hold a formal “opening” event later this year, possibly as part of National Homeless Month. June 11, 2013 -3- ITEM 3 An article of the Murphy Center written by Sarah Jane Kyle, and published in the June 2, 1013 Coloradoan on the Murphy Center transition is attached (Attachment 1) . Funding Request The United Way is seeking funding partners to continue the operation of the facility. The Center’s monthly operating cost is about $38,600; approximately 85% of that is personnel and 15% is operations. United Way has a federal grant that covers about $8,100 per month; the net monthly cost is approximately $30,500. Six months of operations costs approximately $183,000. United Way’s proposal is that it provides $58,000, the Bohemian Foundation and the City each provide $45,000 and Serve 6.8 provides $35,000, for the operation of the Murphy Center from January to July, 2013 (6 months). The City of Loveland was approached to participate in funding but declined; less than 10% of the Murphy Center visitors are from Loveland, and because the participation is so low, it declined to participate in the one- time funding of operations. According to Gordan Thibedeau, Executive Director of the United Way: “There are two reasons that we are seeking continuation funds to support the operation of the Murphy Center. First, it was our intent to transfer ownership no later than December 31, 2012, which did not happen. Second, we have been unable to secure additional grant funding to support the operation primarily because we play a “pass through” role. We were able to overcome this concern for the first 4 years of funding but foundations have become increasingly interested in having the funds go directly to the service provider.” Funding Alternatives During the May 28 Work Session, Council specifically asked staff to consider making the funds available to a different agency (not United Way) that could potentially benefit from leveraging the City funds. There are four alternatives that the City Council could consider to fund the operations of the Murphy Center: A. “United Way” Option - Approve the original funding request to United Way in the amount of $45,000, for operating expenses incurred between January 1 and June 31, 2013. The funds would go directly to United Way for additional expenses they incurred to continue the operation of the facility. B. “Touchstone” Option - Approve the funding request, in the amount of $45,000, with the direct recipient of the funds being Touchstone Health Partners, for operating expenses incurred between January 1 and June 31, 2013. The funds would go directly to Touchstone Health Partners for expenses they incurred during this time period. Touchstone is the only agency at the Murphy Center that incurs significant operating expenses. Touchstone has said they would then reimburse United Way. C. “Serve 6.8” Option - Approve the funding request, in the amount of $45,000, with the direct recipient being Serve 6.8 for future operating expenses. Serve 6.8 has not incurred any direct operating costs of the facility. So, if it is the recipient of the funds, the funds would be used to cover future operating costs (after July 1, 2013). The reasoning behind this is different from the other options; funding future operations (saving Serve 6.8 and/or United Way from having to do it) rather than reimbursing UW for past expenses. Since this option would no longer be framed as a sort of “emergency”, it also raises a question of why Serve 6.8 should not just apply for the funds through the City’s Competitive Process like other social service agencies. D. “Do nothing” option – No City funding. According to agency representatives, the “benefit” to Touchstone or Serve 6.8 in receiving the City funds, for instance, to leverage other funds, is not significant, because the funds would already have been spent, and would not be available to “match” other grants. The funds would show up on their balance sheet as a contribution from the City; the City’s financial support is important to other potential funders. June 11, 2013 -4- ITEM 3 Funding Agreement The major terms of the “funding agreement” are as follows: 1. The City shall pay the agency selected by the Council the sum of $45,000 upon receipt of the expense report. 2. The funds will be (or must have been) used for personnel and non-personnel costs associated with the operation of the Murphy Center. 3. The agency shall submit a detailed expense report to the City for our review and approval. 4. The process and conditions of turning the facility over to Serve 6.8 should be as transparent and inclusive as possible to the critical stakeholders. 5. The existing functions of the Murphy Center as a one stop center and entry for homeless services must continue; and Serve 6.8, needs to be at the table in the discussions around a new homeless service delivery model, known as ”Continuum of Care”. 6. The City shall have a representative on the advisory/leadership board of the new Murphy Center. FINANCIAL / ECONOMIC IMPACTS The City’s share will come from the City’s General Fund Reserves. Providing financial assistance to the Murphy Center is a long term investment. Helping people out of homelessness prevents future community costs associated with homelessness. Typically, funding requests for human services are made thru the City’s Spring Competitive Process. The Spring Competitive Process was not a good match for the current Murphy Center situation because the funds do not become available until October 1, 2013. Also, the Competitive Process funds cannot pay for any cost of services, projects or programs expended prior to October 1, 2013. Over the years, the City has also funded from the General Fund, several social service programs and activities, outside of the Competitive Process. For example, since 2009, the City has funded: • Homeward 2020 (the original $100,000 was through the exceptions process) and continue to do so with a $25,000 sponsorship each year out of the City Manager’s Office budget (and approved through BFO), for a total of $175,000. • The Murphy Center Capital Campaign in 2009 ($5,000), 2010 ($6,000), and 2011 ($2,000) using contingency funding. • The United Way Temporary Winter Homeless Shelter ($3,000 – operating costs). • The Crossroads Safehouse, in 2010 - $3000 – appraisal report; and, in 2010 - $350,000 for renovation of Crossroads’ new facility, from Police Capital Improvement Expansion fees. • The Bender Mobile Home Park relocation assistance – 2012 ($50,000) – BFO. • The City has also provided “sponsorships” through a donation and sponsorship line item in BFO through the City Manager’s Office (CMO). For those sponsorships that were unexpected and not funded through BFO, the CMO usually relies on Contingency or Community Opportunities funds to cover. Agencies receiving this funding include United Way, Habitat for Humanity, Crossroads Safehouse, and the Food Bank of Larimer County. ENVIRONMENTAL IMPACTS The funding request has no environmental impacts. STAFF RECOMMENDATION Staff recommends approval of Alternative B - Touchstone, because it most closely responds to the direction of Council at its May 28 Work Session. The Murphy Center plays a critical role in the delivery of services to the homeless and near-homeless in the community, a role that is likely to become more important as a new model (e.g., “Continuum of Care”) evolves in the North Front Range area. United Way has carried the cost of operating the Center for the past four years, over a year longer than originally intended. United Way has demonstrated that it needs the financial assistance of the City and the other partners, to pay for part of the costs of six months of operations of the Center. June 11, 2013 -5- ITEM 3 After that time, it appears very likely that Serve 6.8 will take over the ownership and operation of the Center. Serve 6.8 has said that it intends to continue the original mission and services of the Center. Serve 6.8 also appears to have the capacity, experience and mission to continue the important services the Center now provides, and to work collaboratively toward a new homeless model. ATTACHMENTS 1. Coloradoan Article, June 2, 2013, “Murphy Center travels unexpected journey”, by Sarah Jane Kyle 2. May 28 Council Work Session Summary - Operation of the Mary Alice Murphy Center of Hope 3. Powerpoint presentation Murphy Center travels unexpected journey The center is hailed as a national example of a new way to serve the homeless, and its future is still being invented. By Sarah Jane Kyle SarahKyle@coloradoan.com June 2, 2013 Community leaders broke ground in 2008 on The Sister Mary Alice Murphy Center for Hope, now considered one of the most innovative facilities in the nation for serving people who are homeless, with plans for a bright future. Plans that would allow the facility to remain debt-free. Plans that Touchstone Health Partners (formerly Larimer Center for Mental Health) would take over operations of the center from United Way of Larimer County a year after it opened. Plans that community partners would stand behind the center financially in good times and in bad. But last year, those plans started to fall apart. Touchstone Health Partners announced in March, a year after the nonprofit was originally scheduled to take over the property, that they would no longer be able to take responsibility for the Murphy Center and its programs. A new operator will take over that responsibility July 1, six months after reserve funding for the facility ran out. Serve 6.8, a nonprofit through Timberline Church, plans to continue the center’s successful mission to provide a common ground for the homeless and near-homeless with its one-stop shop approach for services. But United Way of Larimer County is now left with the challenge of covering more than $180,000 in additional costs until Serve 6.8 takes the reins. And Tuesday, United Way officials faced some tough questions from City Council when it sought $45,000 in funding from the city to help cover some of those expenses. Twists and turns for the center This was not the path that Gordan Thibedeau, United Way of Larimer County president and CEO, expected for the center. “We wanted a debt-free facility that would come with three years of operational ATTACHMENT 1 funding,” Thibedeau said. “We also had this idea that nobody had ever seen before. It took some convincing to share that and get the necessary funds.” After jumping through zoning hurdles, neighbor concerns and funding hoops, the facility broke ground in fall 2008 with $4.2 million in the bank to cover that three years of operational costs. United Way owned the facility, with donations from the city of Loveland, city of Fort Collins and hundreds of individual and agency donors, and Touchstone Health Partners facilitated all programming and daily operations. Initial business plans, formed years before the center opened, provided for 30-45 visitors a day, so the building was staffed appropriately to meet that need. But when the recession hit, the need skyrocketed, and the Murphy Center now sees an average of 156 visitors a day. In the first year, Murphy Center Program Director Zach Penland said nearly all of the three-to-four person staff lost 20-30 pounds from running around the facility daily to meet the ever growing need. They called it the “Murphy Center Weight Loss Plan.” “It was difficult to manage those first six months to a year,” Penland said. “Fortunately, United Way and Touchstone stepped up pretty quickly to get us some additional staff and help us manage that need.” The plan, admittedly taken “in good faith” and not written in an official contract, was that United Way would transfer ownership to Touchstone after one year of operations, giving the nonprofit two full years of funding before having to take the brunt of the $30,000 per month operational costs. But a year in, that transition didn’t happen. In March 2012, Touchstone Health Partners announced it never would, citing an organizational need to focus on its core business of providing mental health services. Running on reserve funds, United Way began the search for a new owner, meeting with more than six different agencies before launching into negotiations with Serve 6.8, an independent nonprofit with roots in Timberline Church. Negotiations took more than 10 months, with a closing date scheduled for July 1. United Way, and its partners, were faced with a decision: Would the Murphy Center stay open when reserve funding ran out or temporarily close the doors and cut back services until a deal could be reached? The agency chose once again to continue on with the Murphy Center’s mission and seek the support of community partners to cover more than $180,000 in extra costs. Once again, no finalized contracts were drafted in the process. Serve 6.8 donated $35,000 to the Causes, Bohemian Foundation verbally committed $45,000 pending grant paperwork and last week, the agency requested an additional $45,000 from the city of Fort Collins to retroactively help cover the costs. During Tuesday’s City Council work session, council member Lisa Poppaw expressed various concerns about granting retroactive funds to the center, including why the issue hadn’t been brought to the council previously, the religious nature of the entity taking over the facility and a lack of additional funding partners, including those who had a financial stake in the property’s beginnings, such as the city of Loveland. “I know that the Murphy Center provides an extraordinary service that’s not being provided currently,” Poppaw said. “For right now, talk to me about why I should think that our investment into this is going to do anything but pay off an old debt.” The council will vote June 18 on whether to grant the money. A need emerges The Sister Mary Alice Murphy Center for Hope is a story more than a decade in the making. More than once, it’s been questioned if that tale would have a happy ending. Now hailed as a national example of a one-stop-shop for the homeless and near homeless, with more than 20 individual services provided under one roof at the corner of Conifer and Blue Spruce on the north side of Fort Collins, the facility was once only a dream ...and a lofty one at that. Doubt and controversy surrounded its inception, with neighbors of the proposed site voicing concerns about providing a common ground for the homeless near a neighborhood with children and families. Even giving the facility its namesake came with a need to prove that the now landmark for Fort Collins’ struggling souls would treat every person, regardless of his or her struggles, with the dignity and respect that homeless service pioneer Sister Mary Alice Murphy expects. It took months for the parties involved to convince her it would. “At the time I was asked, things were in the very beginning stages,” Murphy said. “I didn’t know who was going to run it. What if those services were given in a grudging, punitive way and there’s my name sitting on the building? What kind of witness would that be? “I felt like I had to be able to trust that whoever would take over running it would run it in a way I could be proud of. I’m happy to say that has proven to be the case, and I’m very proud of the kind of services provided. I think it’s doing so many wonderful things.” The need for the Murphy Center originated in the ashes of a failed day shelter on College Avenue, which led to the death of a homeless person in freezing temperatures and the belief among many that the community could do something better to give the voiceless a future. More than a decade ago, on North College Avenue near the notorious Adult Book Ranch, Blue Bridges homeless day shelter gave Fort Collins’ homeless a place to call home and escape from the elements. Though the facility had some funding from Larimer County and United Way of Larimer County, the increasing rent costs of the facility, community distaste at the “unsightly” homeless on a main drag of town and a lack of community funding led Blue Bridges to close its doors at the turn of the century. With the day shelter out of the picture, nothing existed to harbor the homeless when the temperatures dipped below freezing. Shortly after the facility closed, a homeless person was found dead in the cold. The death lit a fire under a group of community leaders, including the United Way, to form a task force to fill the gap for the homeless population. The task force quickly realized that a day shelter wasn’t going to be enough. The homeless and near homeless of Larimer County faced an enormous hurdle in accessing the services available to them, many of which were housed in different areas of town and hard to access without a bus pass or money to buy gas. The group of thinkers began dreaming of a facility that would provide shelter, but also house multiple services to help guests. That dream came true when the Murphy Center opened its doors March 2009. Faith undeterred More than 120,000 visits have taken place through the Murphy Center’s four-year fight to prove viable, 10,148 of which are unduplicated faces. Penland and the thousands of volunteers who have stepped foot in the shelter have ridden the extreme emotion rollercoaster of triumph and loss that comes with working among a troubled population. The Murphy Center recently hosted an art show and memorial service to honor the sad tales. More than 33 of the now-deceased Murphy Center clients died while still homeless. “It’s hard to get to know somebody so well and know that at the time they passed away, they were along under a tree,” Penland said. “It’s a very interesting dichotomy we have here. You see the best parts of human nature, the worst parts of human nature, some success stories you’d never trade in but also some horrible things you almost wished you didn’t know could happen here. It’s a unique place to work.” Despite enormous challenges and an unexpected path, faith prevails that the center will continue to help homeless people. Thibedeau said he is confident that the underdog story will live on and “outlast any doubts.” “If you can’t dazzle them with the wit of your idea, outlast them,” he said. Sarah Jane Kyle is the Coloradoan reporter covering volunteerism, nonprofits and philanthropy. Follow her on Twitter@sarahjanekyle. ATTACHMENT 2 1 1 Murphy Center Funding Request • The Murphy Center has requested $45,000 in one time City funding for operating costs • Action Requested: 1) First Reading of Ordinance Appropriating General Fund Reserves, and 2) Resolution Authorizing Funding Agreement j 2 The Murphy Center • The one-stop center for homeless and near homeless persons; • Services provided: – Counseling and referral; 23 agencies – Day to day needs, and more Plays critical role in delivery of homeless services in Fort Collins ATTACHMENT 3 2 3 History • Opened in March 2009 • Funded through a collaboration • Currently owned by United Way and ,operated by Touchstone Health Partners • United Way’s commitment ended March 2012 • Recently, Serve 6.8 has agreed to take over ownership and operations 4 Impacts of the Murphy Center • Total number of visits:110,782 • Average 156 visitors per day, and increasing • Unduplicated visitors provided services: 10,148 • 77% report being homeless; 37% had family with children • Showers: 12,841 • Loads of laundry: 4,649 • People helped getting needed services 3 5 Funding Request • Total operating costs is approximately $232,000, for personnel and operations • $183,000 gap • Funding partnership: City of Fort Collins ($45k); Bohemian Foundation ($45k); Serve 6.8 ($35k); and United Way ($58k) 6 Reasons for the Fund Request 4 7 Funding Alternatives A. “United Way” Option B. “Touchstone” Option C. “Serve 6.8” Option D. “No City Funding” Option 8 Highlights of the Funding Agreement Highlights: – Continues existing services – One-stop center – Commits to ensure smooth transition; and, transfer is transparent to stakeholders. – City representative on advisory/leadership board Serve 6.8 will keep the Murphy Center name! 5 9 Staff Recommendation • Staff recommends Alternative B - “Touchstone”, because: – Best match with Council Work Session Direction – Critical service – United Way has fulfilled their commitment – Demonstrated need – This is one-time funding request; in the future Serve 6.8 and/or other agencies may pursue Competitive Process funding – Serve 6.8 assumes long term responsibility and costs. 10 Questions? Alternatives A, B, or C listed in Section 2 RESOLUTION 2013-053 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR FUNDING OF OPERATIONS AT THE SISTER MARY ALICE MURPHY CENTER OF HOPE WHEREAS, the Sister Mary Alice Murphy Center of Hope, located at 242 Conifer Street (the “Murphy Center”), provides services to homeless and near-homeless persons in the Fort Collins area, averaging 156 visitors per day; and WHEREAS, the Murphy Center is currently owned by United Way of Larimer County (“United Way”) and operated by Touchstone Health Partners (“Touchstone”); and WHEREAS, Serve 6.8, a nonprofit corporation affiliated with Timberline Church, has expressed interest in assuming ownership and operation of the Murphy Center, and United Way and Serve 6.8 hope to complete the transition of ownership and operation in mid-2013; and WHEREAS, United Way is seeking partners to help fund operation of the Murphy Center from January 1 to June 30, 2013, and has proposed that the following parties provide funding in the specified amounts: United Way $58,000 Bohemian Foundation $45,000 City $45,000 Serve 6.8 $35,000 and; WHEREAS, the City’s funding could be paid to United Way, Touchstone, or Serve 6.8; and WHEREAS, if the City’s funding is paid to United Way or Touchstone, it would be used to help pay for operation of the Murphy Center from January 1 to June 30, 2013; and WHEREAS, if the City’s funding is paid to Serve 6.8, it would be used to fund future operations of the Murphy Center, replacing additional funding that United Way would otherwise have provided; and WHEREAS, the Murphy Center plays a critical role in the delivery of services to the homeless and near-homeless populations in the Fort Collins area, providing employment resources, housing assistance, financial counseling, transportation assistance, mental health and substance abuse counseling, help with obtaining food stamps and Medicaid, and everyday services such as a place to shower and wash laundry, use a computer and check voicemail; and Alternatives A, B, or C listed in Section 2 WHEREAS, helping people avoid or get out of homelessness promotes health, safety and the general welfare, not just for those receiving services, but also for the community in general by reducing burdens on emergency medical services and law enforcement resources; and WHEREAS, the requested funding will come from contingency funds, and will not divert resources that are needed for primary functions or responsibilities of the City; and WHEREAS, homeless assistance programs support several City Council-adopted plans, including the Consolidated Housing and Community Development Plan FY2010-2014, which contains objectives and strategies for reducing and preventing homelessness, and City Plan, which speaks to the City meeting the housing needs of special populations in the community, including the homeless; and WHEREAS, a draft of the proposed Funding Agreement is attached and incorporated herein as Exhibit “A”. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that, for the reasons stated above, the City’s provision of funds for operation of the Murphy Center serves an important public purpose for a significant part of the community. Section 2. [Alternative A] That the City Manger is hereby authorized to execute a Funding Agreement with United Way in substantially the form attached hereto as Exhibit A, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. [Alternative B] That the City Manger is hereby authorized to execute a Funding Agreement with Touchstone in substantially the form attached hereto as Exhibit A, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. [Alternative C] That the City Manger is hereby authorized to execute a Funding Agreement with Serve 6.8 in substantially the form attached hereto as Exhibit A, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. -2- Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins this 11th day of June A.D. 2013. Mayor ATTEST: City Clerk -3- Draft 6-5-13 1 FUNDING AGREEMENT . THIS FUNDING AGREEMENT (“Agreement”) is entered into by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”) and_____________________________________, a Colorado nonprofit corporation, (“Agency”), and shall be effective on the date last signed below (“Effective Date”). W I T N E S S E T H: WHEREAS, the Sister Mary Alice Murphy Center of Hope, located at 242 Conifer Street (the “Murphy Center”), provides services to homeless and near-homeless persons in the Fort Collins area, averaging 156 visitors per day; and WHEREAS, the Murphy Center is currently owned by United Way of Larimer County (“United Way”) and operated by Touchstone Health Partners; and WHEREAS, Serve 6.8, a nonprofit corporation affiliated with Timberline Church, has expressed interest in assuming ownership and operation of the Murphy Center, and United Way and Serve 6.8 hope to complete the transition of ownership and operation in mid-2013; and WHEREAS, United Way is seeking partners to help fund operation of the Murphy Center, and has proposed that the following parties provide funding in the specified amounts: United Way $58,000 Bohemian Foundation $45,000 City $45,000 Serve 6.8 $35,000 and; WHEREAS, the Murphy Center serves an important public purpose as a key provider of services to the homeless, and the City wishes to ensure that these services remain in place during the transition in ownership of the Murphy Center. NOW, THEREFORE, in consideration of the mutual promises of the parties, it is agreed as follows: 1. Scope of Services/Performance Monitoring. A. Agency will operate the Murphy Center as a one-stop center and resource for homeless services, offering programs and a level of service substantially similar to 2012. This work will be performed in compliance with all provisions of this Agreement. Agency warrants and represents that it has EXHIBIT A Draft 6-5-13 2 the requisite authority and capacity to perform all of its obligations hereunder. B. The funds to be provided hereunder will be used for personnel and non- personnel costs associated with operation of the Murphy Center from [date] to [date]. Agency will document how the City funds are spent and will prepare a detailed expense report to submit to the City for review and approval. C. Agency will work to ensure a smooth transition of ownership and operation for the Murphy Center from United Way to Serve 6.8, including development of an appropriate new homeless service delivery model; continuation of the existing functions of the Murphy Center as a one-stop center and entry point for homeless services; and ensuring that the process and conditions for transfer of the facility are as transparent and inclusive of critical stakeholders as is reasonably possible. D. Agency will arrange for the City to have a representative on the new advisory/leadership board of the Murphy Center. E. The City may monitor the performance of Agency against goals and standards required herein. Substandard performance as determined by the City will constitute non-compliance with this Agreement. If Agency does not take action to correct such substandard performance within a reasonable period of time after being notified by the City, the City may terminate this Agreement. 2. Time of Performance/Term of Agreement. The term of this Agreement shall be from the Effective Date until [date]. The funding provided under this Agreement shall be used only for the purposes described above. 3. Payment of Funds. If Agency is not in default hereunder, the City will pay Agency FORTY FIVE THOUSAND DOLLARS ($45,000) upon receipt and approval of a detailed expense report which Agency certifies is a true and correct record of Agency’s expenditures under this Agreement between [date] and [date]. In no event shall the City's obligation to make payment to Agency hereunder exceed $45,000. 4. Notices. Notices required to be given under this Agreement shall be hand delivered or sent by U.S. Mail or overnight commercial courier and addressed as follows: If to the City: If to Agency: Draft 6-5-13 3 Affordable Housing Program Advance Planning Department Executive Director Entity City of Fort Collins StreetAddress P.O. Box 580 City State Zip__ Fort Collins, CO 80522-0580 5. Compliance with Laws/ Civil Rights. Agency, in performance of this Agreement, agrees to comply with all applicable Federal, State and Local laws and ordinances, and other policies, regulations and guidelines established for the City of Fort Collins, including, but not limited to, the following: A. Civil Rights. Agency agrees to comply with Chapter 13, Article II, of the City Code, Title 24, Article 34, Parts 3 through 7, C.R.S., Title VI of the Civil Rights Act of 1964, as amended, Section 504 of the Rehabilitation Act of 1973, and the Americans With Disabilities Act of 1990. B. Employment Nondiscrimination. Agency will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, sexual orientation, disability or other handicap, age, marital status, or status with regard to public assistance in accordance with federal, state and local laws. Agency will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. C. Religious Practice. Agency will serve all eligible beneficiaries without regard to religion and may not restrict services to people of a particular religion or by reason of their participation (or lack thereof) in religious activities. 6. Proof of Lawful Presence Agency acknowledges that the City’s funds are a “public benefit” within the meaning of C.R.S. § 24-76.5-102. As such, Agency shall ensure compliance with C.R.S. § 24-76.5-103 by performing the required verifications. Specifically, when required United Way shall ensure that: Draft 6-5-13 4 a. if the public benefit provided by the funds flows directly to a natural person (i.e., not a corporation, partnership, or other legally-created entity) 18 years of age or older, he/she must do the following: (i) complete the affidavit attached to this Agreement as Exhibit “A”. (ii) attach a photocopy of the front and back of one of the following forms of identification: a valid Colorado driver’s license or Colorado identification card; a United States military card or military dependent’s identification card; a United States Coast Guard Merchant Mariner identification card; or a Native American tribal document. b. If an individual applying for the benefits identified herein executes the affidavit stating that he/she is an alien lawfully present in the United States, Agency shall verify his/her lawful presence through the federal systematic alien verification or entitlement program, known as the “SAVE Program,” operated by the U.S. Department of Homeland Security or a successor program designated by said department. In the event Agency determines through such verification process that the individual is not an alien lawfully present in the United States, Agency shall not provide benefits to such individual with the City’s Affordable Housing Funds. The City acknowledges that the Scope of Services provided by Agency herein may fall within several exceptions to the verification requirements of C.R.S. § 24-76.5-103 for non-profits. For example, certain programs, services, or assistance such as, but not limited to, soup kitchens, crisis counseling and intervention, short-term shelter or prenatal care are not subject to the verification requirements of C.R.S. § 24-76.5-103. 7. Prohibition Against Employing Illegal Aliens In compliance with C.R.S. § 8-17.5-101 Agency represents and agrees that: (a) As of the date of this Agreement, Agency does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and Agency will participate in the electronic employment verification program created in Public Law 104- 208, as amended, and expanded in Public Law 108-156, as amended, and jointly administered by the United States Department of Homeland Security and the social security administration, or its successor program (the “E-verify Program”) in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under this Agreement. (b) Agency shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that fails to certify to Agency that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. (c) Agency has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this Agreement through either the E-verify Program or the employment verification program established by the state of Colorado pursuant to Section 8-17.5-102(5)(c), C.R.S (the “department program”). Draft 6-5-13 5 (d) Agency is prohibited from using either the e-verify program or the department program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. (e) If Agency obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Agency shall: (i) Notify such subcontractor and the City within three days that Agency has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and (ii) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Agency shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. (f) Agency shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. (g) If Agency violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Agency shall be liable for actual and consequential damages to the City arising out of Agency’s violation of Subsection 8-17.5-102, C.R.S. (h) The City will notify the Office of the Secretary of State if Agency violates this provision of this Agreement and the City terminates the Agreement for such breach. 8. Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. Agency shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation insurance as Agency is an independent contractor. 9. Liability. As to the City, Agency agrees to assume the risk of all personal injuries, including death resulting therefrom, to persons, and damage to and destruction of property, including loss of use therefrom, caused by or sustained, in whole or in part, in connection with or arising out of the performance or nonperformance of this Agreement by Agency or by the conditions created thereby. Agency further agrees to indemnify and save harmless the City, its officers, agents and employees, from and against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising from such injuries to persons or Draft 6-5-13 6 damages to property or based upon or arising out of the performance or nonperformance of this Agreement or out of any violation by Agency of any statute, ordinance, rule or regulation. 10. Insurance and Bonding. Agency shall carry sufficient insurance coverage to protect Murphy Center assets from loss due to theft, fraud and/or undue physical damage, and will protect the City’s investment by providing Property Insurance, Workers Compensation and Employer’s Liability Insurance, if applicable, Commercial General Liability Insurance and All Risk Property Damage Insurance. 11. Grantor Recognition. The Agency shall ensure recognition of the role of the City in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, Agency will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. Such labeling and/or reference shall generally state the following: "This project is partially supported by funding from the City of Fort Collins." 12. Documentation and Record-keeping. A. Records to be Maintained. Agency shall maintain all records that are pertinent to the activities to be funded under this Agreement, and shall use reasonable and appropriate accounting systems in maintaining the records required hereunder. B. Retention. Agency shall retain all records pertinent to expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement. 13. Prohibited Activity. Agency is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, lobbying, political patronage or nepotism activities. Funds provided under this Agreement must not be used for religious activities, to promote religious interests, or for the benefit of a religious organization. Agency cannot require a beneficiary to participate in inherently religious activities; however, a faith-based organization may retain its independence to carry out its mission, including allowing a Board of Directors to be selected based on religious practice. 14. Conflict of Interest. Draft 6-5-13 7 Agency covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. Agency further covenants that in the performance of this Agreement, no person having such a financial interest shall be employed or retained by Agency hereunder. 15. Suspension or Termination and Default. A. Agency may terminate this Agreement at any time by giving written notice to the City of such termination and specifying the effective date thereof at least thirty (30) days before the effective date of such termination. If Agency terminates this Agreement prior to completion of Scope of Services, the City shall have no obligation to pay the funds specified in paragraph 3. B. The City may also suspend or terminate this Agreement, in whole or in part, if Agency materially fails to comply with any term of this Agreement, and neither party will have any further obligation hereunder. C. This Agreement, and the City's obligations under it, will automatically terminate in the event of suspension or non-appropriation of funds by the City. 16. Amendments. The parties may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of both organizations. Such amendments shall not invalidate this Agreement, nor relieve or release the City or Agency from its obligations under this Agreement, except as expressly provided therein. 17. Assignability. This contract has been awarded based on the specific qualifications and representations of Agency. Therefore, Agency shall not assign or transfer: (a) any interest in this Agreement; or (b) any of its rights or obligations under this Agreement, without the prior written consent of the City; provided, however, that claims for money due or to become due to Agency from the City under this Agreement may be assigned to a bank, trust company or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. For assignments and transfers requiring City consent, Agency must give the City no less than thirty (30) days advance notice of the proposed assignment or transfer. 18. Entire Agreement/Governing Law. This Agreement including all attachments, constitutes the entire agreement between the parties hereto and no statement, promise, conditions, understanding, inducement or representation, oral or written, express or implied, which is not contained herein shall be binding or valid. This contract shall be binding upon the parties, their Draft 6-5-13 8 agents, representatives, successors and assigns. This Agreement shall be governed under the laws of the State of Colorado. 19. Authority to Sign The persons executing this Agreement on behalf of Agency represent that one or both of them has the authority to execute this Agreement and to bind Agency to its terms. [The remainder of this page left intentionally blank] Draft 6-5-13 9 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date of the most recent signatory. THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation By:_______________________ Date _________ Darin A. Atteberry, City Manager ATTEST: ____________________________ City Clerk APPROVED AS TO FORM: ____________________________ Sr. Assistant City Attorney AGENCY: __________________________________ A Colorado nonprofit corporation By:________________________ Date _________ Title: Board president By: _______________________ Date _________ Executive Director Fed. I.D. Number: _____________________ ATTEST: ____________________________ Board Secretary (Corporate Seal) Draft 6-5-13 10 EXHIBIT A AFFIDAVIT Pursuant to section 24-76.5-103(4)(b), C.R.S. I swear or affirm under penalty of perjury under the laws of the State of Colorado that I am (check one of the following): ________ A United States citizen; or ________ A legal Permanent Resident of the United States; or ________ Otherwise lawfully present in the United States pursuant to federal law. I understand that this sworn statement is required by law because I have applied for a public benefit as defined by law. I understand that state law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. I further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute §18-8-503 and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. If I checked the second or third option above, I understand that my lawful presence in the United States will be verified through the Federal Systematic Alien Verification of Entitlement Program (SAVE Program). ________________________________ Printed Name ________________________________ __________________ Signature Date ORDINANCE NO. 082, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND TO BE USED FOR OPERATION OF THE SISTER MARY ALICE MURPHY CENTER OF HOPE WHEREAS, the Sister Mary Alice Murphy Center of Hope (the “Murphy Center”) is owned by the United Way of Larimer County (the “United Way”), operated by Touchstone Health Partners (“Touchstone”), and is located at 242 Conifer Street in Fort Collins; and WHEREAS, the Murphy Center plays a critical role in the delivery of services to the homeless and near-homeless populations in the Fort Collins area, providing employment resources, housing assistance, financial counseling, transportation assistance, mental health and substance abuse counseling, help with obtaining food stamps and Medicaid, and everyday services, such as a place to shower and wash laundry, use a computer and check voicemail; and WHEREAS, helping people avoid or get out of homelessness promotes health, safety and the general welfare, not just for those receiving services, but also for the community in general by reducing burdens on emergency medical services and law enforcement resources; and WHEREAS, Serve 6.8, a nonprofit corporation affiliated with Timberline Church, has expressed interest in assuming ownership and operation of the Murphy Center, and United Way and Serve 6.8 hope to complete the transition of ownership and operation in mid-2013; and WHEREAS, United Way is seeking partners to help fund operation of the Murphy Center from January 1 to June 30, 2013, and has proposed that the following parties provide funding in the specified amounts: United Way $58,000 Bohemian Foundation $45,000 City $45,000 Serve 6.8 $35,000 and; WHEREAS, pursuant to Resolution 2013-053, the City will provide operational funding for the Murphy Center; and WHEREAS, homeless assistance programs support several City Council-adopted plans, including the Consolidated Housing and Community Development Plan FY2010-2014, which contains objectives and strategies for reducing and preventing homelessness, and City Plan, which targets the housing needs of special populations in the community, including the homeless; and [Alternative A] WHEREAS, because of the important public purpose served by the Murphy Center, the City will pay $45,000 of funding to United Way upon receipt of an expense report from United Way demonstrating expenditures for personnel and non-personnel costs incurred in operating the Murphy Center during the six months between January 1 and June 30, 2013; and [Alternative B] WHEREAS, because of the important public purpose served by the Murphy Center, the City will pay $45,000 of funding to Touchstone upon receipt of an expense report from Touchstone demonstrating expenditures for personnel and non-personnel costs incurred in operating the Murphy Center during the six months between January 1 and June 30, 2013; and [Alternative C] WHEREAS, because of the important public purpose served by the Murphy Center, the City will pay $45,000 of funding to Serve 6.8 upon receipt of a statement of projected expenses from Serve 6.8, projecting expenditures for personnel and non-personnel costs incurred in operating the Murphy Center for six months beginning after Serve 6.8 takes ownership of the Murphy Center; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from reserves in the General Fund the sum of FORTY FIVE THOUSAND DOLLARS ($45,000) to fund operations of the Sister Mary Alice Murphy Center of Hope. Introduced, considered favorably on first reading, and ordered published this 11th day of June, A.D. 2013, and to be presented for final passage on the 2nd day of July, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk -2- Passed and adopted on final reading on the 2nd day of July, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3-