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HomeMy WebLinkAboutMINUTES-06/11/2013-AdjournedJune 11, 2013 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, June 11, 2013, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell, and Weitkunat. Staff Members Present: Atteberry, Nelson, Roy. , Items Relating to the Operation of the Sister Mary Alice Murphy Center of Hope, Adopted on First Reading The following is the staff memorandum for this item. "EXECUTIVE SUMMARY A. Resolution 2013-053 Authorizing the City Manager to Execute an Agreement with United Way of Larimer Countyfor 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 ofthe 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 ofthe 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 156 June 11. 2013 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 ofLarimer County (UYi) and operated by Touchstone Health Partners ofFort 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 I" year. • Now have 23 different agencies that provide services out of the Center. • Total number ofshowers 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,5 7% increasefrom 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, private resources, and the cities offort 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 laid (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 forproperry use tied to federal funding are clear. One of these parameters includes federal limitations on inherently religious activities such as worship, religions instruction, orproselytization. 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 ofoperation, 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 157 June 11, 2013 Way had to search for anew 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 6.8s 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 entityfrom the Timberline Church. Serve 6.8 submitted a letter ofintent 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 ofFort 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. 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) 158 June 11, 2013 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 558, 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 ofLoveland 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 offunding but foundations have become increasingly interested in having the ,fiords 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 Cityfunds. 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 UWfor past expenses. Since this option would no longer be framed as a sort of "emergency ", it also raises a question of why Serve 159 June 11, 2013 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 Cityfunding. According to agency representatives, the "benefit " to Touchstone or Serve 6.8 in receiving the City funds, for instance, to leverage otherfunds, is not significant, because thefunds 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. 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 ofthe expense report. 2. Thefunds will be (or must have been) usedfor personnel and non personnel costs associated with the operation of the Murphy Center. 3. The agency shall submit a detailed expense report to the Cityfor 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 entryfor 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 comefrom the City's General Fund Reserves. Providingfinancial assistance to the Murphy Center is along term investment. Helpingpeople out ofhomelessness 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 ofservices, 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 (S2, 000) using contingency funding. The United Way Temporary Winter Homeless Shelter ($3, 000 — operating costs). 160 June 11, 2013 • The Crossroads Safehouse, in 2010 - 53000 —appraisal report; and, in 2010 - $350, 000 for renovation of Crossroads' new facility, front Police Capital Improvement Expansion fees. • The Bender Mobile Home Park relocation assistance — 2012 (550, 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, Habitatfor Humanity, Crossroads Safehouse, and the Food Bank ofLarimer County. Staf .f 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 ofsix months ofoperations of the Center. 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.." Bruce Hendee, Chief Sustainability Officer, stated the request before Council is for a one-time appropriation of General Fund reserves in the amount of $45,000. He discussed the community services provided by the Murphy Center and the reason for the funding request. The funds would be used to backfill funding from United Way reserves. Gordan Thibedeau, United Way of Larimer County CEO, discussed the history of the Murphy Center in terms of funding and noted there was a plan to transfer the ownership of the Center after its first year of operation. He stated though this may appear as a request for retroactive funding, the agreement was informally made six months ago. Mike Pruznick, 636 Castle Ridge Court, stated he would support any of the available options, but suggested a modified option C. He asked if United Way takes a fee if the money is given through it in Option A and asked why the full $183,000 is not being considered for funding. Mark Orfan, Serve 6.8 Development Director, expressed appreciation for the opportunity to partner with the United Way and stated it is their intent to continue to building on the existing model: Monica Elliott, 815 Roma Valley Drive, stated she volunteers at the Murphy Center and supported funding for the Center. Emily Peterson, Touchstone Health Partners, discussed the mental health services provided by Touchstone and expressed support for Option B. 161 June 11, 2013 Kristen Eiswerth, Fort Collins resident, stated she volunteers at the Murphy Center and supported providing funding in order to maintain necessary services. David Rout, Homeless Gear Program Director, discussed the need for support for the community's homeless population and supported funding for the Murphy Center. Sarah Pruznick, 636 Castle Ridget Court, stated she volunteers at the Murphy Center and supported funding for the Center. Bonnie Inscho, 2815 William Neal Parkway, stated she was a mental health specialist at the Murphy Center and discussed the importance of the Center to the community. She supported funding. Richard Thompson, 636 Cheyenne Drive, Fort Collins Area Interfaith Council President, discussed the value of the Murphy Center to the community and supported funding for the Center. Mayor Pro Tem Horak asked Mr. Thibedeau for additional information regarding the City's role in the agreement mentioned. Mr. Thibedeau replied there were two options discussed approximately six months ago: to either decrease the hours of the Center or to close it. He discussed the involvement of Serve 6.8, which was not possible for a few months following its initial interest. He stated keeping the Center open for that time period would cost about $180,000 and an informal discussion was held regarding possible sources for that funding. He stated he recommended, based on that conversation, continuing full-time operation until such time as Serve 6.8 decided on taking over the Center. Mayor Weitkunat asked why the request for funding did not occur several months ago. Mr. Thibedeau replied there was a need to first ensure that Serve 6.8 would be moving forward and scheduling issues also came into play. Councilmember Overbeck asked about the impact to the Murphy Center should this funding not be approved. Mr. Thibedeau replied the Center would not go away and noted the United Way has completed its contract payments with Touchstone and is in the process of handing over the operation of the Murphy Center to Serve 6.8. Councilmember Campana asked about the informal agreement, mentioning a commitment by the City. Mr. Thibedeau replied the members of the Homeward 2020 Board had conversations with City representatives and Bohemian Foundation representatives. He reiterated there was no formal commitment or agreement. Councilmember Campana asked who from the City made the informal commitment. Mr. Thibedeau again stated there was no formal commitment, though he felt comfortable enough the funding would eventually occur. City Manager Atteberry stated this funding always hinged on Council approval, whether recommended by staff or not. Joe Frank, Social Sustainability Officer, stated the facility is important for the community and noted the importance of the City continuing its support of the Center. 162 June 11, 2013 Councilmember Cunniff asked if this program would be part of the competitive process for CDBG funds in the future. Frank replied in the affirmative. Mayor Pro Tern Horak asked why the funding was not brought forward as a budget amendment in November or December. Frank replied things were not far enough along at that time to bring forward a request for funding. Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Option B of Resolution 2013-053. Councilmember Cunniff supported the Murphy Center but opposed the perceived lack of fairness of this funding request and suggested Serve 6.8 go through a future competitive process for CDBG funding. Councilmember Overbeck supported the Murphy Center, but opposed this request for funding. Councilmember Troxell stated he would support the motion and stated this is an important expenditure for an important aspect of the community. Councilmember Campana stated he would support the motion and expressed support for the Murphy Center. Mayor Pro Tem Horak agreed the process for this funding request was imperfect but stated he would support the motion, given there was a potential commitment from staff. Councilmember Poppaw thanked the individuals who spoke regarding this item but questioned the fairness of providing a backfill on reserves for an organization. She expressed support for the Center, the United Way, Touchstone, and Serve 6.8 and encouraged future participation in the competitive process for CDBG funds. Mayor Weitkunat reiterated support for the Murphy Center and opposed this general appropriation process; however, she stated she would support the motion as the City made a commitment. The vote on the motion was as follows: Yeas: Weitkunat, Campana, Troxell and Horak. Nays: Cunniff, Overbeck and Poppaw. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Mayor Pro Tern Horak, to adopt Ordinance No. 082, 2013, on First Reading. The vote on the motion was as follows: Yeas: Weitkunat, Campana, Troxell, Overbeck and Horak. Nays: Cunniff and Poppaw. THE MOTION CARRIED. 163 June 11, 2013 Executive Session Authorized Mike Pruznick, 636 Castle Ridge Court, asked if citizens are allowed to provide input regarding the mid-term reviews of the three direct Council employees. The Council accepted a document from Mr. Pruznick for consideration. Mayor Pro Tern Horak made a motion, seconded by Councilmember Poppaw, to go into Executive Session as permitted under Section 2-31(a)(1) of the City Code, for the purpose of conducting the mid -year performance reviews of the City Manager, City Attorney, and Municipal Judge. Yeas: Weitkunat, Campana, Poppaw, Horak, Troxell, Overbeck and Cunniff. Nays: none. THE MOTION CARRIED. (Secretary's Note: The Council returned from Executive Session at 10:08 p.m.) Adjournment The meeting adjourned at 10:08 p.m. Mayor o�I.coL4iNs ATTEST: J: � •BOO City Clerk _p�P �Z GZI